European Court of Auditors: Ensuring EU Financial Lawfulness

1. European Court of Auditors

2. The European Court of Auditors Institution that audits European Union (EU) revenue and expenditure to ensure lawfulness and sound financial management

3. The Court of Auditors • The European Court of Auditors is an independent institution whose main role is to check that the funds available to theEUare 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

4. STRUCTURE OF THE ECA • The 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

5. Chambers • The ECA is organised into five chambers (audit groups), 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.

6. Audit groups • AUDIT GROUP I Preservation and management of natural resources • AUDIT GROUP II Structural policies, transport, research and energy • AUDIT GROUP III External actions • AUDIT GROUP IV Revenue, banking activities, administrative expenditure,Community institutions and bodies and internal policies

7. The President • The 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 implementedandthat the institution and its activities are soundly managed

8. 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 • It prepares general annual reports and special reports on certain bodies and issues

9. 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.

10. 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

11. HISTORY The 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.

12. 25th anniversary of the ECA (15 members/ states) 30th anniversary of ECA ( 20 members/ states)

13. Arguments • For • The 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 • https://www.youtube.com/watch?v=Cbgp3d0jUoM

14. Arguments • Against • The 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 • https://www.youtube.com/watch?v=7O7ZwC7ksgQ

15. EUROPEAN COURT OF AUDITORS FORMEDin 1975 JURISDICTIONEuropean Union HEADQUARTERS Luxembourg

16. Vocabulary • European Court of Auditors – Europski revizorski sud • lawfulness - zakonitost • sound financial management – zdravo financijsko upravljanje • renewable term of six years – obnovljivi šestogodišnji mandat • audit report – revizorsko izvješće • audit groups – revizorske skupine • preservation of natural resources – očuvanje prirodnih resursa • to handle EU income – upravljati prihodima EU

17. Read the text and answer the following questions: • What is the main task of the Court of Auditors? • When was the Court established? • What is the composition of the Court? • Who appoints the members and for what term? • Do all members sit together when adopting reports or opinions? • What are the criteria for the choice of the members of the Court? • Who elects the President of the Court and for what term? • What is the Court's main role? • Does the Court have legal powers of its own? • What happens if auditors discover fraud or irregularities?

18. Translate the following sentences: • The European Court of Auditors is an independent institution whose main role is to check that the funds available to theEUare used legally, efficiently and for the intended purposes • The auditors are divided into ‘audit groups’ which prepare draft reports on which the Court takes decisions.

19. 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.

20. Did you remember… • The ECA was established in _______ • Its headquarters are in ______________ • It has _______ Members • If auditors discovers fraud or irregularities, they inform ___________ • The Court has approximately ______ staff

21. Fill in the gaps: • majority, national, report, management, penalties, reliability, power, revenue • The European Court of Auditors, based in Luxembourg, is composed of one ________________ from each Member State. Its members are appointed for six years (renewable) by a qualified ______________ of the Council of the European Union after consulting the European Parliament. The Court of Auditors acts in complete independence. • The Court checks the ____________ and expenditure of the European Union for legality and regularity and ensures that its financial ______________ is sound. It also supplies the European Parliament and the Council with a statement of assurance as to the _____________ of the accounts and the legality and regularity of the underlying transactions. It draws up an annual _______________ published in the Official Journal at the end of each budgetary year. • Under the Treaty of Amsterdam, the Court of Auditors also has the ___________ to report any irregularities to the European Parliament and the Council, and its audit responsibilities have been extended to Community funds managed by outside bodies and by the European Investment Bank. However, it does not have the power to impose _______________.

23. More info • http://europa.eu/about-eu/institutions-bodies/court-auditors/index_en.htm • Check traineeship applications

24. Thankyou for yourattention!