CINEA LIFE19 NGO SGA Version April 2021 EUROPEAN COMMISSION European Climate, Infrastructure and Environment Executive Agency (CINEA) GRANT AGREEMENT MODEL TERMS OF REFERENCE FOR THE CERTIFICATE ON THE FINANCIAL STATEMENTS LIFE NGOs operating grants TABLE OF CONTENTS TERMS OF REFERENCE FOR AN INDEPENDENT REPORT OF FACTUAL FINDINGS ON COSTS CLAIMED UNDER A GRANT AGREEMENT FINANCED BY THE EUROPEAN CLIMATE, INFRASTRUCTURE AND ENVIRONMENT EXECUTIVE AGENCY (CINEA) (OPTIONAL1) 2 INDEPENDENT REPORT OF FACTUAL FINDINGS ON COSTS CLAIMED UNDER A GRANT AGREEMENT FINANCED BY THE EUROPEAN CLIMATE, INFRASTRUCTURE AND ENVIRONMENT EXECUTIVE AGENCY (CINEA) (COMPULSORY)2 4 The Independent Report of Factual Findings should be provided by the Auditor 1 2 Example that can be used by the Beneficiary Model to be used by the auditor 1 CINEA LIFE19 NGO SGA Version April 2021 Terms of Reference for an Independent Report of Factual Findings on costs claimed under a Grant Agreement financed by the European Climate, Infrastructure and Environment Executive Agency (CINEA) hereinafter referred to as “the Agency” The following are the terms of reference ('ToR') on which <name of the Beneficiary> 'the Beneficiary' agrees to engage < name of the audit firm> 'the Auditor' to provide an independent report of factual findings on a Financial Statement(s)3 prepared by the Beneficiary and to report in connection with a European Union financed grant agreement, concerning < title and number of the grant agreement> (the 'Grant Agreement4'). Where in these ToR 'the Agency' is mentioned this refers to its quality as signatory of the Grant Agreement with the Beneficiary. The European Union is not a party to this engagement. 1.1 Responsibilities of the Parties to the Engagement 'The Beneficiary' refers to the legal entity that is receiving the grant and that has signed the Grant Agreement with the Agency. • The Beneficiary is responsible for preparing a Financial Statement for the Work Programme financed by the Grant Agreement in compliance with such agreements and providing it to the Auditor, and for ensuring that this Financial Statement can be properly reconciled to the Beneficiary's accounting and bookkeeping system and to the underlying accounts and records. Notwithstanding the procedures to be carried out, the Beneficiary remains at all times responsible and liable for the accuracy of the Financial Statement. • The Beneficiary is responsible for the factual statements which will enable the Auditor to carry out the procedures specified, and will provide the Auditor with a written representation letter supporting these statements, clearly dated and stating the period covered by the statements. • The Beneficiary accepts that the ability of the Auditor to perform the procedures required by this engagement effectively depends upon the Beneficiary providing full and free access to the Beneficiary's staff and its accounting and other relevant records. 'The Auditor' refers to the Auditor who is responsible for performing the agreed-upon procedures as specified in these ToR, and for submitting an independent report of factual findings to the Beneficiary. The Auditor must be independent from the Beneficiary. • The Auditor is qualified to carry out statutory audits of accounting documents in accordance with the Directive 2006/43/EC of the European Parliament and of the Council of 17 May 2006 on statutory audits of annual accounts and consolidated accounts, amending Council Directives 78/660/EEC and 83/349/EEC and repealing Council Directive 84/253/EEC or similar national regulations. • The procedures to be performed are specified by the Agency and the Auditor is not responsible for the suitability and appropriateness of these procedures. 3 Financial Statement in this context refers solely to Annex V by which the Beneficiary claims costs under the Grant Agreement. Grant agreement relates to specific grant agreement (SGA) concluded between CINEA and the beneficiary in the context of a Framework Partnership Agreement (FPA) 4 2 CINEA LIFE19 NGO SGA Version April 2021 1.2 Subject of the Engagement The subject of this engagement is the final Financial Statement in connection with the Grant Agreement for the period covering <dd Month yyyy to dd Month yyyy>. 1.3 Reason for the Engagement The Beneficiary is required to submit to the Agency a certificate on a Financial Statement in the form of an independent report of factual findings produced by an exter