Finance

EC Audit Requirements

EU audits

When the European Commission Auditors visit UoE the audits are generally of a financial nature. They will concentrate on checking the costs that have been claimed during the execution of a project, project accounting methodology, calculation of labour and overhead rates and underlying rates and underlying vouchers (invoices, bank statements, salary payments, timesheets, contracts of employment etc.).

In addition, the EC auditors usually like to visit the research area where the project takes place and meet with some of the members of the project team to discuss the scientific side of the project.

An example checklist of documents that need to be available and the responsible UoE department for their production during the audit is shown below (however, the information listed may vary and extend beyond this):

 

Research Grants Section is responsible for providing the following: The PI/School is responsible for providing the following:
General Information about the University  

Beneficiary’s legal registration:

  • Financial statements for the last two years and audit report of the beneficiary’s statutory auditors (required electronically prior to audit)
  • Organisation Chart
  • Benficiary’s guidelines for the financial / scientific management of projects
  • List of other EC funding received and all agreements (both closed and in progress) signed with the Commission (required electronically prior to audit)
  • Ensuring that there is a collaboration agreement in place with partners.
Receipt and distribution of Commission financial contributions  
  • Bank statement showing amount and date of advance and / or interim and final payments received (from Commission or administrative coordinator
  • Bank statements showing the interests yielded by the EC Funds
  • Only for administrative / financial coordinator - contractors bank statement showing amount and date of advance and / or interim and final payments forwarded to other members of the consortium
 
Project management information  
  • Report on the distribution of the EC financial contribution
  • Grant Agreement amendments (with date of request to the Commission)
  • Periodic activity and management reports
  • Periodic / mid-term review
  • Other non-financial deliverables specified in the Annex I to the Grant Agreement (with the date of submission to the Commission and of the Commission Approval)
General financial information  
  • Detailed breakdown of costs supporting the Financial Statement (Form C) submitted to the Commission, specifying the type of activity to which they relate and where applicable the resources provided by a third party (required electronically prior to audit
  • Back-up documentation for any costs journalled into the project from other accounts (research projects, discretionary, department)  
 Supporting documents for personnel costs  
  • Payroll / Salary slips for all project personnel (whole period of project duration)
  • Calculation of related charges (social charges such as pension, sickness, unemployment, maternity etc.)
  • Bank statements showing amount and date of bank transfer / payment receipt
  • List of all personnel in the project indicating period(s) they worked as well as positive classification / category (Temporary / Permanent) / (Grade) (required electronically prior to audit)
  • Employment contracts & SIP documents for all project personnel
  • Certified timesheets for all personnel on the project
Supporting documents for durable equipment  
  • Payroll / Salary slips for all project personnel (whole period of project duration)
  • Calculation of related charges (social charges such as pension, sickness, unemployment, maternity etc.)
  • Bank statements showing amount and date of bank transfer / payment receipt
  • List of all personnel in the project indicating period(s) they worked as well as positive classification / category (Temporary / Permanent) / (Grade) (required electronically prior to audit)
  • Employment contracts & SIP documents for all project personnel
  • Certified timesheets for all personnel on the project
Supporting documents for durable equipment  
  • Beneficiary’s guidelines for procurement of durable equipment (required electronically prior to audit)
  • Original invoices for purchase of equipment
  • Bank statements showing amount and date of payment
  • Calculation of depreciation rates, leasing or rental charge
  • Voucher / Expense account of accounting entries
  • Inventory register or fixed asset register / ledger for the equipment
  • Equipment's usage diary / register
 Note: The existence and use for the project may be checked during the audit
Supporting documents for subcontracting  
  • Beneficiary’s internal guidelines for procurement of services (required electronically prior to audit)
  • Signed original copies of subcontracts (including technical annexes)
  • Request and Commission approval for subcontracting
  • Original invoices for external assistance
  • Bank statements showing amount and date of payment
 
Supporting documents for travel  
  • Beneficiary’s internal guidelines for reimbursement of travel expenses (required electronically prior to audit)
  • Original invoices for travel and accommodation expenses - but see note 4a above.
  • Bank statements showing amount and date of payment.
  • List and date of trips by project personnel (required electronically prior to audit)
  • Authorised travel request forms
  • Voucher / Expense account of accounting entries.
 Supporting documents for consumables  
  • Beneficiary’s internal guidelines for reimbursement of Consumables (required electronically prior to audit)
  • Original invoices for Consumable expenses - but see note 4a above.
  • Bank statements showing amount and date of payment
  • Purchase order, Tendering documents
  • Voucher / Expense account of accounting entries
  • Inventory register / ledger
Supporting documents for other direct costs  
  • External Auditor Certification original signed audit certificate
  • Letter of audit engagement / appointment sent to external auditor
  • External auditor's letter of acceptance / engagement confirmation
  • External auditor's invoice