Verification of eligibility of the. costs declared The auditor must conduct its verification on the basis of inquiry and analysis, (re)computation, comparison, other accuracy checks, observation, inspection of records and documents and by interviewing the partner/linked third party (and the persons working for it). The auditor must examine the following documentation: the Framework Partnership and the Specific Agreement and any amendments to it; the periodical and/or final report(s); for personnel costs o salary slips; o time sheets; o contracts of employment; o other documents (e.g. personnel accounts, social security legislation, invoices, receipts, etc.); o proofs of payment; for subcontracting o the call for tender(if any); o tenders (if any); o justification for the choice of sub-contractor; o contracts with sub-contractors; o invoices; o declarations by the partner/linked third party; o proofs of payment; o other documents: e.g. national rules on public tendering if applicable, EU Directives, etc.; for travel and subsistence costs o the partner/linked third party’s internal rules on travel; o transport invoices and tickets (if applicable); o declarations by the partner/linked third party; o other documents (proofs of attendance such as minutes of meetings, reports, etc.); o proofs of payment; for equipment costs o invoices; o delivery slips / certificates of first use; o proofs of payment; o depreciation method of calculation; for costs of other goods and services o invoices; o proofs of payment; and o other relevant accounting documents. General eligibility rules The auditor must verify that the costs declared comply with the general eligibility rules set out in Article 5.1 of the Specific Agreement. In particular, the costs must: be actually incurred; be linked to the subject of the Specific Agreement and indicated in the partner/linked third party's estimated budget (i.e. the latest version of Annex 2); be necessary to implement the specific action which is the subject of the grant; be reasonable and justified, and comply with the requirements of sound financial management, in particular as regards economy and efficiency;3 have been incurred in the course of the specific action, as defined in Article 3 of the Specific Agreement (with the exception of the invoice for the audit certificate and costs relating to the submission of the final report); not be covered by another EU or Euratom grant (see below ineligible costs); be identifiable, verifiable and, in particular, recorded in the partner/linked third party's accounting records and determined according to the applicable accounting standards of the country where it is established and its usual cost-accounting practices; comply with the requirements of applicable national laws on taxes, labour and social security; be in accordance with the provisions of the Specific Agreement (see, in particular, Articles 5 and 7-9a) and have been converted to euro at the rate laid down in Article 11.6 of the Specific Agreement: o for partners/linked third parties with accounts established in a currency other than the euro: 3 To be assessed in particular on the basis of the procurement and selection procedures for service providers. Costs incurred in another currency must be converted into euros at the average of the daily euro exchange rates published in the C series of the EU Official Journal determined over the corresponding reporting period. If no daily euro exchange rate is published in the EU Official Journal for the currency in question, the rate used must be the average of the monthly accounting exchange rates established by the Commission and published on its website; o for partners/linked third parties with accounts established in euro: Costs incurred in another currency should be converted into euros applying the partner/linked third party’s usual accounting practice. The auditor must verify whether expenditure includes VAT and, if so, verify that the partner/linked third party: - cannot recover the VAT (this must be supported by a statement from the competent body) and - is not a public body acting as a public authority. The auditor should base his/her audit approach on the confidence level following a review of the partner/linked third party's internal control system. When using sampling, the auditor should indicate and justify the sampling size. Specific eligibility rules In addition, the auditor must verify that the costs declared comply with the specific cost eligibility rules set out in Article 5.2 and Articles 7.1.1, 81.1, 9.1.1, 9a.1.1 and 9a.2.1 of the Specific Agreement. Personnel costs The auditor must verify that: personnel costs have been charged and paid in respect of the actual time devoted by the partner/linked third party’s personnel to implementing the specific action (justified on the basis of time sheets or other relevant time-recording