31. 12. 85 Official Journal of the European Communities No C 361/1 
II 
(Preparatory Acts) 
COURT OF AUDITORS 
OPINION No 5/85 OF THE COURT OF AUDITORS 
on the draft Financial Regulation applicable to the Sixth European Development Fund 
(85/C 361/01) 
THE COURT OF AUDITORS OF THE EUROPEAN 
COMMUNITIES, 
Having regard to the Treaty establishing the European 
Economic Community, 
Having regard to the third ACP-EEC Convention, signed at 
Lome on 8 December 1984, 
Having regard to the internal agreement relating to the 
financing and management of Community aid, signed in 
Brussels on 19 February 1985, and in particular Article 28 
thereof, providing for consultation of the Court of 
Auditors, 
Having regard to the Financial Regulation of 21 December 
1977 applicable to the general budget of the European 
Communities (J), 
Having regard to the Opinion of the Court of Auditors on a 
proposal for a Council Regulation amending the Financial 
Regulation of 21 December 1977 (2), 
Having regard to the proposal for a Council Regulation 
amending the Financial Regulation of 21 December 
1977 (3), 
Having regard to the Council Decision of 2 October 1985 to 
consult the Court of Auditors on the draft Financial 
Regulation applicable to the sixth EDF, 
Whereas operations financed from EDF resources embody 
Community policy in the field of development cooperation in 
the same way as the measures provided for in the general 
budget of the European Communities for the benefit of 
associated and non-associated states; 
Whereas the Community nature of the sixth EDF should be 
expressed in the form of legislation and whereas it is therefore 
H OJ L 356,31. 12. 1977. 
(2) OJ C232, 11. 9. 1981. 
(3) OJ C 97, 9. 4. 1984. desirable that the Financial Regulation of the sixth EDF 
should be based as far as possible on the proposal for a 
Council Regulation amending the Financial Regulation of 
21 December 1977; 
Whereas it is necessary to limit any derogations to those cases 
where the specific nature of the sixth EDF so requires; 
Whereas the extension of the period for presenting the EDF 
accounts proposed by the Commission is hardly justifiable, 
for the following reasons: 
— the requirement of sound financial management implies 
that operations should be recorded as soon as possible in 
the accounts. According to this approach, the accounts 
for a given financial year should be closed, and the 
operations relating to the following financial year should 
be recorded, as soon as possible; 
— unlike the general budget of the Communities, the EDF 
does not cover any operations, the recording of which 
would justify the proposed extension of the period for 
presenting the accounts; 
— the multiannual aspect of the EDF presupposes a 
cumulative system of accounting from one year to the 
next. Any further time allowed for the closure of the 
accounts for one financial year would have repercussions 
on the recording of the operations relating to the 
following financial year and would cause delays in the 
accounting audit of cash transactions; 
Whereas the audit powers of the Court of Auditors with 
regard to operations carried out under the sixth EDF are 
No C 361/2 Official Journal of the European Communities 31. 12. 85 
rooted in the Treaty of 22 July 1975 amending certain 
financial provisions of the Treaties establishing the European 
Communities and of the Treaty establishing a Single Council 
and a Single Commission of the European Communities, and 
in the statements of the Member States attached to the said 
Treaty, and whereas there can be no question of reducing its 
scope by a subsequent legal act; 
Whereas it appears advisable to fill certain gaps in the draft 
Financial Regulation, in particular with regard to the 
awarding of contracts and the presentation of the revenue 
Article 2 
1. The financial contributions of the Member States shall 
be expressed in ECU. 
2. Each Member State shall pay the amount of its 
contribution either: 
(a) in ECU, or 
(b) in its national currency on the basis of the conversion 
rate of the ECU in force on the first working day 
following the first day of the month preceding the 
payment. 
