Posted on 12/30/2004, 3:40:57 PM by SunkenCiv
The new system was agreed in 2002 following accusations by former Commission chief accountant Marta Andreasen that the executive lacked a basic accounting system leaving it wide open to cheating. Mrs Andreasen was subsequently suspended for going public with her allegations but most of her suggestions were incorporated into the new reforms... One of Mrs Andreasen's main complaints was that there was no central system for monitoring pay outs of EU money.
(Excerpt) Read more at euobserver.com ...
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What the hell!? Asking
a government to account
for its use of cash
costs everybody!
Because then the government
must hire accountants
to juggle the books!
And those kind of accountants
get good salaries . . .
All they say in the article is that they switched to the accrual method of accounting. While that's important, accrual accounting is not a system of internal controls. If ever there was an organization that needs to meet Sarbanes-Oxley (US law) requirements, it's the EU (and the UN of course). Where is the oversight? Who are the independent auditors? From the only action that the article mentions (the suspension of the whistle blower), I'd say this is a high risk environment extremely vulnerable to fraud and misuse of cash.
Kok: Europe should not 'copycat' US
EUobserver | 5/11/2004 | Richard Carter
Posted on 11/05/2004 11:28:58 PM PST by SunkenCiv
http://www.freerepublic.com/focus/f-news/1272542/posts
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