Türgi päästemissiooni kulude auditi raporti mustand



LETTER OF REPRESENTATION

EY Réviseurs d'Entreprises SRL / EY Bedrijfsrevisoren BV
Kouterveldstraat 7B, B001, 1831 Diegem, Belgium

Audit of expenditure in respect of grant agreements funded by the European Commission Directorate-General for European Civil Protection and Humanitarian Aid Operations (DG ECHO)


Dear Sir/Madam,
As requested by you, we confirm that:
1. This letter is provided in connection with your audit of expenditure incurred in respect of the following grant agreement(s):
• ECHO/RESP/INT/SUB/2023/896411/TREE1 - EARTHQUAKE IN TURKIYE - TRANSPORT GRANT 2023

2. We note that in accordance Article 27 of the General Conditions (transport grants) or Article 25 of the UCPM MGA (other actions), you have carried out an audit of the Final Financial Report(s) submitted to DG ECHO with the following objectives:
2.1. To provide assurance to the European Commission as represented by DG ECHO, that the costs claimed under the Action(s) funded by the European Union comply with the eligibility criteria as set out in the Grant Agreements; and
2.2. To provide recommendations for improvement to systems insofar as they relate to ensuring the eligibility of grant expenditure and reduce the risks bearing on the use of EU funds.
3. We acknowledge our responsibility for the following:
3.1. Maintaining an adequate system of financial internal control and proper accounting records that record all financial transactions entered into by the organisation and all of its assets and liabilities;
3.2. The prevention, detection, reporting and response mechanism to fraud;
3.3. The safeguarding of the organisation's assets;
3.4. Compliance with the conditions set out in the grant agreements referred to above;
3.5. Providing ECHO and you as auditors acting on behalf of ECHO with all the information and explanations required.
4. In relation to your compliance audit of the grant agreement(s) noted above, having made such enquiries of the staff and officers of the organisation as we deemed appropriate and to the best of our knowledge, we confirm that:
4.1. We have provided you with all relevant accounting records and that details of all transactions undertaken have been properly reflected and recorded in the accounting records;
4.2. All other records and relevant information which might impact upon or otherwise effect the contractual eligibility of the costs claimed under the various grant agreements noted above (including minutes of trustees / directors, and relevant management or committee meetings) have been made available to you and no such information has been withheld;
4.3. We have provided you with all the supporting documentation relating to the sample of costs claimed in the Action financial statement(s) selected for detailed testing by your firm;
4.4. There have been no transactions with or otherwise involving the trustees / directors, management or employees of the organisation (or other entities in which they have an involvement) which might otherwise be deemed or construed to be a "related party transaction" as defined by International Accounting Standard No. 24 (Related Party Disclosures) that are relevant to the audit of (this/these) grant agreement(s);
4.5. No events have occurred after the date of submission of the Financial Reports which would have a significant financial impact upon the costs originally claimed;
4.6. We have disclosed to you all information in relation to fraud or suspected fraud that we are aware of and that affects the entity and involves:
• Management;
• Employees who have significant roles in internal control; or
• Others where the fraud could have a material effect on the financial statements.
4.7. We have disclosed to you all information in relation to allegations of fraud, or suspected fraud, affecting the entity’s Financial Reports communicated by employees, former employees, analysts, regulators or others.
4.8. We have disclosed to you all known instances of non-compliance or suspected non-compliance with laws and regulations;
5. We have read the draft of your audit report of The Ministry of the Interior, Estonian Rescue Board:
5.1. In respect of the potential adjustments set out in your report, we have noted the amounts involved and the reason for these potential adjustments, and we have also noted the recommendations you have made;
[Adapt the following based on agreement / partial agreement / no agreement as appropriate.]
5.2. We are in agreement with:
• The content.
• The recommendations made and will respond in accordance with the action plan in the report.
• The proposed adjustments.

We partially agree with:
• The content.
• The recommendations made and will respond in accordance with the action plan in the report.
• The proposed adjustments.

