Navigating the financial rules of Horizon Europe can be challenging, especially when it comes to compliance. One of the most important requirements for beneficiaries is the Certificate on the Financial Statements (CFS). This certificate is more than paperwork—it is an official audit tool that verifies accuracy, transparency, and eligibility of reported costs.
For many organizations, a CFS audit is the first step in proving that funds have been used responsibly. By understanding the rules around the Horizon Europe CFS, including thresholds and procedures, beneficiaries can avoid financial risks, safeguard their funding, and strengthen their project’s credibility.
What is a Certificate on the Financial Statements?
A certificate of financial statement, often referred to as the CFS certificate, is an independent verification carried out by a qualified external auditor. It confirms that the financial statements submitted under Horizon Europe accurately reflect the project’s expenses and comply with EU grant rules. Find everything you need to know about Horizon Europe CFS audit.
The Horizon Europe certificate on financial statements ensures accountability between beneficiaries and the European Commission. It is recognized as the first level of audit, while additional checks may follow at Commission level or through subcontracted auditors.
When is a CFS Required?
According to Grant Agreement, Data Sheet, Point 4.3 the CFS threshold Horizon Europe is set at EUR 430,000. This means that a beneficiary (or linked third party) must submit a certificate if the EC contribution meets or exceeds this amount.
The CFS is included in the Final Report, which must be submitted within 60 days after the last reporting period. The report covers:
- The final technical overview of project progress;
- Financial statements and explanation of resources used;
- The Certificate on the Financial Statements, if applicable.
By preparing ahead, beneficiaries can avoid last-minute errors and ensure compliance.
Are CFS Audit Costs Eligible?
Yes. The European Commission considers the costs of a CFS audit eligible. They are covered under the category C.3 “Other goods, works, or services.” This means beneficiaries can include these costs in their budgets and do not need to cover them from their own resources.
Who Can Issue a CFS Certificate?
Any independent auditor within the EU who is qualified under Directive 2006/43/EC can issue a certificate of financial statement. In Romania, for instance, auditors must be registered with ASPAAS. Vistiveri’s audit partner ACCOUNTESS holds license AF4881, and is accredited to provide these services.
Choosing an experienced auditor is critical—not only for compliance but also for identifying errors early and avoiding complications in second-level audits.
The Process of a Horizon Europe CFS Audit
The audit process follows a clear structure:
- Terms of Reference (ToR): Signed between the auditor and the beneficiary, based on the EC template;
- Examination of costs: Personnel, subcontracting, travel, and other declared expenses;
- Error identification: Any irregularities are flagged in the CFS certificate;
- Commission review: The European Commission decides on the financial implications of errors.
This process increases transparency and builds trust between beneficiaries and the funding authority.
Why the Horizon Europe CFS Matters for Beneficiaries?
From our consulting experience, many organizations underestimate the complexity of Horizon Europe financial reporting. Errors are common in:
- Personnel cost calculations;
- Eligibility checks for subcontracting or travel costs;
- Supporting documentation for expenses; and so on.
The Horizon Europe CFS it’s a good exercise to help preventing these issues from escalating. A properly issued certificate ensures costs are eligible, strengthens compliance, and gives beneficiaries peace of mind that they are implementing their project in a good manner.
At Vistiveri, we CFS audit but we also do mock audits in case you are not eligible for CFS audit but you want to ensure that you administrate your cost as required. Our team:
- Highlights deficiencies in financial reporting processes;
- Provides consulting on budgeting and eligibility;
- Prepares beneficiaries for potential second-level audits;
- Ensures compliance while optimizing resource use.
Frequently Asked Questions
1. What is a CFS certificate?
It is an official audit document verifying the accuracy of Horizon Europe financial statements.
2. When is the CFS mandatory?
When a beneficiary receives more than EUR 430,000 EC contribution in case of Horizon Europe. The threshold differ from programme to programme. Check DATASHEET, Point 4.3.
3. Are CFS costs eligible?
Yes. CFS audit costs are reimbursable under category C.3 Other goods, works and services of the budget.
4. Who can issue a certificate of financial statement?
Any independent external auditor in the EU, authorized under Directive 2006/43/EC.
5. Why should I work with consultants for a Horizon Europe CFS audit?
Consultants reduce the risk of errors, guide beneficiaries through complex rules, protect reputation and provide support during audits.
Next Steps
Preparing for a Horizon Europe certificate on financial statements requires foresight, experience, and compliance discipline. Working with qualified auditors and consultants ensures your reporting is correct, your risks are minimized, and your funding is protected.
Contact us at silviabuturca@vistiveri.com to discuss how we can assist with your Horizon Europe CFS audit and broader financial reporting needs.
Our work is driven by purpose, and our clients’ success is at the heart of everything we do.