In the event of the adoption of alternative (b), the Member 
States concerned shall guarantee the Commission against any 
losses in the value of their national currencies in relation to 
the ECU in respect of the period between the value date for 
payment of their contributions and the date on which these 
contributions are transferred to the Commission accounts 
provided for at Article 3 (1). A statement of any such losses 
shall be provided by the Commission to the Member States at 
the end of each quarter and the amounts involved be paid to 
the EDF with the following instalment of contributions to the 
EDF. The provisions of Article 1 (5) relating to delayed 
payments shall apply to payments in respect of exchange 
losses. 
3. Financial contributions shall be credited by each 
Member State to the special account in each Member State 
provided for in Article 3 (1). and expenditure account, and to clear up certain ambiguities 
in the text, 
HAS ADOPTED THE FOLLOWING OPINION: 
The Court considers that the amendments shown in the 
right-hand column of the following text should be 
incorporated in the draft Financial Regulation applicable to 
the sixth EDF. 
Article 2 
Article 2, (2) (b): 
Replace 'preceding the payment' by 'preceding the date when 
the payment becomes due'. Introductory Note 
1. The left-hand column of the following text contains only those Articles of the proposed 
Regulation for which the Court has suggested amendments. Where the amendment concerns a 
single paragraph, only that paragraph has been included, unless the whole Article needs to be 
quoted in order to understand the amendment. 
2. Where the amendment proposed by the Court consists of the deletion of an Article, the numbering 
of the following Articles has not been changed. The same applies in cases where the amendment 
requires the insertion of a new Article. 
COMMISSION TEXT AMENDMENTS PROPOSED BY THE COURT 
31. 12. 85 Official Journal of the European Communities No C 361/3 
COMMISSION TEXT AMENDMENTS PROPOSED BY THE COURT 
4. Upon expiry of the Convention and the Decision, that 
part of the contributions which the Member States remain 
obliged to make shall be called up by the Commission, as 
required, on the conditions laid down in this Financial 
Regulation. Insert a new paragraph 5 (J) under Article 2: 
'5. The Commission shall record the amounts credited to 
the account referred to in paragraph 3 in national currency 
on the basis of the exchange rate for the ECU applied under 
paragraph 2 (b)\ 
Article 6 Article 6 
1. Financial operations shall be effected in ECU. Where, 
however, the Commission is requested to carry out 
operations in national currencies, all conversions between 
national currencies and ECU shall be made by the executing 
bank on the basis of the official rate (fixing) where this exists 
or on the basis of the market rate, subject to the exceptions 
provided for in Articles 49 (6) and 52 (3). 
2. Any exchange differences and costs shall be charged to 
the beneficiary. Insert a new Article 6 (a) (2): 
'The EDF appropriations shall be used in accordance 
with the principles of economy and sound financial 
management'. 
Insert a new Article 6 (b) (3): 
'All revenue and expenditure shall be entered in full in the 
budget and in'the accounts, without any adjustment being 
made'. 
Article 7 Article 7 
1. The Commission shall communicate to the Council 
each year a statement of contribution payments and a 
progress report on EDF financial operations. 
2. The Commission shall also communicate to the 
Council its estimates of the commitments from the EDF to be 
entered into in respect of the first year of operation of the 
Convention, and shall include with these estimates its 
forecasts of expenditure from the EDF (including those 
relating to earlier conventions) in respect of each of the four 
years following that covered by the request for contributions. 
These forecasts shall be updated annually and communicated 
to the Council on the occasion of the annual request for 
contributions provided for in Article 6 (2) of the Internal 
Agreement. Insert a new paragraph 3 (4) in Article 7: 
'3. These documents shall also be sent to the Court of 
Auditors'. 
(') Harmonization with Article 34 of the proposal for a Council 
Regulation amending the Financial Regulation of 21 December 
1977 (hereafter referred to as NFR). 
(2) Harmonization with Article 2 of the NFR. 
(3) Harmonization with Article 4 of the NFR. 
(4) Harmonization with Article 33 of the NFR. 
