Agreed-upon procedures to be performed and standard factual findings to be confirmed by the Auditor

Transcription

1 Agreed-upn prcedures t be perfrmed and standard factual findings t be cnfirmed by the Auditr The Eurpean Cmmissin reserves the right t i) prvide the auditr with additinal guidance regarding the prcedures t be fllwed r the facts t be ascertained and the way in which t present them (this may include sample cverage and findings) r t ii) change the prcedures, by ntifying the Partner in writing. The prcedures carried ut by the auditr t cnfirm the standard factual finding are listed in the table belw. If this certificate relates t a Linked Third Party, any reference here belw t the Partner is t be cnsidered as a reference t the Linked Third Party. The result clumn has three different ptins: C, E and N.A. : C stands fr cnfirmed and means that the auditr can cnfirm the standard factual finding and, therefre, there is n exceptin t be reprted. E stands fr exceptin and means that the Auditr carried ut the prcedures but cannt cnfirm the standard factual finding, r that the Auditr was nt able t carry ut a specific prcedure (e.g. because it was impssible t recncile key infrmatin r data were unavailable), N.A. stands fr nt applicable and means that the Finding did nt have t be examined by the Auditr and the related Prcedure(s) did nt have t be carried ut. The reasns f the nn-applicatin f a certain Finding must be bvius i.e. i) if n cst was declared under a certain categry then the related Finding(s) and Prcedure(s) are nt applicable; ii) if the cnditin set t apply certain Prcedure(s) are nt met then the related Finding(s) and Prcedure(s) are nt applicable. Fr instance, fr Partners with accunts established in a currency ther than the eur the Prcedure related t partners with accunts established in eur is nt applicable. Similarly, if n additinal remuneratin is paid, the related Finding(s) and Prcedure(s) fr additinal remuneratin are nt applicable. A ACTUAL PERSONNEL COSTS AND UNIT COSTS CALCULATED BY THE PARTNER IN ACCORDANCE WITH ITS USUAL COST ACCOUNTING PRACTICE The Auditr draws a sample f persns whse csts were declared in the Financial Statement(s) t carry ut the prcedures indicated in the cnsecutive pints f this sectin A. (The sample shuld be selected randmly s that it is representative. Full cverage is required if there are fewer than 10 peple (including emplyees, natural persns wrking under a direct cntract and persnnel secnded by a third party), therwise the sample shuld have a minimum f 10 peple, r 10% f the ttal, whichever number is the highest) The Auditr sampled peple ut f the ttal f peple. 10

2 A.1 PERSONNEL COSTS Fr the persns included in the sample and wrking under an emplyment cntract r equivalent act (general prcedures fr individual actual persnnel csts and persnnel csts declared as unit csts) T cnfirm standard factual findings 1-5 listed in the next clumn, the Auditr reviewed fllwing infrmatin/dcuments prvided by the Partner: a list f the persns included in the sample indicating the perid(s) during which they wrked fr the actin, their psitin (classificatin r categry) and type f cntract; the payslips f the emplyees included in the sample; recnciliatin f the persnnel csts declared in the Financial Statement(s) with the accunting system (prject accunting and general ledger) and payrll system; infrmatin cncerning the emplyment status and emplyment cnditins f persnnel included in the sample, in particular their emplyment cntracts r equivalent; the Partner s usual plicy regarding payrll matters (e.g. salary plicy, vertime plicy, variable pay); applicable natinal law n taxes, labur and scial security and any ther dcument that supprts the persnnel csts declared. The Auditr als verified the eligibility f all cmpnents f the retributin (see Article 5 SGA) and recalculated the persnnel csts fr emplyees included in the sample. 1) The emplyees were i) directly hired by the Partner in accrdance with its natinal legislatin, ii) under the Partner s sle technical supervisin and respnsibility and iii) remunerated in accrdance with the Beneficiary s usual practices. 2) Persnnel csts were recrded in the Partner's accunts/payrll system. 3) Csts were adequately supprted and recnciled with the accunts and payrll recrds. 4) Persnnel csts did nt cntain any ineligible elements. 5) There were n discrepancies between the persnnel csts charged t the actin and the csts recalculated by the Auditr. Further prcedures if additinal remuneratin is paid T cnfirm standard factual findings 6-9 listed in the next clumn, the Auditr: reviewed relevant dcuments prvided by the Partner (legal frm, legal/statutry 6) The Partner paying additinal remuneratin was a nn-prfit legal entity. 11