We do not agree with:
• The content.
• The recommendations made and will respond in accordance with the action plan in the report.
• The proposed adjustments.
The reasons for our partial agreement or disagreement are disclosed in Section 4 of the report, a copy of which is attached to this letter.
Yours faithfully

…………………………………………………………….
The Responsible Financial Officer
For and on behalf of The Ministry of the Interior, Estonian Rescue Board


Date

………………………..


ECHO AUDIT FRAMEWORK CONTRACT



Draft Audit Report


Civil Protection Financial Instrument


Audited organisation:
Ministry of the Interior, Estonian Rescue Board
Grant agreement audited:
ECHO/RESP/INT/SUB/2023/896411/TREE1
Audit reference Number:
25-BA279-28
Audit Dates:
14/07/2025 – 17/07/2025











The views expressed herein are those of the independent auditor and do not necessarily represent any official view of the Commission

Content

1. Executive Summary 3
1.1. Audit opinion 3
1.2. Audit adjustments and recommendations for systems improvement 7
2. General information 8
2.1. Information on the audited organisation 8
2.2. Description of the audited action 8
3. Audit work and findings 9
3.1. Direct costs of personnel 9
3.2. Direct costs of travel and subsistence 9
3.3. Direct costs of equipment 9
3.4. Direct costs of subcontracting 9
3.5. Other direct costs 10
3.6. Indirect costs 10
3.7. Receipts / Interest on pre-financing 10
4. Analysis of the beneficiary’s comments 11
5. Annexes to the audit report 12
Annex 1 - Costs claimed and audit adjustments 13
Annex 2 – Recommendations for systems improvement 14
Annex 3 - Analysis of direct personnel costs 15
Annex 4 – follow-up of previous audit recommendations 16
Annex 5 – working programme 17
ANNEX 6 – Audit Sample 20
ANNEX 7 – Comments of the Beneficiary and Letter of Representation 21

1. Executive Summary
1.1. Audit opinion
The auditors have audited the financial statements as set out in the table below submitted to the services of the European Commission by the Estonian Rescue Board (under the Ministry of the Interior), the “Beneficiary”:
Grant agreement name
Transport and Operations Grants – 2023 – Earthquake in Türkiye
Grant agreement no.
ECHO/RESP/INT/SUB/2023/896411/TREE1
Period audited
From
7/02/2023