No C 361/4 Official Journal of the 
COMMISSION TEXT 
Article 11 
1. The Commission shall appoint the financial controller, 
who shall be responsible for monitoring the commitment and 
authorization of expenditure and for monitoring revenue. 
The financial controller may be assisted in his duties by one 
or more assistant financial controllers. 
2. Monitoring shall be carried out by the financial 
controller by means of inspections of the files relating to 
expenditure and revenue and, if necessary, on the spot. 
3. The special rules applicable to the financial controller 
shall be formulated in such a way as to ensure his 
independence in carrying out his duties. Measures taken in 
respect of his appointment and promotion, disciplinary 
action or transfer, and the various procedures of interruption 
or termination of his appointment shall be the subject of 
reasoned decisions which shall be forwarded to the Council 
for its information. 
4. The persons concerned or the Commission may 
institute proceedings before the Court of Justice. 
Article 12 
The collection of revenue and the payment of expenditure 
shall be carried out by an accounting officer appointed by the 
Commission. Subject to Article 33 (2), this accounting 
officer alone shall be empowered to manage funds and assets. 
He shall be responsible for their care. 
He may be assisted in his duties by one or more assistant 
accounting officers appointed under the same conditions as 
the accounting officer. European Communities 31. 12. 85 
AMENDMENTS PROPOSED BY THE COURT 
Article 11 
Under paragraph 3 of Article 11 add after the words 'to the 
Council'(J): 'Parliament and the Court of Auditors' and 
change 'its' to 'their'. 
Article 12 
Add after paragraph 1: 'The accounting officer shall be 
responsible for keeping the accounts, as provided for in 
Articles 35 and 36, and for drawing up the financial 
statements provided for in Article 64 and 65.' 
Add an Article 12 (a): 'The appointment of the authorizing 
officer, the financial controller, the accounting officer and 
the administrator of advance funds and the accounting plan 
referred to in Article 36 shall be notified to the Court of 
Auditors. The Commission shall forward to the Court all the 
internal regulations that it adopts in the financial field'. 
(J) Harmonization with Article 23 of the NFR. 
31. 12. 85 Official Journal of the European Communities No C 361/5 
COMMISSION TEXT AMENDMENTS PROPOSED BY THE COURT 
SECTION II SECTION II 
Revenue Revenue 
Article 13 
1. The recovery of any sum due to the EDF shall give rise 
to the issue by the authorizing officer of a recovery order. 
2. Recovery orders shall be transmitted by the 
authorizing officer to the financial controller and shall be 
subjet to the latter's approval. The purpose of approval by 
the financial controller shall be to establish that: 
(a) the revenue is correctly credited; 
(b) the recovery order is correct and in conformity with the 
provisions applicable to the management of the EDF 
and with all measures taken in implementation of those 
provisions; 
(c) the principles of sound financial management have been 
applied. 
Article 15 
The Court of Auditors shall be notified of the appointment of 
the authorizing officer, the financial controller, the 
accounting officer and the administrator of advance funds 
and of the accounting plan referred to in Article 36. 
Article 18 
The purpose of approval of proposals for commitments by 
the financial controller shall be to establish that: 
(a) The expenditure has been charged to the correct 
item; 
(b) appropriations are available; 
(c) the expenditure is in order and coforms to the provisions 
applicable to the management of the EDF and to all acts 
made in implementation of those provisions, in 
particular the general and special conditions of the 
financing or loan agreement relating to the operation; 
(d) the principles of sound financial management have been 
applied. Article 13 
In paragraph 2 of Article 13, add after the words 'to the 
latter's approval': 'After having been approved by the 
financial controller, these recovery orders shall be recorded 
by the accounting officer.' 
Add to paragraph 2 (J) of Article 13: 
'(d) the supporting documents are in order; 
(e) the debtor is correctly described; 
(f) the due date is indicated; 
(g) the amount and currency of the sum to be recovered are 
correct.' 
