Audit and Controls

EIF’s principal audit and control mechanisms include both internal and external auditors, the activities of which are coordinated by the Audit Board.

The role of Internal Audit in EIF is to examine and evaluate the relevance, design and effectiveness of EIF’s internal control systems and procedure. Internal Audit provides EIF’s management with assurances, analyses, agreed action plans or recommendations, as appropriate, concerning the activities reviewed, with a view to adding value and improving EIF’s operations where necessary. EIF’s Audit Board is responsible for the coordination of activities by the external auditor and Internal Audit. The framework defining the mission, scope and procedures associated with Internal Audit’s mission is defined in the Internal Audit Charter.

For the purpose of the above, EIF has contractually agreed with EIB that the Internal Audit functions of EIF will be performed by EIB’s Internal Audit service.

In addition, as both a European Union body and a financial institution, EIF cooperates with other independent control bodies such as the Internal Audit of the European Commission and the European Court of Auditors entrusted with such tasks under the Treaty or other regulations. The European Court of Auditors is responsible for examining the accounts of all revenue and expenditure of the European Union and the results of its audits are published. Whilst EIF has its own independent external audit structure, the deployment of EU resources under EIF management, is also subject to control by the European Court of Auditors.

In relation to the European Commission's shareholder participation in EIF, the Court of Auditors operates within a specific tripartite agreement providing a framework for the audit of the participation's value. The Audit Board annually confirms that, to the best of its knowledge and judgement, the operations of the Fund have been carried out in compliance with the formalities and procedures laid down in the Statutes and the Rules of Procedure, and that the financial statements give a true and fair view of the financial position of the Fund as regards its assets and liabilities, and of the results of its operations for the financial year under review. This information is included in the Annual Report submitted by the Board of Directors to the General Meeting.