Ismar Financial report procedures

Ismar Financial reporting For each reporting period of activity Each partner shall produce a “Periodic Management Report” including: a detailed justification of costs incurred and of resources deployed, linking them to activities implemented and justifying their necessity financial statement per activity set out according to Form C (Annex VI to the Contract) duly signed by he authorised persons (person responsible for the work and financial officer) Cost incurred in currencies other than Euro (CNRST) shall be reported in Euro on the basis of the conversion rate as that would have been applied on the date that actual costs were incurred or the rate applicable on the first day of the month following the end of the reporting period.

Ismar Justification of major cost items and resources A brief description of the work performed by the contractor during the period. This should be addressed at the workpackage level, and the work specification should be detailed enough to justify the resources employed Explanatory note on any major cost items such as important equipment purchases, major travel costs, large consumable items etc., justifying their necessity to the project. A tabular overview of budgeted costs and actual costs, by contractor and by major cost item including personnel (Table 3). For AC contractors, a tabular overview of all resources employed on the project and a global estimate of all costs. A tabular overview of budgeted person-months and actual person- months, by workpackage (Table 4). The budgeted person-months should normally be taken from Annex I to the contract. For AC contractors, in addition estimate the number of person-months of permanent staff working on the project. A summary explanation of the impact of major deviations from cost budget and from person-month budget.

Ismar Periodic management report (PMR) 1 month before the end of the reporting period Aster will send to each partner (PIs and respective administrative referee) the following files: –A template in Word for PMR –A specific Excel file containing Table3 and Table4 for each partner The PMR reports together with financial tables filled in by the partners shall be sent to Aster and to the project coordinator (N. Zitellini) within 15 days after the end of the reporting

Ismar PMR check and validation Within 1 week after receiving the PMR, the coordinator will check the files and, if necessary, asks clarifications and/or integrations to the partners. The partners will provide any additional information or document as soon as possible, so that the final version of each PMR can be ready at latest 1 month after the end of the reporting period Any obstacle in respecting deadlines shall be notified immediately, and new deadlines agreed

Ismar FORM C preparation Once financial Table3 will be validated, Aster will send to each partner the respective Form C in electronic version (Excel file FC1) The partner shall check the Form C, fill in the remaining parts (Ex: names of signing person, etc) and sent it back to Aster (Excel file FC2) Aster makes a final check and send to the partner the Form C to be signed (Excel file FC3) The partner print the Form C, sign it, make a pdf to be sent by to Aster and send the doc BY COURIER to the coordinator N.Zitellini CNR-ISMAR via Gobetti 101, Bologna (ITALY)

Ismar Periodic reporting and interim payments Project Period X Submission periodic reports Advance payment (corrected) 80% of upcoming 18 months EC approval tXtX+1 45 days days

Ismar Interim payments conditions Contract Article 8.2 (d) Where less than 70% of a pre-financing has been used at the end of a reporting period, and notwithstanding the approval by the Commission of related reports, subsequent intermediate pre-financing may be paid only: On the basis of a complementary periodic management report that shall be submitted to the Commission once the 70% spending rate has been achieved For the Nearest second reporting period the 70% of the pre-financing for the project corresponds to Euro

Ismar Payment Scheme Expected EC contribution for semester 1 ( months 1-6)A Expected EC contribution for semester 2 ( months 7-12)B Expected EC contribution for semester 3 ( months 13-18)C Expected EC contribution for semester 4 ( months19-24)D Expected EC contribution for semester 5 ( months 25-30)E Expected EC contribution for semester 6 ( months 31-36)F Total Expected EC contribution for whole projectT=A+B+C+D+E+F Initial EC prefinancing ( start of the project)P0 = 0,8* (A+B+C) EC contribution approved for report 1( period 1: months1-12)G First intermediate EC prefinancing (after report1 if G>0,7*P0)P1 = 0,8*(C+D+E)+G-P0 EC contribution approved for report 2 (period 2: months 13-24)H Second intermediate EC prefinancing (after report2 if H>0,7*P1)P2 = 0,8*(E+F) + H - P1 EC contribution approved for report 3 (period 3,months )I Final payment ( if (G+H+I) < T)P3= (G+H+I)- (P0+P1+P2) Final payment ( if (G+H+I) > T)P3=T- (P0+P1+P2)

Ismar Final payment Final payment of the project (20% kept) is done when all the reporting obligation are completed and accepted by the Commission (Financial regulation ; Art 182) Remember that an audit certificate is requested at the end of the project