system); personnel costs were calculated on the basis of annual gross salary, wages or fees (plus obligatory social charges, but excluding any other costs) specified in an employment or other type of contract, not exceeding the average rates corresponding to the partner/linked third party’s usual policy on remuneration; the work was carried out during the period of implementation of the specific action, as defined in Article 3 the Specific Agreement; the personnel costs are not covered by another EU or Euratom grant (see below ineligible costs); for additional remunerations: the 2 conditions set out in Article 5.2.A.1 of the Specific Agreement are met (i.e. that it is part of the partner/linked third party’s usual remuneration practices and is paid in a consistent manner whenever the same kind of work or expertise is required and that the criteria used to calculate the supplementary payments are objective and generally applied by the partner/linked third party, regardless of the source of funding used); for in-house consultants: the 3 conditions set out in Article 5.2.A.2 of the Specific Agreement are met (i.e. that the in-house consultant works under the partner/linked third party’s instructions, that the result of the work carried out belongs to the partner/linked third party, and that the costs are not significantly different from those for personnel performing similar tasks under an employment contract). The auditor should have assurance that the management and accounting system ensures proper allocation of the personnel costs to various activities carried out by the partner/linked third party and funded by various donors. Subcontracting costs The auditor must verify that: the subcontracting complies with best value for money (or lowest price) and that there was no conflict of interests; the subcontracting was necessary to implement the specific action for which the grant is requested; the subcontracting was provided for in Annex 1 and Annex 2 or agreed to by the Agency at a later stage; the subcontracting is supported by accounting documents in accordance with national accounting law; public bodies have complied with the national rules on public procurement. Travel and subsistence costs The auditor must verify that travel and subsistence costs: have been charged and paid in accordance with the partner/linked third party's internal rules or usual practices; are not covered by another EU or Euratom grant (see below ineligible costs) were incurred for travels linked to action tasks set out in Annex 1 of the Specific Agreement. Equipment costs The auditor must verify that: the equipment is purchased, rented or leased at normal market prices; public bodies have complied with the national rules on public procurement; the equipment is written off, depreciation has been calculated according to the tax and accounting rules applicable to the partner/linked third party and only the portion of the depreciation corresponding to the duration of the action has been declared and the costs are not covered by another EU or Euratom grant (see below ineligible costs). Costs of other goods and services The auditor must verify that: the purchase complies with best value for money (or lowest price) and that there was no conflict of interests; public bodies have complied with the national rules on public procurement; the costs are not covered by another EU or Euratom grant (see below ineligible costs). Ineligible costs The auditor must verify that the partner/linked third party has not declared any costs that are ineligible under Article 5.4 of the Specific Agreement: costs relating to return on capital; debt and debt service charges; provisions for future losses or debts; interest owed; doubtful debts; currency exchange losses; bank costs charged by the partner/linked third party’s bank for transfers from the Agency; excessive or reckless expenditure; deductible VAT; VAT incurred by a public body acting as a public authority; costs incurred during suspension of the implementation of the action; in-kind contributions from third parties; costs declared under other EU or Euratom grants (including those awarded by a Member State and financed by the EU or Euratom budget or awarded by bodies other than the Agency for the purpose of implementing the EU or Euratom budget); in particular, indirect costs if the partner/linked third party is already receiving an operating grant financed by the EU or Euratom budget in the same period, unless they can demonstrate that the operating grant does not cover any costs of the specific action; costs incurred for permanent staff of a national administration for activities that are part of its normal activities (i.e. not undertaken only because of the grant); costs incurred for staff or representatives of EU institutions, bodies or agencies. For more information on cost eligibility, see the XXXXX Guide for applicants.
