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FINANCIAL REQUIREMENTS ...and other usefull things to know for your IVB Project Utrecht, 15 January 2013 Financial Requirements The Basics Table of contents The Lead Partner principle Audit and Control Eligibility of Expenditure
Utrecht, 15 January 2013
The Basics
The Basics
Compulsory For the 2007-2013 programming period
The Basics
The Lead Partner is the administrative link between the programme and the project. As such, they bear responsibility for ensuring the project’s
their own actions.
Compulsory For the 2007-2013 programming period
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The LP
liable for their own actions and related expenditure
to the JTS
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Lead Partner Principle Partnership Agreement
Overall responsibility
implementation: content of the project + finance management
Responsibility for Project Management
funds to partners
expenditure
Contact with JTS
Submission of progress reports, payment claims, audit reports, project modifications…
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Agreement (in copy at partner level)
confirmations (and checklists/control reports)
ERDF
national currency into EUR
contracts, payroll documents and time records of personnel working for the project
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experts and/or service providers
included in overheads
publicity
evaluation, order forms, contracts
newsletters, minutes of meetings, translated letters, participant lists, travel tickets, etc.)
purchased in the context of the project.
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In what form? Original documents (at partner level), but also photocopies (at Lead Partner level), microfiches or electronic versions
Where? The Lead Partner is responsible for storing all relevant documentation for all partners and all sub-partners. They must be filed separately, even if this leads to a dual treatment of accounts. Importance of Partnership Agreement ! How long? It is essential that all documents and accounting records be kept available for a period of three years following the closure of the Programme, that is 31st December 2021. Projects that cannot provide sufficient documentation risk losing their ERDF grant.
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Closure of accounts at partner level: end July Documents to the project controller: end August Documents to the LP (controller): end September Documents to the JTS: end October
1080/2006)
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says now that verifications by the controllers shall include on-the-spot verifications.
commemorative plaques have been installed.
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The Commission verifies that the FLC have checked the follwing community rules:
For help please take a look at the COCOF “Guidance document on management verifications to be carried out by Member States on
Fund for the 2007 – 2013 programming period”.
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presented to the JTS
rates or hotel stays)
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payment claim
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Mistakes found by DG Regio during their audit in Germany
sheets did not exist.
controller‘s declaration are the minimum requirements).
not documented transparently. One explanation for an in house tender procedure was not accepted by the Commission. The conclusion was an interruption of payment to all German partners as of August 2012.
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The Basics
Start date: All costs are eligible one year prior to the closure of the call for proposals as long as the actions are not completed before that date. End date: The end date indicated in the Application Form is the date by which the final report should be submitted to the Secretariat. Project expenditure can be eligible until 31 December 2015. Any expenditure (including costs linked to the project closure) incurred, invoiced or paid after the official project end date is ineligible.
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1 Partner Staff 2 External Experts & Consultants 3 Travel and Acommodation 4 Meetings and Seminars 5 Publicity 6 Equipment 7 Investment 8 Audit costs 9 Administration Costs 10 Revenues
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Staff costs are the costs of the actual time (no averages) worked by the persons directly carrying out the work under the project and directly employed by the partners. All staff costs must be based on real costs, supported by proper documentation (payslips and timesheets) and calculated on the following basis: Remuneration costs (taken from payroll) = total gross remuneration + employer’s portion of social charges. Remuneration costs must be calculated individually for each employee and must be based on the monthly payslip.
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Working time must be recorded (eg. timesheets) throughout the duration of the action. The records should be certified at least once a month and signed by the employee and the supervisor. Estimates of hours/days worked are not acceptable. Employees working full time on the project, do not need to fill in time sheets.
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Work done by independent consultants must be essential to the project and reasonably priced. Pay attention to:
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Are eligible for partner staff, all tickets, invoices and receipts must be kept by partners so that their eligibility can be checked and audited. Copies should be sent to the Lead Partner. Costs must be directly related to, and essential for, the effective delivery of the project and cover economy class travel on public transport. Recommendation for maximum daily subsistence allowances are based on the Commission subsistence allowances paid to experts on assignments requiring an overnight stay. For more information see our Guidance Notes.
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Costs related to the organisation of meetings and events (renting of premises and equipment, meals, etc), participation in meetings and seminars related specifically to the project are eligible under this budget line. Related travel costs and external expert costs must not be budgeted under this budget line (external expert, communication).
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Expenditure with the main aim of promoting the project should be part of this cost category. This includes website, promotional material and printed publications. Public procurement rules must be observed in selecting company or individual who will carry out the assignment. Pleas be sure that you follow the publicity requirements of the European Commission and use the flag all project documents and commemorative plaques wherever needed.
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A clear distinction must be made between what is included in the investment budget line (where the total cost is eligible) and the equipment budget line (where depreciation should be the rule). The purchase of land is eligible in an investment if it does not exceed 10% of the total eligible costs for the operation concerned. All eligible expenditure must be fully described in the approved Application Form.
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Administration costs include items such as office rent, maintenance and furniture, electricity, heating, water, insurances, telephone, fax, internet, stationary and other administrative structure costs. The NWE Programme has decided to use a 11% flat rate on staff costs for all projects that have been approved after June 2011. This flatrate is the same for all projects and cannot be adjusted. No documents need to be kept as proof.
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The Lead Partner must keep separate accounts for the project so that all expenditure (costs) and all revenue (receipts) can be posted and audited, and detailed summary reports drawn up. All revenue generated from sales, rentals, subscriptions, fees
deducted from the eligible costs. In case of a revenue-generating projects, the current value of the net revenue from the investment must be estimated over a specific reference period. Where it is not possible to estimate the revenue in advance, the revenue generated within 5 years following project closure must be reported (article 55 of EU regulation No 1083/2006).
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For partners from the NWE area, any expenditure incurred outside the eligible area (for example, costs of a meeting or conference held outside the area) must be justified in full and a clear need for the expenditure to be incurred outside the area must be demonstrated. Projects must get formal approval from the Secretariat before incurring expenditure outside of the NWE area.
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(non-exhaustive list)
beneficiary
Further Information: General Regulation (EC) No 1083/2006 - article 56 ERDF Regulation (EC) No 1080/2006 - articles 7 and 13 Implementation Regulation (EC) No 1828/2006 - articles 48-53
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Costs related to project development and application are eligible if:
development of the project.
the call. They may include staff, external experts, travel and subsistence, meetings, publicity. Preparations costs have to be claimed all at once for the whole partnership They are subject to a ceiling of €100,000 total eligible cost (max €50,000 ERDF).
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Costs related to coordination and the management of the project must be recorded under the partner who will incur the expenditure. Partners can contribute financially to the coordination costs but this should not be mentioned neither in the budget, nor in the Payment Claim.
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Joint Technical Secretariat Assesses the Progress Report and the Payment Claim received Prepares the payment request to the Certifying Authority Certifying Authority Programme Bank Account Project Lead Partner Submits a Progress Report and a Payment Claim: end April - full version and end October - light version Reimburses the other project partners according to their expenditure Payment Claim Project Partner Project Partner Payment Claim Flow Money Flow
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What and when? 30 April and 31 October
!! Are necessary beforehand:
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Request for changes are allowed 3 times in total, no later than 6 months before the end date of the project and only upon formal request and approval by the Secretariat or the Programme’s Steering Committee – depending on the significance of the changes. The “request for changes” form must be used. The Secretariat should be notified of minor changes as soon as possible by official letter from the Lead Partner. This would be, for example, a change of bank account, a new contact person, a change
To receive the request for changes form an email needs to be sent to the JTS Officers in charge of your project.
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Budget Line Modifications (BLM) Projects can overspent an individual budget by a maximum of 20%. Increases of more than 20% on individual budget lines must be submitted and duly justified to the Secretariat using the request for changes form. The project will receive formal approval from the Secretariat if appropriate. Other financial changes Ex: a reduction of grant rate at partner level or a decrease in the overall budget -> use the request for changes form.
VoE
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