To
14/02/2023
Total amount accepted EC
EUR 574.730,51
Co-financing rate
75,00%

Responsibility of the Beneficiary for the Financial Statements
The Beneficiary is responsible for the preparation and fair view of the financial statements in accordance with the grant agreement and for maintaining adequate accounting records and documentation to support and justify the costs reported. The Beneficiary is also responsible for such internal controls as are necessary to enable the preparation of financial statements that are free from misstatement, whether due to error or fraud.
Auditors’ Responsibility
The auditors' responsibility is to express an independent opinion, based on their audit procedures, on the financial statements of the above mentioned grant agreement (GA) only as to whether the costs have been properly incurred and are eligible costs, as defined under the grant agreement.
The auditors conducted their audit taking into account the provisions of the audited grant agreement under the Civil Protection Financial Instrument and in accordance with International Standards on Assurance and Audit Engagements as they are applicable solely in relation to the special scope of this engagement only. Those standards require that the auditors comply with ethical requirements and plan and perform an audit to obtain reasonable assurance that the financial statements are free of material misstatement. An audit engagement involves performing relevant procedures to obtain evidence about the amounts claimed in the financial statements.
The procedures selected depend on the auditors' judgement, including the assessment of the risks of material misstatement of the financial statements.
In making those risk assessments, the auditors consider internal controls relevant to the entity’s preparation and presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances relevant for the scope of this engagement, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal controls as a whole.
An audit also includes evaluating the appropriateness of accounting policies used for the preparation of the financial statements submitted to the European Commission services as well as evaluating the overall presentation of these financial statements.
The auditors believe that the evidence obtained is sufficient with respect to the objectives relevant for their engagement and appropriate to provide a basis for their opinion.
Additional Conditions
The auditors' work has been undertaken so that the auditors might state to the European Commission those matters which they are required to state in their audit report and for no other purpose. The auditors are thus responsible solely to the European Commission for their work and the opinion that they have formed. To the fullest extent permitted by law, the auditors do not accept or assume responsibility to anyone other than the European Commission unless such responsibility has been expressly accepted.
The primary responsibility for the prevention and detection of fraud and error rests with those charged with the governance and management of the Beneficiary. It is the responsibility of those charged with the governance of the Beneficiary to ensure, through oversight of management, the integrity of the accounting and financial reporting systems and that appropriate controls are in place. It is the responsibility of the management of the Beneficiary to establish a control environment and maintain policies and procedures to assist in achieving the objective of ensuring, as far as possible, the orderly and efficient conduct of the Beneficiary’s affairs. This responsibility includes implementing and ensuring the continued operation of accounting and internal control systems which are designed to prevent and detect fraud and error. Such systems can only reduce but not eliminate the risk of misstatements, whether caused by fraud or error. Management retains responsibility for any remaining risk. It should be understood that if we detect fraud or other coercive practices we are obliged to report this to the responsible services.
The auditors' work is not designed specifically to identify incidences of fraud. Accordingly, fraud may occur and not be detected.
The auditors have nevertheless obtained representations made by the Beneficiary in relation to the authenticity and completeness of the supporting documentation provided to them.
[If no LoR received, please replace the former sentence with the following paragraph:
Despite their request, the auditors have not obtained representations made by the Beneficiary in relation to the authenticity and completeness of the supporting documentation provided to them. The presentation of the Letter of Representation by the Beneficiary is a current practice in the context of an audit and is governed by the international auditing standard ISA 580. It is a document that the auditors consider necessary as part of their audit work. This Representation Letter shows, among others, that the Beneficiary's management acknowledges its responsibility in the preparation, approval and presentation of reliable financial statements and other documents and/or information provided. In the absence of such a statement, the auditors may qualify their opinion with a limitation on the scope of the audit work. Ultimately, the auditors could declare that they are unable to give any assurance as to the eligibility of the expenditure claimed. This scenario could ultimately lead to significant financial consequences.]
The auditors' work in assessing the necessity of costs incurred for the implementation of an action is limited to verifying, to the extent that they are qualified and able to, that those costs have been incurred solely for the intended purpose of the grant agreement. This normally implies verifying that specific costs are provided for in the budget proposals sent to the European Commission services prior to grant agreement signature and that those costs when actually incurred are processed, validated and approved within an accounting system and related internal control structure that would meet or exceed the generally accepted international principles of sound financial management.
The work performed by the auditors is not a value for money or performance audit. The audit work performed relating to the verification of the economy of the costs is limited to:
• verifying that claimed costs are incurred in line with the usual administrative and management practices of the Beneficiary and;
• assessing whether these costs, in pure monetary terms, are evidently reckless or unreasonable as defined within the grant agreement terms and conditions.
This is a report by exception. As such, it cannot normally create legitimate expectations on the conformity of the costs declared or the methods of calculation used.
Other matters
No other matters were identified.
Opinion
During our audit the auditors noted the following adjustments:
Action reference
Amount claimed
Amount accepted EC
Amount eligible after audit
Adjustments1
ECHO/RESP/INT/SUB/2023/896411/TREE1
586.864,91
574.730,51
574.730,51
-
TOTAL
586.864,91
574.730,51
574.730,51
-

These are set out in the Summary of Audit Adjustments presented in the section 1.2.
In our opinion, except for the effect of the matters as detailed in the section 1.2, the audited financial statements properly reflect eligible costs, receipts and interests, which:
• are actual;
• have been incurred by the Beneficiary during the duration of the action and in the financial periods audited;
• have been indicated in the estimated budget;
• have been incurred in connection with the action as described in the GA and necessary for its implementation;
• have been determined in accordance with the usual accounting and management principles and practices of the Beneficiary;
• have been used for the sole purpose of achieving the objectives of the action and its expected results, in a manner consistent with the principles of economy, efficiency and effectiveness;
• have been recorded in the accounts of the Beneficiary;
• are exclusive of any non-eligible costs established in Article 19.4 of the General Conditions of the grant agreement with the European Commission.
Based on our audit and except for the matters as described in the section 1.2 below, the auditors can conclude that the financial management of the action was carried out in an acceptable manner and in compliance with the requirements of the grant agreement.