Appears in 1 contract
Samples: ec.europa.eu
Verification of eligibility of the. costs declared The auditor must conduct its verification on the basis of inquiry and analysis, (re)computation, comparison, other accuracy checks, observation, inspection of records and documents and by interviewing the partner/linked third party partner (and the persons working for it). The auditor must examine the following documentation: the Framework Partnership and the Specific Agreement and any amendments to it; the periodical and/or final report(s)report; for personnel costs o salary slips; o time sheets; 2 Directive 2006/43/EC of the European Parliament and of the Council of 17 May 2006 on statutory audits of annual accounts and consolidated accounts or similar national regulations (OJ L 157, 9.6.2006, p. 87). o contracts of employment; o other documents (e.g. personnel accounts, social security legislation, invoices, receipts, etc.); o proofs of payment; for subcontracting o the call for tender(if any)tender; o tenders (if anyapplicable); o justification for the choice of sub-contractorsubcontractor; o contracts with sub-contractorssubcontractors; o invoices; o declarations by the partner/linked third party; o proofs of payment; o other documents: e.g. national rules on public tendering if applicable, EU Directives, etc.; for other costs travel and subsistence costs o the partner/linked third party’s internal rules on travel; o transport invoices and tickets (if applicable); o declarations by the partner/linked third party; o other documents (proofs of attendance such as minutes of meetings, reports, etc.); o proofs of payment; for equipment costs o invoices; o delivery slips / certificates of first use; o proofs of payment; o depreciation method of calculation; for costs of other goods and services o invoices; o proofs of payment; and o other relevant accounting documents. General eligibility rules The auditor must verify that the costs declared comply with the general eligibility rules set out in Article 5.1 of the Specific Agreement. In particular, the costs must: be actually incurred; be linked to the subject of the Specific Agreement and indicated in the partner/linked third party's estimated budget (i.e. the latest version of Annex 2); be necessary to implement the specific action work programme which is the subject of the grant; be reasonable and justified, and comply with the requirements of sound financial management, in particular as regards economy and efficiency;3 3 To be assessed in particular on the basis of the procurement and selection procedures for service providers. have been incurred in during the course of the specific actionwork programme duration, as defined in Article 3 of the Specific Agreement (with the exception of the invoice for the audit certificate and costs relating to the submission of the final report); not be covered by another EU or Euratom grant (see below ineligible costs); be identifiable, verifiable and, in particular, recorded in the partner/linked third party's accounting records and determined according to the applicable accounting standards of the country where it is established and its usual cost-accounting practices; comply with the requirements of applicable national laws on taxes, labour and social security; be in accordance with the provisions of the Specific Agreement (see, in particular, Articles 5 and 7-9a) and have been converted to euro at the rate laid down in Article 11.6 of the Specific Agreement: o for partners/linked third parties partners with accounts established in a currency other than the euro: 3 To be assessed in particular on the basis of the procurement and selection procedures for service providers. Costs incurred in another currency must be converted into euros at the average of the daily euro exchange rates published in the C series of the EU Official Journal determined over the corresponding reporting period. If no daily euro exchange rate is published in the EU Official Journal for the currency in question, the rate used must be the average of the monthly accounting exchange rates rate established by the Commission and published on its website; o for partners/linked third parties partners with accounts established in euro: Costs incurred in another currency should be converted into euros applying the partner/linked third party’s usual accounting practice. The auditor must verify whether expenditure includes VAT and, if so, verify that the partner/linked third party: - cannot recover the VAT (this must be supported by a statement from the competent body) and - is not a public body acting as a public authority. The auditor should base his/her audit approach on the confidence level following a review of the partner/linked third party's internal control system. When using sampling, the auditor should indicate and justify the sampling size. Specific eligibility rules In addition, the auditor must verify that the costs declared comply with the specific cost eligibility rules set out in Article 5.2 and Articles 7.1.1, 81.1, 9.1.1, 9a.1.1 and 9a.2.1 of the Specific Agreement. Personnel costs The auditor must verify that: personnel costs have been charged and paid in respect of the actual time devoted by the partner/linked third party’s personnel to implementing the specific action (justified on the basis of time sheets or other relevant time-recording system)work programme; personnel costs were calculated on the basis