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LEGAL BASES OF GOVERNMENT AUDIT
1. The Title Five of the Federal Constitution Act
2. Court-of-Audit Act
3. Rules of Procedure of the National Council
Article 121
[Tasks of the Court]
(1) The Court of Audit shall audit the operations of the Federal government, of the provinces, of the associations of local governments, of local governments and of other authorities designated by law.
(2) The Court of Audit shall draw up the Federal financial statements and present them to the National Council.
(3) Insofar as they result in a liability on the part of the Federal government, the President of the Court of Audit - or his deputy should he be impeded - shall countersign all documents concerning financial debt. Such countersignature shall merely certify that the debt was entered into legally and duly registered in the main ledger of government debt.
(4) With respect to all enterprises and institutions subject to the audit by the Court on which it reports to the National Council, the Court shall request information every other year on the average income, including all social security benefits, non-cash benefits and benefits for pensions of members of the managing board and the supervisory board as well as of all other employees, and report to the National Council thereon. The average incomes of the above-mentioned persons shall be listed separately for each enterprise and each institution.
Article 122
[Independence; Composition of the Court of Audit]
(1) The Court of Audit shall be directly subordinated to the National Council. In matters concerning the Federal financial operations and in matters involving the financial operations of the statutory professional representations, inasmuch as the implementation of laws thereon is a task reserved to the Federation, the Court of Audit shall act as an organ of the National Council; it shall act as an organ of a provincial diet when involved in matters concerning the financial operations of the provinces, associations of local governments and local governments (communities), and in matters involving the financial operations of the statutory professional representations, inasmuch as the implementation of laws thereon is a task reserved to the provinces.
(2) The Court of Audit shall be independent of the Federal and provincial governments and shall only be subject to the provisions of the law.
(3) The Court of Audit shall comprise a President and the necessary staff of civil servants and auxiliary personnel.
(4) The President of the Court of Audit shall be elected by the National Council upon nomination by its Standing Committee for a term of twelve years. Re-election is not possible. Prior to the assumption of office, the President of the Court of Audit shall be sworn in by the President of the Republic.
(5) The President of the Court of Audit may neither be a member of any general representative body nor have held office in the Federal or a provincial government during the preceding four years.
Article 123
[Accountability; dismissal]
(1) With regard to accountability, the President of the Court of Audit shall have the same status as the members of the Federal government or of the provincial government concerned, depending on whether the Court of Audit is acting as an organ of the National Council or of a provincial diet.
(2) The President of the Court of Audit may be removed from office by a vote of the National Council.
Article 123a
[Participation in the debates of the National Council]
(1) The President of the Court of Audit shall be entitled to participate in the debates of the National Council as well as of its committees (sub-committees) dealing with the reports of the Court of Audit, the Federal financial statements, requests for special audits to be performed by the Court, and with the pertinent section of the Federal Finance Bill.
(2) According to the detailed provisions of the Federal law governing the rules of procedure of the National Council, the President of the Court of Audit shall be heard at his own request in all debates on items specified in para. (1) .
Article 124
[Representation of the President]
(1) Should the President of the Court of Audit be prevented from the discharge of his responsibilities, the most senior official of the Court shall deputise for him. This also holds good if the office of President is vacant. Who shall act as deputy for the President of the Court of Audit in the National Council shall be determined by the Federal law governing the rules of procedure of the National Council.
(2) In the absence of the President of the Court of Audit, the provisions of Article 123, para (1), shall apply to his deputy.
Article 125
[Appointment of officials and auxiliary staff]
(1) Officials of the Court of Audit shall be appointed by the Federal President upon recommendation and with the countersignature of the President of the Court of Audit; the same holds good for the conferment of the official titles. The Federal President may, however, authorise the President of the Court of Audit to appoint certain categories of officials.
(2) Auxiliary personnel shall be appointed by the President of the Court of Audit.
Article 126
[Incompatibility]
The members of the staff of the Court of Audit shall not participate in the management and administration of enterprises subject to the authority of the Court of Audit. Likewise, no member of the Court of Audit shall take part in the management and administration of any other profit-oriented enterprise.
Article 126a
[Differences concerning the competence of
the Court of Audit]
Should differences of opinion arise as to the interpretation of legal provisions governing the authority of the Court (between the Court of Audit and any legal entity (Art. 121, para (1)), the Constitutional Court shall decide upon a request of the Federal or a provincial government, or of the Court of Audit. In complying with the views held by the Constitutional Court, all legal entities shall allow an audit by the Court. This obligation shall be enforced by the ordinary courts of law. Such procedure shall be governed by Federal law.
Article 126b
[Audit of Federal financial operations]
(1) The Court of Audit shall examine all Federal financial operations as well as those of foundations, funds and institutions administered by Federal organs, or by persons (bodies) appointed for that purpose by Federal organs.
(2) The Court of Audit shall also examine the operations of enterprises in which the Federal government alone, or together with other legal entities subject to the authority of the Court, holds a share of at least 50 per cent of the nominal capital, share capital or equity capital, as well as the operations of enterprises wholly operated by the Federal government or operated together with other such legal entities. Such financial participation shall be deemed equivalent to the control of enterprises by other financial, or other economic and organisational measures. In addition, any subsidiary enterprises to which the provisions of this paragraph apply shall be subject to the authority of the Court.
(3) The Court of Audit shall be authorised to audit the financial operations of public corporate bodies which administer Federal funds.
(4) At the decision of the National Council, or upon request of the members of the National Council, the Court shall carry out special audits within its scope of authority. More detailed regulations are laid down in the Federal law on the rules of procedure of the National Council. Upon a duly justified request of the Federal government or a Federal minister, the Court of Audit shall likewise carry out such special audits and communicate its findings to the person or agency requesting them.
(5) The audits conducted by the Court shall extend to the correctness of accounting and to compliance with existing regulations, as well as to the economy, efficiency and effectiveness of financial operations.
Article 126c
[Audit of social insurance institutions]
The Court of Audit shall be authorised to examine the financial operations of social insurance institutions.
(1) The Court of Audit shall annually render a report to the National Council on its activities in the foregoing year. This report shall be submitted no later than December 31st of every year. The Court may also report to the National Council on particular observations made as the need arises. All reports rendered to the National Council shall be submitted simultaneously to the Federal Chancellor. After presentation to the National Council, the reports of the Court of Audit shall be published.
(2) A standing committee shall be appointed by the National Council to deliberate on the reports of the Court. The committee shall be appointed by applying the principle of proportionate representation.
Article 127
[Audit of the financial operations of the
provinces]
(1) The Court of Audit shall audit the financial operations carried out within the scope of the autonomous authority of the provinces, as well as those of foundations, funds and institutions administered by organs of a province, or by persons (bodies) appointed for that purpose by organs of a province. Such audits shall extend to the correctness of the accounting, to compliance with existing regulations and to the economy, efficiency and effectiveness of financial operations. However, they shall not extend to the decisions adopted by constitutionally competent representative bodies with respect to such operations.
