1. Administrative and financial management, monitoring and reporting
GRANTS
Administrative and financial management, monitoring and reporting
Call for Proposals GR/001/15
Support for awareness raising activities about the value of Intellectual Property and the damages of counterfeiting and piracy

2. https://oami.europa.eu/ohimportal/en/grants
19/05/2018
CALL FOR PROPOSALS
USUAL MISTAKES TO AVOID
The result of the Call for proposals GR/001/15 is
11 selected projects
The list of selected projects has been published on the website
All grant agreements have been signed by signed between the 19/08/2015 and the 14/09/2015.
The pre-financing payment, representing 70 % of the grant amount, has been paid to all beneficiaries within 30 days of the date of signature by the Office.

3. The Grant Agreement contain key data such as:
19/05/2018
GRANT AGREEMENT
WHICH PROCEDURES TO USE?
The Grant Agreement contain key data such as:
Eligibility period of expenses (Article I.2)
Eligible budget (Annex III)
Maximum grant and maximum rate of co-financing expressed in %(Article I.3)
Payment arrangements and reporting obligations(Article I.4)
Administrative and bank details (Article I.5 & I.6)
Publicity obligations (Article I.11)
General conditions (Annex II)
A number of problems may arise in the course of implementing a grant for which most of these are already covered by the specific & general conditions.

4. 19/05/2018
FUNDING SYSTEMS
TYPES OF CONTRACTS
Budget Based
Definition: reimbursement of actual eligible costs for the categories of costs indicated in Annex III
Budget based grants are calculated on the basis of a detailed estimated budget of eligible costs (Annex III). This annex is the result of a financial analysis of the financial proposal in the grant application.
The calculation of the final grant amount by the Office is based on a detailed final financial statement of the beneficiary (Final reporting).

5. 19/05/2018
PARTNERS
TYPES OF CONTRACTS
Partners are considered as other beneficiaries and are jointly and severally responsible for carrying out the action in accordance with the terms and conditions of the Grant Agreement.
Arrangements that may have been agreed between the lead beneficiary and the other beneficiaries are not relevant for the Office, provided they exist and are compliant with the grant Agreement;
supporting documentation from all partners could be inspected. It is the responsibility of the beneficiary to obtain documentation from all project partners. It is suggested that each partner keeps its own originals and register the transaction in its accountancy and that a full set of certified copies of all justifying documents should be given to the lead beneficiary;
Costs incurred by all partners must be compliant with the cost eligibility conditions set out in the grant agreement.

6. • assessment of the work carried out and reported by the project;
19/05/2018
MONITORING
USUAL MISTAKES TO AVOID
Regular follow-up with the beneficiaries through and by phone will be undertaken by the Office, the monitoring activity may be performed in one or more ways:
• assessment of the work carried out and reported by the project;
• an in situ visit to the beneficiary organisation can take place at any time during the lifetime of the project or to participate in a project event/meeting;
• the Office may organise a meeting with the key people on your project.
The main objectives are to verify the status of the project's implementation; how well the project is being managed and to provide with support and guidance.

7. VISIBILITY OBLIGATION
19/05/2018
VISIBILITY OBLIGATION
USUAL MISTAKES TO AVOID
Any communication or publication related to the action, made by the beneficiary, including at conferences, seminars or in any information or promotional materials (such as brochures, leaflets, posters, presentations, etc.), shall indicate that the action has received funding from the Office and shall display the Office’s logo according the visibility guidelines.
Remind that failure to acknowledge the OHIM funding may lead to the costs related to a particular activity being declared ineligible!

8. Must be approved by the Office and subject of a written amendment
19/05/2018
AMENDMENT (1/3)
USUAL MISTAKES TO AVOID
The principle:
As a project is not something static, it is understandable that certain aspects may change in comparison to what was initially foreseen in the project application. To this purpose, beneficiaries may submit a written request for amendment to the Office as far as the changes to be introduced will not modify the project co-financed in any substantial way.
Must be approved by the Office and subject of a written amendment
EXCEPTION : Adjustment in the eligible budget can be accepted without written amendment and approval if they do not exceed 10% of the amount of each item of estimated eligible costs for which the transfer is intended.

9. Time extension, to be requested before the deadline set in agreement;
19/05/2018
AMENDMENT (2/3)
USUAL MISTAKES TO AVOID
Examples:
Budget variations above the 10% limit of the estimated eligible costs (transfers below 10% do not need to be notified), but not applicable to indirect costs (fixed %);
Time extension, to be requested before the deadline set in agreement;
Change of partner (addition, termination, withdrawal of participation);
Modification of the foreseen activities, without altering main concept;
New bank account and/or change in the beneficiary organisation, with submission of a new 3rd party;
Change of legal representative (supporting official document needed).