3 bligatins, the Partner s usual plicy n additinal remuneratin, criteria used fr its calculatin ); recalculated the amunt f additinal remuneratin eligible fr the actin based n the supprting dcuments received (full-time r part-time wrk, exclusive r nn-exclusive dedicatin t the actin, etc.) t arrive at the applicable FTE/year and pr-rata rate (see data cllected in the curse f carrying ut the prcedures under A.2 Prductive hurs and A.4 Time recrding system ). 7) The amunt f additinal remuneratin paid crrespnded t the Partner s usual remuneratin practices and was cnsistently paid whenever the same kind f wrk r expertise was required. IF ANY PART OF THE REMUNERATION PAID TO THE EMPLOYEE IS NOT MANDATORY ACCORDING TO THE NATIONAL LAW OR THE EMPLOYMENT CONTRACT ("ADDITIONAL REMUNERATION") AND IS ELIGIBLE UNDER THE PROVISIONS OF ARTICLE 5.2.A.1, THIS CAN BE CHARGED AS ELIGIBLE COST TO THE ACTION UP TO THE FOLLOWING AMOUNT: (A) IF THE PERSON WORKS FULL TIME AND EXCLUSIVELY ON THE ACTION DURING THE FULL YEAR: UP TO EUR 8 000/YEAR; (B) IF THE PERSON WORKS EXCLUSIVELY ON THE ACTION BUT NOT FULL-TIME OR NOT FOR THE FULL YEAR: UP TO THE CORRESPONDING PRO-RATA AMOUNT OF EUR 8 000, OR (C) IF THE PERSON DOES NOT WORK EXCLUSIVELY ON THE ACTION: UP TO A PRO-RATA AMOUNT CALCULATED IN ACCORDANCE TO ARTICLE 5.2.A.1. Additinal prcedures in case unit csts calculated by the Partner in accrdance with its usual cst accunting practices is applied: Apart frm carrying ut the prcedures indicated abve t cnfirm standard factual findings 1-5 and, if applicable, als 6-9, the Auditr carried ut fllwing prcedures t cnfirm standard factual findings listed in the next clumn: btained a descriptin f the Partner's usual cst accunting practice t calculate unit 8) The criteria used t calculate the additinal remuneratin were bjective and generally applied by the Partner regardless f the surce f funding used. 9) The amunt f additinal remuneratin included in the persnnel csts charged t the actin was capped at EUR 8,000 per FTE/year (up t the equivalent pr-rata amunt if the persn did nt wrk n the actin full-time during the year r did nt wrk exclusively n the actin). 10) The persnnel csts included in the Financial Statement were calculated in accrdance with the Partner's usual cst accunting practice. This methdlgy was cnsistently used in all COSME actins. 12

4 csts;. reviewed whether the Partner's usual cst accunting practice was applied fr the Financial Statements subject f the present CFS; verified the emplyees included in the sample were charged under the crrect categry (in accrdance with the criteria used by the Partner t establish persnnel categries) by reviewing the cntract/hr-recrd r analytical accunting recrds; verified that there is n difference between the ttal amunt f persnnel csts used in calculating the cst per unit and the ttal amunt f persnnel csts recrded in the statutry accunts; verified whether actual persnnel csts were adjusted n the basis f budgeted r estimated elements and, if s, verified whether thse elements used are actually relevant fr the calculatin, bjective and supprted by dcuments. Fr natural persns included in the sample and wrking with the Partner under a direct cntract ther than an emplyment cntract, such as cnsultants (n subcntractrs). T cnfirm standard factual findings listed in the next clumn the Auditr reviewed fllwing infrmatin/dcuments prvided by the Partner: the cntracts, especially the cst, cntract duratin, wrk descriptin, place f wrk, wnership f the results and reprting bligatins t the Partner; the emplyment cnditins f staff in the same categry t cmpare csts and; any ther dcument that supprts the csts declared and its registratin (e.g. invices, accunting recrds, etc.). 11) The emplyees were charged under the crrect categry. 12) Ttal persnnel csts used in calculating the unit csts were cnsistent with the expenses recrded in the statutry accunts. 13) Any estimated r budgeted element used by the Partner in its unit-cst calculatin were relevant fr calculating persnnel csts and crrespnded t bjective and verifiable infrmatin. 14) The natural persns reprted t the Partner (wrked under the Partner s instructins). 15) They wrked n the Partner s premises (unless therwise agreed with the Partner). 16) The results f wrk carried ut belng t the Partner. 17) Their csts were nt significantly different frm thse fr staff wh perfrmed similar tasks under an emplyment cntract with the 13