Article IS 
Deletion of Article 15 (see Article 12 (a)). 
Article 18 
Add a new subparagraph to Article 18 (2): 
'Approval may not be conditional'. 
(*) Harmonization with Article 27 of the NFR. 
(2) Harmonization with Article 38 of the NFR. 
No C 361/6 Official Journal of the European Communities 31. 12. 85 
COMMISSION TEXT 
4. Payment of expenditure 
Article 29 
1. Without prejudice to the provisions of Article 227 (4) 
of the Convention concerning the responsibilities of the 
national authorizing officer, payment is the final act whereby 
the EDF is discharged of its obligations resulting from 
carrying out the operations financed. 
2. Payment shall be made by the accounting officer within 
the limits of the funds available. 
Article 32 
Payments shall, as a general rule, be effected through a bank 
account. The procedures for opening, administering and 
using such accounts shall be determined by the Commission. 
These procedures shall in particular require two signatures 
on cheques and on bank transfer orders, one signature 
necessarily being that of the accounting officer, an assistant 
accounting officer or a duly authorized administrator of 
advance funds; the procedures shall, moreover, require the 
specification of the expenditure in respect of which payment 
must necessarily be made either by cheque or by bank 
transfer. 
Article 34 
The conversion rates to be used for the calculation in ECU of 
payments to be made for the purpose of the projects or 
programmes referred to in Title III of Part Three of the 
Convention shall be those in force on the effective date of 
such payments. This date shall correspond to that on which 
the Commission bank accounts referred to in Article 229 of 
the Convention and in Article 3 of this Financial Regulation 
were debited. 
SECTION IV 
Accounts 
Article 35 
The EDF accounts shall be kept in ECU by the double entry 
method and on the basis of the calendar year. They shall 
show all revenue and expenditure for the year and shall be 
substantiated by supporting documents. The revenue and 
expenditure account and the balance sheet referred to in 
Title IV shall be drawn up in ECU. 
Article 37 
The accounts shall be closed at the end of the calendar year to 
enable the balance sheet and the revenue and expenditure 
account of the EDF to be drawn up. The revenue and 
expenditure account shall be submitted to the financial 
controller. AMENDMENTS PROPOSED BY THE COURT 
4. Payment of expenditure 
Article 29 
Add to paragraph 2 of Article 29: 'and shall be recorded 
immediately in the accounts'. 
Article 32 
Insert an Article 32 (a): 
'The authorizing officer and the financial controller shall 
take the measures necessary to clear at the most convenient 
time the exact amount of the advances granted under Article 
230 of the Convention'. 
Article 34 
Article 34, replace: 'on the effective date of such payments' by 
'on the effective date of entry in the accounts'. Delete the last 
sentence. 
SECTION IV 
Accounts 
Article 35 
Article 35, add I1): 
'However, when debts or commitments are in national 
currency, the accounting system should make it possible, 
where necessary, for them to be recorded in the national 
currency as well as in ECU'. 
Article 37 
In the last sentence of Article 37 add after the words 'The 
revenue and expenditure account': 'and the balance sheet'. 
0) Harmonization with Article 69 of the NFR. 
31. 12. 85 Official Journal of the European Communities No C 361/7 
COMMISSION TEXT AMENDMENTS PROPOSED BY THE COURT 
Article 40 Article 40 
1. Accounting officers and assistant accounting officers 
shall be liable to disciplinary action and, where appropriate, 
to payment of compensation as regards payments they make 
in disregard of Article 30. 
They shall render themselves liable to disciplinary action and 
to payment of compensation as regards any loss or 
deterioration of the monies, assets and documents in their 
charge where such loss or deterioration results from an 
intentional mistake or serious negligence on their part. Article 40 (1), second subparagraph: 
Replace 'where such loss ... on their part' by 'unless they can 
show that such loss or deterioration results from causes 
beyond their control'. 
