The Netherlands Court of Audit (Algemene Rekenkamer) is an independent High Council of State, consisting of a Board which is made up of a President and two members. The members of the Board are appointed for life by Royal Decree.
Members of the Board are appointed by the Queen. The decision is prepared by both the Board and Parliament. Out of a number of candidates the Board selects six persons. The Board draws up a list with six names which is submitted to the Lower House. The Lower House submits a list with the names of three persons to the Cabinet, which nominates one of those as a new Member. Out of the three Members a President is appointed by the Queen on recommendation of the Cabinet. The appointment as a Board Member is made for life. In practice this means retirement at the age of 70.
In Chapter 4 of the Governments Accounts Act the tasks and authorities of the Netherlands Court of Audit is described. According to this Act the President bears responsibility for the supervision of the work of the Netherlands Court of Audit, and ensures that all documents sent to the Netherlands Court of Audit or to her in her capacity as its President are considered by the Board in session, unless they are excluded from such consideration by the standing orders.
Moreover a Secretary-General is appointed by Royal Decree on the recommendation of the Netherlands Court of Audit. He advises the Board and heads the professional organisation. The organisation comprises of five directorate:
The three audit directorates consist of audit bureaus, organised according to the ministries. These bureaus conduct the audits .
In carrying out its various audit functions, both in the areas of financial and performance audit, the Court aims not just to report on 'things going wrong', but rather to contribute in a constructive way to a more efficient and effective performance of the Government. The Netherlands Court of Audit thereby strictly adheres to the principle of' hearing both sides', i.e. before publishing its findings, conclusions and recommendations, it will discuss these with responsible authorities and include their comments in its report.
Through the years the Court has obviously gathered a vast experience in financial audit, while continuously adjusting and refining its audit approach, an approach which nowadays includes e.g. risk analysis and systems approach as indispensable instruments. The budget of the Netherlands Court of Audit is provided by the Ministry of the Interior and Kingdom Relations and approved by Parliament. The Internal Audit Directorate of the Ministry of the Interior and Kingdom Affaires acts as an external accountant.
In addition the Court has, for many years now, a legal mandate to carry out performance (or value-for-money) audits, which result in regular reports to Parliament on the economy, efficiency and effectiveness of the Governments' management and activities.
Each year a new work programme is established. The development of the (audit) Working Programme of the Netherlands Court of Audit is a mixture. Top down there is the (strategic) Programme 2000-2004 of the Board. Bottom up within this framework the audit bureaus monitor the audit field. As a result of this monitoring the audit Directors draft a programme with a proposal for the audit- and development projects to be performed. This proposal is discussed with the Board. Subsequently a draft Working Programme is developed in co-operation with the audit bureaus and presented to the Board for final approval.
The Netherlands Court of Audits decides independently on the audits to be done. Parliament and Government may request for audits, but the Court decides on its implementation.
The Netherlands Court of Audit is member of EUROS AI.
Since 1992 the Netherlands Court of Audit is chair of the INTOSAI Working Group on Environmental Auditing. Moreover the Netherlands Court of Audit is member of the following INTOSAI working groups and committees:
Besides of that the Netherlands Court of Audit is fulfilling a role in the IDI-project as an IDI-satellite, responsible for arranging donor funding in The Netherlands as well as participation hi the regional training program by cooperating with the regional partners on project management level and supplying technical training expertise.
The Netherlands Court of Audit is one of the older institutions at the central level in the country and exists in its present format already for 187 years. It derives its statutory base from the country's Constitution, which stipulates that the Court of Audit examines the State's revenues and expenditures and approves its Final Accounts. While being completely independent, the Court reports both to Parliament and to the Government.