If the total requested funding per participant reaches or exceeds a specified amount, a Certificate on the Financial Statements (CFS) issued by a qualified auditor must be submitted together with the final report. The costs for the CFS are eligible and must therefore be budgeted in the proposal phase, before the project starts.
When is a CFS required?
A CFS is obligatory for all participants whose total requested funding (i.e. for the entire project duration) reaches or exceeds the threshold of 325,000 euros as reimbursement for "actual costs" and "unit costs” (calculated according to the beneficiary's usual accounting practices, e.g. average personnel costs, internal invoicing). The flat rate for indirect costs as well as other unit costs and lump sums are not counted for the threshold and must not be checked during the CFS process.
While Horizon 2020 foresees a single CFS for the whole action as a matter of principle, it is also possible to prepare one CFS per reporting period. In both cases, however, the certificate(s) may be submitted only at the end of the project (with the final report).
Please note: This applies also to eventual linked third parties in the project (i.e. they must check the threshold independently from the beneficiary they are linked to and when reaching or exceeding it, must submit an own financial statement.
Are the costs for the CFS eligible?
The costs for a required CFS (i.e. only when reaching or exceeding the threshold) are eligible under the cost category 6.2.D.3 "other goods and services".
What will be audited?
The audit involves examining whether the actual costs and unit costs (calculated according to the beneficiary's usual accounting practice) declared are in compliance with the criteria of the Grant Agreement (GA). The audit is carried out according to the steps described in the "Model for the Certificate on the Financial Statements" (Annex 5 of the GA - see title "What is the process for issuing a CFS?").
Costs which have already been audited by the EU Commission do not have to be audited again.
Who may issue a CFS?
A CFS may be issued by any qualified auditor in Europe.
The Austrian "Kammer der Steuerberater:innen und Wirtschaftsprüfer:innen" provides a search function for Austria.
What is the process for issuing a CFS?
The CFS must be issued by a qualified auditor using the "Model for the Certificate on the Financial Statements". This Annex 5 consists of the "Terms of Reference" (model for the agreement between the participant and the auditing firm) and the model for the certificate itself. The auditor will indicate any irregularities and errors in the report. The EU Commission is responsible for deciding on the consequences of the errors indicated by the auditor.
More information can be found ...
- in the Annotated Grant Agreement (AGA), article 20.4 (b) (ii)
- in the webinar of the EU Commission "Certificates on Financial Statements"
Contact
