DOC

Annex VII - The European Commissions Delegation

By Luis Arnold,2014-05-15 03:23
12 views 0
Annex VII - The European Commissions Delegation

    ANNEX VII Special Conditions Grant Contract (BUDG and EDF) Expenditure Verification

    TERMS OF REFERENCE FOR AN EXPENDITURE

    VERIFICATION OF A GRANT CONTRACT

    - EXTERNAL ACTIONS OF THE EUROPEAN COMMUNITY - HOW TO USE THIS TERMS OF REFERENCE MODEL? All text highlighted in yellow in this ToR model and its annex 1 and 2 is for instruction only and beneficiaries of grant contracts should remove it after use. The parts of the ToR presented in <……..> (e.g. must be completed by the beneficiary.

    The following are the terms of reference („ToR‟) on which <name of the Beneficiary> „the Beneficiary‟ agrees to engage <name of the audit firm> „the Auditor‟ to perform an expenditure

    verification and to report in connection with a European Community financed grant contract for

    external actions concerning <title of the action and number of the grant contract> (the „Grant Contract‟). Where in these ToR the „Contracting Authority‟ is mentioned this refers to <the European Commission or name of another contracting authority> which has signed the Grant Contract with the

    Beneficiary and is providing the grant funding. The Contracting Authority is not a party to this

    agreement.

    1.1 Responsibilities of the Parties to the Engagement

    „The Beneficiary’ refers to the organisation that is receiving the grant funding and that has signed the

    Grant Contract with the Contracting Authority.

    ? The Beneficiary is responsible for providing a Financial Report for the action financed by the

    Grant Contract which complies with the terms and conditions of the Grant Contract and for

    ensuring that this Financial Report can be reconciled to the Beneficiary‟s accounting and

    bookkeeping system and to the underlying accounts and records. The Beneficiary is

    responsible for providing sufficient and adequate information, both financial and non-financial,

    in support of the Financial Report.

    ? The Beneficiary accepts that the ability of the Auditor to perform the procedures required by

    this engagement effectively depends upon the Beneficiary, and as the case may be his partners,

    providing full and free access to the Beneficiary‟s staff and its accounting and bookkeeping

    system and underlying accounts and records.

    ? „The Auditor’ is responsible for performing the agreed-upon procedures as specified in these

    ToR, and for submitting a report of factual findings to the Beneficiary. Auditor’ refers to the

    audit firm contracted for this engagement and in particular to the partner or other person in the

    audit firm who is responsible for the engagement and for the report that is issued on behalf of

    the firm, and who has the appropriate authority from a professional, legal or regulatory body.

    By agreeing these ToR the Auditor confirms that he/she meets at least one of the following conditions:

    ? The Auditor and/or the firm is a member of a national accounting or auditing body or

    institution which in turn is member of the International Federation of Accountants (IFAC).

    ? The Auditor and/or the firm is a member of a national accounting or auditing body or

    institution. Although this organisation is not member of the IFAC, the Auditor commits

    him/herself to undertake this engagement in accordance with the IFAC standards and ethics

    set out in these ToR.

    ? The Auditor and/or the firm is registered as a statutory auditor in the public register of a public

    oversight body in an EU member state in accordance with the principles of public oversight

    2008 Page 1 of 18

    54748416.doc

    set out in Directive 2006/43/EC of the European Parliament and of the Council (this applies to

    auditors and audit firms based in an EU member state)1.

    ? The Auditor and/or the firm is registered as a statutory auditor in the public register of a public

    oversight body in a third country and this register is subject to principles of public oversight as

    set out in the legislation of the country concerned (this applies to auditors and audit firms

    based in a third country).

