1. 1 Financial Procedures in FP7 Projects Reporting and Audits Karolina Lis Research Assistant DCU, Finance Office karolina.lis@dcu.ie

2. 2 Content Financial Procedures in FP7 Projects: Financial Procedures in FP7 Projects: Project Budget – EuropaMedia Graph Project Budget – EuropaMedia Graph Eligible Costs Eligible Costs Non-Eligible Costs Non-Eligible Costs Direct/Indirect Costs Direct/Indirect Costs Reporting and Audits: Reporting and Audits: Reporting periods Reporting periods Periodic/Final Reports Periodic/Final Reports Certificate on the Financial Statement (FP6 = Audit Certificate) Certificate on the Financial Statement (FP6 = Audit Certificate)

3. 3 ESTABLISH Budget Total max. EC contribution - €3,389,648 (100% funded project - Coordination and support action) Total max. EC contribution - €3,389,648 (100% funded project - Coordination and support action) A Pre-Financing - €1,807,812 (paid 45 days following the start date) A Pre-Financing - €1,807,812 (paid 45 days following the start date) Financial Identification form (copy enclosed) Financial Identification form (copy enclosed)

4. 4 Project Budget – Graph

5. 5 Eligible costs: Actual Actual Incurred during the project Incurred during the project Incurred at/by the Beneficiary Incurred at/by the Beneficiary In accordance with the beneficiary’s usual accounting and management principles In accordance with the beneficiary’s usual accounting and management principles Recorded in the accounts of the beneficiary Recorded in the accounts of the beneficiary Used for the sole purpose of achieving the objectives of the project Used for the sole purpose of achieving the objectives of the project

6. 6 Non-Eligible costs: The opposite to the previous slide The opposite to the previous slide Identifiable indirect taxes, e.g. V.A.T. Identifiable indirect taxes, e.g. V.A.T. Duties, Interest owed; Debt and debt service charges, any provisions for future losses or charges Duties, Interest owed; Debt and debt service charges, any provisions for future losses or charges Exchange losses Exchange losses Airport taxes – are eligible in FP7!

7. 7 Direct / Indirect Costs Direct costs (that can be attributed directly to the project) Direct costs (that can be attributed directly to the project) Personnel costs Personnel costs Travel costs for personnel working on the project Travel costs for personnel working on the project Consumable costs Consumable costs Purchase costs of durable equipment (depreciation) Purchase costs of durable equipment (depreciation) Costs for Certificates on Financial Statements Costs for Certificates on Financial Statements Sub-contracting/Third Party Sub-contracting/Third Party

8. 8 Direct / Indirect Costs Indirect costs Indirect costs - All costs that cannot be identified as attributed directly to the project (the „running” costs: electricity, heating, telephone, internet etc, also called “overheads”) - All costs that cannot be identified as attributed directly to the project (the „running” costs: electricity, heating, telephone, internet etc, also called “overheads”) - Flat Rate 20% - Flat Rate 20% - Transitional Flat Rate of 60% (Only for non-profit public bodies, higher education establishments, SMEs)- can`t identify the real overhead per project - Transitional Flat Rate of 60% (Only for non-profit public bodies, higher education establishments, SMEs)- can`t identify the real overhead per project Actual Overhead (simplified method can be used) Actual Overhead (simplified method can be used)

9. 9 Reporting periods (GA) The duration of the project - 48 months from 1st January 2010 The duration of the project - 48 months from 1st January 2010 - P1: from month 1 to month 18 (1 Jan.2010 – 30 Jun.2011) - P1: from month 1 to month 18 (1 Jan.2010 – 30 Jun.2011) - P2: from month 19 to month 36 (1 Jul.2011 – 31 Dec.2012) - P2: from month 19 to month 36 (1 Jul.2011 – 31 Dec.2012) - P3: from month 37 to the last month of the project (1 Jan.2013 – 31 Dec.2013). - P3: from month 37 to the last month of the project (1 Jan.2013 – 31 Dec.2013).