10. REMIND: The grant amount cannot be modified
19/05/2018
AMENDMENT (3/3)
USUAL MISTAKES TO AVOID
Example:
Travel costs in eligible budget (Annex III of the grant agreement) = €10.000
You want to modify the structure of your budget because Travel costs were
underestimated and in order to balance this change you decide to reduce Staff costs item. You have to proceed as follows:
increasing your Travel costs item from € up to € (more than 10%)
decreasing your Staff costs item from € up to €.
Therefore an amendment is NECESSARY.
REMIND: The grant amount cannot be modified

11. Supporting documents/evidences (Invoices).
19/05/2018
FINAL REPORTING
USUAL MISTAKES TO AVOID
The Final Reporting is a crucial phase of the project since it allows a review and qualitative and quantitative assessment of the following parts:
Activity report: the products and results achieved, relative to the aims (as regards activities/products) stated in the Application;
Financial statement: the costs incurred in order to achieve these results, compared with the Approved Budget;
Supporting documents/evidences (Invoices).
To be submitted within 2 months following the end of the eligibility period
Forms will be available on line from the website:

12. SUPPORTING DOCUMENT/EVIDENCE
19/05/2018
SUPPORTING DOCUMENT/EVIDENCE
USUAL MISTAKES TO AVOID
According to the costs reported in the Financial statement, copies of the following supporting documents/invoices must be provided by budget category:
The highest value subcontracted;
The most expensive travel realised during the project;
The highest type of Staff costs.
Supporting documents must clearly identify the project reference in order to relate with the costs reported.

13. Decision on the final evaluation and the final grant amount;
19/05/2018
PROCESSING THE REPORT
USUAL MISTAKES TO AVOID
Submission: report must reach the Office not later than the date appearing on the agreement;
Eligibility check (e.g. signed by the Legal Representative, all requested documentation provided…);
Analysis of the Report (assessment criteria related to content and financial);
Request for supplementary information on content or financial matters if necessary;
Decision on the final evaluation and the final grant amount;
Closure letter notified to the beneficiary: feedback on the decision of the final grant and feedback on the project's achievements including recommendations.

14. ASSESSMENT CRITERIA OF THE REPORT
19/05/2018
ASSESSMENT CRITERIA OF THE REPORT
USUAL MISTAKES TO AVOID
Are results/outcomes available
Are they in accordance with aims as in original application and relevant KPIs identified
Objectives, results, products
Are activities in accordance with the project’s work plan of the original application
Have variations been justified
Coherence between work plan and activities carried out to date
Mechanisms used for effective monitoring
Are decision making and problem solving adequate
Internal communication strategy (video conferencing, etc..)
Project management
Are expenditures in line with project’s activities and the rules of eligibility
Determination of the final grant amount
Financial management
What is the quality of dissemination activities do they start from the beginning
How the issue of exploitation of project’s results is addressed
What is the measured opportunities for sustainability of the project
Dissemination and sustainability

15. ELIGIBILITY OF COSTS (1/3)
19/05/2018
ELIGIBILITY OF COSTS (1/3)
USUAL MISTAKES TO AVOID
To be considered as eligible costs of the project, the general criteria are:
Foreseen in budget & directly linked to the performance of the project
Generated during the life time of the project & reasonable and justified
Actually incurred by the beneficiaries, recorded in the accounts in accordance with applicable accounting principles & declared in accordance with requirements of tax and social legislation
Be identifiable and verifiable & allow reconciliation between accounts and supporting documents
Non-deductible VAT is eligible as expenditure

16. ELIGIBILITY OF COSTS (2/3)
19/05/2018
ELIGIBILITY OF COSTS (2/3)
USUAL MISTAKES TO AVOID
Most frequent/significant errors to consider costs NOT ELIGIBLE :
Missing or inadequate supporting documentation
Staff costs (e.g. timesheets/payslips)
Missing supporting documents from partners
Travel and subsistence costs (e.g. boarding passes)
Costs claimed exceeding budget heading limits (10% transfer) or subsistence rates and indirect cost ceiling (7% of total direct costs)
Non-compliance (not related to project, outside eligibility period, not incurred)
Proper documentation, respect of ceilings & limits and compliance are key success factors for financial management!
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17. ELIGIBILITY OF COSTS (3/3)
19/05/2018
ELIGIBILITY OF COSTS (3/3)
USUAL MISTAKES TO AVOID
Beneficiaries are encouraged
to use timesheet system for time management
to keep sufficient documentation showing compliance with national social and tax legislations
to inform staff of the start and end dates of the project implementation period, which is the only period during which they may work on the project. Retroactive costs will not be accepted
to consider that the amounts published by the Office for subsistence are the maximum sums eligible. The cheapest transport must be used (no first class).
to apply the national rule concerning depreciation
to keep all necessary supporting documents, in particular when procurement procedures were used
to ensure that supporting documents must be easily linkable with project expenditures

