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Commission Report 2002 (Hungary)

Chapter 28: Financial Control

The managerial accountability in budget spending centres needs to be further enhanced. The administrative framework for internal audits at the level of internal audit services in budget spending centres has to be further strengthened and their functional independence still needs to be ensured. As regards the protection of the Communities' financial interests, an anti-fraud co-ordinating service has been established inside the Ministry of Finance, and a Standing Inter-Ministerial Committee has been set up in order to facilitate co-operation with other Hungarian institutions. However, neither body is fully operational yet. The measures foreseen in the Action Plan to further reinforce the legislation in order to strengthen the fight against fraud, notably in the area of VAT are scheduled for 2003, so no progress can be reported at this stage. Efforts to ensure the correct use, control, monitoring and evaluation of EC pre-accession funding have been made as scheduled in the Action Plan. Thus, the priorities in the field of financial control have only partially been met. However, implementation of the Action Plan is mainly on track.

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