the EU bank

The creation of the Inspectorate General (IG) underlined the importance attached by the Management Committee to the main independent ex post control functions:

• Internal Audit,
• Operations Evaluation, as well as
• Fraud Investigations.

In particular, the new structure reflects the contribution of evaluation activities to the attainment of the Bank’s strategic objectives and their positive impact on operational performance, accountability and transparency.

Internal Audit is responsible for catering for audit needs at all levels of management of the EIB Group and acting with the guarantees of independence and professional standards conferred upon it by its Charter.

It examines and evaluates the relevance and effectiveness of the internal control systems and the procedures involved. Internal Audit has implemented an Internal Control Framework (ICF) based on BIS guidelines. Internal Audit reviews and tests controls in critical banking, information technology and administrative areas over a two to five-year cycle. The Bank maintains a single repository of operational risk exposures and internal controls that is owned by the Directorates. The annual certification letters from the Directors General to the Secretary General, which form the basis for the annual letter of representation signed by the Secretary General and the Financial Controller to the external auditors, are supported by individual ICF reports and annual updates, by any audit reports issued during the year and by the annual operational risk exposure report.

Operations Evaluation carries out ex post evaluations and ensures transparency vis-à-vis the EIB's governing bodies as well as interested outside parties by carrying out thematic, sector and regional/country evaluations of projects financed by the Bank once they have been completed.

Fraud Investigations (IN) is an independent unit within IG, reporting to the Inspector General. Its function is to investigate allegations of staff misconduct relating to fraud or corruption and allegations of fraud and corruption relating to the EIB Group's projects, loans and investments, which may, for instance, involve bidders, contractors, subcontractors, government officials, fund managers or EIB Group staff.

The Inspectorate General and Fraud Investigations also works in close cooperation with the European Anti-Fraud Office (OLAF) and publishes an annual report on its investigations like the Investigation authorities at other International Financial Institutions.