5 Partner. Fr persnnel secnded by a third party and included in the sample (nt subcntractrs) T cnfirm standard factual findings listed in the next clumn, the Auditr reviewed fllwing infrmatin/dcuments prvided by the Partner: their secndment cntract(s) ntably regarding csts, duratin, wrk descriptin, place f wrk and wnership f the results; if there is reimbursement by the Partner t the third party fr the resurce made available (in-kind cntributin against payment): any dcumentatin that supprts the csts declared (e.g. cntract, invice, bank payment, and prf f registratin in its accunting/payrll, etc.) and recnciliatin f the Financial Statement(s) with the accunting system (prject accunting and general ledger) as well as any prf that the amunt inviced by the third party did nt include any prfit. if there is n reimbursement by the Partner t the third party fr the resurce made available (in-kind cntributin free f charge): a prf f the actual cst brne by the Third Party fr the resurce made available free f charge t the Partner such as a statement f csts incurred by the and prf f the registratin in the Third Party's accunting/payrll,; any ther dcument that supprts the csts declared (e.g. invices, etc.). 18) The csts were supprted by audit evidence and registered in the accunts. 19) Secnded persnnel reprted t the Partner and wrked n the Partner s premises (unless therwise agreed with the Partner). 20) The results f wrk carried ut belng t the Partner. If persnnel is secnded against payment: 21) The csts declared were supprted with dcumentatin and recrded in the Partner s accunts. The third party did nt include any prfit. If persnnel is secnded free f charge: 22) The csts declared did nt exceed the third party's cst as recrded in the accunts f the third party and were supprted with dcumentatin. 14

6 A.2 PRODUCTIVE HOURS T cnfirm standard factual findings listed in the next clumn, the Auditr reviewed relevant dcuments, especially natinal legislatin, labur agreements and cntracts and time recrds f the persns included in the sample, t verify that: the annual prductive hurs applied were calculated in accrdance with ne f the methds described belw, the full-time equivalent (FTEs) ratis fr emplyees nt wrking full-time were crrectly calculated. If the Partner applied methd B, the auditr verified that the crrectness in which the ttal number f hurs wrked was calculated and that the cntracts specified the annual wrkable hurs. If the Partner applied methd C, the auditr verified that the annual prductive hurs applied when calculating the hurly rate were equivalent t at least 90 % f the standard annual wrkable hurs. The Auditr can nly d this if the calculatin f the standard annual wrkable hurs can be supprted by recrds, such as natinal legislatin, labur agreements, and cntracts. PARTNER'S PRODUCTIVE HOURS' FOR PERSONS WORKING FULL TIME SHALL BE ONE OF THE FOLLOWING METHODS: A ANNUAL PRODUCTIVE HOURS (PRO-RATA FOR PERSONS NOT WORKING FULL-TIME) B. THE TOTAL NUMBER OF HOURS WORKED BY THE PERSON FOR THE PARTNER IN THE YEAR (THIS METHOD IS ALSO REFERRED TO AS TOTAL NUMBER OF HOURS WORKED IN THE NEXT COLUMN). THE CALCULATION OF THE TOTAL NUMBER OF HOURS WORKED WAS DONE AS FOLLOWS: ANNUAL WORKABLE HOURS OF THE PERSON ACCORDING TO THE EMPLOYMENT CONTRACT, APPLICABLE LABOUR AGREEMENT OR NATIONAL LAW PLUS OVERTIME WORKED MINUS ABSENCES (SUCH AS SICK LEAVE OR SPECIAL LEAVE). C. THE STANDARD NUMBER OF ANNUAL HOURS GENERALLY APPLIED BY THE PARTNER FOR ITS 23) The Partner applied methd [chse ne ptin and delete the thers] [A: 1720 hurs] [B: the ttal number f hurs wrked ] [C: annual prductive hurs used crrespnd t usual accunting practices] 24) Prductive hurs were calculated annually. 25) Fr emplyees nt wrking full-time the full-time equivalent (FTE) rati was crrectly applied. If the Partner applied methd B. 26) The calculatin f the number f annual wrkable hurs, vertime and absences was verifiable based n the dcuments prvided by the Partner. If the Partner applied methd C. 27) The calculatin f the number f standard annual wrkable hurs was verifiable based n the dcuments prvided by the 15

