The Court of Auditors was created in 1999.
It checks the financial management of the state's bodies, administrations and services. Established by the Constitution as a permanent control instrument, it keeps an eye on public legal persons (municipalities and public institutions) as long as they are not subject to other financial controls provided for by law. Private legal persons are also subject to the control of the Court of Auditors if they use public resources.
The Court of Auditors is the 'Parliament's Eye', and is independent from the executive power, but dependent on the Chamber of Deputies with respect to how it appoints its members and performs its duties. For each vacant post, the Chamber presents a list of three candidates to the Grand Duke, who appoints one of them. The Court of Auditors is composed of five members, namely a president, a vice-president and three councillors. The members of the Court are appointed for six years; their nominations are renewable.
The Court of Auditors may be consulted by the Chamber on parliament or government bills which have a significant financial impact on the Treasury. It then gives an opinion on the provisions of the budget law and on parliament bills or government bills on state accounting and the accounting of public legal persons. The Court of Auditors also audits all the political parties' accounts and balance sheets, which are submitted to it by the president of the Chamber of Deputies.
As an external auditor, the Court of Auditors also examines whether all revenue has been received and all expenditure incurred in a lawful and proper manner, and ensures the good financial management of public funds. Audits carried out by the Court of Auditors check the cost-effectiveness, efficiency and effectiveness of public spending. This control is immediate and permanent in that the Court informs the Chamber of any failure to comply with the law, without even waiting for the presentation of the accounts.
The Court decides at its own initiative on the date and method of its audits which are carried out either on the spot, or remotely. Any document or information which the Court of Auditors deems necessary in order to accomplish its task must be submitted to it at its request. During audits, it shall make all arrangements to ensure the confidentiality of its investigations.
Each year the Court of Auditors publishes a general report on the state's accounts which is submitted to the Chamber of Deputies. Moreover, at any time, either at the request of the Chamber of Deputies or on its own initiative, the Court can present its findings and recommendations on specific areas of financial management in a special report.
The members of the Court of Auditors are assisted by 35 officials in order to carry out their duties. The Court of Auditors may also call on external experts who work under the control and responsibility of the Court.