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Second level audit report - Version SFC 2023 -

Second level audit report

Covering the accounting year

from 01.07.2023 to 30.06.2024

According to Article 127 of Common Provision Regulation (EC) No 1303/2013 and Article 25 Regulation (EC) No 1299/2013

Name of auditee Project partner no. 02

Tallinn University of Technology

CCI No 2014TC16M5TN001

European Regional Development Fund European Neighbourhood Instrument

This second level report is prepared by:

Ministry of Finance of the Republic of Estonia Financial Control Department Audit Unit II

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INTRODUCTION This Audit Report from the second level auditor (SLA) is a basis for the compilation of the Annual Control Report (ACR) which the Audit Authority (AA) has to transfer to the European Commission until the 15th of February of each year. This report consists out of three parts: The report and the attached checklist as Annex 1 and additionally a list with types of findings as Annex 2. . The procedures between AA and SLA are stipulated in the Rules of Procedures of the Group of Auditors of the Interreg Baltic Sea Region Programme 2014–2020 (CCI No 2014TC16M5TN001). The content of the SLA-Report is within the responsibility of the respective national SLA. After finalizing the respective audit, the SLA are asked to send the report with signature and stamp and with the attached Annexes 1 and 2 as a scanned pdf-file via email to the Audit Authority with a copy to the MA/JS. The signed original paper-version has to be stored at the auditors place.

1. Identification of the operation Lead Partner/ organisation Free and Hanseatic City of Hamburg

Department Borough of Altona

Country Germany

Project No. #R096

Project acronym LUCIA

Priority 2

Number of all partners 13

Max. amount ERDF co-financing (A) (€) 2,165,305.78

Max. amount NOR co-financing (B) (€) 0.00

Max. amount of ENI co-financing (C) (€) 140,761.10

Max. amount of Russian co-financing (D) (€) 140,761.11

Max. amount of all partner´s own contribution (E) (€) 665,655.50

Total operation budget (= A+B+C+D+E) (€) 3,112,483.49

1.1 Identification of the audited partner (PP or LP)

Lead partner Project partner

Contact person Maia-Liisa Anton / Alvar Kurrel

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Organisation Tallinn University of Technology

Department Thomas Johann Seebeck Department of Electronics

Address Ehitajate tee 5 / 19086 Tallinn

Country Estonia Co-financing rate 85 %

Telephone +372 6 203 514 / +372 6 202 159

Email [email protected] / [email protected]

Legal status Public

Max. amount of Programme co-financing (ERDF, NOR, ENI/RU) (A) (€) 197,056.06

Max. amount of all partner´s own contribution (B) (€) 34,774.61

Total Partner (LP or PP) budget (A+B) (€) 231,830.67

1.2 Identification of the second level auditor (SLA)

Name Laura Väikemaa

Job title Auditor

Organisation Ministry of Finance of the Republic of Estonia

Department Financial Control Department

Address Suur-Ameerika 1, Tallinn

Country Estonia

Telephone +372 611 3558

Email [email protected]

2. Audit process and audit scope Please describe how was the second level audit organised, its procedure, on-the-spot visit, drafting of the audit report and contradictory procedure, involvement of the first level controller etc.

How was the second level audit carried out? 100% control sample of: % Was the second level audit (or parts of it) outsourced? If yes, to which authority/company. Who is responsible for which part?

No parts of this second level audit were outsourced.

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2.1 Audit objectives

The objectives of the audit were to:

- complete and deliver to the Audit Authority the audit report and checklist;

- verify the delivery of products and services co-financed from the Programme;

- verify the soundness of expenditure declared by the project partner(s);

- verify the compliance of such expenditure and project activities with Programme rules

- assist in reducing the risk of ineligible expenditure;

- contribute to the Annual Control Reports and eventually to the closure declaration;

- support the Audit Authority in carrying out its duties.

