The Auditor verifies whether it is plausible that incidental expenditure was necessary for the implementation of the Service Contract and that it had to be incurred for the Service Contract activities by examining the nature of the expenditure with supporting documents. 

(6) Records (General Conditions Article 24.1) 

The Auditor verifies that incidental expenditure is recorded in Contractor’s accounts and substantiated by evidence (see section 1 of Annex 2B, Guidelines for Specific Procedures to be performed) and notably the supporting documents as specified in Article 24.1 and 24.2 of the General Conditions of the Service Contract. 

(7) Valuation 

The Auditor verifies that the monetary value of incidental expenditure agrees with underlying documents (e.g. invoices, salary statements) and that correct exchange rates are used where applicable. All incidental expenditure incurred should be declared and invoiced at actual cost. This is explicitly stipulated in Annex V (Budget) of a fee-based service contract). 

(8) Classification 

The Auditor examines the nature of the costs and verifies that these costs have been classified as incidental expenditure in the Financial Report. 

## 3.2.2 Verification of Incidental Expenditure - Specific Verification Procedures for Per Diems 

The Auditor verifies the eligibility of the total amounts of subsistence i.e. per diems declared in the Financial Report for the Contractor's personnel (i.e. team leaders, senior and junior experts) who have performed missions requiring at least 12 hours away from their normal place of posting with the terms and conditions of the Service Contract and the rules set out in Annex V (Budget) of the Service Contract. More specifically the Auditor verifies that the subsistence i.e. per diem amounts declared in the Financial Report and included in the Contractor's invoice: 

(1) Correspond to actual cost/per diems paid/reimbursed by the Contractor to personnel contracted or employed by the Contractor; 

(2) For each 24 hours period do not exceed the maximum amount which is contractually allowed i.e. the flat rates / per diem rates published at: http://ec.europa.eu/europeaid/funding/about-calls- tender/procedures-and-practical-guide-prag/diems_en 

(For each period of 12 hours mission, the expert is entitled to receive 50% of the flat rate amount); 

(3) Relate to missions which were required for and foreseen in the Service Contract; and 

(4) Relate to the total number of days actually performed for these missions. 

