1. 1 SOUTH BALTIC CROSS-BORDER CO-OPERATION PROGRAMME 2007-2013 The Lead Beneficiary Principle revisited – specific issues of project management by Małgorzata Skolmowska, Project Manager, JTS Lead Beneficiary Seminar for projects approved in the 5 th Call 9 - 10 November 2010, Gdańsk / Poland www.southbaltic.eu

2. Contents -Detailed information on further issues of project management: -Partnership Agreements -Cost sharing -Templates: Partner Progress Report / Shares Costs Template(s) -Changing the project set up -Changes in the Programme documents -Delays in reporting -Repeating and deepening some mentioned issues: -Initiating the project / advice for the starting phase -Communication flows within the project -Communication with the JTS 2 www.southbaltic.eu

3. Partnership Agreement (1) -LB has to conclude Partnership Agreements with all PPs (compulsory) -Copies of signed originals to be submitted to JTS with 1 st Project PR -Important instrument for internal project management > might especially be needed if something goes wrong in the project (Partner or LB not fulfilling obligations, withdrawal of Partner etc.) -South Baltic Programme defined compulsory paragraphs, e.g. on -Obligations and rights of the Lead Beneficiary and Partners in terms of financial control, reporting and accounting -Reimbursement and recovery procedures -Resolution of conflicts in the partnership -Information and promotion (copyrights, use of EU logo etc.) -Sample / example template is available at www.southbaltic.euwww.southbaltic.eu -Compulsory paragraphs that must not be changed are marked -Can be otherwise adjusted to the specifics of your project (Word-file) 3 www.southbaltic.eu

4. Partnership Agreement (2) -Other important issue to include in the agreement (recommendations) -Division of thematic tasks and responsibilities among partners -e.g. based on section “Role of Partner” in the application -Cost sharing provisions -Detailed partner budgets (as annex) -Preferably: per Partner / reporting period / component / budget line > There are no detailed Partner budgets in the application! > Important tool for project management and orientation for FLC -Deadlines for submitting the Partner Progress Reports / Shared Costs Templates (if relevant) to the Lead Beneficiary -Other obligations in reporting, e.g. -templates to be used for Partner PRs, -obligatory pre-check of Partner PR by the LB before FLC > LB is free to include such provisions in the Partnership Agreements 4 www.southbaltic.eu

5. Partnership Agreement (3) -Preparing and concluding the Partnership Agreement -Problem: Partners often hesitate to start activities without > This can cause considerable delays in the starting phase -Communicate clearly to your Partner that activities and eligibility of costs can start before signing the Partnership Agreement -Preparation should start immediately after the approval -Start with the general concept / structure (asking your lawyer?) -Add the project-specific / partner-specific parts (e.g. role of Partner, detailed Partner budget) after the clarification process -Consider signing them before the Subsidy Contract -The template is designed in a way that the contract is valid only in case the Subsidy Contract was signed -The Partnership Agreement will then come automatically into force when signing the Subsidy Contract 5 www.southbaltic.eu

6. Cost sharing (1) -In what case is a Shared Costs Template required? -An item is paid by one partner (so-called “Implementing Partner”) -Later on divided among a number of partners (“Paying Partners”) > Many “common” costs can be divided among a number of partners without applying cost sharing, e.g. - PP 2 pays meeting venue, PP 3 pays catering, PP 4 pays lecturers -Who has to compile and certify the shared costs template? -Compilation: implementing partner -Certification: its (national) FLC -How can the problem of timing be solved? -Define a clear “target date” for the implementing partner in advance -Advise the Implementing Partner to prepare and certify the Shared Costs Template “off season” if possible -Example: only external expertise is shared > all payment can be done until 1 months before the end of reporting period 6 www.southbaltic.eu

7. Cost sharing (2) -What are possible cash flows among Partners? -Advance payments of paying partners to implementing partner (e.g. via project account) with adjustments after costs have incurred > advisable if liquidity / pre-financing capacity of LB is limited -Reimbursement of costs by paying partner after items have incurred -Withholding the shares of the paying partners from the ERDF reimbursement by the LB > advisable if liquidity / pre-financing capacity of some project partners are limited -Relation cash flows among partners / reporting > attribution of the items to reporting period by date of payment of Implementing Partner to third parties outside the partnership > financial flows among partners related to these items do not necessarily have to take place within the reporting period! 7 www.southbaltic.eu

