Audit

In this section:

• Want to know how to keep a correct accountancy for ex-post audits?

Article 170 of the EC Financial Regulation states that “each financing agreement or grant agreement or grant decision must expressly provide for the Commission and the Court of Auditors to have the power of audit, on the basis of documents and on the spot, over all contractors and subcontractors who have received Community funds”.

Therefore the partner organisations shall keep accurate and regular accounts of the implementation of the action using an appropriate accounting and double-entry book-keeping system. These systems may either be an integrated part of the organisation’s regular system or an adjunct to that system. This system shall be run in accordance with the accounting and bookkeeping policies and rules that apply in the country concerned.

Accounts and expenditure relating to the Action must be easily identifiable and verifiable. This can be done by using separate accounts for the Action concerned or by ensuring that expenditure for the action concerned can be easily identified and traced to and within the beneficiary’s accounting and bookkeeping systems.

Accounts must provide details of interest accruing on funds paid by the EC.

The partner shall ensure that the Financial Report (both interim and final) can be properly and easily reconciled to the Beneficiary’s accounting and bookkeeping system and to the underlying accounting and other relevant records. For this purpose the partner shall prepare and keep appropriate reconciliations, supporting schedules, analyses and breakdowns for inspection and verification.

The beneficiary organisation will allow the European Commission, the European Anti-Fraud Office, the European Court of Auditors and any external auditor authorised by the Contracting authority carrying out verificationsto verify, by examining the documents or by means of on-the-spot checks, the implementation of the Action and conduct a full audit, if necessary, on the basis of supporting documents for the accounts, accounting documents and any other document relevant to the financing of the Action.

These inspections may take place up to 7 years after the payment of the balance.

Furthermore, the beneficiary organisation will allow the European Anti-Fraud Office and any external auditor authorised by the EC carrying out verifications to carry out checks and verification on the spot in accordance with the procedures set out in the European Community legislation for the protection of the financial interests of the European Communities against fraud and other irregularities.

To this end, the beneficiary undertakes to give appropriate access to staff or agents of the European Commission, of the European Anti-Fraud Office and of the European Court of Auditors as well as to any external auditor authorised by the EC carrying out verifications to the sites and locations at which the Action is implemented, including its information systems, as well as all documents and databases concerning the technical and financial management of the Action and to take all steps to facilitate their work.

Access given to agents of the European Commission, European Anti-Fraud Office and the European Court of Auditors and to any external auditor authorised by the Contracting Authority carrying out verifications shall be on the basis of confidentiality with respect to third parties, without prejudice to the Obligations of public law to which they are subject.

Documents must be easily accessible and filed so as to facilitate their examination and the organisation must inform the EC of their precise location.

Where a partner or subcontractor is an international organisation, any verification agreement concluded between such organisation and the European Commission applies.



Sources and useful links:

• General conditions, Article 16.