The audit, NEF tool and the Use of Resources Report

Step 1 – Audit

Book your auditors for May 2010!

The certificates on the financial statements (CFS) are mandatory only for those beneficiaries and JRU members whose max. requested contribution (Period 1 + Period 2) is equal to or above 375,000 EUR.

Example:

Lead beneficiary requested contribution	250,000 EUR
JRU member 1	100,000 EUR
JRU member 2	50,000 EUR
TOTAL	400,000 EUR -> above the 375,000 EUR threshold

In this case the lead beneficiary and both JRU members must submit the separate CFS! The audit must cover all eligible costs incurred in period 1 and period 2.

Before the start of the audit an Engagement letter shall be agreed with the auditor and be signed and dated by both parties. It must include the Terms of Reference document (Annex VII – Form D of the Grant Agreement).

The beneficiary also has to sign a Representation Letter and send it to the auditor.

The auditor must issue the CFS in English and must follow the compulsory format provided in the Terms of reference. The CFS must be printed on the auditor’s letterhead, be stamped, signed and dated by the auditor on all pages and must include the terms of reference signed by both parties.

For more information about CFS please consult the Guidance notes for Beneficiaries and Auditors:ftp://ftp.cordis.europa.eu/pub/fp7/docs/guidelines-audit-certification_en.pdf

Step 2 - NEF

Deadline 15.06.2010! It’s critical that you respect this deadline!

• After the end of the project period 2 the coordinator will send the link to NEF and the access key to all lead beneficiaries.
• It is the responsibility of each lead beneficiary to provide the link and the access key to the JRU members.
• Each lead beneficiary and JRU member has its own Form C where the period 2 (1.5.09 – 30.4.10) costs have to be entered.
• The cost of the Certificate on the Financial Statement should be claimed under NA1 in the subcontracting row and should be excluding VAT.
• Any adjustments to period 1 are entered separately in the P1 adjustments Form C (only the differences shall be entered, e.g. to decrease period 1 costs by 1,000 EUR enter -1,000 EUR in the adjustments form)
• Upload the signed, stamped and dated Certificate on the Financial Statement including the Terms of Reference.

NEF tool help:

Step 3 - Report on the Use of Resources

Deadline 15.06.2010! It’s critical that you respect this deadline!

Steps:

• Download the Use of Resources Report template
• fill in the period 2 direct personnel costs per activity and provide the justification as per the example below
• fill in any subcontracting costs incurred in period 2 e.g. cost of the Certificate on the Financial statement
• fill in the direct costs of any major cost items e.g. travel costs, equipment depreciation, etc. incurred in period 2 and provide the justification
• fill in the remaining direct costs and provide a justification
• verify that the total direct costs on this report agree with the total direct costs on the Form C!!!
• send to

Example:

TABLE 3.1 PERSONNEL, SUBCONTRACTING AND OTHER MAJOR DIRECT COST ITEMS FOR BENEFIACIARY 1-CERN FOR THE PERIOD
Activity	Item description	Amount (EUR)	Explanations
NA1	Personnel costs	549,806	Salary costs of 7 people providing in total 57 PMs.
NA2	Personnel costs	196,521	Salary costs of 4 people providing in total 24 PMs.
NA4	Personnel costs	299,824	Salary costs of 3 people providing in total 30 PMs.
NA5	Personnel costs	65,178	Salary costs of 2 people working part time on the project providing in total 4 PMs.
SA1	Personnel costs	704,297	Salary costs of 7 people providing in total 75 PMs.
SA3	Personnel costs	433,729	Salary costs of 7 people providing in total 47 PMs.
JRA1	Personnel costs	183,815	Salary costs of 2 people (1 working part time on the project) providing in total 19 PMs.
NA1	Subcontracting	2,000	Cost of the Certificate on the Financial Statement.
NA1,2,4,5, SA1,3, JRA1	Major cost item ‘Travel costs’	247,361	Travel costs to the EGEE related events of the project members as well as the representatives from US, Asia, CIS, the business speakers, travel related to the coordination of the community effort and the travel of the EAC members. The major events were: EGEE’08 Istanbul, OGF23 Barcelona, OGF/EGEE User Forum Catania, WLCG & CHEP 2009 Conference Prague, several activity meetings and other international conferences and events.
NA1, SA3	Major cost item ‘Subsistence’	66,389	Subsistence paid to technical, doctoral students and a temporary staff participating in the project.
NA2	Major cost item ‘Dissemination costs’	29,155	Booths at various events, e.g. ICS’08 Dresden, SC’08 Austin, EGU’09, ICS’09 Hamburg, EGU’09 Vienna, OGF/User Forum Catania, printing of promotional materials, e.g. info sheets, EGEE leaflets, CP Booklet, posters, etc.
NA1,2,5, SA1,3	Remaining direct costs	15,730	Office supplies, PCs, postage, Zoomerang subscription.
TOTAL DIRECT COSTS		2,791,805