Download Required documents for accounting and auditing - WBC

Required documents
for accounting and
auditing
Albena Vutsova&Lora Pavlova
Personnel costs





Employment contracts ( or other legal
justification);
Ledgers/accounts, payroll records;
Time-sheets;
Detailed breakdown and justification of
productive hours
Hourly rates include personnel salary and
overhead
Overhead costs


Documentation concerning the calculation of
the overhead costs
Breakdown of incurred costs by category of
expenses charged to the project;
Equipment/Consumables



Invoices;
Proof of payment;
In case of rented equipment*:





Rental contract
Inventory list of the rented equipment
Proof of the investment values of the rented equipment
* rental contract should has a clause that the equipment
will be bought!
Record concerning computer usage, if aplicable
Third Party/Assistance





Sun-contracts;
Invoices;
Proof of payment;
Original deliverables of the subcontractors;
Evidence of the internal management and
supervision procedures to confirm completion
of work required
Travel expenses



Invoices;
Mission approval forms;
A report. Record, minutes, proceedings; etc.
indicating purpose and participants of the
meetings/events;
Bank Statements

In case you are coordinator of the contract,
bank statements relating to the payments of
EC contribution and the distribution to the
contract partners
General ledger/Management
accounts

Salient extracts (Clear, visible, obvious,
provable) and reconciliation of costs claimed
- back to the accounting records in order to
facilitate easy and swift verification of costs
and their eligibility
Auditor certificates

Copies of any auditors certification
statements issues with a claim for cost
reimbursement
Accounting principles
Albena Vutsova&Lora Pavlova
General:




Read the Commission documents
No binding “Financial rules”
There are Financial Guidelines that set the
main principles
All organizations keep a proper account
books, documentation and records that
facilitate justification of eligible costs
Main principles applied



As of 2008 – GAAP ( General Accepted
Accounting Principals) are replace by IFRS (
International Financial Regulation Standard)
The auditor should comply with the IFRS
principles;
Major change of FP7 is that all costs – direct
and indirect must appear in the organizations
book of accounts!!!
Financial statements:






Understandable – i.e. clear and simple
information;
Relevant
Reliable
Timely
Consistent, i.e. in case of changes of the
applicable accounting standards;
Comparable
Participation without funding

Possible for legal entities to participate in a
project without EC contribution:


Their costs are recorded in the overall project
budget BUT
Not subject to financial audits
Subcontracting









Relate to a minimum part of the project;
Duly justified;
The beneficiary remains fully responsible for carrying out the
project, retains the IPR and ensure that certain provisions of the
GA is reflected in the agreement with the subcontractor;
Legal entities;
Subcontracting by between beneficiaries is not possible
Best bid applied and following national legislation;
VAT is non-eligible cost;
The reimbursement rate of the costs for subcontracting depends
on the type of activities subcontracted;
Subcontractors do not submit Financial statements, their costs
are identified by the relevant Beneficiary
Thank you
[email protected]