A Certificate on the Financial Statements (CFS) given by a certified auditor must be provided with the final financial report if the amount of the EU grant per beneficiary reaches or exceeds a certain amount. The CFS expenditures qualify as “other direct costs,” hence they must be budgeted during the proposal phase.

What is a Certificate On Financial Statements (CFS)?

The CFS is a factual report produced by an independent auditor or Public Officer Its objective is to allow the European Commission or a grant giving body to determine whether costs declared in the financial statements are eligible.

However, it is important to highlight that the EC has the final decision on the eligibility of the costs, regardless of the CFS.

The CFS should be based on the model in Annex 5 to the Grant Agreement and consist of:

  • the terms of reference, signed by the beneficiary/linked third party and the auditor/Public Officer.
  • the auditor’s independent report of factual findings. This report must be issued on the auditor’s or Public Officer’s letterhead, dated, stamped and signed by the auditor/Public Officer.

This article has been prepared by Paula Morán, Innovarum´s Financial Project Manager

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