Audit for Expanded LIWAY Project (January 1, 2024 – December 31, 2024)

Audit of financial statements prepared in accordance with a special purpose framework pursuant to ISA 805

The aim of the audit of the financial statements is to establish whether they meet the requirements laid down in the standards framework referred to in section 2.2 of this protocol. The auditor must ascertain that:

1. if the accrual accounting system has been used, the explanatory notes mention which portion of the costs was paid within the period covered by the financial statements and which amount has been recognised for items that are payable;
2. expenditures (or costs) have been properly recognised and that expenditures (or costs) are related to the activities mentioned in the contribution agreement;
3. receipts or revenues have been recognised in full and that revenues have been received. The auditor will examine consistency with the revenue sources included in the approved budget and use their knowledge of the organisation, for example in relation to the auditing of annual financial statements;
4. the financial statements are structured with the same level of detail and with the same cost/expenditure categories as the submitted and approved budget. The budget must also be recorded in the financial statements;
5. expenditures/costs are evidenced by supporting documents. The auditor must determine on the basis of their professional judgement whether the supporting documents suffice as audit information/evidence and are appropriate to the nature of the activity and the accompanying approved budget;
6. discrepancies of more than 10% per budget line between the actual figure and approved budget are explained. Variances of EUR 5,000 or less do not need to be explained;
7. the accounting policies used are explained in the financial statements, and are consistent with the approved budget and the annual financial statements;
8. the system for allocating indirect costs/overheads to the activity is explained in the explanatory notes. The auditor must assesses whether the allocation system has been used in the financial statements in accordance with the explanatory notes to the financial statements and with the approved budget. The associated audit activities are carried out in conjunction with those described at 9, namely ascertaining that expenditures/costs are recharged on the basis of actual expenditures/costs;
9. expenditures/costs are recharged to the funded activities on the basis of actual costs. This means that the applicant for the funds adopts a consistent approach in allocating indirect expenditures/costs and that retrospective costing takes place each year. If not yet available at the time of the audit, the retrospective costing for the year under review T-1 may be used. In the event of departure from this consistent approach in the allocation system, the applicant must have included an explanatory note in the financial statements;
10. the selected external invoices are compliant with the organisation’s procurement policy and that suppliers are selected objectively by inviting multiple bids from a threshold amount of EUR 33,000 upwards.[1] Any departures must be explained by the organisation in the financial statements;

the number of hours and hourly rates claimed for internal and external staff where the hourly rate exceeds a threshold of EUR 225 per hour (excl. VAT) has been explained by the applicant in the financial statements. The total amount concerned must be included in the financial statements.

Detail requirements are indicated on the ToR.