What is understood by “sound financial management”?
The principle of sound financial management is defined in Article 27 (1, 2) of Council Regulation (EC, Euratom) No 1605/2002. This regulation says: “That the budget shall be spent “in accordance with the principles of economy, efficiency and effectiveness. The principle of economy requires that the resources used by the institution for the pursuit of its activities shall be made available in due time, in appropriate quantity and quality and at the best price. The principle of efficiency is concerned with the best relationship between resources employed and results achieved.