(2) The provincial governments shall annually submit their budgets and financial statements to the Court.
(3) The Court of Audit shall furthermore examine the operations of enterprises in which a Federal province alone, or together with other legal entities subject to the authority of the Court of Audit, holds a share of at least 50 per cent in the nominal capital or share capital or equity capital, as well as enterprises wholly operated by a provincial government, or operated together with other such legal entities. The provisions of Art. 126b, para (2) shall apply mutatis mutandis to the notion of financial participation. In addition, any subsidiary enterprise to which this paragraph applies shall be subject to the authority of the Court.
(4) The Court of Audit shall be authorised to audit the operations of corporate public bodies which administer funds of a provincial government.
(5) The Court of Audit shall communicate the results of its audits to the competent provincial government. The provincial government shall submit its comments thereon and shall report to the Court within three months on any action taken in response to the audit report.
(6) The Court of Audit shall submit a report on its activities in relation to the respective province in the foregoing year to the provincial diet no later than 31st December of each year. Moreover, the Court may report to the provincial diet on any observations made at any time.
All reports rendered to the provincial diet shall be submitted simultaneously to the provincial government and to the Federal government. The reports of the Court shall be published after presentation to the provincial diet.
(7) The Court of Audit shall carry out special audits within its scope of authority upon the decision of a provincial diet, or upon the request of a defined number of deputies of the provincial diet to be determined by provincial constitutional law, which however shall not exceed one third of all deputies. Pending the submission of a report to the provincial diet in response to such request, no further similar requests shall be addressed to the Court. Likewise, the Court of Audit shall conduct special audits upon a duly justified request by a provincial government and communicate its findings thereon to the requesting agency.
(8) The provisions of this Article shall also apply to the audit of the financial operations of the City of Vienna, with the Municipal Council taking the place of the provincial diet, and the Municipal Senate that of the provincial government.
Article 127a
[Audit of the financial operations of
communities]
(1) The Court of Audit shall examine the financial operations of local authorities in communities with at least 20,000 inhabitants, as well as the operations of foundations, funds and institutions administered by organs of a local authority, or by persons (bodies) appointed for that purpose by organs of local authorities. Such audits shall extend to the correctness of accounting, to compliance with existing regulations, as well as to the economy, efficiency and effectiveness of financial operations.
(2) The mayors shall annually submit to the Court of Audit – and simultaneously to their provincial governments – their budgets and financial statements.
(3) The Court of Audit shall furthermore audit the operations of enterprises in which a community with at least 20,000 inhabitants alone, or together with other legal entities subject to the authority of the Court of Audit, holds a share of at least 50 per cent in the nominal capital or share capital or equity capital, as well as enterprises wholly operated by a local authority or operated together with other such legal entities.
The provisions of Art 126b, para (2) shall apply mutatis mutandis to the notion of financial participation. In addition, any subsidiary enterprise to which this paragraph applies shall be subject to the authority of the Court.
(4) The Court of Audit shall be authorised to audit the operations of corporate public bodies which administer funds of a community with at least 20,000 inhabitants.
(5) The Court of Audit shall communicate the results of its audits to the mayor. The mayor shall submit his comments thereon and report to the Court within three months on any action taken in response to the report. The Court shall communicate its findings to the provincial government and to the Federal government, together with any comments by the mayor.
(6) The Court of Audit shall render a report on its activities in the foregoing year relating to a local authority to the municipal council no later than 31st December. All reports rendered to the municipal council shall be submitted simultaneously to the provincial government and to the Federal government. The reports of the Court of Audit shall be published after presentation to the municipal council.
(7) Upon a duly justified request by the competent provincial government, the Court of Audit shall in individual cases audit the financial operations of communities with less than 20,000 inhabitants and report its findings to the provincial government. Paras. (1) and (3) of this Article shall apply.
(8) The provisions applying to the audit of local governments with at least 20,000 inhabitants shall apply mutatis mutandis to the audit of associations of local governments.
Art. 127b
[Audit of the financial operations of the statutory professional
representations]
(1) The Court of Audit shall audit the financial operations of the statutory professional representations.
(2) The statutory professional representations shall annually submit their budgets and financial statements to the Court of Audit.
(3) The audits conducted by the Court shall extend to the correctness of accounting, to compliance with existing regulations, and to the economy and efficiency of financial operations. However, they shall not extend to the decisions adopted by the competent organs of the statutory professional representations in accomplishing their tasks as interest representations with respect to the financial operations.
(4) The Court of Audit shall report on the findings of its audits to the chairman of the organ which lays down the statutes of the statutory professional representation (representative body). The latter shall submit the findings of such audit, together with any comments thereon, to the organ which lays down the statutes of the statutory professional representation (representative body). At the same time, the Court of Audit shall communicate the results of its audit to the supervisory authority competent to oversee the statutory professional representations. After presentation to the organ which lays down the statutes of the statutory professional representation (representative body), the reports of the Court shall be published.
Article 128
[Court of Audit Act]
The detailed provisions governing the establishment and activities of the Court of Audit shall be laid down by Federal law.
The Federal Law of June 16, 1948 on the Court of Audit
BGBl No. 144/1948
in the version promulgated by the Chancellery, BGBl No. 299/1958 and the Federal Laws BGBl No. 179/1959, BGBl No. 541/1977, BGBl No. 664/1989, BGBl No. 119/1996 et BGBl No. 64/1997
The National Council has resolved as follows:
1. Audit of financial operations
Article 1 (1) The Court of Audit shall examine all financial operations of the government. Subject of this examination are:
1. all revenues and expenditures of the Federal government;
2. the entire management of the Federal debt;
3. the management of movable and immovable Federal property.
(2) The Court of Audit shall examine all expenditures deviating in extent or nature from the Federal Budget (draft bill). Such operations - unless authorised by special law - are to be brought to the notice of the Court of Audit prior to their effectuation, unless there is imminent danger. Among such operations are those in which the amounts of a partial credit contained in the general specifications of the Federal Budget are exceeded by the authorising authority.
(3) The Court of Audit shall also examine the financial operations of all funds, foundations and institutions administered by Federal organs or by persons (bodies) appointed for that purpose by organs of the Federal government.
(4) Upon the decision of the National Council or a duly justified request of the Federal government or a Federal minister, the Court of Audit shall perform special audits within its scope of authority; the Court of Audit shall report the results of such audits to the National Council, or to the minister or authority requesting them.