    1.2 Subject of the Engagement

    The subject of this engagement is the Financial

    Report in connection with the Grant Contract for the period covering

    yyyy> and the action entitled , the 'Action'. Annex 1 to these ToR contains </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">information about the Grant Contract. </span></p><p style="line-height:26.6px;letter-spacing:1.99px;">    <span style="font-family:Microsoft YaHei;font-weight:bold;font-size:15.96px;color:#000000;">1.3 Reason for the Engagement </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">The Beneficiary is required to submit to the Contracting Authority an expenditure verification report </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">produced by an external auditor in support of the payment requested by the Beneficiary under Article </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">15 of the General Conditions of the Grant Contract. The Authorising Officer of the Commission </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">requires this report as he makes the payment of expenditure requested by the Beneficiary conditional </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">on the factual findings of this report. </span></p><p style="line-height:26.6px;letter-spacing:1.99px;">    <span style="font-family:Microsoft YaHei;font-weight:bold;font-size:15.96px;color:#000000;">1.4 Engagement Type and Objective </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">This expenditure verification is an engagement to perform certain agreed-upon procedures with regard </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">to the Financial Report for the Grant Contract. The objective of this expenditure verification is for the </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">Auditor to carry out the specific procedures listed in Annex 2A to these ToR and to submit to the </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">Beneficiary a report of factual findings with regard to the specific verification procedures performed. </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">Verification means that the Auditor examines the factual information in the Financial Report of the </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">Beneficiary and compares it with the terms and conditions of the Grant Contract. As this engagement </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">is not an assurance engagement the Auditor does not provide an audit opinion and expresses no </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">assurance. The Contracting Authority assesses for itself the factual findings reported by the Auditor </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">and draws its own conclusions from these factual findings. </span></p><p style="line-height:26.6px;letter-spacing:1.99px;">    <span style="font-family:Microsoft YaHei;font-weight:bold;font-size:15.96px;color:#000000;">1.5 Standards and Ethics </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">The Auditor shall undertake this engagement in accordance with: </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">- </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">the International Standard on Related Services („ISRS‟) 4400 </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">Engagements to perform Agreed-</span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">upon Procedures regarding Financial Information as promulgated by the IFAC; </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">- the Code of Ethics for Professional Accountants issued by the IFAC. Although ISRS 4400 </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">provides that independence is not a requirement for agreed-upon procedures engagements, the </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">Contracting Authority requires that the Auditor is independent from the Beneficiary and complies </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">with the independence requirements of the Code of Ethics for Professional Accountants. </span></p><p style="line-height:26.6px;letter-spacing:1.99px;">    <span style="font-family:Microsoft YaHei;font-size:15.96px;color:#000000;"> </span><span style="font-family:Microsoft YaHei;font-size:15.96px;color:#000000;"> </span><span style="font-family:Microsoft YaHei;font-size:7.98px;color:#000000;">1</span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;"> Directive 2006/43 of the European Parliament and of the Council of 17 May 2006 on statutory audits of </span></p><p style="line-height:19.95px;letter-spacing:1.49px;">    <span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">annual accounts and consolidated accounts, amending Council Directives 78/660/EEC and 83/349/EEC and </span></p><p style="line-height:19.95px;letter-spacing:1.49px;">    <span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">repealing Council Directive 84/253 EEC. </span></p><p style="line-height:19.95px;letter-spacing:1.49px;"><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;"> </span></p><p style="line-height:19.95px;letter-spacing:1.49px;"><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;"> </span></p><p style="line-height:19.95px;letter-spacing:1.49px;"><span style="font-family:Microsoft YaHei;font-weight:bold;font-size:11.97px;color:#000000;">2008 </span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">Page 2 of 18 </span></p><p style="line-height:19.95px;letter-spacing:1.49px;">    <span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">54748416.doc</span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;"> </span></p><div> </div></div> </div> </div> <div class="model pannel_mod" data-page="3"> <div id="page3" class="scrollLoading"> <div style="width:100%;height:100%;position:relative"><p style="line-height:26.6px;letter-spacing:1.99px;"><span style="font-family:Microsoft YaHei;font-weight:bold;font-size:15.96px;color:#000000;">1.6 Procedures, Evidence and Documentation </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">The Auditor plans the work so that an effective expenditure verification can be performed. The </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">Auditor performs the procedures listed in Annex 2A </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">of these ToR („</span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">Listing of specific procedures to </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">be performed‟)</span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;"> and applies the guidelines in Annex 2B (Guidelines for specific procedures to be </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">performed). The evidence to be used for performing the procedures in Annex 2A is all financial and </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">non-financial information which makes it possible to examine the expenditure claimed by the </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">Beneficiary in the Financial Report. The Auditor uses the evidence obtained from these procedures as </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">the basis for the report of factual findings. The Auditor documents matters which are important in </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">providing evidence to support the report of factual findings, and evidence that the work was carried </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">out in accordance with ISRS 4400 and these ToR. </span></p><p style="line-height:26.6px;letter-spacing:1.99px;">    <span style="font-family:Microsoft YaHei;font-weight:bold;font-size:15.96px;color:#000000;">1.7 Reporting </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">The report on this expenditure verification should describe the purpose, the agreed-upon procedures </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">and the factual findings of the engagement in sufficient detail in order to enable the Beneficiary and </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">the Contracting Authority to understand the nature and extent of the procedures performed by the </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">Auditor and the factual findings reported by the Auditor. </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">The use of the Model Report for an Expenditure Verification of an EC Grant Contract in Annex 3 of </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">these ToR is compulsory</span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">. This report should be provided by the Auditor to <</span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">name of the Beneficiary> </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">within <xx; </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">number of working days to be indicated by the Beneficiary</span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">> working days after the day of </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">signature of these ToR. </span></p><p style="line-height:26.6px;letter-spacing:1.99px;">    <span style="font-family:Microsoft YaHei;font-weight:bold;font-size:15.96px;color:#000000;">1.8 Other Terms </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">The fee for this engagement shall be <</span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">fee amount and currency> <The Beneficiary may want to agree </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">a fixed fee for the engagement or otherwise. The Beneficiary and the Auditor may want to agree </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">specific terms if the Auditor needs to extend verification coverage from 65% to 85%. The Beneficiary </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">should specify any reimbursable expenses and allowances (e.g. travelling, other) agreed with the </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">Auditor and whether VAT and/or other relevant taxes are included in the fees/expenses.