18. FINANCIAL ANALYSIS (1/2)
19/05/2018
FINANCIAL ANALYSIS (1/2)
USUAL MISTAKES TO AVOID
The Final Report analysis
Total expenditures = total revenues (i.e. sources of financing)
All expenditures considered not eligible by nature or limited by the application of ceilings & rates will be deducted from the declared expenditures in the report, in order to calculate the total eligible costs of the project.
Example: The non-respect of accommodation/subsistence rates, the wrong application of exchange rates, depreciation error, recalculation of indirect costs due to ineligible costs…

19. FINANCIAL ANALYSIS (2/2)
19/05/2018
FINANCIAL ANALYSIS (2/2)
USUAL MISTAKES TO AVOID
Determination of the final grant amount
- by applying the co-financing percentage to the total eligible costs obtained
- limited to the maximum grant amount stated in the agreement
Deduct pre-financing payments from the final grant amount obtained
Final grant amount > pre-financing payment  FINAL PAYMENT
Final grant amount < pre-financing payment  RECOVERY ORDER

20. EXAMPLE OF FINANCIAL ANALYSIS
19/05/2018
EXAMPLE OF FINANCIAL ANALYSIS
USUAL MISTAKES TO AVOID
Initial budget of eligible costs : €50.000
Rate of co-financing of eligible costs: 80%
Maximum grant : €40.000
Pre-financing : 70% of the grant amount = €28.000
Reporting
Final eligible costs = €50.000
After analysis & correction: (€ of not eligible costs) €40.000
Determination of the final Grant
Max grant : €40.000
Max on basis of the co-financing rate=80% x€ = €32.000
Lower of calculation of the 2 figures => €32.000
The amount to be paid by the Office will be = = €4.000

21. 19/05/2018
NOTIFICATION & APPEAL
USUAL MISTAKES TO AVOID
In case of final payment, the Office will inform through a closure letter the Beneficiary of the result of the evaluation and the amount that will be paid. In case of recovery order, a pre-information letter is sent to the Beneficiary of the result of the evaluation, the amount and the reason(s) for the amount to be recovered giving a reasonable period to react.
The Beneficiary may appeal within 60 days from the notification on the final grant calculated, either if the result is a payment or a recovery. In his appeal, justification and/or evidence on the expenditures considered not eligible must be provided.
In case of appeal, the Office will inform the Beneficiary of the result through a closure letter after appeal.

22. 19/05/2018
CHECKS AND AUDITS (1/3)
USUAL MISTAKES TO AVOID
Project may be selected either based on a risk analysis made by the Office or chosen randomly, for an ex-post audit carried out either directly by its own staff or by any other outside body authorised to do so on its behalf.
The European Anti Fraud Office (OLAF) may also carry out on the spot checks and inspections.
For this reason, the Beneficiaries shall keep at the Office’s disposal all original documents (or, in exceptional and duly justified cases, certified copies of original documents), accounting and tax records relating to the agreement for a period of 5 years from the date of payment of the balance/debit note.

23. Project documentation should prove that the costs were incurred.
19/05/2018
CHECKS AND AUDITS (2/3)
USUAL MISTAKES TO AVOID
Project documentation should prove that the costs were incurred.
Keeping originals is compulsory and is more reliable than a copy.
Example of original documents to be kept:
Staff costs: pay slips and time sheets, employment contracts;
Travel and subsistence: (e-)tickets, (e-)boarding pass, minutes of meetings, travel agency invoices, signed receipts by travelling staff receiving an allowance;
Equipment costs: invoices, proof that procurement rules were complied with;
Subcontracting costs: invoices, proof that procurement rules were complied with (invitation to submit an offer, offers received, minutes of evaluation/selection of the best offer).

24. Most frequent/significant errors in ex-post
19/05/2018
CHECKS AND AUDITS (3/3)
USUAL MISTAKES TO AVOID
Most frequent/significant errors in ex-post
Time reported by staff on timesheets is unreliable
Actual costs are not correctly supported with appropriate documentation.
Documents kept do not provide sufficient evidence that contractual conditions have been met
The relevant accounting rules are not obeyed
The relevant social security rules and/or the relevant national employment or tax legislation are not respected
Incorrect subcontracting rules have been followed
Undue and unjustified allowances (per diem and other) have been paid to staff and charged to the project
The more the beneficiary invests in keeping and maintaining exhaustive and appropriate financial documentation, the better prepared the beneficiary is for the control & audit visits.

25. USUAL MISTAKES TO AVOID
19/05/2018
QUESTIONS AND ANSWERS
USUAL MISTAKES TO AVOID

26. 19/05/2018
Please read carefully the grant agreement and the respective guidelines for Administrative and Financial Management available at:
(related to monitoring and implementation of the project) (related to administrative and financial aspects) (related to call for proposals)
contact us:
Thank You
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