Thematic workshop Strand 1.1 and 3.2: Multi-annual Cooperation projects & Cultural policy analysis (2013) Fiona DEUSS FRANDI and Chiara PUCCI
Agenda: • Project life-cycle • Grant agreement • Roles: coordinator, beneficiaries, associate partner • Budget, eligibility of costs, third country costs • Bank account, financial transfers, exchange rates, subcontracting • Amendments • Interim/Final report, publicity obligations • Checks and audits 2
Project life cycle Audit Evaluation & Monitoring & dissemination of support results 3
Grant Agreement • Two main parts (Special conditions and Annexes): Multi-beneficiary Grant Agreement Annex I General Conditions Annex II Estimated budget of the action Annex III Model financial statement Annex IV Model technical report Annex V Description of the action Annex VI Guidance notes – Report of Factual Findings on the Final Financial Report – Type II Annex VII Mandates provided to the coordinator by the other beneficiaries 4
Grant Agreement • Multi-beneficiaries • Special conditions > Annex I General conditions > other Annexes • Grant agreement (including annexes) = legally binding for all signatories (beneficiaries & the Agency) • Flexibility (changes) possible but inform the Agency in due time (address of one of the beneficiaries, legal representatives, contact persons, one of the beneficiaries, the budget, the work programme) 5
Grant Agreement (Art. I.1 – I.2) By signing the Agreement beneficiaries legally commit themselves to (Article I.1): • implement the action as described in Annex V • do everything in their power to implement the described action • act on their own responsibility Duration (Article I.2): • Start and end date = eligibility period for expenses 6
Project's budget (Art. I.3) Total cost vs. eligible cost Max. EU grant as % of total eligible costs 7
Beneficiaries' general obligations and role (General conditions II.1.1) Be jointly responsible for caring out the action • Be responsible for complying with any legal obligation • Shall agree between themselves on: the proper implementation of the action , • the budget and its division • Cooperation agreement 8
Cooperation agreement Not annexed to the grant agreement A legal document signed by all beneficiaries (describing the tasks, roles and financial contribution of each partner, etc.) You can update it anytime to include the grant agreement rules (ask for our advice) 9
Cooperation agreement We advise you to include the following provisions: a clear description of the objectives of the project, and of the activities that will be implemented in order to achieve these objectives a clear description of the role, obligations and responsibilities of the coordinator and each of the co-organisers and third country partner the budgetary and financial framework of the project, including the financial contributions of each co-organiser a clear description of payment modalities and how the EU grant will be distributed between partners legal aspects such as duration of the agreement, liability, breach of contract, termination of the agreement, intellectual property, governing law and dispute resolution 10
Coordinator’s general obligations and role (General conditions II.1.3) a) monitor that the action is implemented (as per grant agreement) b) be the intermediary for all communications between the beneficiaries & the Agency i. inform the Agency of any change ii. supply all required document/info to the Agency c) make arrangements for the bank guarantee (if required) d) establish the payment request on behalf of the beneficiaries 11
Coordinator’s general obligations and role (General conditions II.1.3) e) ensure that the beneficiaries receive their part of the EU grant without unjustified delay (proof to include in the final report) f) provide all the necessary documents in the event of audits, checks or evaluations g) transfer to the other beneficiaries any document related to the action (e.g. copy of the signed grant agreement) 12
Other beneficiaries' general obligations and role (General conditions II.1. 2) a) inform the coordinator immediately of any event liable to substantially affect/delay implementation of the action b) inform the coordinator of any change concerning its organisation (legal, financial, technical) c) provide the coordinator in due time with: i. all data needed to report to the Agency, ii. all documents in the event of audits, checks or evaluations iii. any other information requested by the Agency 13
Associate partners • participate to the implementation of a project (but not to the extent and level of participation of the other beneficiaries) • contribute to the project’s outcomes/activities . • their expenditure is not eligible, unless: • directly paid or • refunded by coordinator or other beneficiaries • if they provide services subcontracting! 14
Associate partners – Global invoice • their financial contribution is not mandatory • their costs for the project global invoice to one of the beneficiaries (coordinator or other beneficiaries) in charge of the related activity(ies) • which information and documents are required? • The detail of activities / services carried out • Copy of all his underlying invoices • Evidence/proof of payments 15
Associate partners • List of invoices: not correct non-eligible Associated partners • Correct Associated partners 16
Bank account (Art. I.5) • the Agency will make all payments to the coordinator’s account • payments made to the other beneficiaries made through coordinator's account (Art. I.5) • share of EU grant per beneficiaries to be mentioned in the interim/final report (technical and financial) 17
Financial transfers (General conditions – II.I.3(e) ) Transfer to co-organisers of their part of EU grant In annex III: 18
Financial transfers: costs (General conditions – II.19.2-4) are eligible: • costs of requested financial guarantee are not eligible: • interest owed • exchange losses • costs of transfers from the Agency charged by the bank of a beneficiary 19
Exchange rate (Art. I.10.3) • financial reports in Euro! • exchange rates available here: http://ec.europa.eu/budget/inforeuro/index.cfm?fuseaction=home&SearchField=&Peri od=2003-9&Delim=,&Language=en • use the exchange rate EUR/currency 20
Exchange rate Two possible situations: 1. You are from the Euro zone and incurred a cost in another currency : – Use the exchange rate applied to the payment by the bank and recorded in your accountancy – Tick the box ‘ Reimbursed by a partner from the EURO area ’ 21
Exchange rate 2. You are from outside the Euro zone and incurred a cost in another currency than Euro : Which monthly rate to use (for all invoices) for strand 1.1? For interim reports month of submission of interim report For the final report month used in your last interim report For strand 3.2: Projects between 13 and 24 months month after the action's midterm 22
Subcontracting (Art I.10.2 + general conditions II.9-10) Is : 'any service provided, in return for payment, by an external body, organisation or individual (including an associate partner) to the beneficiaries' is not : artist fees, fees for speakers • services provided by a public body • travel, local transport, subsistence • purchase of equipment (depreciation only) • 23
Subcontracting (Art I.10.2 + general conditions II.9-10) • limited to 50% of the total direct eligible costs (chapters 1+2+3+4) • only supporting activities ! The beneficiaries remain legally & in practice responsible for the project management • tendering procedures follow national rules regarding procurement (amount exceeding 60.000 € ) • pay extreme attention to avoid conflict of interest! 24
Subcontracting – Natural persons (Art I.10.2) Costs of natural person (e.g. freelancers) will be assimilated to staff costs if: • the person works under the instructions of a beneficiary and he/she is in his premises • the result of his/her work belongs to beneficiary • costs similar to the ones of staff member 25
Subcontracting list of invoices indicate if the expense relates to subcontracting or not Annex III 26
Eligible costs (general conditions Art. II.19) To be eligible, costs must be: • incurred by one of the beneficiaries • related to an activity which has taken place during the eligibility period ( exception Report on Factual Findings on the Final Financial Report ) • foreseen in the estimated budget (Annex II) • identifiable and verifiable (recorded in the accounting records) • Compliant with applicable tax and social legislation requirements • reasonable and justified, compliant with sound financial management • paid (when the final report is submitted) 27
Staff costs: – Max 20% of other direct costs (i.e. chapters 1 + 2 + 3) – List of invoices name of the staff members involved Supporting documents: • the contract/secondment decision • job description, • salary slips , • timesheets (covering the person’s complete time -involvement with the organisation) 28
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