FRANCE

4th Chamber - Ministries in Charge of Sovereign activities (Justice, Home, Foreign Affairs....), decision on appeals filed by regional audit chambers.

5th Chamber - Ministries of Employment, Labour, Vocational Training, Housing and Social Affair, Bodies depending on State Aid.

6th Chamber - Ministries of Health, Social Security, Social Security Organisations.

7th Chamber - Ministries in Charge of Public Works, Transport, Urban Development, Agriculture, Fisheries, Environment and Tourism.

STAFF

600 people work at the Palais Cambon. More than 300 administrative agents look after documentation, registry, archives, training, personnel management, budget, internal services and computerisation.

Magistrates

The Premier President is assisted by a Secretary General and two Deputy Secretary Generals. The seven Chambers have nearly hundred senior commissioners and Commissioners and junior officers i.e. to say, in all, around 200 judges. In addition they are assisted by a dozen Commissioners on special service, around fifty functionaries from different administrations working as rapporteurs and around sixty assistants. Thus more than 300 people attend to the task of verification.

The Director of Public prosecution in charge of public prosecutor's office is assisted by a Deputy Director of Public prosecution and two other deputy directors selected from among the magistrates of the Audit office.

The Junior officials are recruited every year from among the best outgoing candidates of the ENA. Three fourths of the commissioners are appointed from among these candidates. The remaining one fourth are appointed by the 'external round' procedure. Persons thus appointed should be at least 35 years old and have 10 yrs. of experience in public administration. Junior officials & Commissioners of audit are appointed through an edict issued by the President of the Republic.

Two Thirds of the Senior commissioners are appointed from among the Commissioners. The rest are appointed by the 'external round' procedure provided they are at least 40 years old and have at least 15 years experience in public administration. Presidents of Chambers are selected from among the Senior Commissioners having atleast 3 years seniority. The Premier President, president of Chambers and Senior Commissioners are appointed by decree issued by the council of Ministers.

As a general rule, a junior official becomes commissioner after 3 years in his position and then Senior Commissioner after a fresh period of 15 years. Retirement is at 65 years except in the case of Premier President and Director of Public Prosecution who will retire at 68 years.

Because of their status as magistrates, members of the Audit office hold their office for life. They may, if they so desire, spend their entire career in the Audit Office. However most of them work successively at the Audit office and other Public bodies (on secondment) or Private bodies (on reserve).

Financial Jurisdictions

The Audit Office and Regional Chamber of Audit together constitute the financial jurisdiction. (ii) Other Bodies are also associated to the Audit office.

Acts of 2nd & 27th December 1994 and the Act of 24th July 1995 together constitute legislative texts related to financial jurisdictions.

1. Audit Office

1.1 Since the 2nd World War a growth in the jurisdiction of the State has brought about an extension of the tasks of the Audit office.

Verification of legality :

Articles L. III-1 and L.III-3 of the code of financial jurisdictions stipulates that "the Audit office shall verify public accounts" and "it shall verify the legality of revenue and expenditure mentioned in the public accounts."

Besides public accounts the Audit office verifies accounts of any person who might have mishandled public monies.

Verification of Management: The Audit Office and use of public funds

The Audit office does not sit in judgement over those authorized to make payment but verifies if public funds are properly utilized, either when it checks accounts of public accountant and public institutions or by directly checking if officials authorized to make payment manage the funds properly.

As regards organisations which benefit from State help, the Audit office verifies if the expenditure incurred by these organisations conform to the objectives for which state help is sought.

Assistance to Parliament and Government

Since the constitutional Reform of 22nd February 1996, the new article 47-1 provides that the Audit office "Shall assist the Parliament and the government in audit verification and enforcement of laws for financing social security."

Collaboration between the State Audit office and the Parliament

The Premier President can, in the first instance communicate to the finance commissions of the two Assemblies and Parliamentary enquiry committees the observations of the Audit office. If no reply is received within six months, especially on substantive issues, the communications addressed to the ministers are transmitted as of right to the finance commissions of the two assemblies.

Parliamentary commissions, finance Commissions and Select Committees can request the Audit office to carry out special inquiries into the management of services or bodies within its purview.

Every year the Audit office draws up a report on the implementation of finance laws of the previous year. This report is communicated to the Parliament in July.

Since 1995 the Audit office draws up every year a report on all the social security of organisations under its purview.

1.2 Organisation and Functioning

Organisation

The Audit office has a Premier President appointed by a decree issued by the Council of Ministers. He is appointed for life. In addition, the secretary General, who is a magistrate, assisted by two deputy secretary generals, who are also magistrates, carries out the administrative tasks of the audit office under the supervision of the Premier President.

