under audit to the observations of the Court of Auditors, and any relevant special reports by  the Court of Auditors  

2. Before giving a discharge to the Commission, or for any other purpose in connection with  the exercise of its powers over the implementation of the administrative budget, the European  Parliament may ask to hear the Commission give evidence with regard to the execution of  expenditure or the operation of-financial control systems. The Commission shall submit any  necessary information to the European Parliament at the latter's request.

3. The Commission shall take all appropriate steps to act on the observations in the decisions  giving discharge and on other observations by the European Parliament relating to the  execution of expenditure, as well as on comments accompanying the recommendations on  discharge adopted by the Council.

At the request of the European Parliament or the Council, the Commission shall report on the  measures taken in the light of these observations and comments and in particular on the  instructions given to the departments which are responsible for the implementation of the  administrative budget. These reports shall also be forwarded to the Court of Auditors.

Article 78h ( * )

( * ) As amended by Article H(18) TEU.

The Council, acting unanimously on a proposal from the Commission and after consulting the  European Parliament and obtaining the opinion of the Court of Auditors, shall:

a. Make Financial Regulations specifying in particular the procedure to be adopted for  establishing and implementing the administrative budget and for presenting and auditing  accounts;
b. Determine the methods and procedure whereby the budget revenue provided under the  arrangements relating to the Communities' own resources shall be made available to the  Commission, and determine the measures to be applied, if need be, to meet cash  requirements;
c. Lay down rules concerning the responsibility of financial controllers, authorizing officers  and accounting officers, and concerning appropriate arrangements for inspection.

Article 78i ( ** )

( ** ) As inserted by Article H( 19 ) TEU.

Member States shall take the same measures to counter fraud affecting the financial interests  of the Community as they take to counter fraud affecting their own financial interests.

Without prejudice to other provisions of this Treaty, Member States shall coordinate their  action aimed at protecting the financial interests of the Community against fraud. To this end  they shall organize, with the help of the Commission, close and regular cooperation between  the competent departments of their administrations.

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