7 PERSONNEL IN ACCORDANCE WITH ITS USUAL COST ACCOUNTING PRACTICES (THIS METHOD IS ALSO REFERRED TO AS TOTAL ANNUAL PRODUCTIVE HOURS IN THE NEXT COLUMN). THIS NUMBER MUST BE AT LEAST 90% OF THE STANDARD ANNUAL WORKABLE HOURS. Partner. ANNUAL WORKABLE HOURS MEANS THE PERIOD DURING WHICH THE PERSONNEL MUST BE WORKING, AT THE EMPLOYER S DISPOSAL AND CARRYING OUT HIS/HER ACTIVITY OR DUTIES UNDER THE EMPLOYMENT CONTRACT, APPLICABLE COLLECTIVE LABOUR AGREEMENT OR NATIONAL WORKING TIME LEGISLATION. A.3 HOURLY PERSONNEL RATES I) Fr unit csts calculated in accrdance t the Partner's usual cst accunting practice (unit csts): If the Partner has a "Certificate n Methdlgy t calculate unit csts " (CMUC) apprved by the Cmmissin, the Partner prvides the Auditr with a descriptin f the apprved methdlgy and the Cmmissin s letter f acceptance. The Auditr verified that the Partner has indeed used the methdlgy apprved. If s, n further verificatin is necessary. If the Partner des nt have a "Certificate n Methdlgy" (CMUC) apprved by the Cmmissin, r if the methdlgy apprved was nt applied, then the Auditr: reviewed the dcumentatin prvided by the Partner, including manuals and internal guidelines that explain hw t calculate hurly rates; recalculated the unit csts (hurly rates) f staff included in the sample fllwing the results f the prcedures carried ut in A.1 and A.2. II) Fr individual hurly rates: The Auditr: reviewed the dcumentatin prvided by the Partner, including manuals and internal 28) The annual prductive hurs used fr calculating the hurly rate were cnsistent with the usual cst accunting practices f the Partner and were equivalent t at least 90 % f the annual wrkable hurs. 29) The Partner applied [chse ne ptin and delete the ther]: [Optin I: Unit csts (hurly rates) were calculated in accrdance with the Partner s usual cst accunting practices ] [Optin II: Individual hurly rates were applied] Fr ptin I cncerning unit csts and if the Partner applies the methdlgy apprved by the Cmmissin (CMUC): 30) The Partner used the Cmmissin-apprved methdlgy t calculate hurly rates. It crrespnded t the rganisatin's usual cst 16

