2 Contents 1)Eligible costs and cost categories 2)Budget: present budget breakdown and modifications 3)Reporting deadlines, requirements and templates 4)Most common problems with financial reporting 5)EU Payment modalities OVERVIEW OF THE PRESENTATION
3 Directly linked and necessary for the project Reasonable and comply with principles of sound financial management value for money Compliant with applicable tax and social legislation Actually incurred during lifetime of action Identifiable and verifiable functioning financial and analytical accounting system in place; Without any profit ELIGIBLE COSTS (1)
4 Personnel costs calculated on the basis of the actual gross salary or wages plus obligatory social charges and any other statutory costs. Time spent for the project must be recorded on a timely basis by means of time sheet. Travel and subsistence details required on reason/purpose, destinations, number of persons, travel costs, subsistence costs (e.g. use of per diem) Equipment relating to durable goods, clear description of item required; full estimated purchase cost; participant shall apply internal rules to calculate the eligible depreciation charge (exception: for equipment acquired before the starting date of the project shall be considered as overheads cost category) Sub-contracting/external assistance relate to purchase of services, not of goods; respect rules on public procurement. Other direct costs other direct cost not falling within another defined cost category. (ex: consumables) Overheads Costs that cannot be directly linked with buildings, administrative costs => Maximum amount: 7% of total amount of eligible direct cost must be identifiable and justifiable in the accounting system. ELIGIBLE COSTS (2)
5 Not foreseen in the project Excessive expenditure: lodging in luxury hotels, business class tickets Interest charges Provision on losses VAT (exception if the participant cannot recover tha VAT paid under the project. Proof to be delivered) NB - CONCERNING THE VAT If you havent done it yet, please send us by post or courier the VAT Declaration filled in, stamped and signed by your financial responsible as soon as possible. NON ELIGIBLE COSTS
6 BENEFIC.TOTAL BDG PERSONN EL TRAVEL EQUIP. OTHER DIRECT COSTS SUBCONT R. OVERH. PROVAN 160.000,0 60.000,00 16.044,00 17.000,00 3.050,00 62.950,00 956,00 Marche Region 59.000,00 27.000,00 10.564,00 3.000,00 14.000,00 1.436,00 FCVRE 70.000,00 42.000,00 8.694,00 1.200,00 9.600,00 6.500,00 2.006,00 PLV 83.000,00 24.508,00 9.492,00 17.000,00 2.000,00 29.000,00 1.000,00 IITC - BAS 80.000,00 38.930,00 7.035,00 1.000,00 30.000,00 2.035,00 SM 73.000,00 25.642,00 8.358,00 19.000,00 4.000,00 15.000,00 1.000,00 TOTAL 525.000,0 218.080,00 60.187,00 58.200,00 22.650,00 157.450,00 8.433,00 PRESENT BUDGET BREAKDOWN
7 BENEFIC.TOTAL BDG PERSONN EL TRAVEL EQUIP. OTHER DIRECT COSTS SUBCONT R. OVERH. PROVAN 160.000,0 60.000,00 16.044,00 17.000,00 3.050,00 62.950,00 956,00 Marche Region 59.000,00 27.000,00 8.800,00 (- 1.764,00) 3.000,00 4.764,00 (+ 1.764,00) 14.000,00 1.436,00 FCVRE 70.000,00 42.000,00 8.694,00 1.200,00 9.600,00 6.500,00 2.006,00 PLV 83.000,00 24.508,00 9.492,00 17.000,00 2.000,00 29.000,00 1.000,00 IITC - BAS 80.000,00 41.430,00 (+2.500,00) 7.035,00 1.000,00 1.000,00 25.500,00 (- 4.500,00) 4.035,00(+ 2.000,00) SM 73.000,00 25.642,00 8.358,00 19.000,00 4.000,00 15.000,00 1.000,00 TOTAL 525.000,0 218.080,00 58.423,00 59.035,00 25.914,00 152.950,00 10.598,00 NEW BUDGET BREAKDOWN
8 REPORTING REQUIREMENTS PROGRESS REPORTS -Deadlines for the Associated Beneficiaries: July 15, 2011, April 15, 2012. -Have a maximum length of 4 pages and have as an annex the updated T forms (Technical Application forms), allowing the Commission to assess the projects progress. -Progress reports should contain a summary update of the project past, ongoing and planned activities and outputs, as well as relevant comments on project management and partnership management aspects. -It should have as an attached a one-page financial summary highlighting the project expenditure incurred until the drafting of the progress report. The form Participant Cost Statement Summary or Consolidated Cost Statement for the Action should be used (the latter only if the project includes associated beneficiaries).