DATE


EY Bedrijfsrevisoren BV
Represented by



Sandro Galea*
Partner
*Acting on behalf of a BV/SRL



1.2. Audit adjustments and recommendations for systems improvement
Audit findings and adjustments
The adjustments required to the costs accepted by the European Commission services are summarised below:
Grant agreement: name
Transport and Operations Grants – 2023 – Earthquake in Türkiye
Grant agreement: no
ECHO/RESP/INT/SUB/2023/896411/TREE1
Co-financing rate
75,00%
 
 
 
Cost categories:
Adjustments (EUR)
A
Personnel
-
B
Travel and subsistence
-
C
Equipment
-
D
Sub-contracting
-
E
Other direct costs
-
 
Indirect costs
-
TOTAL
-
ECHO CONTRIBUTION
-
 
 
 
Receipts
-
Interest on pre-financing
-
 
 
 

Systemic findings
No systemic findings were identified during the audit.

Observations and Recommendations for systems improvement
Observations:
We noted that food packs for the USAR team, for a total value of EUR 5,495.18, which are expenditures of “travel and subsistence” nature, were wrongly categorised under “personnel costs”. Although, these costs were not considered ineligibles, this is not in line with sound financial management.
Recommendations:
We recommend that the Estonian Rescue Board (ECB) reviews of nature of each costs and reports those costs incurred in line with their relevant cost category.
2. General information
2.1. Information on the audited organisation
Audited Beneficiary
Ministry of the Interior, Estonian Rescue Board
Address of the Beneficiary
Raua 2,
Tallinn 10124,
Estonia
Persons present – the Beneficiary
Toomas Kaaparin - Head of civil protection division
Kylli Niinemae - Financial advisor
Persons present – Auditors
Anna Pomazan – EY Team Member
Jade Stas – EY Team Leader
Legal status
The Estonian Rescue Board is a governmental agency under the Ministry of the Interior, with primary mission to develop and maintain a secure environment in Estonia and to proactively anticipate potential threats. The board is committed to providing prompt and professional assistance to individuals in the event of emergencies.
Established on 25 May 1992, under the registration number of 70003640, the board’s activities are governed by the Emergency Act and other relevant legislation, with financial regulations subject to the State Budget Act and public procurement laws.
Accounting system and basis
Accounting System
SAP (ERP system)
Basis of accounting
Accrual
SAP is designed to enhance operational efficiency and effectively manage resources, while ensuring accuracy and accountability in financial reporting. The system supports double-entry bookkeeping and allows for project accounting, such that all costs related to specific projects are accurately tracked. The project in scope is registered under the project code S30-TYRGI.

