Audit description connected to Agreement for the Purchase of Assigned Amount Units under a
Green Investment Scheme
Abbreviations

AAUPA – Agreement for the Purchase of Assigned Amount of Units under a Green
Investment Scheme

AAU – Assigned Amount Unit

COSO standards – Guidance on Monitoring Internal Control Systems issued by Committee of
Sponsoring Organisations of the Treadway Commission,

EIC – Estonian Environmental Investment Centre acting as Green Investment Scheme
Operator (GISO),

GHG emission reduction – the reduction or limitation of emissions of the Greenhouse Gases

Greening Framework – two specification of the Implementation for both – the District
Heating Projects and the Lighting Projects

ISAE 3000 – International Standards on Assurance Engagement “Assurance Engagement
Other than Audits or Reviews of Historical Information”.
Objectives of the Annual and Final Report audits:
1. To provide assurance to the Estonian government and the Buyer that the financial
statements submitted by EIC on the use of Proceeds from the Account provide a true and fair
view of the fund flows from this Account to the final beneficiaries, and that the statements
have been prepared in accordance with the relevant accounting standards, the AAUPA
between the Seller and the Buyer and other requirements, and are in accordance with the
applicable laws, rules and regulations that govern them;
2. To identify, assess and examine the risks to regularity, propriety and financial control by the
EIC and report on the weaknesses if any;
3. To ensure that the Greening Performance Reports have been prepared in accordance with
the AAUPA, the Greening Frameworks requirements and in accordance with the Report
Templates;
4. To ensure that the Annual and the Final Greening Performance Reports provide a true and
fair view of the activities implemented and the GHG emission reduction achieved for both –
the District Heating Projects and the Lighting Projects;
5. To ensure that the procedures set in the Greening Framework have been followed by the EIC;
6. To ensure that the GHG emission reduction for both – the District Heating Projects and the
Lighting Projects have been measured/estimated, verified and reported according to the
methodology defined in the Greening Frameworks.
Standards Applied:
Standards for Auditor:
Audits shall be conducted in accordance with the applicable Estonian and EU auditing standards:
 International Standards on Assurance Engagement (ISAE) “Assurance Engagement Other than
Audits or Reviews of Historical Information” (ISAE 3000),
 Agreement for the Purchase of Assigned Amount of Units under a Green Investment Scheme,
Standards for EIC:

Agreement for the Purchase of Assigned Amount of Units under a Green Investment Scheme,

Administrative agreement between EIC and the Ministry of the Environment

Administrative agreement between EIC and the Ministry of Economic Affairs and
Communication

Regulation No 42 of the Minister of the Environment of 30 august 2010 “Establishment of the
Terms and Procedure for Granting Assistance to More Extensive Use of Renewable Energy
Sources for Production of Energy and Improvement of District Heating Networks”
Audit procedures needed:

Overview about EIC internal control system (performed on base of COSO standards),

Overview of changes in internal control system of EIC,

Overview about procedures implemented regarding specific aid scheme,

Overview of changes in procedures implemented regarding specific aid scheme,

Testing of payments (control if the payments have been made according to the procedure),

Testing of measures of GHG emission reduction (control if the GHG emission reduction has
been verified according to the methodology set up),

Reporting.
Audit Reports:

Auditor’s opinion “Assurance Report”,

Management Letter
ASSURANCE REPORT
<Name of the Audit Firm> has been engaged to provide an assurance report on the Annual Report /
Final Report on compliance with the stipulations of Agreement for the Sale and Purchase of Assigned
Amount of Units under a Green Investment Scheme (hereafter AAUPA) published by the Estonian
Environmental Investment Centre for the fiscal year .....
Respective Responsibilities of Directors and Reporting Accountants
The Management board of the Environmental Investment Centre is responsible for preparing the
Annual Report / Final Report in accordance with terms of AAUPA.
Our responsibility is to assess whether the Annual Report / Final Report has , in all material respects,
been properly presented based on terms of AAUPA and report our findings to you.
Basis of Report
Our assessment of the Annual Report / Final Report was based in our evidence-gathering procedures
in accordance with the International Standards on Assurance Engagement (ISAE) “Assurance
Engagement Other than Audits or Reviews of Historical Information” (ISAE 3000). However, we have
not performed an audit according to International Standards on Auditing (ISAs). Accordingly we do
not express an audit opinion.
Objective of our engagement was to perform procedures regarding the Annual Report / Final Report
as defined in the AAUPA. It involved performing certain specified procedures in order to:

provide assurance to the Estonian government and the Buyer that the financial statements
submitted by GISO on the use of Proceeds from the Account provide a true and fair view of the
fund flows from this Account to the final beneficiaries, and that the statements have been
prepared in accordance with the relevant accounting standards and other requirements and are
in accordance with the applicable laws, rules and regulations that govern them;

identify, assess and examine the risks to regularity, propriety and financial control by the GISO
and report on the weaknesses if any;

ensure that the Annual and the Final Reports have been prepared in accordance with the
Greening Frameworks requirements;

ensure that the Annual and the Final Reports provide a true and fair view of the activities
implemented and the GHG emission reduction has been achieved;

ensure that the procedures set in the Greening Frameworks have been followed by the GISO;

ensure that the GHG emission reduction have been measured/estimated, verified and reported
according to the methodology defined in the Greening Frameworks.
Overview of procedures undertaken to assess the compliance with the AAUPA by EIC acting as GISO
were the following:

Interviews with respective employees of the EIC;

Overview of respective legislation and requirements set by internal regulations;

Overview of Internal Control System established for the project selection and supervision
regarding the AAUPA;

Analysis of accounting data in respect of liabilities and payments of Proceeds;

Sample checks of payments of Proceeds;

Testing of measures of GHG emission reduction.
We have prepared our report on <dd Month yyyy> and our procedures have been executed from
<dd Month yyyy> to <dd Month yyyy>.
Basis for Qualified Opinion
Factual Findings
[The Auditor's factual findings based on the procedures carried out are presented below.]
Exceptions
In some cases, we were not able to successfully complete the indicative procedures. These
exceptions are as follows:
[Exceptions, such as inability to reconcile key information, unavailability of data which prevented
Auditor from carrying out the procedures, etc., are listed and justified here.]
Statement
(Unqualified opinion)
Based on our work described in this report nothing has come to our attention that causes us to
believe that the Annual Statement is not properly presented in all material respects, and only within
the scope of samplings tested, based on the Agreement for the Sale and Purchase of Assigned
Amount of Units under Green Investment Scheme.
(Limitation of scope qualified opinion)
Based on our work described in this report, except for the effect(s) of such adjustments, if any, as
might have been determined to be necessary, had we been able to obtain sufficient evidence
considering the matter described in section “Basis for Qualified Opinion”, nothing has come to our
attention that causes us to believe that the Annual Statement is not properly presented in all
material respects, and only within the scope of samplings tested, based on the Agreement for the
Sale and Purchase of Assigned Amount of Units under the Green Investment Scheme.
This report is intended solely for the information and use of general public and is not intended to be
relied upon. In no event shall <Name of the Audit Firm> be liable for any losses, damages or expenses
sustained as a result of the reliance by any person on this report.
Tallinn, <dd Month yyyy>
<Name of the Auditor>
<Name of the Audit Firm>