Article 2 (1) In conducting such audits in accordance with Article (1), the Court of Audit shall determine whether the operations are carried out in compliance with existing laws, the implementation decrees issued on the basis of such laws and other regulations; the Court of Audit shall also determine whether such operations are carried out economically, efficiently and effectively. Audits shall in no circumstances be restricted to the correctness of accounting.
(2) In its audits, the Court of Audit shall examine the potential for eliminating or reducing expenditures, and for increasing existing or realising new types of revenues.
Article 3 (1) In exercising its functions, the Court of Audit shall communicate directly with all agencies and bodies subject to its audit.
(2) The Court of Audit shall be authorised:
1. to request all information deemed necessary from these agencies or bodies at any time, either in writing or in the most expedient manner ;
2. to require the submission of accounts, books, vouchers and other records (such as files, correspondence, contracts);
3. to conduct on-site inspections by its own staff of the books, vouchers and other records pertinent to the operations, and
4. to require the higher-level administrative authority to conduct on-site investigations at their subordinate agencies in the presence of a staff member of the Court of Audit, and to carry out spot checks on cash at hand (petty cash) in the presence of an executive officer of the agency being examined.
Article 4 (1) The authorities and agencies listed under Article 3 (1) shall reply to all inquiries of the Court of Audit immediately and in full; they shall supply all information requested and carry out all measures that the Court of Audit may require in the course of the audit.
(2) The Federal ministries and all agencies, monopolies and enterprises of the Federal government immediately subordinated to them shall communicate all rules and general regulations which either pertain to Federal revenues or expenditures, or have a general bearing on Federal finances, concurrently to the Court of Audit.
Article 5 The Court of Audit shall communicate its findings and any proposals resulting therefrom either directly to the agencies audited, or via the competent authority to which such agency is subordinated. These agencies shall comment on the criticism and proposals of the Court of Audit so communicated within three months and shall at the same time report on any measures taken in this respect. The Court of Audit shall communicate the results of its audits to the competent ministry.
2. Reglementation of Accounting
Article 6 (1) Together with the Federal Ministry of Finance, the Court of Audit shall ensure that accounting methods which are as efficient and as simple as possible are used; whenever in the pursuit of this goal the internal organisation of an agency is affected, the agreement of the Federal Ministry to which such agency is subordinated shall be sought.
(2) The Federal ministries shall issue basic rules and regulations affecting accounting and cash operations only in agreement with the Court of Audit and the Federal Ministry of Finance. The pertinent decree shall make reference to such agreement.
(3) Other rules and regulations of a general nature on accounting and cash operations shall be communicated prior to their issuance to the Court of Audit and the Federal Ministry of Finance.
Article 7 In case of grave differences of opinion about the implementation or interpretation of accounting rules and the charging of individual items against certain credits, the Federal Ministry of Finance shall consult and agree with the Court of Audit prior to any decision. Should no agreement be reached, the provisions of Article 9, para. (1) shall be applied mutatis mutandis.
Article 8 The Court of Audit shall communicate to the competent Federal ministry and to the Ministry of Finance any observations concerning the organisation and implementation of accounting, or the management of the accounting agencies and shall submit suitable proposals in this respect.
3. Drawing up of the Federal Financial Statements. Statement of Federal Debt, Reporting.
Article 9 (1) In agreement with the Federal Ministry of Finance, the Court of Audit shall determine the time and method of drawing up the annual financial statements. The Court of Audit shall audit the annual accounts submitted directly, remedy any errors in direct consultation with the submitting authority and draw up the Federal financial statements. Prior to submission to the National Council, these statements shall be submitted to the Federal Ministry of Finance for comment. Within three weeks, the Federal Minister of Finance shall have the right to comment on the statements; the Court of Audit shall either take such comments into consideration, or shall submit them together with any rejoinder to the National Council. In any event, the Court of Audit shall submit the Federal financial statements to the National Council for consideration in accordance with the Constitution, not later than 30 September the following fiscal year.
(2) The Court of Audit shall annually submit to the National Council a statement on the Federal Debt together with the financial statements.
4. Countersigning of Documents involving Federal Indebtedness
Article 10 (1) All documents on Federal financial debts, as far as an obligation on the part of the Federal government is incurred thereby, shall be countersigned by the President of the Court of Audit or, in his absence, by his deputy. Such countersignature shall only attest that the debt was entered into legally, and that it was duly registered in the main ledger of government debt.
(2) If no document is issued on the assumption of a financial obligation, the Court of Audit shall assure that such debts are duly entered into the proper books.
Article 11 (1) Economic enterprises forming separate legal entities and created by special law which act as trustees for Federal property, or for which the Federal government has assumed a guarantee against loss (separate economic enterprises), shall be audited by the Court of Audit as to the economy and efficiency of all or part of their activities; such scrutiny shall extend to compliance with existing rules, to the correctness of the annual financial statements, and shall be carried out through an examination of the books, vouchers and other records (files, contracts, correspondence) as well as through seeking clarifications.
(2) These enterprises shall annually submit their budgets, annual financial statements and annual reports to the Court of Audit. The annual financial statements shall be audited prior to the discharge of management as required under the law. The Court of Audit shall communicate the results of the audit of the financial statements as well as of other audits to the supervisory body of the enterprise and to the Federal ministry in charge.
(3) Notwithstanding the audits exercised in accordance with paras. (1) and (2), the Court of Audit shall, upon request of the Federal government or the competent Federal minister, also carry out special audits and communicate the results thereof to the agency requesting them.
(4) As required, the President of the Court of Audit may delegate staff members to participate, occasionally or permanently, as representatives with an advisory function in the deliberations of the supervisory agencies. These staff members shall have the right to ask for certain items to be placed on the agenda, and may request information from the supervisory agency and the managing board at any time.
(5) Companies, in which the enterprises listed under para. (1) hold a financial interest, or in which they hold an interest deemed equal to a financial interest in accordance with Art. 12, para. (1) of this Act, may be audited by the Court of Audit applying the provisions of Art. 12 mutatis mutandis. The results of such audits shall be communicated to the supervisory bodies of the enterprises listed under para. (1), to the ministries in charge and - in case of audits requested under para. (3) - to the agency requesting such audit.
Article 12 (1) The Court of Audit shall also audit the operations of other enterprises in which the Federal government, alone or together with other legal entities subject to the authority of the Court, holds a share of at least 50 per cent of the nominal capital or share capital or equity capital, as well as enterprises wholly operated by the Federal government, or operated together with other such legal entities. Such financial participation shall be deemed equivalent to the control of enterprises by other financial, or other economic and organisational measures. In addition, the Court of Audit shall audit any subsidiary enterprises for which this paragraph is applicable. Audits performed by the Court shall extend to the correctness of accounting, compliance with existing regulations, and to the economy, efficiency and effectiveness of financial operations of these enterprises.