The Audit office is assisted by a Public Prosecutor appointed through decree issued by the Council of Ministers. The Public Prosecutor is assisted by a Premier advocate general and two advocates who are also magistrates in the Audit office.

Powers of the Chambers

There are seven chambers in the Audit office. Each chamber has around 30 magistrates, rapporteurs and officials (civil administrators, engineers) either on secondement or available due to job mobility. They work under a President.

Since 12th September 1997, in accordance with the decision taken by the Premier President powers are distributed as shown in page 1 of this document.

Functioning

Schedule of Work

The Audit Office is an autonomous body with independent legislative and executive powers. This autonomy is guaranteed by its status as a judicial body, by the permanent tenure of its members who have the status of a judge as also by the fact that it is free to draw up its own schedule of audit verification.

Every year, the Premier President decides upon the schedule of work for the twelve months.

It is decided upon taking into account the date of previous audit verifications. The objective is to ensure that all institutions under the supervision of the Audit Office should be checked at least once in four or five years.

Each Chamber entrusts each case of verification to one or several rapporteurs )magistrates, and officials, who may be assisted by an assistant). The findings are counter verified by a Senior Commissioner.

Procedures

Scope of Investigations

The rapporteurs have vast powers of investigation. All bodies which come under the supervision of the Audit office should make available to the Audit Office basic documents. This is only a minimum obligation. Nothing should be kept secret from the Audit office.

No document related to accounts and management can be refused on grounds of confidentiality and this binds all persons concerned with the administration and management of the organisation including the higher supervisory authority. Any attempt at hampering the investigation of the Audit office is liable to a fine of 100.000 Francs.

Role of Public Prosecutor

The Prosecutor ensures that accounts are submitted by accountants and ensures notification of decisions to concerned administrations (It is the secretary general of the Audit office who notifies the accountants).

He gives his opinion on the general organisation of work by the Audit office and supervises implementation. He participates in the work of different committees, Commissions or groups within the jurisdiction.

Upon intimation from administrative authorities, the public Prosecutor refers to the Audit office operations which are presumed to be part of management operations. He and the advocate generals can attend sittings of the Chambers and present verbally their observations. Thus he coordinates the work of different chambers and ensures unity of jurisprudence.

He communicates with the administrations and public enterprises, either in his official capacity (especially when he calls for accounts) or at the instance of the Audit office.

He is the intermediary between the Audit office and the judicial authorities. Upon injunction from the Audit office he submits the cases to the Ministry of Justice, and on his own initiative, he informs the Prosecutors of the order of the Court.

Judgement

After each case of audit verification, the Audit Office gives a judgement. As the accountant does not appear before the Audit Office to defend himself, a procedure of two rounds of judgements is adopted :

First a provisional judgement fixing responsibility on the accountant is given; This is followed by a final decision after sight of documentary evidence submitted by the accountant.

Injunctions for provisional judgements are often given for want of additional documentary evidence, errors in deduction, double payments, on payments made by mistake and failure to recover taxes etc.

Final decisions may state that the accountant has fulfilled his obligation (receipt in full discharge, acquittal) or that he owes money to the community whose account he is in charge of (decision calling for restitution of public moneys).

Further an accountant can be acquitted or given partial or complete pardon through a decision of the ministry in charge of budget.

At the instance of The Court, the Public Prosecutor informs the judges about offences that were noted during the verification [illegal collection of interest, misappropriation of funds or misuse of funds].

Quantitative Results

Apart from seven hundred reports every year, and insertions of the findings of around 30 inspections in the annual public report, and special public reports on a dozen themes, the Audit Office draws up every year, a report on the implementation of Finance Acts of the previous year, and a report on social security submitted to verification by the Court. The latter reports are sent to Parliament when Finance Commissions begin reviewing the draft Finance Bill for the next year.

REGIONAL AUDIT CHAMBERS

Members of the Regional Audit Chambers are magistrates who hold their position for life.

Their duty is to verify accounts of public accountants of these territorial communities and their public institutions, review management of these communities as well as the management of their public institutions, which, depend or receive directly or indirectly financial assistance from them, help in verifying budgets of communities and their public institutions, through advice, formal notice or proposals, under certain circumstances, and according to procedure set by the law. The Decree of 23rd August 1995, has updated the organisation and functioning of the regional audit offices and has introduced the system of hearing before open court for imposing fine on public accountants.

A regional chamber of Audit has jurisdiction over all territorial communities in its region. The income of a community or its expenditure can be collected/paid for by public accountants (Tax Collector for instance) who submit their annual accounts along with documentary evidence to competent financial authorities. They give financial and personal guarantee.