Under the same conditions, they shall be responsible for the 
correct execution of orders received by them in respect of the 
use and administration of bank accounts, and in 
particular: 
(a) where the recoveries or payments made by them do not 
agree with the amounts on the corresponding recovery 
or payment orders; 
(b) where they effect payments to a party other than the 
entitled payee. 
2. Administrators of advance funds shall be liable to 
disciplinary action and, where appropriate, to payment of 
compensation: 
(a) where they cannot show due warrant with proper 
documents for payments made by them; 
(b) where they effect payments to a party other than the 
entitled payee. 
They shall be liable to disciplinary action and to payment of 
compensation in respect of any loss or deterioration of the 
monies, assets and documents in their charge as a result of an 
intentional mistake or serious negligence on their part. Paragraph 2, last subparagraph: replace 'as a result of. . .on 
their part' by 'unless they can show that such loss or 
deterioration results from causes beyond their control'. 
Insert a new paragraph 2(a): 
'A special allowance shall be granted to officials who have 
been appointed accounting officers or administrators of 
advance funds. The sums corresponding to this allowance 
shall be credited each month to an account which the 
Commission shall open in the name of each of these officials 
in order to create a guarantee fund to cover any cash or bank 
deficit for which the official concerned may be held 
responsible'. 
'The credit balance of these guarantee accounts shall be paid 
to the officials concerned after termination of their 
appointments as accounting officers or administrators of 
advance funds and after they have been granted a discharge in 
respect of the performance of their duties'. 
3. Accounting officers, assistant accounting officers and 
administrators of advance funds shall insure themselves 
against any risk they may incur under this Article. Paragraph 3, first subparagraph, add: 'and which cannot be 
covered by the guarantee funds referred to in the previous 
paragraph'. 
No C 361/8 Official Journal of the European Communities 31. 12. 85 
COMMISSION TEXT AMENDMENTS PROPOSED BY THE COURT 
The Commission shall cover the relevant insurance costs. It 
shall specify the categories of officials qualifying as 
accounting officers or administrators of advance funds and 
the terms on which it shall cover the insurance costs borne by 
the accounting officers or administrators of advance funds in 
order to protect themselves against the risks involved in their 
duties. 
Delete paragraph 4 (see paragraph 2 (a)). 
Article 45 Article 45 
As provided for in Article 234 (3) of the Convention, a 
favourable opinion of the EDF Committee shall be required 
for the placing of contracts by direct agreement or after 
restricted invitations to tender or where recourse is had to 
direct labour. Article 45, replace: 'As provided for in Article 234 (3)' by 
'Under Article 234 (3)'. 
However, where they are justified by urgency and by 
unforeseen circumstances, the above exceptions to the rules 
governing competition may be authorized by the 
Commission without a prior opinion from the EDF 
Committee. In that event, the Commission shall immediately 
inform the EDF Committee thereof. Add an Article 45 (a) containing provisions defining the field 
of application and procedures for implementing the 
accelerated procedure for awarding contracts provided for in 
Article 234 (3) of the Convention. 
Article 47 Article 47 
1. Tenders for supply contracts financed by the EDF shall 
be drawn up and payments made, at the option of the 
tenderer, in ECU, in the currency of the recipient State, 
country or territory, in the currency of the country of his 
registered place of business or in that of the country 
producing the supplies. 
2. Tenders for works contracts and for technical 
assistance service contracts financed by the EDF shall be 
drawn up and payments made either in ECU or in the 
currency of the recipient State, country or territory. Article 47 (2) insert after the words 'technical assistance 
service contracts': 'and supervision contracts'. 
However, the tenderer may request in his tender that a part of 
the nominal amount of his tender be paid in the currency of 
the country of his registered place of business or in the 
currency of one of the Member States on the basis of the 
conversion rate in force on the first day of the month 
preceding the month in which the date set for the opening of 
tenders falls. 
