Annex 4 ‐ Specific Grant Agreement No. EIT/EIT InnoEnergy/SGA20XX
MODEL FOR THE CERTIFICATE ON THE FINANCIAL STATEMENTS
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TABLE OF CONTENTS
TERMS OF REFERENCE FOR AN INDEPENDENT REPORT OF FACTUAL FINDINGS ON COSTS DECLARED UNDER A
GRANT AGREEMENT FINANCED UNDER THE HORIZON 2020 RESEARCH FRAMEWORK PROGRAMME ................2
INDEPENDENT REPORT OF FACTUAL FINDINGS ON COSTS DECLARED UNDER A GRANT AGREEMENT FINANCED
UNDER THE HORIZON 2020 RESEARCH FRAMEWORK PROGRAMME …………………………………………………………… 6
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Annex 4 ‐ Specific Grant Agreement No. EIT/EIT InnoEnergy/SGA20XX
Terms of Reference for an Independent Report of Factual Findings on costs declared under a Specific
Agreement financed under the Horizon 2020 Research and Innovation Framework Programme
This document sets out the ‘Terms of Reference (ToR)’ under which
[OPTION 1: [insert name of the KIC partner] (‘the KIC Partner )] [OPTION 2: [insert name of the linked
third party] (‘the Linked Third Party’), third party linked to the KIC Partner [insert name of the KIC partner]
(‘the KIC Partner)]
agrees to engage
[insert legal name of the auditor] (‘the Auditor’)
to produce an independent report of factual findings (‘the Report’) concerning the Financial
Statement(s)1 drawn up by the
[KIC Partner] [Linked Third Party] for the Horizon 2020 Specific
Agreement [insert number of the specific agreement, title of the specific action, acronym and duration
from/to] (‘the Agreement’), and
to issue a Certificate on the Financial Statements’ (‘CFS’) referred to in Article 16 of the Specific
Agreement based on the compulsory reporting template stipulated by the Commission.
The Agreement has been concluded under the Horizon 2020 Research and Innovation Framework
Programme (H2020) between the KIC LE on behalf of the KIC Partner and
EIT. The
EIT is mentioned as a signatory of the Agreement with the KIC LE on behalf of the
KIC Partner only.
The EIT is not a party to this engagement.
1.1 Subject of the engagement
The KIC LE must submit to the
EIT the final report within 60 days following the end of the last reporting
period which should include, amongst other documents, a CFS for each KIC p
artner and for each linked
third party that requests a total contribution of EUR 325 000 or more, as reimbursement of actual costs
and unit costs calculated on the basis of its usual cost accounting practices (see Article 16 of the Specific
Agreement). The CFS must cover all reporting periods of the KIC partner or linked third party indicated
above.
The
KIC Partner must submit to the EIT the CFS for itself and for its linked third party(ies), if the CFS must
be included in the final report according to Article 16 of the Specific Agreement.
The CFS is composed of two separate documents:
-
The Terms of Reference (‘the ToR’) to be signed by the
[KIC Partner] [Linked Third Party] and
the Auditor;
-
The Auditor’s Independent Report of Factual Findings (‘the Report’) to be issued on the
Auditor’s letterhead, dated, stamped and signed by the Auditor (or the competent public
officer) which includes the agreed‐upon procedures (‘the Procedures’) to be performed by the
Auditor, and the standard factual findings (‘the Findings’) to be confirmed by the Auditor.
1 By which costs under the Agreement are declared (see template ‘Model Financial Statements’ in Annex 3 to
the Specific Agreement).
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Annex 4 ‐ Specific Grant Agreement No. EIT/EIT InnoEnergy/SGA20XX
If the CFS must be included in the final report according to Article 16 of the Specific Agreement, the
request for payment of the balance relating to the Agreement cannot be made without the CFS.
However, the payment for reimbursement of costs covered by the CFS does not preclude the
Commission, the EIT, the European Anti‐Fraud Office and the European Court of Auditors from carrying
out checks, reviews, audits and investigations in accordance with Article 28 of the Framework
Partnership Agreement.
1.2 Responsibilities
The
[KIC Partner] [Linked Third Party]:
must draw up the Financial Statement(s) for the action financed by the Agreement in
compliance with the obligations under the Agreement. The Financial Statement(s) must be
drawn up according to the
[KIC Partner’s] [Linked Third Party’s] accounting and book‐keeping
system and the underlying accounts and records;
must send the Financial Statement(s) to the Auditor;
is responsible and liable for the accuracy of the Financial Statement(s);
is responsible for the completeness and accuracy of the information provided to enable the
Auditor to carry out the Procedures. It must provide the Auditor with a written representation
letter supporting these statements. The written representation letter must state the period
covered by the statements and must be dated;
accepts that the Auditor cannot carry out the Procedures unless it is given full access to the
[KIC
Partner’s] [Linked Third Party’s] staff and accounting as well as any other relevant records and
documentation.
The Auditor:
[Option 1 by default: is qualified to carry out statutory audits of accounting documents in
accordance with Directive 2006/43/EC of the European Parliament and of the Council of 17 May
2006 on statutory audits of annual accounts and consolidated accounts, amending Council
Directives 78/660/EEC and 83/349/EEC and repealing Council Directive 84/253/EEC or similar
national regulations
].
[Option 2 if the KIC Partner or Linked Third Party has an independent Public Officer: is a
competent and independent Public Officer for which the relevant national authorities have
established the legal capacity to audit the KIC Partner
].
[Option 3 if the KIC Partner or Linked Third Party is an international organisation: is an [internal]
[external] auditor in accordance with the internal financial regulations and procedures of the
international organisation
].
The Auditor:
must be independent from the KIC Partner
[and the Linked Third Party], in particular, it must
not have been involved in preparing the
[KIC Partner’s] [Linked Third Party’s] Financial
Statement(s);
must plan work so that the Procedures may be carried out and the Findings may be assessed;
must adhere to the Procedures laid down and the compulsory report format;
must carry out the engagement in accordance with this ToR;
must document matters which are important to support the Report;
must base its Report on the evidence gathered;
must submit the Report to the
[KIC Partner] [Linked Third Party].
The Commission sets out the Procedures to be carried out by the Auditor. The Auditor is not responsible
for their suitability or pertinence. As this engagement is not an assurance engagement, the Auditor does
not provide an audit opinion or a statement of assurance.
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Annex 4 ‐ Specific Grant Agreement No. EIT/EIT InnoEnergy/SGA20XX
1.3
Applicable Standards
The Auditor must comply with these Terms of Reference and with2:
-
the International Standard on Related Services (‘ISRS’) 4400
Engagements to perform Agreed‐
upon Procedures regarding Financial Information as issued by the International Auditing and
Assurance Standards Board (IAASB);
-
the
Code of Ethics for Professional Accountants issued by the International Ethics Standards
Board for Accountants (IESBA). Although ISRS 4400 states that independence is not a
requirement for engagements to carry out agreed‐upon procedures, the EIT requires that the
Auditor also complies with the Code’s independence requirements.