8. Templates for Partner PR / SCT (1) -Compulsory reporting templates for -Partner Progress Report -Shared Costs Template > Samples (pdf-files) are available at www.southbaltic.euwww.southbaltic.eu > Excel-files to be sent by JTS directly to LB (not available on website) > to be forwarded by the LB to the Partners -Templates are constructed in view of -Considering all requirements of the South Baltic Programme, esp. -valid FLC certificate as integrated part -Collecting all data necessary for FLC and Project Progress Report -“easy transfer” of data to Project PR by copy/paste possible -Minimising “mechanical” mistakes -Automatic aggregation of data and currency conversion -Valid exchange rates are pre-filled by JTS -Further pre-filling of data by Lead Beneficiaries possible 8 www.southbaltic.eu

9. Templates for Partner PR / SCT (2) - Two versions of Shared Costs Templates available: -Template for “aggregated method” -useful if: -huge number of items is to be shared (> e.g. Staff costs / salaries of internal project manager) -huge number of Paying Partners -Template for “item-based method” -useful if: -small number of items is to be shared -(Partners with different VAT status share items with VAT) > Further / detailed information: -Reporting guidelines available at www.southbaltic.euwww.southbaltic.eu -Ask JTS for advice before choosing the appropriate sheet 9 www.southbaltic.eu

10. Changing the project set – up (1) 10 Different categories of changes: -Deviations -Minor changes -Major changes -Prolongation > require different procedures when they occur www.southbaltic.eu

11. Changing the project set – up (2) Deviations: -Budget reallocations between components and budget lines with a cumulative value up to 10% of total eligible project budget -Changes up to 20% of the original value of each target output or result indicator defined in the Application Form -Changes in contact or address data of key project staff > e.g. LB contact person, project manager, financial manager, FLC > Can be implemented without prior notification of the JTS > Information to JTS / MA with the regular Project Progress Report 11 www.southbaltic.eu

12. Changing the project set – up (3) Minor changes: -Changes in the timing of activities -Changes in the methods / ways of implementation > e.g. organizing seminars instead of workshops etc. > Require agreement of the JTS before they are implemented -i.e. e-mail, call to project manager > Afterwards: Information to JTS / MA with the next regular Project Progress Report (section “differences”) > No amendments of Subsidy Contract and/or Application Form necessary 12 www.southbaltic.eu

13. Changing the project set – up (4) Major changes -Budget reallocations between components and budget lines with a cumulative value above 10% of total eligible project budget -Changes above 20% of the original value of each target output or result indicator defined in the Application Form -Budget reallocations between Partners -Changes in the partnership -Changes in the legal status of Partner organisation > Are assessed case-by-case if justified > Budget reallocations: only once during the project life time > Require a decision of the Steering Committee > Subsidy Contract and/or Application Form to be amended 13 www.southbaltic.eu

14. Changing the project set – up (5) Prolongation -extending the implementation period of the project after its approval and signing the Subsidy Contract - Different procedures -Extension by up to 6 months, without changing ERDF grant > To be decided by the JTS -Longer extensions > Require consent of the Managing Authority -Changes to the ERDF grant > Require decision of the Steering Committee > Subsidy Contract and/or Application Form have to be amended 14 www.southbaltic.eu

15. Changing the project set – up (6) 15 Table 3. Eligible budget by budget line and component Preparation Component 1Component 2Component 3Component 4Component 5 Total per partner EUR% Staff Travel and accomodation Administration Investments / equipment External expertise + services TOTAL EUR % www.southbaltic.eu Budget reallocations (deviations / major changes): -Refer to / visible this table (AF, sheet “budget”, table 3) >Changes that are not visible in this table: - Your scope for financial management and “engineering”

16. Changing the project set – up (7) 16 www.southbaltic.eu Example calculation of “cumulative reallocation” -All changes between components and budget lines are summed up and put into relation to the total eligible budget of the project -Reallocated amount “counts double” if moved across budget lines and components

17. Changes in Programme Documents (1) -The procedures for programme and project implementation will be continuously further developed, especially in view of -absorbing changes in national and EU regulations, -incorporating lessons learned from the project and programme implementation -Result: Updated versions of programme documents, esp. -Programme Manual (updates at least with each Call for Proposals) -General Principles for FLC (usually once per year) -Reporting Guidelines / Templates (on demand) > The up-to-date version will be valid for the projects -Changes will be announced at www.southbaltic.eu (> news, FAQ)www.southbaltic.eu -The LB has to follow the changes and inform project partners -Programme Manual will be available with visible track changes, also a list describing the changes is published 17 www.southbaltic.eu

