DG DEVCO, Unit B.6 Brussels, November

Outline 1.Useful links 2.General conditions 3.General issues 2

Useful links PRAG ns.dohttp://ec.europa.eu/europeaid/prag/previousVersio ns.do Tool kit ancial-management-toolkit-for-recipients _en.pdfhttp://ec.europa.eu/europeaid/sites/devco/files/fin ancial-management-toolkit-for-recipients _en.pdf 3

Useful links Exchange rates contracts/inforeuro/inforeuro_en.cfmhttp://ec.europa.eu/budget/contracts_grants/info_ contracts/inforeuro/inforeuro_en.cfm Per diem plementation/per_diems/documents/perdiems_july _2013.pdfhttp://ec.europa.eu/europeaid/work/procedures/im plementation/per_diems/documents/perdiems_july _2013.pdf 4

General conditions  General obligations: Art.1 ─ Art.8 partners, subgranting, data protection, liability, conflict of interests, confidenciality and visibility ( remember to include the EU logo) and ownerships use of reports and assets  Implementation: addendum,(budget, extension…) Changes in address, bank account, auditor Suspension, force majeure, termination Presentation reports 5

Report presentation ( Article 2.3 of General Conditions) The final report should be sent no later than three months after the implementation The deadline is extended to six months when the Beneficiary does not have its headquarters in the country where the Action is implemented. In case of interim report you have to present:  Request for payment  Interim report  Financial report  If applicable expenditure verification report, if not a list detailing expenditure incurred For the final report the same as above and in addition AUDIT REPORT Art. 2.5 If the beneficiary fails to provide an interim or final report in time, without explanation, the EC may terminate the contract 6

Some Financial Provisions  Art. 14: eligible and non eligible costs  Art. 16: accounts and financial checks  Art. 16.3: other documents to be kept  Ar.17: final payment 7

General Issues  Payment request  70% rule  General issues 8

Payment request: Annex V  USE templates  Original document (NO photocopies)  Same bank account as indicated in contract  Same address as indicated in contract 9

Payment request Final report  Don’t forget to put interest awarded  Audit report  USE templates  Original document (NO photocopies) 10

70% rule Calculation method:  Expenditure incurred has to take into account the EC contribution  For previous payment at least 70% of expenditure is to be incurred  For any other previous payment 100%  In case of non compliance it will be paid the difference between the 70% and the amount actually incurred 11

Procurement: Rules of nationality and origin  Contractor must present a proof of origin to the beneficiary before the presentation of the first invoice  The Contracting Authority (beneficiary) is obliged to check the existence of the a certificate of origin  Exception to the rule: Derogations  Should be decide case by case by EC and may be justified:  Unavailability of products and services  Reasons of extreme urgency  Eligibility Rules make action impossible or exceedingly difficult In case of non compliance with the rules the EC could recover all the grants of all procurements contracts. 12

Clarification of issues VAT Two cumulative conditions to consider VAT as eligible 1.Beneficiary should demonstrate that he could not recover VAT 2.If it´s not excluded by the conditions of the programme Means to demonstrate the non recoverability of the VAT An official document (declaration or a refused claim for reimbursement) by the competent tax authority and extract of the relevant law are some examples. 13

Staff Art of GC“… actual gross salaries and costs must not exceed those normally borne by the Beneficiary or its partners,” Art Staff and payroll records such as contracts, salary statements, time sheets. For local staff recruited on fixed-term contracts, details of remuneration paid, duly substantiated by the person in charge locally, broken down into gross salary, social security charges, insurance and net salary. As per Article 10 of the General Conditions, if your organization or a partner has to conclude implementation contracts with contractors in order to carry out the Action, shall respect the contract-award procedures and rules of nationality and origin set out in Annex IV of this Contract. These are not considered Staff members and they are disclosed in point 5 of Budget All this will be checked by the auditor Clarification of issues 14

Clarification of issues Travel Follows principle of sound financial management, no business tickets, travels within Europe are international trips Per diems Cover accommodation, meals, local travel within the place of mission and sundry expenses paid only in case of overnight stay. Contingency Art of GC : A contingency reserve not exceeding 5 % of the direct eligible costs may be included in the Budget of the Action. The contingency reserve cannot be used to solve financial mismanagement and with prior written authorisation of Contracting Authority 15

Clarification of issues Exchange rate (Articles and 15.8 of the General Conditions) Any conversion into euro of the real costs borne in other currencies shall be done at the rate made up by the average of the rates published in InforEuro for the months covered by the relevant report, unless otherwise provided in the Special Conditions. The currency exchange losses costs shall not be considered eligible Exchange gains will be treated as a profit and deducted from EU contribution. 16

Conclusions Be in permanent contact with your Task Manager Complete reports before submission Plan procurement well in advance so as to limit the risk of irregularities. Rules are easier than people normally believes A simple could have important value for an smooth treatment of your file All your questions are addressed in your contract 17

Thank for your attention 18