The European Court of Auditors (ECA)

SUMMARY OF:

Article 287 of the Treaty on the Functioning of the European Union (TFEU)

Rules of Procedure of the Court of Auditors of the European Union

WHAT ARE THE AIMS OF ARTICLE 287 TFEU AND OF THE RULES OF PROCEDURE?

The European Court of Auditors (ECA) is the EU’s external auditor. As such, the ECA warns of risks, provides assurance, indicates shortcomings and good practice, and offers guidance to policymakers and legislators on how to improve the management of EU policies and programmes. The ECA acts as the independent guardian of EU citizens’ financial interests.

Article 287 of the Treaty on the Functioning of the European Union sets out the role of the Court.

The ECA draws up its own Rules of Procedure which must then be approved by the Council. They govern the internal workings of the ECA. The rules cover aspects such as:

the organisation of the Court (appointments, terms of office, the Court’s duties, election of the President);
operational procedures (the Court and Chambers meetings; decision-making by the Court, Chambers and Committees; audits and preparation of reports, opinions, observations and statements of assurance).

KEY POINTS

Composition and structure

The Court is a collegial body, that is, its Members are jointly responsible for decisions and actions taken. It comprises 27 Members — one from each EU Member State. Members are appointed for 6 years (renewable). To be appointed, Members must belong or have belonged to an external audit body in their own Member State or be especially qualified for this office. ECA Members are subject to a code of conduct governing their independence, impartiality, integrity, commitment, collegiality, confidentiality, responsibility and obligations after leaving office.
Members elect one of their peers as President for 3 years (renewable). His/her duties include:
- calling and chairing Court meetings;
- ensuring the Court’s decisions are implemented;
- ensuring that the Court’s departments, including protocol and visits, communication, legal matters and internal audit, operate properly and that its various activities are well managed;
- appointing an agent to represent the Court in litigation;
- representing the Court in its external relations and in its relations with the other EU institutions.
The Court has a Secretary-General, who is responsible for the day-to-day running of the Court’s Secretariat, and for administration, finance and support, human resources, information technology and translation.
The Court also comprises Chambers and Committees:
- Chambers adopt opinions, special reports and specific annual reports. They also prepare the annual reports on the EU budget, which are then adopted by the Court;
- Committees (e.g. the Administrative Committee and the Audit Committee) deal with administrative matters and decisions on issues related to communication and strategy.

Tasks of the Court

The ECA is the independent external auditor of the European Union. Its reports and opinions are an essential element of the EU accountability chain. They are used to hold to account those responsible for implementing EU policies and programmes: the Commission, other EU institutions and bodies, and administrations in Member States.
The ECA warns of risks, provides assurance, indicates shortcomings and good practice, and offers guidance to policymakers and legislators on how to improve the management of EU policies and programmes so that they can achieve value for money.

Audits

These are:

based on records and, if necessary, performed on the spot in the other EU institutions;
performed on the premises of any organisation which manages revenue or expenditure on behalf of the EU;
performed in the Member States and in countries across the world, including on the premises of any natural or legal person in receipt of payments from the EU budget.

In its role as the EU’s external auditor, the Court cooperates with the national authorities and the EU institutions. It may also request any information required to successfully complete its task from the EU institutions and bodies, organisations in receipt of payments from the European budget or from national audit institutions.

Strategy and work programmes

To remain at the forefront of developments in public-sector auditing, the ECA plans its strategic development and audit priorities in advance. Its core objectives are set out in multi-year strategies.
Each year, the Court adopts a work programme listing its priorities in terms of audit tasks. The programme is published, and presented to the Committee on Budgetary Control of the European Parliament by the Court’s President.

Annual discharge procedure

The Court of Auditors has no judicial powers and therefore no power to impose sanctions. After the close of each financial year, it draws up an annual report to be published in the Official Journal. This report concerns the management of the EU budget and the European Development Funds, by the competent institutions. It is a fundamental part of the European Parliament’s decision-making process regarding the granting of the budget discharge to the Commission.
The Court of Auditors also provides the Council and the Parliament with a statement of assurance concerning the reliability of the accounts and attesting that the budget has been used well, in accordance with the rules and regulations. In addition, the Court may also, at any time, submit observations, particularly in the form of special reports, on specific questions, or review reports, and deliver opinions where the Court is legally required to do so, at the request of one of the other EU institutions or on its own initiative.
The Court decides in formal session, by the majority of its Members, on the adoption of the annual report. Its meetings are not public, unless it decides otherwise. It may also decide, on a case-by-case basis, to adopt decisions by written procedure.
The ECA reports on irregularities in the use of EU funds and refers any cases of suspected fraud detected during its audits to the European Anti-Fraud Office (OLAF) or to the European Public Prosecutor’s Office (EPPO).

FROM WHEN DO THE RULES OF PROCEDURE APPLY?

They have applied since 1 June 2010.

BACKGROUND

The Court of Auditors, based in Luxembourg, was set up in 1977 and has been a fully-fledged EU institution since 1992.

For more information, see:

ECA legal framework (European Court of Auditors)
Decision No 21-2021 laying down the rules for implementing the Rules of Procedure of the Court of Auditors (European Court of Auditors)
EU budget (European Commission).

MAIN DOCUMENTS

Consolidated version of the Treaty on the Functioning of the European Union — Part six — Institutional and financial provisions — Title I — Institutional provisions — Chapter 1 — The institutions — Section 7 — The Court of Auditors — Article 287 (ex Article 248 TEC) (OJ C 202, 7.6.2016, pp. 170-171)

Rules of Procedure of the Court of Auditors of the European Union (OJ L 103, 23.4.2010, pp. 1-6)

See consolidated version.