Financial Management Of The European Union A Progress Report

Each year the NAO reports to Parliament on the financial management of EU funds, based on the audit by the European Court of Auditors. This report examines the findings for the financial year 2002 and reviews key developments and policies to strengthen financial management and control of the EU budget. It also summarises reported rates of fraud and irregularities, and considers the financial control implications of EU enlargement to 25 countries, embracing 450 million people. Findings include that, for the ninth year in succession, the Court qualified its opinion on the reliability of the Community's accounts, noting the persistent weaknesses of the Commission's accounting systems.

This report summarises the findings in the 2004 annual report of the European Court of Auditors and reports on other financial management matters in the EU.

Each year the NAO reports to Parliament on the financial management of EU funds, based on the audit by the European Court of Auditors. This report examines the findings for the financial year 2003 and reviews key developments and policies to strengthen financial management and control of the EU budget. It also summarises reported rates of fraud and irregularities, and considers issues arising on the management of EU funds in the UK. Findings include that, for the 10th year in succession, the Court qualified its opinion in a number of important aspects, including the legality and regularity of transactions for expenditure headings such as the Common Agricultural Policy, structural measures and pre-accession aid.

Financial Management and Control in the European Union

Eleventh report of Session 2010-11 : Documents considered by the Committee on 8 December 2010, including the following recommendations for debate, European Development Fund (EDF) expenditure; Financial management (two documents); Implementing the EU's Int

This report summarises the results of the European Court of Auditors' examination of the European Union's accounts for 2007 and progress on the range of initiatives taken forward by the Commission and Member States. For the first time the Court provided a positive Statement of Assurance, without qualification, on the reliability of the Commission's accounts, in effect confirming that they give a true and fair view. But for the fourteenth successive year the Court did not provide a positive Statement of Assurance on whether the underlying transactions conformed to applicable laws and regulations. Cohesion Policy funds, which are designed to reduce disparities in the level of development between regions and Member States, for example by supporting major infrastructure projects, remain the most challenging component. Based on its audit work, the Court estimates that, for expenditure on Cohesion projects, at least 11 per cent should not have been reimbursed by the Commission in 2007. This conclusion reflects weakness in controls at Member State level, but also the difficulty of implementing complex programmes. In the Cohesion Policy area the Commission has increased the rate at which it recovers incorrect payments from Member States, from 287 million euros in 2007 to 843 million in September 2008, and it predicts that further corrections will be finalised in Spring 2009. Financial corrections in future years could have an impact on the United Kingdom.

Following on from the NAO report (HCP 289, session 2004-05; ISBN 0102932344) published in March 2005, the Committee's report examines the financial management of EU funds during 2003, based on the audit by the European Court of Auditors. For the 10th year in succession, the Court qualified its opinion in a number of important aspects, including the legality and regularity of transactions for expenditure headings such as the Common Agricultural Policy, structural measures and pre-accession aid. The Committee's report considers a range of issues including the Statement of Assurance, key developments and policies to strengthen financial management and control of the EU budget, rates of fraud and irregularities, and the importance of the UK's forthcoming presidency of the EU to press for improvements in financial management.