EU accounting practices sound

Accounting records and management systems put in place by the European Union
are generally sound and reliable the National Audit Office has highlighted in
its report entitled Financial Management in the European Union.

The audit watchdog highlighted findings by the ECA, that EU accounts ‘in
general…faithfully reflected revenue and expenditure for the year and the
financial position at the year end’.

It also said that transactions undertaken by the EU were whole, legal and
regular ‘with respect to revenue, commitments, administrative expenditure,
expenditure on the pre-accession strategy, and areas of expenditure under the
Common Agricultural Policy covered by the Integrated Administration and Control

The new accrual method for producing accounts, introduced in January 2005 was
also highlighed. THe NAO said the EU had made ‘considerable progress towards
introducing the system, but was concerned over whether the opening balances for
2005 would be established in time to produce a draft account’

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