TCU stands for court Union accounts, a government institution that oversees accounting, budgetary, financial, operational movements and assets belonging to public administration entities of the Union.
TCU is responsible for judging, inspecting, informing and correcting all information pertaining to federal money and public goods, as well as helping the National Congress to develop annual fiscal and budget planning.
However, the main objective of the Federal Court of Accounts is to control the legitimacy, legality and economy of all money and public goods, ensuring that they are used for the purpose of meeting the common interests of the population.
If there are irregularities and illegal activities by the management of any public agency, deals directly or indirectly with the national treasury, the TCU provides a deadline for the law to be fulfilled.
Otherwise, when the administrative act is challenged, the Federal Court of Accounts acts with a corrective function, forwarding the process to the STF – Federal Supreme Court.
Learn more about the meaning of Public Treasury.
TCU and the "tax pedaling"
An example of irregularity that must be monitored by the TCU is the so-called "tax pedaling", which consists of the delay in the transfer of money from the National Treasury to public and private financial institutions that finance government projects, such as social and social security benefits.
With this delay, the government would have, momentarily, a relief in the budget of its accounts, but at the same time it would increase the its debt with the banks, which used their own resources to pay off program commitments social.
With this maneuver, considered a tax liability crime, the government managed to deceive the financial market, implying that the federal accounts were improving.
According to TCU, between 2012 and 2014, the Brazilian government would have involved around R$ 40 billion in the “fiscal pedaling” scheme.
Learn more about the meaning of fiscal pedaling.
Organization and functioning of TCU
The Federal Court of Accounts is a collegiate body, made up of nine ministers, six of whom are appointed by Congress National, one nominated by the President of the Republic and two chosen by the Public Ministry, which works together with the TCU.
TCU is considered an autonomous and independent body, not answerable to any of the three branches (Executive, Legislative or Judiciary). The responsibilities of the Federal Court of Accounts are provided for in article 71 of the Brazilian Constitution.
TCU is also composed of secretariats, where employees must be chosen from public tender, performing technical and specialized functions, according to the specialty of the position.
In addition to inspecting and monitoring, TCU also acts with an educational character. Every citizen, political party, association and union can report complaints of irregularities from any entity or public body to TCU.
