TERMS OF REFERENCE

TERMS OF REFERENCE FOR A FINANCIAL AND ACCOUNTING GAP AUDIT AGAINST THE EUROPEAN UNION (EU) NINE - PILLAR ASSESSMENT MODEL FOR CROSQ AS REQUESTING TO BE ENTRUSTED WITH IMPLEMENTATION OF AN EU BUDGETED PROJECT

1. INTRODUCTON

Context

Article 154 of the Financial Regulation (‘FR’) applicable to the general budget of the European Union (‘EU’) sets out the methods of implementing the budget, including ‘indirect management’. Under indirect management, the Commission can entrust the implementation of Union funds or budgetary guarantees to the countries, organisations and bodies (further referred to as ‘entities’) indicated in Article 62 of the FR. CROSQ is considered one of these entities

When such entities manage EU funds, they are however, required to guarantee a level of protection of the EU’s financial interests equivalent to that required under the FR. More specifically, they must meet requirements with regard to Nine ‘Pillars’. These pillars relate to:

· the internal control system ;

· the accounting system;

· an independent external audit;

as well as rules and procedures for:

· providing financing from EU funds through grants;

· procurement;

· financial instruments;

and also:

· exclusion from access to funding;

· publication of information on recipients;

· protection of personal data.

Entities such as CROSQ wishing to work with EU funds under the indirect management mode must, therefore, undergo a comprehensive Nine Pillar assessment.

In preparation for an eventual Nine Pillar Assessment, the CROSQ Secretariat will first conduct a Gap Audit against the EU’s Nine Pillar Assessment model.

Based on the results, findings, and recommendations arising from this Gap Assessment, the CROSQ Secretariat will use the Gap Audit Report to commence implementing the recommendations to close the identified gaps. Thereafter, CROSQ will apply to the EU for their auditors to perform a formal Nine-Pillar Assessment Audit.