2.2 Amendments to the Budget of the Service Contract  3  Procedures to verify Fees and Expenditure  3.1 Eligibility of Fees  3.1.1  Verification of time charged to the Service Contract  3.1.1.1 Timesheets for the Contractor's Personnel  The Auditor verifies that:  3.1.1.2  The Contractor's personnel is employed or contracted by the Contractor and  approved by the Contracting Authority  The Auditor verifies that:  (1) Time (number of days / hours worked) charged to the Service Contract for the Contractor's  personnel (i.e. team leaders, senior and junior experts) corresponds to timesheets maintained by  the Contractor in accordance with the criteria for records of (Article 24 of the General Conditions).  (2) Timesheets were approved by the Project Manager or any person authorised by the Contracting  Authority or by the Contracting Authority itself on a monthly basis (Article 24.2 of the General  Conditions).  (3) Timesheets cover time periods that fall within the implementation period of the Service Contract  (Article 5 of the Special Conditions)  (4) Time (number of days / hours worked) charged to the Service Contract for the Contractor's  personnel has not already been charged in a previous Financial Report and invoice submitted by  the Contractor for payment by the Contracting Authority. (5) Time charged to the Service Contract relates to the Contractor's personnel mentioned in the  Budget for the Service Contract. The Auditor reviews variances between estimated time for the  Contractor's personnel in the budget and actual time charged and obtains explanations from the  Contractor for substantial variances. In cases of substantial overruns the Auditor verifies that such  overruns have been properly authorised (Article 20 of the General Conditions).  (6) The total number of days / hours on timesheets has been correctly calculated. For this purpose  the Auditor may use a sample (e.g. recalculating (sub) totals for a number of the Contractor's  personnel and for a number of months.  (1) The Contractor's personnel (i.e. team leaders, senior and junior experts) for who time has been  charged to the Service Contract was actually employed by the Contractor in the period covered by  the timesheets. For this purpose the Auditor examines supporting evidence such as employment  contracts. For personnel contracted by the Contractor (e.g. independent experts and free-lancers)  the Auditor examines supporting evidence such as contracts. The Auditor also verifies that there is  agreement by the Contracting Authority that contracted personnel (i.e. key experts and non-key  experts) can work for the Service Contract. For this purpose the Auditor verifies that key experts  are listed in Annex IV of the Service Contract (see point (3) below) and that appropriate evidence  (i.e. administrative orders) exists for non-key experts (see point (4) below). The Auditor can  examine supporting evidence on a sample basis (e.g. for a number of months).  Page 6 of 16  Where this is the case the Auditor verifies that the conditions of Articles 20.1 and 20.2 of the General  Conditions of the Service Contract were respected and that an addendum to the Service Contract  (Article 20.1) or an Administrative Order (Article 20.2) exists.  The Auditor verifies whether there have been amendments to the budget of the Service Contract.  The Auditor verifies the eligibility of the fees with the terms and conditions of the Service Contract set  out below. 