What types of EU audits are there?
If you have received an EU grant from the European Commission (EC), it may conduct the following audits on your organisation in addition to regular project audits and reviews:
- external audit (first-level audit): a mandatory audit of financial statements (cost report) when a funding threshold is reached. For Horizon Europe, a Certificate on the Financial Statement (CFS) is required when the total requested EU contribution (including indirect costs) is €430,000.
- EC audit (second-level audit): The EC can decide to conduct a second-level audit at any time, even several years after the final payment. Organisations are selected randomly, although certain risk factors increase the likelihood of selection (e.g., new beneficiaries or projects with large funding amounts). This audit provides the EC with a detailed understanding of your project administration, financial procedures, and all other processes related to project implementation.
Audit support service with proven methodology
The consequences of a failed audit can be severe and may even impact projects outside the scope of the audit. As experts in EU project management and compliance, PNO offers an Audit Support Service: Audit Preparation & Support.
This service follows a proven methodology (EC AIP) and includes the following steps:
- organising a personal or virtual kick-off meeting to present the audit preparation strategy and gain insight into your grant management processes
- reviewing your accounting procedures and cross-validating them with all applicable grant agreements
- identifying potential pitfalls and implementing risk mitigation measures
- conducting a sample control test using the EC audit methodology
- providing personal assistance in compiling a reliable audit file
- offering step-by-step support during the preparation and execution of the audit
- organising a closing meeting with recommendations and lessons learned.
Tailored to your organisation’s profile and experience, we offer a service package that meets your specific needs. Our compliance experts have extensive experience with a wide range of EU funding programmes, including Horizon 2020, Horizon Europe (including EIT KICs), LIFE, and the Connecting Europe Facility (CEF).
How audit-proof is your organisation?
Our audit preparation support provides insight into how audit-proof your organisation truly is. Based on the methodology described above, we offer the following support:
- preparing all supporting documents to substantiate the reported costs
- completing the documents/templates required for the CFS (Certificate on the Financial Statement) and EC audit
- analysing the EU project administration, including relevant internal procedures, cost reporting, and accounting processes.
This methodology ensures a clear overview of the following aspects of a future audit-proof project administration:
- information: a detailed understanding of the EC audit methodology, formal procedures, and implementation timeline
- analysis: a thorough test of your EU project administration, internal control processes, cost reporting, and accounting
- risk detection: a personalised Audit Readiness Report identifying risks
- optimisation: recommendations for improving your project administration for current and future projects.
Want to know more?
Facing an EU audit or looking to prepare for one? You can count on the practical support of experts from PNO and ffiqs (part of PNO Group). Contact us for more information about our Audit Support Service and other EU grant services. Call 088-838 13 81 or send us a message:
