EU Projects, Grants and Donor Fund Audit

It is an engagement in which an independent auditor checks whether the costs reported to the donor were actually incurred, within the implementation period, in accordance with the budget and the eligibility rules of the grant agreement. The result is an audit report or expenditure verification certificate, in the form required by the specific programme.

Expenditure verification is an agreed-upon procedures engagement in which the auditor reports factual findings — whether individual costs are documented and eligible — without expressing an audit opinion. Many programmes require this form specifically for interim and final reports.

Most commonly these are costs incurred outside the implementation period, costs lacking adequate supporting documentation, salaries without timesheets, procurement carried out without the required procedure, VAT where it is not eligible, and costs that do not match the relevant budget line. Early review can generally correct these risks before reporting.

It is most useful at the start of the project, when the cost recording and documentation system is being set up, rather than a few weeks before the final report. Early involvement avoids the later reconstruction of documentation, which is the most common cause of delays and corrections.

Yes — mapping relevant calls for proposals, expert support in drafting project budgets, and financial and administrative monitoring during implementation. If an audit is also planned for the same project, independence rules are observed and roles are kept separate.