The Auditor’s Report must state that there is no conflict of interests in establishing this Report between
the Auditor and the KIC Partner
[and the Linked Third Party], and must specify ‐ if the service is invoiced
‐ the total fee paid to the Auditor for providing the Report.
1.4
Reporting
The Report must be written in the language of the Agreement (see Article 16 SGA).
Under Article 28 of the Framework Partnership Agreement, the Commission, the EIT, the European Anti‐
Fraud Office and the Court of Auditors have the right to audit any work that is carried out under the
specific action and for which costs are declared from EIT budget. This includes work related to this
engagement. The Auditor must provide access to all working papers (e.g. recalculation of hourly rates,
verification of the time declared for the action) related to this assignment if the Commission, the EIT,
Commission, the European Anti‐Fraud Office or the European Court of Auditors requests them.
1.5
Timing
The Report must be provided by
[dd Month yyyy
].
1.6
Other terms
[
The [KIC Partner] [Linked Third Party] and the Auditor can use this section to agree other specific terms,
such as the Auditor’s fees, liability, applicable law, etc. Those specific terms must not contradict the terms
specified above.]
[legal name of the Auditor]
[legal name of the
[KIC Partner][Linked Third Party]]
[name & function of authorised representative]
[name & function of authorised representative]
[dd Month yyyy]
[dd Month yyyy]
Signature of the Auditor
Signature of the
[KIC Partner][Linked Third Party]
2 Supreme Audit Institutions applying INTOSAI‐standards may carry out the Procedures according to the
corresponding International Standards of Supreme Audit Institutions and code of ethics issued by INTOSAI
instead of the International Standard on Related Services (‘ISRS’) 4400 and the Code of Ethics for Professional
Accountants issued by the IAASB and the IESBA.
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Annex 4 ‐ Specific Grant Agreement No. EIT/EIT InnoEnergy/SGA20XX
Independent Report of Factual Findings on costs declared under Horizon 2020 Research and Innovation
Framework Programme
(To be printed on the Auditor’s letterhead)
To
[ name of contact person(s)], [Position]
[ [
KIC Partner’s] [
Linked Third Party’s] name ]
[ Address]
[ dd Month yyyy]
Dear [Name of contact person(s)],
As agreed under the terms of reference dated [dd Month yyyy]
with
[OPTION 1: [insert name of the KIC partner] (‘the KIC Partner’)] [OPTION 2: [insert name of the
linked third party] (‘the Linked Third Party’), third party linked to the KIC Partner [insert name of the KIC
partner] (‘the KIC Partner’)],
we
[name of the auditor ] (‘the Auditor’),
established at
[full address/city/state/province/country]
,
represented by
[name and function of an authorised representative]
,
have carried out the procedures agreed with you regarding the costs declared in the Financial
Statement(s)3 of the
[KIC Partner] [Linked Third Party] concerning the Specific Agreement
[insert specific agreement reference: number, title of the action and acronym] (‘the Agreement’),
with a total cost declared of
[total amount]
EUR,
and a total of actual costs and ‘direct personnel costs declared as unit costs calculated in accordance
with the [K
IC Partner’s] [
Linked Third Party’s] usual cost accounting practices’ declared of
[sum of total actual costs and total direct personnel costs declared as unit costs calculated in
accordance with the
[KIC Partner’s] [Linked Third Party’s] usual cost accounting practices]
EUR
and hereby provide our Independent Report of Factual Findings (‘the Report’) using the compulsory
report format agreed with you.
The Report
Our engagement was carried out in accordance with the terms of reference (‘the ToR’) appended to
this Report. The Report includes the agreed‐upon procedures (‘the Procedures’) carried out and the
standard factual findings (‘the Findings’) examined.
3 By which the KIC Partner declares costs under the Specific Agreement (see template ‘Model Financial
Statement’ in Annex 3 to the Specific Agreement).
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Annex 4 ‐ Specific Grant Agreement No. EIT/EIT InnoEnergy/SGA20XX
The Procedures were carried out solely to assist the EIT in evaluating whether the [
KIC partner’s] [
Linked
Third Party’s] costs in the accompanying Financial Statement(s) were declared in accordance with the
Agreement. The
EIT draws its own conclusions from the Report and any additional information it may
require.
The scope of the Procedures was defined by the Commission
. Therefore, the Auditor is not responsible
for their suitability or pertinence. Since the Procedures carried out constitute neither an audit nor a
review made in accordance with International Standards on Auditing or International Standards on
Review Engagements, the Auditor does not give a statement of assurance on the Financial Statements.
Had the Auditor carried out additional procedures or an audit of the
[KIC Partner’s] [Linked Third Party’s] Financial Statements in accordance with International Standards on Auditing or International Standards
on Review Engagements, other matters might have come to its attention and would have been included
in the Report.
Not applicable Findings
We examined the Financial Statement(s) stated above and considered the following Findings not
applicable:
Explanation (to be removed from the Report):
If a Finding was not applicable, it must be marked as ‘N.A.’ (‘Not applicable’) in the corresponding row
on the right‐hand column of the table and means that the Finding did not have to be corroborated by
the Auditor and the related Procedure(s) did not have to be carried out.
The reasons of the non‐application of a certain Finding must be obvious i.e.
i) if no cost was declared under a certain category then the related Finding(s) and
Procedure(s) are not applicable;
ii) if the condition set to apply certain Procedure(s) are not met the related Finding(s) and
those Procedure(s) are not applicable. For instance, for KIC Partners with accounts
established in a currency other than euro’ the Procedure and Finding related to ‘KIC
partners with accounts established in euro’ are not applicable. Similarly, if no additional
remuneration is paid, the related Finding(s) and Procedure(s) for additional remuneration
are not applicable.
List here all Findings considered not applicable for the present engagement and explain the reasons of
the non‐applicability.
….
Exceptions
Apart from the exceptions listed below, the
[KIC Partner] [Linked Third Party] provided the Auditor all
the documentation and accounting information needed by the Auditor to carry out the requested
Procedures and evaluate the Findings.
Explanation (to be removed from the Report):
-
If the Auditor was not able to successfully complete a procedure requested, it must be marked
as ‘E’ (‘Exception’) in the corresponding row on the right‐hand column of the table. The reason
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Annex 4 ‐ Specific Grant Agreement No. EIT/EIT InnoEnergy/SGA20XX
such as the inability to reconcile key information or the unavailability of data that prevents
the Auditor from carrying out the Procedure must be indicated below.
-
If the Auditor cannot corroborate a standard finding after having carried out the
corresponding procedure, it must also be marked as ‘E’ (‘Exception’) and, where possible, the
reasons why the Finding was not fulfilled and its possible impact must be explained here
below.