2.2. Description of the audited action
On 6 February 2023, a 7.8 magnitude earthquake struck near Gaziantep in southeastern Türkiye, near the Syrian border, followed by a 7.5 magnitude earthquake in the Kahramanmaraş area later that day. Aftershocks continued to cause further damage and casualties.
Immediately after the earthquakes, Türkiye activated the Union Civil Protection Mechanism (UCPM) to request Urban Search and Rescue (USAR) teams. In response, the Emergency Response Coordination Centre (ERCC) invited Estonia to deploy the Estonian HUSAR (Heavy Urban Search and Rescue) team (EST-HUSAR) under the European Civil Protection Pool (ECPP).
Estonia offered the HUSAR module, consisting of 35 members and necessary equipment, which departed from Tallinn Airport on 7 February and arrived at Incirlik Airbase in Türkiye. The team operated in Türkiye for eight days before returning to Tallinn from Adana Airport on 14 February.
The total amount of costs claimed related to this action is EUR 586.864,91 with an EU co-financing rate of 75,00%.
3. Audit work and findings
3.1. Direct costs of personnel
Work performed
The tests were performed on a sample basis during our audit work according to the working programme, as summarised in Annex 4 (section 1) to this audit report.
Personnel cost calculation
Personnel costs for this operation are associated with the 35 members who participated in the action in Türkiye. The Estonian Rescue Board (ERB) has a Director General directive that includes all reserve members, which is updated annually. This list comprises both ERB employees and volunteers, all of whom are prepared and trained to be deployed in accordance with the board's regulations.
Members are notified of the need for deployment through an SMS alert system, to which they can respond with 'yes' or 'no.' From those who respond, specific members are selected for each task within the team.
According to the Participation in International Civilian Missions Act § 18, the remuneration of experts is determined by the location of the mission, the specifics of the expert’s tasks, and the level of danger associated with the mission region. The salary cannot exceed fifteen times the Estonian minimum wage; this threshold is set in national and internal regulations.
The remuneration rate is not a fixed flat rate, nor is there a specific formula for its calculation based on the type of variables mentioned in the preceding paragraph. Decisions are made based on logical reasoning and must remain below the defined threshold, which is what we observed through the audit. Given the urgency of situations faced, the Beneficiary indicated that as there is insufficient time for extensive risk assessments or complex formula development the rate is determined through discussions with the Director General and established verbally. For instance, for missions taking place in Ukraine, the maximum wage is applied due to higher risks. For the mission that is subject to this audit, the risk was reasoned as average, and the rate used was lower.
For this mission, the wage provided for the rescue workers is EUR 3.053,00 for eight full days. We have verified that this amount is below the maximum threshold specified above. In addition to this remuneration, the employer pays social tax and unemployment insurance premiums, resulting in a total cost of EUR 4.084,91 per rescue worker.
The number of days to be worked on the mission is established in advance through a signed contract, that the auditors have verified. Furthermore, after the mission, a task completion report is prepared and signed, confirming ex-post, that the individual participated in the rescue team for a total of eight full calendar days.
Findings
No findings were noted as a result of our audit work.
3.2. Direct costs of travel and subsistence
Work performed
The tests were performed on a sample basis during our audit work according to the working programme, as summarised in Annex 4 (section 2) to this audit report.
Findings
No findings were noted as a result of our audit work.
3.3. Direct costs of equipment
Work performed
The tests were performed on a sample basis during our audit work according to the working programme, as summarised in Annex 4 (section 2) to this audit report.
Findings
No findings were noted as a result of our audit work.
3.4. Direct costs of subcontracting
Not applicable – there were no direct costs of subcontracting charged to the project.
3.5. Other direct costs
Work performed
The tests were performed on a sample basis during our audit work according to the working programme, as summarised in Annex 4 (section 2) to this audit report.
Findings
No findings were noted as a result of our audit work.
3.6. Indirect costs
Not applicable – there were no indirect costs charged to the project.
3.7. Receipts / Interest on pre-financing
Not applicable – there were no receipts or interest on pre-financing received.
4. Analysis of the beneficiary’s comments
(To insert)
5. Annexes to the audit report

Annex 1
Costs claimed and audit adjustments
Annex 2
Recommendations for systems improvement
Annex 3
Analysis of direct personnel costs
Annex 4
Follow up of previous audits recommendations
Annex 5
Working programme
Annex 6
Audit Sample
Annex 7
Comments of the Beneficiary & Letter of Representation



Annex 1 - Costs claimed and audit adjustments
Beneficiary
Ministry of the Interior, Estonian Rescue Board
Country


Estonia
Grant agreement name
Transport and Operations Grants – 2023 – Earthquake in Türkiye
Maximum ECHO contribution
Grant agreement reference
ECHO/RESP/INT/SUB/2023/896411/TREE1
436.738,50
Period
From:
7/02/2023
Co-financing rate
Consolidated

