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Auditing EU grants

The current 7th EU Research Framework Programme is intended to contribute to an integration of and cooperation between the EU member states’ scientific and technological capacities. As part of this programme, certain research programmes are financed that are carried out by project consortiums made up of members from at least three different member or associated countries. The grant for this type of cooperation embraces the reimbursement of all costs directly associated with a sponsored project, such as for example personnel costs and the related overheads.

An audit certificate is required as soon as the amount of the grant related to the individual participants in the project exceeds EURO 375,000. This covers the results of an audit of the appropriateness of the costs incurred in the project, carried out by an external and independent auditor/certified accountant. In the case of public institutions, universities and non-profit-making research institutes, this audit may be carried out by a civil servant responsible for this type of work. The costs incurred due to the audit are fully reimbursable and should be included in the budget estimate.

A report on the results of the audit must be submitted together with a list of the reimbursable costs for each reporting period that is established separately by the EU Commission for every project. The report must only be presented once at the end of the project should it last less than two years.

Audit certificate

We carry out the audit of the costs incurred on a project in compliance with the “International Standard on Related Services” and based on the guidelines issued by the EU Commission. This audit covers in particular the calculation of the personnel expenses included in the costs of the project, the costs of sub-contracted work and other direct costs as well as the overhead costs reported, using the documents provided by the project participants. The internal controls applied in this area are also audited and, where this is appropriate, we develop suggestions for improvements in order to reduce the probability of errors and increase efficiency. The results of the audit are fully discussed with the client first and then reported to the EU Commission.
 

Certificate on methodology

In the case of major projects, it is possible to submit a certificate on methodology to the EU Commission prepared by an independent auditor or civil servant responsible for this work. This includes certification of the methods used in calculating average personnel costsand overhead costs as well as the appropriate control systems. The advantage of such a certificate lies in the fact that it is no longer necessary to submit audit certificates as part of interim reports and that the calculation of personnel and overhead costs on the basis of average rates is recognised. The certificate on methodology is valid for all projects carried out as part of the 7th Research Framework Programme.

In preparing such a certificate on methodology, we check at the outset that the average personnel costs and associated overheads are calculated in conformity with the EU Commission’s guidelines. In this way, the probability of errors in calculating the costs of the project is considerably reduced.

 

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