8 guidelines that explain hw t calculate hurly rates; recalculated the hurly rates f staff included in the sample fllwing the results f the prcedures carried ut in A.1 and A.2. UNIT COSTS CALCULATED BY THE PARTNER IN ACCORDANCE WITH ITS USUAL COST ACCOUNTING PRACTICES : IT IS CALCULATED BY DIVIDING THE TOTAL AMOUNT OF PERSONNEL COSTS OF THE CATEGORY TO WHICH THE EMPLOYEE BELONGS VERIFIED IN LINE WITH PROCEDURE A.1 BY THE NUMBER OF FTE AND THE ANNUAL TOTAL PRODUCTIVE HOURS OF THE SAME CATEGORY CALCULATED BY THE PARTNER IN ACCORDANCE WITH PROCEDURE A.2. HOURLY RATE FOR INDIVIDUAL ACTUAL PERSONAL COSTS: IT IS CALCULATED BY DIVIDING THE TOTAL AMOUNT OF PERSONNEL COSTS OF AN EMPLOYEE VERIFIED IN LINE WITH PROCEDURE A.1 BY THE NUMBER OF ANNUAL PRODUCTIVE HOURS VERIFIED IN LINE WITH PROCEDURE A.2. A.4 TIME RECORDING SYSTEM T verify that the time recrding system ensures the fulfilment f all minimum requirements and that the hurs declared fr the actin were crrect, accurate and prperly authrised and supprted by dcumentatin, the Auditr made the fllwing checks fr the persns included in the sample that declare time as wrked fr the actin n the basis f time recrds: descriptin f the time recrding system prvided by the Partner (registratin, authrisatin, prcessing in the HR-system); its actual implementatin; time recrds were signed at least mnthly by the emplyees (n paper r electrnically) accunting practices and was applied cnsistently fr all activities irrespective f the surce f funding. Fr ptin I cncerning unit csts and if the Partner applies a methdlgy nt apprved by the Cmmissin: 31) The unit csts re-calculated by the Auditr were the same as the rates applied by the Partner. Fr ptin II cncerning individual hurly rates: 32) The individual rates recalculated by the Auditr were the same as the rates applied by the Partner. 33) All persns recrded their time dedicated t the actin n a daily/ weekly/ mnthly basis using a paper/cmputerbased system. (delete the answers that are nt applicable) 34) Their time-recrds were authrised at least mnthly by the prject manager r ther 17

9 and authrised by the prject manager r anther manager; the hurs declared were wrked within the prject perid; there were n hurs declared as wrked fr the actin if HR-recrds shwed absence due t hlidays r sickness (further crss-checks with travels are carried ut in B.1 belw) ; the hurs charged t the actin matched thse in the time recrding system. ONLY THE HOURS WORKED ON THE ACTION CAN BE CHARGED. ALL WORKING TIME TO BE CHARGED SHOULD BE RECORDED THROUGHOUT THE DURATION OF THE PROJECT, ADEQUATELY SUPPORTED BY EVIDENCE OF THEIR REALITY AND RELIABILITY (SEE SPECIFIC PROVISIONS BELOW FOR PERSONS WORKING EXCLUSIVELY FOR THE ACTION WITHOUT TIME RECORDS). superir. 35) Hurs declared were wrked within the prject perid and were cnsistent with the presences/absences recrded in HR-recrds. 36) There were n discrepancies between the number f hurs charged t the actin and the number f hurs recrded. If the persns are wrking exclusively fr the actin and withut time recrds Fr the persns selected that wrked exclusively fr the actin withut time recrds, the Auditr verified evidence available demnstrating that they were in reality exclusively dedicated t the actin and that the Partner signed a declaratin cnfirming that they have wrked exclusively fr the actin. B COSTS OF SUBCONTRACTING B.1 The Auditr btained the detail/breakdwn f subcntracting csts and sampled cst items selected randmly (full cverage is required if there are fewer than 10 items, therwise the sample shuld have a minimum f 10 item, r 10% f the ttal, whichever number is highest). T cnfirm standard factual findings listed in the next clumn, the Auditr reviewed the 37) The exclusive dedicatin is supprted by a declaratin signed by the Partner s and by any ther evidence gathered. 38) The use f claimed subcntracting csts was freseen in Annex 1 and csts were declared in the Financial Statements under the subcntracting categry. 18