of annual gross salary, wages or fees (plus obligatory social charges, but excluding any other costs) specified in an employment or other type of contract, not exceeding the average rates corresponding to the partner/linked third party’s usual policy on remuneration; the work was carried out during the period of implementation of the specific actionwork programme, as defined in Article 3 the Specific Agreement; the personnel costs are not covered by another EU or Euratom grant (see below ineligible costs); for additional remunerations: the 2 conditions set out in Article 5.2.A.1 of the Specific Agreement are met (i.e. that it is part of the partner/linked third party’s usual remuneration practices and is paid in a consistent manner whenever the same kind of work or expertise is required and that the criteria used to calculate the supplementary payments are objective and generally applied by the partner/linked third party, regardless of the source of funding used); for in-house consultants: the 3 conditions set out in Article 5.2.A.2 of the Specific Agreement are met (i.e. that the in-house consultant works under the partner/linked third party’s instructions, that the result of the work carried out belongs to the partner/linked third party, and that the costs are not significantly different from those for personnel performing similar tasks under an employment contract). The auditor should have assurance that the management and accounting system ensures proper allocation of the personnel costs to various activities carried out by the partner/linked third party partner and funded by various donors. Subcontracting costs The auditor must verify that: the subcontracting complies with best value for money (or lowest price) and that there was no conflict of interests; the subcontracting was necessary to implement the specific action for which the grant is requestedwork programme; the subcontracting was provided for in Annex 1 and Annex 2 or agreed to by the Agency Commission at a later stage; the subcontracting is supported by accounting documents in accordance with national accounting law; public bodies have complied with the national rules on public procurement. Travel and subsistence costs The auditor must verify that travel and subsistence costs: have been charged and paid in accordance with the partner/linked third party's internal rules or usual practices (or, in the absence of such rules or practices, that they do not exceed the scale normally accepted by the Commission4); are not covered by another EU or Euratom grant (see below ineligible costs) ); were incurred for travels linked to action work programme tasks set out in Annex 1 of the Specific Agreement; were incurred in the eligible countries set out in the call for proposals. Equipment costs See the Justice Programme & Rights, Equality and Citizenship Programme Guide for Applicants at xxxx://xx.xxxxxx.xx/research/participants/data/ref/other_eu_prog/common/just-rec-guide-applicants-fpa- og_en.pdf . The auditor must verify that: the equipment was acquired during the work programme duration, as defined in Article 3 of the Specific Agreement; the equipment is purchased, rented or leased at normal market prices; public bodies have complied with the national rules on public procurement; the equipment is written off, depreciation has been calculated according to the tax and accounting rules applicable to the partner/linked third party partner and only the portion of the depreciation corresponding to the duration of the action work programme has been declared and the costs are not covered by another EU or Euratom grant (see below ineligible costs). Costs of other goods and services The auditor must verify that: the purchase complies with best value for money (or lowest price) and that there was no conflict of interests; public bodies have complied with the national rules on public procurement; the costs are not covered by another EU or Euratom grant (see below ineligible costs). Ineligible costs The auditor must verify that the partner/linked third party has not declared any costs that are ineligible under Article 5.4 of the Specific Agreement: costs relating to return on capital; debt and debt service charges; provisions for future losses or debts; interest owed; doubtful debts; currency exchange losses; bank costs charged by the partner/linked third party’s bank for transfers from the Agency; excessive or reckless expenditure; deductible VAT; VAT incurred by a public body acting as a public authority; costs incurred during suspension of the implementation of the action; in-kind contributions from third parties; costs declared under other EU or Euratom grants (including those awarded by a Member State and financed by the EU or Euratom budget or awarded by bodies other than the Agency for the purpose of implementing the EU or Euratom budget); in particular, indirect costs if the partner/linked third party is already receiving an operating grant financed by the EU or Euratom budget in the same period, unless they can demonstrate that the operating grant does not cover any costs of the specific action; costs incurred for permanent staff of a national administration for activities that are part of its normal activities (i.e. not undertaken only because of the grant); costs incurred for staff or representatives of EU institutions, bodies or agencies. For more information on cost eligibility, see the XXXXX Guide for applicants.