List here any exceptions and add any information on the cause and possible consequences of each
exception, if known. If the exception is quantifiable, include the corresponding amount.
….
Example (to be removed from the Report):
1. The KIC Partner was unable to substantiate the Finding number 1 on … because ….
2. Finding number 30 was not fulfilled because the methodology used by the KIC partner to
calculate unit costs was different from the one approved by the Commission. The
differences were as follows: …
3. After carrying out the agreed procedures to confirm the Finding number 31, the Auditor
found a difference of _____________ EUR. The difference can be explained by …
Further Remarks
In addition to reporting on the results of the specific procedures carried out, the Auditor would like to
make the following general remarks:
Example (to be removed from the Report):
1. Regarding Finding number 8 the conditions for additional remuneration were considered
as fulfilled because …
2.
In order to be able to confirm the Finding number 15 we carried out the following
additional procedures: ….
Use of this Report
This Report may be used only for the purpose described in the above objective. It was prepared solely
for the confidential use of the
[KIC Partner] [Linked Third Party] and the EIT, and only to be submitted
to the EIT in connection with the requirements set out in Article 16 of the Specific Agreement. The
Report may not be used by the
[KIC Partner] [Linked Third Party] or by the EIT for any other purpose,
nor may it be distributed to any other parties. The EIT may only disclose the Report to authorised parties,
in particular to the European Anti‐Fraud Office (OLAF) and the European Court of Auditors.
This Report relates only to the Financial Statement(s) submitted to the
EIT by the
[KIC Partner] [Linked
Third Party] for the Agreement. Therefore, it does not extend to any other of the [
KIC Partner’s] [
Linked
Third Party’s] Financial Statement(s).
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Annex 4 ‐ Specific Grant Agreement No. EIT/EIT InnoEnergy/SGA20XX
There was no conflict of interest4 between the Auditor and the KIC Partner
[and Linked Third Party] in
establishing this Report. The total fee paid to the Auditor for providing the Report was EUR ______
(including EUR______ of deductible VAT).
We look forward to discussing our Report with you and would be pleased to provide any further
information or assistance.
[legal name of the Auditor]
[name and function of an authorised representative]
[dd Month yyyy]
Signature of the Auditor
4 A conflict of interest arises when the Auditor's objectivity to establish the certificate is compromised in fact or
in appearance when the Auditor for instance:
‐ was involved in the preparation of the Financial Statements;
‐ stands to benefit directly should the certificate be accepted;
‐ has a close relationship with any person representing the KIC Partner;
‐ is a director, trustee or partner of the KIC Partner; or
‐ is in any other situation that compromises his or her independence or ability to establish the certificate
impartially.
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Annex 4 ‐ Specific Grant Agreement No. EIT/EIT InnoEnergy/SGA20XX
Agreed‐upon procedures to be performed and standard factual findings to be confirmed by the Auditor
The EIT reserves the right to i) provide the auditor with additional guidance regarding the procedures to be followed or the facts to be ascertained and the way
in which to present them (this may include sample coverage and findings) or to ii) change the procedures, by notifying the KIC Partner in writing. The procedures
carried out by the auditor to confirm the standard factual finding are listed in the table below.
If this certificate relates to a Linked Third Party, any reference here below to ‘the KIC Partner’ is to be considered as a reference to ‘the Linked Third Party’.
The ‘result’ column has three different options: ‘C’, ‘E’ and ‘N.A.’:
‘C’ stands for ‘confirmed’ and means that the auditor can confirm the ‘standard factual finding’ and, therefore, there is no exception to be reported.
‘E’ stands for ‘exception’ and means that the Auditor carried out the procedures but cannot confirm the ‘standard factual finding’, or that the Auditor
was not able to carry out a specific procedure (e.g. because it was impossible to reconcile key information or data were unavailable),
‘N.A.’ stands for ‘not applicable’ and means that the Finding did not have to be examined by the Auditor and the related Procedure(s) did not have to
be carried out. The reasons of the non‐application of a certain Finding must be obvious i.e. i) if no cost was declared under a certain category then the
related Finding(s) and Procedure(s) are not applicable; ii) if the condition set to apply certain Procedure(s) are not met then the related Finding(s) and
Procedure(s) are not applicable. For instance, for ‘KIC Partners with accounts established in a currency other than the euro’ the Procedure related to
‘KIC partners with accounts established in euro’ is not applicable. Similarly, if no additional remuneration is paid, the related Finding(s) and Procedure(s)
for additional remuneration are not applicable.
Result
Ref
Procedures
Standard factual finding
(C / E / N.A.)
A
ACTUAL PERSONNEL COSTS AND UNIT COSTS CALCULATED BY THE KIC PARTNER IN ACCORDANCE WITH ITS USUAL COST ACCOUNTING PRACTICE
The Auditor draws a sample of persons whose costs were declared in the Financial Statement(s) to
carry out the procedures indicated in the consecutive points of this section A.
(
The sample should be selected randomly so that it is representative. Full coverage is required if
there are fewer than 10 people (including employees, natural persons working under a direct
contract and personnel seconded by a third party), otherwise the sample should have a minimum
of 10 people, or 10% of the total, whichever number is the highest)
The Auditor sampled ______ people out of the total of ______ people.
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Annex 4 ‐ Specific Grant Agreement No. EIT/EIT InnoEnergy/SGA20XX
Result
Ref
Procedures
Standard factual finding
(C / E / N.A.)
A.1
PERSONNEL COSTS
1) The employees were i) directly
For the persons included in the sample and working under an employment contract or equivalent
hired by the KIC Partner in
act (general procedures for individual actual personnel costs and personnel costs declared as unit
accordance with its national
costs)
legislation, ii) under the KIC
Partner’s
sole
technical
To confirm standard factual findings 1‐5 listed in the next column, the Auditor reviewed following
supervision and responsibility
information/documents provided by the KIC Partner:
and
iii)
remunerated
in
o a list of the persons included in the sample indicating the period(s) during which they
accordance with the KIC Partner’s
worked for the action, their position (classification or category) and type of contract;
usual practices.
o the payslips of the employees included in the sample;
2) Personnel costs were recorded in
o reconciliation of the personnel costs declared in the Financial Statement(s) with the
the
KIC
Partner's
accounting system (project accounting and general ledger) and payroll system;
accounts/payroll system.
o information concerning the employment status and employment conditions of personnel
included in the sample, in particular their employment contracts or equivalent;
3) Costs were adequately supported
o the KIC Partner’s usual policy regarding payroll matters (e.g. salary policy, overtime policy,
and reconciled with the accounts
variable pay);
and payroll records.
o applicable national law on taxes, labour and social security and
o any other document that supports the personnel costs declared.
4) Personnel costs did not contain
any ineligible elements.
The Auditor also verified the eligibility of all components of the retribution (see Article 5 SGA) and
recalculated the personnel costs for employees included in the sample.
5) There were no discrepancies
between the personnel costs
charged to the action and the
costs recalculated by the Auditor.
Further procedures if ‘additional remuneration’ is paid
6) The
KIC
Partner
paying
To confirm standard factual findings 6‐9 listed in the next column, the Auditor:
“additional remuneration” was a
non‐profit legal entity.
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Annex 4 ‐ Specific Grant Agreement No. EIT/EIT InnoEnergy/SGA20XX
Result
Ref
Procedures
Standard factual finding
(C / E / N.A.)
o reviewed relevant documents provided by the KIC Partner (legal form, legal/statutory 7) The amount of additional
obligations, the KIC Partner’s usual policy on additional remuneration, criteria used for its
remuneration paid corresponded
calculation, the KIC Partner's usual remuneration practice for projects funded under
to the KIC Partner’s usual
national funding schemes …);
remuneration practices and was
o recalculated the amount of additional remuneration eligible for the action based on the
consistently paid whenever the
supporting documents received (full‐time or part‐time work, exclusive or non‐exclusive
same kind of work or expertise
dedication to the action, usual remuneration paid for projects funded by national schemes)
was required.
to arrive at the applicable FTE/year and pro‐rata rate (see data collected in the course of
carrying out the procedures under A.2 ‘Productive hours’ and A.4 ‘Time recording system’). 8) The criteria used to calculate the
additional remuneration were
‘ADDITIONAL REMUNERATION’ MEANS ANY PART OF THE REMUNERATION WHICH EXCEEDS WHAT THE PERSON WOULD
objective and generally applied
BE PAID FOR TIME WORKED IN PROJECTS FUNDED BY NATIONAL SCHEMES.
by the KIC Partner regardless of
IF ANY PART OF THE REMUNERATION PAID TO THE EMPLOYEE QUALIFIES AS "ADDITIONAL REMUNERATION" AND IS
the source of funding used.
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:
9) The
amount
of
additional
remuneration included in the
(A)
IF THE PERSON WORKS FULL TIME AND EXCLUSIVELY ON THE ACTION DURING THE FULL YEAR: UP TO EUR 8
personnel costs charged to the
000/YEAR;
action was capped at EUR 8,000
(B)
IF THE PERSON WORKS EXCLUSIVELY ON THE ACTION BUT NOT FULL‐TIME OR NOT FOR THE FULL YEAR: UP TO
per
FTE/year
(up
to the
THE CORRESPONDING PRO‐RATA AMOUNT OF EUR 8 000, OR
equivalent pro‐rata amount if the
(
person did not work on the action
C)
IF THE PERSON DOES NOT WORK EXCLUSIVELY ON THE ACTION: UP TO A PRO‐RATA AMOUNT CALCULATED IN
full‐time during the year or did
ACCORDANCE TO ARTICLE 5.2.A.1.
not work exclusively on the
action).
10) The personnel costs included in
Additional procedures in case “unit costs calculated by the KIC Partner in accordance with its usual
the Financial Statement were
cost accounting practices” is applied:
calculated in accordance with
the KIC Partner's usual cost
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Annex 4 ‐ Specific Grant Agreement No. EIT/EIT InnoEnergy/SGA20XX
Result
Ref
Procedures
Standard factual finding
(C / E / N.A.)
Apart from carrying out the procedures indicated above to confirm standard factual findings 1‐5
accounting
practice.
This
and, if applicable, also 6‐9, the Auditor carried out following procedures to confirm standard factual
methodology was consistently
findings 10‐13 listed in the next column:
used in all H2020 actions.
o obtained a description of the KIC Partner's usual cost accounting practice to calculate unit 11) The employees were charged
costs;.
under the correct category.
o reviewed whether the KIC Partner's usual cost accounting practice was applied for the 12) Total personnel costs used in
Financial Statements subject of the present CFS;
calculating the unit costs were
o verified the employees included in the sample were charged under the correct category
consistent with the expenses
(in accordance with the criteria used by the KIC Partner to establish personnel categories)
recorded in the statutory
by reviewing the contract/HR‐record or analytical accounting records;
accounts.
o verified that there is no difference between the total amount of personnel costs used in 13) Any estimated or budgeted
calculating the cost per unit and the total amount of personnel costs recorded in the
element used by the KIC Partner
statutory accounts;
in its unit‐cost calculation were
relevant
for
calculating
o verified whether actual personnel costs were adjusted on the basis of budgeted or
personnel
costs
and
estimated elements and, if so, verified whether those elements used are actually relevant
corresponded to objective and
for the calculation, objective and supported by documents.
verifiable information.
14) The natural persons worked
For natural persons included in the sample and working with the KIC Partner under a direct contract
under conditions similar to
other than an employment contract, such as consultants (no subcontractors).
those of an employee, in
To confirm standard factual findings 14‐17 listed in the next column the Auditor reviewed following
particular regarding the way the
information/documents provided by the KIC Partner:
work is organised, the tasks that
are
performed
and
the
o the contracts, especially the cost, contract duration, work description, place of work,
ownership of the results and reporting obligations to the KIC Partner;
premises where they are
performed.
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Annex 4 ‐ Specific Grant Agreement No. EIT/EIT InnoEnergy/SGA20XX
Result
Ref
Procedures
Standard factual finding
(C / E / N.A.)
o the employment conditions of staff in the same category to compare costs and;
o any other document that supports the costs declared and its registration (e.g. invoices,
accounting records, etc.).
15) The results of work carried out
belong to the KIC Partner, or if
not, the KIC Partner has
obtained all necessary rights to
fulfil its obligations as if those
results were generated by itself.
16) Their
costs
were
not
significantly
different
from
those for staff who performed
similar
tasks
under
an
employment contract with the
KIC Partner.
17) The costs were supported by
audit evidence and registered in
the accounts.
For personnel seconded by a third party and included in the sample (not subcontractors)
18) Seconded personnel reported
to the KIC Partner and worked
To confirm standard factual findings 18‐21 listed in the next column, the Auditor reviewed
on the KIC Partner’s premises
following information/documents provided by the KIC Partner:
(unless otherwise agreed with
o their secondment contract(s) notably regarding costs, duration, work description, place of
the KIC Partner).
work and ownership of the results;
19) The results of work carried out
o if there is reimbursement by the KIC Partner to the third party for the resource made
belong to the KIC Partner, or if
available (in‐kind contribution against payment): any documentation that supports the
not, the KIC Partner has
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Annex 4 ‐ Specific Grant Agreement No. EIT/EIT InnoEnergy/SGA20XX
Result
Ref
Procedures
Standard factual finding
(C / E / N.A.)
costs declared (e.g. contract, invoice, bank payment, and proof of registration in its
obtained all necessary rights to
accounting/payroll, etc.) and reconciliation of the Financial Statement(s) with the
fulfil its obligations as if those
accounting system (project accounting and general ledger) as well as any proof that the
results were generated by itself.
amount invoiced by the third party did not include any profit.
