TERMS OF REFERENCE FOR AN EXPENDITURE VERIFICATION OF A SERVICE CONTRACT  (FEE-BASED) - EXTERNAL ACTIONS OF THE EUROPEAN UNION  How to complete these standard Terms of Reference: Please insert the information requested  between the <> brackets, as appropriate for each tender procedure. Square brackets [ ] and  parts shaded in grey indicate options to choose: they should be included when applicable. All  other text should only need to be amended in exceptional cases, depending on the  requirements of specific tender procedures. In the final version of each set of Terms of  Reference, please remember to delete this paragraph, any other text with yellow highlighting,  and to suppress all brackets.  The following are the terms of reference (‘ToR’) on which < name of the Contractor >  ‘the Contractor’  agrees to engage < name of the audit firm >  ‘the Auditor’ to perform an expenditure verification and to  report in connection with a European Union financed fee-based service contract for external actions  concerning < title and number of the service contract >  (the ‘Service Contract’). Where in these ToR the  ‘Contracting Authority’ is mentioned this refers to <th e European Investment Bank or name of another  contracting authority > which has signed the Service Contract with the Contractor and finances the  services. The Contracting Authority is not a party to this agreement.  ‘The  Contractor’  refers to the entity that is receiving the funds for the services and that has signed the  Service Contract with the Contracting Authority. 1.1 Responsibilities of the Parties to the Engagement  • The Contractor is responsible for providing a Financial Report for the services financed by the  Service Contract which complies with the terms and conditions of the Service Contract and for  ensuring that this Financial Report can be reconciled to the Contractor’s accounts and records in  respect of these services. The Contractor is responsible for providing sufficient and adequate  information, both financial and non-financial, in support of the Financial Report.  • The Contractor accepts that the ability of the Auditor to perform the procedures required by this  engagement effectively depends upon the Contractor providing full and free access to Contractor's  staff and its accounts and records.  • ‘ The Auditor’ is responsible for performing the agreed-upon procedures as specified in these  ToR, and for submitting a report of factual findings to the Contractor. ‘ Auditor’  refers to the audit  firm contracted for this engagement and in particular to the partner or other person in the audit firm  who is responsible for the engagement and for the report that is issued on behalf of the firm, and  who has the appropriate authority from a professional, legal or regulatory body.  • The Auditor and/or the firm is a member of a national accounting or auditing body or institution  which in turn is member of the International Federation of Accountants (IFAC).  • The Auditor and/or the firm is a member of a national accounting or auditing body or institution.  Although this organisation is not member of the IFAC, the Auditor commits him/herself to undertake  this engagement in accordance with the IFAC standards and ethics set out in these ToR.  • The Auditor and/or the firm is registered as a statutory auditor in the public register of a public  oversight body in an EU member state in accordance with the principles of public oversight set out  in Directive 2006/43/EC of the European Parliament and of the Council (this applies to auditors and  audit firms based in an EU member state) $^{1}$. • The Auditor and/or the firm is registered as a statutory auditor in the public register of a public  oversight body in a third country and this register is subject to principles of public oversight as set  out in the legislation of the country concerned (this applies to auditors and audit firms based in a  third country).  $^{1}$  Directive 2006/43 of the European Parliament and of the Council of 17 May 2006 on statutory audits of annual accounts and  consolidated accounts, amending Council Directives 78/660/EEC and 83/349/EEC and repealing Council Directive 84/253  EEC.  1.2 Subject of the Engagement  Page 1 of 16  By agreeing these ToR the Auditor confirms that he/she meets at least one of the following conditions : 