Institution that audits European Union (EU) revenue and expenditure to ensure

lawfulness and sound financial management

The Court of AuditorsThe European Court of Auditors is an independent

institution whose main role is to check that the funds available to the EU are used legally, efficiently and for the intended purposes

The Court audits the accounts of the EU's income and expenditure, which together form the EU budget

This role is especially important as part of the EU's income is derived from contributions from the member states and so the Court ensures that the EU's citizens are getting maximum value for their money

STRUCTURE OF THE ECAThe Court of Auditors operates as a collegiate

body of 28 Members, one from each Member State. All audit reports and opinions are adopted by the college

It takes decisions concerning the Court's organization and administration

ChambersThe ECA is organised into five chambers, to

which Members and audit staff are assigned. There are four chambers with responsibility for the audit of the different areas of EU expenditure and for revenue, together with a fifth chamber - the CEAD - responsible for coordination, evaluation, assurance and development horizontally across all areas.

Audit groups

o AUDIT GROUP IPreservation and management of natural

resources o AUDIT GROUP IIStructural policies, transport, research and energy o AUDIT GROUP IIIExternal actions o AUDIT GROUP IVRevenue, banking activities, administrative

expenditure, Community institutions and bodies and internal policies

The PresidentThe European Court of Auditors is headed by a

President

President is elected for a renewable three year term by the Members from amongst their number

President’s role is that of primus inter pares - first amongst equals. He or she chairs the Court meetings, ensures that Court decisions are implemented and that the institution and its activities are soundly managed

• The President represents the Court in its external relations, in particular with other EU institutions and the supreme audit institutions of the Member and beneficiary States

• On 16 January 2008, the Portuguese Member Mr. Vítor Manuel da Silva Caldeira was elected as the Court’s 10th President

The Secretary-GeneralThe most senior member of staff in the

institutionAppointed by the Court for renewable

period of six yearsResponsible for the administration, for the

management of the Court’s stuff and secretariat

On 10 March 2009 Mr Eduardo Ruíz García had been appointed by the Court as the new Secretary-General

What does the Court do?

The Court’s main role is to check that the EU budget is correctly implemented

The Court investigates the paperwork of any person or organization handling EU income or expenditure

It ensures that the EU income and expenditure is legal and above board and sound financial management

Its work helps guarantee that the EU system operates efficiently and openly

FUNCTIONSProfessional external investigatory audit agencyThe role is to check if the budget of the

European Union has been implemented correctly( it checks the paperwork of all people)

Includes :General annual reportsSpecial and specific reports

on certain bodies and issues The Court’s decision is the basic of Commission

decision

Under the Amsterdam Treaty, the Court of Auditors also has the power to report any irregularities to the European Parliament and the Council. Its audit responsibilities have been extended to European Community funds managed by outside bodies and by the European Investment Bank.

How is the Court's work organised?

The Court of Auditors has approximately 800 staff, including translators and administrators and 250 auditors

The auditors frequently go on tours of inspection to the other EU institutions, the member states and any country that receives aid from the EU

The auditors are divided into ‘audit groups’. They prepare draft reports on which the Court takes decisions

The Court of Auditors has no legal powers of its own. If auditors discover fraud or irregularities, they inform OLAF – the European Anti-Fraud Office

HISTORYThe Court of Auditors was created by the 1975

Budgetary Treaty, but it was formally established on 18 October 1977 (at that time the Court was not a formal institution).

At first, it was an external body designed to audit the finances of the European Communities. Later, when it became an institution, it gained some new powers such as the ability to bring actions before the European Court of Justice( ECJ).

Under the Treaty of Amsterdam, it gained the full power to audit finances of the whole of the EU.

25th anniversary of the ECA

(15 members/ states)

30th anniversary of ECA ( 20 members/ states)

ArgumentsForThe Court of Auditors helps guarantee that

the EU budgetary system works efficiently and openly

The Court contributes to improving financial management of the European Union

The Court of Auditors is regularly acknowledged for its work in exposing fraud in the EU

ArgumentsAgainstThe Court's reports are often criticised as being

extremely difficult to understand, even for those working inside the EU

The Court of Auditors is also seen as being too concerned with confidentiality - its role as the 'financial conscience' of the EU is weakened if the media are unable to use its findings to hold the executive to account

The size of the court has also come under criticism

EUROPEAN COURT OF AUDITORS

FORMED in 1975JURISDICTION European UnionHEADQUARTERS Luxembourg

VocabularyEuropean Court of Auditors – Europski revizorski

(revizijski) sudLawfulness - zakonitostSound financial management – zdravo financijsko

upravljanjeAudit report – revizorsko izvješćeAudit groups – revizorske skupinePreservation of natural resources – očuvanje

prirodnih resursaTo handle EU income – upravljati prihodina EU

Translate the following:The European Court of Auditors is an

independent institution whose main role is to check that the funds available to the EU are used legally, efficiently and for the intended purposes

The auditors are divided into ‘audit groups’. They prepare draft reports on which the Court takes decisions.

Europski revizorski sud je nezavisna institucija čiji je osnovni zadatak provjeravati da se sredstva EU-a troše namjenski na zakonit i ekonomičan način.

Revizori su podijeljeni u revizorske skupine i pripremaju nacrte izvješća o kojima Sud donosi odluke.

Did you remember…The ECA was established in _______Its headquarters are in ______________It has _______ MembersIf auditors discovers fraud or irregularities,

they inform ___________The Court has approximately ______ staff

Videohttp://europa.eu/about-eu/institutions-bodies/

court-auditors/index_en.htm