If personnel is seconded against
o if there is no reimbursement by the KIC Partner to the third party for the resource made
payment:
available (in‐kind contribution free of charge): a proof of the actual cost borne by the Third 20) The costs declared were
Party for the resource made available free of charge to the KIC Partner such as a statement
supported with documentation
of costs incurred by the Third Party and proof of the registration in the Third Party's
and recorded in the KIC
accounting/payroll,;
Partner’s accounts. The third
o any other document that supports the costs declared (e.g. invoices, etc.).
party did not include any profit.
If personnel is seconded free of
charge:
21) The costs declared did not
exceed the third party's cost as
recorded in the accounts of the
third party and were supported
with documentation.
A.2
PRODUCTIVE HOURS
22) The KIC Partner applied method
[
choose one option and delete
To confirm standard factual findings 22‐27 listed in the next column, the Auditor reviewed relevant
the others]
documents, especially national legislation, labour agreements and contracts and time records of
[A: 1720 hours]
the persons included in the sample, to verify that:
[B: the ‘total number of hours
worked’]
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Ref
Procedures
Standard factual finding
(C / E / N.A.)
o the annual productive hours applied were calculated in accordance with one of the
[C: ‘standard annual productive
methods described below,
hours’ used correspond to usual
accounting practices]
o the full‐time equivalent (FTEs) ratios for employees not working full‐time were correctly
calculated.
23) Productive
hours
were
calculated annually.
If the KIC Partner applied method B, the auditor verified that the correctness in which the total
number of hours worked was calculated and that the contracts specified the annual workable 24) For employees not working full‐
hours.
time the full‐time equivalent
(FTE) ratio
was correctly
If the KIC Partner applied method C, the auditor verified that the ‘annual productive hours’ applied
applied.
when calculating the hourly rate were equivalent to at least 90 % of the ‘standard annual workable
If the KIC Partner applied method B.
hours’. The Auditor can only do this if the calculation of the standard annual workable hours can 25) The calculation of the number
be supported by records, such as national legislation, labour agreements, and contracts.
of ‘annual workable hours’,
overtime and absences was
KIC PARTNER'S PRODUCTIVE HOURS' FOR PERSONS WORKING FULL TIME SHALL BE ONE OF THE FOLLOWING
verifiable
based
on
the
METHODS:
documents provided by the KIC
A. 1720 ANNUAL PRODUCTIVE HOURS (PRO‐RATA FOR PERSONS NOT WORKING FULL‐TIME)
Partner.
B. THE TOTAL NUMBER OF HOURS WORKED BY THE PERSON FOR THE KIC PARTNER IN THE YEAR (THIS METHOD IS 25.1) The KIC Partner calculates the
ALSO REFERRED TO AS ‘TOTAL NUMBER OF HOURS WORKED’ IN THE NEXT COLUMN). THE CALCULATION OF THE
hourly rates per full financial
TOTAL NUMBER OF HOURS WORKED WAS DONE AS FOLLOWS: ANNUAL WORKABLE HOURS OF THE PERSON
year following procedure A.3
ACCORDING TO THE EMPLOYMENT CONTRACT, APPLICABLE LABOUR AGREEMENT OR NATIONAL LAW PLUS
(method B is not allowed for
OVERTIME WORKED MINUS ABSENCES (SUCH AS SICK LEAVE OR SPECIAL LEAVE).
partners calculating hourly
C. THE STANDARD NUMBER OF ANNUAL HOURS GENERALLY APPLIED BY THE KIC PARTNER FOR ITS PERSONNEL IN
rates per month).
ACCORDANCE WITH ITS USUAL COST ACCOUNTING PRACTICES (THIS METHOD IS ALSO REFERRED TO AS
15
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Result
Ref
Procedures
Standard factual finding
(C / E / N.A.)
‘STANDARD ANNUAL PRODUCTIVE HOURS’ IN THE NEXT COLUMN). THIS NUMBER MUST BE AT LEAST 90% OF If the KIC Partner applied method C.
THE STANDARD ANNUAL WORKABLE HOURS.
26) The calculation of the number
of ‘standard annual workable
hours’ was verifiable based on
‘ANNUAL WORKABLE HOURS’ MEANS THE PERIOD DURING WHICH THE PERSONNEL MUST BE WORKING, AT THE
the documents provided by the
EMPLOYER’S DISPOSAL AND CARRYING OUT HIS/HER ACTIVITY OR DUTIES UNDER THE EMPLOYMENT CONTRACT,
KIC Partner.
APPLICABLE COLLECTIVE LABOUR AGREEMENT OR NATIONAL WORKING TIME LEGISLATION.
27) The ‘annual productive hours’
used for calculating the hourly
rate were consistent with the
usual cost accounting practices
of the KIC Partner and were
equivalent to at least 90 % of
the ‘annual workable hours’.
A.3
HOURLY PERSONNEL RATES
28) The KIC Partner applied [
choose
one option and delete the
I) For unit costs calculated in accordance to the KIC Partner's usual cost accounting practice (unit
other]:
costs):
[Option I: “Unit costs (hourly
If the KIC Partner has a "Certificate on Methodology to calculate unit costs " (CoMUC) approved by
rates) were calculated in
the Commission, the KIC Partner provides the Auditor with a description of the approved
accordance
with
the
KIC
methodology and the Commission’s letter of acceptance. The Auditor verified that the KIC Partner
Partner’s usual cost accounting
has indeed used the methodology approved. If so, no further verification is necessary.
practices”]
If the KIC Partner does not have a "Certificate on Methodology" (CoMUC) approved by the
[Option II: Individual hourly
Commission, or if the methodology approved was not applied, then the Auditor:
rates were applied]
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Result
Ref
Procedures
Standard factual finding
(C / E / N.A.)
o reviewed the documentation provided by the KIC Partner, including manuals and internal
For option I concerning unit costs
guidelines that explain how to calculate hourly rates;
and if the KIC Partner applies the
methodology approved by the
o recalculated the unit costs (hourly rates) of staff included in the sample following the
Commission (CoMUC):
results of the procedures carried out in A.1 and A.2.
29) The KIC Partner used the
II) For individual hourly rates:
Commission‐approved metho‐
The Auditor:
dology to calculate hourly rates.
