European Commission: Accounting Framework and Systems

HL Deb 18 February 2003 vol 644 cc169-70WA

Lord Beaumont of Whitley

asked Her Majesty's Government:

What steps they are taking to help ensure that the accounts of the Commission of the European Union are kept in such a way that they can be successfully audited. [HL1473]

Lord McIntosh of Haringey

The Government agree with the European Court of Auditors that the Commission's accounting framework and systems are in need of reform. A major instrument to achieve this is the new Financial Regulation, which came into force in January 2003 and which the UK Government played a leading role in shaping. It requires general accounts and financial statements to comply with internationally accepted accounting principles. The Commission has now submitted a timetable for implementing the reform of its accounting framework and supporting IT systems: these are to be in place by 2005 as required by the Financial Regulation. When he reforms are complete, the accounts will be on an accruals basis and contain the information on assets and liabilities, including contingent assets and liabilities for which the European Court of Auditors has called. The Government will monitor this project closely and the Commission has promised to provide member states updates of progress every six months.