European Union accounts cleared for first time
For the first time ever, the EU's accounting books have been given a clean bill of health by the European Court of Auditors (ECA) although problems in certain high payment areas of the EU budget such as the structural funds are still considered to be...
For the first time ever, the EU's accounting books have been given a clean bill of health by the European Court of Auditors (ECA) although problems in certain high payment areas of the EU budget such as the structural funds are still considered to be serious.
Publishing its annual report for 2007, the Court found that the majority of EU payments it checked were regular, though errors were still too frequent in some areas, particularly in spending on EU regions and to boost employment, where grants are managed by national authorities.
Commenting on these results, Malta's member at the ECA, former Economy Minister Josef Bonnici said the fact that the ECA has been able to issue a "clean" opinion on the EU accounts for the first time is very positive.
"Not only was the ECA able to conclude that the consolidated accounts of the European Communities (compiled by the European Commission) present a 'true and fair view' of revenue and expenditure in 2007 and of the resultant balance sheet but all reservations / qualifications on the reliability of the accounts, which the ECA had made in previous years, have been dropped," Prof. Bonnici said.
On the other hand, Prof. Bonnici said that the results concerning the "legality and regularity" of the underlying financial transactions in 2007 remain broadly similar to those in the preceding year with problems observed in a number of areas, most notably in Structural Funds expenditure.
"Improvements have been noted in supervisory and control systems but it takes some time for their impact to become discernible in practice.
While one has to acknowledge the inherent complexity in managing EU funds, one must still conclude that more can and needs to be done," Prof. Bonnici said.
In their report, the auditors estimated that at least 11 per cent of the €42 billion spent on cohesion (structural funds) should not have been paid out by member states because the EU's rules were not complied with. That compares with an estimate of 12 per cent made in last year's report, suggesting that there has not been a significant improvement.
The auditors said that the errors were often the inclusion of ineligible costs, an exaggeration of what money had been spent, for which reimbursement was sought, and failures to respect the procurement rules.
The auditors criticised both the controls imposed by member states on spending and the Commission's supervision of the member states.
Publishing its annual report for 2007, the Court found that the majority of EU payments it checked were regular, though errors were still too frequent in some areas, particularly in spending on EU regions and to boost employment, where grants are managed by national authorities.
Commenting on these results, Malta's member at the ECA, former Economy Minister Josef Bonnici said the fact that the ECA has been able to issue a "clean" opinion on the EU accounts for the first time is very positive.
"Not only was the ECA able to conclude that the consolidated accounts of the European Communities (compiled by the European Commission) present a 'true and fair view' of revenue and expenditure in 2007 and of the resultant balance sheet but all reservations / qualifications on the reliability of the accounts, which the ECA had made in previous years, have been dropped," Prof. Bonnici said.
On the other hand, Prof. Bonnici said that the results concerning the "legality and regularity" of the underlying financial transactions in 2007 remain broadly similar to those in the preceding year with problems observed in a number of areas, most notably in Structural Funds expenditure.
"Improvements have been noted in supervisory and control systems but it takes some time for their impact to become discernible in practice.
While one has to acknowledge the inherent complexity in managing EU funds, one must still conclude that more can and needs to be done," Prof. Bonnici said.
In their report, the auditors estimated that at least 11 per cent of the €42 billion spent on cohesion (structural funds) should not have been paid out by member states because the EU's rules were not complied with. That compares with an estimate of 12 per cent made in last year's report, suggesting that there has not been a significant improvement.
The auditors said that the errors were often the inclusion of ineligible costs, an exaggeration of what money had been spent, for which reimbursement was sought, and failures to respect the procurement rules.
The auditors criticised both the controls imposed by member states on spending and the Commission's supervision of the member states.