Terms of Reference for Expenditure Verifications

Terms of Reference for Expenditure Verifications

The terms of reference (ToR) for expenditure verifications replace:

  • Those for financial audits and
  • Expenditure verifications of programme estimates.

They are also to be used together with the ToR for systems audit to replace the ToR for financial and systems audits.

 

Purpose

The new ToR shift the focus from the concept of "audit" to that of "expenditure verification".

No opinion is required but more factual elements are requested.

The text is simplified (25 pages) and the focus is set on the eligibility of the expenditure reported.

 

The Terms of Reference

Expenditure Verifiers will be requested to sample transactions in financial reports on the basis of risk analyses, perform agreed-upon procedures and report on the eligibility of tested items.

The new reports will document the link between the identified risks and the selected sample (size and structure), which transactions were tested, for which of the tested transactions there were findings and for which there were not. This information, available in electronic format, will simplify the reconciliation between reported amounts and the amounts recorded in accounting systems.

 

Expenditure verifications must be carried out in accordance with the following models:

TOOLS

  • The Practical Guide explains contracting procedures for EU external aid contracts financed by the EU general budget (Budget) and the 10th European Development Fund (EDF).

    Consult PRAG

  • E-learning course on the Practical Guide. Do you want to know more about EU external action procedures? See our self-learning distance course on contractual procedures.

    e-Learning PRAG

  • e-Calls PROSPECT is the electronic system developed by EuropeAid to facilitate the submission of applications for call for proposals.

    e-Calls PROSPECT

  • Potential Applicant Data Online Registration database contains information on organisations applying for European Commission grants in the field of external assistance.

    e-Calls PADOR

  • Delegated Cooperation, Cooperation with partner countries and with international organisations, Co-financing and Management Modes.

    Consult DEVCO-Companion