9 IMPORTANT ELEMENTS OF FINANCIAL REPORTS Whenever requesting a payment (final, in our case) the following sheets of the Excel-Workbook must be sent in a paper version: Standard Payment Request and Financial Statement - including payment request; do not forget the declaration of interest yielded on pre-financing payment (in the FR01 form. Payment request must be filled out in any case) – completed, signed and dated by the CO. Participant Cost Statement Summary – completed, signed and dated by the CO and the ABs. Consolidated Cost Statement for the Action - If the project includes associated beneficiaries, CO must also complete and sign the consolidated cost statement for the Action (FR03 form)
10 IMPORTANT ELEMENTS OF FINANCIAL REPORTS All the financial forms (except time sheet) are obligatory formats VAT declarations must be presented for participants that cannot recover VAT NOT TO BE ANNEXED: supporting documents such as invoices and time sheets. The Commission will request them if necessary. IMPORTANT: Each participant (CO an ABs) must complete an individual Excel-Workbook to report their individual costs. REMEMBER: keep an electronic version of all working documents used in the preparation of the Excel-Workbook. For the Municipality of Sophia - Exchange rate: InforEuro – http://ec.europa.eu/budget/inforeuro/index.cfm?Language=en http://ec.europa.eu/budget/inforeuro/index.cfm?Language=en
11 Audit possible at any time during the project implementation ad up to 5 year after the final payment Keep all documentation required to ascertain the elegibility of the costs On the basis of the conclusions, appropriate measures will be taken even recovery. COMMISSION FINANCIAL AUDIT
12 No reference on the invoices (name of the project) F0 Form Part A total = Part B total F6 form: please detail the description of the cost categories, such as subcontracting costs (specify) COMMON PROBLEMS IN MANAGING GRANTS
13 GOES has already received a 60% pre-financing of an amount of 236.250,00 (1st instalment). The CO has already transferred the pre-financing to all ABs after the PA signature as indicated in the following table. The balance (40% final payment) shall be paid after the approval of the final technical report and the statement of expenditure and income. The Commission has 105 days to approve them (unless comments are required). EU PAYMENT MODALITIES
14 The Province of Ancona transferred the 1st instalment to the GOES partners: PRESENT SITUATION OF PAYMENTS PartnersTotal budgetTotal EU funds per partner Amount of 1st instalment PROVAN 160.000,00 120.000,00 72.000,00 REG. MAR. - PT 59.000,00 44.250,00 26.550,00 Fun. Com. Val. – Reg. EU 70.000,00 52.500,00 31.500,00 Pol. Loc. Valencia 83.000,00 62.250,00 37.350,00 IITC-BAS 80.00,00 60.000,00 36.000,00 Mun. Sophia 73.000,00 54.750,00 32.850,00 TOTAL 525.000,00 393.750,00 236.250,00
15 Thank you for your attention. Province of Ancona – Financial and administrative reporting: email@example.com ++39 (0)71 5894211 firstname.lastname@example.org ++39 (0)71 5894210 CONTACTS
16 Meeting Agenda: -Reports of the 1st Steering Committee meeting in Valencia – approval and signature. -Steering Committee Regulation – approval. -Budget modifications. -Dissemination and promotion of the project. -Personnel involved in the project. -Other (next meeting in Sophia, system architecture, etc.) STEERING COMMITTEE
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