10. 10 Periodic/Final reports All deliverables in the DoW (Annex I) shall be submitted within 60 days following the end of the respective reporting periods. All deliverables in the DoW (Annex I) shall be submitted within 60 days following the end of the respective reporting periods. Partners report to Co-ordinator (DCU) who reports to EU. Partners report to Co-ordinator (DCU) who reports to EU. Include Technical and Financial aspects of the project. Include Technical and Financial aspects of the project. All reports should be submitted electronically (except the signed Form C) - https://webgate.ec.europa.eu/ecas/index.jsp All reports should be submitted electronically (except the signed Form C) - https://webgate.ec.europa.eu/ecas/index.jsp

11. 11 Form C (Annex VI)

12. 12 Certificate on the Financial Statement (CFS) If Partner’s total claim is less than €375,000 then NO Certificate on Financial Statement required If Partner’s total claim is less than €375,000 then NO Certificate on Financial Statement required CFS - when cumulative, unaudited claims reach €375,000; if a certification on the methodology is provided only at the end of project CFS - when cumulative, unaudited claims reach €375,000; if a certification on the methodology is provided only at the end of project ESTABLISH – only Co-ordinator (DCU) ESTABLISH – only Co-ordinator (DCU)

13. 13 Obligation after the project closure To provide data to the Commission (up to 5 years from the official closure date) To provide data to the Commission (up to 5 years from the official closure date) Audits may cover Scientific, Technological and/or Financial aspects Audits may cover Scientific, Technological and/or Financial aspects

14. 14 List of Requested documents Personnel costs: employment contracts (or other independent/legal justification of personnel costs clamed), Ledgers/Accounts, payroll records (salary slips), time sheets, detailed breakdown and justification of the productive hours denominators used for the calculation of hourly rates, proof of payment Personnel costs: employment contracts (or other independent/legal justification of personnel costs clamed), Ledgers/Accounts, payroll records (salary slips), time sheets, detailed breakdown and justification of the productive hours denominators used for the calculation of hourly rates, proof of payment Overheads: in case of actual overhead model was used: full documentation concerning the calculation of the overhead costs and the back-up documentation thereto, analysis, reconciliation and summary of the final breakdown of overhead costs (by category of expense) charged to the project(s) subject to audit) Overheads: in case of actual overhead model was used: full documentation concerning the calculation of the overhead costs and the back-up documentation thereto, analysis, reconciliation and summary of the final breakdown of overhead costs (by category of expense) charged to the project(s) subject to audit) Consumables/equipment/other: invoices, proof of payments, in case of rented equipment – rental contract, records concerning the computer usage, if Applicable Consumables/equipment/other: invoices, proof of payments, in case of rented equipment – rental contract, records concerning the computer usage, if Applicable

15. 15 List of Requested documents Third party assistance: Sub-contracts, invoices, verification of payments, original deliverables from the subcontractors, evidence of own internal management and supervision procedures to confirm completion of work required to specification needed and reasonableness costs claimed in connection herewith Third party assistance: Sub-contracts, invoices, verification of payments, original deliverables from the subcontractors, evidence of own internal management and supervision procedures to confirm completion of work required to specification needed and reasonableness costs claimed in connection herewith Travel and subsistence: invoices, mission approval forms, report, minutes of the meetings, participants of the meetings, e-mail documentation, etc. Travel and subsistence: invoices, mission approval forms, report, minutes of the meetings, participants of the meetings, e-mail documentation, etc. Bank statements – in case one is the coordinator of the GA, bank statements relating to the payments of EC contribution and the distribution to the contract partners Bank statements – in case one is the coordinator of the GA, bank statements relating to the payments of EC contribution and the distribution to the contract partners Auditor certificate: copies of any auditor certification statements issued with a claim for cost reimbursement Auditor certificate: copies of any auditor certification statements issued with a claim for cost reimbursement

16. 16 Thank You for Your Attention!