Text in the proposal Court's suggestion

Article 69 Bodies set up under the TFEU and the Euratom Treaty 6. An independent external auditor shall verify that the annual accounts of each of the bodies referred to in paragraph 1 of this Article properly present the income, expenditure and financial position of the relevant body prior to the consolidation in the Commission's final accounts. Unless otherwise provided in the basic act referred to in paragraph 1 of this Article, the Court of Auditors shall prepare a specific annual report on each body in line with the requirements of Article 287(1) TFEU. In preparing this report, the Court shall consider the audit work performed by the independent external auditor and the action taken in response to the auditor's findings. Article 69 Bodies set up under the TFEU and the Euratom Treaty 6. An independent external auditor shall verify that the annual accounts of each of the bodies referred to in paragraph 1 of this Article properly present the income, expenditure and financial position of the relevant body prior to the consolidation in the Commission's final accounts. The independent external auditor shall also verify that all revenue has been received and all expenditure incurred in a lawful and regular manner. Unless otherwise provided in the basic act referred to in paragraph 1 of this Article, the Court of Auditors shall annually report on the audit results a Specific Annual Report on each body for the bodies falling within this article in line with the requirements of Article 287(1) TFEU. In preparing this report such reporting , the Court shall consider the audit work performed by the independent external auditor and the action taken in response to the auditor's findings.

Article 70 Public-private partnership bodies The bodies having legal personality set up by a basic act and entrusted with the implementation of a public-private partnership shall adopt their financial rules. Those rules shall include a set of principles necessary to ensure sound financial management of Union funds. The Commission is empowered to adopt delegated acts in accordance with Article 261 to supplement the Financial Regulation with a model financial regulation laying down the principles necessary to ensure sound financial management of Union funds and which shall be based on Article 149. The financial rules of those bodies shall not depart from the model financial regulation except where their specific needs so require and with the Commission's prior consent. Paragraphs 2, 3 and 4 of Article 69 shall apply to public-private partnership bodies. Article 70 Public-private partnership bodies The bodies having legal personality set up by a basic act and entrusted with the implementation of a public-private partnership shall adopt their financial rules. Those rules shall include a set of principles necessary to ensure sound financial management of Union funds. The Commission is empowered to adopt delegated acts in accordance with Article 261 to supplement the Financial Regulation with a model financial regulation laying down the principles necessary to ensure sound financial management of Union funds and which shall be based on Article 149. The financial rules of those bodies shall not depart from the model financial regulation except where their specific needs so require and with the Commission's prior consent. Paragraphs 2, 3, and 4 to 6 of Article 69 shall apply to public-private partnership bodies.

Article 123 Cross-reliance on audits Where an audit based on internationally accepted standards providing reasonable assurance has been conducted by an independent auditor on the financial statements and reports setting out the use of the Union contribution, that audit shall form the basis of the overall assurance, as futher specified, where appropriate, in sector specific rules. Article 123 Cross-reliance on audits Where an audit based on internationally accepted standards providing reasonable assurance has been conducted by an independent auditor on the financial statements and reports setting out the use of the Union contribution, that audit shall form the basis of the overall assurance may be taken into account in the context of the audit of the Union expenditure , as fu r ther specified, where appropriate, in sector specific rules. To this end, the report of the independent auditor and the related audit documentation shall be made available to the Commission and the Court of Auditors at their request.

Article 126 Financial framework partnerships 3. With a view to optimise costs and benefits of audits and facilitate coordination, audit or verification agreements may be concluded with persons and entities implementing funds pursuant to point (c) of Article 61(1) or beneficiaries of grants. In the case of the European Investment Bank the tripartite agreement concluded with the Commission and the European Court of Auditors shall apply. Article 126 Financial framework partnerships 3. With a view to optimise costs and benefits of audits and facilitate coordination, audit or verification agreements may be concluded with persons and entities implementing funds pursuant to point (c) of Article 61(1) or beneficiaries of grants. In the case of the European Investment Bank the tripartite agreement concluded with the Commission and the European Court of Auditors shall apply. Such agreements shall not restrict the access of the Court of Auditors to information necessary for the audit of Union funds.

