1. BEST 2.0
Financial Report
Financial Reporting
January 2017

2. Financial Reporting General Principles
You are strongly advised to read the Financial Reporting Guidelines on the BEST 2.0 Portal
Report on the basis of actually incurred costs (exc. indirect costs = % of eligible direct costs)
Estimated amounts, or budgeted amounts are not acceptable
Ensure that you have followed the BEST 2.0 Procurement Policy and Procedures
In cases of single sourcing you may be asked to explain how you have ensured the best value for money, i.e. how you identified the most appropriate provider in terms of economic efficiency and professional capacity
Costs must be supported by documentary evidence (see sections XI & XII - Financial Reporting Guidelines)
Assign clear and consistent names to all files/documents:
Reporting files – include project number; type of report (interim/final); version
Example: SG1650 Interim Rep Final v
Scans of supporting documents – include reference to the budget line; type of document; amount
Example: pay slips J.Castle or Translation 532€ invoice

3. Financial Reporting General Principles
Costs can only be incurred after the start date of the grant agreement and before the end date of the grant agreement (Article 3 - Grant Agreement)
Ex. 1: Grant start date is 01 October A computer for the project officer was purchased on 15 September The cost is not eligible.
Ex. 2: The grant agreement end date is 30 September Staff worked on reporting in October The costs of staff during October 2017 are not eligible.
Costs included in the report must be incurred (work completed/goods delivered) AND paid
Financial report covers the period from 01 October 2016 to 30 September 2017
Ex. 1: Project brochures were printed and published on 20 September The cost can be reported if the invoice from the provider has been paid.
Ex. 2: A contract for services was signed on 01 November 2016 and includes 3 deliverables with corresponding payments. By 30 September 2017 two deliverables were accepted, invoiced by the provider and paid. The financial report has to include the invoices for these two deliverables. It cannot include the final invoice for the last deliverable because it has not been either completed or paid.
Reported costs must be related to the work/events that took place during the reporting period. If the cost is linked to a project activity not yet implemented, it has to be included in the next report.
Ex. 1: Plane tickets or hotel for a workshop have been paid during the first reporting period but the workshop will be held during the second reporting period, i.e. the travel will take place in future. The cost of the tickets or prepaid hotel cannot be included and must be included in the next reporting period.

4. What Documents Need to Be Submitted?
Submission Checklist
What Documents Need to Be Submitted?
INTERIM Report
Transaction Listing (complete this document first)
Transaction Listing tab
Staff Costs table tab
Financial Report Template (complete this using the figures from the transaction listing document)
Interim report tab
FINAL Report
Transaction Listing (complete this document first)
Transaction Listing tab
Staff Costs table tab
Financial Report Template (complete this using the figures from the transaction listing document)
Final report sheet
Final sources of funding tab
Templates can be found on the BEST 2.0 Portal at the following link:

5. Reporting Process Steps to Follow
Prepare the transactions listing document: a list of direct costs and a staff costs table following the example and guidelines.
Prepare the financial report.
Submit draft copies of the transactions listing and financial report to your Regional Hub Officer and the BEST 2.0 Secretariat for an initial review.
Incorporate any comments/edits/corrections into the reporting documents.
Upload the revised versions of the reporting documents on BEST 2.0 portal.
The reports will be reviewed by the BEST 2.0 auditors.
The Secretariat will provide to you a list of auditors’ questions and a selection of costs to be justified by documentary evidence.
Upload files with answers to auditors’ queries and scans of the supporting documents on BEST 2.0 portal.
Once the auditors have approved the report upload the signed final version of the transactions listing and financial report on BEST 2.0 portal.

6. Transaction Listing Document Filling In the Transaction Listing Tab
The transaction listing tab should include all transactions related to your BEST 2.0 project during the reporting period.
Staff costs should not be included here; they are included on the ataff cost tab.
Exchange rate for reporting
If your organisation’s accounts are not in EUR.
Use the exchange rate that was used when the pre-financing payment was recorded in your organisation’s account.
If you incur costs in a different currency to that of your organisation’s accounts
Convert the actual expenditure using the monthly InforEuro rate on the date of payment as published on:
Use the budget line number and description from your approved budget
Description of transactions should be comprehensible for someone not involved in the project
This figure must match the total of direct costs in your report (excluding staff costs)

7. Filling In the Staff Costs Table Tab
Transaction Listing
Filling In the Staff Costs Table Tab
775 = Total hours worked on the BEST 2.0 project by the Project Manager (Employee X) in 2017
Use a separate row for each individual and for each calendar year
Hours worked on the BEST 2.0 project as recorded in the individual’s timesheets

8. Filling In the Staff Costs Table
Transaction Listing
Filling In the Staff Costs Table
Use a separate row for each individual and for each calendar year
Use the unit from your approved BEST budget
Annual Total Cost Employer
Eligible elements that can be included:
Salary or wages (gross incl. income taxes)
Social security
Other mandatory costs included in remuneration or included as a standard Human Resources policy of the organization (and can be proved by supporting documents)
Example calculation:
How to convert from hours to months?
This figure should match the staff costs in your financial report
For partial calendar years the real cost should be calculated for the months that fall in the reporting period.