It
corresponded
to
the
o reviewed the documentation provided by the KIC Partner, including manuals and internal
guidelines that explain how to calculate hourly rates;
organisation's
usual
cost
accounting practices and was
o recalculated the hourly rates of staff included in the sample (recalculation of all hourly
applied consistently for all
rates if the KIC Partner uses annual rates, recalculation of three months selected randomly
activities irrespective of the
for every year and person if the Beneficiary uses monthly rates) following the results of the
source of funding.
procedures carried out in A.1 and A.2.
o (only in case of monthly rates) confirmed that the time spent on parental leave is not
For option I concerning unit costs
deducted, and that, if parts of the basic remuneration are generated over a period longer
and if the KIC Partner applies a
than a month, the KIC Partner has included only the share which is generated in the month.
methodology not approved by the
Commission:
“UNIT COSTS CALCULATED BY THE KIC PARTNER IN ACCORDANCE WITH ITS USUAL COST ACCOUNTING PRACTICES”:
30) The unit costs re‐calculated by
IT IS CALCULATED BY DIVIDING THE TOTAL AMOUNT OF PERSONNEL COSTS OF THE CATEGORY TO WHICH THE EMPLOYEE
the Auditor were the same as
BELONGS VERIFIED IN LINE WITH PROCEDURE A.1 BY THE NUMBER OF FTE AND THE ANNUAL TOTAL PRODUCTIVE
the rates applied by the KIC
HOURS OF THE SAME CATEGORY CALCULATED BY THE KIC PARTNER IN ACCORDANCE WITH PROCEDURE A.2.
Partner.
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Result
Ref
Procedures
Standard factual finding
(C / E / N.A.)
HOURLY RATE FOR INDIVIDUAL ACTUAL PERSONAL COSTS:
For option II concerning individual
IT IS CALCULATED FOLLOWING ONE OF THE TWO OPTIONS BELOW:
hourly rates:
A) [OPTION BY DEFAULT] BY DIVIDING THE ACTUAL ANNUAL AMOUNT OF PERSONNEL COSTS OF AN EMPLOYEE VERIFIED 31) The individual rates re‐
IN LINE WITH PROCEDURE A.1 BY THE NUMBER OF ANNUAL PRODUCTIVE HOURS VERIFIED IN LINE WITH PROCEDURE
calculated by the Auditor were
A.2. (FULL FINANCIAL YEAR HOURLY RATE);
the same as the rates applied by
B)
BY DIVIDING THE ACTUAL MONTHLY AMOUNT OF PERSONNEL COSTS OF AN EMPLOYEE VERIFIED IN LINE WITH
the KIC Partner.
PROCEDURE A.1 BY 1/12 OF THE NUMBER OF ANNUAL PRODUCTIVE HOURS VERIFIED IN LINE WITH PROCEDURE
A.2.(MONTHLY HOURLY RATE).
31.1) The KIC Partner used only one
option (per full financial year or
per month) throughout each
financial year examined.
31.2) The hourly rates do not
include
additional
remuneration.
A.4
TIME RECORDING SYSTEM
32) All persons recorded their time
To verify that the time recording system ensures the fulfilment of all minimum requirements and
dedicated to the action on a
that the hours declared for the action were correct, accurate and properly authorised and
daily/ weekly/ monthly basis
supported by documentation, the Auditor made the following checks for the persons included in
using a paper/computer‐based
the sample that declare time as worked for the action on the basis of time records:
system. (
delete the answers
that are not applicable)
o description of the time recording system provided by the KIC Partner (registration,
authorisation, processing in the HR‐system);
33) Their
time‐records
were
o its actual implementation;
authorised at least monthly by
the project manager or other
o time records were signed at least monthly by the employees (on paper or electronically)
superior.
and authorised by the project manager or another manager;
o the hours declared were worked within the project period;
34) Hours declared were worked
within the project period and
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Result
Ref
Procedures
Standard factual finding
(C / E / N.A.)
were consistent with the
o there were no hours declared as worked for the action if HR‐records showed absence due
presences/absences recorded
to holidays or sickness (further cross‐checks with travels are carried out in B.1 below) ;
in HR‐records.
o the hours charged to the action matched those in the time recording system.
35) There were no discrepancies
ONLY THE HOURS WORKED ON THE ACTION CAN BE CHARGED. ALL WORKING TIME TO BE CHARGED SHOULD BE
between the number of hours
RECORDED THROUGHOUT THE DURATION OF THE PROJECT, ADEQUATELY SUPPORTED BY EVIDENCE OF THEIR REALITY
charged to the action and the
AND RELIABILITY (SEE SPECIFIC PROVISIONS BELOW FOR PERSONS WORKING EXCLUSIVELY FOR THE ACTION WITHOUT
number of hours recorded.
TIME RECORDS).
If the persons are working exclusively for the action and without time records
36) The exclusive dedication is
supported by a declaration
For the persons selected that worked exclusively for the action without time records, the Auditor
signed by the KIC Partner’s and
verified evidence available demonstrating that they were in reality exclusively dedicated to the
by
any
other
evidence
action and that the KIC Partner signed a declaration confirming that they have worked exclusively
gathered.
for the action.
B
COSTS OF SUBCONTRACTING
B.1
The Auditor obtained the detail/breakdown of subcontracting costs and sampled ______ cost items 37) The
use
of
claimed
selected randomly (
full coverage is required if there are fewer than 10 items, otherwise the sample
subcontracting
costs
was
should have a minimum of 10 item, or 10% of the total, whichever number is highest).
foreseen in Annex 1 and costs
were declared in the Financial
To confirm standard factual findings 37‐41 listed in the next column, the Auditor reviewed the
Statements
under
the
following for the items included in the sample:
subcontracting category.
o the use of subcontractors was foreseen in Annex 1;
38) There were documents of
o subcontracting costs were declared in the subcontracting category of the Financial
requests to different providers,
Statement;
different offers and assessment
o supporting documents on the selection and award procedure were followed;
of the offers before selection of
the provider in line with internal
procedures and procurement
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Result
Ref
Procedures
Standard factual finding
(C / E / N.A.)
o the KIC Partner ensured best value for money (key elements to appreciate the respect of
rules.
Subcontracts
were
this principle are the award of the subcontract to the bid offering best price‐quality ratio,
awarded in accordance with the
under conditions of transparency and equal treatment. In case an existing framework
principle of best value for
contract was used the KIC Partner ensured it was established on the basis of the principle
money.
of best value for money under conditions of transparency and equal treatment).
(When different offers were not
In particular,
collected the Auditor explains
the reasons provided by the KIC
i.
if the KIC Partner acted as a contracting authority within the meaning of Directive
Partner under the caption
2004/18/EC (or 2014/24/EU) or of Directive 2004/17/EC (or 2014/25/EU), the Auditor
“Exceptions” of the Report. The
verified that the applicable national law on public procurement was followed and that
Commission will analyse this
the subcontracting complied with the Terms and Conditions of the Agreement.
information
to
evaluate
ii.
if the KIC Partner did not fall under the above‐mentioned category the Auditor verified
whether these costs might be
that the KIC Partner followed their usual procurement rules and respected the Terms and
accepted as eligible)
Conditions of the Agreement.
.