> </span><span style="font-family:Microsoft YaHei;font-weight:bold;font-size:14.63px;color:#000000;"> </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">[</span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">The Beneficiary and the Auditor can use this section to agree any other specific terms</span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">] </span></p><p style="line-height:26.6px;letter-spacing:1.99px;"><span style="font-family:Microsoft YaHei;font-size:15.96px;color:#000000;"> </span></p><p style="line-height:26.6px;letter-spacing:1.99px;"><span style="font-family:Microsoft YaHei;font-size:15.96px;color:#000000;"> </span></p><p style="line-height:24.38px;letter-spacing:1.82px;"><span style="font-family:Microsoft YaHei;font-weight:bold;font-size:14.63px;color:#000000;">Annex 1 </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">nformation about the Grant Contract </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-weight:bold;font-size:14.63px;color:#000000;">Annex 2A</span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;"> Listing of specific procedures to be performed </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-weight:bold;font-size:14.63px;color:#000000;">Annex 2B </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">Guidelines for specific procedures to be performed </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-weight:bold;font-size:14.63px;color:#000000;">Annex 3</span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;"> Model report for an expenditure verification of an EC grant contract </span></p><p style="line-height:26.6px;letter-spacing:1.99px;"><span style="font-family:Microsoft YaHei;font-size:15.96px;color:#000000;"> </span></p><p style="line-height:26.6px;letter-spacing:1.99px;"><span style="font-family:Microsoft YaHei;font-size:15.96px;color:#000000;"> </span></p><p style="line-height:26.6px;letter-spacing:1.99px;"><span style="font-family:Microsoft YaHei;font-size:15.96px;color:#000000;"> </span></p><p style="line-height:26.6px;letter-spacing:1.99px;"><span style="font-family:Microsoft YaHei;font-size:15.96px;color:#000000;"> </span></p><p style="line-height:19.95px;letter-spacing:1.49px;">    <span style="font-family:Microsoft YaHei;font-weight:bold;font-size:11.97px;color:#000000;">For the Beneficiary:</span><span style="font-family:Microsoft YaHei;font-weight:bold;font-size:11.97px;color:#000000;"> </span><span style="font-family:Microsoft YaHei;font-weight:bold;font-size:11.97px;color:#000000;">For the Audi</span><span style="font-family:Microsoft YaHei;font-weight:bold;font-size:11.97px;color:#000000;">tor:</span><span style="font-family:Microsoft YaHei;font-weight:bold;font-size:11.97px;color:#000000;"> </span></p><p style="line-height:24.38px;letter-spacing:1.82px;"><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;"> </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;"> </span></p><p style="line-height:24.38px;letter-spacing:1.82px;"><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;"> </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;"> </span></p><p style="line-height:24.38px;letter-spacing:1.82px;"><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;"> </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;"> </span></p><p style="line-height:24.38px;letter-spacing:1.82px;"><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;"> </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;"> </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">Signature</span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;"> </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">Signature</span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;"> </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;"><</span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">name and capacity</span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">></span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;"> </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;"><</span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">name and capacity</span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">></span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;"> </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;"><</span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">date</span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">></span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;"> </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;"><</span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">date</span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">></span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;"> </span></p><p style="line-height:26.6px;letter-spacing:1.99px;"><span style="font-family:Microsoft YaHei;font-size:15.96px;color:#000000;"> </span></p><p style="line-height:26.6px;letter-spacing:1.99px;"><span style="font-family:Microsoft YaHei;font-size:15.96px;color:#000000;"> </span></p><p style="line-height:19.95px;letter-spacing:1.49px;"><span style="font-family:Microsoft YaHei;font-weight:bold;font-size:11.97px;color:#000000;">2008 </span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">Page 3 of 18 </span></p><p style="line-height:19.95px;letter-spacing:1.49px;">    <span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">54748416.doc</span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;"> </span></p><div> </div></div> </div> </div> <div class="model pannel_mod" data-page="4"> <div id="page4" class="scrollLoading"> <div style="width:100%;height:100%;position:relative"><p style="line-height:26.6px;letter-spacing:1.99px;"><span style="font-family:Microsoft YaHei;font-weight:bold;font-size:15.96px;color:#000000;">Annex 1 Information about the Grant Contract </span></p><p style="line-height:19.95px;letter-spacing:1.49px;">    <span style="font-family:Microsoft YaHei;font-weight:bold;font-size:11.97px;color:#000000;">[</span><span style="font-family:Microsoft YaHei;font-weight:bold;font-size:11.97px;color:#000000;">Annex to be completed by the Beneficiary</span><span style="font-family:Microsoft YaHei;font-weight:bold;font-size:11.97px;color:#000000;">] </span></p><p style="line-height:24.38px;letter-spacing:1.82px;"><span style="font-family:Microsoft YaHei;font-weight:bold;font-size:14.63px;color:#000000;"> </span></p><p style="line-height:24.38px;letter-spacing:1.82px;"><span style="font-family:Microsoft YaHei;font-weight:bold;font-size:14.63px;color:#000000;"> </span></p><p style="line-height:19.95px;letter-spacing:1.49px;">    <span style="font-family:Microsoft YaHei;font-weight:bold;font-size:11.97px;color:#000000;">Information about the </span><span style="font-family:Microsoft YaHei;font-weight:bold;font-size:11.97px;color:#000000;">Grant Contract</span><span style="font-family:Microsoft YaHei;font-weight:bold;font-size:11.97px;color:#000000;"> </span></p><p style="line-height:19.95px;letter-spacing:1.49px;">    <span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">Reference number and date of the </span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">< </span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">Contracting Authority‟s referenc</span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">e of the Grant Contract</span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">></span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;"> </span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">Grant Contract</span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;"> </span></p><p style="line-height:19.95px;letter-spacing:1.49px;">    <span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">Grant contract title </span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;"> </span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;"> </span></p><p style="line-height:19.95px;letter-spacing:1.49px;">    <span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">Country</span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;"> </span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;"> </span></p><p style="line-height:19.95px;letter-spacing:1.49px;">    <span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">Beneficiary</span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;"> </span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">< </span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">full name and address of the Beneficiary as per the Grant Contract</span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">></span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;"> </span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">Budget line Contract</span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;"> </span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">< </span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">Contracting Authority reference of the budget line and Commission reference where </span></p><p style="line-height:19.95px;letter-spacing:1.49px;">    <span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">the Cont</span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">racting Authority is not the Commission</span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;"> </span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">></span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;"> </span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">Legal basis</span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;"> </span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">for the Contract</span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;"> </span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;"> </span></p><p style="line-height:19.95px;letter-spacing:1.49px;">    <span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">Start date of the Action</span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;"> </span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;"> </span></p><p style="line-height:19.95px;letter-spacing:1.49px;">    <span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">End date of the Action</span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;"> </span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;"> </span></p><p style="line-height:19.95px;letter-spacing:1.49px;">    <span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">Total cost of the Action</span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;"> </span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;"><</span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">amount in Art. 3.1 of the Special Conditions of the Grant Contract</span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">></span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;"> </span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">Grant maximum amount</span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;"> </span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;"><</span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">amount in Art</span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">. 