Template for the annual audit report on financial instruments as referred to in Article 7(7)
ANNEX IVSupplementary provisions
ANNEX IV Template for the annual audit report on financial instruments as referred to in Article 7(7) 1. Introduction 1.1. Identification of the external audit firm that has been involved in preparing the report. 1.2. Reference period (16 October N-1 to 15 October N). 1.3. Identification of the financial instrument(s)/mandate(s) and CAP Strategic Plan(s) covered by the audit report. Identification of the funding agreement to which the report relates to (the ‘Funding agreement’). 2. Audit of internal control systems applied by the EIB/EIF or other international financial institutions Results of the external audit of the internal control system of the EIB or other international financial institutions (IFIs), in which a Member State is a shareholder, assessing the set-up and effectiveness of this internal control system and covering the following elements: 2.1. Mandate acceptance process. 2.2. Process for the appraisal and selection of financial intermediaries: formal and quality assessment. 2.3. Process for the approval of transactions with financial intermediaries and signature of relevant funding agreements. 2.4. Processes for the monitoring of financial intermediaries relating to: 2.4.1. reporting by financial intermediaries; 2.4.2. maintenance of records; 2.4.3. disbursements to final recipients; 2.4.4. eligibility of support to final recipients; 2.4.5. management fees and costs charged by the financial intermediaries; 2.4.6. visibility, transparency and communication requirements; 2.4.7. implementation of State aid and cumulation of aid requirements by the financial intermediaries; 2.4.8. differentiated treatment of investors, where relevant; 2.4.9. compliance with applicable Union law related to money laundering, terrorism financing, tax avoidance, tax fraud or tax evasion. 2.5. Systems for the processing of payments received from the paying agency. 2.6. Systems for the calculation and payment of amounts related to management costs and fees. 2.7. Systems for the processing of payments to financial intermediaries. 2.8. Systems for the processing of interest and other gains generated by support from the CAP Strategic Plan(s) to financial instruments. 2.9. For the annual audit report concerning the final accounting year information on the following elements shall be covered in addition to those of points 2.1 to 2.8: 2.9.1. Use of differentiated treatment of investors; 2.9.2. Achieved multiplier ratio compared to the agreed multiplier ratio in the guarantee agreements for financial instruments delivering guarantees; 2.9.3. Use of interest and other gains attributable to the support from the CAP Strategic Plan paid to financial instruments in line with Article 60 of Regulation (EU) 2021/1060; 2.9.4. Use of resources paid back to financial instruments, which are attributable to the support from the EAFRD, until the end of the eligibility period and arrangements put in place for the use of those resources after the end of the eligibility period in line with Article 62 of Regulation (EU) 2021/1060. For points 2.1, 2.2 and 2.3, following the submission of the first annual audit report, only information on updates or changes to the procedures or arrangements in place need to be provided. 3. Audit conclusions 3.1. Conclusion as to whether the external audit firm can provide reasonable assurance on the set-up and effectiveness of the internal control system put in place by the EIB or other IFIs, in which a Member State is a shareholder, in accordance with the applicable rules, as per the elements referred to in section 2. 3.2. Findings and recommendations resulting from the audit work carried out. Points 3.1 and 3.2 shall be based on the results of the audit work referred to in section 2 and where relevant, take account of the results of other national or Union audit work carried out in relation to the same body implementing financial instruments and/or to the same mandate for financial instruments.