Annex 2A Listing of the specific procedures to be performed 

This Annex is a standard listing of specific procedures to be performed and it shall not be modified 

## 1 General Procedures 

## 1.1 Terms and Conditions of the Service Contract 

The Auditor obtains an understanding of the terms and conditions of the Service Contract by reviewing the Service Contract and its annexes and other relevant information, and by inquiry of the Contractor. The Auditor obtains a copy of the original Service Contract (signed by the Contractor and the Contracting Authority) with its annexes. The Auditor obtains and reviews the Report (which includes a narrative and a financial section) as per Article 26.1 of the General Conditions. 

## 1.2 Financial Report and Invoice for the Service Contract 

The Auditor verifies that the Contractor’s invoice and Financial Report comply with the following conditions of Article 26 of the General Conditions of the Service Contract: 

- The format of the Financial Report should be as notified to the Contractor by the Project Manager during the period of implementation of the tasks (article. 26.1) 

- All invoices for a fee-based contract must be accompanied by an up to date Financial Report. The structure of the interim or final Financial Report should be the same as that of the contractually approved budget (Annex V). The Financial Report should indicate, at a minimum, the expenditure of the reporting period, the cumulative expenditure and the balance available. 

## 1.3 Rules for Accounting and Record keeping 

The Auditor examines – when performing the procedures listed in Annex 2A - whether the Contractor has complied with the following rules for accounts and record keeping of Article 24 of the General Conditions of the Service Contract: 

- The Contractor must keep full accurate and systematic records and accounts in accordance with the specific conditions of Article 24.1; 

- The Contractor must keep timesheets in accordance with the specific conditions of Article 24.2. 

## 1.4 Reconciling the Financial Report to the Contractor's Accounts and Records 

The Auditor reconciles the information in the invoice and the Financial Report to the Contractor’s accounts and records in respect of the services. 

## 1.5 Exchange Rates 

The Auditor verifies that amounts of fees and other expenditure incurred in a currency other than the Euro have been converted in accordance with the specific conditions of Article 29.5 of the General Conditions the Service Contract. 

## 2 Procedures to verify conformity of Fees and Expenditure with the Budget and Analytical Review 

## 2.1 Budget of the Service Contract 

The Auditor carries out an analytical review of the expenditure headings in the Financial Report and verifies that the budget in the Financial Report corresponds with the budget of the Service Contract (authenticity and authorisation of the initial budget) and that the fees and expenditure incurred were indicated in the budget of the Service Contract. 

