2. Eligibility – principles Budget lines Revenues Financial flow
INDEX
Reference documents
Eligibility – principles
Budget lines
Revenues
Financial flow
Reporting Expenditures
Validation
Timeframe for Verification
Currency Exchange
Application for reimbursement
Financial progress and decommitment

3. Reference Documents/Regulations
Council Regulation (EC) No 1083/2006 General Regulation: Art.56; Art. 2 ; Art.54 (Double financing); Art.16 (Equality between men and women and non discrimination); Art.17 (Sustainable development) ; Art.55(Generation of revenue)
Council Regulation (EC) No 1080/2006 ERDF Regulation : Art. 7; Art. 13
Commission Regulation (EC) No 1828/2006 Implementing Regulation + related amendments (EC) No. 846/2009: Art. 48 to Art. 53; Art. 9 (Publicity); Art. 24 (Legality and regularity of expenditure paid outside the Community)
Directive 2004/18/EC on Public works contracts, public supply contracts and public service contracts + amendments: Directive 2005/51/EC; Directive 2005/75/EC
Article 48 (2) Regulation (EC, Euratom) No 1605/2002, (Sound financial management)
All expenditure has to be in line with the EC regulations and the relevant national rules and legislation.

4. Reference Documents/Programme documents
EC Regulations + national legislation
SEE Programme Manual: part of the Application package
SEE Implementation Manual v3.1
Subsidy Contract
SEE Control Guidelines + SEE Control Checklist: main
requirements at programme level
National eligibility rules: more detailed, can be stricter than programme’s rules!
Links:

5. Reference Documents/National Rules
Each Member State defines specific rules on eligibility of expenditures
Project partners and first level controllers should always refer to relevant rules on eligibility defined at national level
Rules on eligibility at national level are in line with the general framework provided by SEE Programme
In case of doubt please contact your NCP + JTS SEE

6. Eligibility/Principles
Necessary to carry out project’s activities/objectives & Clearly related to activities foreseen in the approved AF
Incurred during eligible periods (preparation-implementation-closure) Eligibility period: FROM 01/03/2011 TO 28/02/2014
Incurred on SEE area. In case the expenditures are incurred outside EU& SEE area are eligible according to the “10% ERDF flexibility rule“.
Supported by document attesting administrative procedures adopted (tenders, contract, …)
Supported by accounting documents justifying incurred expenses (invoices, pay rolls….)

7. Eligibility/Principles
Real: actually incurred and paid by the project beneficiaries, and they can be verified on the basis of original invoices or other accounting documents of equivalent nature;
Respect EU/national/Programme relevant rules
Respect public procurement rules
Ineligible expenditure
list of ineligible expenditure in the SEE Programme Manual
all those expenditure which do not fulfil the eligibility criteria according to the common eligibility rules of the SEE Programme and to national eligibility rules whichever is stricter

8. Budget Lines
STAFF
OVERHEADS
TRAVEL AND ACCOMMODATION COSTS
EXTERNAL EXPERTISE AND SERVICES
EQUIPMENT
FINANCIAL CHARGES AND GUARANTEE COSTS

9. Budget Lines/Staff
Directly employed by the PP according to national regular employment contracts
Check national legislation/national eligibility rules
Shall be calculated in hourly rates according to the monthly gross salaries
Cost of actual time – real hours – employees of the partner’s structure working on the project
Timesheets: duly and fully filled in
In case the same project partner participates to more than one project, indicate on the monthly time sheet of the concerned person(s) the hours spent at least on all ED projects he/she is involved in

10. Budget Lines/Staff Supported Documents List of project staff
Work contract
Designation order in case the “employee” of the partner’s organization is civil servant
Clear assignment of the person;
Payslips, proofs of payment (e.g. bank statements),
Calculation evidence of the hourly rates of the project staff;
Timesheets
In case the same project partner participates to more than one project, indicate on the monthly time sheet of the concerned person(s) the hours spent at least on all ED projects he/she is involved in
Budget Lines/Staff

11. EXAMPLE Budget Lines/Staff Calculation hourly cost
Based on the actual salary rate (employee’s gross salary + social charges in accordance with national legislation) of the individual employee who is actually involved in project activities
The calculation excludes any administration overheads.
EXAMPLE

12. Budget Lines/Overheads
Office rental fee, electricity, heating, water
Phone, fax, internet, postal costs, courier;
Stationery, printing, copying;
Indirect staff costs
Administrative staff, book-keeping/ accounting, salary administration, IT support.
Shall be declared only on the basis of real costs up to the limitation of 20% of the staff costs.
Has to be directly related to the project and justified by receipted invoices or accounting documents having an equivalent probative value.

