A:

The cost of providing audit certificates is a form of subcontract between the contractor and its external auditor (public bodies using competent public auditors within their own organisation are not subcontracting). However, because the external auditor normally will have been chosen by transparent means the provisions of the EC contract (Article II.6) will have been fulfilled.

The cost of certification may be charged as an eligible cost under the management of the consortium activity even if it may be subcontracted to an external body. VAT charged by the auditor is not an eligible cost.

An audit certificate for the subcontractor's costs is not needed. The contractor has to ensure that costs of the subcontractor are included with all its other costs. These will be covered by the contractor’s audit certificate. The audit certificate will only certify that the amount paid by the contractor to the subcontractor (i.e. the price) is correct and according to the invoice.