10 fllwing fr the items included in the sample: the use f subcntractrs was freseen in Annex 1; subcntracting csts were declared in the subcntracting categry f the Financial Statement; supprting dcuments n the selectin and award prcedure were fllwed; the Partner ensured best value fr mney (key elements t appreciate the respect f this principle are the award f the subcntract t the bid ffering best price-quality rati, under cnditins f transparency and equal treatment. In case an existing framewrk cntract was used the Partner ensured it was established n the basis f the principle f best value fr mney under cnditins f transparency and equal treatment). In particular, i. if the Partner acted as a cntracting authrity within the meaning f Directive 2004/18/EC r f Directive 2004/17/EC, the Auditr verified that the applicable natinal law n public prcurement was fllwed and that the subcntracting cmplied with the Terms and Cnditins f the Agreement. ii. if the Partner did nt fall under the abve-mentined categry the Auditr verified that the Partner fllwed their usual prcurement rules and respected the Terms and Cnditins f the Agreement.. Fr the items included in the sample the Auditr als verified that: the subcntracts were nt awarded t ther Partners in the cnsrtium; there were signed agreements between the Partner and the subcntractr; there was evidence that the services were prvided by subcntractr; 39) There were dcuments f requests t different prviders, different ffers and assessment f the ffers befre selectin f the prvider in line with internal prcedures and prcurement rules. Subcntracts were awarded in accrdance with the principle f best value fr mney. (When different ffers were nt cllected the Auditr explains the reasns prvided by the Partner under the captin Exceptins f the Reprt. The Cmmissin will analyse this infrmatin t evaluate whether these csts might be accepted as eligible) 40) The subcntracts were nt awarded t ther Partners f the cnsrtium. 41) All subcntracts were supprted by signed agreements between the Partner and the subcntractr. 42) There was evidence that the services were prvided by the 19

11 subcntractrs. C COSTS OF PROVIDING FINANCIAL SUPPORT TO THIRD PARTIES C.1 The Auditr btained the detail/breakdwn f the csts f prviding financial supprt t third parties and sampled cst items selected randmly (full cverage is required if there are fewer than 10 items, therwise the sample shuld have a minimum f 10 item, r 10% f the ttal, whichever number is highest). D The Auditr verified that the fllwing minimum cnditins were met: a) the maximum amunt f financial supprt fr each third party did nt exceed EUR , unless explicitly mentined in Annex 1; b) the financial supprt t third parties was agreed in Annex 1 f the Agreement and the ther prvisins n financial supprt t third parties included in Annex 1 were respected. OTHER ACTUAL DIRECT COSTS D.1 COSTS OF TRAVEL AND RELATED SUBSISTENCE ALLOWANCES The Auditr sampled cst items selected randmly (full cverage is required if there are fewer than 10 items, therwise the sample shuld have a minimum f 10 item, r 10% f the ttal, whichever number is the highest). The Auditr inspected the sample and verified that: travel and subsistence csts were cnsistent with the Partner 's usual plicy fr travel. In this cntext, the Partner prvided evidence f its nrmal plicy fr travel csts (e.g. use f first class tickets, reimbursement by the Partner n the basis f actual csts, a lump sum r per diem) t enable the Auditr t cmpare the travel csts charged with this plicy; travel csts are crrectly identified and allcated t the actin (e.g. trips are directly 43) All minimum cnditins were met 44) Csts were incurred, apprved and reimbursed in line with the Partner 's usual plicy fr travels. 45) There was a link between the trip and the actin. 46) The supprting dcuments were cnsistent with each ther regarding subject f the trip, dates, duratin and recnciled with time recrds and 20

