EU Unveils New Audit Program to Enhance Oversight of Funded Projects
Brussels, Friday, 16 August 2024.
The European Commission’s Indicative Audit Programme aims to improve accountability in EU-funded projects from 2021 to 2027. This comprehensive guide outlines audit principles for various EU programs, focusing on cost eligibility and compliance standards.
Background and Purpose
The European Commission (EC) has launched the Indicative Audit Programme (IAP) to bolster the oversight of EU-funded initiatives, including Horizon Europe. This program, covering projects from 2021 to 2027, is designed to ensure that financial audits adhere to high standards of transparency and accountability. By standardizing audit procedures, the EC aims to prevent misuse of funds and enhance the overall efficacy of research and innovation efforts in the Netherlands and beyond.
Key Components of the IAP
The IAP serves as a guideline for conducting financial audits on EU grants. It is based on the EU’s Model Grant Agreement, applicable to all funding programs within the EU’s financial framework for 2021-2027. The guide details the context, objectives, and standard procedures necessary to ensure project expenditures comply with regulations. It also clarifies rules on cost eligibility and the standards applied during audits. Importantly, while the guide outlines general principles, the actual audits are conducted using tailored checklists and sampling methods specific to each program and audit.
Target Audience
Primarily, the IAP is intended for EU auditors responsible for auditing Horizon Europe projects across various organizations. However, it is also a valuable resource for EU services, grant recipients, and auditors charged with preparing the Certificate on the Financial Statements (CFS). The document includes details on on-site audit processes, audit procedures for specific cost categories, and the risk analysis conducted prior to an audit.
Comparison with Previous Programs
Compared to the previous EU framework program for research and innovation, Horizon 2020, the new IAP is more generalized. The previous program contained specific requirements for particular funding lines such as Marie Skłodowska-Curie Actions (MSCA) and the European Research Council (ERC). These specific details are not included in the new document, which applies to all EU-funded programs for 2021-2027. The new guidelines also offer less detail on specific issues auditors must investigate, focusing instead on broader principles.
Implications and Future Steps
The introduction of the IAP marks a significant step towards standardizing financial audits across various EU programs. By providing a clear framework, the EC aims to ensure that all projects adhere to the same high standards of financial management and accountability. This initiative is expected to enhance the credibility of EU-funded projects and ensure that taxpayer money is used effectively. Moving forward, stakeholders involved in EU-funded projects should familiarize themselves with the IAP to ensure compliance and optimize their project management practices.