Financial management of the European Union : a progress report

Each year the NAO reports to Parliament on the financial management of EU funds, based on the audit by the European Court of Auditors.

This report examines the findings for the financial year 2002 and reviews key developments and policies to strengthen financial management and control of the EU budget.

It also summarises reported rates of fraud and irregularities, and considers the financial control implications of EU enlargement to 25 countries, embracing 450 million people.

Findings include that, for the ninth year in succession, the Court qualified its opinion on the reliability of the Community's accounts, noting the persistent weaknesses of the Commission's accounting systems.