The tenderer may be required to justify this part payment in 
the light of the verifiable facts as regards the real origin of the 
services to be provided and of the expenditure to which they 
give rise. 
31. 12. 85 Official Journal of the European Communities No C 361/9 
COMMISSION TEXT AMENDMENTS PROPOSED BY THE COURT 
SECTION II SECTION II 
Financial commitments Financial commitments 
Article 48 Article 48 
1. Commitments of amounts from the EDF shall be 
decided on in accordance with the terms of the relevant 
provisions of the Convention following the procedures in 
Articles 17 to 21 of the Internal Agreement in respect of aid 
managed by the Commission and in Articles 22 and 23 of the 
Agreement for aid managed by the Bank. 
2. The financing agreement andtheloan contract referred 
to in Article 222 of the Convention shall specify the amount 
of the EDF's financial commitment in respect of each 
operation in question. 
3. No expenditure in excess of this amount may be 
charged to the EDF unless a decision has been taken to 
commit additional funds thereto under the conditions laid 
down in Articles 22 to 25 and in Article 57. 
The request for the commitment of additional funds shall be 
addressed to the Commission and appraised under the 
conditions laid down in Article 223 of the Convention. 
Article 49 
4. Amounts due to the Community in respect of special 
loans shall be collected by the Bank on behalf of the 
Community on the basis of a mandate given by the 
Commission to the Bank, after consulting the EDF 
Committee. The provisions of Article 8 of the Internal 
Agreement shall apply to all such amounts recovered by the 
Bank. 
Article SI 
1. Each decision to grant risk capital shall set a limit to the 
Community's commitment and financial responsibilities and 
to the extent of the rights in the company to which such 
operations relate. 
The instruments giving effect to risk capital operations shall 
be concluded by the Bank acting as the Community's 
authorized agent. 
2. The Bank, acting for and on behalf of the Community, 
shall manage the operations referred to in paragraph 1 which 
have been the subject of a financing decision by the Board of 
Directors of the Bank. Article 48 (1) replace: 'Articles 17 to 21' by 'Articles 18 
to 21'. 
Paragraph 3 replace: 'Articles 22 to 25' by 'Articles 16 to 
19'. 
Article 49 
Article 49 (4) replace: 'Article 8' by 'Article 9'. 
Article SI SECTION III SECTION III 
Special loans Special loans 
No C 361/10 Official Journal of the European Communities 31. 12. 85 
COMMISSION TEXT 
3. Following the signing of each contract, the Bank shall 
communicate to the Commission the estimated dates and 
amounts of the calls for funds. Whenever called upon by the 
Bank to do so, the Commission shall pay to the Bank in ECU 
the amount it needs for carrying out risk capital 
operations. 
4. Amounts due in respect of receipts, income and 
repayments relating to risk capital operations shall be 
collected by the Bank on behalf of the Community. The 
provisions of Article 8 (1) of the Internal Agreement shall 
apply to all such amounts received by the Bank. 
TITLE IV 
Presenting and auditing accounts 
Article 64 
1. The Commission shall, in respect of each calendar 
year, draw up not later than 1 June of the following year a 
revenue and expenditure account and a balance sheet for the 
EDF. 
2. The revenue and expenditure account shall include the 
following documents: 
(a) A table of revenue showing: 
— estimated revenue for the financial year, 
— amendments to the revenue estimates, 
— entitlements established in the course of the financial 
year, 
— amounts still to be collected at the end of the 
financial year, 
— additional revenue; 
(b) Expenditure tables which shall include: 
— a table showing the decisions taken by the 
Commission or the Council during the calendar year 
together with a table showing the overall situation 
regarding sums committed, AMENDMENTS PROPOSED BY THE COURT 
Article 51 (3) replace: 'Whenever called upon by the 
Bank . . . risk capital operations.' by 'On the date of each 
disbursement the Bank shall request the Commission to pay 
over the exchange value in ECU of the sums paid in the form 
of risk capital in national currency. The exchange rate used 
shall be that puplished in the Official Journal of the European 
Communities on the date on which the amount to be paid in 
national currency is determined. The latter date shall be 
notified to the Commission.' 
