1. Find The Best Project Kick off Meeting Krakow 10 th -11 st of January Project with the support of the Lifelong Learning Programme of the European Union

2. Financial and reporting rules Project handbook – Guidelines for Administrative and Financial Manageement and Reporting Project handbook Financial Information Kit

3. Reporting to EACEA Progress report: at the mid-term point of a project, the assessment of the reports enables the Agency to take a decision on the continuation of the project, Final report: after the formal end of the project allowing the project to be reported on and evaluated in its entirety, a verification of the measures taken to guarantee the successful dissemination and exploitation of the project's results and products.

4. Project reporting – deadlines for submission to EACEA Project start 01.01.2012 Progress report 31.07.2014 Project end 31.12.2015 Final report 29.02.2016

5. Reporting period Progress Report runs from the start date of the project until one month prior to the submission date of the report. (01.01.2013-30.06.2014) The financial analysis of the project's expenses will be done only at the submission of the Final Report. Progress Report leads to the payment of a further pre- financing, it does not settle the accounts and the payment is considered as a pre-financing/advance payment. Final Report - the reporting period covers the entire project duration and the submission date falls two months after the end of the project.

6. Structure of the Report Two parts: Public Part, including an Executive Summary - contains the description of the project's objectives and results, presented against the work programme, how they were achieved, how they will be exploited and how they contribute to EU policies. Confidential Part - information about the management of the project, the contract and the finances.

7. Public Part 1. Project Objectives; 2. Project Approach; 3. Project outcomes & results; 4. Partnerships; 5. Plans for the future – differents: Progress Report includes a description of plans to carry out the remaining work to achieve the project objectives; Final Report includes emphasise the exploitation of results beyond the project's lifetime. Sustainability of the project's outcomes is a key element of this section ; 6. Contribution to EU policies.

8. Confidential Part 1.Declaration Page - delete 2 lines related with other report and in Progress Report text referring to requests of payments; 2.Outcomes / Results / Products; 3.Implementation of the work programme / tasks; 4.Impact; 5.Involvement of Partners; 6.Involvement of Staff; 7.Management Aspects; 8.Dissemination & Exploitation; 9.Annex 1 Financial Reporting table.

9. Internal reporting WP REPORT To be prepared by the responsible Partner and sent to all Partners 2 weeks after finishing WP FINANCIAL REPORT To be prepared by each Partner and sent to P1 Twice a year – covering half year period Financial tables and scanned versions of supporting documents (originals or copies covering whole project period only with the last financial report after project completion) DISSEMINATION REPORT To be prepared by P6 on the basis of info collected from partners and sent to P1 Twice a year – covering half year period Proofs of realization INTERIM AND FINAL REPORT Supplementary information to the above mentioned reports By 10th July 2014 (interim) and by 20th January (2016)

10. Financial rules General crirteria of expenditures: they must be connected with the project, necessary for the execution, generated during the contractual lifetime of the project, actually incurred by the beneficiary (requirements of the applicable tax and social legislation), foreseen in the estimate overall budget, reasonable and justified, accordant with the principles of sound financial management.

11. Not eligible costs: return on capital; debt and debt service charges; provisions for losses or potential future liabilities; interest owed; doubtful debts; exchange losses; VAT, unless the beneficiary organisation can prove that it is unable to recover it; costs declared by the beneficiary and covered by another project or work programme receiving a European Union grant; excessive or reckless expenditure.

12. Attention! Beneficiaries should consider using project- dedicated, specific bank accounts or sub-accounts; Supporting documents and records must remain at the beneficiary premises for a period of five years after the final balance of the grant has been paid; The Agency must be informed of important changes to the agreement (workplan, budget) in good time and in writing in order to agree or not before these changes take effect.

13. Exchange rate Costs should be presented in EUROs Any conversion of actual costs into euros shall be made by the beneficiary at the montly accounting rate established by the commission and published on its website http://ec.europa.eu/budget/inforeuro for the first month of the period of eligibility of costs http://ec.europa.eu/budget/inforeuro

14. Necessary documents All expenditures must be supported by adequate supporting accounting documents! All documents relating to the project should be organised from the start of the project and all accounting documents should be duly classified. Documents should have description, confirming their connection with the projects; if it is in other language than English – short translation of most important info is required Scanned documents should be sent to coordinator with internal financial report every 6 months The beneficiary must keep all supporting documents relating to the project no matter which partner incurred the costs (5 years). Unjustified costs will not be considered as eligible by the Agency nor by the auditors All documents required by auditors you will find in: Financial Informatoin Kit – Annex 1 to Factsheet 08 ChecklistFinancial Informatoin Kit

15. Example of description Document related to the project: „Find the best – competency-based recruitment in public administration” Lifelong Learning Program Leonardo da Vinci - DOI Grant agreement number: 2012 – 3594 / 001 - 001 Project number: 526958-LLP-1-2012-1-PL-LEONARDO-LMP According to project application, document refers to budget line: …………………………………………… Eligible cost: ………………..( …………. €) Description: Exchange rate used for calculation of cost in EURO: 1 EUR= …………………………… date signature

16. Categories of Eligible Direct Costs: Staff; Travel and Subsistence; Equipment costs; Subcontracting costs; Other Costs.

17. Staff „The direct cost of staff assigned to the action, comprising actual salaries plus social security charges and other statutory costs included in the remuneration, provided that this does not exceed the average rates corresponding to the beneficiary’s usual policy on remuneration.” Proper calculation of pay and compliance with national social security and related rules; Adequate staff contracting – statutory staff Adequate systems to allocate staff costs to projects; Adequate control of attendance; Sound remuneration practices.

