BEST 2.0 Financial Report Financial Reporting January 2017

Financial Reporting General Principles You are strongly advised to read the Financial Reporting Guidelines on the BEST 2.0 Portal Report on the basis of actually incurred costs (exc. indirect costs = % of eligible direct costs) Estimated amounts, or budgeted amounts are not acceptable Ensure that you have followed the BEST 2.0 Procurement Policy and Procedures In cases of single sourcing you may be asked to explain how you have ensured the best value for money, i.e. how you identified the most appropriate provider in terms of economic efficiency and professional capacity Costs must be supported by documentary evidence (see sections XI & XII - Financial Reporting Guidelines) Assign clear and consistent names to all files/documents: Reporting files – include project number; type of report (interim/final); version Example: SG1650 Interim Rep Final v.01 12.04.18 Scans of supporting documents – include reference to the budget line; type of document; amount Example: 1.1.2. pay slips J.Castle or 5.5.2. Translation 532€ invoice

Financial Reporting General Principles Costs can only be incurred after the start date of the grant agreement and before the end date of the grant agreement (Article 3 - Grant Agreement) Ex. 1: Grant start date is 01 October 2016. A computer for the project officer was purchased on 15 September 2016. The cost is not eligible. Ex. 2: The grant agreement end date is 30 September 2017. Staff worked on reporting in October 2017. The costs of staff during October 2017 are not eligible. Costs included in the report must be incurred (work completed/goods delivered) AND paid Financial report covers the period from 01 October 2016 to 30 September 2017 Ex. 1: Project brochures were printed and published on 20 September 2017. The cost can be reported if the invoice from the provider has been paid. Ex. 2: A contract for services was signed on 01 November 2016 and includes 3 deliverables with corresponding payments. By 30 September 2017 two deliverables were accepted, invoiced by the provider and paid. The financial report has to include the invoices for these two deliverables. It cannot include the final invoice for the last deliverable because it has not been either completed or paid. Reported costs must be related to the work/events that took place during the reporting period. If the cost is linked to a project activity not yet implemented, it has to be included in the next report. Ex. 1: Plane tickets or hotel for a workshop have been paid during the first reporting period but the workshop will be held during the second reporting period, i.e. the travel will take place in future. The cost of the tickets or prepaid hotel cannot be included and must be included in the next reporting period.

What Documents Need to Be Submitted? Submission Checklist What Documents Need to Be Submitted? INTERIM Report Transaction Listing (complete this document first) Transaction Listing tab Staff Costs table tab Financial Report Template (complete this using the figures from the transaction listing document) Interim report tab FINAL Report Transaction Listing (complete this document first) Transaction Listing tab Staff Costs table tab Financial Report Template (complete this using the figures from the transaction listing document) Final report sheet Final sources of funding tab Templates can be found on the BEST 2.0 Portal at the following link: https://portals.iucn.org/best/?q=content/useful-information-best-2-0-projects

Reporting Process Steps to Follow Prepare the transactions listing document: a list of direct costs and a staff costs table following the example and guidelines. Prepare the financial report. Submit draft copies of the transactions listing and financial report to your Regional Hub Officer and the BEST 2.0 Secretariat (BEST2.0secretariat@iucn.org) for an initial review. Incorporate any comments/edits/corrections into the reporting documents. Upload the revised versions of the reporting documents on BEST 2.0 portal. The reports will be reviewed by the BEST 2.0 auditors. The Secretariat will provide to you a list of auditors’ questions and a selection of costs to be justified by documentary evidence. Upload files with answers to auditors’ queries and scans of the supporting documents on BEST 2.0 portal. Once the auditors have approved the report upload the signed final version of the transactions listing and financial report on BEST 2.0 portal.

Transaction Listing Document Filling In the Transaction Listing Tab The transaction listing tab should include all transactions related to your BEST 2.0 project during the reporting period. Staff costs should not be included here; they are included on the ataff cost tab. Exchange rate for reporting If your organisation’s accounts are not in EUR. Use the exchange rate that was used when the pre-financing payment was recorded in your organisation’s account. If you incur costs in a different currency to that of your organisation’s accounts Convert the actual expenditure using the monthly InforEuro rate on the date of payment as published on: http://ec.europa.eu/budget/contracts_grants/info_contracts/inforeuro/index_en.cfm Use the budget line number and description from your approved budget Description of transactions should be comprehensible for someone not involved in the project This figure must match the total of direct costs in your report (excluding staff costs)

Filling In the Staff Costs Table Tab Transaction Listing Filling In the Staff Costs Table Tab 775 = Total hours worked on the BEST 2.0 project by the Project Manager (Employee X) in 2017 Use a separate row for each individual and for each calendar year Hours worked on the BEST 2.0 project as recorded in the individual’s timesheets

Filling In the Staff Costs Table Transaction Listing Filling In the Staff Costs Table Use a separate row for each individual and for each calendar year Use the unit from your approved BEST budget Annual Total Cost Employer Eligible elements that can be included: Salary or wages (gross incl. income taxes) Social security Other mandatory costs included in remuneration or included as a standard Human Resources policy of the organization (and can be proved by supporting documents) Example calculation: How to convert from hours to months? This figure should match the staff costs in your financial report For partial calendar years the real cost should be calculated for the months that fall in the reporting period.