For the items included in the sample the Auditor also verified that:
39) The subcontracts were not
awarded to other KIC Partners
o the subcontracts were not awarded to other KIC Partners in the consortium;
of the consortium.
o there were signed agreements between the KIC Partner and the subcontractor;
40) All
subcontracts
were
o there was evidence that the services were provided by subcontractor;
supported
by
signed
agreements between the KIC
Partner and the subcontractor.
41) There was evidence that the
services were provided by the
subcontractors.
C
COSTS OF PROVIDING FINANCIAL SUPPORT TO THIRD PARTIES
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Result
Ref
Procedures
Standard factual finding
(C / E / N.A.)
C.1
The Auditor obtained the detail/breakdown of the costs of providing financial support to third parties
and sampled ______ cost items selected randomly (
full coverage is required if there are fewer than
10 items, otherwise the sample should have a minimum of 10 item, or 10% of the total, whichever
number is highest).
The Auditor verified that the following minimum conditions were met:
42) All minimum conditions were
met
a) the maximum amount of financial support for each third party did not exceed EUR 60 000,
unless explicitly mentioned in Annex 1;
b) the financial support to third parties was agreed in Annex 1 of the Agreement and the
other provisions on financial support to third parties included in Annex 1 were respected.
D
OTHER ACTUAL DIRECT COSTS
D.1
COSTS OF TRAVEL AND RELATED SUBSISTENCE ALLOWANCES
43) Costs were incurred, approved
The Auditor sampled ______ cost items selected randomly (
full coverage is required if there are
and reimbursed in line with the
fewer than 10 items, otherwise the sample should have a minimum of 10 item, or 10% of the total,
KIC Partner's usual policy for
whichever number is the highest).
travels.
The Auditor inspected the sample and verified that:
44) There was a link between the
o travel and subsistence costs were consistent with the KIC Partner 's usual policy for travel.
trip and the action.
In this context, the KIC Partner provided evidence of its normal policy for travel costs (e.g.
use of first class tickets, reimbursement by the KIC Partner on the basis of actual costs, a 45) The supporting documents
lump sum or per diem) to enable the Auditor to compare the travel costs charged with this
were consistent with each
policy;
other regarding subject of the
trip, dates, duration and
o travel costs are correctly identified and allocated to the action (e.g. trips are directly linked
reconciled with time records
to the action) by reviewing relevant supporting documents such as minutes of meetings,
and accounting.
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Result
Ref
Procedures
Standard factual finding
(C / E / N.A.)
workshops or conferences, their registration in the correct project account, their 46) No ineligible costs or excessive
consistency with time records or with the dates/duration of the workshop/conference;
or reckless expenditure was
declared.
o no ineligible costs or excessive or reckless expenditure was declared (see Article 5.5 SGA).
D.2
COSTS FOR EQUIPMENT, INFRASTRUCTURE OR OTHER ASSETS
47) Procurement rules, principles
and guides were followed.
The Auditor sampled ______ cost items selected randomly (
full coverage is required if there are
fewer than 10 items, otherwise the sample should have a minimum of 10 item, or 10% of the total, 48) There was a link between the
whichever number is the highest).
grant agreement and the asset
charged to the action.
For “equipment, infrastructure or other assets” [from now on called “asset(s)”] selected in the
sample the Auditor verified that:
49) The asset charged to the action
was traceable to the accounting
o the assets were acquired in conformity with the KIC Partner's internal guidelines and
procedures;
records and the underlying
documents.
o they were correctly allocated to the action (with supporting documents such as delivery
note invoice or any other proof demonstrating the link to the action)
50) The depreciation method used
to charge the asset to the action
o they were entered in the accounting system;
was in line with the applicable
o the extent to which the assets were used for the action (as a percentage) was supported
rules of the KIC Partner's
by reliable documentation (e.g. usage overview table);
country and the KIC Partner's
usual accounting policy.
The Auditor recalculated the depreciation costs and verified that they were in line with the 51) The
amount
charged
applicable rules in the KIC Partner’s country and with the KIC Partner’s usual accounting policy (e.g.
corresponded to the actual
depreciation calculated on the acquisition value).
usage for the action.
The Auditor verified that no ineligible costs such as deductible VAT, exchange rate losses, excessive
or reckless expenditure were declared (see Article 5 SGA).
52) No ineligible costs or excessive
In case the option concerning the declaration of the cost of purchasing equipment,
or reckless expenditure were
infrastructure or other assets was used, the Auditor verified that the limitations set out in Article
declared.
5.2. Section D.2 SGA were complied with.
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Result
Ref
Procedures
Standard factual finding
(C / E / N.A.)
D.3
COSTS OF OTHER GOODS AND SERVICES
53) Contracts for works or services
The Auditor sampled ______ cost items selected randomly (
full coverage is required if there are
did not cover tasks described in
fewer than 10 items, otherwise the sample should have a minimum of 10 item, or 10% of the total,
Annex 1.
whichever number is highest).
54) Costs were allocated to the
For the purchase of goods, works or services included in the sample the Auditor verified that:
correct action and the goods
were not placed in the
o the contracts did not cover tasks described in Annex 1;
inventory
of
durable
o they were correctly identified, allocated to the proper action, entered in the accounting
equipment.
system (traceable to underlying documents such as purchase orders, invoices and
accounting);
55) The costs were charged in line
with
the
KIC
Partner’s
o the goods were not placed in the inventory of durable equipment;
accounting policy and were
o the costs charged to the action were accounted in line with the KIC Partner’s usual
adequately supported.
accounting practices;
56) No ineligible costs or excessive
o no ineligible costs or excessive or reckless expenditure were declared (see Article 5 SGA).
or reckless expenditure were
declared.
For
internal
In addition, the Auditor verified that these goods and services were acquired in conformity with
invoices/charges only the cost
the KIC Partner 's internal guidelines and procedures, in particular:
element was charged, without
o if KIC Partner acted as a contracting authority within the meaning of Directive 2004/18/EC
any mark‐ups.
(or 2014/24/EU) or of Directive 2004/17/EC (or 2014/25/EU), the Auditor verified that the
applicable national law on public procurement was followed and that the procurement 57) Procurement rules, principles
contract complied with the Terms and Conditions of the Agreement.
and guides were followed.
There were documents of
o if the KIC Partner did not fall into the category above, the Auditor verified that the KIC
requests to different providers,
Partner followed their usual procurement rules and respected the Terms and Conditions
different offers and assessment
of the Agreement.
of the offers before selection of
23
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Result
Ref
Procedures
Standard factual finding
(C / E / N.A.)
