Certificate on the Financial Statements
The Certificate on the Financial Statements (CFS), which serves the confirmation of the accurate billing of all eligible costs, is part of the periodic reporting of an EU-project.
A Certificate on the Financial Statements is mandatory for every claim (interim or final) in the form of reimbursement of costs whenever the amount of the EC contribution is equal or superior to EUR 375,000 when cumulated with all previous payments for which a CFS has not been submitted. In projects with a duration of 2 years or less, partners that receive an EU contribution of EUR 375,000 or higher only have to submit a CFS at the end of the project along with the other reports.
If a project partner has a certificate on the Methodology a CFS is only mandatory at the end of the project. In projects where all funding consists of lump sums or flat rates no CFS is required.
In contrast to FP6, a detailed description of the audit procedures to be carried out by the auditors is now provided in the "Guidance notes for audit certifications" (Annex II, Form D). This has been a consequence the European Commission has implemented because of the large difference in the quality standards of audits during FP6.
Public entities, universities and research institutions have two options for choosing their auditor:
- First, an external auditor (independent and qualified according to 2006/43/EC) can be deployed
- or second, a competent public officer, e.g. an internal auditor, who is not involved into the preparation of the Financial Statements and affirmed by a higher authority.