Article 211 Rules for budgetary guarantees 2. Contributions from Member States to budgetary guarantees pursuant to Article 201(2) may be provided in the form of guarantees or cash. An amount exceeding the amount indicated in point (a) of paragraph 1 shall be granted on behalf of the Union. Payments for guarantee calls shall be made, where necessary, by the contributing Member States or third parties on a pari passu basis. The Commission shall sign an agreement with the contributors that shall contain, in particular, provisions concerning the payment conditions. Article 211 Rules for budgetary guarantees 2. Contributions from Member States to budgetary guarantees pursuant to Article 201(2) may be provided in the form of guarantees or cash. An amount exceeding the amount indicated in point (a) of paragraph 1 shall be granted on behalf of the Union. Payments for guarantee calls shall be made, where necessary in principle, by the contributing Member States or third parties on a pari passu basis. The Commission shall sign an agreement with the contributors that shall contain, in particular, provisions concerning the payment conditions.

Article 247 Rules and procedure on the audit 1. The examination by the Court of Auditors of whether all revenue has been received and all expenditure incurred in a lawful and proper manner shall have regard to the Treaties, the budget, this Regulation, the delegated acts adopted pursuant to this Regulation and all other acts adopted pursuant to the Treaties. This examination shall take account of the multiannual character of programmes and related supervisory and control systems. Article 247 Rules and procedure on the audit 1. The examination by the Court of Auditors of whether all revenue has been received and all expenditure incurred in a lawful and proper manner shall have regard to the Treaties, the budget, this Regulation, the delegated acts adopted pursuant to this Regulation and all other acts adopted pursuant to the Treaties. This examination shall take account of the multiannual character of programmes and related supervisory and control systems.

Article 249 Court of Auditors' right of access 1. The Commission, the other institutions, the bodies administering revenue or expenditure on the Union's behalf and recipients shall afford the Court of Auditors all the facilities and give it all the information which the Court of Auditors considers necessary for the performance of its task. They shall place at the disposal of the Court of Auditors all documents concerning the award and performance of contracts financed by the budget and all accounts of cash or materials, all accounting records or supporting documents, and also administrative documents relating thereto, all documents relating to revenue and expenditure, all inventories, all organisation charts of departments, which the Court of Auditors considers necessary for auditing the budgetary and financial outturn report on the basis of records or on-the-spot auditing and, for the same purposes, all documents and data created or stored electronically. The internal audit bodies and other services of the national administrations concerned shall afford the Court of Auditors all the facilities which it considers necessary for the performance of its task. 2. The officials whose operations are checked by the Court of Auditors shall: (a) show their records of cash in hand, any other cash, securities and materials of all kinds, and also the supporting documents in respect of their stewardship of the funds with which they are entrusted, and also any books, registers and other documents relating thereto; (b) present the correspondence and any other documents required for the full implementation of the audit referred to in Article 247. The information supplied under point (b) of the first subparagraph may be requested only by the Court of Auditors. 3. The Court of Auditors shall be empowered to audit the documents in respect of the revenue and expenditure of the Union which are held by the departments of the institutions and, in particular, by the departments responsible for decisions in respect of such revenue and expenditure, the bodies administering revenue or expenditure on the Union's behalf and the natural or legal persons receiving payments from the budget. 4. The task of establishing that the revenue has been received and the expenditure incurred in a lawful and proper manner and that the financial management has been sound shall extend to the utilisation, by bodies outside the institutions, of Union funds received by way of contributions. 5. Union financing paid to recipients outside the institutions shall be subject to the agreement in writing by those recipients or, failing agreement on their part, by contractors or subcontractors, to an audit by the Court of Auditors into the use made of the financing granted. 6. The Commission shall provide the Court of Auditors, at its request, with any information on borrowing-and-lending operations. 7. Use of integrated computer systems shall not have the effect of reducing access by the Court of Auditors to the supporting documents. Article 249 Court of Auditors' right of access 1. The Commission, the other institutions, the bodies administering revenue or expenditure on the Union's behalf and recipients shall afford the Court of Auditors all the facilities and give it all the information which the Court of Auditors considers necessary for the performance of its task. They shall place at the disposal of the Court of Auditors, at its request, all documents concerning the award and performance of contracts financed by the budget and all accounts of cash or materials, all accounting records or supporting documents, and also administrative documents relating thereto, all documents relating to revenue and expenditure, all inventories, all organisation charts of departments, which the Court of Auditors considers necessary for auditing the budgetary and financial outturn report on the basis of records or on-the-spot auditing and, for the same purposes, all documents and data created or stored electronically. The Court's right of access shall include the access to the IT system used for the management of the revenue or expenditure subject to its audit. The internal audit bodies and other services of the national administrations concerned shall afford the Court of Auditors all the facilities which it considers necessary for the performance of its task. 2. The officials whose operations are checked by the Court of Auditors shall: (a) show their records of cash in hand, any other cash, securities and materials of all kinds, and also the supporting documents in respect of their stewardship of the funds with which they are entrusted, and also any books, registers and other documents relating thereto; (b) present the correspondence and any other documents required for the full implementation of the audit referred to in Article 247. The information supplied under point (b) of the first subparagraph may be requested only by the Court of Auditors. 3. The Court of Auditors shall be empowered to audit the documents in respect of the revenue and expenditure of the Union which are held by the departments of the institutions and, in particular, by the departments responsible for decisions in respect of such revenue and expenditure, the bodies administering revenue or expenditure on the Union's behalf and the natural or legal persons receiving payments from the budget. 4. The task of establishing that the revenue has been received and the expenditure incurred in a lawful and proper manner and that the financial management has been sound shall extend to the utilisation, by bodies outside the institutions, of Union funds received by way of contributions. 5. Union financing paid to recipients outside the institutions shall be subject to the agreement in writing by those recipients or, failing agreement on their part, by contractors or subcontractors, to an audit by the Court of Auditors into the use made of the financing granted. 6. The Commission shall provide the Court of Auditors, at its request, with any information on borrowing-and-lending operations. 7. Use of integrated computer systems shall not have the effect of reducing access by the Court of Auditors to the supporting documents. Whenever technically possible, electronic access to data and documents necessary for the audit shall be given to the Court of Auditors in its own premises.

