The European Commission will ring in 2005 with a new accounting system following criticism in the past that the current system is easily open to fraud.
On 1 January, the Brussels executive will switch from a cash to an accrual accounting sytem in a bid to crackdown on fraud.
The new system was agreed in 2002 following accusations by former Commission chief accountant Marta Andreasen that the executive lacked a basic accounting system leaving it wide open to cheating.
Mrs Andreasen was subsequently suspended for going public with her allegations but most of her suggestions were incorporated into the new reforms.
Under the new regime the internal control of accounting data has been improved and EU officials are to be more thoroughly trained.
One of Mrs Andreasen's main complaints was that there was no central system for monitoring pay outs of EU money.
The change over to the new system has been run by Brian Gray, as Accounting Officer in the Commission, since 1 January 2003.
By: N. Peter Kramer
