SOUTH BALTIC CROSS-BORDER CO-OPERATION PROGRAMME 2007-2013 Introduction and overview on reporting in the South Baltic Programme By Igor Kaniecki, Project Manager, JTS Lead Beneficiary Seminar for projects approved in the 5th Call 9 -10 November 2010, Gdańsk / Poland 1 www.southbaltic.eu 1

1. Basics and levels of reporting Contents 1. Basics and levels of reporting 2. The reporting procedure step by step Timing of reporting and FLC tasks Tasks of the Lead Beneficiary www.southbaltic.eu

Reporting basics (1) Purpose of a Progress Report: Processing data on the project implementation for the certification of expenditures by the FLC claiming ERDF reimbursement from the South Baltic Programme (JTS / Managing Authority) project internal monitoring of the implementation process and the financial by the Lead Beneficiary > Format of the report is defined by the programme Compulsory templates are provided by the JTS www.southbaltic.eu

Reporting basics (2) Components of a Progress Report: Financial Report Item-based List of Expenditures (and revenues if relevant), Aggregated financial data required by the South Baltic Programme (e.g. 10% rule, eligible VAT, etc.) Activity Report Description of activities, outputs, results in the reporting period > basis for relating costs to implemented activities > gives information on outputs (= physical deliverables) Confirmation / First Level Control Certificate For the verification of the Progress Report by the FLC: original supporting documents (invoices, time sheets, etc.) proof of payments (pay slips, account data etc.) > requirements to be checked / agreed with the individual FLC www.southbaltic.eu

Project Progress Report Levels of reporting (1) JTS / MA Project Level (> Project Progress Report) (> voluntary FLC) FLC Project Progress Report Lead Beneficiary Partner Level (> Partner Progress Report) (> Shared Costs Template) (> compulsory FLC) FLC FLC FLC Partner PR Partner PR SCT LB PP 2 Impl. Partner www.southbaltic.eu

Levels of reporting (2) “Higher” level of reporting: Project level - Project Progress Report Compilation of project costs of all PPs To be prepared by the Lead Beneficiary to be submitted to JTS/MA as payment claim (FLC at project level not compulsory) > Reporting at project level is “organised” by the JTS Project Progress Report template to be used is sent out by the JTS to the LB in the end of each reporting period > It is pre-filled as far as possible by the JTS (e.g. with general project data, previously reported costs, valid exchange rates) > It is “automatised” as much as possible (to be introduced in detail in the later presentations) www.southbaltic.eu

Levels of reporting (3) “Lower” level of reporting: Partner level (= FLC level) Shared Costs Template(s) (> Implementing Partner) (necessary only in case costs sharing is applied) Account of shared costs and their attribution to the partners to be certified by (national) FLC of the Implementing Partner (compulsory!) Partner Progress Reports (> all project partners, incl. LB) Includes costs of only one PP (non-shared + shared costs), to be certified by (national) FLC of the PP (compulsory!), > Reporting at partner level is to be “organised” by the LB Compulsory templates are provided by the JTS to the LB The project-internal process (procedures, deadlines, contacts etc.) are to be shaped and monitored by the LB > Partnership agreements, instructions for Partners and permanent communication are important tools for this www.southbaltic.eu

The reporting process (1) JTS / MA Project Level (> Project Progress Report) (> voluntary FLC) FLC Project Progress Report Lead Beneficiary Partner Level (> Partner Progress Report) (> Shared Costs Template) (> compulsory FLC) FLC FLC FLC Partner PR Partner PR SCT LB PP 2 Impl. Partner www.southbaltic.eu

The reporting process (2) Parallel approach (e.g. in BSR Programme) FLC / certification at partner level FLC / certification at project level   Shared Costs Templates Project Progress Report Partner Progress Reports Sequential approach (no compulsory FLC at project level in SBP!) > FLC at partner level has to acknowledge shared costs of the Partner FLC / certification (implementing partner) FLC / certification at partner level (all PPs incl. LB) Shared Costs Templates Partner Progress Reports Project Progress Report www.southbaltic.eu

Reporting step by step (1) 1. Preparation of Shared Costs Template(s) (by the Implementing Partner(s), if relevant) Implementing Partner compiles the Shared Costs Template, i.e. reports and documents its costs paid on behalf of the partnership (> List of Expenditures, original supporting documents), calculates the shares of the Paying Partners on the basis of the cost sharing method (defined e.g. in the Partnership Agreement) FLC of Implementing Partner certifies the Shared Costs Template i.e. the costs paid by the Implementing Partner, plus their attribution to the Paying Partners > by issuing an “usual” FLC certificate The Implementing Partner sends the certified Shared Costs Template (incl. the original signed FLC certificate) to the LB who forwards a copy/scan of the document to all Paying Partners > Timing is important: certified Shared Costs Template to arrive at Paying Partners before they submit Partner Progress Report to their FLCs www.southbaltic.eu

Reporting step by step (2) 2. Preparation of the Partner Progress Reports (all PPs, incl. LB) - (Recommended: LB sends out pre-filled Partner PRs to each partner) Partner compiles Partner Progress Report, i.e. lists and documents its non-shared costs paid (> List of Expenditures, original supporting documents), includes its parts on the shared costs in the List of Expenditures (basis: previously certified Shared Costs Templates) provides further financial information (incl. receipt of ERDF) (Recommended: LB pre-checks Partner PR before FLC takes place) PP submits (pre-checked) Partner Progress Report to FLC FLC checks Partner Progress Report, i.e. certifies the non-shared costs of the Partner that have been paid, acknowledges the shared costs of the partner (on the basis of the previously certified Shared Costs Template) PP sends the certified Partner Progress Report (incl. the original signed FLC certificate) to the LB www.southbaltic.eu

