1. SOUTH BALTIC CROSS-BORDER CO-OPERATION PROGRAMME 2007-2013
Introduction and overview on reporting in the South Baltic Programme
By Igor Kaniecki, Project Manager, JTS
Lead Beneficiary Seminar for projects approved in the 5th Call
9 -10 November 2010, Gdańsk / Poland 1 1

2. 1. Basics and levels of reporting
Contents
1. Basics and levels of reporting
2. The reporting procedure step by step
Timing of reporting and FLC tasks
Tasks of the Lead Beneficiary

3. Reporting basics (1) Purpose of a Progress Report:
Processing data on the project implementation for
the certification of expenditures by the FLC
claiming ERDF reimbursement from the South Baltic Programme (JTS / Managing Authority)
project internal monitoring of the implementation process and the financial by the Lead Beneficiary
> Format of the report is defined by the programme
Compulsory templates are provided by the JTS

4. Reporting basics (2) Components of a Progress Report: Financial Report
Item-based List of Expenditures (and revenues if relevant),
Aggregated financial data required by the South Baltic Programme (e.g. 10% rule, eligible VAT, etc.)
Activity Report
Description of activities, outputs, results in the reporting period
> basis for relating costs to implemented activities
> gives information on outputs (= physical deliverables)
Confirmation / First Level Control Certificate
For the verification of the Progress Report by the FLC:
original supporting documents (invoices, time sheets, etc.)
proof of payments (pay slips, account data etc.)
> requirements to be checked / agreed with the individual FLC

5. Project Progress Report
Levels of reporting (1)
JTS / MA
Project Level
(> Project Progress Report)
(> voluntary FLC)
FLC
Project Progress Report
Lead Beneficiary
Partner Level
(> Partner Progress Report)
(> Shared Costs Template)
(> compulsory FLC)
FLC
FLC
FLC
Partner PR
Partner PR
SCT LB
PP 2
Impl. Partner

6. Levels of reporting (2) “Higher” level of reporting: Project level
- Project Progress Report
Compilation of project costs of all PPs
To be prepared by the Lead Beneficiary
to be submitted to JTS/MA as payment claim
(FLC at project level not compulsory)
> Reporting at project level is “organised” by the JTS
Project Progress Report template to be used is sent out by the JTS to the LB in the end of each reporting period
> It is pre-filled as far as possible by the JTS (e.g. with general project data, previously reported costs, valid exchange rates)
> It is “automatised” as much as possible
(to be introduced in detail in the later presentations)

7. Levels of reporting (3)
“Lower” level of reporting: Partner level (= FLC level)
Shared Costs Template(s) (> Implementing Partner)
(necessary only in case costs sharing is applied)
Account of shared costs and their attribution to the partners
to be certified by (national) FLC of the Implementing Partner (compulsory!)
Partner Progress Reports (> all project partners, incl. LB)
Includes costs of only one PP (non-shared + shared costs),
to be certified by (national) FLC of the PP (compulsory!),
> Reporting at partner level is to be “organised” by the LB
Compulsory templates are provided by the JTS to the LB
The project-internal process (procedures, deadlines, contacts etc.) are to be shaped and monitored by the LB
> Partnership agreements, instructions for Partners and permanent communication are important tools for this

8. The reporting process (1)
JTS / MA
Project Level
(> Project Progress Report)
(> voluntary FLC)
FLC
Project Progress Report
Lead Beneficiary
Partner Level
(> Partner Progress Report)
(> Shared Costs Template)
(> compulsory FLC)
FLC
FLC
FLC
Partner PR
Partner PR
SCT LB
PP 2
Impl. Partner

9. The reporting process (2)
Parallel approach (e.g. in BSR Programme)
FLC / certification at partner level
FLC / certification at project level
Shared Costs Templates
Project Progress Report
Partner Progress Reports
Sequential approach (no compulsory FLC at project level in SBP!)
> FLC at partner level has to acknowledge shared costs of the Partner
FLC / certification (implementing partner)
FLC / certification at partner level (all PPs incl. LB)
Shared Costs Templates
Partner Progress Reports
Project Progress Report

10. Reporting step by step (1)
1. Preparation of Shared Costs Template(s) (by the Implementing Partner(s), if relevant)
Implementing Partner compiles the Shared Costs Template, i.e.
reports and documents its costs paid on behalf of the partnership (> List of Expenditures, original supporting documents),
calculates the shares of the Paying Partners on the basis of the cost sharing method (defined e.g. in the Partnership Agreement)
FLC of Implementing Partner certifies the Shared Costs Template
i.e. the costs paid by the Implementing Partner,
plus their attribution to the Paying Partners
> by issuing an “usual” FLC certificate
The Implementing Partner sends the certified Shared Costs Template (incl. the original signed FLC certificate) to the LB who
forwards a copy/scan of the document to all Paying Partners
> Timing is important:
certified Shared Costs Template to arrive at Paying Partners before they submit Partner Progress Report to their FLCs

11. Reporting step by step (2)
2. Preparation of the Partner Progress Reports (all PPs, incl. LB)
- (Recommended: LB sends out pre-filled Partner PRs to each partner)
Partner compiles Partner Progress Report, i.e.
lists and documents its non-shared costs paid (> List of Expenditures, original supporting documents),
includes its parts on the shared costs in the List of Expenditures (basis: previously certified Shared Costs Templates)
provides further financial information (incl. receipt of ERDF)
(Recommended: LB pre-checks Partner PR before FLC takes place)
PP submits (pre-checked) Partner Progress Report to FLC
FLC checks Partner Progress Report, i.e.
certifies the non-shared costs of the Partner that have been paid,
acknowledges the shared costs of the partner (on the basis of the previously certified Shared Costs Template)
PP sends the certified Partner Progress Report (incl. the original signed FLC certificate) to the LB

