THE EUROPEAN COURT OF AUDITORS

Court of Auditors checks that all the Union's revenue has been received and all its expenditure incurred in a lawful and regular manner and that financial management of the EU budget has been sound. It was set up in 1975.

The Court has one member from each EU country, appointed by the Council ruling unanimously after consultation with the European Parliament for a renewable term of six years. The members elect one of their number as President for a renewable term of three years.

The Court investigates the paperwork of any person or organisation handling EU income or expenditure. It frequently carries out on-the-spot checks. Its findings are written up in reports which bring any problems to the attention of the Commission and EU member state governments. 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.

One of its key functions is to help the European Parliament and the Council by presenting them every year with an audit report on the previous financial year. The Parliament examines the Court's report in detail before deciding whether or not to approve the Commission's handling of the budget. If satisfied, the Court of Auditors also sends the Council and Parliament a statement of assurance that European taxpayers' money has been properly used.

Finally, the Court of Auditors gives its opinion on proposals for EU financial legislation and for EU action to fight fraud.

The seat of the Court of Auditors is in Luxembourg.

official website of the Court of Auditors