Common use of Proof of expenditure Clause in Contracts

Proof of expenditure. 1. Costs incurred by the Project Partner shall be supported by receipted invoices or alternatively by accounting documents of equivalent probative value. 2. Proof of expenditure shall be provided by the Project Partner to the Project Promoter to the extent necessary for the Project Promoter to comply with its obligations to the Programme Operator. Costs incurred by a Project Promoter or Partner shall be supported by receipted invoices, or alternatively by accounting documents of equivalent probative value (Article 8.12.1 of the Regulation). An audit report or a report by a competent public officer shall also be accepted as sufficient proof of expenditure incurred for project partners whose primary location is outside the Beneficiary State, as per paragraphs 3 and 3 of Article 8.12. These reports are intended to facilitate proof of expenditure; however, in the case of partnerships that do not involve significant expenditures on the partner’s side, it is always possible (and may be simpler) to provide original documents as proof (e.g. receipted invoices, payroll extracts, etc). When this option is chosen, it is important to specify in advance if these have to be translated into the promoter’s national language. When the report option is used, please be aware that the cost of obtaining the report is considered eligible expenditure and should therefore be included in the budget allocation for the partner. Please note that this does not mean necessarily that all these accounting documents (the proof of expenditure) are required to be submitted each time a payment claim is submitted. The Regulation does not require that 100% of proof of expenditure is submitted to the Programme Operator. The Regulation requires the Programme Operator to set up systems and control mechanisms which ensure a sufficient level of control over the expenditure that is incurred by Project Promoters and Partners. If chosen, this option should be aligned to the proof of expenditure system that is applicable to the expenditure incurred by the Project Promoter. The Regulation provides for an approach where it should be considered sufficient that the Partner can make available the original accounting documents (the proof of expenditure) when required to do so, e.g. in case of a monitoring visit or an audit. These aspects need to be regulated in the Partnership Agreement with as much detail as possible. 3. When required, proof of expenditure shall take the following form: [see different options below]. 4. Indirect costs claimed by the application of a flat rate do not need to be supported by accounting documents. This provision should outline the reporting obligations of the Project Partner, including content and frequency of such reports, as well as a reference to templates, if any. The Project Promoter shall by way of this provision ensure that it receives in a timely manner all the necessary information to comply with its reporting obligations to the Programme Operator.

Proof of expenditure. 1. Costs incurred by the Project Partner shall be supported by receipted invoices or alternatively by accounting documents of equivalent probative value. 2. Proof of expenditure shall be provided by the Project Partner to the Project Promoter to the extent necessary for the Project Promoter to comply with its obligations to the Programme Operator. Costs incurred by a Project Promoter or Partner shall be supported by receipted invoices, or alternatively by accounting documents of equivalent probative value (Article 8.12.1 of the Regulation). An audit report or a report by a competent public officer shall also be accepted as sufficient proof of expenditure incurred for project partners whose primary location is outside the Beneficiary State, as per paragraphs 3 and 3 of Article 8.12. These reports are intended to facilitate proof of expenditure; however, in the case of partnerships that do not involve significant expenditures on the partner’s side, it is always possible (and may be simpler) to provide original documents as proof (e.g. receipted invoices, payroll extracts, etc). When this option is chosen, it is important to specify in advance if these have to be translated into the promoter’s national language. When the report option is used, please be aware that the cost of obtaining the report is considered eligible expenditure and should therefore be included in the budget allocation for the partner. Please note that this does not mean necessarily that all these accounting documents (the proof of expenditure) are required to be submitted each time a payment claim is submitted. The Regulation does not require that 100% of proof of expenditure is submitted to the Programme Operator. The Regulation requires the Programme Operator to set up systems and control mechanisms which ensure a sufficient level of control over the expenditure that is incurred by Project Promoters and Partners. If chosen, this option should be aligned to the proof of expenditure system that is applicable to the expenditure incurred by the Project Promoter. The Regulation provides for an approach where it should be considered sufficient that the Partner can make available the original accounting documents (the proof of expenditure) when required to do so, e.g. in case of a monitoring visit or an audit. These aspects need to be regulated in the Partnership Agreement with as much detail as possible. 3. . When required, proof of expenditure shall take the following form: [see different options below]. 4. Indirect costs claimed by the application of a flat rate do not need to be supported by accounting documents. This provision should outline the reporting obligations of the Project Partner, including content and frequency of such reports, as well as a reference to templates, if any. The Project Promoter shall by way of this provision ensure that it receives in a timely manner all the necessary information to comply with its reporting obligations to the Programme Operator.

