Selecting Expenditure for Verification Sample Clauses

Selecting Expenditure for Verification. 2.3.1 Expenditure Categories, Subcategories and Items The expenditure claimed by the Beneficiary in the Financial Report is presented under a number of expenditure categories, which on their turn can be broken down into expenditure subcategories. Expenditure subcategories can in principle be broken down into individual expenditure items or classes of expenditure items with the same or similar characteristics. The form and nature of the supporting evidence (e.g. a payment, a contract, an invoice etc) and the way expenditure is recorded (i.e. journal entries) vary with the type and nature of the expenditure and the underlying actions or transactions. However, in all cases expenditure items reflect the accounting (or financial) value of underlying actions or transactions no matter the type and nature of the action or transaction concerned.

Selecting Expenditure for Verification. The expenditure claimed by the PIU/Lead Institution in Progress Reports should be generally presented under the budget line. The form and nature of the supporting evidence (e.g. a payment, an agreement, an invoice etc.) and the way expenditure is recorded (e.g. journal entries) vary with the type and nature of the expenditure and the underlying actions or transactions. However, in all cases expenditure items should reflect the accounting (or financial) value of the underlying actions or transactions, whatever the type and nature of the action or transaction concerned. Value should be the principal factor used by the Auditor to select ex- penditure items or classes of expenditure items for verification. The Auditor selects high-value expenditure items to ensure an appropri- ate coverage of expenditure.