Article 250 Annual report of the Court of Auditors 1. The Court of Auditors shall transmit to the Commission and the institutions concerned, by 15 June, any observations which are, in its opinion, such that they should appear in the annual report. Those observations shall remain confidential and shall be subject to an adversarial procedure. Each institution shall address its reply to the Court of Auditors by 15 October. The replies of institutions other than the Commission shall be sent to the Commission at the same time. 2. The annual report shall contain an assessment of the soundness of financial management. 3. The annual report shall contain a section for each institution. The Court of Auditors may add any summary report or general observations which it sees fit to make. The Court of Auditors shall take all necessary steps to ensure that the replies of each institution to its observations are published next to or after each observation to which they relate. 4. The Court of Auditors shall transmit to the authorities responsible for giving discharge and to the other institutions, by 15 November, its annual report accompanied by the replies of the institutions and shall ensure publication thereof in the Official Journal of the European Union. Article 250 Annual report of the Court of Auditors 1. The Court of Auditors shall transmit to the Commission and the institutions concerned, by 15 30 June, any observations which are, in its opinion, such that they should appear in the annual report to enable the institution concerned to comment upon them . Those observations shall remain confidential and shall be subject to an adversarial procedure. Each institution shall address its reply to the Court of Auditors by 15 October July . The replies of institutions other than the Commission shall be sent to the Commission at the same time. 2. The annual report shall contain an assessment of the soundness of financial management. 3. The annual report shall contain a section for each institution. The Court of Auditors may add any summary report or general observations which it sees fit to make. The Court of Auditors shall take all necessary steps to ensure that the replies of each institution to its observations are published next to or after each observation to which they relate together with the annual report . 4. The Court of Auditors shall transmit to the authorities responsible for giving discharge and to the other institutions, by 15 November, its annual report accompanied by the replies of the institutions and shall ensure publication thereof in the Official Journal of the European Union.