12 linked t the actin) by reviewing relevant supprting dcuments such as minutes f meetings, wrkshps r cnferences, their registratin in the crrect prject accunt, their cnsistency with time recrds r with the dates/duratin f the wrkshp/cnference; n ineligible csts r excessive r reckless expenditure was declared. D.2 DEPRECIATION COSTS FOR EQUIPMENT, INFRASTRUCTURE OR OTHER ASSETS The Auditr sampled cst items selected randmly (full cverage is required if there are fewer than 10 items, therwise the sample shuld have a minimum f 10 item, r 10% f the ttal, whichever number is the highest). Fr equipment, infrastructure r ther assets [frm nw n called asset(s) ] selected in the sample the Auditr verified that: the assets were acquired in cnfrmity with the Partner's internal guidelines and prcedures; they were crrectly allcated t the actin (with supprting dcuments such as delivery nte invice r any ther prf demnstrating the link t the actin) they were entered in the accunting system; the extent t which the assets were used fr the actin (as a percentage) was supprted by reliable dcumentatin (e.g. usage verview table); The Auditr recalculated the depreciatin csts and verified that they were in line with the applicable rules in the Partner s cuntry and with the Partner s usual accunting plicy (e.g. depreciatin calculated n the acquisitin value). The Auditr verified that n ineligible csts such as deductible VAT, exchange rate lsses, excessive r reckless expenditure were declared (see Article 5 SGA). accunting. 47) N ineligible csts r excessive r reckless expenditure was declared. 48) Prcurement rules, principles and guides were fllwed. 49) There was a link between the grant agreement and the asset charged t the actin. 50) The asset charged t the actin was traceable t the accunting recrds and the underlying dcuments. 51) The depreciatin methd used t charge the asset t the actin was in line with the applicable rules f the Partner's cuntry and the Partner's usual accunting plicy. 52) The amunt charged crrespnded t the actual usage fr the actin. 53) N ineligible csts r excessive r reckless expenditure were declared. 21

13 D.3 COSTS OF OTHER GOODS AND SERVICES The Auditr sampled cst items selected randmly (full cverage is required if there are fewer than 10 items, therwise the sample shuld have a minimum f 10 item, r 10% f the ttal, whichever number is highest). Fr the purchase f gds, wrks r services included in the sample the Auditr verified that: the cntracts did nt cver tasks described in Annex 1; they were crrectly identified, allcated t the prper actin, entered in the accunting system (traceable t underlying dcuments such as purchase rders, invices and accunting); the gds were nt placed in the inventry f durable equipment; the csts charged t the actin were accunted in line with the Partner s usual accunting practices; n ineligible csts r excessive r reckless expenditure were declared (see Article 5 SGA). In additin, the Auditr verified that these gds and services were acquired in cnfrmity with the Partner 's internal guidelines and prcedures, in particular: if Partner acted as a cntracting authrity within the meaning f Directive 2004/18/EC r f Directive 2004/17/EC, the Auditr verified that the applicable natinal law n public prcurement was fllwed and that the prcurement cntract cmplied with the Terms and Cnditins f the Agreement. if the Partner did nt fall int the categry abve, the Auditr verified that the Partner fllwed their usual prcurement rules and respected the Terms and Cnditins f the Agreement. Fr the items included in the sample the Auditr als verified that: the Partner ensured best value fr mney (key elements t appreciate the respect f this principle are the award f the cntract t the bid ffering best price-quality rati, under cnditins f transparency and equal treatment. In case an existing framewrk cntract 54) Cntracts fr wrks r services did nt cver tasks described in Annex 1. 55) Csts were allcated t the crrect actin and the gds were nt placed in the inventry f durable equipment. 56) The csts were charged in line with the Partner s accunting plicy and were adequately supprted. 57) N ineligible csts r excessive r reckless expenditure were declared. Fr internal invices/charges nly the cst element was charged, withut any mark-ups. 58) Prcurement rules, principles and guides were fllwed. There were dcuments f requests t different prviders, different ffers and assessment f the ffers befre selectin f the prvider in line with internal prcedures and prcurement rules. The purchases were made in accrdance with the principle f best value fr mney. 22