(2) The Federal ministries charged with safeguarding the Federal interest in such enterprises shall submit a copy of the balance sheets and accounts to the Court of Audit as soon as these documents are received; within three months they shall submit to the Court a report on any examination conducted on their own. At the same time, the reports of any Federal representatives in the governing bodies of such enterprises shall be submitted to the Court, and any additional files necessary shall be put at the disposal of the Court.
(3) For the purpose of auditing, the Court shall be authorised to examine all books, vouchers and other documents (files, contracts, correspondence) including those of the current business year, and to request any and all information deemed necessary from the enterprises described under para. (1).
(4) The Court of Audit shall communicate the results of such audit to the ministry in charge and to the Ministry of Finance.
(5) In conducting its audits and disclosing its findings, the Court of Audit shall not violate business and trade secrets of the enterprise being audited.
Article 13 (1) The financial operations of corporate public bodies using Federal funds or public funds put at their disposal for purposes related to Federal public administration, shall be subject to an examination by the Court. Applying the provisions set forth in Article 3 and Article 4, para. (1) mutatis mutandis, the Court of Audit shall examine the correctness of accounting, whether the funds were used as appropriated and earmarked, as well as the economy, efficiency and effectiveness of financial operations.
(2) The Court of Audit shall communicate the results of its audits to the ministry in charge.
(3) If Federal funds are put at the disposal of other than Federal authorities for designated purposes, the Court of Audit may examine the use of such funds. For such examinations, the provisions of para. (1) and (2) shall apply mutatis mutandis.
Article 14 (1) For its audits, the Court of Audit shall be authorised to employ experts, particularly in the cases covered by Articles 11 and 12. The selection of these experts shall be made after the Federal Ministry involved has been given an opportunity to comment. Experts shall be sworn in for their work by a court of law.
(2) Experts shall be bound to maintain business and trade secrets disclosed in the course of their work. Should any business or trade secrets be wrongfully used, the applicable penal provisions (unfair competition) shall apply analogously.
Article 14a (1) With respect to all enterprises and institutions which are subject to the audit by the Court and on which the Court reports to the National Council, the Court shall request information every other year on the average incomes, including all social security benefits and non-cash benefits of members of the managing board and the supervisory board, as well as of all other employees, and information on additional pension benefits payable at present, or in the future, to former members of the above-specified group of persons. Such information shall be requested for the two preceding years, but for each year separately.
For such inquiries the provisions of Art 3, para. (2), item 1 and Art 4, para. (1) shall apply mutatis mutandis.
(2) The report thereon shall be rendered to the National Council, and shall detail the average incomes of the groups of persons specified above separately; the additional pension benefits shall be listed as a sum-total for each enterprise, and for each institution separately.
1. Provinces
Article 15 (1) The Court of Audit shall examine the financial operations carried out within the scope of the autonomous authority of the provinces, as well as the operations of foundations, funds and institutions administered by organs of a province or by persons (bodies) appointed for that purpose by organs of the provinces. In addition, the Court shall also audit the operations of enterprises in which a Federal province alone, or together with other legal entities subject to the authority of the Court of Audit, holds a share of at least 50 per cent of the share capital, nominal capital or equity capital, as well as enterprises wholly operated by the provincial government, or operated together with other such legal entities.
Financial participation shall be defined in accordance with the provisions of Article 12, para. (1). In addition, any subsidiary enterprises to which this paragraph applies shall be subject to the authority of the Court. The audit by the Court of Audit shall extend to the correctness of accounting, compliance with existing regulations and to the economy, efficiency and effectiveness of financial operations. However, the audit shall not cover the decisions adopted by the constitutional representative bodies with regard to such operations.
(2) In the case of enterprises listed under para. (1) which constitute a separate legal entity and are subject to a compulsory audit through an auditor appointed by the provincial government in agreement with the Court of Audit and in accordance with the direct or interpretative meaning of the Stock Corporation Act, the Court shall perform its audit on the basis of the report submitted by the appointed auditor; this report shall be submitted to the Court.
The Court shall be authorised to request further information from the appointed auditor and, as the case may be, also from the enterprise itself. The Court may also carry out a supplementary audit of these enterprises; for the purpose of such audit all books, vouchers and other records (files, contracts, correspondence), including those of the current year, may be examined and all information deemed necessary may be demanded. In agreement with the Court of Audit, the provincial government may issue directives for the appointed auditors performing the compulsory audit under the Stock Corporation Act. In conducting their audits and disclosing their findings, the organs of the Court of Audit shall not violate business and trade secrets.
(3) If funds of a provincial government are put at the disposal of public corporate bodies or legal entities other than those of the provincial government for designated purposes, the Court of Audit may examine the use of these funds. For this purpose the provisions of Article 13, para. (1) and (2) shall apply mutatis mutandis.
(4) Upon a vote by the provincial diet, or upon a request by a defined number of members of the provincial diet determined by provincial constitutional law, the Court of Audit shall carry out special audits within its scope of authority (para. (1)). Likewise, the Court shall carry out such special audits within its scope of authority (para. (1)) upon a duly justified request by the provincial government and communicate the results thereof to the provincial government.
(5) The provincial governments shall annually submit to the Court of Audit their budgets and financial statements - the latter prior to their submission to the provincial diet, in any case no later than 6 months after the end of the fiscal year.
(6) The Court of Audit shall examine the financial operations as a whole, or parts thereof. For that purpose the Court shall be authorised to require any information deemed necessary at any time, and the submission of books, vouchers and other records (such as files, contracts, correspondence), to conduct an on-site inspection of such books, vouchers and other records, and have spot checks on cash at hand (petty cash) to be carried out, and to participate in such actions through its staff.
(7) The Court of Audit shall be authorised to employ experts for such audits. Prior to the selection of experts, the provincial government shall be granted an opportunity to comment. Experts shall be sworn in for their work by a court of law. The provisions of Art. 14, para. (2), shall apply.
(8) The Court of Audit shall communicate the results of its audits to the provincial government. The provincial government shall submit its comments thereon and shall report to the Court within three months on any action taken in response to the audit report.
(9) The Court of Audit shall submit a report on its activities in the foregoing year with relation to the respective province to the provincial diet no later than December 31st of each year. Moreover, the Court may, at any time, report to the provincial diet on any observations made. All reports rendered to the provincial diet shall be submitted simultaneously to the provincial government and to the Federal government. The reports of the Court shall be published after presentation to the provincial diet.
Article 16 The provisions of Art. 15 shall also apply to the audit of the financial operations of the City of Vienna, with the Municipal Council taking the place of the provincial diet and the Municipal Senate that of the provincial government.
2. Associations of Local Authorities
Article 17 The provisions of Article 18 shall apply mutatis mutandis to the audit of the financial operations of associations of local authorities.