3.2 of the Special Conditions of the Grant Contract</span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">></span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;"> </span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">Total amount received to date by </span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">< </span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">Total amount received as per dd.mm.yyyy</span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">></span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;"> </span></p><p style="line-height:19.95px;letter-spacing:1.49px;">    <span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">the Beneficiary from Contracting </span></p><p style="line-height:19.95px;letter-spacing:1.49px;">    <span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">Authority </span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;"> </span></p><p style="line-height:19.95px;letter-spacing:1.49px;">    <span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">Total amount of the </span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;"> </span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">< </span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">provide the total amount requested for p</span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">ayment as per Annex V</span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;"> </span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">of the General </span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">payment request</span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;"> </span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">Conditions for Grant Contracts (Request for payment for a grant contract European </span></p><p style="line-height:19.95px;letter-spacing:1.49px;">    <span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">Community external actions)</span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;"> </span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">></span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;"> </span></p><p style="line-height:19.95px;letter-spacing:1.49px;">    <span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">Contracting Authority</span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;"> </span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;"><</span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">Provide the name, position/title, phone and E</span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">-</span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">mail of the contact person at the </span></p><p style="line-height:19.95px;letter-spacing:1.49px;">    <span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">Con</span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">tracting Authority. </span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">T</span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">o be completed </span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">only </span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">if the Contracting Authority is not the </span></p><p style="line-height:19.95px;letter-spacing:1.49px;">    <span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">Commission.</span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">></span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;"> </span></p><p style="line-height:19.95px;letter-spacing:1.49px;">    <span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">European Commission</span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;"> </span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">< </span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">provide the name, position/title, phone and E</span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">-</span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">mail of the contact person in the </span></p><p style="line-height:19.95px;letter-spacing:1.49px;">    <span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">Delegation of the Commission in the country concerned, or i</span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">f applicable at </span></p><p style="line-height:19.95px;letter-spacing:1.49px;">    <span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">Headquarters</span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">></span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;"> </span></p><p style="line-height:19.95px;letter-spacing:1.49px;">    <span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">Auditor</span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;"> </span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">< </span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">Name and address of the audit firm and names/positions of the auditors</span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">></span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;"> </span></p><p style="line-height:26.6px;letter-spacing:1.99px;"><span style="font-family:Microsoft YaHei;font-weight:bold;font-size:15.96px;color:#000000;"> </span></p><p style="line-height:26.6px;letter-spacing:1.99px;"><span style="font-family:Microsoft YaHei;font-weight:bold;font-size:15.96px;color:#000000;"> </span></p><p style="line-height:24.38px;letter-spacing:1.82px;"><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;"> </span></p><p style="line-height:24.38px;letter-spacing:1.82px;"><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;"> </span></p><p style="line-height:19.95px;letter-spacing:1.49px;">    <span style="font-family:Microsoft YaHei;font-weight:bold;font-size:11.97px;color:#000000;">2008 </span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">Page 4 of 18 </span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">54748416.doc</span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;"> </span></p><div> </div></div> </div> </div> <div class="model pannel_mod" data-page="5"> <div id="page5" class="scrollLoading"> <div style="width:100%;height:100%;position:relative"><p style="line-height:26.6px;letter-spacing:1.99px;"><span style="font-family:Microsoft YaHei;font-weight:bold;font-size:15.96px;color:#000000;">Annex 2A Listing of Specific Procedures to be performed </span></p><p style="line-height:19.95px;letter-spacing:1.49px;">    <span style="font-family:Microsoft YaHei;font-weight:bold;font-size:11.97px;color:#000000;">[</span><span style="font-family:Microsoft YaHei;font-weight:bold;font-size:11.97px;color:#000000;">This Annex is a standard listing of specific procedures to be performed and it shall not be modified</span><span style="font-family:Microsoft YaHei;font-weight:bold;font-size:11.97px;color:#000000;">]</span><span style="font-family:Microsoft YaHei;font-size:15.96px;color:#000000;"> </span></p><p style="line-height:26.6px;letter-spacing:1.99px;">    <span style="font-family:Microsoft YaHei;font-weight:bold;font-size:15.96px;color:#000000;">1 General Procedures </span></p><p style="line-height:26.6px;letter-spacing:1.99px;">    <span style="font-family:Microsoft YaHei;font-weight:bold;font-size:15.96px;color:#000000;">1.1 Terms and Conditions of the Grant Contract </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">The Auditor obtains an understanding of the terms and conditions of the Grant Contract by reviewing </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">the Grant Contract and its annexes and other relevant information, and by inquiry of the Beneficiary. </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">The Auditor obtains a copy of the original Grant Contract (signed by the Beneficiary and the </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">Contracting Authority) with its annexes. The Auditor obtains and reviews the Report (which includes </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">a narrative and a financial section) as per Article 2.1 of the General Conditions. </span></p><p style="line-height:26.6px;letter-spacing:1.99px;">    <span style="font-family:Microsoft YaHei;font-weight:bold;font-size:15.96px;color:#000000;">1.2 Financial Report for the Grant Contract </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">The Auditor verifies that the Financial Report complies with the following conditions of Article 2 of </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">the General Conditions the Grant Contract: </span></p><p style="line-height:19.95px;letter-spacing:1.49px;">    <span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">- The Financial Report must conform to the model in Annex VI of the Grant Contract; </span></p><p style="line-height:19.95px;letter-spacing:1.49px;">    <span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">- The Financial Report should cover the Action as a whole, regardless of which part of it is financed by the </span></p><p style="line-height:19.95px;letter-spacing:1.49px;">    <span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">Contracting Authority; </span></p><p style="line-height:19.95px;letter-spacing:1.49px;">    <span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">- The Financial Report should be drawn up in the language of the Grant Contract; </span></p><p style="line-height:19.95px;letter-spacing:1.49px;">    <span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">- The proof of the transfers of ownership of equipment, vehicles and supplies (Article 7.3 of the General </span></p><p style="line-height:19.95px;letter-spacing:1.49px;">    <span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">Conditions of the Grant Contract) should be annexed to the final</span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;"> Financial Report. </span></p><p style="line-height:26.6px;letter-spacing:1.99px;">    <span style="font-family:Microsoft YaHei;font-weight:bold;font-size:15.96px;color:#000000;">1.3 Rules for Accounting and Record keeping </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">The Auditor examines </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">–</span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;"> when performing the procedures listed in this Annex - whether the </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">Beneficiary has complied with the following rules for accounting and record keeping of Article 16 of </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">the General Conditions the Grant Contract: </span></p><p style="line-height:19.95px;letter-spacing:1.49px;">    <span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">- The accounts kept by the Beneficiary for the implementation of the Action must be accurate and up-to-date; </span></p><p style="line-height:19.95px;letter-spacing:1.49px;">    <span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">- The Beneficiary must have a double-entry book-keeping system; </span></p><p style="line-height:19.95px;letter-spacing:1.49px;">    <span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">- The accounts and expenditure relating to the Action must be easily identifiable and verifiable; </span></p><p style="line-height:19.95px;letter-spacing:1.49px;">    <span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">- The accounts must provide details of interest accrued on funds paid by the Contracting Authority. </span></p><p style="line-height:26.6px;letter-spacing:1.99px;">    <span style="font-family:Microsoft YaHei;font-weight:bold;font-size:15.96px;color:#000000;">1.4 Reconciling the Financial Report to the Beneficiary's Accounting System and </span></p><p style="line-height:26.6px;letter-spacing:1.99px;">    <span style="font-family:Microsoft YaHei;font-weight:bold;font-size:15.96px;color:#000000;">Records </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">The Auditor reconciles the information in the Financial Report to th</span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">e Beneficiary‟s accounting system </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">and records (e.g. trial balance, general ledger accounts, sub ledgers etc.) (See Article 16.1). </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;"> </span></p><p style="line-height:26.6px;letter-spacing:1.99px;">    <span style="font-family:Microsoft YaHei;font-weight:bold;font-size:15.96px;color:#000000;">1.5 Exchange Rates </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">The Auditor verifies that amounts of expenditure incurred in a currency other than the Euro have been </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">converted at the exchange rate which is made up of the average of the rates published in InforEuro for </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">the months covered by the Financial Report, unless otherwise provided in the Special Conditions of </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">the Grant Contract (Article 15.9 of the General Conditions) </span></p><p style="line-height:19.95px;letter-spacing:1.49px;">    <span style="font-family:Microsoft YaHei;font-weight:bold;font-size:11.97px;color:#000000;">2008 </span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">Page 5 of 18 </span></p><p style="line-height:19.95px;letter-spacing:1.49px;">    <span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">54748416.doc</span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;"> </span></p><div> </div></div> </div> </div> <div class="model pannel_mod" data-page="6"> <div id="page6" class="scrollLoading"> <div style="width:100%;height:100%;position:relative"><p style="line-height:26.6px;letter-spacing:1.99px;">    <span style="font-family:Microsoft YaHei;font-weight:bold;font-size:15.96px;color:#000000;">2 Procedures to verify conformity of Expenditure with the Budget and Analytical </span></p><p style="line-height:26.6px;letter-spacing:1.99px;">    <span style="font-family:Microsoft YaHei;font-weight:bold;font-size:15.96px;color:#000000;">Review </span></p><p style="line-height:26.6px;letter-spacing:1.99px;">    <span style="font-family:Microsoft YaHei;font-weight:bold;font-size:15.96px;color:#000000;">2.1 Budget of the Grant Contract </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">The Auditor carries out an analytical review of the expenditure headings in the Financial Report. </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">The Auditor verifies that the budget in the Financial Report corresponds with the budget of the Grant </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">Contract (authenticity and authorisation of the initial budget) and that the expenditure incurred was </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">indicated in the budget of the Grant Contract. </span></p><p style="line-height:26.6px;letter-spacing:1.99px;">    <span style="font-family:Microsoft YaHei;font-weight:bold;font-size:15.96px;color:#000000;">2.2 Amendments to the Budget of the Grant Contract </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">The Auditor verifies whether there have been amendments to the budget of the Grant Contract. Where </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">this is the case the Auditor verifies that the Beneficiary has: </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">- requested an amendment to budget and obtained an addendum to the Grant Contract if such an </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">addendum was required (Article 9.1 of the General Conditions). </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">- informed the Contracting Authority about the amendment in case the amendment was limited </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">(Article 9.2 of the General Conditions) and an addendum to the Grant Contract was not required. </span></p><p style="line-height:26.6px;letter-spacing:1.99px;">    <span style="font-family:Microsoft YaHei;font-weight:bold;font-size:15.96px;color:#000000;">3 Procedures to verify selected Expenditure </span></p><p style="line-height:26.6px;letter-spacing:1.99px;">    <span style="font-family:Microsoft YaHei;font-weight:bold;font-size:15.96px;color:#000000;">3.1 Eligibility of Costs </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">The Auditor verifies, for each expenditure item selected, the eligibility criteria set out below. </span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">(1) Costs actually incurred (Article 14.1) </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">The Auditor verifies that the expenditure for a selected item was actually incurred by and pertains to </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">the Beneficiary. For this purpose the Auditor examines supporting documents (e.g. invoices, contracts) </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">and proof of payment. The Auditor also examines proof of work done, goods received or services </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">rendered and he/she verifies the existence of assets if applicable. </span></p><p style="line-height:19.95px;letter-spacing:1.49px;">    <span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">(2) Cut-off - Implementation period (Article 14.1a) </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">The Auditor verifies that the expenditure for a selected item was incurred during the implementation </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">period of the Action. </span></p><p style="line-height:19.95px;letter-spacing:1.49px;">    <span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">(3) Budget (Article 14.1b) </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">The Auditor verifies that the expenditure for a selected item was indicated in the Action budget. </span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">(4) Necessary (Article 14.1c) </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">The Auditor verifies whether it is plausible that the expenditure for a selected item was necessary for </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">the implementation of the Action and that it had to be incurred for the contracted activities of the </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">Action by examining the nature of the expenditure with supporting documents. </span></p><p style="line-height:19.95px;letter-spacing:1.49px;">    <span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">(5) Records (Article 14.1d) </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">The Auditor verifies that expenditure for a selected item is recorded in the Beneficiary's accounting </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">system and was recorded in accordance with the applicable accounting standards of the country where </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">the Beneficiary is established and the Beneficiary's usual cost accounting practices. </span><span style="font-family:Microsoft YaHei;font-weight:bold;font-size:11.97px;color:#000000;">2008 </span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">Page 6 of 18 </span></p><p style="line-height:19.95px;letter-spacing:1.49px;">    <span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">54748416.doc</span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;"> </span></p><div> </div></div> </div> </div> <div class="model pannel_mod" data-page="7"> <div id="page7" class="scrollLoading"> <div style="width:100%;height:100%;position:relative"><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">The Auditor verifies that expenditure for a selected item is substantiated by evidence (see section 1 of </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">Annex 2B, Guidelines for Specific Procedures to be performed) and notably the supporting documents </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">as