Auditors approve EU accounts but slam spending
11 Nov 2008, AccountancyAge.com, AccountancyAge
http://www.accountancyage.com/aa/news/1789043/auditors-approve-eu-accounts-slam-spending
The European Court of Auditors approved the EU executive body’s 2007 cash flows for the first time in 14 years, describing accounts a 'fair presentation' of the financial position.
However, the court criticised as 'unacceptable' spending errors in all but two of the seven policy areas covered under the €114bn (£93bn) budget, the Financial Times reports.
One of the biggest problems was the difficulty assessing whether final beneficiaries such as farmers and promoters operating EU-funded projects were eligible for the subsidies and overheads awarded to them.
Auditors were particularly concerned about the €42bn cohesion budget – covering regional policy, social affairs and rural development – which exposed errors in at least 11% of its spending when the acceptable margin for mistakes is below 2%.
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Visitor comments
Accountability gap
If 'spending errors' are at the level stated by the Court of Auditors, how can they possibly approve any aspect of the EU's accounts ?
If this was a local authority or NHS Trust, the Finance Director and Chief Executive would be sacked and a team of Governement appointed 'experts' sent in to resolve the 'shocking situation'. If it was a 'PLC', the shareholders would demand the removal of the Board, and a major investigation into the appalling mismanagement of the company. In either case, the failure to follow normal accounting practices would be considered criminal.
Why is the EU different ?
Posted by: John M Brown , 11 Nov 2008 | 00:00