Project audit(s) Sandra DELESPESSE- EACEA
Content
• Submission of final report to receive your final payment – financial documents • Checks, audits and evaluations
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Financial documents to be submitted together with your Final report
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What do you need to submit your Final Report? The Final Report must include the following financial documents : • the annex III + the list of invoices • the Report of Factual Findings on the Final Financial Report – Type I/II or the list of supporting documents • the electronic version of Annex III and the List of Invoices If not, the final report will be rejected! 4
Which are the audit procedures on Final Financial report? • Report of Factual Findings on the Final Financial Report "Type I" 60.000,00 € < Action Grant < or = 750.000,00 € • Report of Factual Findings on the Final Financial Report "Type II" Action Grant > 750.000,00 €
List of supporting documents Action Grant < or = 60.000,00 € 5
What is the assignment to be performed by the auditor? Audit "Type I"
Pre-set checks: the auditor will limit its checks to the supporting documents and the accounting movements detailed after:
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What is the assignment to be performed by the auditor? Audit "Type I" The auditor's role is limited to reporting whether: • All costs as well as all receipts are justified by the relevant supporting documents; • All costs are incurred in the eligibility period; • Expenses incurred in a currency other than Euro have been converted; • The beneficiary has complied with the rules for accounting and record keeping; • Sub-contracting and procurement costs comply with the related provisions set by the Grant Agreement. 7
What is the assignment to be performed by the auditor? Audit "Type II" Eligibility check: similarly to checks performed by the expost audit, this procedure focused on the compliance of the eligibility of costs with the provisions of the Grant Agreement.
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What is the assignment to be performed by the auditor? Audit "Type II" The auditor: • Reports on the eligibility of costs by carrying out the procedures set in the guidance (and formalised in the engagement letter); • Confirms the legal status of the beneficiary and co-beneficiaries and accordingly, the correct treatment of VAT; • Verifies that amounts of expenditure incurred in a currency other than the Euro have been converted. • Examines whether the beneficiary has complied with the rules for accounting and record keeping; • Confirms the amount of revenues declared in the Final Financial Report. 9
Which percentage of total expenditure must be verified by the auditor? "Type I" audit
"Type II" audit
In principle 100 % of the direct costs declared by the beneficiary in the Final Financial Report.
Between 70 % and 85 % of the costs declared by the beneficiary in the Final Financial Report.
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Which auditor is allowed to perform the audit? • Any accountant that under the national legislation is recognized as auditor. The external auditor must be qualified to carry out statutory audits of accounting documents.
• For public bodies: Competent Public Officer.
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Would it be acceptable to have several audit certificates produced by different auditors which certify individually the eligible costs incurred by each co-beneficiary? No, it is the coordinator's responsibility to select and contract the auditor as the financial management of the action/work programme is one of the key tasks of the coordinator.
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Can the coordinator's competent public officer certify also the co-beneficiaries costs? In order to produce an audit certificate accompanying the Final Report, public bodies have the right to choose either an external auditor or a competent public officer. The coordinator's competent public officer is allowed to certify also the co-beneficiaries costs.
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Which is a price range that can be considered reasonable? Estimated ranges for audit "Type I" by level of claimed expenditure (only for Europe).
NB: these estimate prices can vary according to the geographical region, the size of the firm realising the verification and the number of transactions required to be verified. 14
List of supporting documents Only for Action Grant < or = to 60.000,00 €
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List of supporting documents Systematically requested for the three following budget items: 1. Staff costs: employment contract, payslips, proof of payments and the time sheets or equivalent documents showing the manpower’s work effort (i.e. number of working days) 2. Subcontracting: contracts, invoices and proofs of payments. 3. Travel and subsistence: copy of tickets and boarding passes, hotel invoices and proof of payments.
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Why implement this new audit procedure? • To reduce the processing time of the analyse of the final report by reducing the request of additional information. • To give you confidence about the final result.
• To give us assurance for the expenses. • To avoid bad surprise when an audit is carried out.
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Checks, audit and evaluation
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Technical and financial checks, audits, interim and final evaluations • Checks and audits in relation to the use of the Grant. • Interim or final evaluation of the impact of the action. May be carried out either by the own staff of the Agency and/or Commission or by another body authorised to do so on its behalf.
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Obligation to keep documents Keep: • all original documents, including accounting and tax records (copies are accepted for co-beneficiaries costs) • bank statements payments)
of all
payments made (avoid cash
• all documents for: – a period of 5 years for Grants > 60.000,00 € – a period of 3 years for Grants < or = to 60.000,00 €
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Obligation to provide information and on-the spot visits The concerned coordinator or the beneficiary shall: • provide any information requested by the Agency and/or Commission or any other outside body authorised by it. • allow them to have access to the sites and premises.
If not, the costs will be considered as non-eligible! 21
Audit procedure and effects of audit findings Agency, Commission or authorised representative
Draft audit report (1) Beneficiary 30 days to submit observations (2)
Final audit report within 90 days (3)
Recovery order
Payment
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Any questions?
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