Council Regulation (EC, ECSC, Euratom) No 762/2001 of 9 April 2001 amending the Financial Regulation of 21 December 1977 applicable to the general budget of the European Communities as regards separating the internal audit function from the ex ante financial control function - Statements regarding Regulation (EC, ECSC, Euratom) No 762/2001 of 9 April 2001 amending the Financial Regulation of 21 December 1977 applicable to the general budget of the European Communities as regards separating the internal audit function from the ex ante financial control function

Council Regulation (EC, ECSC, Euratom) No 762/2001
of 9 April 2001
amending the Financial Regulation of 21 December 1977 applicable to the general budget of the European Communities as regards separating the internal audit function from the ex ante financial control function
THE COUNCIL OF THE EUROPEAN UNION
,
Having regard to the Treaty establishing the European Community, and in particular Article 279 thereof,
Having regard to the Treaty establishing the European Coal and Steel Community, and in particular Article 78h thereof,
Having regard to the Treaty establishing the European Atomic Energy Community, and in particular Article 183 thereof,
Having regard to the proposals from the Commission(1),
Having regard to the opinion of the European Parliament(2),
Having regard to the opinion of the Court of Auditors(3),
Whereas:
(1) The combining of the internal audit and ex ante financial control functions by the financial controller, under the second sentence of the fifth paragraph of Article 24 of the Financial Regulation of 21 December 1977 applicable to the general budget of the European Communities(4), might in some cases give rise to a blurring of the two functions, without necessarily ensuring a proper balance between the two.
(2) Pending the recasting of the Financial Regulation, the internal audit function should, where necessary, be separated from the financial controller's other functions. The result of this would be that the financial controller will continue to fulfil his present functions, including ex ante financial control, but not that of internal audit, which will be performed by an internal auditor independent of the financial controller.
(3) In the specific case of the Commission, the large volume of transactions carried out and the type of transactions involved, in particular their operational nature, require that the internal audit function be separated from the financial controller's other functions.
(4) The internal auditor will enjoy the same benefits and prerogatives as those granted to the financial controller in Article 24 of the Financial Regulation.
(5) In order to bring greater transparency to budget implementation, each institution's financial controller and internal auditor should produce an annual report illustrating the main lessons to be learned from the last financial year.
(6) The financial controller's ex ante financial control function and guaranteed independence in the performance of his duties should not in any way be hampered by the application of this Regulation. The financial controller should be able to fulfil his function in accordance with Article 24 of the Financial Regulation. The Commission, for Section III, and the other institutions, for their own expenditure, should ensure that the financial controller continues to enjoy the resources and autonomy required for the performance of his duties.
(7) The European Parliament and the Council reached a broad convergence of views on separating the internal audit function from the ex ante financial control function; they thus concluded that it was not necessary, in this particular case, to convene the Conciliation Committee pursuant to the Joint Declaration of 4 March 1975 of the European Parliament, the Council and the Commission(5),