5873115 428625 0 0 -3810 9724390 TALLINNA TEHNIKAÜLIKOOL Ehitajate tee 5 19086 Tallinn Rg-kood 74000323 Tel 620 2002 E-post
[email protected] www.taltech.ee 0 0 TALLINNA TEHNIKAÜLIKOOL Ehitajate tee 5 19086 Tallinn Rg-kood 74000323 Tel 620 2002 E-post
[email protected] www.taltech.ee -3810 428625 0 0 Liina Tamm Audit Advisory OÜ 11 .06.2023 Letter of Representation Taking into consideration our responsibility , as mentioned in PROJECT CONTRACT No 4-8/20/8, Solutions to current and future problems on natural and constructed shorelines , eastern Baltic Sea SolidShore , funded by the Estonian Research Council ( the " Implementing Agency"), acting as Implementing Agency pursuant to the Agreement No. 1.4-6/19/2 with the Ministry of Education and Research and in connection with your engagement to perform agreed-upon procedures regarding the Financial Statement covering the period from 01.06.2020 until 31.03.2024 ( the ' Financial Statement '), we hereby confirm the following representations made to you during your engagement : We are responsible for the preparation of the Financial Statement in accordance with the project agreement and for their accuracy and completeness . We have made available to you all records , documents , statements as requested in the table of procedures as well as any significant information that we believe are relevant for the purpose of the agreed-upon-procedures you have performed . No event has occurred after 31.03.2024, which would have an impact upon the Financial Statement until the date of signing this representation letter . Nothing has come to our attention during the period under review , including management actions and/ or other matters of importance that might be considered to represent financial irregularities , fraud or an illegal act which would have an impact on the Financial Statement . With the following we confirm the total figure of Financial Statements Submitted by us : (As Annex 1 in the following page) We confirm , that the difference between the budget and the actual costs have been discussed with the funding authority . We confirm that the funding authority agrees and is aware of the fact that under overheads are mainly recorded personnel-related costs. Annex 1 Final actual costs Budget Dev iation Change Personnel costs 341 399 € 272 500 € 68 899 € 25% Travel costs 9 175 € 51 300 € -42 125 € -82% Subcontracting 0 € 15 000 € -15 000 € -100% Other costs 23 825 € 38 600 € -14 775 € -38% Total direct costs 374 400 € 377 400 € -3 000 € -1% Overhead 93 600 € 90 600 € 3 000 € 3% TOTAL COSTS 468 000 € 468 000 € 0 € 0% / signed digitally / Represented by: Tiit Lukk, Vice-Rector for Research Project coordinator : Tarmo Soomere
Audit report on project called: PROJECT CONTRACT No 4-8/20/8 PROJECT TITLE: Solutions to current and future problems on natural and constructed shorelines, eastern Baltic Sea SolidShore To Tallinn University of Technology ( national registration number 74000323 ) Purpo se of th is Agreed-Upon Procedur es Audit Report Our report is solely for the purpose of determining whether the financial reports submitted by Tallinn University of Technology under project EMP480 agree to the budget and the project guidelines and regulations regarding the financials of project promoter. Respo n s ibilitie s o f the Engagin g Part y an d the Responsi b le Party Tallinn University of Technology has acknowledged that the agreed-upon procedures are appropriate for the purpose of the engagement. Pra ctitioner's Responsibilities We have conducted th e agreed-upon procedures enga gem ent in ac cordance w ith the Int ern at ional Standard on Related Services ( ISRS ) 4400 ( Re vised ) , Agreed-Upon Procedures Engagements . An agreed upon procedures engagement involves our perf orming the proc edures that have been agreed with Tallinn University of Technology an d reporting the find in g s, wh ic h are the fac tual results o f the ag r eed -upon procedures performed . Th i s agreed - upon procedures eng agem ent is not an assurance eng ag ement. Acco rdingly , we do no t express an opinion or an as su r anc e c o nclusion . Professional Ethics and Quality Control We have complied with the ethical requirements in with the Code of Ethics for Professional Accountants (Estonia) (including Independence Standards). Our firm applies International Standard on Qual ity Management (ISQ M ) 1 , Quality Management for Firms that Perform Audits and Reviews of Financial Statements , or Other Assurance or Related Serv i ces Engagements , and accordingly , maintains a comprehensive system of qua l ity contro l includ ing documented pol i cies and procedures rega rding compliance with ethical requirements , professional standards and applicable l egal and reg ulatory requi rements. Procedures and Findings We have conducted audit procedures for the period of 01.06.2020 until 31.03.2024. We have conducted the procedures for the host institution (project promoter) Tallinn University of Technology . Our audit procedures were based on the guidance set worth in Financial Guidance on how to carry out financial management and reporting under the EEA and Norwegian Financial Mechanisms for 2014-2021. The procedures were designed to meet the requirements of the guidelines. The scope of the audit was determined based on the costs occurred and project guidelines. Audited costs of Tallinn University of Technology ( actual expenditure occured) . Final actual costs Budget Dev iation Change Personnel costs 341 399 € 272 500 € 68 899 € 25% Travel costs 9 175 € 51 300 € -42 125 € -82% Subcontracting 0 € 15 000 € -15 000 € -100% Other costs 23 825 € 38 600 € -14 775 € -38% Total direct costs 374 400 € 377 400 € -3 000 € -1% Overhead 93 600 € 90 600 € 3 000 € 3% TOTAL 468 000 € 468 000 € 0 € 0% Based on the audit procedures performed we could see deviation from the original budget regarding personnel costs as they were higher than initially planned. Due to the COVID-19 restrictions were less travel and no subcontracting carried out and therefore mainly these tasks were carried out by personnel. During the audit due to the fact that personnel costs were most material and changes in budget w ere more than 10%, most audit work risks and procedures were related to personnel costs . The deviation from the initial budget w as in accordance with the overall guidance as being maximum 10% of the overall project budget, in this case maximum deviation could have been 90 774,10 euros. During the audit process we reviewed the account system and overall management and control functions related to project accounting in Tallinn University of Technology . We were provided with all the necessary evidence required during the audit process and explanation s regarding carried out project and occurred expenditure . Conclusion Based on the audit procedures performed we can conclude the following that the actual expenditure incurred and presented are correct and transaction have been correctly recorded, supporting evidence exists and agree to local accounting standards requirements. /digital signature/ Liina Tamm, Auditor, license no 559 Audit Advisory OÜ, license no 96 Paadi tee 3, Viimsi, 74001 0 3 .06.2024