12. Reporting step by step (3)
3. Compilation and submission of Project Progress Report
(by the Lead Beneficiary)
JTS sends out a pre-filled Project Progress Report template to the LB at the end of the reporting period
LB compiles all costs / activities of all Partners on this template, based on the certified Partner Progress Reports received
LB confirms the information provided in the Project Progress Report
(Possible, but not compulsory: Project Progress Report is certified by the FLC of the LB)
LB submits Project Progress Report to the JTS
annex includes all original FLC Certificates of Partner Progress Reports and Shared Costs Templates

13. Reporting step by step (4)
4. Clarification process
JTS checks the Project Progress Report
LB receives a request for clarifications on the report from the JTS
LB has to provide the clarifications within working days
> Further clarification “rounds” possible if answers unsatisfactory
At the end end of the clarifications, the JTS asks the LB
for corrections of the Project Progress Report
new / corrected FLC Certificates (if necessary)
LB submits corrected, signed documents to JTS
JTS forwards PR to MA/CA/PA for initialising the reimbursement

14. Reporting step by step (5)
5. Reimbursement procedure
JTS informs the LB about the acceptance of the Project Project Report and the initialisation of reimbursement (“Payment notification”)
Paying Authority transfers the ERDF co-financing to the Lead Beneficiary
Lead Beneficiary forwards the ERDF funds to the individual Partners according to their reported costs and claimed ERDF refund

15. Timing of reporting and FLC (1)
Recommendation:
FLC / certification
- only Implementing Partner(s)
- only shared costs
FLC / certification at partner level
- all PPs incl. LB
- certification of non-shared costs
- acknowledgement of shared costs of each Partner
Shared Costs Template
Partner Progress Report
Project Progress Report
10 calendar days
40 calendar days
20 calendar days
End of reporting period
< 70 calendar days >
Deadline for submitting the Project Progress Report to the JTS

16. Timing of reporting and FLC (2)
Regular reporting periods (6 months, fixed dates):
1 Jan – 30 June (> all costs paid / activities in this period to be included)
Deadline for LB to submit the Project Progress Report: 9 Sept
Shared costs: Compilation / certification in June / July
Partner Progress Report: Compilation / certification in July / Aug
Project Progress Report: Compilation / certification in Aug / Sept
Clarification process: ~ Sept/Oct/Nov
1 July – 31 Dec
Deadline for LB to submit the Project Progress Report: 11 March
Shared costs: Compilation / certification in Dec / Jan
Partner Progress Report: Compilation / certification in Jan / Feb
Project Progress Report: Compilation / certification in Feb / March
Clarification process: ~ March/April/May
> Ensure the availability of LB, PPs and FLCs in these periods!

17. Timing of reporting and FLC (3)
Exceptional reporting periods:
1st Progress Report:
Start of the reporting period differs for cost categories
Eligibility of implementation costs (components 1-5) starts with the official start date of the project defined in the Subsidy Contract (SC)
Eligibility of preparation costs (component 0, if existing) starts 12 month before closure of call (4th call: 12 Jan 2009)
End of reporting period is synchronised with “regular” periods
ends with the first regular one after signing SC
> In your case (probably): 31 Dec 2010
“Normal” reporting deadline is valid:
> In your case: 9 March 2011

18. Timing of reporting and FLC (4)
Exceptional reporting periods (2):
Final Progress Report:
Start of reporting period is synchronised with “regular” periods
starts with the regular one before the end date of the implementation period as defined in the Subsidy Contract
End of the reporting period is project-specific and differs for cost categories
Costs in components 2-5 are eligible only if paid before the official end date of the implementation period
Costs in component 1 (management and coordination) can be paid also in the “closure phase” (> further 120 days)
Individual reporting deadlines for each project
Final PR has to be submitted within 120 days after the end date (instead of 70 days,so-called “closure phase”)

19. Tasks of the Lead Beneficiary (1)
Setting up the reporting system within the project
Creating a coordination unit for the process at project level
Recruiting the (internal) project manager and / or financial manager
Subcontracting of external project management and / or financial management
Communicating the contacts / responsibilities to the Partners
Settling the framework for Partners in the Partnership Agreements, i.e.
Deadlines for submitting the Partner Progress Reports / Shared Costs Templates (if relevant) to the Lead Beneficiary
Other obligations (e.g. Partner Progress Report is only accepted if pre-checked by Lead Beneficiary before FLC)
Cost sharing provisions (if relevant)
Detailed partner budget as annex
> Tool for FLC at partner level and project internal monitoring
> recommended: Partner / component / budget line / period

20. Tasks of the Lead Beneficiary (2)
Assisting and monitoring the reporting process within the project
Further informing and instructing the Partners:
Drafting (short) guidelines on project internal reporting
Word-file of Reporting Guidelines of JTS as a basis
Detailed introduction to FLC and reporting at Kick-off meeting
Regular updates / “trouble shooting” at project meetings
Advice and help for individual Partners
Pre-filling the Partner Progress Report templates as far as possible
Pre-checking the Partner Progress Reports before FLC
Establishing a “hotline” in case of problems in the “hot phases”
Trust is good, control is better…
Follow up on the process, contact your Partners pro-actively
> If you leave your Partners alone, they will not manage!

21. Do you have any questions?

22. Thank you very much for your attention!