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Control systems

Reporting on Internal Control

The Commission decided to revise its internal control arrangements as part of the Financial Reform of 2000. This reform resulted in the empowerment of Authorising Officers by Delegation as regards financial management and internal control. With the power came responsibility and fresh obligations notably to provide assurance to the Commission on the management of activities via ‘Annual Activity Reports’ (AARs).

Every year all the Authorising Officers by Delegation in the Commission and its Executive Agencies report on the effectiveness of their internal control systems in the AARs. Assessment of the effectiveness of the EC internal systems, based on information from the AARs, is included in the Annual Management and Performance Report for the EU Budget (Deutsch English français with annex).

The Commission’s framework was developed specifically for its environment. It is based on international good practice and inspired by the COSO1 framework.