European Funds Audit Team (EFAT)

An audit is to ensure that claimed expenditure is eligible for funding and that all applicable EC regulations and Welsh rules have been followed. 

The main objectives are:  

• ensure that management and financial control systems are in place;
• test the practical application and effectiveness of the systems;
• check that projects accord with descriptions given in grant applications;
• confirm compliance with conditions, and verify grant has been used, as specified in the projects approval letter;
• ensure that the expenditure charged against the project is: 
  • actual (i.e. expenditure claimed has actually been incurred and defrayed);
  • consistent (i.e. the project was delivered in line with the Operational Programme and that expenditure claimed was relevant to the project); and
  • eligible (i.e. incurred against eligible activity delivered during the period approved).

What to expect from an audit visit

The audit visit involves a detailed inspection of relevant documentation and, where applicable, a physical verification of the work undertaken.

Key staff from the project, including the project manager and finance manager, should be available to describe the project and its background, and explain any changes that may have occurred during the project’s lifecycle. The officers will then focus on relevant areas, including procurement, expenditure eligibility, publicity, outputs, cross-cutting themes, match funding, beneficiary records (ESF only), and contracts and contractual procedures.
 
Following the visit, EFAT will produce a report on the findings of the visit.