Certification concept is new in FP7. · Certification will be provided on the basis of "Agreed Upon Procedure" (AUP) · AUP, the auditor provides information according to a specific format specified via agreed terms of reference (ToR) · ToR is annexed to the Grant Agreement (Annex VII) · AUP is derived from common practice in audits and corresponds to international audit standards · 2 types of AUP: Report of factual findings on - expenditure verification - system verification Certification on Financial Statements (CFS) = AUP for expenditure verification · Mandatory when requested funding reaches 375,000 Euros (except for project of two years or less: the CFS is submitted at the end) · Mandatory for every beneficiary, except if certification on the methodology is provided Certification on the methodology = AUP for system verification aims at certifying the methodology of calculating (average) personnel costs and overhead rates · Valid throughout FP7, on a voluntary basis, must be accepted by EC · Particularly aimed at legal entities with multiple participations. Waives the obligation of certificates for interim payments · Simplifies certificate for final payment Advantages for system verification · The EC will receive consistent certifications and cost claims cleaned from errors · Beneficiaries will gain legal security · Beneficiaries in many projects will have to submit less certificates · EC and beneficiaries will have less processes to handle: less certificates · EC gains significantly in terms of assurance on legality and regularity
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