13. Budget Lines/Overheads
Methodology for calculation
the ratio of the number of people working for the project / number of people working in the organisation or department
the ratio of the number of hours worked on the project / number of hours worked in total in the organisation or department
the ratio of the surface used by the personnel working for the project/surface of the organisation or department

14. Budget Lines/Overheads
Supported Documents
Directly allocated to the project (real costs)
Invoices, or other accounting documents
Proof of payment (e.g. bank statements)
Proportionally to a project (flat rates based on average real costs)
Documents on the method for allocating overhead costs to the project
Relevant accounting documents supporting the calculation method and proofs of payment

15. Budget Lines/Travel & Accommodation Costs
Travel costs
Accommodation costs
Subsistence allowances (per diems) .
Only travelling costs of the “project staff” are eligible.
In case the “employees” are civil servants has to be proved that these persons are directly contributing to the project implementation
For the Associated Strategic Partners (EU Associated, EU Associated 20%,10% Partner) are eligible,
For the external experts shall be included in the service contracts and budgeted under the external expertise and services budget line;

16. Budget Lines/Travel & Accommodation Costs
General rule: the most economic way of transport shall be used (economy class, public transports)
within the programme area and within the EU territory
Accommodation
within national limits
can be accepted without reservation if they are in the middle price range.
Subsistence allowances
not exceed the usual subsistence allowances of public authorities of project partner's country
are eligible only for ERDF PPs “project staff” according to the national rules
include social contributions according to the relevant national rules;
Higher price ranges must be duly justified in each case.
The duration of the mission must be clearly in line with the purpose of it (e.g., from the day before to the day after the concerned meeting).

17. Budget Lines/Travel & Accommodation Costs
Supported Documents
Authorisation of the mission
Mission report signed by the travelling person
Other supporting documents (e.g., invitation, agenda, list of participants, minutes).
Invoices and other accounting documents paid directly by the project partner’s organisation
Proof of payment (directly paid by the partner’s organisation,)
Train/bus tickets, plane tickets, boarding cards
In case of use of own car or company car, calculation sheet prepared according to national or institutional rules stating at least the distance, the unit rate and the total costs of the travel.

18. Budget /External expertise and services
Organisation of meetings and events
Promotion costs
Other services
EXTERNAL EXPERTS
Professional expertise
Experts for project management,
Costs of technical, financial and other special experts
Control costs

19. Budget /External expertise and services
EXTERNAL EXPERTS
the work of the external expert is essential to the project;
rates are reasonable and are in relation to level of experience and expertise;
the selection shall comply with the relevant National Public Procurement Law in force;
project partners cannot be contracted as an external expert or a subcontractor;
additional contracts of external expertise nature signed with own staff of the partner institution must strictly apply transparent selection and, where applicable, public procurement procedures.
The same person already charged under staff costs can not be contracted under external expertise;
If applicable, the deliverables respect the information and publicity requirements

20. Budget /External expertise and services
ORGANISATION OF MEETINGS AND EVENTS
conferences, seminars, meetings, workshops, project events
renting of premises and equipment for events;
fees for experts/speakers invited to project event
interpretation at events;
printing of materials directly related to events, etc.
Documentation of the participants (participant list)
In case an external expert can not receive a fee for participating in a project event as speaker, the contract shall state that only travel costs and accommodation costs supported by invoices will be paid

21. Budget /External expertise and services
PROMOTION COSTS
costs of brochures and leaflets;
press releases, inserts in newspapers;
newsletters;
the design and maintenance of web page for the project;
other publication costs related to the project but not linked to specific events /seminars;
OTHER SERVICES
costs not linked to specific budget lines, but necessary for the project
translations of project documents not linked to specific budget lines;
reproduction of project documents not linked to specific budget lines, etc;