3. Local Authorities
Article 18 (1) The Court of Audit shall examine the operations of all local authorities in communities with at least 20.000 inhabitants, as well as the operations of foundations, funds and institutions administered by organs of a local authority or by persons (bodies) appointed for that purpose by organs of local authorities. In addition, the Court shall audit the financial operations of enterprises in which a local authority with at least 20.000 inhabitants alone, or together with other legal entities subject to the authority of the Court of Audit, holds a share of at least 50 per cent of the nominal capital, share capital or equity capital, as well as all enterprises wholly operated by a local authority, or operated together with other such legal entities.
Financial participation shall be defined according to Art. 12, para. (1). In addition, any subsidiary enterprises for which this paragraph is applicable shall be subject to the authority of the Court. Audits performed by the Court shall extend to the correctness of accounting, to compliance with existing regulations and to the economy, efficiency and effectiveness of financial operations.
(2) In cases in which any of the enterprises listed under para. (1) constitutes a separate legal entity and is subject to a compulsory audit by an auditor appointed by the provincial government in agreement with the Court of Audit and in accordance with the direct or interpretative meaning of the Stock Corporation Act, the Court shall perform its audit on the basis of the report submitted by the appointed auditor to the Court of Audit. The Court of Audit shall be authorised to request any further information from the appointed auditor and, as the case may be, also from the enterprise itself.
The Court of Audit may also carry out a supplementary audit at the enterprise; for the purpose of such audit, all books, vouchers and other records (files, contracts, correspondence), including those of the current year, may be examined and all information deemed necessary may be demanded. In agreement with the Court, the provincial government may issue directives for the appointed auditor performing the compulsory audit under the Stock Corporation Act. Business and trade secrets shall not be violated on the occasion of an audit by organs of the Court of Audit and through the disclosure of the results of the audit.
(3) If funds of a local authority listed under para. (1) are put at the disposal of public corporate bodies, or legal entities other than those of the provincial government, for designated purposes, the Court of Audit may examine the use of these funds. For such purpose, the provisions of Art. 13, para. (1) and (2) shall apply mutatis mutandis.
(4) Within the scope of authority described in para. (1), the Court of Audit shall carry out special audits upon a duly justified request by a provincial government.
(5) The mayors of the local authorities listed under para. (1) shall annually submit to the Court of Audit - and simultaneously to the provincial government - their budgets and financial statements, the latter prior to the submission to the municipal council, no later than six months after the end of the fiscal year.
(6) The Court of Audit shall examine the financial operations as a whole or parts thereof. For this purpose, the Court shall be authorised to request any information deemed necessary at any time, the submission of books, vouchers and other records (such as files, contracts, correspondence), to conduct an on-site inspection of such books, vouchers and other records, to require spot checks of cash on hand (petty cash) to be carried out, and to participate in such actions through its staff. The provisions of Article 15, para. (7) shall apply mutatis mutandis.
(7) The Court of Audit shall communicate the results of its audits to the mayor. The mayor shall submit comments thereon within three months at the latest, reporting on any action taken. The Court shall communicate the result of its audits, together with any comments by the mayor, and any rejoinder by the Court to the provincial government and the Federal government.
(8) The Court of Audit shall render a report on its activities in the foregoing year with relation to the respective local authority no later than December 31st. All reports rendered to the municipal council shall be submitted simultaneously to the provincial government and the Federal government; such reports shall also be included in the report to the provincial diet (Art. 15, para. (9)). The reports of the Court shall be published after presentation to the municipal council.
Article 19 (1) Upon a duly justified request by the provincial government, the Court of Audit shall audit the financial operations of communities with less than 20.000 inhabitants and report the results thereof to the Provincial Government.
(2) For such audits, the provisions of Article 18, para. (1) to (3) and (6) and (7) shall apply mutatis mutandis.
Article 20 (1) Notwithstanding the supervision exercised by the Federal government under the Social Insurance Regulations, the Court of Audit shall audit the financial operations of social insurance institutions in full or parts thereof; for which the provisions of Article 2, para. (1) shall apply mutatis mutandis. For this purpose, the Court may require submission of the yearly budgets, the annual financial statements including the annual reports, as well as any information or explanations deemed necessary; the Court of Audit shall also be authorised to conduct an on-site inspection, if necessary, of all books, vouchers and other records (such as files, contracts and correspondence).
(2) For such audits, the Court of Audit may contract experts; prior to their selection the opinion of the ministry exercising supervision over the social insurance institution being audited shall be solicited. Experts shall be sworn in for their work by a court of law; the provisions of Article 14, para. (2) shall apply.
(3) The results of such audits shall be communicated to the Federal ministry exercising supervision over the social insurance institution being audited.
(4) Article 14a shall also apply to the Social Insurance Institutions.
Art 20a 1) Notwithstanding statutory oversight and the powers entrusted to the Court of Audit under § 13 (1) and (3), § 15 (3) and § 18 (3), the Court of Audit shall audit the financial operations of the statutory professional representations with regard to the correctness of accounting, compliance with existing regulations, as well as economy and efficiency. However, such audit shall not extend to the decisions adopted by the competent organs of the statutory professional representations in accomplishing their tasks as interest representations with regard to the financial operations.
(2) For the purposes of such audit, the Court of Audit may seek all clarification and information deemed necessary, and may inspect, if necessary, the accounts, vouchers, and all other records (such as files, correspondence, contracts) on site.
(3) In conducting such audits, the Court of Audit may employ experts, in the selection of which the supervisory authority competent to oversee the statutory professional representation in question must be heard. For their activities, experts shall be sworn in by a court of law; they shall be governed by the provisions of §14 (2).
(4) The Court of Audit shall report on the findings of its audits to the chairman of the organ which lays down the statutes of the statutory professional representation (representative body). At the same time, the Court of Audit shall communicate the results of its audit to the supervisory authority competent to oversee the statutory professional representation. The chairman of the organ which lays down the statutes of the statutory professional representation (representative body) shall arrange for the report by the Court of Audit to be published.
(5) The statutory professional representations shall report their budgets and financial statements annually and without delay to the Court of Audit
Article 21 Prior to assumption of office, the President of the Court of Audit shall be sworn in by the President of the Republic. The document certifying appointment shall be signed by the President of the Republic on the day the oath is administered and be countersigned by the Federal Chancellor. With the exception of remuneration, the President shall be equal in rank to a Federal minister.
Article 22 (1) Notwithstanding the prerogatives of the President of the Republic, the President of the Court of Audit shall be independent in all personnel matters concerning the staff of the Court. In doing so, he shall observe the general regulations governing the federal civil service.
(2) All prerogatives of the Federal Government or a Federal Minister in respect of civil servants arising under a law or an ordinance shall apply to the President of the Court as far as the staff of the Court is concerned.
Article 23 (1) The President of the Court of Audit shall communicate directly with the National Council and its committees; he shall do so either personally or through delegates appointed by him.
