Auditing publicly funded projects
The external audit requirement is intended to assure the beneficiary and the paying authority that the project is being appropriately implemented.
In the process of auditing a publicly co-financed project, the auditor examines the available evidence in order to clearly and with sufficient certainty assess whether the project is being implemented in accordance with the agreement and the application for financing.
As a result, the auditor obtains a reasonable assurance that the expenses incurred are eligible and the implemented project is executed in accordance with the application and the agreement. Finally, the auditor issues an opinion to that effect in written form.
The audit of the use of public funds covers at least the following areas:
- Determining whether the beneficiary executes the project in accordance with the grant agreement and the applicable legal regulations
- Determining whether the beneficiary has a relevant financial and accounting audit trail
- Determining the regularity of the tender procedure (if applicable)
- Accounting for expenses incurred within the framework of the implemented project, cost eligibility evaluation, method of documenting cost eligibility, maintenance of separate accounting records
- Examination of the timeliness of obtaining funds for project implementation
- Examination of the beneficiary’s payment applications and their comparison with the beneficiary’s accounting documents in the project-specific section
- Examination of the reliability of the project implementation reports submitted by the beneficiary
- Verification of the project monitoring system (in terms of achieving the project objectives)
- Examination of the method of archiving the project documentation
- Ascertaining whether the beneficiary has implemented the recommendations following periodic checks and rectified irregularities, if any.
All the projects financed with public funds are audited in accordance with the Principles and Guidelines of the Operational Programme Managing Authorities and with the requirements laid down by the Public Finance Act. The projects co-financed from public funds are audited in accordance with the generally accepted international auditing standards, relevant Polish regulations, as well as the standards issued by the Control Standards Committee of the International Organisation of Supreme Audit Institutions, or the European Guidelines for the Application of INTOSAI Control Standards.