22. Budget /External expertise and services
Supported Documents
Documents on the selection of the external expert
The contract laying down the services to be provided
Invoices and other accounting documents
Proof of payment
Deliverables

23. Budget /Equipment
Special equipment (laboratory equipment & special measurement equipment including transportation and installation costs )
Office equipment (computers, laptops, office furniture, etc. related to the project management ).
Depreciation costs (According to art. 53 of Regulation (EC) 1828/2006 )
Second hand equipment ( has not been previously purchased with the cofinancing of public funds; the price is in line with its market value and less than the price of similar new equipment; has the technical characteristics necessary for the project)
necessary for the project implementation and foreseen in the Application Form
Changes in the quantity of equipment have to be confirmed by the Lead Partner.
Changes in the type of specific equipments have to be approved by the programme management bodies.

24. Budget /Equipment Supported Documents
Documents on the selection of the suppliers
The contract laying down the purchase of equipment
The evidence of the purchase of equipment
Documentary evidence for second hand equipment
The calculation method for the depreciation costs
Invoices or accounting documents of equivalent probative value
Proof of payment

25. Budget /Financial Changes & Guarantee Costs
charges for transnational financial transactions;
bank charges for opening and administering the account
the cost of guarantees
legal consultancy fees, notarial fees
Opening of a separate bank account for the project
In case it is not possible to open a separate EUR bank account or sub-account, only the bank charges and expenditure related to the project on the LP’s single EUR bank account are eligible.
Any other types of financial charges are ineligible.
According to article 49 of Regulation (EC)1828/2006
Normally related to the project’s management and coordination.

26. Budget /Financial Changes & Guarantee Costs
All costs are real, directly related to the project and have not been declared under other budget lines
Only eligible expenditure according to the SEE Programme Manual are declared
Supporting documents justifying these costs
Proof of payment

27. Revenues
Only the cash in-flows directly paid by users for the goods and/or services provided by the project has to be considered as project generated revenues, such as charges borne directly by users for the use of infrastructure, sale or rent of land or buildings, or payments for services
Net revenues has to be deducted by the Controllers from the eligible expenditure reported by the PP
Calculation method has to be provided by the PP to report the net revenues
Revenues not reported: corresponding ERDF amount will be reclaimed

28. Financial Flow

29. Reporting Expenditures
Expenditure has to be eligible according to the eligibility rules of the SEE Programme
Be aware of the eligibility rules!
In case of question: PPs consult national controller and/or LP contacts JTS
2. Eligibility of expenditure has to be proved!
Documentary evidence submitted to the Controller
On the spot: evidence of the expenditure is available

30. Reporting Expenditures/ in Time
Reporting in Time
Starting date of the eligibility of expenditure: approval date of the projects 15th December 2010 /exception: preparation costs
Eligibility of expenditure between 01/03/2011 TO 28/02/2014
End date of the eligibility of project expenditure: 28/02/2014
Only exception: control costs of the last reporting period shall be incurred and paid within 60 days from the end date of the project

31. Reporting Expenditures/10% Flexibility Rule
Reporting Expenditures according to 10% flexibility rule
“10%” activities mentioned in the approved AF
up to the amount planned in the ERDF PP’s budget of the approved AF
expenditure directly incurred and paid by the ERDF PP
expenditure only for the benefit of the 10% partners indicated in the AF
expenditure related to eligible budget lines for 10% rule (travel and accommodation, external expertise and services)
ERDF PP respected the public procurement rules at national level
Specific rules set by the Partnership Agreement

32. Reporting Expenditures/EU Policies
Reporting/ “Compliance with EU policies and other rules
The principle of cost efficiency and transparency
Public Procurement
State Aid
Information and publicity requirements
Environment protection
Equal opportunities
Expenditure by public authorities
Double financing

33. Validation
Validation of project expenditures
Validation of expenditure means the output of the verification process performed by the controllers at national level for each ERDF Project partner involved in the project.
Only validated expenditure can be reported by the Project partners to the Lead partner.
Only validated expenditure can be reported by the Lead Partner to the JTS!

