Chapter 32 concerns adoption of internationally recognized frameworks, standards and good practices at EU level on public internal financial control (PIFC).
PIFC is based on the principle of decentralised managerial accountability and should be applied across the entire public sector. PIFC is comprised of internal control of financial management of national funds and of EU funds.
The acquis under Chapter 32 requires all member-states to have efficient and transparent management systems in place, which include arrangements for:
- accountability for achievement of objectives;
- functionally independent internal audit;
- relevant organizational structures, including central coordination for PIFC development in the public sector.
Alignment with Chapter 32 concerns the need for institutionally, operationally and financially independent external audit institution. This institution should implement its audit mandate in compliance with standards of the International Organization of Supreme Audit Institutions (INTOSAI), and should present its reports on use of public sector resources to the parliament.
In addition, this chapter includes protection of the EU’s financial interests against fraud in management of EU funds and protection of the euro against counterfeiting.