To:
14/02/2023
75,00%









Cost categories
Amount budgeted
Amount claimed
Amount accepted EC
Amount eligible
Adjustments
A
Personnel
142.975,00
176.039,54
174.719,54
174.719,54
-
B
Travel and subsistence
394.095,00
390.199,83
390.199,83
390.199,83
-
C
Equipment
-
15.312,83
4.498,43
4.498,43
-
D
Sub-contracting
-
-
-
-
-
E
Other direct costs
45.248,00
5.312,71
5.312,71
5.312,71
-

Indirect costs/overheads
-
-
-
-
-
TOTAL ELIGIBLE COSTS
582.318,00
586.864,91
574.730,51
574.730,51
-
ECHO CONTRIBUTION
436.738,50
440.148,68
431.047,88
431.047,88
-
Potential Recovery




-






Receipts
-
-
-
-
-
Interest pre-financing
-
-
-
-
-


Annex 2 – Recommendations for systems improvement
We make the following recommendations2 for systems improvements. The recommendations highlight weaknesses in the system of internal controls of the Beneficiary in the view of the auditors. ECHO would like the Beneficiary to identify the actions necessary to address these weaknesses and to take such action, or to state why the recommendations will not be implemented. ‘Urgency’ in the table below refers to the time by which the Beneficiary should begin the implementation process. * = previously raised recommendation.

Number
Rating
Recommendation
Urgency
(Months)
ACCEPTED BY
Beneficiary (Y/N)
Beneficiary’s Response, Action Planned, Timeframe Proposed
Staff costs
1
3
We recommend that the Estonian Rescue Board (ECB) reviews of nature of each costs and reports those costs incurred in line with their relevant cost category.
6
Y/N




Annex 3 - Analysis of direct personnel costs
Not applicable









Annex 4 – follow-up of previous audit recommendations
Not applicable as there were no previous reports available.



