TERMS OF REFERENCE FOR AN EXPEN'DITURE \TERIFICATION

A GRANT CONTRACT
EXTERNAL ACTIONS OF THE EUROPEAN IINION
The follo$,ing arc the terms of reference (.ToR,) on which
pubtic
Ulilily Compan) Rcgional
Sa.ilary Landlill "Duboko", Uzice.ihe Beneficiary,asrees to cngase vOOni SiEpieNS
Revizija i Raaunovodstvo DOO. Beograd'the Auditor,to peribrm an experdirure veriijcation
and to rcpor1 in conncction wilh a Europcan Union financed gran! contract tbr cxternal acrions
conceming "SCHOOLS WASTE LESS,, with No. 2012/106-112 (the
,Cranr
Conrract.). Where
in lhese ToR the 'Contracting Authoriq,, is mentioned this refers to the European Commission
rlhich has signed rhe Grant Contracr whh ihe Beneficiary and is providing the grant fundirg_ The
Contracling Axihority is not a party to rhis agreemcnt.
l. REspot{sB[,tTIEs
oF THE PARTIES To rIlE ENCIGEMENT
'The Bencficiary,refers
ro the organisarion thar is receiving ihe glanr fundirg and that has
signcd the Grant Contract wiih lhe Coniracting Aurhorit),.
. The Beneficiary is responsiblc for pro\idiDg a Flnancial Repo( for the action llnanced by the
Granr Conlracr
"hich
complies $irh the tenns and conditions otrhe Cmnl Conrract and for
ensudng rh3r this Financial Repori can bc reconcited io ihe Beneficiary,s accounti.g and
5ookk.epirg s!r:.m anl ro ihe underhing accounrs a.d records. The Beneficiary is
i.i:r:.iol3 ior Droriding srtllcj.nr and ad.quare inlonnalion. borh financial and non
iln3nciel. in suppoi oiihr Fin:rn.i3l ReFoft.
.
The Beneficiary accepts thai the abili+ offie Audiror to perform lh procedures requi.cd b).
this engagement effeclively depends upon the Beneficiar), and as the case mav be his
partners, providing full and free access to lhe eereficia.y', staff and its aceounitng ana
bookkeeping systenr and underlying accourrs and records.
.
The Auditor' is responsible for pefo.ming ihe agreed-upon procedurcs as specified in rtesc
ToR. and for submifiing a repor offacrual findings ro ihe BeneficiaD..
,Audilor,refers
to thc
audil fim conlracted lor rhis ergagement and in particular to lhe partner or othe. person in
the audit firm \\ho is resporsible for rhe engagernent a.d for ihe report that is issued on
b.half ol rhe lll- . aad who has thc appropriate authoriry from a professionat. Iegat or
regulatory bod).
By agreeing these ToR the Axdiror confirms lhar heAhe meers ar leasi one of rhe lblowirlg
.
The Auditor and/or the firm is a menber of a nattonal accounling or auditing body or
institution \\,hich in tum is member ofthe Iniemarional Federatlon ofAccountanrs (tFAC).
.
The Ardilor and/or the firm is a member of a nationat accounting or auditirg bod) or
lnslitution. Allhough this organisalior is not mcmber of rhe I|AC, rtre Audftor comnirs
hin hersell to undertake this engagement in accordance wilh the IFAC srandards and ethics
set oul in these ToR.
'Ihe
Auditor and/or ihe firm is registcred as a statLrtory auditor in lhe public register of a
public oversight body in an EU member state
jn
accordarce ,yith the principles ol public
Nor.mher 2010 (Updare tlrrcb 20lt)
IoR ExFndrurcVnificaiion Rlpon uTicc
oversighl se! oul in Directive 2006,,13iEC ofthe European Parliameni and ofthe Couircil (this
applies to auditors and audit firms based in an EU ember state').
. Thc Auditol and/or rhe iifln is regislered as a stalutory audiior in thc p blic register oI a
public oversight body in a third couniry and this regisier is subieci ro principles of pubLic
oversight as sel out ir thc lcgislalion oi lhe country concrned (this applies to audiiors and
audit finns based in a third country).
2. STIB.TECI oF TtrE ENGAGE]IENT
The subject ofthis engagement is final Firanclal Report in conncction $'ith the Grant Coniract
for the period covcring 0l February 2013 to 30 April, 2014 and the action entitled "SCHOOLS
\\rASl Fl T.ESS". thc 'Aclion'. Annex I to these ToR contains information aboxt the Granl
Co.lracl.