For the items included in the sample the Auditor also verified that:
the provider in line with internal
procedures and procurement
o the KIC Partner ensured best value for money (key elements to appreciate the respect of
rules. The purchases were
this principle are the award of the contract to the bid offering best price‐quality ratio,
made in accordance with the
under conditions of transparency and equal treatment. In case an existing framework
principle of best value for
contract was used the Auditor also verified that the KIC Partner ensured it was established
money.
on the basis of the principle of best value for money under conditions of transparency and
equal treatment);
(When different offers were not
collected the Auditor explains
SUCH GOODS AND SERVICES INCLUDE, FOR INSTANCE, CONSUMABLES AND SUPPLIES, DISSEMINATION (INCLUDING
the reasons provided by the KIC
OPEN ACCESS), PROTECTION OF RESULTS, SPECIFIC EVALUATION OF THE ACTION IF IT IS REQUIRED BY THE AGREEMENT,
Partner under the caption
CERTIFICATES ON THE FINANCIAL STATEMENTS IF THEY ARE REQUIRED BY THE AGREEMENT AND CERTIFICATES ON THE
“Exceptions” of the Report. The
METHODOLOGY, TRANSLATIONS, REPRODUCTION.
Commission will analyse this
information
to
evaluate
whether these costs might be
accepted as eligible)
D.4
AGGREGATED CAPITALISED AND OPERATING COSTS OF RESEARCH INFRASTRUCTURE
58) The costs declared as direct
The Auditor ensured the existence of a positive ex‐ante assessment (issued by the EC Services) of
costs for Large Research
the cost accounting methodology of the KIC Partner allowing it to apply the guidelines on direct
Infrastructures
(in
the
costing for large research infrastructures in Horizon 2020.
appropriate line of the Financial
Statement) comply with the
methodology described in the
In the cases that a positive ex‐ante assessment has been issued (see the standard factual findings
positive ex‐ante assessment
58‐59 on the next column),
report.
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Result
Ref
Procedures
Standard factual finding
(C / E / N.A.)
The Auditor ensured that the KIC Partner has applied consistently the methodology that is 59) Any difference between the
explained and approved in the positive ex ante assessment;
methodology applied and the
one positively assessed was
In the cases that a positive ex‐ante assessment has NOT been issued (see the standard factual
extensively
described
and
findings 60 on the next column),
adjusted accordingly.
The Auditor verified that no costs of Large Research Infrastructure have been charged as direct
costs in any costs category;
60) The direct costs declared were
In the cases that a draft ex‐ante assessment report has been issued with recommendation for further
free from any indirect costs
changes (see the standard factual findings 60 on the next column),
items related to the Large
The Auditor followed the same procedure as above (when a positive ex‐ante assessment has
Research Infrastructure.
NOT yet been issued) and paid particular attention (testing reinforced) to the cost items for
which the draft ex‐ante assessment either rejected the inclusion as direct costs for Large
Research Infrastructures or issued recommendations.
D.5
Costs of internally invoiced goods and services
61) The costs of internally invoiced
goods and services included in
the Financial Statement were
The Auditor sampled cost items selected randomly (
full coverage is required if there are fewer than
calculated in accordance with
10 items, otherwise the sample should have a minimum of 10 item, or 10% of the total, whichever
the KIC Partner's usual cost
number is highest).
accounting practice.
62) The cost accounting practices
To confirm standard factual findings 61‐65 listed in the next column, the Auditor:
used to calculate the costs of
internally invoiced goods and
o obtained a description of the KIC Partner's usual cost accounting practice to calculate costs
services were applied by the
of internally invoiced goods and services (unit costs);
KIC Partner in a consistent
manner based on objective
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Annex 4 ‐ Specific Grant Agreement No. EIT/EIT InnoEnergy/SGA20XX
Result
Ref
Procedures
Standard factual finding
(C / E / N.A.)
o reviewed whether the KIC Partner's usual cost accounting practice was applied for the
criteria regardless of the
Financial Statements subject of the present CFS;
source of funding.
o ensured that the methodology to calculate unit costs is being used in a consistent manner,
based on objective criteria, regardless of the source of funding;
o verified that any ineligible items or any costs claimed under other budget categories, in 63) The unit cost is calculated using
particular indirect costs, have not been taken into account when calculating the costs of
the actual costs for the good or
internally invoiced goods and services (see Article 5 SGA);
service recorded in the KIC
Partner’s accounts, excluding
o verified whether actual costs of internally invoiced goods and services were adjusted on
any ineligible cost or costs
the basis of budgeted or estimated elements and, if so, verified whether those elements
included in other budget
used are actually relevant for the calculation, objective and verifiable information.
categories.
o verified that any costs of items which are not directly linked to the production of the 64) The unit cost excludes any
invoiced goods or service (e.g. supporting services like cleaning, general accountancy,
costs of items which are not
administrative support, etc. not directly used for production of the good or service) have
directly linked to the
not been taken into account when calculating the costs of internally invoiced goods and
production of the invoiced
services.
goods or service.
o verified that any costs of items used for calculating the costs of internally invoiced goods
and services are supported by audit evidence and registered in the accounts.
65) The costs items used for
calculating the actual costs of
internally invoiced goods and
services were relevant,
reasonable and correspond to
objective and verifiable
information.
E
USE OF EXCHANGE RATES
E.1
a) For KIC Partners with accounts established in a currency other than euros
66) The exchange rates used to
convert other currencies into
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Annex 4 ‐ Specific Grant Agreement No. EIT/EIT InnoEnergy/SGA20XX
Result
Ref
Procedures
Standard factual finding
(C / E / N.A.)
The Auditor sampled ______ cost items selected randomly and verified that the exchange rates used
Euros were in accordance with
for converting other currencies into euros were in accordance with the following rules established in
the rules established of the
the Agreement (
full coverage is required if there are fewer than 10 items, otherwise the sample
Specific Agreement and there
should have a minimum of 10 item, or 10% of the total, whichever number is highest):
was no difference in the final
figures.
COSTS RECORDED IN THE ACCOUNTS IN A CURRENCY OTHER THAN EURO 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
(https://www.ecb.int/stats/exchange/eurofxref/html/index.en.html ), 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
(http://ec.europa.eu/budget/contracts_grants/info_contracts/inforeuro/inforeuro_en.cfm),
DETERMINED OVER THE CORRESPONDING REPORTING PERIOD.
b) For KIC Partners with accounts established in euros
The Auditor sampled ______ cost items selected randomly and verified that the exchange rates used
for converting other currencies into euros were in accordance with the following rules established in
the Agreement (
full coverage is required if there are fewer than 10 items, otherwise the sample 67) The KIC Partner applied its usual
should have a minimum of 10 item, or 10% of the total, whichever number is highest):
accounting practices.
COSTS INCURRED IN ANOTHER CURRENCY SHALL BE CONVERTED INTO EURO BY APPLYING THE KIC PARTNER’S USUAL
ACCOUNTING PRACTICES.
[legal name of the audit firm]
[name and function of an authorised representative]
<dd Month yyyy>
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Annex 4 ‐ Specific Grant Agreement No. EIT/EIT InnoEnergy/SGA20XX
<Signature of the Auditor>
28