34. each PP responsible separately for having its expenditure validated!
Validation
STEPS
1ST Each PP as well as the LP has to submit its expenditure relevant for a reporting period for validation to the designated Controller in its MS,
each PP responsible separately for having its expenditure validated!
Designated Controllers: check the information at the Programme’s website
Standard and obligatory document to report expenditure to the Controller: Partner Report
SEE Control Checklist: minimum requirements for documentary evidence
2nd The Controller verifies the expenditure submitted by the PP/LP. After verification, the Controller issues the Declaration on validation of expenditure

35. Validation
STEPS
3rd Each PP has to submit the declaration on validation of expenditure to the LP.
4th The LP is responsible to verify that the expenditure of its PP is validated by the designated Controller for the SEE Programme.
5th Original declarations on validation of expenditure of the PPs have to be submitted by the LP to the JTS together with the Application for reimbursement.

36. Timeframe for Verification.

37. Currency exchange
Declaration on validation of expenditure to be issued in EUR
Application for reimbursement to be submitted in EUR
Reimbursement of ERDF contribution in EUR
only one method is accepted to exchange currency to EUR: the monthly accounting exchange rate of the Commission in force in the last month of the reporting period

38. Application for reimbursement
Submission of Application for reimbursement
Lead Partner can request the reimbursement of ERDF contribution by
submitting an Application for Reimbursement to the JTS together with the Progress Report
Application for Reimbursement shall contain only validated expenditure and shall be supported by the declarations on validation of expenditure
Application for Reimbursement is automatically generated on the SEE Front Office of the IMIS , when the progress report is fully completed

39. Application for reimbursement
LPs responsibilities & verifications before submission
the expenditure declared by the PPs has been incurred only for the Project purposes and corresponds to the activities of the approved AF;
the expenditure declared by the PPs and included in the AfR had been validated by the designated controllers at national level;
All declaration on validation of expenditure presented in the AfR are attached in original paper version officially signed by the designated controllers;
The expenditure declared in the AfR has not been included in any other previous AfR;
The information included in the AfR, the related Progress Report and its Annexes are true and correct.

40. Application for reimbursement
Other Rules
In case the declarations on validation of expenditure are not received from each project partner for a given reporting period, the LP shall submit the application for reimbursement on the basis of the declarations on validation of expenditure available for the reporting deadline.
The expenditure of the project partners not validated for the given reporting period within the deadline can be requested only for the following reporting deadline to the reporting period concerned.
To be submitted within 15 days after the electronic submission:
Application for reimbursement: 2 originals signed and stamped
Declarations on validation: 1 original signed and stamped

41. Application for reimbursement
Reimbursement of ERDF Funds to the LP
LP submits the Progress Report and the Application for Reimbursement
to the JTS for the deadlines given in the Subsidy Contract.
JTS verifies and approves the Progress Report and Application for Reimbursement.
After verification process by the JTS, reimbursement of ERDF contribution will be authorised by the Certifying Authority.
Reimbursement of ERDF contribution to the EUR bank account of the LP indicated in the Subsidy contract.
LP responsible to transfer the ERDF contribution of each project partner
Bank statements on the project bank account have to be presented to the JTS with each Application for Reimbursement.

42. Application for reimbursement
Timeframe for reimbursement ERDF Funds

43. Financial progress and decommitment
Spending forecasts fixed in the Subsidy Contract for the whole project period
LP can not request the modification of the spending forecasts
Possibility to deviate: real spending can be lower or higher than originally planned for a given reporting period
To be considered: in case of underspending compared to the spending
forecasts, the MA is entitled to decommit the project by reducing the original project budget and the corresponding ERDF contribution

44. Financial progress and decommitment
Real spending level of the projects are reported by the JTS to the MC on yearly basis
In case of decommittment at programme level, MC may decide on the
decommitment of the projects
Projects will be affected by the decommitment according to their performance
In case of MC decision on the decommitment of the project, the MA initiates the modification of the Subsidy Contract

45. Keep deadlines of reporting!
Tips
Keep deadlines of reporting!
Progress report and Application for Reimbursement submitted in time and complete = earlier payment of ERDF contribution to the project!

46. Thank you for your attention!