Chapter 32: Financial control

The acquis under this chapter relates to the adoption internationally recognised frameworks and standards, as well as EU good practice, on public internal financial control (PIFC), based upon the principle of decentralised managerial accountability. PIFC should apply across the entire public sector, and include the internal control of financial management of both national and EU funds. In particular, the acquis requires the existence of effective and transparent management systems, including accountability arrangements for the achievement of objectives; a functionally independent internal audit; and relevant organisational structures, including central co-ordination of PIFC development across the public sector. This chapter also requires an institutionally, operationally and financially independent external audit institution that implements its audit mandate in line with the standards of the International Organisation of Supreme Audit Institutions (INTOSAI) and reports to the parliament on the use of public sector resources. In addition, this chapter also covers the protection of the EU’s financial interests against fraud in the management of EU funds and the protection of the euro against counterfeiting.