Annex 5 – working programme
1. Direct personnel costs:
• The auditors have reconciled the breakdown of personnel costs with the claimed costs;
• The auditors have verified whether the declared personnel costs are booked in the accounts in accordance with the usual accounting standards and practices applied by the Beneficiary. When available, reliance was put on the statutory auditor's report;
• The auditors have tallied the declared personnel costs with the information in the general ledger and analytical accounting;
• The auditors have verified whether the general eligibility conditions laid down in Article 19.1 and 19.2 of the common provisions applicable to the GA were met;
• The auditors have checked that ineligible items, as set out in Article 19.4 of the common provisions of the GA were properly eliminated by the Beneficiary;
• The auditors have verified that the costs declared were incurred during the implementation period as set out in Article 2 of the Special provisions of the GA;
• The auditors have verified whether personnel costs relate to personnel working for the Beneficiary;
• The auditors have verified whether payments were executed for the amounts claimed;
• The auditors have assessed the compliance of the declared personnel costs with applicable national law on taxes, labour and social security. When available, reliance was put on the statutory auditor's report;
• The auditors have verified whether the salaries charged include only gross basic salary, obligatory social charges and statutory costs.
• The auditors have checked that only costs directly attributable to the action were declared;
• The auditors have checked whether the personnel costs have been incurred in connection with the action described in the GA and necessary for its implementation;
• The auditors have verified that the basic salary and the mandatory complements are fixed in terms of conditions and amount/percentage by national legislation and do not depend on the participation in a specific action/action;
2. Direct costs of Travel and subsistence, Equipment and Other
• The auditors have reconciled the breakdown of the costs with the claimed costs;
• The auditors have reconciled the costs charged with the analytical accounts of the action;
• The auditors have confirmed that the sampled costs are recorded in the accounting books in accordance with the relevant standards and the Beneficiary's usual accounting practices. When available, reliance was put on the statutory auditor's report;
• The auditors have reconciled in monetary terms the tested costs to the specific underlying documents;
• The auditors have verified whether the general eligibility conditions laid down in Article 19.1 and 19.2 of the common provisions applicable to the GA were met;
• The auditors have checked that ineligible items, as set out in Article 19.4 of the common provisions of the GA were properly eliminated by the Beneficiary;
• The auditors have verified that the costs were incurred during the implementation period as set out in Article 2 of the special provisions of the GA;
• The auditors have reviewed invoices, especially for date of purchase and nature of other direct costs;
• The auditors have checked whether the costs were substantiated by proofs of payment;
• The auditors have verified that the Beneficiary dully considered later altering events (e.g. rebates, discounts, credit notes, invoice cancellation, etc.) when claiming costs;
• The auditors have checked that the accounting supporting documentation is in accordance with the relevant applicable accounting standards;
• The auditors have checked whether the costs were charged without VAT, if VAT is deductible for the Beneficiary according to the national tax law;
• The auditors have checked whether the costs were reasonable and justified and have been incurred in connection with the action described in the GA and/or the technical and scientific reports, and were necessary for its implementation;
• The auditors have checked whether the Beneficiary observed the best value for money and whether costs were not excessive or reckless;
• The auditors have checked that original underlying documents bear exclusive reference to the EU action under audit;
• The auditors have checked if the Beneficiary's internal written procedures cover measures for avoidance of conflict of interest.
Travel costs and related subsistence allowances
• The auditors have verified whether the general eligibility conditions laid down in Article 19.2 of the General Conditions applicable to the GA were met;
• The auditors have checked the relevance of travel and subsistence costs by reconciling them with the dates of events and the participating persons based on attendance lists;
• The auditors have checked that the travel and subsistence costs were incurred by individuals effectively working for the action;
• The auditors have checked that the claimed travel and subsistence costs were compliant with the Beneficiary's written internal policy and procedures. Alternatively, we have confirmed that the Beneficiary applied consistent approach for all travel arrangements claimed;
• The auditors have confirmed that the event for which travel and subsistence costs were claimed was exclusively related to the audited action.
Depreciation costs of equipment
• The auditors have verified whether the general eligibility conditions laid down in Article 19.1 and 19.2 of the General Conditions applicable to the GA were met;
• The auditors have checked purchase orders, delivery notes and proofs of payment;
• The auditors have checked whether the costs charged were in accordance with applicable standards and the depreciation was in accordance with the Beneficiary's usual accounting practices;
• The auditors have verified that only depreciation accumulated during the period of the action and corresponding to the rate of actual use for the purposes of the action were charged;
• The auditors have verified whether profit was generated and declared as receipt by the Beneficiary;
• The auditors have verified whether the costs of or leasing (if applicable) do not exceed the depreciation costs of similar equipment, infrastructure or assets and do not include any financing fees.
Costs of other goods and services
• The auditors have verified whether the general eligibility conditions laid down in Article 19.1 and 19.2 of the General Conditions applicable to the GA were met.
• The auditors have checked purchase orders, delivery notes and proofs of payment;
• The auditors have verified that the valuation method used to determine the costs of supplies already in stock and used for the action is compliant with the usual practices of the Beneficiary.
• The auditors have verified that the goods and services directly linked to the action are precisely measured and charged at cost.
• The auditors have verified that the applicable national law on public procurement was correctly applied.


ANNEX 6 – Audit Sample

Cost Category
Number of transactions sampled
Amount of transactions sampled (EUR)
Personnel
6
24.509,46
Travel and subsistence
2
388.679,00
Equipment (depreciation only)
1
4.498,23
Subcontracting/external assistance
-
-
Other direct costs
1
4.346,45
Indirect costs
-
-
Total Sampled Transactions
10
422.033,14
Total Costs as per Financial Report
586.864,91
Coverage (%)
71,91%

















ANNEX 7 – Comments of the Beneficiary and Letter of Representation
(The Beneficiar(y)(ies) is/are advised to provide a clear description on the issues that are in disagreement with its point of view.) In case of multi-beneficiary grant agreement, pls add Letter of Representation per beneficiary.