3. Rf,Asof," roR THE ENGAGIMINT
The Bcneilciar)- is required to submit to the Contracling Auihority an e\pcndiiure verificaliun
repor produced b) an erlcrnal audilor in sxpport oflhe palment requesred by the Beneliciarv
under Anicle I i of lhe General Condiljo.s ofthe Grant Contracl. Tlle Authorisirg Olficer ofthe
Coinisijon reqLrires rhii repori as he rnakes lhe
lalmenr
of expenditLrre requested by the
B.n3ii.ian .ondiiional on rhe facrual llndings ofthis repon.
l. E\crcE\lE\ r T\ PE \\D OBJECTIVE
This e\pcnditure \erificarion is an engagemenl ro perlonn cerlain agreed'upon procedures \'lth
regard to rhe Financial Repod for the Granl Conracl. The objective of this expendilure
verificalion is for the Audiior to catry out the specific procedures listed in Annex 2A to these
ToR and lo submit to the Beneficiaq a report of lactual findings lvith regard to the specific
verification procedures pcrfonned. Verificalion means thal the Audltor examines the faclual
inlbmlation in the Financial Rcport ol the Beneficiary and compares it \ith thc lenns and
condilions ol the Granl Conlract. As this engagemenl is not an assurance en-qagenlcni lhe
r\udiror does n01 pro\ide an audit opjnjo. and eapresses no assurancc. The Conl.acting
Aulhorii] assesses for ilselfrhe I'acftraL findings rcported b) the Auditor and draws its o\l'n
conclusions Lom these factual Undjngs.
5. STATD,\RDS AND ETHtcs
The Auditor shall undertake this engagement in accordance $ithl
-
ihe international Srandard on Relaled Services ('ISRS') 4400 Engagements 10 perform
Agrccd-upon Procedures regarding Financial Ifformation as pronlulgated bv the IFAC;
the IFAC Code ot [lhics for Professiona] Accountants (dcveloped and issued b] IfAC's
lnternalional Eihics Standards Boad for Accountants (IESBA), which establishes
fundamenlal etlical principles for Audirors \ith regard to irtegritv, objectivitv.
independence, professiorlal comperence and due care, confideitiality. proltssional beha\ iou.
L
Direcrire 2006/,13 olrhc European Parliiment d oflhe Council of 117 Nfq 2006 on statutor) audlts
ol annual accounts aid consolidatcd. amendmg Council Directives 73r660/DEC and 83/3'lr/EEC and
repcaling CoL]r1cil Direclive 8,1/25i ELC.
Norcnber 2010 (llpdatc \Iarrh 2011)
ToR ExDctrd ture v lfurrionRepod Uzrc!
and technical standards. Although ISRS
.1,100
provides 1la! indcpendence is not a rcquircment
for agreednpon procedures engagemcnts, the Contracting Axthorii,,- requlres rhat the Auditor
is independent from the Bcneficiary and complies $ith thc indepcndcncc rcquircmc.!s olthc
IFAC Code oJ'Ethics for Professional Accounrants.
6. PRocEDURxs, EyIDINCE A:,,tD DocutrENTATIoN
'lhe
Auditor plans the work so that an cltactive expenditure verification can be performed. The
Auditor perfonns thc procedures lisled in Annex 2A of these ToR ('Lisljng of spccific
procedures to be performed') and applies the guidelines in Annex 28 (Guidelines for specific
procedures ro be perfomcd). The evidence to be used for perlbnning the procedures ln Arnex
2A is all financial and noD-financial information lvhich makcs it possiblc 10 cxaminc lhe
expc.diture claimed by the Beneficialy in the Financial Report. The Auditor uses the evidence
obtained from these prcccdures as the basis for the repo{ of faclual flndings. The Audiror
documenls mallers which are imporlant in providing evidence to suppod the report of factual
tindings, and evidence that the
",ork
was canied oui ir1 accordancc with ISRS
,1400
a.d thcsc
ToR.
REPoRTING
The repoft on lhis expenditure verificalion should describe ihe purpose, ihe agreed-upon
procedures and ihe factual lirldnrgs oflhe eneagement in sufficient dcrail in order ro enable rhe
Bencliciary and the Contracting ,{uthorily 10 undersrand the nature and e\tent oflhe procedures
performed by the Audilor and the faclual findings reponed b) the Auditor.
The use ofthe Model Repoft for an Expenditure Verification ofan EU Granl Contract i. Annex
3 of these ToR is compulsory. This reporl should be provided b) lhe Auditor ro Public Uriljr)'
Conipany Regional Sanitary Landfill "Duboko", UZlce within 80 working days after the day of
sisnature ofthese ToR.
7.
8. OTTTER TERUs
For th Bnfici:rrv:
\o!enber ?010 (trDdate Illrch 2011)
ToR Ex|.rditure v{rtlconor Rcpo( Uzic!
Th3 1-e. Ior this engagcnren! shall EUR 3 000.00. This amount includes all addiiional expenses,
brr no! lhe VAT. Ifthe Beneficiary obtains the Audiror \yith tax exemption stalenient lhe tax will
nor be charged. The fee amount is payable in the local currency (RSD) by the InforEuro
e\change rale ruling in monlh lvhen pro-fonna irvoice is issued for obtalning the tax exempiion
Annex 1
Annex 2A
Annex 28
Annex 3
Infomation abou! the Crant Conlract
Listing ofspecific procedures lo be perfomed
Guidelines loi specific procedures lo be perlofined
Modei report for an expenditure verification ofan EU grant contract
For the Auditor:
Sig.ature
Ncdeljko Milosavljevia, Direcior
Datel
,
Managing Dlrector
4/:f
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