Appears in 1 contract
Samples: ec.europa.eu
Verification of eligibility of the. costs declared The auditor must conduct its verification on the basis of inquiry and analysis, (re)computation, comparison, other accuracy checks, observation, inspection of records and documents and by interviewing the partner/linked third party partner (and the persons working for it). The auditor must examine the following documentation: the Framework Partnership and the Specific Agreement and any amendments to it; the periodical and/or final report(s); for personnel costs o salary slips; o time sheets; o contracts of employment; o other documents (e.g. personnel accounts, social security legislation, invoices, receipts, etc.); o proofs of payment; 2 Directive 2006/43/EC of the European Parliament and of the Council of 17 May 2006 on statutory audits of annual accounts and consolidated accounts or similar national regulations (OJ L 157, 9.6.2006, p. 87). for subcontracting o the call for tender(if any)tender; o tenders (if anyapplicable); o justification for the choice of sub-contractorsubcontractor; o contracts with sub-contractorssubcontractors; o invoices; o declarations by the partner/linked third party; o proofs of payment; o other documents: e.g. national rules on public tendering if applicable, EU Directives, etc.; for travel and subsistence costs o the partner/linked third party’s internal rules on travel; o transport invoices and tickets (if applicable); o declarations by the partner/linked third party; o other documents (proofs of attendance such as minutes of meetings, reports, etc.); o proofs of payment; for equipment costs o invoices; o delivery slips / certificates of first use; o proofs of payment; o depreciation method of calculation; for costs of other goods and services o invoices; o proofs of payment; and o other relevant accounting documents. General eligibility rules The auditor must verify that the costs declared comply with the general eligibility rules set out in Article 5.1 of the Specific Agreement. In particular, the costs must: be actually incurred; be linked to the subject of the Specific Agreement and indicated in the partner/linked third party's estimated budget (i.e. the latest version of Annex 2); be necessary to implement the specific action which is the subject of the grant; be reasonable and justified, and comply with the requirements of sound financial management, in particular as regards economy and efficiency;3 have been incurred in the course of during the specific action, as defined in Article 3 of the Specific Agreement (with the exception of the invoice for the audit certificate and costs relating to the submission of the final report); not be covered by another EU or Euratom grant (see below ineligible costs); be identifiable, verifiable and, in particular, recorded in the partner/linked third party's accounting records and determined according to the applicable accounting standards of the country where it is established and its usual cost-accounting practices; comply with the requirements of applicable national laws on taxes, labour and social security; be in accordance with the provisions of the Specific Agreement (see, in particular, Articles 5 and 7-9a) and have been converted to euro at the rate laid down in Article 11.6 of the Specific Agreement: o for partners/linked third parties with accounts established in a currency other than the euro: 3 To be assessed in particular on the basis of the procurement and selection procedures for service providers. Costs incurred in another currency must be converted into euros at the average of the daily euro exchange rates published in the C series of the EU Official Journal determined over the corresponding reporting period. If no daily euro exchange rate is published in the EU Official Journal for the currency in question, the rate used must be the average of the monthly accounting exchange rates established by the Commission and published on its website; o for partners/linked third parties with accounts established in euro: Costs incurred in another currency should be converted into euros applying the partner/linked third party’s usual accounting practice. The auditor must verify whether expenditure includes VAT and, if so, verify that the partner/linked third party: - cannot recover the VAT (this must be supported by a statement from the competent body) and - is not a public body acting as a public authority. The auditor should base his/her audit approach on the confidence level following a review of the partner/linked third party's internal control system. When using sampling, the auditor should indicate and justify the sampling size. Specific eligibility rules In addition, the auditor must verify that the costs declared comply with the specific cost eligibility rules set out in Article 5.2 and Articles 7.1.1, 81.1, 9.1.1, 9a.1.1 and 9a.2.1 of the Specific Agreement. Personnel costs The auditor must verify that: personnel costs have been charged and paid in respect of the actual time devoted by the partner/linked third party’s personnel to implementing the specific action (justified on