Information on a chekclist for public procurement, including the checklist used by EC auditors can be found here: Public Procurement Checklist
The main features of the model FLC report and checklist are:
• It is based on an analysis of existing control reports and checklists and tries to eliminate unnecessary differences between programmes. It can be adapted to programme and/or national needs.
• The model FLC report and checklist contains:
1) A Control Report: to report on the control, the limitations, the recommendations to the beneficiary, etc.
2) A Checklist: to communicate exactly what controls were done and how.
3) A internal Risk Assessment (to identify potential risk and to decide whether or not sampling is an option)
4) A list of documents to be provided by the beneficiary.
• The model FLC report/checklist follows a typical work flow of FLC (first checks are first in the report). Checks are done along budget lines.
• The checklist outlines minimum controls per budget line that are obligatory. There is an option to add additional obligatory controls e.g., to address specific programme or national requirements. There is also an option to add additional controls to address specific (e.g., project-related) risks such as potential double financing for partners with more than one co-financed project.
• For each control criteria (e.g., ‘Salaries and employer’s contribution were paid‘) the model checklist contains an example of the relevant control procedure (e.g., ‘Inspected the bank account statement to verify that staff costs and social contributions were actually paid’). Example procedures are as specific as practically possible: They contain information on: what was controlled and for which purpose.
• The following types of control were avoided as much as possible: 1) ‘Denial Questions’ (does NOT include external expertise for which no payment proof is available’); 2) ‘All in One Questions’ (‘expenditures incurred in the eligible time period, are related to the project and have been paid’) and 3) ‘God Knows’ Questions (‘the project complied with all environmental rules’).
• The types of errors found and the total sum found eligible are outlined for each budget line in the model checklist. A summary is included in control report.
• The control report suggests peer review (i.e., another controller checks the work done by the primary controller) as a good way of ensuring high quality of controls.