Required documents for accounting and

auditing

Albena Vutsova&Lora Pavlova

Personnel costs

Employment contracts ( or other legal justification);

Ledgers/accounts, payroll records; Time-sheets; Detailed breakdown and justification of

productive hours Hourly rates include personnel salary and

overhead

Overhead costs

Documentation concerning the calculation of the overhead costs

Breakdown of incurred costs by category of expenses charged to the project;

Equipment/Consumables

Invoices; Proof of payment; In case of rented equipment*:

Rental contract Inventory list of the rented equipment Proof of the investment values of the rented equipment * rental contract should has a clause that the equipment

will be bought!

Record concerning computer usage, if aplicable

Third Party/Assistance

Sun-contracts; Invoices; Proof of payment; Original deliverables of the subcontractors; Evidence of the internal management and

supervision procedures to confirm completion of work required

Travel expenses

Invoices; Mission approval forms; A report. Record, minutes, proceedings; etc.

indicating purpose and participants of the meetings/events;

Bank Statements

In case you are coordinator of the contract, bank statements relating to the payments of EC contribution and the distribution to the contract partners

General ledger/Management accounts

Salient extracts (Clear, visible, obvious, provable) and reconciliation of costs claimed - back to the accounting records in order to facilitate easy and swift verification of costs and their eligibility

Auditor certificates

Copies of any auditors certification statements issues with a claim for cost reimbursement

Accounting principles

Albena Vutsova&Lora Pavlova

General:

Read the Commission documents No binding “Financial rules” There are Financial Guidelines that set the

main principles All organizations keep a proper account

books, documentation and records that facilitate justification of eligible costs

Main principles applied

As of 2008 – GAAP ( General Accepted Accounting Principals) are replace by IFRS ( International Financial Regulation Standard)

The auditor should comply with the IFRS principles;

Major change of FP7 is that all costs – direct and indirect must appear in the organizations book of accounts!!!

Financial statements:

Understandable – i.e. clear and simple information;

Relevant Reliable Timely Consistent, i.e. in case of changes of the

applicable accounting standards; Comparable

Participation without funding

Possible for legal entities to participate in a project without EC contribution: Their costs are recorded in the overall project

budget BUT Not subject to financial audits

Subcontracting Relate to a minimum part of the project; Duly justified; The beneficiary remains fully responsible for carrying out the

project, retains the IPR and ensure that certain provisions of the GA is reflected in the agreement with the subcontractor;

Legal entities; Subcontracting by between beneficiaries is not possible Best bid applied and following national legislation; VAT is non-eligible cost; The reimbursement rate of the costs for subcontracting depends

on the type of activities subcontracted; Subcontractors do not submit Financial statements, their costs

are identified by the relevant Beneficiary

Thank you

l.pavlova@mon.bg