The Audit Authority will compile a final Audit Report and an Audit Opinion by the 15th of February of the year following the respective accounting year

2.2 Audit timetable

Audit was launched on 12.07.2024

Date(s) of on-the-spot-check(s): N/A +

Contradictory procedure from N/A to N/A

Date of final version 10.09.2024

2.3 Expenditure covered by this audit report and checklist (in EURO)

Progress report(s) No(s): PR no 6

(A) Expenditures by budget-lines covered by this audit report and checklist Total (€)

BL 1 Staff-costs 48,465.38

BL 2 Office and administration 7,269.81

BL 3 Travel and accommodation 935.81

BL 4 External expertise/services 10,591.60

BL 5 Equipment costs 0.00

BL 6 Infrastructure and works 0.00

BL 7 Expenditure for specific project activities 0.00

Total (A) 67,262.60

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(B) Funding source Total (€)

Amount of Programme co-financing (ERDF, NOR, ENI/RU) 57,173.21

Amount partner’s own contribution 10,089.39

Total expenditure ( = Total A) 67,262.60

2.4 Total expenditure reported by the partner (Cumulating ALL REPORTS up to this audit)

(A) Expenditures by budget lines cummulated Total (€)

BL 1 Staff costs 185,788.97

BL 2 Office and administration 27,868.34

BL 3 Travel and accommodation 6,581.07

BL 4 External expertise/services 11,592.28

BL 5 Equipment costs 0.00

BL 6 Infrastructure and works 0.00

BL 7 Expenditure for specific project activities 0.00

Total (A) 231,830.66

(B) Funding source Total (€)

Amount of Programme co-financing (ERDF, NOR, ENI/RU) (B1) 197,056.05

Amount of partner’s own contribution (B2) 34,774.61

Total expenditure ( = B1+B2 =Total A) 231,830.66

2.5 Audit methodology used by the auditor

Audit Strategy and supporting audit documents developed by the Audit Authority of Interreg Baltic Sea Region. Additional supporting audit documents developed by the Financial Control Department. The auditor decided not to carry out an on-the-spot check. The auditor finds the risk of not conducting an on-the-spot check low in this case, since the costs included one relatively small physical purchases and no investments. Instead, online meetings (e-mails) were used to discuss the project with the auditee.

3. Audit findings: General comments on findings (please comment financial findings)

No findings.

3.1 Ineligible expenditure detected (in Euro)

Did the second level audit detect any ineligible State aid relevant expenditure?

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3.1.2 Not State aid relevant ineligible expenditure detected (in Euro)

Budget line Description of ineligible item legal basis Total (€)

BL1 N/A

Add lines Delete lines

BL2 automatically calculated flatrate (15%) based on the Programme Manual 0.00

N/A

Add lines Delete lines

Amount of Programme co-financing (ERDF, NOR, ENI/RU) (A) Co-financing rate 85 % 0.00

Amount of partner’s own contribution (B) 0.00

Total of ineligible expenditure (A+B) 0.00

3.2 Management and other findings (please comment findings e.g. without financial impact)

No findings.

3.3 Auditee’s comments

Not applicable.

4. Notification to OLAF (> EUR 10.000 ERDF)

Not applicable.

5. Conclusion and key recommendations from the SLA (on financial and non-financial findings)

The auditor has obtained reasonable assurance that the expenditure declared under the audited operation #R096 "LUCIA" in the reference year 2021 is, in all material aspects, legal and regular. There are no findings or recommendations.

6. Signature(s) and stamp(s) of the SLA Place and date:

Tallinn 10.09.2024

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Name of the SLA(s):

Laura Väikemaa / Audit Manager (signed electronically) Mart Pechter / Audit Supervisor (signed electronically)

(Electronic) Signature and stamp

Suur-Ameerika 1 / 10122 Tallinn / 611 3558 / [email protected] / www.rahandusministeerium.ee

registrikood 70000272

Tiit Land

Tallinna Tehnikaülikool

[email protected]

Auditi lõpparuande edastamine

Austatud härra Land

Edastame Teile Läänemere piirkonna INTERREG V-B programmi projekti „LUCIA“ (nr

R096) partneri Tallinna Tehnikaülikooli projektiauditi lõpparuande.

Täname Teid meeldiva koostöö ja osutatud abi eest.

Lugupidamisega

(allkirjastatud digitaalselt)

Anu Alber

finantskontrolli osakonna juhataja

auditeeriva asutuse juht

Lisa:

Auditi lõpparuanne

Sama:

Pr Tiina Sams, Riigi Tugiteenuste Keskus ([email protected])

Laura Väikemaa 5879 5153

[email protected]

Meie 10.09.2024 nr 10-5/3969-1