Our Federal Constitution mandates that public organizations and entities of our Country are subject to the internal control of each Branch of Power, as well as to the external control exercised by the National Congress, with the support of the Brazilian Federal Court of Accounts in conducting accounting, financial, budgetary, operational and property audits and inspections to verify the legality, legitimacy, and sound business practices, as well as verifying the application of aid, subsidies and revenue waivers.
Based on the principle of submission to internal and external controls, the sole paragraph of article 70 of the Brazilian Constitution, modified by Constitutional Amendment no. 19, of 1998, states that any individual or public or private legal entity who uses, raises, guards, manages, invests or administers federal public funds, assets and valuables or those which are under Union responsibility, or who take on pecuniary obligations on behalf of the Union must report to the Court.
The Serzedello Corrêa Capacity Building InstituteThe internal control of each Branch of Power constitutes, in a way, an imposition of administrative de-centralization, allowing its directors an evaluation mechanism for activities performed outside the sphere of their specific attributions. External control is, in turn, exercised by the Legislative. At the federal level, the task is ascribed to the National Congress through the joint action of the House of State Representatives and the Senate. To carry out this attribution of external control, the National Congress engages the help of the Brazilian Court of Audit and, as a result, the Court becomes the Union's operative body of external control par excellence. The constitutionally established internal and external controls, along with the ever present possibility of judgment by the Judiciary, over damage or menace to proper conduct, are the instruments available to the Brazilian State to promote and encourage transparency, probity, and efficiency in the administration of the res publica.
Functions
Consulative Function
The consultative responsibility is conducted through the preparation of previous and individualized opinions, essentially technical in their nature, on the rendering of accounts performed annually by the heads of the Executive, Legislative, and Judiciary and of the Federal Department of Justice, in order to provide Congress with subsidies for its adjudication of such accounts, as is its attribution.
It also includes the examination of inquiries submitted by authorities entitled to formulate them, who posit questions about legal and normative provisions related to matters under the responsibility of the Court.
Corrective Function
Upon discovering an illegality or irregularity in any public organization or entity's administrative act, the Court sets a deadline for it to comply with the law.
If an administrative act is in question, and there is no compliance, the Court orders the cessation of such act. If a contract is in question, it is under the Congress' authority to cause those so entitled to take the necessary legal steps to cease and curtail the act. In the event Congress or those so entitled fail to implement the necessary measures within ninety days, the decision is taken by the Court.
Educational Function
The Brazilian Federal Court of Accounts performs its educational function by teaching best practices in management, through the publication of workbooks and manuals, sponsorship of seminars, meetings and gatherings of an educational nature, through its participation in lectures, conferences, and workshops, and also when it recommends the implementation of certain practices as a result of its operational audits.
The educational character is also present when sanctions are applied to those responsible for irregularities or practices that result in loss to the public treasury, because such penalties act in a way that inhibits and discourages such practices.
Information Function
The information responsibility is exercised by providing information requested by the Congress, by one of its Chambers, or by their Committees, with respect to the verification activities conducted by the Court. It also includes presenting, to the appropriate Branch, findings of irregularities or abuses, as well as submitting quarterly and annual activity reports to Congress.
Inspecting Function
This responsibility entails survey, auditing, inspection, follow-up and monitoring activities pursuant to its external control attribution. It involves an evaluation of the legality of acts that grant retirements and pensions, and the selection of personnel for Federal Public Service, as well as the inspection of revenue waivers and of administrative acts and contracts, in general.
Judicative Function
According to the Constitution, the Court audits and judges the accounts of administrators and others in charge of public funds, assets and valuables pertaining to the direct or the indirect administration, including foundations and institutions created and maintained by the Federal Public Authority, as well as the accounts of those who may cause loss, misplacement or other irregularity that results in losses to the public treasury.
In response to requests by a Joint Committee of Senators and Representatives, the Court also issues conclusive opinions about suspicion of unauthorized expenditures. On finding these to be improper, it proposes their cessation to the Congress.
Approximately 2,600 federal organizations and entities regularly submit their accounting to the Court's evaluation. Additionally, with respect to funds supplied by the Federal government, the Municipalities, States, and the Federal District are also under the Court's jurisdiction. These add up to over 5,600 units.
Accounts may be found to be:
Regular – when they reflect exactly the accounting documents and demonstrate the legality, legitimacy and financial soundness of the acts of the party in charge. In such cases, the Court awards a statement of full compliance.
Regular with reservations – when the accounts contain inappropriate characteristics or any type of fault that does not result in loss to the public treasury. In this case the Court declares approval of the responsible party and routinely directs same to correct the faults.
Irregular – when one of the following instances is confirmed: failure to submit accounting for approval; performance of an administrative act that is deemed illegal, illegitimate, unsound or not in compliance with legal or statutory norms; losses to the public treasury resulting from illegitimate or unsound administrative act and embezzlement or misappropriation of public funds, assets or valuables.
When accounts are deemed irregular and an amount is owed, the Court demands that the responsible party pay the debt updated according to inflation, with applicable fines added.
By decision of the Electoral Justice, the party responsible for an account deemed irregular may become ineligible for running for an elective office.
The Court's judgment determining a debt and application of a fine constitutes a legally enforceable debt.
Whenever accounts are judged irregular as a result of loss to the public treasury due to embezzlement or misappropriation of public funds, goods, or valuables, the Court refers the case, with corresponding documentation, to the Federal Department of Justice to commence applicable civil and criminal proceedings.
The Brazilian Federal Court of Accounts holds exclusive authority over evaluating and judging the accounting of those who have responsibility for public funds and its decisions are not subject to review by any other institution, Branch of government, or jurisdiction, except in the event of a nullifying act resulting from a serious formal breach or confirmed illegality, in the exclusive judgment of the Supreme Court of Brazil.
Normative Function
The Court's prerogatives established by law give it the power to issue normative instructions and acts (that is, generating the obligation of compliance under penalty), regarding matters within its jurisdiction and attributions and the production of the actions at law to which it is entitled.
Ombudsman Function
This function represents the possibility for the Court to receive denunciations and petitions regarding irregularities and illegalities brought to it by those responsible for internal controls, or by authorities, common citizens, political parties, associations, or labor unions. This function is therefore of utmost importance in strengthening the rights of citizens and in defending the collective interest. It also plays an important role in encouraging collaboration with the implementation of control.
Sanctioning Function
Sanctions are applied to those responsible for illegalities in expenditures or irregularities in accounts according to the sanctions established by the Organic Law of the Court (Law nº 8443/1992).
Singularly or cumulatively, such sanctions may entail: (1) application of a fine upon the public agent in an amount proportional to the loss caused to the public treasury provided that the penalty is not greater than the amount of the loss; (2) sanction to fine the person responsible for accounts judged to be irregular, for an irregular, illegitimate, or financially unsound act, for refusal to submit to a directive or determination of the Court, for obstruction of the free conduct of inspections or audits, and for concealment of a process matter, document or information; (3) barring the responsible person from holding a special advisory position or function within the public administration, for a period of five to eight years; (4) declaring the responsible person unfit due to lack of integrity to participate, for up to five years, in bidding processes conducted in the public administration sphere.
Mission, Vision, and Values Statement
Business - the external control of public administration and of the management of federal public funds.
Vision - to be a reference in the promotion of an effective, ethical, timely and responsible Public Administration.
Mission - to improve public administration for the benefit of society through external control.
Values - ethics, justice, effectiveness, independence, and professionalism.
