Audit report for audits of operations
Central Baltic Interreg VI-A 2021-2027 programme
CCI No. 2021TC16RFCB013
Identification of the audit
Project ID and acronym CB0100014 “BALTIC2HAND”
Audited organization Tallinn Business Incubators Foundation
1. Executive Summary
The result of the audit regarding the expenditure on the audit scope:
X No findings.
2. Introduction
Audit Authority responsible for the audits of operations within the Central Baltic Programme 2021-2027
(hereafter Programme) or member of the Group of Auditors responsible for the audits of operations on its
territory within the Programme has performed the audit in compliance with Article 77(1) of Regulation
(EU) No. 2021/1060 (hereafter CPR) and Article 48(2) of Regulation (EU) No. 2021/1059 (hereafter Interreg
regulation).
The beneficiary (identified in the cover page) has been selected for audit by the European Commission in
the framework of the common Interreg sample for the accounting year 1.7.2023-30.6.2024 according to
Article 49 of the Interreg regulation.
The audit was carried out in compliance with internationally accepted audit standards and in accordance
with the audit strategy for the Programme. The audit was conducted based on documents available in the
monitoring system used by the audited Programme, as well as data requested from the audited benefi-
ciary, as necessary.
3. Scope and objectives of the audit work done
The scope of the work corresponded to the expenditure declared to the Commission in the accounting year
1.7.2023-30.6.2024 in respect of the audited beneficiary within the operation. The general objective of the
audit mission was to verify based on supporting documents the legality and regularity of expenditure de-
clared to the EC and existence of the audit trail.
The audit covered the verification of the following specific aspects:
• eligibility of the operation, the beneficiary and contracting in respect of the audited beneficiary,
including compliance with horizontal principles and State aid rules.
• reality of the project and regular implementation in accordance with the approval decision and
fulfilment of conditions applicable at the time of the audit concerning its functionality, use, and
objectives to be attained, in line with the principle of sound financial management.
• compliance of the audited partner with transparency, communication and visibility requirements.
• eligibility of the audited expenditure both for grants taking the form set out in point (a) of Arti-
cle 53(1) of CPR, including respect of public procurement rules, and for grants taking the forms set
out in points (b), (c) and (d) of Article 53(1) of CPR.
• reliability of data in relation to output and result indicators.
• audited expenditure’s compliance with applicable EU, programme and national rules.
• existence of a separate accounting record or code for project expenditures, and an adequate audit
trail that is consistent with the available supporting documentation.
• correspondence of the expenditure declared to the Commission with the accounting records in the
managing authority's electronic system.
• absence of double funding of expenditure.
• absence of fraud and conflict of interest.
• if relevant, examination of whether errors, deficiencies and irregularities revealed by the audit are
of systemic nature.
4. General information related to the audit
Identification of the project
Full project name As good as new: Enhancing the behavioral and business change of
the second-hand textile industry in the Central Baltic region
Project number and acronym CB0100014 – BALTIC2HAND
Priority 2 - Improved environment and resource use
Call no. Call 1 regular projects
Dates of signing the subsidy con- 28.03.2023
tract (first version)
Implementation period of the pro- 01.04.2023 - 31.03.2026
ject according to subsidy contract
(or its latest amendment)
Identification of the auditee
Organization Tallinn Business Incubators Foundation
Legal status Foundation
Contact person Name: Margaret Aidla
Task on the project: Marketing manager
Email:
[email protected]
Phone: +37259052098
Role of the beneficiary in the pro- Lead partner
ject Project partner
Date when auditee signed the 26.08.2023
Partnership agreement
Identification of the SLA auditors
Organization carrying out the audit The Financial Control Department of The Ministry of Finance of Es-
tonia
Information of the auditor Name: Henry Kibin
Title: Advisor
Confirmation of the impartiality I have no conflict of interest in relation to the auditee: Yes
(Yes/No)
Information of the audit supervisor Name: Mart Pechter
Title: Head of the II Audit Unit
Confirmation of the impartiality I have no conflict of interest in relation to the auditee: Yes
(Yes/No)
Audit scope
Audited reporting periods 01.04.2023 - 30.09.2023
(No. and dd.mm.yyyy-dd.mm.yyyy)
Approved expenditure by the Man- 8 545,30 €
aging Authority
Audited expenditure 8 545,30 €
Audit coverage ratio 100 %
If less than 100% is audited, please N/A
describe the sampling method
Information on the audit process
Audit was launched on 19.11.2024
Type of the audit Only desk-based check
Includes on-the-spot check
Date(s) and place of on-the-spot Due to the principles of risk-based control, the nature of the pro-
check ject, the amount of simplified costs and the work already per-
Date of online meeting formed by the national control, it was not necessary to conduct an
on-the-spot check or online meeting.
Contradictory procedure As no observations were made, the contradictory procedure is not
relevant.
Date of the final version 10.12.2024
5. Summary of the audit scope, audited costs and ineligible amount
Audit scope
Cost cate- (approved costs by the Managing Authority) Total Total ineligi-
gory Fast track Total ap- amount of ble amount
lump sum proved audited detected in
Partner report No. 1
(Preparation costs by the costs the audit*
cost) MA
Staff costs
6090,00 6090,00 6090,00 0,00
Office and
administra- 913,50 913,50 913,50 0,00
tion
Travel and
accommoda- 913,50 913,50 913,50 0,00
tion
External ex-
pertise and 0,00 0,00 0,00 0,00
services
Equipment
48,30 48,30 48,30 0,00
Preparation
cost (lump 580,00 0,00 580,00 580,00 0,00
sum)
Total
580,00 7 965,3 8 545,30 8 545,30 0,00
* Note that if ineligible expenditure is detected in the cost category staff costs, it causes 15 % flat rate
correction also in the cost categories office and administration and travel and accommodation. If the rea-
son for ineligibility in staff costs is the incorrect amount of project working hours, also costs of project
management equipment need to be corrected in the cost category equipment (amount of ineligible work-
ing hours x 0,23 €).
Auditor: Henry Kibin
Date: 10.12.2024 ____________________
Signed digitally
Audit supervisor: Mart Pechter
Date: 10.12.2024 ____________________
Signed digitally
Pr Anu Lõhmus
Sihtasutus Tallinna Ettevõtlusinkubaatorid
[email protected] Meie 11.12.2024 nr 10-5/5573-1
Auditi lõpparuande edastamine
Austatud proua Lõhmus
Edastame Teile projekti nr CB0100014 „BALTIC2HAND” auditi lõpparuande nr CB-1/2024.
Auditi eesmärgiks oli anda hinnang toetuse kasutamisele Vabariigi Valitsuse 12. mai 2022. a
määruse nr 53 „Perioodi 2021–2027 Euroopa Liidu ühtekuuluvuspoliitika fondide vahendite
kasutamise auditeerimine“ § 3 lõike 1 järgi.
Täname Teid koostöö ja osutatud abi eest.
Lugupidamisega
(allkirjastatud digitaalselt)
Anu Alber
finantskontrolli osakonna juhataja
auditeeriva asutuse juht
Lisa:
Auditi lõpparuanne
Sama:
Pr Tiina Sams, Riigi Tugiteenuste Keskus (
[email protected]).
Teadmiseks:
Hr Urmo Merila, Riigi Tugiteenuste Keskus (
[email protected]);
Pr Mairi Uusen, Riigi Tugiteenuste Keskus (
[email protected]).
Henry Kibin 5885 1356
[email protected]
Suur-Ameerika 1 / 10122 Tallinn / 611 3558 /
[email protected] / www.rahandusministeerium.ee
registrikood 70000272