18. Changes in Programme Documents (2) Recent revisions of documents: -Programme Manual (published on 1 April 2010) -Most important changes related to project implementation, e.g. -Valid exchange rate for reporting > now EC monthly rate of first month of the given reporting period -Procedures for changing the project set up revised -Handling of the 10% rule clarified -ceiling for OH-cost flat rates decreased from 25% to 20% -Further explanations on calculating OH-cost flat rates -Methods for valuing voluntary work specified -General Principles on First Level Control (April 2010) -(Editorial) adjustment to 6-months reporting -Small changes in the FLC certificate (no more “in words”) -Otherwise no changes of the provisions / contents 18 www.southbaltic.eu

19. Delays in reporting What to do if you cannot deliver your Project Progress Report in time? -Contact the JTS in advance as soon as a delay seems inevitable -Search for solution case-by-case in dialogue LB-JTS -Options (if the delays are not caused by failures of the LB / Partners): -Prolongation of reporting deadline -Submitting Project Progress Reports without costs of delayed Partners -which can then be included in the next Project Progress Report > JTS decides on which option will have to be taken Main reasons: -Delays in the certification in centralised FLC systems -Insufficient preparation of reports and FLC at partner level -Advise and educate your partners -Pre-check Partner Progress Reports / Shared Costs Templates before they are given to FLC 19 www.southbaltic.eu

20. Initiating the project (1) 20 The LB has a lot of tasks in the starting phase of a project -Clarification process / fulfilling conditions / project redesign -Signing the Subsidy Contract and the Partnership Agreements -Starting the thematic work / defining the points of departure -Preparing and organising the Kick-off meeting...and even... -Getting an overview / familiarise with programme provisions -Setting up the project management / internal reporting -Advising Partners on bureaucratic demands >Thematic work stays most important (results are the goal!) > But: care about the administrative issues as soon as possible - preventing takes less efforts than repairing www.southbaltic.eu

21. 21 Initiating the project (2) JTS LB PARTNER FLC PARTNER FLC www.southbaltic.eu Crucial: Establish the desired communications flows within your project > fill the Lead Beneficiary role as soon as possible!

22. Initiating the project (3) 22 Our recommendation for you (how / timing): -Setting up project management as top priority -Recruit staff or external experts for this if necessary -Divide the tasks within the project management team -Educate yourself, ask the JTS in case of questions -Communicate the responsibilities / contacts to your Partners -Use the Kick-off for both thematic and administrative information -This is the best framework to reach all Partners -Invite not only the thematic leaders, but also the technical staff > Meeting face-to-face can ease all the processes! -Settle your partnership parallel to the clarification process > Your framework for administrative aspects of project management should be created and communicated until end of April > The sooner the Partners get orientation, the better for you! www.southbaltic.eu

23. Communication with the JTS You are responsible, but not left alone! -Each project has a steady advisor / first contact in the JTS: Igor Kaniecki DredgDikes, Art. Line, M.A.S.T. Robert Mazurkiewicz SB Global Access, Interface Plus Malgorzata Skolmowska WEBSR2 Upgrade, RES-Chains, RECReate Malgorzata Zdunek Baltic Museums 2.0 Plus, Moment Up > In case “your” project manager is not available, you will be guided to the respective stand-in person Use and make the most of your advisor! 23 www.southbaltic.eu

24. Do you have any further questions? 24 www.southbaltic.eu

25. Contacts If you have any further questions, please do not hesitate to contact the JTS project team: Igor Kaniecki: +48 58 746 38 58, igor.kaniecki@cpe.gov.pligor.kaniecki@cpe.gov.pl Robert Mazurkiewicz: +48 58 746 38 56 robert.mazurkiewicz@southbaltic.eu@southbaltic.eu Malgorzata Skolmowska : +48 58 746 38 57, malgorzata.skolmowska@southbaltic.eu malgorzata.skolmowska@southbaltic.eu Malgorzata Zdunek: +48 58 746 38 52, malgorzata.zdunek@southbaltic.eu malgorzata.zdunek@southbaltic.eu JTS (general): +48 58 761 00 30, southbaltic@southbaltic.eusouthbaltic@southbaltic.eu 25 www.southbaltic.eu