Having regard to the Agreement on the European Economic Area, hereinafter referred to as the EEA Agreement;

Having regard to the Agreement between the European Union, Iceland, the Principality of Liechtenstein and the Kingdom of Norway on an EEA Financial Mechanism 2014-2021,

Having regard to Protocol 38c on the EEA Financial Mechanism (2014-2021), inserted into the EEA Agreement by the aforementioned Agreement between the European Union, Iceland, the Principality of Liechtenstein and the Kingdom of Norway on an EEA Financial Mechanism 2014-2021,

Having regard to the Agreement between the Kingdom of Norway and the European Union on a Norwegian Financial Mechanism for the period 2014-2021,

Having regard to the Decision of the Standing Committee of the EFTA States No 2/2016/SC of 2 June 2016 amending Decision of the Standing Committee of the EFTA States No 4/2004/SC of 3 June 2004 establishing a Financial Mechanism Committee,

Having regard to Decision of the Standing Committee of the EFTA States No 3/2016/SC of 2 June 2016 extending the tasks of the Office for the EEA Financial Mechanism and the Norwegian Financial Mechanism;

Having regard to the Decision of the ESA/Court Committee No 5/2002 of 23 October 2002 on the Mandate of the EFTA Board of Auditors (‘at three’);

Article 1

The Board of Auditors shall act as supreme authority for the auditing of programmes and projects under the EEA Financial Mechanism 2014-2021 (hereinafter referred to as ‘EEA Financial Mechanism’). This includes the audit of programmes and projects in the Beneficiary States, the Beneficiary States' management of the programmes and projects and implementation of the EEA Financial Mechanism. The Board of Auditors may also audit the Financial Mechanism Office in respect of the EEA Financial Mechanism.

Article 2

The Board of Auditors shall consist of nationals from the EFTA States party to the EEA Agreement and preferably being members of the supreme audit institutions of the EFTA States. Their independence must be beyond doubt. An official of EFTA may not be appointed auditor until an interval of three years has elapsed since the end of his appointment with any of the EFTA institutions.

Article 3

The members of the Board of Auditors that perform audits according to Article 1 shall be the same persons as those appointed in and for the same term as set out in the Decisions of the ESA/Court Committee, No 9, 10 and 11 of 12 December 2013 on the Reappointment of the Members of the EFTA Board of Auditors (‘at three’). Upon expiry of their term the members of the Board of Auditors that perform audits according to Article 1 shall be the persons appointed by decision of the ESA/Court Committee.

Article 4

The members of the Board of Auditors shall be completely independent in the performance of their duties.

Article 5

The members of the Board of Auditors shall closely cooperate with the person or persons entrusted with the corresponding audits under the Norwegian Financial Mechanism for the period 2014-2021 in audits of activities relating to both Financial Mechanisms.

Article 6

The cost of appropriate and proportional audits as referred to in Article 1 shall be financed from the administrative budget of the EEA Financial Mechanism. Based on a budget proposal from the Board of Auditors and a recommendation from the Financial Mechanism Committee (hereinafter referred to as ‘FMC’), the Standing Committee shall agree on the amount to be granted for this purpose.

Article 7

The Board of Auditors may engage external experts to assist it. The external experts must fulfil the same requirements of independence and comply with the same duty of cooperation provided for in Article 5 as the members of the Board of Auditors.

Article 8

The Board of Auditors shall inform the FMC and report to the Standing Committee of the EFTA States regarding the audit referred to in Article 1. It may submit proposals for action.

Article 9

The Board of Auditors shall propose its own terms of references concerning the audit referred to in Article 1 and submit them, after consultation with the FMC, to the Standing Committee of the EFTA States for adoption.

Article 10

This Decision shall take immediate effect.

Article 11

This Decision shall be published in the EEA Section of, and in the EEA Supplement to, the Official Journal of the European Union.