(2) The President of the Court of Audit shall furnish to the National Council and its committees information concerning his activities whenever requested.
Article 24 The President of the Court of Audit or his deputy shall participate in the deliberations of the Federal government in advisory function:
1. whenever such deliberations deal with questions of assuring and conducting audits of financial operations, and the results thereof, fundamental questions of accounting, and the drawing up of financial statements or the participation of the Court of Audit in the management of the national debt, as well as subjects included in the agenda at the suggestion of the Court;
2. whenever personnel matters of the Court of Audit are being discussed.
Article 25 (1) Section IV, the new designation of the previous sections IV and V and § 25 in the version of the Federal Legal Gazette BGBl No 119/1996 shall become effective as of 1 January 1997.
2) Article 21 last sentence as amended by Federal Legal Gazette BGBl No 64/1997 shall become effective as of 1 August 1997.
Article 26 (1) The Federal Government shall be charged with implementing this act; for the implementation, the agreement of the President of the Court of Audit shall be sought.
(2) As far as the organisation of the Court of Audit is concerned, this act shall be implemented by the President of the Court.
Federal Legal Gazette BGBl. No 410/1975 as amended by the Law on the Rules of Procedure of 15 September 1996, Federal Legal Gazette BGBl. No 438/1996
The National Council has resolved:
Art 20 (1) The President of the Court of Audit shall have the right to participate in the proceedings of the National Council, its Committees and the latters' Sub-Committees on the reports of the Court of Audit, the Federal Financial Statements, motions under § 99(1) concerning the performance of special investigations into the administration of public funds and those chapters of the Draft Federal Budget which concern the Court of Audit.
(2) The President of the Court of Audit shall furthermore have the right to have himself accompanied by staff members of the Court of Audit at the sittings of the National Council, its Committees and the latters' Sub-Committees which he attends, unless a decision to the contrary is taken in respect of individual sittings or parts thereof.
(3) The President of the Court of Audit shall have the right to take the floor repeatedly in the course of the debates of the National Council, its Committees and the latters' Subcommittees on matters enumerated in (1) above, but he must not interrupt speakers holding the floor.
(4) The National Council, its Committees and the latters' Sub-Committees may require the presence of the President of the Court of Audit at their deliberations.
(5) With regard to the members of the Ombudsman's Office, paragraph (4) above and, in the case of deliberations on the reports of the Ombudsman's Office and on the chapters of the Draft Federal Budget concerning the Ombudsman's Office, paragraphs (1-3) shall apply mutatis mutandis.
Art. 21. (1) The following submissions in writing shall be items of business for the National Council and for preliminary deliberation by its Committees:
– private members' motions
– Federal government bills ;
– reports and motions of the Main Committee pursuant to §31 d(5);
– Federal Council bills;
– popular initiatives;
– objections by the Federal Council;
– stenographic records of parliamentary hearings;
– joint reports of Members delegated by the National Council, or the National Council in conjunction with the Federal Council, to international parliamentary organisations and of Members of the National and Federal Councils participating in meetings of the Interparliamentary Union;
– reports of the Federal Government and its members pursuant to § 28 b (4);
– reports of the Court of Audit and Federal Financial Statements;
– reports of the Ombudsman's Office;
– requests for the approval of the public prosecution of Members under § 10 (2 and 3);
– requests for a decision on possible connections with the political activities of Members as outlined in Art. 10 (3), and notifications on the part of authorities under Art. 10 (5);
– requests of authorities under Art. 63 (2) B-VG;
– requests for the authority to prosecute persons for insulting the National Council;
– petitions and citizens' initiatives.
(2) Other items of business of the National Council shall be the following submissions of Committees:
– committee motions;
– reports of investigating committees;
– reports of the Standing Sub-Committee of the Court of Audit Committee (§ 32e (4));
– reports of the Main Committee in accordance with special legal provisions;
(3) The National Council shall further deal with the following items of business:
- reports by hearing commissions;
- questions and answers thereto;
- declarations by members of the Federal government;
- information on the appointment of members of the Federal government (§70, B-VG) and of under-secretaries of state (§78 (2) B-VG);
- elections
(4) The Committees shall deal with the following items of business:
- reports submitted by the Federal government and its members pursuant to §28 b (1 to 3).
Art.23 (1) Upon receipt of Federal Government Bills and other items of business submitted by the Federal Government, Federal Council bills, popular initiatives, objections by the Federal Council, stenographic records of parliamentary hearings, reports of commissions of enquiry, reports of the Federal Government and its members, reports of the Court of Audit or Federal Financial Statements, reports of the Ombudsman's Office as well as written questions and answers thereto, the President shall direct these submissions to be copied and distributed to the Members.
The copying and distribution of reports of Members delegated by the National Council, or the National Council jointly with the Federal Council, to international parliamentary organisations as well as of Members of the National and Federal Councils participating in meetings of the Interparliamentary Union shall be directed by the President after consultation with the members of the President's Conference at a time deemed appropriate.
Art. 29 (1) The National Council shall elect the Main Committee from among its Members in accordance with the principles of proportional representation.
(2) The Main Committee shall, in particular,
a) consult with the Federal government within the framework of the Austrian participation in the appointment of members of the Commission, the Court of Justice, the Court of first instance, the Court of Auditors and the Board of Directors of the European Investment Bank pursuant to § 23c (2) B-VG;.
b) adopt a position on projects within the framework of the European Union pursuant to § 23 e and f, B-VG;
c) conduct a preliminary debate on motions concerning the holding of a referendum pursuant to § 49 b, B-VG;
d) participate in the setting of rates and tariffs pursuant to § 54, B-VG;
e) consult with the Federal government or a Federal minister on certain ordinances for which such agreement is required by Federal law pursuant to §55 B-VG;
f) receive reports from the Federal government or a Federal minister, to the extent stipulated by Federal law pursuant to § 55 B-VG;
g) submit a proposal for the election of the President of the Court of Audit pursuant to § 122, 4 B-VG;
h) submit an overall proposal for the election of the members of the Ombudsman's Office pursuant to § 148 g, 2, B-VG;
i) submit an overall proposal for the election for the members of the Complaints Commission pursuant to § 6, 9 Wehrgesetz (Defence Act) of 1990, BGBl. No 305.
Art. 32 a (1) The Committee charged, in particular, with preliminarily deliberating Federal money bills shall also participate in the administration of the budget under Arts. 51b and c(2) B-VG and undertake preliminary deliberations on the Federal Financial Statements; subject to revocation, said Committee may refer certain tasks to a Standing Sub-Committee to be elected in accordance with §31 above, which shall also participate in the administration of the budget under Arts. 51b and c(2) B-VG if the Federal President dissolves the National Council under Art. 29(1) B-VG.
