ANNUAL FINANCIAL STATEMENTS for the financial year from 1 July 2020 to 30 June 2021 Completeness and accuracy of personnel expenses of the professional squad We refer to the information in the explanatory employment contracts with their remuneration notes to the income statement (Section: Personnel components and amounts as well as individual expenses). termination agreements. We checked the consistency of contracts deliberately selected THE FINANCIAL STATEMENT RISK according to certain risk criteria with the Among other expenses, the salaries of the corresponding salary calculations. For the professional squad are disclosed under personnel selected contracts, we checked to what extent expenses in the financial statements of Borussia contractually agreed conditions now apply for the Dortmund. These include, besides the base salaries, variable remuneration components. Furthermore, also performance-related remuneration, such as we examined whether events had occurred that appearance bonuses and annual performance would have resulted in higher expenses. In terms bonuses, as well as individual special payments. Due of agreed special or one-off payments, we to individually agreed remuneration components and examined whether personnel expenses were remuneration amounts, there is generally the risk for recognized in the proper period regardless of the the financial statements that the personnel expenses payment date. of the professional squad were not completely reported or not reported at the correct amount. OUR OBSERVATIONS The individually agreed remuneration components OUR AUDIT APPROACH and compensation amounts were appropriately Our audit procedures in particular included an recognized as personnel expenses of the inspection and assessment of the currently valid professional squad. 111