Well done! If you are reading this article, you have probably already passed the most challenging part of the Horizon Europe EC audit. A bunch of documents have been provided to the auditors and most likely you have spent a lot of time on additional clarifications and discussions with the audit team.

If you have now received the Draft Audit Report (DAR), it is time to see the audit results.

What is the DAR?

As the name indicates, it is a preliminary audit report which is still pending to be finalized. The key part of DAR contains the presentation of the audit findings (e.g. ineligible costs, weaknesses), observations per category (personnel, subcontracting, etc.) and preliminary financial impact. The objective of the document is to formally present audit findings, and the beneficiary may respond, justify, and challenge observations before they become final.

What should be done at the DAR stage

When the DAR is sent, the beneficiary is requested to check the content in detail. The revision is critical, as at this stage you can still submit your observations, especially if you do not agree with the auditor’s findings.

The formal response may include additional clarifications, legal and financial justifications, reference to missing documents etc. The DAR is your last negotiation window, making it extremely important especially if the audit findings indicate systemic errors and irregularities leading to grant reduction or recovery. Please remember that you need to act quickly, as you only have 30 days to submit your observations.

What comes next?

After reviewing your response, the auditors issue their final conclusions. This leads to the Final Audit Report and possible recovery orders or adjustments.

Are you worried about the observations found in the Draft Audit Report? We can help you to figure out the best response. Do not hesitate to contact us at: [email protected]