(2) The Standing Sub-Committee shall be confidential unless it decides otherwise.
(3) Whenever necessary, the Committee or its Standing Sub-Committee shall be convened even during times when the National Council is not in session.
(4) The President shall refer all items of business under Arts. 51b and c(2) B-VG directly to the Committee or its Standing Sub-Committee, the time lapse stipulated in the last sentence of Art. 51b(2)B-VG beginning at the time of referral.
(5) In the course of the preliminary deliberation on a Federal Finance Law every Member entitled to sit on and vote in the Budget Committee shall have the right to address brief and concrete written questions to the government members present on condition that such questions are germane to the issue in hand.
Such questions shall be announced by the Chairperson and copies thereof attached to the Official Record. The government member so queried shall under any circumstances, within a period of four working days from the time of submission, provide written answers to a maximum of five questions put by any one questioner. If the government member queried is not in a position to provide the desired information, this shall be stated in the answer and the reasons given. Upon receipt of the answers in writing, the President shall cause them to be copied and distributed to the questioners, the members of the Budget Committee and all Parliamentary Groups.
Art. 32 b (2) The members of the Standing Sub-Committees shall retain their seats until the competent Committees have elected other members or until another member has been designated under Art. 36 (2).
Art. 32 e (1) The Court of Audit Committee (Art. 79 (2)) shall elect a Standing Subcommittee, in which each party represented in the Main Committee shall have at least one member
(2) The National Council may, upon a motion seconded by five members, decide to instruct said Sub-Committee to investigate a particular event subject to the provisions of §99(2). Alternatively, such action may, subject to the conditions stipulated in (3) below, be called for by one quarter of the members of the National Council.
(3) A demand under the last sentence of (2) above shall not be permitted if the subject matter in question is already being examined by the Court of Audit. In addition, demands of this nature must not be made as long as a previous demand is being complied with. If several demands are made by Members of different Parliamentary Groups, the President shall see to it that these demands are dealt with in alternation.
(4) The Sub-Committee shall commence deliberations within four weeks of a decision taken under the first sentence of (2) above or of receipt by the President of the National Council of a demand made under (2) second sentence above and shall report to the Court of Audit Committee within another six months. The Court of Audit Committee may decide to submit this report to the National Council.
(5) The Sub-Committee shall be governed by the provisions on the organisation and procedure of Sub-Committees as well as the provisions of §32 b (2).
Art 37. (1) The President of the National Council may attend, in a consultative capacity, even the deliberations of those Committees of which s/he is not a member. Other Members may attend as observers.
(2) Committees may invite other Members to attend their meetings in a consultative capacity.
(3) Committees shall be under the obligation to invite the Authorised Persons under the Popular Initiatives Act of 1973 to attend those parts of their meetings which are devoted to the preliminary deliberation on a popular initiative.
(4) Members of the Federal Council shall have the right to attend the deliberations of Committees as observers.
(5) Persons who are not authorised to attend Committee sit-tings under (1) to (4) above or under §18(1) or §20(1 and 5), may attend such meetings only if authorised (directed) to do so by the President of the National Council or the com-petent member of the Federal Government, the President of the Court of Audit or the President of the Ombudsman's Office.
(6) Every Committee may exclude from its meetings or parts thereof any persons who are neither Members of the National Council nor entitled to attend the deliberations under §18 (1) and §20(1 and 5).
(7) The Committees may decide that and to what extent its deliberations and decisions shall be confidential. The Committee may also exclude from its confidential deliberations those Members who have no right to vote in the meeting; a decision to exclude such Members shall require a majority of two thirds of the votes cast.
(8) Under no circumstances can the Presidents of the National Council be excluded from a Committee meeting.
(9) In the preliminary debate on major draft bills and state treaties, the committees may resolve to hear experts and testifying persons in open session pursuant to § 28 b (2). Voice or image recordings shall be allowed.
Art. 41 (7) After at least three members who have asked for the floor have actually spoken, a motion to close debate may be made at any time on condition that the member holding the floor is not interrupted; the chairperson shall put any such motion to the vote immediately. If the motion is carried, all members who have already asked for the floor shall have the right to speak. If at the time of the vote the chairperson has no further requests for the floor, each of the Parliamentary Groups represented on the Committee (§32) shall have the right to appoint a speaker from its midst.
Art. 62 (2) Members of the Federal Government, the President of the Court of Audit and the members of the Ombudsmann's Office shall, if they ask for the floor under §19 and §20, respectively, speak from the Government bench.
Art. 63 (1) No Member shall speak more than twice in any one debate.
(2) Requests for the floor on the part of members of the Federal Government, the President of the Court of Audit and the members of the Ombudsmann's Office shall be governed by the provisions of §19 and §20, respectively.
(3) If there are no further requests for the floor, the President shall close the debate and give the floor to the rapporteur for his/her final statement, if s/he so requests. A rapporteur under §44(4) or §45 shall only have the right to a final statement for the purpose of correcting typographical or linguistic errors.
Art. 79 (1) The Federal Financial Accounts shall be presented by the Court of Audit. The Court of Audit shall report to the National Council about its activities during the preceding year and about special auditing activities under § 99 by December 31 of each year. In addition, the Court of Audit may report to the National Council at any time about specific findings and introduce proposals thereon.
(2) The President shall refer reports of the Court of Audit for preliminary deliberation to the standing committee established for this purpose (Court of Audit Committee) at the sitting following their distribution. The Federal Financial Statements shall in the same way be referred to the Committee in accordance with § 32a.
(3) The Committee shall commence preliminary deliberation of Court of Audit Reports within six weeks. The Court of Audit Committee may decide that testifying persons pursuant to § 28 b (2) shall be heard in public session. Sound and image recordings shall be inadmissible. In any such debate, the speaking time shall be limited to 10 minutes each. Moreover, a timetable for the hearing shall be proposed at the beginning of the sitting. Preliminary deliberation by the Committee shall be followed by a debate and vote in accordance with the General Provisions concerning the Consideration of Business in Sittings of the National Council.
(4) In the case of the Federal Financial Statements, the Committee's proposal shall, if its report is favourable, contain a bill to that effect. In this case the National Council shall embark upon the second reading in accordance with the Special Provisions regarding the Consideration of Bills.
Art. 87 (4) The President of the Court of Audit, the members of the Ombudsman's Office as well as the chair-persons of the Complaints Commission under § 6 Defence Act shall be elected upon nomination by the Main Committee.
Art. 91a (1) Questions which a Member wishes to address to the President of the Court of Audit within a session shall be submitted to the President. The right to question shall pertain to matters within the jurisdiction of the Court of Audit to the extent that they concern the management of the budget in accordance with the Federal Budget Act the service prerogative under Art. 21(3) B-VG and the organisation of the Court of Audit under §26(2) Court of Audit Act.
