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European Commission audit requirements

Find out more about European Commission (EC) audit requirements and what you need to do to prepare.

When the EC auditors visit UCL the audits are generally of a financial nature. They will concentrate on:

  • Checking the costs that have been claimed during the execution of a contract
  • Project accounting methodology
  • Calculation of labour and overhead rates
  • Underlying rates and underlying vouchers (invoices, bank statements, salary payments, timesheets, contracts of employment etc.).

EC Audit checklist


A checklist of documents that need to be available and the responsible UCL department for their production during the audit is shown below.

General information about the Contractor

Award Services is responsible for providing:

  • Contractors legal registration
  • Financial statements for the last two years and audit report of the contractor's statutory auditors (required electronically prior to audit)
  • Organisation Chart
  • Contractor guidelines for the financial/scientific management of projects
  • List of other EC funding received and all contracts (both closed and in progress) signed with the Commission (required electronically prior to audit)

Departments are responsible for providing:

  • Ensuring that there is a collaboration agreement in place with partners.

Receipt and distribution of Commission financial contributions

Award Services is responsible for providing:

  • Bank statements showing amount and date of advance and/or interim and final payments received (from Commission or administrative coordinator
  • Bank statements showing the interests yielded by the EC Funds
  • Only for administrative/financial coordinator - contractors bank statement showing amount and date of advance and/or interim and final payments forwarded to other members of the consortium.

Project management information

Award Services is responsible for providing:

  • Report on the distribution of the EC financial
  • Contract amendments (with the date of request to the Commission)

Departments are responsible for providing:

  • Periodic activity and management reports
  • Periodic/mid-term review
  • Other non-financial deliverables as specified in Annex I of the contract (with the date of submission to the Commission and of the Commission approval).

General financial information

Award Services is responsible for providing:

  • A detailed breakdown of costs supporting the Financial Statement (Form C) submitted to the Commission, specifying the type of activity to which they relate and where applicable the resources provided by a third party (required electronically prior to audit).

Departments are responsible for providing:

  • Back-up documentation for any costs journalled into the project from other accounts (research projects, discretionary, department).

Supporting documents for personnel costs

Award Services is responsible for providing:

  • Payroll/salary slips for all project personnel (whole period of project duration)
  • Calculation of related charges (social charges such as pension, sickness, unemployment, maternity etc.)
  • Bank statements showing amount and date of bank transfer/payment receipt.

Departments are responsible for providing:

  • A list of all personnel in the project indicating period(s) they worked as well as positive classification/category (temporary/permanent)/(grade) - required electronically prior to the audit
  • Employment contracts and SIP documents for all project personnel
  • Certified timesheets for all personnel on the project.

Supporting documents for durable equipment

Award Services is responsible for providing:

  • Contractor guidelines for procurement of durable equipment (required electronically prior to audit)
  • Original invoices for the purchase of equipment
  • Bank statements showing amount and date of payment
  • Calculation of depreciation rates, leasing or rental charge.

Departments are responsible for providing:

  • Voucher/expense account of accounting entries
  • Inventory register or fixed asset register/ledger for the equipment
  • Equipment usage diary/register.

Please note: the existence and use of equipment for the project may be checked during the audit.

Supporting documents for subcontracting

Award Services is responsible for providing:

  • Contractor internal guidelines for procurement of services (required electronically prior to audit)
  • Signed original copies of subcontracts (including technical annexes) negotiated by Award Services
  • Request and Commission approval for subcontracting
  • Original invoices for external assistance
  • Bank statements showing the amount and date of payment (Award Services).

Supporting documents for travel

Award Services is responsible for providing:

  • Contractor internal guidelines for reimbursement of travel expenses (required electronically prior to audit)
  • Original invoices for travel and accommodation expenses - but see note 4a above
  • Bank statements showing the amount and date of payment.

Departments are responsible for providing:

  • List and date of trips by project personnel (required electronically prior to audit)
  • Authorised travel request forms
  • Commission approval for any destination outside the territory of the Member States, the Associated states or a third country where a contractor is established, unless such a destination is provided for in Annex I
  • Voucher/expense account of accounting entries.

Supporting documents for consumables

Award Services is responsible for providing the following:

  • Contractor internal guidelines for reimbursement of Consumables (required electronically prior to audit)
  • Original invoices for Consumable expenses - but see note 4a above
  • Bank statements showing the amount and date of payment.

Departments are responsible for providing:

  • Purchase Order, tendering documents
  • Voucher/expense account of accounting entries
  • Inventory register/ledger.

Supporting documents for other direct costs

Award Services is responsible for providing the following:

  • External Auditor Certification original signed audit certificate
  • Letter of audit engagement/appointment sent to the external auditor
  • External auditor's letter of acceptance/engagement confirmation
  • External auditor's invoice.

Further information


For further guidance, visit our Financial audit of EC projects Frequently Asked Questions (FAQs) page.