Converting Hours on Timesheet to Months Hours to Months Converting Hours on Timesheet to Months Employee X: with an indefinite term contract Start date of project/reporting period : 1st March 2017 End date of project/reporting period : 28th February 2018 2017 2018 12 months Jan – Dec 2 months Jan - Feb Year 2017 Year 2018 Step 1: Calculate the total productive working hours (For 12 months Jan-Dec) 1,600 (For 2 months Jan-Feb) 320 Step 2: Take the total hours worked on the BEST project 750 200 Step 3: Calculate the average number of productive hours per month (Total productive hours (Step 1) / N° of months worked) 1,600 / 12 months = 133.33 320 / 2 months = 160 Step 4: Convert hours worked on the BEST project to months (N° of hours worked on the BEST project (Step 2) / Average number of productive working hours per month (Step 3)) 750 / 133.33 = 5.63 200 / 160 = 1.25 These figures must be taken from the completed timesheets. Forecasts, percentages or extrapolation is not acceptable. Productive working hours = the time actually spent working as recorded in timesheets (it will normally result in a different number of annual working time units for each employee and for each year). It shouldn’t include holidays actually taken, public holidays, flexitime compensation, weekends, sick leave, other paid absences (maternity leave etc.)

Financial Report Staff Cost Table Transaction Listing Financial Report Expenditure Unit # Units Unit Value (EUR) Total Cost (EUR) 1. Human Resources 1.1.1. Project Manager Per month 6.88 7,500 51,600.00 2. Travel 2.1.1 International Flights Per flight 3 863.33 2,590.00 2.1.4 Local Travel Per day 1 49 49.00

Financial Report Report Against the Units in Your Approved Budget Expenditure Unit # Units Unit Value (EUR) Total Cost (EUR) 3. Equipment and Supplies 3.3.1 Satellite Tags Per tag 10 1,600 16,000 Transaction Listing Transaction Date Budget Heading Reference Description of the Transaction Amount in EUR 15/02/2017 3.3.1 Satellite Tags Purchase of 10x satellite tags from tags’r’us 13,300 10/03/2017 Licence fee x10 tags 780 14/03/2017 Cost for freight of tags from UK 350 TOTAL for budget line 3.3.1 14,430 Cost per tag = €14,430 / n° tags purchased (10) = € 1,443 Financial Report Expenditure Unit # Units Unit Value (in EUR) Total Cost (in EUR) 3. Equipment and Supplies 3.3.1 Satellite Tags Per tag 10 1,443 14,430

To Check Before You Send/Upload Your Report Important Points To Check Before You Send/Upload Your Report The approved budget in the financial report columns B, C, D, E must be exactly the same as the budget in Attachment 1 to your grant agreement. The indirect costs should be included at the same rate (%) as in your approved budget. If the % is not shown in your approved budget you will need to calculate it. Budget Report 7. Subtotal direct eligible costs 95,500.00 € 47,365.50 € 8. Indirect costs 4.5% 4,297.50 € 2,131.45 € All relevant cells in the financial report must be completed including number of units and cost of unit. The total of each main heading in the financial report must be equal to the total of these headings in the transactions listing. The total of the financial report must be equal to the totals shown in the transactions listing tab + staff cost tab + indirect costs (overheads).

Pre-financing Payments Cash Flow Pre-financing Payments The total of pre-financing payments cannot exceed 90% of the BEST 2.0 contribution. The balance of funding i.e. 10% (if the budget is fully spent) will be disbursed after the approval final technical and financial report. To receive the full amount of pre-financing for the next reporting period you must have spent at least 70% of the previous payment Examples: With Co-funding (10%) No Co-funding Total Project Budget € 55,000 € 50,000 BEST 2.0 Contribution € 49,500 (90%) € 50,000 (100%) Maximum Pre-financing – 90% of BEST 2.0 Contribution € 44.550 € 45,000 Total Budget for Year 1 € 35,000 € 30,000 1st Pre-financing Received € 31,500 Required Expenditure to Request Further Pre-financing € 24,500 70% of Budget Yr 1 € 21,000 2nd Pre-financing (maximum pre-financing minus 1st Pre-financing € 44,550 – € 31,500 = € 13,050 € 45,000 – € 30,000 = € 15,000