(2) All other matters shall be governed, mutatis mutandis, by the provisions of § 91 above.
Art. 99 (1) The National Council may, upon a private Member's motion (§§ 26 and 27), decide to ask the Court of Audit to carry out audits of special aspects of the administration of public funds.
(2) Such audits shall be carried out without a decision of the National Council if a motion tabled under § 26 and seconded in writing by at least 20 Members refers to a special event in connection with a matter of the federal administration of public funds that falls within the jurisdiction of the Court of Audit (Art. 122(1) B-VG).
(3) No further such motion may be tabled as long as three audits of the administration of public funds under (2) above are pending. In addition, no Member may second such a motion as long as two such audits are pending which were instituted with the seconds of members of the Parliamentary Group to which s/he belongs. An audit shall be deemed pending up to the time the Court of Audit presents its report to the National Council.
(4) The President shall communicate any motion meeting the conditions stipulated in (2) and (3) above to the National Council at the end of the sitting.
(5) The President shall without delay communicate to the Court of Audit any decision under (1) or demand under (2) above.
(6) The Court of Audit shall report to the National Council on its audit under (1) or (2) above.
Art. 109 (1) This Federal Law shall, except for § 86, enter into force on October 1, 1975; § 86 shall enter into force on July 1, 1976.
(2) Upon entering into force, the provisions of this Federal Law shall supersede the Federal Law of 6 July 1961 BGBl. No 178 concerning the standing orders of the National Council.
The Court of Audit performs a financial audit and a legality audit and monitors the sound use of public funds. Its checks concern the expenditures and receipts of the federal community, regional and provincial government.
The results of these three kinds of audit lead to information statements that are regularly submitted to the legislative assemblies.
The Court is also charged with a jurisdictional task.
The Federal State, the Communities, the Regions, the public service institutions depending on those entities and the provinces report annually on the use of the public funds they were entrusted with.
The accounts are transmitted to the Court, which verifies the accuracy, the reliability and the completeness of the entries in the financial statements and checks the conformity of the recorded transactions with the accounting legislation.
Besides, the Court checks and closes the accounts of the public accounting officers, i.e. the representatives of the executive power in charge of the collection and/or payment of the public funds.
The Court considers whether the accounting officers' accounts are in balance, whether the balance, whether the balance is in their favour or in the State's favour. In the two first cases, it draws up a discharge judgement. The third case gives rise to an administrative deficit judgment that might result in the carrying out of the jurisdictional task.
The Court performs a legality audit on the public expenditures and receipts. It checks their conformity with the budgetary law (it checks whether there are enough credits on the budget, whether the operations are correctly charged against the budget, etc.) and it ensures that the law rules applicable to the controlled operation are correctly implemented (especially the standards that apply in public procurement contracts, in granting and use of the subsidies, the recruitment of the staff, etc.)
The legality audit is carried out through the prior approval or 'visa' of the payment orders relating to the expenditures. No payment can be made without the approval of the Court, which ensures that the regulation has been respected before granting its 'visa'. If the Court finds it should withhold its approval, the Government can decide, under its responsibility, that payment should take place. The Court then approval with reservation and immediately informs the concerned legislative assembly to which it explain its reasons for doing so. A large amount of fixed expenditures such as the staff expenses, however, are exempt by law from the obligation of prior approval in order to speed the payment process. In that case the legality and the regularity are post audited.
The legality audit also includes the control of the liabilities taken by the executive power chargeable to the commitment appropriations.
As far as the retirement pensions of the public sector are concerned, the Court of Audit has to rule on their legality and rates before approving the order issued for their granting.
The Court of Audit is also charged with the monitoring of the sound use of public funds in order to inform Parliament about the way the public services are managed.
The nature of this audit is defined on the basis of three principles : economy, effectiveness and efficiency.
- The economy audit assesses whether the implemented financial, human and material resources have qualitatively and quantitatively been acquired and used at the lowest cost and at the right moment.
- The effectiveness audit assesses the extend to which the stated goals and objectives have been attained.
- The efficiency audit assesses the output for a given amount of resources or, in other words, it ensures that the financial human and material resources are implemented for optimal results.
This audit is performed ex post facto, that is, after the execution of the operations.
Like its other tasks the Court carries out this one on its own initiative. The principle of general independence is a guarantee of objectivity and impartiality. However, in order to improve the information of the legislative assemblies, the legislator has made it possible for these assemblies to charge the Court with specific missions of management analysis.
The Court of Audit informs the legislative assemblees and the provincial councils of the results of its audit missions. Indeed, in order to grant, with full knowledge of the facts, the appropriations asked by the executive power expertly and to be able to assess their use, the assemblees and councils must be provided with adequate and impartial budgetary information.
This information takes several forms. The Court of Audit submits its audit reports to the assemblees and councils, either in the form of syntheses integrated into the annual Book of comments or in the form of special publications. The choice of one or the other solution depends on the emergency of the information to communicate.
Besides, the Court informs the legislative assemblies involved of every commitment, authorization or payment of expenditures exceeding the budget appropriations.
Finally, the Court fulfils an important function as a budget counselor. Before the approval of all budget drafts submitted to the legislative assemblies it transmits its comments to them.
The Court's documents that are transmitted to the different assemblies are discussed in committees for finances in the presence of a Court representative.
The Constitution also charges the Court of Audit with auditing and validating the accounts of the general administration and of all accounting officers answerable to the public Treasury. The accounts of the accounting officers are sent to the Court every year, as well as in the event of a deficit and when they leave office.
Within this context a councilor from each chamber is appointed by order of the President to decide by administrative ruling whether the accounting officers' accounts are in balance, whether the balance is in their favour or in the State's favour. If the ruling shows a deficit in the management of an accounting officer, the relevant minister has to summon him/her to appear before the Court of Audit. He can only refrain from summoning him/her if he is of the opinion that the accounting officer can evoke circumstances beyond his/her control ('force majeure') or if the deficit doesn't exceed an amount set by royal decree.
After a public procedure, in the presents of the parties involved, the Court exonarates the accounting officer if it concludes he/she is out of debt or there are circumstances beyond his/her control. If this is not so, it condemns the accounting officer to make good that amount or part of it in the case of mitigating circumstances.
The rulings can be referred to the Court of Cassation. If the judgement of the Court of Audit against an accounting officer is quashed by the Court of Cassation, the case will be referred to an appropriate "ad hoc" committee, made up of members of the House of Representatives who judge without any subsequent appeal.
The Court is also entrusted with a jurisdictional task towards the authorizing officers delegated by the minister. It requires them to repay the amounts if they have committed appropriations in violation of the legal provisions or incurred losses to be paid by the Treasury. In the jurisdictional phase, they are submitted to the same procedure as that applying to the accounting officers.
