The European Court of Auditors

The Court of Auditors was set up in 1975. It is based in Luxembourg. The Court’s job is to check that EU funds, which come from the taxpayers, are properly collected and that they are spent legally, economically and for the intended purpose. Its aim is to ensure that the taxpayers get maximum value for their money, and it has the right to audit any person or organisation handling EU funds.

The Court has one member from each EU country, appointed by the Council for a renewable term of six years. The members elect one of their number as President for a renewable term of three years. Vítor Manuel da Silva Caldeira, from Portugal, was elected President in January 2008.

What does the Court do?

Vítor Manuel da Silva Caldeira, from Portugal, was elected President in January 2008.

The Court’s main role is to check that the EU budget is correctly implemented – in other words, that EU income and expenditure is legal and above board and to ensure sound financial management. So its work helps guarantee that the EU system operates efficiently and openly.

To carry out its tasks, 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.

To do its job effectively, the Court of Auditors must remain completely independent of the other institutions but at the same time stay in constant touch with them.

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. 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.

How is the Court's work organised?

The European Court of Auditors, Luxembourg

The Court of Auditors has approximately 800 staff, including translators and administrators as well as auditors. The auditors are divided into ‘audit groups’. They prepare draft reports on which the Court takes decisions.

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. Indeed, although the Court's work largely concerns money for which the Commission is responsible, in practice 80% of this income and expenditure is managed by the national authorities.

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.