FAQ

A: There are following changes:

• The threshold for the mandatory external audit of projects is changed from the current EUR 10 000 to EUR 15 000 and will apply from the October 2024 call (for projects starting with 2243xxxx).
• The grantees should request the licensed auditor to prepare a Certificate on financial statements.
• Methodology shall be in line with the International Standard on Related Services 4400 (“ISRS4400 (Revised)”). This methodology prescribes specific procedures for the auditor to be applied (“Agreed-upon procedures”). These procedures are defined specifically for each type of cost declared in accordance with the grant contract. The auditor will report a confirmation or an exception for each specific procedure.
• According to the new rules, the Terms of Reference (‘the ToR’) are to be signed by the Grantee and the Auditor. Auditors will produce an independent report of factual findings concerning the Financial Statement(s) and issue a Certificate of Financial statements (‘CFS’) based on the compulsory reporting template (available on our website).
• The Grantee must submit the CFS to the Fund for approval within 30 working days after the Contract Implementation Period End.

A: The CFS is composed of two separate documents:

• The Terms of Reference (‘the ToR’) to be signed by the Grantee and the Auditor;
• The Auditor’s Independent Report of Factual Findings (‘the Report’) to be issued on the Auditor’s letterhead, dated, stamped and signed by the Auditor which includes:
• the Agreed-upon procedures (‘the Procedures’) with factual findings to be confirmed by the Auditor;
• Financial Statements (Summary table, Financial settlement)

The CFS must be included in the final report according to Article 4.1 of the Contract.

A: The auditor must be a holder of a license to provide audit services in accordance with the local legislation applicable in the country where the Grantee’s seat is located and must provide evidence of the license to the Grantee and the Fund upon request. An internal auditor will not be accepted. In case Grantees located in EU member states, the Auditor must be qualified to carry out statutory audits of accounting documents in accordance with Directive 2006/43/EC of the European Parliament and of the Council of 17 May 2006 on statutory audits of annual accounts and consolidated accounts, amending Council Directives 78/660/EEC and 83/349/EEC and repealing Council Directive 84/253/EEC or similar national regulations.

The following are links to national chambers of auditors in the V4 countries as well as to the IFAC:

• http://www.kacr.cz/vyber-auditora
• https://pana.gov.pl/ or http://kibr.org.pl/pl
• http://www.mkvk.hu/
• http://www.skau.sk/
• https://www.ifac.org/who-we-are/membership