In terms of audit, how will ECHO check that the partner has effectively incurred a cost?
During the field audit, the auditors will check whether the action is being (or has been) implemented correctly: they may ask to visit specific action locations (distribution points, shelter construction sites, etc.) to verify that supplies have been delivered or used during the eligibility period.
During the HQ audit, auditors will check all the supporting documents related to the action and the relevant dates (i.e., distribution lists, logbook, employment/service contracts, reports on end of works, post-distribution monitoring report, but also payment vouchers, bank statements for check/bank payments, tender files including bids not accepted, derogation forms signed at applicable level, etc. This example list includes the costs incurred from Implementing Partners, an MoU with payments made is not sufficient and Partners should ensure that ECHO audit has access to all underlying materials of their IPs ).
It is important to note also that the reports and monitoring visits by ECHO staff will also be an occasion to check the necessary of costs and whether they have been incurred.