specified in Article 16.2 and 16.3 of the General Conditions of the Grant Contract. </span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">(6) Justified (Article 14.1e) </span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">(7) Valuation </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">The Auditor verifies that the monetary value of a selected expenditure item agrees with underlying </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">documents (e.g. invoices, salary statements) and that correct exchange rates are used where applicable. </span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">(8) Classification </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">The Auditor examines the nature of the expenditure for a selected item and verifies that the </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">expenditure item has been classified under the correct (sub)heading of the Financial Report. </span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">(9) Compliance with Procurement, Nationality and Origin Rules </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">Where applicable the Auditor examines which procurement, nationality and origin rules apply for a </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">certain expenditure (sub)heading, a class of expenditure items or an expenditure item. The Auditor </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">verifies whether the expenditure was incurred in accordance with such rules by examining the </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">underlying documents of the procurement and purchase process. Where the Auditor finds issues of </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">non-compliance with procurement rules, he/she reports the nature of such events as well as their </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">financial impact in terms of ineligible expenditure. When examining procurement documentation the </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">Auditor takes into account the risk indicators listed in Annex 2B and he/she reports, if applicable, </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">which of these indicators were found. </span></p><p style="line-height:26.6px;letter-spacing:1.99px;">    <span style="font-family:Microsoft YaHei;font-weight:bold;font-size:15.96px;color:#000000;">3.2 Eligibility of Direct Costs (Article 14.2) </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">If the expenditure for a selected item is recorded under one of the direct</span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;"> costs headings 1 to 6 of the </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">Financial Report, the Auditor verifies that this type of expenditure is covered by the direct costs as </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">defined in Article 14.2 by examining the nature of the expenditure items concerned. </span><span style="font-family:Microsoft YaHei;font-weight:bold;font-size:15.96px;color:#000000;">3.3 Provision for Contingency Reserve (Article 14.3) </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">The Auditor verifies that the provision for contingency reserve (heading 8 Financial Report) does not </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">exceed 5% of the direct eligible costs of the Action and that the Beneficiary has obtained prior written </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">authorisation of the Contracting Authority for the use of this contingency reserve. </span><span style="font-family:Microsoft YaHei;font-weight:bold;font-size:15.96px;color:#000000;">3.4 Administrative costs (Article 14.4) </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">The Auditor verifies that the indirect costs to cover the administrative overheads (heading 10 Financial </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">Report) do not exceed 7% of the total amount of eligible direct</span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;"> costs of the Action</span><span style="font-family:Microsoft YaHei;font-weight:bold;font-size:14.63px;color:#000000;">.</span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;"> </span></p><p style="line-height:26.6px;letter-spacing:1.99px;">    <span style="font-family:Microsoft YaHei;font-weight:bold;font-size:15.96px;color:#000000;">3.5 Contributions in kind (Article 14.5) </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">The Auditor verifies that costs in the Financial Report do not include contributions in kind. </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">Contributions in kind are not eligible costs. </span></p><p style="line-height:26.6px;letter-spacing:1.99px;">    <span style="font-family:Microsoft YaHei;font-weight:bold;font-size:15.96px;color:#000000;">3.6 Non-eligible costs (Article 14.6) </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">The Auditor verifies that the expenditure for a selected item does not concern a non-eligible cost as </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">described in Article 14.6 of the General Conditions. The Auditor verifies whether expenditure includes </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">certain taxes, including VAT. If this is the case the Auditor verifies whether the Beneficiary (or, where </span><span style="font-family:Microsoft YaHei;font-weight:bold;font-size:11.97px;color:#000000;">2008 </span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">Page 7 of 18 </span></p><p style="line-height:19.95px;letter-spacing:1.49px;">    <span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">54748416.doc</span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;"> </span></p><div> </div></div> </div> </div> <div class="model pannel_mod" data-page="8"> <div id="page8" class="scrollLoading"> <div style="width:100%;height:100%;position:relative"><p style="line-height:24.38px;letter-spacing:1.82px;"><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">applicable the partners) cannot reclaim these taxes and whether the applicable regulations, rules and </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">practices in the country concerned allow the coverage of these taxes in the expenditure.</span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;"> </span></p><p style="line-height:26.6px;letter-spacing:1.99px;">    <span style="font-family:Microsoft YaHei;font-weight:bold;font-size:15.96px;color:#000000;">3.7 Revenues of the Action </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">The Auditor examines whether revenues which should be attributed to the Action (including inter alia </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">grants and funding received from other donors and other revenue generated by the Beneficiary in the </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">context of the Action such as for example interest earned) have been allocated to the Action and </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">disclosed in the Financial Report. For this purpose the Auditor inquires with the Beneficiary and </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">examines documentation obtained from the Beneficiary. The Auditor is not expected to examine the </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">completeness of the revenues reported.</span></p><p style="line-height:19.95px;letter-spacing:1.49px;">    <span style="font-family:Microsoft YaHei;font-weight:bold;font-size:11.97px;color:#000000;">2008 </span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">Page 8 of 18 </span></p><p style="line-height:19.95px;letter-spacing:1.49px;">    <span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">54748416.doc</span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;"> </span></p><div> </div></div> </div> </div> <div class="model pannel_mod" data-page="9"> <div id="page9" class="scrollLoading"> <div style="width:100%;height:100%;position:relative"><p style="line-height:26.6px;letter-spacing:1.99px;"><span style="font-family:Microsoft YaHei;font-weight:bold;font-size:15.96px;color:#000000;">Annex 2B Guidelines for Specific Procedures to be performed </span></p><p style="line-height:19.95px;letter-spacing:1.49px;">    <span style="font-family:Microsoft YaHei;font-weight:bold;font-size:11.97px;color:#000000;">[</span><span style="font-family:Microsoft YaHei;font-weight:bold;font-size:11.97px;color:#000000;">This Annex provides standard guidelines for the specific procedures to be performed and these guidelines shall not be </span></p><p style="line-height:19.95px;letter-spacing:1.49px;">    <span style="font-family:Microsoft YaHei;font-weight:bold;font-size:11.97px;color:#000000;">modified</span><span style="font-family:Microsoft YaHei;font-weight:bold;font-size:11.97px;color:#000000;">] </span></p><p style="line-height:26.6px;letter-spacing:1.99px;">    <span style="font-family:Microsoft YaHei;font-weight:bold;font-size:15.96px;color:#000000;">1 Verification Evidence </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">When performing the specific procedures listed in Annex 2A the Auditor may apply techniques such </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">as inquiry and analysis, (re)computation, comparison, other clerical accuracy checks, observation, </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">inspection of records and documents, inspection of assets and obtaining confirmations. </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">The Auditor obtains verification evidence from these procedures to draw up his report of factual </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">findings. Verification evidence is all information used by the Auditor in arriving at the factual findings </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">and it includes the information contained in the accounting records underlying the Financial Report </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">and other information (financial and non-financial). </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">The contractual</span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;"> requirements that relate to verification evidence are: </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">?