SECTOR SKILLS ALLIANCES TOURISM AND CATERING GRANT AGREEMENT NO. EAC PRESENTED BY DR SHYAM PATIAR

FINANCIAL MANAGEMENT

FINANCIAL MANAGEMENT IS BASED ON: LLP Project Handbook EACEA FAQ and Toolkit Recommendations from the EACEA General quality standards in EU project management Rules, frameworks agreed by the partnership

ELIGIBLE COSTS: Incurred by member organisations of the partnership and recorded in its accountancy Relate directly to the implementation of approved activities according to the work plan and are necessary for the execution of the project Must be foreseen in the estimated budget Activities must take place in countries eligible to the LLP Identifiable, verifiable, reasonable and justified (value for money) Generated during the projects lifetime (01 January 2013 to 31 December 2014) Properly reported and documented by the beneficiary

IN-ELIGIBLE COSTS: Costs outside of the eligibility period Costs which cannot be evidenced Exchange rate losses Return on capital VAT (unless it can be recovered) Costs already covered by other sources Excessive or reckless expenditure Opening and operating a bank account (transfer costs are eligible) Costs for products without correct EU logo and disclaimer Costs not timely recorded and paid

ELIGIBLE COSTS: 1.Direct costs: 1.1Staff 1.2Travel and subsistence 1.3Equipment 1.4Subcontracting 1.5Other costs 2.Indirect costs Total Budget

ELIGIBLE DIRECT COSTS: Definition: Statutory staff (permanent or temporary contract) Temporary staff, recruited through specialised agencies Legal representatives of organisations (owners, members of board etc.) Calculation: Real daily rates (according to national/institutional regulations, including social charges, holiday payments but NOT bonuses, incentives etc.) Must not exceed the daily rate ceiling of the EU STAFF

ELIGIBLE DIRECT COSTS: Justification: Official declarations Timesheets Official payrolls Proof of payment STAFF

ELIGIBLE DIRECT COSTS: Definition: Real travel costs of staff in connection with the project, provided most economical fares are used. Calculation: Real costs When using the car, the cheapest of the following ways: a)0.22 per km b)Price of bus, train, plane ticket for the same distance Justification: Copies of tickets/boarding passes, invoices/receipts, proof of payments TRAVEL

ELIGIBLE DIRECT COSTS: Definition: Subsistence costs for travelling staff in connection with the project covering meals, hotels and local travel Maximum eligible days (number of working days + 1) Calculation: Real costs (not exceeding ceilings of EU) Lump sums (not exceeding ceilings of EU) Declaration: Official declaration of way of calculation Proof of attendance Copies of invoices, receipts, bank transfer etc. SUBSISTENCE

ELIGIBLE DIRECT COSTS: Definition: Purchase, rent or lease of equipment (new or used), including installation, maintenance and insurance costs if needed for achieving the aims of the project Calculation: Costs have to be written off in accordance with the tax and accounting rules applicable to the beneficiary Only the portion of the equipments depreciation corresponding to the duration of the project and the rate of actual use. Declaration: Offers, invoices and proof of payment EQUIPMENT

ELIGIBLE DIRECT COSTS: Definition: Certain parts of the project carried out by an expert outside the partnership (e.g. translations, printing, evaluation etc.) Calculation: Real costs based on one offer (up to 12,500) 12, ,000 at least 3 tenders are required 25, ,000 at least 5 tenders are required For values over 60,000 national rules apply SUBCONTRACTING

ELIGIBLE DIRECT COSTS: Documentation: Subcontract (including project name, project number, duration and content of activity subcontracted, calculation of costs, signatures of all parties involved, date of signing) Invoice (including same issues as the subcontract) Tenders (if applicable) Proof of payment (copy of bank transfer) Note: subcontract costs are clearly dedicated to certain activities within the SSA-TC project – first of all, those activities have to be implemented before using this money for other activities. SUBCONTRACTING

ELIGIBLE DIRECT COSTS: Definition: All other direct costs, generally eligible and not covered by any of the categories above (travel costs for external experts, costs of conference/meeting organisation etc.) Calculation: Real costs Justification: Copies of invoices, receipts, offers etc. Proof of payment OTHER COSTS

INDIRECT COSTS: Definition: Costs not directly linked to the project but still necessary for its implementation such as: Administration (PCs, laptops etc.) Communication and infrastructure (telephone, internet, fax, rent etc.) Office supplies photocopies Calculation / Justification: Lump sum (max 7% of total budget) – no justification needed important: Only if beneficiary does not yet receive any operating EU grant

REPORTING: Issues of reporting: Content development Dissemination activities Documentation and justification of expenditures Means of reporting: Official formats of the LLP Declarations provided by the promoter (for staff costs, subsistence, time sheets, VAT declaration etc.) Certified copies of all invoices, receipts, contracts, tickets, boarding passes, bank transfers etc. Important: you are obliged to archive all originals for at least 5 years.

REPORTING DEADLINES: Report I (covering period – ) Report II (Interim Report) (covering period – ) Report III (covering period – ) Report IV (Final report) (covering period – )

CONTRACTUAL MATTERS AND CASH FLOW

CONTRACT MATTERS AND CASH FLOW: 1.Contract between EACEA and beneficiary 2.Payment of first instalment from EACEA to beneficiary 3.Partner contracts with beneficiary 4.Payment of first instalment (20% of funds) to partners 5.Report I ( ) 6.Payment of second instalment (20% of funds) to partners 7.Report II - interim report ( ) 8.Approval of interim report and payment of third instalment (20% of funds) to partners 9.Report III ( ) 10.Payment of fourth instalment (20% of funds) to partners 11.Report IV - final report ( ) 12.Approval of final report and payment of fifth instalment (20% of funds) to partners

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