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Expenditure verification

Seminar on reporting 13 August Rezekne, Latvia. Expenditure verification. Joint Technical Secretariat. Reason for Expenditure Verification. All expenditure under a grant contract should be verified as to its: Incurrence (it really happened) Accuracy (the amounts are stated correctly)

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Expenditure verification

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  1. Seminaron reporting 13 August Rezekne, Latvia Expenditure verification Joint Technical Secretariat

  2. Reason for Expenditure Verification • All expenditure under a grant contract should be verified as to its: • Incurrence (it really happened) • Accuracy (the amounts are stated correctly) • Eligibility (the amounts satisfy the eligibility criteria) • Expenditure Verification work is contracted to competent auditors to ensure its independence 2

  3. Agreed-upon Procedures • The expenditure verification work to be done is written down in the Terms of Reference attached to the contract. • The procedures are set out in Annex 2a • Guidelines on the procedures are set out in Annex 2b • Guidelines on the procedures for checking the compilation of the consolidated report are set out in Annex 2c • The model EV report is set out in Annex 3 3

  4. EV work is divided into 4 sections • General Procedures • Conformity of Expenditure with the Budget and Analytical Review • Procedures to verify selected expenditure • Procedures for checking the compilation of the consolidated financial report (only for Beneficiary) 4

  5. General Procedures • Understand the Grant Contract • Check that the financial report meets the terms and conditions • Check the accounting and record keeping rules are complied with Article 16 of General Conditions • Check the Financial Report agrees with the accounting records • Check that correct exchange rates were used in the financial report 5

  6. Conformity of Expenditure with the Budget and Analytical Review • Check the budget is stated correctly in the report and includes any amendments • Analytical review: a review of the financial report to spot any obvious mistakes 6

  7. Procedures to verify eligibility of costs • Costs actually incurred and not double financed • Cut-off • Budget • Necessary • Records • Justified • Valuation • Classification • Compliance with Procurement, Nationality and Origin Rules 7

  8. Guidelines for the Specific Procedures The type of evidence that the auditor should look for: • Sources of information to understand the grant contract • Coverage must be 100% and report the effect of the errors on the amounts claimed 8

  9. Procedures for consolidated report The auditor of the beneficiary needs to carry out some procedures to check the compilation of the consolidated financial report: • Conformity with the model in Annex VI of Grant Contract • Inclusion of all expenditure, regardless of which part is financed by JMA • Use of the language of Grant Contract • No financial deviations over flexibility in article 9.2 of GC • Completeness and accuracy of the compilation 9

  10. Model Expenditure Verification report • There is a standard text for the report • The amount checked and the procedures made are described • The result of the verification and impact of any errors found is reported 10

  11. JTS contacts Thank You for Your attention! www.estlatrus.eu Email:info@estlatrus.eu Phone: +371 6750 9524 Address: Ausekla Str. 14-3, Riga 11

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