'The Commission shall pay over the sum in ECU not later 
than 21 days after receipt of the request for payment'. 
Article 51 (4) replace: 'Article 8 (1)' by 'Article 9 (1)'. 
TITLE IV 
Presenting and auditing accounts 
Article 64 
Article 64 (1) replace: '1 June' by '15 April' 
Article 64 (1) delete: 'and a balance sheet' 
Article 64 (1) complete this paragraph by: 'which shall be 
preceded by an introductory note setting out the accounting 
principles and methods used in drawing up these 
accounts'. 
Article 64 (2) insert after 'account shall' the words: 'be 
preceded by an analysis of the financial management and'. 
31. 12. 85 Official Journal of the European Communities No C 361/11 
COMMISSION TEXT AMENDMENTS PROPOSED BY THE COURT 
a table showing the situation regarding delegated 
appropriations and expenditure authorizations 
effected during the calendar year and a table 
showing the overall situation regarding delegated 
appropriations and expenditure authorizations 
effected. 
Article 65 
The Commission shall draw up, not later than 1 June each 
year, a balance sheet of assets and liabilities of the EDF as at 
31 December of the preceding year. A statement showing the 
movements and balances of the accounts drawn up on the 
same date shall be attached thereto. Article 65 
Article 65 replace: '1 June' by '15 April'. 
Article 66 
Without prejudice to Article 29 (4) of the Internal 
Agreement, the Commission shall forward the revenue and 
expenditure account and the balance sheet to the European 
Parliament, the Council and the Court of Auditors not later 
than 1 June of the following financial year. Article 66 
Article 66 replace: '1 June' by '15 April'. 
Article 67 Article 67 
The Court of Auditors and its members may in carrying out 
the task of the Court seek assistance from officers of the 
Court. 
Tasks delegated to such officers must be specified and limited 
to the time necessary for their completion. The Court itself or 
one of its members shall notify these tasks to the authorities 
with which the person delegated is to carry out his work. Article 67, second subparagraph: delete the first sentence. 
Replace 'these tasks' by 'the tasks delegated to such 
officers'. 
Article 68 Article 68 
1. The audit carried out by the Court of Auditors shall be 
based on records and, if necessary, be performed on the spot. 
It shall be concerned with operations and projects financed 
from EDF resources managed by the Commission and its 
purpose shall be to establish that all revenue has been 
received and all expenditure incurred in a lawful and regular 
manner with regard to the provisions applicable, and that the 
financial management has been sound. Article 68 (1)(1): delete 'It shall be concerned with 
operations . . . managed by the Commission and'. 
Article 69 Article 69 
1. The Court of Auditors shall communicate to the 
Commission, not later than 15 July, any observations which 
it considers should appear in the annual report provided for 
in Article 206a of the Treaty. Article 69 (1) (2): add 'These comments shall remain 
confidential'. 
(1) Harmonization with Article 85 of the NFR. 
(2) Harmonization with Article 88 of the NFR. 
No C 361/12 Official Journal of the European Communities 31. 12. 85 
COMMISSION TEXT AMENDMENTS PROPOSED BY THE COURT 
The Commission shall forward its replies to the Court of 
Auditors not later than 31 October. 
2. The Court of Authors shall attach to its report an Article 69 (2) replace: 'The Court ... to its report' by 'The 
assessment of the soundness of the financial management. annual report of the Court of Auditors shall contain'. 
3. The Court of Auditors may also, at any time, submit 
observations of specific questions and deliver opinions at the 
request of one of the institutions of the Community. 
This opinion was adopted by the Court of Auditors at its meeting of 12 December 1985. 
For the Court of Auditors 
Marcel MART 
President