Whenever there is an irregular expenditure or failure to recover tax, the judge of the regional Audit Chamber can make use of this guarantee.

Tasks of Regional Audit Chambers

The regional Audit Chamber may at times have cause for giving its opinion on the conditions of adoption and implementation of the budgets that communities and local public institutions adopt every year.

As for the implementation of the budget, it shall pass judgements on the regularity of accounts. This is known as jurisdictional verification. It shall make observations on how the person who authorizes payments manages the funds. This is part of its power to check management.

Verification of Budget Laws

The head of a prefecture may refer budget related decisions to the regional audit office. Here the audit chamber has only administrative powers and no jurisdictional powers. This is an original task within the gambit of financial powers. This procedure of referring certain cases to the regional audit office takes place without delay; It is a transparent procedure. When referred to by the prefect the regional audit office may review some categories of acts (conventions on delegation of public service) passed by the local communities.

Jurisdictional Control

Jurisdictional Control is the first task of the regional audit chamber, which justifies their status of jurisdiction. The audit chamber verifies if the revenue and expenditure related operations undertaken by the public accountants are regular. This is a compulsory procedure. The regional chambers control and pass accounts through judgements, whether or not the accounts contain irregularities. The verification procedure aims at checking not only the accounts but also whether the accountant has carried out all the verifications he has to carry out, especially as regards the source and amount of revenue and expenditure, and that he has not through his negligence harmed the interests of the community. These checkings are done on the spot and also upon presentation of documentary evidence.

Judgements are given after a procedure of open hearing. The final decision either acquits the accountant or orders him to pay back a sum wrongly collected.

Audit Office. The decisions of the latter may be contested before The Counseil d'Etat.

Management Control

The regional chamber of audit has the power to control management of communities or local public bodies. It verifies if there are any irregularities in the management by expenditure sanctioning authority or by the managing authority and also the efficiency of management.

Whereas the accountant is compelled by judgement to bear personally the financial consequences of an irregularity, the sanctioning authority is only made to take note of the points raised by the Chamber through a letter of observations. Only when the assembly deliberates on it in its next meeting, it can be communicated to a Third Party.

The task of the audit chamber extends also to a qualitative appreciation of management. Thus it may participate in the evaluation of local public policies.

The regional audit chamber thus helps to promote a regular and efficient management. It helps in preserving financial interests of the community or body.

The Link between the Audit Office and the Regional Audit Chamber

There are functional and institutional links between the Audit Office and the regional audit Chambers.

Bodies Associated with the Audit Office:

These are known as associates because their work is an extension of the work of the Audit Office in the following fields:

Three of them are presided over by the Premier President of the Audit Office. several members and supporters of four of these bodies are from among the magistrates of the State Office.

Court of Financial and Budgetary Discipline

The main task of the Court is to bring to book civil servants, army officials, members of cabinet and agents of public institutions, local communities and social security organisations whenever they trespass against budgetary and accountability laws.

Members of the government and elected authorities do not come under its jurisdiction.

Since 1995, it has the power to punish sanctioning authorities' lapses and irregularities in management.

It has, other than the Premier President of the Audit Office, President of the Finance Department of the Council d'Etat, two State Counselors, two senior commissioners of the Audit Office. The duties of Public Prosecutor are carried out by the Public Prosecutor of the Audit Office.

It may impose fines the amount of which may in some cases be equivalent of or double the annual gross salary of the official found guilty.

The Council in charge of Taxes

It shall record the distribution of tax burden, take note of changes in it, taking into account the economic and social characteristics of the concerned taxpayers. It has ten members, two State Counselors, two senior Commissioners of the State Audit office; two counselors of the Supreme Court of appeals, two Inspector generals of Finance, a Professor of Public Finances, and an Inspector General from INSEE.

Central Investigating Committee on Costs and Performance of Public Services

It shall identify and propose appropriate measures to reduce cost, to improve the quality and performance of Cabinet services, public institutions, communities, and any other public service organisations.

It is attached to the Prime Minister's office. It is presided over by the Premier President of the Audit Office and has 30 members including four members of Parliament, local elected representatives, Senior-officials, Civil Service Union representatives.

It communicates the findings of its investigations through special reports to concerned ministries and through a comprehensive report which are sent to the Government and the Parliament.

Commission for Issuing FEOGA - Guarantee Certificate

It has 5 magistrates from the Audit Office and has to certify the accounts of bodies which pay for expenses financed by the European Fund for agricultural Orientation and guarantee (FEOGA), under the Guarantee Section. Members of the Commission are assisted by four special rapporteurs, two magistrates or rapporteurs of the State Audit Office and two others proposed by the ministers in charge of budget and agriculture.