the basis of time sheets or other relevant time-recording system); personnel costs were calculated on the basis of annual gross salary, wages or fees (plus obligatory social charges, but excluding any other costs) specified in an employment or other type of contract, not exceeding the average rates corresponding to the partner/linked third party’s usual policy on remuneration; the work was carried out during the period of implementation of the specific action, as defined in Article 3 the Specific Agreement; the personnel costs are not covered by another EU or Euratom grant (see below ineligible costs); for additional remunerations: the 2 conditions set out in Article 5.2.A.1 of the Specific Agreement are met (i.e. that it is part of the partner/linked third party’s usual remuneration practices and is paid in a consistent manner whenever the same kind of work or expertise is required and that the criteria used to calculate the supplementary payments are objective and generally applied by the partner/linked third party, regardless of the source of funding used); for in-house consultants: the 3 conditions set out in Article 5.2.A.2 of the Specific Agreement are met (i.e. that the in-house consultant works under the partner/linked third party’s instructions, that the result of the work carried out belongs to the partner/linked third party, and that the costs are not significantly different from those for personnel performing similar tasks under an employment contract). The auditor should have assurance that the management and accounting system ensures proper allocation of the personnel costs to various activities carried out by the partner/linked third party and funded by various donors. Subcontracting costs The auditor must verify that: the subcontracting complies with best value for money (or lowest price) and that there was no conflict of interests; the subcontracting was necessary to implement the specific action for which the grant is requested; the subcontracting was provided for in Annex 1 and Annex 2 or agreed to by the Agency at a later stage; the subcontracting is supported by accounting documents in accordance with national accounting law; public bodies have complied with the national rules on public procurement. Travel and subsistence costs The auditor must verify that travel and subsistence costs: have been charged and paid in accordance with the partner/linked third party's internal rules or usual practices; are not covered by another EU or Euratom grant (see below ineligible costs) were incurred for travels linked to action tasks set out in Annex 1 of the Specific Agreement. Equipment costs The auditor must verify that: the equipment is purchased, rented or leased at normal market prices; public bodies have complied with the national rules on public procurement; the equipment is written off, depreciation has been calculated according to the tax and accounting rules applicable to the partner/linked third party and only the portion of the depreciation corresponding to the duration of the action has been declared and the costs are not covered by another EU or Euratom grant (see below ineligible costs). Costs of other goods and services The auditor must verify that: the purchase complies with best value for money (or lowest price) and that there was no conflict of interests; public bodies have complied with the national rules on public procurement; the costs are not covered by another EU or Euratom grant (see below ineligible costs). Ineligible costs The auditor must verify that the partner/linked third party has not declared any costs that are ineligible under Article 5.4 of the Specific Agreement: costs relating to return on capital; debt and debt service charges; provisions for future losses or debts; interest owed; doubtful debts; currency exchange losses; bank costs charged by the partner/linked third party’s bank for transfers from the Agency; excessive or reckless expenditure; deductible VAT; VAT incurred by a public body acting as a public authority; costs incurred during suspension of the implementation of the action; in-kind contributions from third parties; costs declared under other EU or Euratom grants (including those awarded by a Member State and financed by the EU or Euratom budget or awarded by bodies other than the Agency for the purpose of implementing the EU or Euratom budget); in particular, indirect costs if the partner/linked third party is already receiving an operating grant financed by the EU or Euratom budget in the same period, unless they can demonstrate that the operating grant does not cover any costs of the specific action; costs incurred for permanent staff of a national administration for activities that are part of its normal activities (i.e. not undertaken only because of the grant); costs incurred for staff or representatives of EU institutions, bodies or agencies. For more information on cost eligibility, see the XXXXX Guide for applicants.;
Appears in 1 contract
Samples: ec.europa.eu
