A report on the verification of the Action’s expenditure, produced by an approved auditor who meets the specific conditions of the Terms of Reference (ToR) for the expenditure verification (Annex VII), must be attached to any request for pre-financing payments per financial year in case of any request for further pre-financing payments in case of grants of more than 5,000,000 € and for any final report in case of a grant of more than 100,000 euro.
The expenditure verification is a sound proof that the expenses reported on the standard financial report correspond to the partner accounting and bookkeeping system and to underlying accounts and records.
The auditor verifies that the funds provided by the grant were spent in accordance with the terms and conditions of the grant contract and that the different procedures were respected. He examines whether the costs declared by the partner are real, accurately recorded and eligible in accordance with the Contract, and issues an expenditure verification report.
The Grant Beneficiary should annex to the ToR of the expenditure verification a fiche containing key project information.
As per EuropeAid's standard form, the scope of the work of the auditor are: