Presentation is loading. Please wait.

Presentation is loading. Please wait.

111 EU Funding Workshop Intermediate Body Training Basic principles and requirements.

Similar presentations

Presentation on theme: "111 EU Funding Workshop Intermediate Body Training Basic principles and requirements."— Presentation transcript:

1 111 EU Funding Workshop Intermediate Body Training Basic principles and requirements

2 222 EU Competitiveness Programme 306m ERDF306m ERDF Intervention rate 50%Intervention rate 50% 4 Priorities4 Priorities –P1 Competitiveness and Innovation –P2 Enterprise and Entrepreneurship –P3 Improving accessibility –P4 Technical assistance

3 3313 Financial Flow 100% Public Expenditure Eligible Expenditure input to EU Database Claim Submitted to EC 50% of Eligible Expenditure Received from EC EU receipt reimbursed

4 444 How is the Programme Managed? Managing Public Money NIManaging Public Money NI DFP Guidance ( Audit and Financial Management Division)DFP Guidance ( Audit and Financial Management Division) EU Regulations and GuidanceEU Regulations and Guidance Programme Documents & GuidanceProgramme Documents & Guidance Guiding principle – Strictest Rules Apply

5 Players Audit AuthorityDETI Audit – Jackie Connolly Managing AuthorityDETI EU Support Unit – Maeve Hamilton Certifying AuthorityDETI Accountability – David Conliffe Intermediate BodiesDETI / Invest NI / NITB DARD DSD – to be formalised DRD – to be formalised

6 666 Managing Authority Role Programme Development Overall Programme Management –High level approval of activity –Guidance and Operating manual –N+2 –Claim initiation –Evaluation Negotiating Programme changes with EC Reporting on Progress Closure

7 777 Certifying Authority Role Validity and accuracy of claims Certification of claims Submission of claims to the Commission Accounting for and disbursing EU receipts Irregularity and recovery monitoringIrregularity and recovery monitoring

8 888 Audit Authority Role Audit StrategyAudit Strategy System AuditsSystem Audits Audits of OperationsAudits of Operations Annual Control Report and OpinionAnnual Control Report and Opinion Closure DeclarationClosure Declaration

9 999 IB Role Selection of operationsSelection of operations AppraisalAppraisal Award of fundingAward of funding MonitoringMonitoring Verifying operations and expenditureVerifying operations and expenditure Financial accountabilityFinancial accountability ReportingReporting PublicisingPublicising Maintaining the databaseMaintaining the database Safeguarding the audit trailSafeguarding the audit trail Defined in the Memorandum of UnderstandingDefined in the Memorandum of Understanding

10 10 Key Issues Eligibility of Activity and Expenditure Audit Trail Procurement Publicity

11 11 Eligible Activity Must contribute to the delivery of the relevant Programme Objectives

12 12 Ineligible Activity Displacement of similar existing activitiesDisplacement of similar existing activities Building and renovation of housingBuilding and renovation of housing Agriculture, Fisheries and ForestryAgriculture, Fisheries and Forestry Local social welfare facilitiesLocal social welfare facilities EC Sectoral Restrictions (shipbuilding etc)EC Sectoral Restrictions (shipbuilding etc)

13 13 Ensuring Activity is Eligible Selection Criteria Selection Panels Appraisal Casework Committees Approval Bodies Letters of Offer/Contracts Monitoring and reporting against terms and conditions

14 14 Eligible Expenditure Principles Against approved project activity Directly attributable to the project Relates to Northern Ireland Actually incurred and paid by the final beneficiary between 1 Jan 2007 and 31 Dec 2015

15 15 Eligible Costs for Capital Purchase and/or development of Land Purchase or development of Real Estate Preliminary Expenditure Professional Fees Purchase/lease of plant and equipment

16 16 Eligible Staff Costs Basic Salary Statutory Contributions Pension Contributions Training Costs Recruitment Costs Non-statutory Sick/Maternity Pay Holiday Pay Commission Shift allowance Taxable Benefits Must be defined in T&Cs of employment Private companies only

17 17 Part-time Staff Costs Time Records How is the hourly rate calculated?

18 18 Daily/Hourly Rate Calculation BasisExample Actual salary for claim period (ERNI, pension and additional taxable contracted costs elements) £5,000 Contracted working days per week5 Multiply by period covered by claim e.g. 13 weeks65 Subtract contracted leave pro rata for claim period (e.g. 20 days/4 = 5) 60 Subtract contracted statutory holidays pro rata for claim period (e.g. 10 days/4 = 2.5) 57.5 Gives daily rate of £5,000/57.5 =£86.96 Divide by contracted daily hours (e.g. £86.96/8 hours = £10.87

19 19 T&S Mileage Accommodation Meals Air/rail/bus/other travel

20 20 Other Eligible Costs Hospitality Professional/Consultancy Fees Accommodation Consumables Marketing/Promotion Other (insurance, depreciation, maintenance etc)

21 21 Ineligible Expenditure – Common Errors Payment against scale or unit costs Notional costs Time records incomplete or missing for part-time staff Recoverable VAT Missing or incomplete audit trail Expenditure outside Programme/LoO period

22 22 Ineligible Expenditure – some of the rest Bank charges or fees on accountsBank charges or fees on accounts Mandatory training under statutory provisionMandatory training under statutory provision Fines, financial penalties and litigation costsFines, financial penalties and litigation costs DividendsDividends Set up/contribution to private pension schemesSet up/contribution to private pension schemes

23 23 Management Verification 23

24 24 Who conducts Management Verification? Finance staff Programme managers Technical staff Grant inspectors Managing Authority Intermediate Body 24

25 25 Management Verification Can encompass: –Claim checks –Contract monitoring –Project Visits –Board Meetings/Project Launches –Formal Article 13 on-site verification

26 26 Management Verification – Key Issues TimingTiming FrequencyFrequency NatureNature Keeping adequate recordsKeeping adequate records Database entriesDatabase entries

27 27 Audit Trail 27

28 28 What is the Audit Trail The comprehensive set of documents which provide a complete history of a project and provide evidence that proper procedures were applied and outcomes achieved.

29 29 Audit Trail Documents Application formsApplication forms Selection/Appraisal recordsSelection/Appraisal records Contract/Letter of OfferContract/Letter of Offer Management and control recordsManagement and control records Payment recordsPayment records Monitoring reportsMonitoring reports Closure documentsClosure documents

30 30 Audit trail – How long, in what format and where? Period – 2022 Format Location

31 31 Payment Audit Trail May differ depending on the nature of the expenditure but in general will include: –Proof of commissioning of the goods/service –Proof of receipt of the goods/service –Proof of payment

32 32 Personnel Costs Contract of Employment Payroll records Time records Breakdown of contributions (statutory and any company specific elements) Proof of Payment

33 33 Equipment/Consumables Invoices Lease/rental agreements User logs Procurement documentation as appropriate Proof of payment Asset Register

34 34 Contract Expenditure Procurement documentation & the contract Monitoring/management documentation Invoice and evidence of any 3 rd party costs included on a real cost basis Proof of payment

35 35 Travel and Subsistence Claim form signed, dated and approved Receipts/invoices Supporting evidence of the event Proof of payment

36 36 Payment Audit Trail Indirect Costs/Overheads –Invoices –Accounting records –Apportionment data –Proof of payment

37 37 Procurement 37

38 38 Procurement – Public v Private Rules apply to Public Bodies VFM for private companies Reasonableness test for private companies If in doubt refer to CPD 38

39 39 Common Procurement issues Not adhering to threshold requirementsNot adhering to threshold requirements Insufficient advertisingInsufficient advertising Evaluation criteria in ToR not used in assessmentEvaluation criteria in ToR not used in assessment Extensions to contractExtensions to contract Incomplete supporting documentation / audit trailIncomplete supporting documentation / audit trail Payments not in line with agreed payment schedulePayments not in line with agreed payment schedule Activity not verified in line with contract termsActivity not verified in line with contract terms 3 rd Party costs not appropriately verified3 rd Party costs not appropriately verified Unapproved single tender actionsUnapproved single tender actions

40 40 Publicity 40

41 41 Publicity Letters of Offer / contract documents Brochures / leaflets Invitations Advertisements Web-pages Promotional items Billboards & Plaques Publications and press releases Presentations Conferences/exhibitions/training/events

42 42 Publicity – general principles Logo and strap line Front of material Equal prominence Readable Proportionate and appropriate

43 43 Consequences of non- compliance Activity100% of expenditure on the activity Expenditure100% of the error value Audit trailUp to 100% PublicityUp to 10% of the total grant TenderingDependent on the nature of non- compliance anything from 5% to 100% of contract value.

44 44 Ensuring Compliance Strong risk awareness and managementStrong risk awareness and management Strong financial controlsStrong financial controls Training and DocumentationTraining and Documentation Early stage education of funding recipientsEarly stage education of funding recipients Verification activityVerification activity

45 45 Guidance and Assistance library/guidance

Download ppt "111 EU Funding Workshop Intermediate Body Training Basic principles and requirements."

Similar presentations

Ads by Google