Verification of eligibility of the. costs declared The auditor must conduct its verification on the basis of inquiry and analysis, (re)computation, comparison, other accuracy checks, observation, inspection of records and documents and by interviewing the partner/linked third party partner (and the persons working for it). 2 Directive 2006/43/EC of the European Parliament and of the Council of 17 May 2006 on statutory audits of annual accounts and consolidated accounts or similar national regulations (OJ L 157, 9.6.2006, p. 87). The auditor must examine the following documentation: the Framework Partnership and the Specific Agreement and any amendments to it; the periodical and/or final report(s)report; for personnel costs o salary slips; o time sheets; o contracts of employment; o other documents (e.g. personnel accounts, social security legislation, invoices, receipts, etc.); o proofs of payment; for subcontracting o the call for tender(if any)tender; o tenders (if anyapplicable); o justification for the choice of sub-contractorsubcontractor; o contracts with sub-contractorssubcontractors; o invoices; o declarations by the partner/linked third party; o proofs of payment; o other documents: e.g. national rules on public tendering if applicable, EU Directives, etc.; for travel and subsistence costs o the partner/linked third party’s internal rules on travel; o transport invoices and tickets (if applicable); o declarations by the partner/linked third party; o other documents (proofs of attendance such as minutes of meetings, reports, etc.); o proofs of payment; for equipment costs o invoices; o delivery slips / certificates of first use; o proofs of payment; o depreciation method of calculation; for costs of other goods and services o invoices; o proofs of payment; and payment o other relevant accounting documents. General eligibility rules The auditor must verify that the costs declared comply with the general eligibility rules set out in Article 5.1 of the Specific Agreement. In particular, the costs must: be actually incurred; be linked to the subject of the Specific Agreement and indicated in the partner/linked third party's estimated budget (i.e. the latest version of Annex 2); be necessary to implement the specific action work programme which is the subject of the grant; be reasonable and justified, and comply with the requirements of sound financial management, in particular as regards economy and efficiency;3 have been incurred in during the course of the specific actionwork programme duration, as defined in Article 3 of the Specific Agreement (with the exception of the invoice for the audit certificate and costs relating to the submission of the final report); not be covered by another EU or Euratom grant (see below ineligible costs); be identifiable, verifiable and, in particular, recorded in the partner/linked third party's accounting records and determined according to the applicable accounting standards of the country where it is established and its usual cost-accounting practices; comply with the requirements of applicable national laws on taxes, labour and social security; be in accordance with the provisions of the Specific Agreement (see, in particular, Articles 5 and 7-9a) and have been converted to euro at the rate laid down in Article 11.6 of the Specific Agreement: o for partners/linked third parties a partner with accounts established in a currency other than the euro: 3 To be assessed in particular on the basis of the procurement and selection procedures for service providers. Costs incurred in another currency must be converted into euros at the average of the daily euro exchange rates published in the C series of the EU Official Journal determined over the corresponding reporting period. If no daily euro exchange rate is published in the EU Official Journal for the currency in question, the rate used must be the average of the monthly accounting exchange rates rate established by the Commission and published on its website; o for partners/linked third parties a partner with accounts established in euro: Costs incurred in another currency should be converted into euros applying the partner/linked third party’s usual accounting practice. The auditor must verify whether expenditure includes VAT and, if so, verify that the partner/linked third party: - cannot recover the VAT (this must be supported by a statement from the competent body) and - is not a public body acting as a public authority. The auditor should base his/her audit approach on the confidence level following a review of the partner/linked third party's internal control system. When using sampling, the auditor should indicate and justify the sampling size. Specific eligibility rules 3 To be assessed in particular on the basis of the procurement and selection procedures for service providers. In addition, the auditor must verify that the costs declared comply with the specific cost eligibility rules set out in Article 5.2 and Articles 7.1.1, 81.1, 9.1.1, 9a.1.1 and 9a.2.1 of the Specific Agreement. Personnel costs The auditor must verify that: personnel costs have been charged and paid in respect of the actual time devoted by the partner/linked third party’s personnel to implementing the specific action (justified on the basis of time sheets or other relevant time-recording system)work programme; personnel costs were calculated on the basis of annual gross salary, wages or fees (plus obligatory social charges, but excluding any other costs) specified in an employment or other type of contract, not exceeding the average rates corresponding to the partner/linked third party’s usual policy on remuneration; the work was carried out during the period of implementation of the specific actionwork programme duration, as defined in Article 3 the Specific Agreement; Agreement and the personnel costs are not covered by another EU or Euratom grant (see below ineligible costs); for additional remunerations: the 2 conditions set out in Article 5.2.A.1 of the Specific Agreement are met (i.e. that it is part of the partner/linked third party’s usual remuneration practices and is paid in a consistent manner whenever the same kind of work or expertise is required and that the criteria used to calculate the supplementary payments are objective and generally applied by the partner/linked third party, regardless of the source of funding used); for in-house consultants: the 3 conditions set out in Article 5.2.A.2 of the Specific Agreement are met (i.e. that the in-house consultant works under the partner/linked third party’s instructions, that the result of the work carried out belongs to the partner/linked third party, and that the costs are not significantly different from those for personnel performing similar tasks under an employment contract). The auditor should have assurance that the management and accounting system ensures proper allocation of the personnel costs to various activities carried out by the partner/linked third party partner and funded by various donors. Subcontracting costs The auditor must verify that: the subcontracting complies with best value for money (or lowest price) and that there was no conflict of interests; the subcontracting was necessary to implement the specific action for which the grant is requestedwork programme; the subcontracting was provided for in Annex 1 and Annex 2 or agreed to by the Agency at a later stage; the subcontracting is supported by accounting documents in accordance with national accounting law; law public bodies have complied with the national rules on public procurement. Travel and subsistence costs The auditor must verify that travel and subsistence costs: have been charged and paid in accordance with the partner/linked third party's internal rules or usual practices; are not covered by another EU or Euratom grant (see below ineligible costs) ); were incurred for travels linked to action work programme tasks set out in Annex 1 of the Specific Agreement. Equipment costs The auditor must verify that: the equipment is purchased, rented or leased at normal market prices; public bodies have complied with the national rules on public procurement; the equipment is written off, depreciation has been calculated according to the tax and accounting rules applicable to the partner/linked third party partner and only the portion of the depreciation corresponding to the duration of the action work programme has been declared and the costs are not covered by another EU or Euratom grant (see below ineligible costs). Costs of other goods and services The auditor must verify that: the purchase complies with best value for money (or lowest price) and that there was no conflict of interests; public bodies have complied with the national rules on public procurement; the costs are not covered by another EU or Euratom grant (see below ineligible costs). Ineligible costs The auditor must verify that the partner/linked third party has not declared any costs that are ineligible under Article 5.4 of the Specific Agreement: costs relating to return on capital; debt and debt service charges; provisions for future losses or debts; interest owed; doubtful debts; currency exchange losses; bank costs charged by the partner/linked third party’s bank for transfers from the Agency; excessive or reckless expenditure; deductible VAT; VAT incurred by a public body acting as a public authority; costs incurred during suspension of the implementation of the action; in-kind contributions from third parties; costs declared under other EU or Euratom grants (including those awarded by a Member State and financed by the EU or Euratom budget or awarded by bodies other than the Agency for the purpose of implementing the EU or Euratom budget); in particular, indirect costs if the partner/linked third party is already receiving an operating grant financed by the EU or Euratom budget in the same period, unless they can demonstrate that the operating grant does not cover any costs of the specific action; costs incurred for permanent staff of a national administration for activities that are part of its normal activities (i.e. not undertaken only because of the grant); costs incurred for staff or representatives of EU institutions, bodies or agencies. For more information on cost eligibility, see the XXXXX Guide for applicants.
Appears in 1 contract
Samples: ec.europa.eu
