Preparedness for auditing

The audit obligation depends on the funding scheme. You can always check whether your funding comes under the audit obligation in the terms and conditions of the funding decision. All funding decisions on research infrastructuresstrategic researchflagshipsCentres of Excellence (CoE) and university research profiling are subject to the obligation regardless of the total amount granted (individual decision or consortium in total).The eight-year CoE term is split into two parts (5 + 3 years).

At present, the audit obligation also applies to those Academy Programme funding decisions where the total Academy funding (individual decision or consortium in total) exceeds 1 million euros.

The auditor’s report must be submitted to the Academy’s Registrar’s Office within three months of the end of the funding period. The auditing costs must be included in the last request for payment. We may also request the report separately, if necessary. In addition, we may commission a sample-based project audit in accordance with our own annual audit plan.

The latest auditor’s report template is available on this page, and it serves as the basis of the audit regardless of the date of the funding decision. The audit obligation, the project implementation and the compliance with the funding terms and conditions are always examined in line with the terms in force at the time of the decision. A funding decision may also be accompanied by specific conditions.

The audit proceeds based on the report template, taking into account the funding scheme audited and crossing out unnecessary sections. Please contact the auditor in good time before the end of the funding period. The final approval of the costs will be given only after the audit report has been submitted.

The audit is a way to ensure that the reported cost accrual corresponds to the total project costs. The costs must have been incurred during the period mentioned in the funding decision, taking into account any extensions granted. The only costs partly incurred after the project period that are accepted are the auditing costs. As this expense must be included in the final payment request, it is important that the audit invoice is delivered promptly.

It is worth remembering that the cost will not be accepted if it was incurred before the start of the project, regardless of when it was paid. Similarly, costs incurred after project completion will not be accepted. However, the invoice may be dated after the project period, provided that the cost has accrued on an accruals basis during the project. For example, invoices for outsourced services may come and may be paid only after the end of term of the funding decision. The invoice is acceptable for project costs if the work on which the invoice is based has been carried out during the term of the decision.

In the project’s books, the project costs incurred must be identifiable and their connection with the accounting and reporting must be clear. For example, the costs may be identifiable by project number or cost pool.

As a rule, the Academy’s funding terms and conditions always require that that the hours worked on the project are tracked. If the work time tracking has not been set up as required by the funding terms and conditions, the salaries of the person in question might not be accepted as project costs. The person’s supervisor or the project PI shall confirm the hours worked in such a way that they are recorded in the tracking system.

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