Reporting step by step (3) 3. Compilation and submission of Project Progress Report (by the Lead Beneficiary) JTS sends out a pre-filled Project Progress Report template to the LB at the end of the reporting period LB compiles all costs / activities of all Partners on this template, based on the certified Partner Progress Reports received LB confirms the information provided in the Project Progress Report (Possible, but not compulsory: Project Progress Report is certified by the FLC of the LB) LB submits Project Progress Report to the JTS annex includes all original FLC Certificates of Partner Progress Reports and Shared Costs Templates www.southbaltic.eu

Reporting step by step (4) 4. Clarification process JTS checks the Project Progress Report LB receives a request for clarifications on the report from the JTS LB has to provide the clarifications within 10-15 working days > Further clarification “rounds” possible if answers unsatisfactory At the end end of the clarifications, the JTS asks the LB for corrections of the Project Progress Report new / corrected FLC Certificates (if necessary) LB submits corrected, signed documents to JTS JTS forwards PR to MA/CA/PA for initialising the reimbursement www.southbaltic.eu

Reporting step by step (5) 5. Reimbursement procedure JTS informs the LB about the acceptance of the Project Project Report and the initialisation of reimbursement (“Payment notification”) Paying Authority transfers the ERDF co-financing to the Lead Beneficiary Lead Beneficiary forwards the ERDF funds to the individual Partners according to their reported costs and claimed ERDF refund www.southbaltic.eu

Timing of reporting and FLC (1) Recommendation:   FLC / certification - only Implementing Partner(s) - only shared costs FLC / certification at partner level - all PPs incl. LB - certification of non-shared costs - acknowledgement of shared costs of each Partner Shared Costs Template Partner Progress Report Project Progress Report 10 calendar days 40 calendar days 20 calendar days End of reporting period < 70 calendar days > Deadline for submitting the Project Progress Report to the JTS www.southbaltic.eu

Timing of reporting and FLC (2) Regular reporting periods (6 months, fixed dates): 1 Jan – 30 June (> all costs paid / activities in this period to be included) Deadline for LB to submit the Project Progress Report: 9 Sept Shared costs: Compilation / certification in June / July Partner Progress Report: Compilation / certification in July / Aug Project Progress Report: Compilation / certification in Aug / Sept Clarification process: ~ Sept/Oct/Nov 1 July – 31 Dec Deadline for LB to submit the Project Progress Report: 11 March Shared costs: Compilation / certification in Dec / Jan Partner Progress Report: Compilation / certification in Jan / Feb Project Progress Report: Compilation / certification in Feb / March Clarification process: ~ March/April/May > Ensure the availability of LB, PPs and FLCs in these periods! www.southbaltic.eu

Timing of reporting and FLC (3) Exceptional reporting periods: 1st Progress Report: Start of the reporting period differs for cost categories Eligibility of implementation costs (components 1-5) starts with the official start date of the project defined in the Subsidy Contract (SC) Eligibility of preparation costs (component 0, if existing) starts 12 month before closure of call (4th call: 12 Jan 2009) End of reporting period is synchronised with “regular” periods ends with the first regular one after signing SC > In your case (probably): 31 Dec 2010 “Normal” reporting deadline is valid: > In your case: 9 March 2011 www.southbaltic.eu

Timing of reporting and FLC (4) Exceptional reporting periods (2): Final Progress Report: Start of reporting period is synchronised with “regular” periods starts with the regular one before the end date of the implementation period as defined in the Subsidy Contract End of the reporting period is project-specific and differs for cost categories Costs in components 2-5 are eligible only if paid before the official end date of the implementation period Costs in component 1 (management and coordination) can be paid also in the “closure phase” (> further 120 days) Individual reporting deadlines for each project Final PR has to be submitted within 120 days after the end date (instead of 70 days,so-called “closure phase”) www.southbaltic.eu

Tasks of the Lead Beneficiary (1) Setting up the reporting system within the project Creating a coordination unit for the process at project level Recruiting the (internal) project manager and / or financial manager Subcontracting of external project management and / or financial management Communicating the contacts / responsibilities to the Partners Settling the framework for Partners in the Partnership Agreements, i.e. Deadlines for submitting the Partner Progress Reports / Shared Costs Templates (if relevant) to the Lead Beneficiary Other obligations (e.g. Partner Progress Report is only accepted if pre-checked by Lead Beneficiary before FLC) Cost sharing provisions (if relevant) Detailed partner budget as annex > Tool for FLC at partner level and project internal monitoring > recommended: Partner / component / budget line / period www.southbaltic.eu

Tasks of the Lead Beneficiary (2) Assisting and monitoring the reporting process within the project Further informing and instructing the Partners: Drafting (short) guidelines on project internal reporting Word-file of Reporting Guidelines of JTS as a basis Detailed introduction to FLC and reporting at Kick-off meeting Regular updates / “trouble shooting” at project meetings Advice and help for individual Partners Pre-filling the Partner Progress Report templates as far as possible Pre-checking the Partner Progress Reports before FLC Establishing a “hotline” in case of problems in the “hot phases” Trust is good, control is better… Follow up on the process, contact your Partners pro-actively > If you leave your Partners alone, they will not manage! www.southbaltic.eu

Do you have any questions? www.southbaltic.eu

Thank you very much for your attention! www.southbaltic.eu