9. Converting Hours on Timesheet to Months
Hours to Months
Converting Hours on Timesheet to Months
Employee X: with an indefinite term contract
Start date of project/reporting period : 1st March 2017
End date of project/reporting period : 28th February 2018
2017
2018
12 months
Jan – Dec
2 months
Jan - Feb
Year 2017
Year 2018
Step 1: Calculate the total productive working hours
(For 12 months Jan-Dec)
1,600
(For 2 months Jan-Feb)
320
Step 2: Take the total hours worked on the BEST project
750
200
Step 3: Calculate the average number of productive hours per month (Total productive hours (Step 1) / N° of months worked)
1,600 / 12 months =
320 / 2 months
= 160
Step 4: Convert hours worked on the BEST project to months (N° of hours worked on the BEST project (Step 2) / Average number of productive working hours per month (Step 3))
750 /
= 5.63
200 / 160
= 1.25
These figures must be taken from the completed timesheets.
Forecasts, percentages or extrapolation is not acceptable.
Productive working hours = the time actually spent working as recorded in timesheets (it will normally result in a different number of annual working time units for each employee and for each year). It shouldn’t include holidays actually taken, public holidays, flexitime compensation, weekends, sick leave, other paid absences (maternity leave etc.)

10. Financial Report Staff Cost Table Transaction Listing Financial Report
Expenditure
Unit
# Units
Unit Value (EUR)
Total Cost (EUR)
1. Human Resources
Project Manager
Per month
6.88
7,500
51,600.00
2. Travel
2.1.1 International Flights
Per flight 3
863.33
2,590.00
2.1.4 Local Travel
Per day 1 49
49.00

11. Financial Report Report Against the Units in Your Approved Budget
Expenditure
Unit
# Units
Unit Value (EUR)
Total Cost (EUR)
3. Equipment and Supplies
3.3.1 Satellite Tags
Per tag 10
1,600
16,000
Transaction Listing
Transaction Date
Budget Heading Reference
Description of the Transaction
Amount in EUR
15/02/2017
3.3.1 Satellite Tags
Purchase of 10x satellite tags from tags’r’us
13,300
10/03/2017
Licence fee x10 tags
780
14/03/2017
Cost for freight of tags from UK
350
TOTAL for budget line 3.3.1
14,430
Cost per tag = €14,430 / n° tags purchased (10) = € 1,443
Financial Report
Expenditure
Unit
# Units
Unit Value (in EUR)
Total Cost (in EUR)
3. Equipment and Supplies
3.3.1 Satellite Tags
Per tag 10
1,443
14,430

12. To Check Before You Send/Upload Your Report
Important Points
To Check Before You Send/Upload Your Report
The approved budget in the financial report columns B, C, D, E must be exactly the same as the budget in Attachment 1 to your grant agreement.
The indirect costs should be included at the same rate (%) as in your approved budget. If the % is not shown in your approved budget you will need to calculate it.
Budget
Report
7. Subtotal direct eligible costs
95, €
47, €
8. Indirect costs
4.5%
4, €
2, €
All relevant cells in the financial report must be completed including number of units and cost of unit.
The total of each main heading in the financial report must be equal to the total of these headings in the transactions listing.
The total of the financial report must be equal to the totals shown in the transactions listing tab + staff cost tab + indirect costs (overheads).

13. Pre-financing Payments
Cash Flow
Pre-financing Payments
The total of pre-financing payments cannot exceed 90% of the BEST 2.0 contribution.
The balance of funding i.e. 10% (if the budget is fully spent) will be disbursed after the approval final technical and financial report.
To receive the full amount of pre-financing for the next reporting period you must have spent at least 70% of the previous payment
Examples:
With Co-funding (10%)
No Co-funding
Total Project Budget
€ 55,000
€ 50,000
BEST 2.0 Contribution
€ 49,500 (90%)
€ 50,000 (100%)
Maximum Pre-financing –
90% of BEST 2.0 Contribution €
€ 45,000
Total Budget for Year 1
€ 35,000
€ 30,000
1st Pre-financing Received
€ 31,500
Required Expenditure to Request Further Pre-financing
€ 24,500
70% of Budget Yr 1
€ 21,000
2nd Pre-financing (maximum pre-financing minus 1st Pre-financing
€ 44,550 – € 31,500
= € 13,050
€ 45,000 – € 30,000
= € 15,000