</span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;"> </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">Expenditure should be identifiable, verifiable and recorded in the accounting records of the </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">Beneficiary (Article 14.1.d) of the General Conditions of the Grant Contract); </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">?</span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;"> </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">Expenditure must be easily identifiable and verifiable and traced to and within the </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">Beneficiary‟s accounting and bookkeeping systems (Article 16.1 of the </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">General Conditions); </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">?</span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;"> </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">The Beneficiary will allow any external auditor to carry out verifications on the basis of </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">supporting documents for the accounts, accounting documents and any other document </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">relevant to the financing of the Action. The Beneficiary gives access to all documents and </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">databases concerning the technical and financial management of the Action (Article 16.2 of </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">the General Conditions); </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">?</span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;"> </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">Article 16.3 of the General Conditions of the Grant Contract provides a list of the types and </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">nature of evidence that the Auditor will often find in expenditure verifications. </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">Moreover, for the purpose of the procedures listed in Annex 2A, evidence: </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">?</span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;"> </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">Must be available in documentary form, whether paper, electronic or other medium (e.g. a </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">written record of a meeting is more reliable than an oral presentation of the matters discussed); </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">?</span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;"> </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">Must be available in the form of original documents rather than photocopies or facsimiles; </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">?</span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;"> </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">Should preferably be obtained from independent sources outside the entity (an original </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">suppliers invoice or contract is more reliable than an internally approved receipt note); </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">?</span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;"> </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">Which is generated internally is more reliable if it has been subject to control and approval; </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">?</span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;"> </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">Obtained directly by the Auditor (e.g. inspection of assets) is more reliable than evidence </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">obtained indirectly (e.g. inquiry about the asset). </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">If the Auditor finds that the above criteria for evidence are not sufficiently met, he/she should detail </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">this in the factual findings. </span></p><p style="line-height:26.6px;letter-spacing:1.99px;">    <span style="font-family:Microsoft YaHei;font-weight:bold;font-size:15.96px;color:#000000;">2 Obtaining an understanding of the terms and conditions of the Grant Contract </span></p><p style="line-height:26.6px;letter-spacing:1.99px;">    <span style="font-family:Microsoft YaHei;font-weight:bold;font-size:15.96px;color:#000000;">(Annex 2A - procedure 1.1) </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">The Auditor obtains an understanding of the terms and conditions of the Grant Contract and he/she </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">should pay particular attention to Annex I of the Grant Contract, which contains the Description of the </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">Action, Annex II (General Conditions) and Annex IV, which provides rules for procurement </span></p><p style="line-height:19.95px;letter-spacing:1.49px;">    <span style="font-family:Microsoft YaHei;font-weight:bold;font-size:11.97px;color:#000000;">2008 </span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">Page 9 of 18 </span></p><p style="line-height:19.95px;letter-spacing:1.49px;">    <span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">54748416.doc</span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;"> </span></p><div> </div></div> </div> </div> <div class="model pannel_mod" data-page="10"> <div id="page10" class="scrollLoading"> <div style="width:100%;height:100%;position:relative"><p style="line-height:24.38px;letter-spacing:1.82px;"><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">(including nationality and origin rules) by grant beneficiaries in the context of EC external actions. </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">Failure to comply with these rules makes expenditure ineligible for Community financing. These </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">procurement rules apply to all grant contracts but depending on the legal basis for the Grant Contract </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">(e.g. TACIS, ALA, Food Aid and Development Co-operation Instrument) nationality and origin rules </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">may vary. The Auditor ensures with the Beneficiary that the applicable nationality and origin rules are </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">identified and understood. Applicable rules of nationality and origin are set out, for each legal basis, in </span><span style="font-family:Microsoft YaHei;font-size:7.98px;color:#000000;">2</span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">Annex A2 to the Practical Guide</span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;"> to contract procedures for external actions of the European </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">Communities. </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">If the Auditor finds that the terms and conditions to be verified are not sufficiently clear he should </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">request clarification from the Beneficiary.</span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;"> </span><span style="font-family:Microsoft YaHei;font-weight:bold;font-size:15.96px;color:#000000;">3 Selecting Expenditure for Verification (Annex 2A - procedures 3.1 </span><span style="font-family:Microsoft YaHei;font-weight:bold;font-size:15.96px;color:#000000;">–</span><span style="font-family:Microsoft YaHei;font-weight:bold;font-size:15.96px;color:#000000;"> 3.7) </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">The expenditure claimed by the Beneficiary in the Financial Report is presented under the following </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">expenditure headings: </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">1 Human Resources, 2 Travel, 3 Equipment and Supplies, 4 Local office, 5 </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">Other costs, services, 6 Other, 8Provision for contingency reserve and 10 Administrative costs.</span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;"> </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">Expenditure headings 1 to 6 represent direct</span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;"> costs of the Action. Expenditure headings can be broken </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">down into expenditure subheadings such as for example </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">1.1 Salaries</span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">. </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">Expenditure subheadings can be broken down into individual expenditure items or classes of </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">expenditure items with the same or similar characteristics. The form and nature of the supporting </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">evidence (e.g. a payment, a contract, an invoice etc) and the way expenditure is recorded (i.e. journal </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">entries) vary with the type and nature of the expenditure and the underlying actions or transactions. </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">However, in all cases expenditure items should reflect the accounting (or financial) value of </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">underlying actions or transactions no matter the type and nature of the action or transaction concerned. </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">Value should be the principal factor used by the Auditor to select expenditure items or classes of </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">expenditure items for verification. The Auditor selects high value expenditure items to ensure an </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">appropriate coverage of expenditure. </span></p><p style="line-height:26.6px;letter-spacing:1.99px;">    <span style="font-family:Microsoft YaHei;font-weight:bold;font-size:15.96px;color:#000000;">4 