Bundesrechnungshof

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Seat of the Federal Court of Auditors in Bonn

The Bundesrechnungshof (Federal Court of Auditors; also Federal Audit Office) is the supreme federal authority for federal audit matters in Germany. There are equivalent bodies at state level. The status of the Bundesrechnungshof, its members and its essential functions are guaranteed by the German Constitution (art. 114 section 2 of the Basic Law), and regulated by other legislation (i.e. Bundesrechnungshof Act, Federal Budget Code). It is an independent judicial body, with around 600 employees.

The Bundesrechnungshof examines the financial management of the federal government, its various property funds and state-owned companies, carrying out sample audits of revenue and expenditure totalling over 500 million Euros. Its audit mandate also covers social security institutions and the activities of the federal government in private-law enterprises of which it is a shareholder. This includes areas such as defence, roadworks, taxation, and the federal government's activity as a minority shareholder of the formerly nationalised railways, post, and phone companies (Deutsche Bahn AG, Deutsche Post AG and Deutsche Telekom AG respectively).

The Bundesrechnungshof makes recommendations on the basis of its audit experience and provides advice to the audited bodies, to the German Parliament and the Federal Government. Its consulting activities have steadily increased and set out significant recommendations for quality improvement, pointing out the potential for savings or increases in revenue.

The Bundesrechnungshof reports on its audit findings in management letters which are sent to the audited bodies for comment. In addition the Bundesrechnungshof submits an annual report ("Observations") to both Houses of the German Parliament, the Bundestag and the Bundesrat, as well as to the Federal Government. The annual report is also used as a basis for Parliament authorising the Federal Government's budget. The annual report is presented to the public at a federal press conference. The Bundesrechnungshof may at any time submit special reports on matters of major significance to both Houses of Parliament, and to the Federal Government.

The Bundesrechnungshof does not only provide advice to the executive and legislative branches by including recommendations for improvement in its management letters and annual reports, but also by commenting - orally or in written form - on topical issues such as government bills and major procurement projects, or in the course of the annual budget procedure.

By virtue of legislation regarding German reunification the Bundesrechnungshof's new headquarters have been transferred from Frankfurt am Main to Bonn, effective 1 July 2000. The Bundesrechnungshof also has a branch office in Potsdam.