Project Execution

• Second-level audit

  Second-Level-Audit can be performed up to 2 years after the final payment by the European Commission. Therefore, all accounting records, invoices, etc. of an EU project must be kept by the partners until at least 2 years after the final payment.

  Possible consequences from a negative assessment of an audit may include:

  • Adjustment of deliverables
  • Reclaiming of grants
  • Exclusion of grant recipients
  • Payment of fines

  Third-level audit

  In a third-level audit, the review is carried out by the European Court of Auditors, OLAF, etc.

  System and Process Audit (SPA)

  The aim of the system and process audit is to reduce the audit burden for the beneficiaries. Audits are conducted to determine if the facility's standard accounting practices are in compliance with the Model Grant Agreement and can be requested under the following conditions:

  • The institution has formalized documentation of the systems and processes used to calculate its costs and contributions,
  • The institution has participated in at least 150 projects under Horizon 2020 or Euratom, and
  • Participates in at least 3 ongoing Actions under Horizon Europe or Euratom.

  The application for the SPA is possible from the 1st audit of a Horizon Europe project. There is no pre-audit.

The Periodic Financial Report is the report on the status of the project (progress, achievement of objectives) and consists of the following parts:

• Individual financial statement for each partner,
• Explanation on the use of resources,
• a periodic summary financial statement, and an audit certificate if the audit threshold is reached.

Audit certificate if audit threshold (EUR 430,000) is reached.
The special feature of the financial statement is that these reports must be submitted online by a person authorised to do so in a special procedure. This person is the Financial Statement Authorised Signatory (FSIGN).
Only the person assigned to a project as FSIGN can submit a financial report with his or her electronic signature via his or her access in the Funding & Tender Opportunities Portal.

FSIGNS and LSIGNS have been defined for the OVGU. Within a project, an assignment must be made, which should be done in consultation with the EU Office.

• Note: only 85% cash flow in the course of the project.

  Payments are subdivided into three types:

  • Pre-financing,
    • for projects with two reporting periods, it is anticipated that 45% of the total grant will be paid out 30 days after signing of the contract
    • for projects with three reporting periods, it is anticipated that 33% of the total grant will be paid out 30 days after signing of the contract
    •  5% of the grant will be deducted from the total amount at the pre-financing stage and paid into the guarantee fund
  • Periodic payment
    • 1 or several
    • up to a maximum of 90% of the total grant amount
  • Final payment
    the remaining 10% of the total grant amount plus the repayment of the 5% from the guarantee fund