Verification Coverage of Expenditure (Annex 2A - procedures 3.1 </span><span style="font-family:Microsoft YaHei;font-weight:bold;font-size:15.96px;color:#000000;">–</span><span style="font-family:Microsoft YaHei;font-weight:bold;font-size:15.96px;color:#000000;"> 3.7) </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">The Auditor applies the principles and criteria set out below when planning and performing the </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">specific verification procedures for selected</span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;"> expenditure in Annex 2A (procedures 3.1 </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">–</span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;"> 3.7). </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">Verification by the Auditor and verification coverage of expenditure items does not necessarily mean a </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">complete and exhaustive verification of all</span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;"> the expenditure items that are included in a specific </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">expenditure heading or subheading. The Auditor should ensure a systematic and representative </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">verification. Depending on certain conditions (see further below) the Auditor may obtain sufficient </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">verification results for an expenditure heading or subheading by looking at a limited number of </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">selected expenditure items. </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">The Auditor may apply statistical sampling techniques for the verification of one or more expenditure </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">headings or subheadings of the Financial Report. </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">The Auditor examines whether „populations‟ (i.e. </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">expenditure subheadings or classes of expenditure items within expenditure subheadings) are suitable </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">and sufficiently large (i.e. are made up of large numbers of items) for effective statistical sampling. </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">If applicable the Auditor should explain in the report of factual findings for which headings or </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">subheadings of the Financial Report sampling has been applied, the method used, the results obtained </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">and whether the sample is representative. </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">The Expenditure </span><span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">Coverage Ratio („ECR‟) represents the total amount of expenditure verified by the </span></p><p style="line-height:24.38px;letter-spacing:1.82px;">    <span style="font-family:Microsoft YaHei;font-size:14.63px;color:#000000;">Auditor expressed as a percentage of the total amount of expenditure reported by the Beneficiary in </span></p><p style="line-height:26.6px;letter-spacing:1.99px;">    <span style="font-family:Microsoft YaHei;font-size:15.96px;color:#000000;"> </span><span style="font-family:Microsoft YaHei;font-size:15.96px;color:#000000;"> </span><span style="font-family:Microsoft YaHei;font-size:7.98px;color:#000000;">2</span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;"> Practical Guide (applicable for Budget and EDF) and annexes for Budget and EDF </span></p><p style="line-height:19.95px;letter-spacing:1.49px;">    <span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">see:http://ec.europa.eu/europeaid/work/procedures/implementation/practical_guide/index_en.htm </span></p><p style="line-height:19.95px;letter-spacing:1.49px;">    <span style="font-family:Microsoft YaHei;font-weight:bold;font-size:11.97px;color:#000000;">2008 </span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">Page 10 of 18 </span></p><p style="line-height:19.95px;letter-spacing:1.49px;">    <span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;">54748416.doc</span><span style="font-family:Microsoft YaHei;font-size:11.97px;color:#000000;"> </span></p><div> </div></div> </div> </div> </div> </div> </div> <div id="doc_sidebar" class="doc_sider"> <div class="doc_sider_inner"> <div id="relativeAjax" class="relative_mod"> </div> <div class="report_mod"> <p class="report_bd"><a href="javascript:void(0);" id="report" title="Report this document">Report this document <span class="icon icon_report"></span></a></p> <p>For any questions or suggestions please email <br /><a href="mailto:cust-service@docsford.com" title="cust-service@docsford.com">cust-service@docsford.com</a></p> </div> <!--advertisement--> <!-- <div class="right_ad_mod"> <div class="m1"> </div> </div> --> </div> </div> </div> </div> </div> <script type="text/javascript"> var picture_image_path_v1 = "http://st.docsford.com"; </script> <script type="text/javascript" src="http://www.docsford.com/js/jquery-1.11.1.min.js?rand=20160302"></script> <script type="text/javascript" src="http://www.docsford.com/js/common_global.js?rand=20160302"></script> <script> (function(i,s,o,g,r,a,m){i['GoogleAnalyticsObject']=r;i[r]=i[r]||function(){ (i[r].q=i[r].q||[]).push(arguments)},i[r].l=1*new Date();a=s.createElement(o), m=s.getElementsByTagName(o)[0];a.async=1;a.src=g;m.parentNode.insertBefore(a,m) })(window,document,'script','//www.google-analytics.com/analytics.js','ga'); ga('create', 'UA-62413738-1', 'auto'); ga('send', 'pageview'); </script> <div class="gobackTop"><a href="javascript:void(0);" class="t"></a></div> <script type="text/javascript">var addthis_config = {"data_track_addressbar":false};</script> <script type="text/javascript" src="//s7.addthis.com/js/300/addthis_widget.js#pubid=ra-559395ba386a9f3e" async="async"></script> <script type="text/javascript"> var readerConfig = { allPage:18, productId:54748416, docProductId:4133450, isLogin:0, productName:'Annex VII - The European Commissions Delegation', load_url:'http://st.docmatize.com/' }; (function(){ jQuery.post("http://www.docsford.com/productEnd/viewStat.do",{"enId":"4133450"}); })(); </script> <script type="text/javascript" src="http://www.docsford.com/js/reader_html_test.js?rand=20160302"></script> <script type="text/javascript"> var docsford = { init:function(){ var _this = this; if(jQuery(".search_input").length>0){ jQuery(".search_input").focus(); } _this.hastop(); _this.report(); }, hastop:function(){ var _this = this; jQuery(".btn_like").bind("click",function(){ _this.increaseVoteCount(1); }); jQuery(".btn_hit").bind("click",function(){ _this.increaseVoteCount(-1); }); }, increaseVoteCount:function(type){ jQuery.post("http://www.docsford.com/productEnd/increaseVoteCount.do",{ "enId":"4133450","type":type},function(data){ if(data == 0){ var left, top = 10; if(type == 1){ left = parseInt(jQuery(".btn_like").offset().left)+10; var oVoteNum = parseInt(jQuery("#hitNum").html()); jQuery("#hitNum").html(oVoteNum+1); }else{ left = parseInt(jQuery(".btn_hit").offset().left)+10; } if(jQuery('#zhan').length>0){ jQuery('#zhan').remove(); } var addP = jQuery('<div id="zhan" style="font-size:24px;"><b>+1<\/b></\div>').appendTo(jQuery(".toolbar_left_mod")); jQuery('#zhan').css({'position':'absolute','z-index':'1', 'color':'#2284e2','left':left+'px','top':top+'px'}).animate({top:top-10,left:left+10},'slow',function(){addP.fadeIn('fast').remove();}); }else{ //alert("You already had voted, please don't repeat voting!"); } }); }, report:function(){ var _this = this; var aReportBtn = jQuery("#report,.report_inline"); if(aReportBtn.length == 0){return;} aReportBtn.bind("click",function(){ jQuery.ajax({ type:'GET', url:"/jsp/productEnd/include/doc_layer.jsp", data:"layer=report", context: document.body, success:function(data){ if(data){ var oHtml = data; jQuery(this).append(oHtml); dialogBoxShadow(); setObjCenter("reportDiv"); _this.initReport(); } } }); }); }, initReport:function(){ var oErrorType = 3,oReportSubmit = jQuery("#reportSubmit"),aErrorType = jQuery("input[name='error']"), oTextArea = jQuery("#reportInfo"),oRepeatUrl = jQuery("#purl"); if(oReportSubmit.length>0){ oReportSubmit.bind("click",function(){ var result = getErrorType(); if(result == 3){return false;} jQuery.ajax({ url:"/productEnd/insertDocReport.do", data:"content="+encodeURI(oTextArea.val())+"&choose="+result+"&productId="+4133450+"&dupUrl="+oRepeatUrl.val(), success:function(data){ if(data == 2){//0:faild 1:repeat 2:success jQuery("#reportDiv .report_message,#reportDiv .dialog_buttons").hide(); jQuery(".report_tips").show(); commonConutHideBox('reportDiv',1,2); } else if(data == 0){ alert("Failure report!"); } else if(data == 1){ alert("You had reported this document,please don't reported again!"); } } }); }); } if(aErrorType.length>0){ aErrorType.bind("click",function(){ if(aErrorType.is(":checked")){ oReportSubmit.removeClass('btn_forbid'); } else{ oReportSubmit.addClass('btn_forbid'); } if(jQuery(this).data("error") == 2){ jQuery("#repeatproduct").show().focus(); } else{ jQuery("#repeatproduct").hide(); } }); } function getErrorType(){ jQuery.each(aErrorType,function(i){ if(jQuery(this).is(":checked")){ oErrorType = jQuery(this).data("error"); return false; } }); return oErrorType; } } } docsford.init(); function submit(){ if(jQuery(".search_input").length>0){ if(jQuery(".search_input").val()!=""){ document.forms[0].submit(); } else{ jQuery(".search_input").foucs(); } } } jQuery(function(){ var oBackTop = jQuery(".gobackTop"); var oSideBarW = oBackTop.width(); var pageWidth = jQuery(".global_wrapper").width(); jQuery(window).bind("scroll resize", setBarPosition); jQuery(".gobackTop").unbind(); jQuery(".gobackTop").bind("click",function(){ jQuery("html, body").animate({ scrollTop: 0 }, 120); }); function setBarPosition(){ var winh = jQuery(window).height(),winw = jQuery(window).width(); var oRight = (winw-pageWidth)/2+pageWidth+20; oBackTop.css({'left':oRight}); var st = jQuery(document).scrollTop(); (st > winh)? oBackTop.show(): oBackTop.hide(); } }); if(false){ showLogin(); } </script> </body> </html>