Proof of expenditure. 1. Costs incurred by the Project Partner shall be supported by receipted invoices or alternatively by accounting documents of equivalent probative value. 2. Proof of expenditure shall take the following form: [see different options below]. The proof of expenditure to be provided submitted by the Project Partner to the Project Promoter to the extent necessary for the Project Promoter to comply with its obligations to the Programme Operator. Costs incurred by may take a Project Promoter form of: receipted invoices or Partner shall be supported by receipted invoices, or alternatively by accounting documents of equivalent probative value (Article 8.12.1 Articles 10 and 11 of the Regulation). An audit report or Grant Contract) a report by a competent public officer an independent auditor, qualified to carry out statutory audits of accounting documents, certifying that the reported costs are incurred in accordance with the Grant Contract, the national law and relevant national accounting practices shall also be accepted as sufficient proof of expenditure incurred for project partners whose primary location is outside in one of the Beneficiary State, as per paragraphs 3 and 3 of Article 8.12. These reports Donor States or project partners that are intended to facilitate proof of expenditure; however, in the case of partnerships that do not involve significant expenditures on the partner’s side, it is always possible (and may be simplerinternational organisations or bodies or agencies thereof When option 1) to provide original documents as proof (e.g. receipted invoices, payroll extracts, etc). When this option is chosen, it is important to specify in advance if these have to be translated into : the promoter’s national language. When the report option is used, please be aware that the cost of obtaining the report is considered eligible expenditure related provisions and should therefore be included in the budget allocation for the partner. Please note that this does not mean necessarily that all these accounting documents (the proof of expenditure) are required to be submitted each time a payment claim is submitted. The Regulation does not require that 100% of proof of expenditure is submitted to the Programme Operator. The Regulation requires the Programme Operator to set up systems and control mechanisms which ensure a sufficient level of control over the expenditure that is incurred by Project Promoters and Partners. If chosen, this option requirements should be aligned to the proof of expenditure system that is applicable to the expenditure incurred by the Project Promoter. The Regulation provides for an approach where it should be considered sufficient Promoter This does not mean necessarily that all the Partner can make available the original accounting supporting documents (the proof of expenditure) when are required to do sobe submitted each time a financial report is submitted. The technical and financial reports will be accompanied by a sample of copies of technical and financial-accounting supporting documents (including account statements related to the accounts for the project in national currency and Euro, e.g. in case of a monitoring visit or an audit. These aspects need to be regulated in for the Partnership Agreement with as much detail as possible. 3. When required, proof of expenditure shall take entire reported period and the following form: [see different options below]. 4. Indirect costs claimed by the application of a flat rate do not need to be supported by accounting documents. This provision should outline balance sheet for the reporting obligations of the Project Partner, including content and frequency of such reportsperiod), as well as a reference declaration on own responsibility regarding the avoidance of double financing, signed by the legal manager of the partner, in original In accordance with art. 10.10 of the Grant Contract, on the copies of the supporting documents presented in the report it must be possible to templatesclearly see the unique identification number of the Grant contract in which they were made and the amount settled within the project, if anyin case of partial payments. The it is important to specify in advance that all the proof of expenditure has to be translated into the promoter’s national language In a case of option 2): the report issued by a qualified independent auditor to perform audit checks on the accounting documents, certifying that all reported costs are incurred in accordance with the Grant Contract, national legislation and and national accounting practices will be accepted as sufficient proof of expenses incurred for project partners; the cost of the report is considered eligible project cost and the Project Promoter and Project Partner should ensure sufficient funds are set aside in the project budget to cover this cost upon request by the Fund Operator, FMO/the EFTA Board of Auditors/the Office of the Auditor General of Norway, the Project Promoter or Project Partner shall by way of this provision ensure that it receives in a timely manner all the necessary information to comply with its reporting obligations grant access to the Programme Operator.supporting documents on the basis of which the report was issued