18. Staff – supporting documents Documents explaining internal policy on salaries, calculation of the daily cost rate,calculation of the daily cost rate Timesheets signed by worker and legal representative (if not used in your organization – use Time-sheet form in staff cost documentation file)staff cost documentation file Payroll (if not total amount of salary is related to the project, the payroll should be described approprietly) Proof that salaries and social security contribution recorded in the accountancy have been paid by the partner to the authorities Personnel register* Fiscal declaration of annual salary when applicable* Description of the work performed by each person* * Documents required by auditors (information taken from Financial Information Kit)Financial Information Kit

19. Travel and subsistance They are necessary, identifiable and verifiable from corresponding financial statements and accounting records. They are reasonable, justified, related to the project. Subsistence costs for staff taking part in the project are eligible under this budget heading. Reimbursmement of travel costs based on the real costs Private car travel -will be reimbursed as follows: - either a rate per km in accordance with the internal rules of the organisation concerned up to a max of EUR 0.22; - or price of a rail, bus or plane ticket. Only one ticket shall be reimbursed, independently of the number of people travelling in the same vehicle. Hired cars – eligible provided that the cost is lower in comparison to other means

20. Travel and subsistance 2 Subsistence costs are reimbursed according to internal organization’s rules (actual costs or daily allowances) Costs cannot exceed maximum rates defined for the country of destination (http://ec.europa.eu/education/llp/dochttp://ec.europa.eu/education/llp/doc Proof of attendance and overnight accomodation is required Subsistence costs cover accommodation, meals and local travel costs Maximum number of days that can be claimed is the number of working days + 1

21. Travel nad subsistence - documents tickets (plane, train, bus, etc.) and invoices (hotels, restaurants, travel agency); boarding pass; for car journeys: declaration stating the city of departure and arrival, the calculation method with unit rate and number of units, dates and names and activities concerned; list of participants duly signed with clear identification of the activity/purpose of the trip, dates, names and functions of the participants in the project (e.g. partner, expert, volunteer, subcontractor); proof that the payments have been made by the partner and are recorded in the accountancy; hotel bills; internal rules defined for the staff of the organisation travelling, etc.

22. Travel nad subsistence - documents Details of the per diems claimed (including dates and purposes of visits) Details of the per diems claimed Travel request form (including information on the reason for travel)* Travel expence claim form used in organization (declaration of all proofs of actual travel expenses)* Proof of usual remuneration policy* / Declaration of calculation of subsistence costs according to internal rules of organizationDeclaration of calculation of subsistence costs * Financial information Kit

23. Equipment costs Not applicable in FTB project

24. Subcontracting costs The total reported costs for subcontracting may not exceed 30% of the total eligible direct costs of the project. Related to contracts awarded to external body Estimate offer covers all costs Avoid of conflict of interests Reporting travel and subsistence costs of subcontractors should be classified to the subcontracting fees. Contracting procedure: – < 12500 EUR – presentation of invoice – 12500 – 25 000 EUR – three tenderers – 25 000 – 60 000 – five tenderers – > 60 000 – public procurement procedure

25. Subcontracting costs – supporting documents Terms of reference, request for quotation with reference to the project, activity and deadline Quotation received Evaluation committee’s report Award decisions Proof of payments Original invoices* Contracts and documentation related to tenders* Description of the work performed by third party staff*

26. Other Costs Costs arising directly, which are not covered by the other categories, but they are specific and necessary for achieving the goals of the project, e.g.: one-off costs for press releases and publicity, purchase of copyrights and other Intellectual Property Rights, purchase of information materials, conference fees; meeting registration costs; rental of exhibition space, etc. Supporting documents Contracts, invoices Proof of payments

27. Indirect costs (overheads) Those costs which, are not identifiable as specific costs directly linked to performance of the project which can be recorded in the project's accounts, but which have nevertheless been incurred in connection with the eligible direct costs for the project. – Equipment related to administration – Communication costs (postage, fax, telephone, internet etc.) – Infrastructure costs – Office supplies – photocopies Maximum of 2,9 % of the total amount of eligible direct costs. Rental agreements supporting office space claimed for, invoides suporting office supply costs claimed* Telephone infoices claimed for* Invoices an calculations supporting expenses claimed * Docs that might be required by the auditor – Financial Information Kit

28. Rejection of the costs The most frequent reasons are: The lack of supporting documents relating to expenses claimed or relating documents and materials do not state the EU logo; Ineligibility of costs: unforeseen costs for which no prior authorisation has been requested to the Agency, overhead expenditure exceeding the maximum ceiling, contribution in kind claimed, costs incurred outside the eligibility period; The non respect of accommodation/subsistence EU rates, the wrong application of exchange rates, depreciation error, recalculation of overheads due to ineligible costs, reclassification of costs between headings/categories, dual claiming and declared expenses exceeding real costs; Inadequate audit trail: missing papers or electronic trail that gives a step by step documented history of a transaction.

29. What can go wrong? Reporting travel and subsistence costs that do not relate and/or are unnecessary for the project. Insufficient supporting documents. Use of incorrect scales or when travel and subsistence allowances are higher than EC maximum ceilings. Usual remuneration policy should be used. Not recording costs in the accounting system. Misuse or uneconomic use of transport e.g. first class airfares

30. Thank you for attention!