When is a CFS required?
A CFS is needed if the total declared expenditure in the project is equal to or exceeds:
- EUR 325,000 or more in Horizon 2020 (excluding overheads)
- EUR 430,000 or more in Horizon Europe (including overheads).
Other EU programmes may also require an audit, but with different thresholds – check what applies to your particular agreement.
In addition, the European Commission, the European Court of Auditors or the European Anti-Fraud Office (OLAF) may carry out audits and reviews – both during the project and up to several years after it has concluded.
Book in good time
Umeå University has an agreement with EY for audits of EU projects. Book the audit as soon as possible before the end of the project period, so that the CFS can be finalised in time. The European Commission’s deadline for the final report is normally 60 days after the end date of the project. If Umeå University is not the coordinator, the CFS may need to be submitted even earlier so that the coordinator has time to finalise the entire report. Make sure that your planning includes holidays and annual leave – both at the University and at EY.
The cost of the CFS is a permitted project expense and can be included in the final financial report.
Contact person at EY in Umeå
Sebastian Lindgren
Email: sebastian.lindgren@se.ey.com
Phone: +46 72-179 70 64
Prepare the documentation
When you book EY, they will send you an up-to-date checklist of the material you and your project team need to submit. It is wise to familiarise yourself with these requirements at the start of the project; this will make it easier to gather the right documentation continuously throughout the project.
Read through EY’s audit preparation list (In Swedish)
Certificate on the Financial Statement (CFS)
The CFS has two parts that must be merged into one file before being uploaded to the EU Funding & Tenders portal with the final report:
- Terms of Reference (ToR)
An agreement between the department and the audit firm, signed by both parties at the start of the audit. - Audit report
• Horizon 2020: Independent Report of Factual Findings on costs declared under Horizon 2020 Research and Innovation Framework Programme.
• Horizon Europe: Agreed-upon procedures report on the certificate on the financial statement.
The ToR also refers to the Letter of Representation (LoR) – a letter signed by the department. It states, among other things, that all necessary supporting documentation is submitted to EY and that the department is responsible for financial reporting. The LoR is not sent to the European Commission.
Before you submit
- Ask EY’s auditor to email a copy of the CFS before it is signed.
- Check that all the information in the CFS is correct – project title, address, time period, etc.
- Verify that each expense (excluding VAT) in the CFS matches the invoice.
- Make sure all parts are signed before submitting the CFS to the EU.
Unsure about anything?
Feel free to contact the Research Support and Collaboration Office via rso@umu.se.
