The role of audit institutions

• European Court of Auditors
• Supreme audit institutions in the EU
• The Netherlands Court of Audit

The European Court of Auditors acts as the external auditor of the EU budget and also examines the role played by the European Commission in the budget. The governments of the EU member states are increasingly accounting for the use of EU funds in their member states. National audit institutions can investigate this expenditure and have been carrying out more EU audits in recent years.

European Court of Auditors

The European Court of Auditors is one of the seven bodies that together form the institutional structure of the European Union. As the external auditor of the EU, it audits the role of the European Commission, which bears final responsibility for the execution of the EU budget (the EU's revenue and expenditure).

Since 1994, the European Court of Auditors has issued a Statement of Assurance in which it expresses an opinion on the legality and regularity of the EU's expenditure and revenue. This statement is also known by its French name as the Declaration d’Assurance (DAS). To date, the European Court of Auditors has been unable to issue a positive statement. The European Court of Auditors also publishes special reports on the implementation of specific schemes, for example on the scheme to encourage the establishment of vocational training courses for women. This scheme is co-financed from the European Social Fund.

Supreme audit institutions in the EU

Supreme audit institutions (SAIs) have been carrying out more audits in recent years of the management and control of EU funds and the implementation of EU policy in their home countries. Some national governments are also beginning to account for the use of EU funds in the member states and for the remittance of funds to the EU. Supreme audit institutions can audit these funds on behalf of their national parliaments and some of them are already doing so. The audit of public funds is at the heart of all supreme audit institutions' regularity and efficiency audits. The SAIs' powers differ. Most SAIs investigate the use of public funds but some also audit central government. Some SAIs also audit local government.

The Netherlands Court of Audit

In its EU audits, the Netherlands Court of Audit looks principally at financial management in the EU and the results of EU policy in the Netherlands. It considers EU funds and policy to be national funds and policy and takes the same approach to EU audits as it does to its regular audits. In 1970s/80s the Court of Audit first audited agricultural aid. We have since investigated other EU funds flows. The Court of Audit has had the power to audit all recipients of EU funds since 2001 (section 92 of the Government Accounts Act).