14 was used the Auditr als verified that the Partner ensured it was established n the basis f the principle f best value fr mney under cnditins f transparency and equal treatment); SUCH GOODS AND SERVICES INCLUDE, FOR INSTANCE, CONSUMABLES AND SUPPLIES, DISSEMINATION (INCLUDING OPEN ACCESS), PROTECTION OF RESULTS, SPECIFIC EVALUATION OF THE ACTION IF IT IS REQUIRED BY THE AGREEMENT, CERTIFICATES ON THE FINANCIAL STATEMENTS IF THEY ARE REQUIRED BY THE AGREEMENT AND CERTIFICATES ON THE METHODOLOGY, TRANSLATIONS, REPRODUCTION. D.4 AGGREGATED CAPITALISED AND OPERATING COSTS OF RESEARCH INFRASTRUCTURE The Auditr ensured the existence f a psitive ex-ante assessment (issued by the EC Services) f the cst accunting methdlgy f the Partner allwing it t apply the guidelines n direct csting fr large research infrastructures in Hrizn In the cases that a psitive ex-ante assessment has been issued (see the standard factual findings n the next clumn), The Auditr ensured that the Partner has applied cnsistently the methdlgy that is explained and apprved in the psitive ex ante assessment; In the cases that a psitive ex-ante assessment has NOT been issued (see the standard factual findings 61 n the next clumn), The Auditr verified that n csts f Large Research Infrastructure have been charged as direct csts in any csts categry; In the cases that a draft ex-ante assessment reprt has been issued with recmmendatin fr further changes (see the standard factual findings 61 n the next clumn), The Auditr fllwed the same prcedure as abve (when a psitive ex-ante assessment has NOT yet been issued) and paid particular attentin (testing reinfrced) t the cst items fr which the draft ex-ante assessment either rejected the inclusin as direct csts fr Large Research Infrastructures r issued recmmendatins. (When different ffers were nt cllected the Auditr explains the reasns prvided by the Partner under the captin Exceptins f the Reprt. The Cmmissin will analyse this infrmatin t evaluate whether these csts might be accepted as eligible) 59) The csts declared as direct csts fr Large Research Infrastructures (in the apprpriate line f the Financial Statement) cmply with the methdlgy described in the psitive exante assessment reprt. 60) Any difference between the methdlgy applied and the ne psitively assessed was extensively described and adjusted accrdingly. 61) The direct csts declared were free frm any indirect csts items related t the Large Research Infrastructure. 23

15 E USE OF EXCHANGE RATES E.1 a) Fr Partners with accunts established in a currency ther than eurs The Auditr sampled cst items selected randmly and verified that the exchange rates used fr cnverting ther currencies int eurs were in accrdance with the fllwing rules established in the Agreement ( full cverage is required if there are fewer than 10 items, therwise the sample shuld have a minimum f 10 item, r 10% f the ttal, whichever number is highest): COSTS INCURRED IN ANOTHER CURRENCY SHALL BE CONVERTED INTO EURO AT THE AVERAGE OF THE DAILY EXCHANGE RATES PUBLISHED IN THE C SERIES OF OFFICIAL JOURNAL OF THE EUROPEAN UNION ( ), DETERMINED OVER THE CORRESPONDING REPORTING PERIOD. IF NO DAILY EURO EXCHANGE RATE IS PUBLISHED IN THE OFFICIAL JOURNAL OF THE EUROPEAN UNION FOR THE CURRENCY IN QUESTION, CONVERSION SHALL BE MADE AT THE AVERAGE OF THE MONTHLY ACCOUNTING RATES ESTABLISHED BY THE COMMISSION AND PUBLISHED ON ITS WEBSITE ( DETERMINED OVER THE CORRESPONDING REPORTING PERIOD. b) Fr Partners with accunts established in eurs The Auditr sampled cst items selected randmly and verified that the exchange rates used fr cnverting ther currencies int eurs were in accrdance with the fllwing rules established in the Agreement ( full cverage is required if there are fewer than 10 items, therwise the sample shuld have a minimum f 10 item, r 10% f the ttal, whichever number is highest): COSTS INCURRED IN ANOTHER CURRENCY SHALL BE CONVERTED INTO EURO BY APPLYING THE PARTNER S USUAL ACCOUNTING PRACTICES. 62) The exchange rates used t cnvert ther currencies int Eurs were in accrdance with the rules established f the Specific Grant Agreement and there was n difference in the final figures. 63) The Partner applied its usual accunting practices. [legal name f the audit firm] [name and functin f an authrised representative] <dd Mnth yyyy> <Signature f the Auditr> 24