Audit report for audits of operations

Central Baltic Interreg VI-A 2021-2027 programme

CCI No. 2021TC16RFCB013 Identification of the audit

Project ID and acronym CB0100014 “BALTIC2HAND”

Audited organization Tallinn Business Incubators Foundation

1. Executive Summary

The result of the audit regarding the expenditure on the audit scope:

X No findings.

2. Introduction

Audit Authority responsible for the audits of operations within the Central Baltic Programme 2021-2027 (hereafter Programme) or member of the Group of Auditors responsible for the audits of operations on its territory within the Programme has performed the audit in compliance with Article 77(1) of Regulation (EU) No. 2021/1060 (hereafter CPR) and Article 48(2) of Regulation (EU) No. 2021/1059 (hereafter Interreg regulation). The beneficiary (identified in the cover page) has been selected for audit by the European Commission in the framework of the common Interreg sample for the accounting year 1.7.2023-30.6.2024 according to Article 49 of the Interreg regulation. The audit was carried out in compliance with internationally accepted audit standards and in accordance with the audit strategy for the Programme. The audit was conducted based on documents available in the monitoring system used by the audited Programme, as well as data requested from the audited benefi- ciary, as necessary.

3. Scope and objectives of the audit work done

The scope of the work corresponded to the expenditure declared to the Commission in the accounting year 1.7.2023-30.6.2024 in respect of the audited beneficiary within the operation. The general objective of the audit mission was to verify based on supporting documents the legality and regularity of expenditure de- clared to the EC and existence of the audit trail. The audit covered the verification of the following specific aspects:

• eligibility of the operation, the beneficiary and contracting in respect of the audited beneficiary, including compliance with horizontal principles and State aid rules.

• reality of the project and regular implementation in accordance with the approval decision and fulfilment of conditions applicable at the time of the audit concerning its functionality, use, and objectives to be attained, in line with the principle of sound financial management.

• compliance of the audited partner with transparency, communication and visibility requirements.

• eligibility of the audited expenditure both for grants taking the form set out in point (a) of Arti- cle 53(1) of CPR, including respect of public procurement rules, and for grants taking the forms set out in points (b), (c) and (d) of Article 53(1) of CPR.

• reliability of data in relation to output and result indicators.

• audited expenditure’s compliance with applicable EU, programme and national rules.

• existence of a separate accounting record or code for project expenditures, and an adequate audit trail that is consistent with the available supporting documentation.

• correspondence of the expenditure declared to the Commission with the accounting records in the managing authority's electronic system.

• absence of double funding of expenditure.

• absence of fraud and conflict of interest.

• if relevant, examination of whether errors, deficiencies and irregularities revealed by the audit are of systemic nature.

4. General information related to the audit

Identification of the project

Full project name As good as new: Enhancing the behavioral and business change of the second-hand textile industry in the Central Baltic region

Project number and acronym CB0100014 – BALTIC2HAND

Priority 2 - Improved environment and resource use

Call no. Call 1 regular projects

Dates of signing the subsidy con- tract (first version)

28.03.2023

Implementation period of the pro- ject according to subsidy contract (or its latest amendment)

01.04.2023 - 31.03.2026

Identification of the auditee

Organization Tallinn Business Incubators Foundation

Legal status Foundation

Contact person

Name: Margaret Aidla Task on the project: Marketing manager Email: [email protected] Phone: +37259052098

Role of the beneficiary in the pro- ject

Lead partner

Project partner

Date when auditee signed the Partnership agreement

26.08.2023

Identification of the SLA auditors

Organization carrying out the audit The Financial Control Department of The Ministry of Finance of Es- tonia

Information of the auditor Confirmation of the impartiality (Yes/No)

Name: Henry Kibin Title: Advisor I have no conflict of interest in relation to the auditee: Yes

Information of the audit supervisor Confirmation of the impartiality (Yes/No)

Name: Mart Pechter Title: Head of the II Audit Unit I have no conflict of interest in relation to the auditee: Yes

Audit scope

Audited reporting periods (No. and dd.mm.yyyy-dd.mm.yyyy)

01.04.2023 - 30.09.2023

Approved expenditure by the Man- aging Authority

8 545,30 €

Audited expenditure 8 545,30 €

Audit coverage ratio 100 %

If less than 100% is audited, please describe the sampling method

N/A

Information on the audit process

Audit was launched on 19.11.2024

Type of the audit Only desk-based check

Includes on-the-spot check

Date(s) and place of on-the-spot check

Due to the principles of risk-based control, the nature of the pro- ject, the amount of simplified costs and the work already per- formed by the national control, it was not necessary to conduct an on-the-spot check or online meeting.

Date of online meeting

Contradictory procedure As no observations were made, the contradictory procedure is not relevant.

Date of the final version 10.12.2024

5. Summary of the audit scope, audited costs and ineligible amount

Cost cate- gory

Audit scope (approved costs by the Managing Authority)

Total amount of audited costs

Total ineligi- ble amount detected in the audit*

Fast track lump sum (Preparation cost)

Partner report No. 1

Total ap- proved costs by the MA

Staff costs

6090,00 6090,00 6090,00 0,00

Office and administra- tion

913,50 913,50 913,50 0,00

Travel and accommoda- tion

913,50 913,50 913,50 0,00

External ex- pertise and services

0,00 0,00 0,00 0,00

Equipment

48,30 48,30 48,30 0,00

Preparation cost (lump sum)

580,00 0,00 580,00 580,00 0,00

Total

580,00 7 965,3 8 545,30 8 545,30 0,00

* Note that if ineligible expenditure is detected in the cost category staff costs, it causes 15 % flat rate correction also in the cost categories office and administration and travel and accommodation. If the rea- son for ineligibility in staff costs is the incorrect amount of project working hours, also costs of project management equipment need to be corrected in the cost category equipment (amount of ineligible work- ing hours x 0,23 €).

Auditor: Henry Kibin

Date: 10.12.2024 ____________________

Signed digitally

Audit supervisor: Mart Pechter

Date: 10.12.2024 ____________________

Signed digitally

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

registrikood 70000272

Pr Anu Lõhmus

Sihtasutus Tallinna Ettevõtlusinkubaatorid

[email protected]

Auditi lõpparuande edastamine

Austatud proua Lõhmus

Edastame Teile projekti nr CB0100014 „BALTIC2HAND” auditi lõpparuande nr CB-1/2024.

Auditi eesmärgiks oli anda hinnang toetuse kasutamisele Vabariigi Valitsuse 12. mai 2022. a

määruse nr 53 „Perioodi 2021–2027 Euroopa Liidu ühtekuuluvuspoliitika fondide vahendite

kasutamise auditeerimine“ § 3 lõike 1 järgi.

Täname Teid 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]).

Teadmiseks:

Hr Urmo Merila, Riigi Tugiteenuste Keskus ([email protected]);

Pr Mairi Uusen, Riigi Tugiteenuste Keskus ([email protected]).

Henry Kibin 5885 1356

[email protected]

Meie 11.12.2024 nr 10-5/5573-1