1. Interreg V-A Latvia-Lithuania programme 2014-2020
INFORMATION SEMINAR
3rd Call for proposals
Project budget requirements

2. Eligibility of costs Only costs incurred by PP
Expenditure must have been paid out (“gone out of the PP bank account”)
Costs are directly related to the project and planned/specified in the AF
Costs must be paid out within the project duration
All costs are subject to applicable public procurement rules
Interreg V-A Latvia-Lithuania Programme

3. Eligibility of costs
Costs proved by delivery of works, services or supplies
Competition and public procurement
No Double Financing
Recoverable value added tax is ineligible
Sound Financial Management principles
Interreg V-A Latvia-Lithuania Programme

4. BL2 “Office and administration costs”
Eligibility of costs
Budget lines
BL1 “Staff costs”
BL2 “Office and administration costs”
BL3 “Travel and accommodation costs”
BL4 “External expertise and service costs”
BL5 “Equipment costs”
BL6 “Infrastructure and works”
Latvia-Lithuania Cross Border Cooperation Programme

5. Staff costs can be reported either by:
Eligibility of costs
BL1 „Staff costs“
Staff costs can be reported either by:
Flat rate method ( 15% of total eligible PP direct costs)
Real costs method, when real expenditure is reported and justified with the supporting documents
Staff costs reporting method cannot be changed during project implementation
Latvia-Lithuania Cross Border Cooperation Programme

6. Eligibility of costs
BL1 „Staff costs“
PP does not need to document that the expenditure has been incurred and paid
However, information on employees involved in the project management/implementation should be provided to FC upon request
If Staff costs flat rate is chosen, External project management costs (project manager, financial managers, procurement ,public relation specialists, etc.) cannot be also reported In BL External expertise
The calculation is done automatically
in the AF, in partner report forms
Latvia-Lithuania Cross Border Cooperation Programme

7. Eligibility of costs Full-time Part-time:
BL1 „Staff costs“/ Real costs
Full-time
Part-time:
Part-time assignment with a fixed percentage of time worked on the project per month
Part–time assignment with a flexible number of hours worked on the project per month
Contracted on an hourly basis
Actual salary rate must be used
Unjustified different hourly rates/ remuneration in the frame of the same responsibilities must be avoided
Latvia-Lithuania Cross Border Cooperation Programme

8. Eligibility of costs
BL2 „Office and administration costs“
The calculation is done automatically as a flat ra of
15% or 0% of eligible staff costs
PP does not need to document or to prove costs
Following costs are covered by the flat rate under BL2 “Office and administration costs” and they cannot be reported under any other BL:
Office rent; Utilities (e.g. electricity, heating, water)
Office supplies; Security; Communication, IT, maintenance
General accounting, IT services, etc
Latvia-Lithuania Cross Border Cooperation Programme

9. Eligibility of costs
BL3 „Travel and accommodation costs“
Travel and accommodation costs of employees of the project partner organization's must be clearly linked to the project (no ext. expert costs)
In well-justified and documented cases, the PP have a possibility to cover travel and accommodation costs of guests/target group
Preparation lump sum 1000EUR ERDF
No cost sharing
Latvia-Lithuania Cross Border Cooperation Programme

10. Eligibility of costs Costs of an external service providers
BL4 „External expertise and services costs“
Costs of an external service providers
Studies, Surveys, Translations, Trainings
IT, Financial management, Publicity, other services linked to a project
Organization and implementation of events or meetings
Costs for financial control for LT PP
(~3-4% of PP budget)
Also costs of external expertise and services that are linked to an investment in infrastructure
Breakdown of costs, specifications/ necessary qualification of experts provided
use rounding
Latvia-Lithuania Cross Border Cooperation Programme

11. Eligibility of costs BL5 „Equipment costs“ Equipment :
cross border character and relevance
in line with the project objective
general Specifications provided
special rules for second-hand or leased equipment, specialised cars
Latvia-Lithuania Cross Border Cooperation Programme

12. Annexes that shall be provided:
Eligibility of costs
BL6 „Infrastructure and works“
Preparation costs for development of technical documentation (up 7% of works)
Annexes that shall be provided:
ownership documents or lease of land or premises agreements;
cost-estimations for (re)construction works;
full set of valid  building/technical documentation (stage of readiness in order to procure constructor immediately after the project approval)
acceptance of building/technical documents by local or national construction/building boards
(including permits from relevant municipalities, cultural heritage protection boards, nature protection boards and other relevant institutions if required by national legal acts)
Latvia-Lithuania Cross Border Cooperation Programme

13. Revenue/ State aid The estimated net Revenues must be deducted from
the total project budget:
simplified calculations of net revenue
full calculation of the discounted net revenue ( >1M)
State aid relevant activities
(Economic advantage,(Potential) distorting effect on competition and trade within the EU) could be granted under:
the De minimis aid: Organisation can receive support (all kinds of support whether from national or EU sources) up to EUR 200 000 in 3 years
for Latvian PP in the form of public service compensation granted to certain undertakings entrusted with the operation of services of general economic interest
Latvia-Lithuania Cross Border Cooperation Programme

14. Recomendations Avoid Excessive costs (staff, external experts,…)
Don’t state only lump sums ( EUR, EUR)
Provide breakdown of costs in comments section ( a+b=c)
Avoid Cost sharing (not allowed)
Provide specifications for equipment, expert services
Use rounding up to tens ( no 345,32EUR, ,87EUR)
Latvia-Lithuania Cross Border Cooperation Programme

15. Co financing
Eligible project activities are co-financed by the ERDF at a rate of
Possible national co-financing
 Latvian PP – 5%
MK noteikumi Nr.200  Valsts budžeta līdzekļu piešķiršanas kārtība Eiropas Strukturālo un investīciju fondu mērķa "Eiropas teritoriālā sadarbība" programmu finansējuma saņēmējiem no Latvijas
Lithuanian PP- 7.5%
LR Vidaus reikalų ministro įsakymas Nr. 1V-1076 dėl Lietuvos Respublikos valstybės biudžeto lėšų, skirtų 2014 – metų Europos teritorinio bendradarbiavimo tikslo programos bendrai finansuoti, naudojimo taisyklių patvirtinimo
Latvia-Lithuania Cross Border Cooperation Programme

16. Reimbursement Reimbursement in 2 payments ( 70% / 30%)
Latvia-Lithuania Cross Border Cooperation Programme

17. Reporting processes
LP and PP submit their reports to the FC
FC verification and issuing of FC certificates
LP prepares and submits the consolidated progress report to the JS
MA makes the 1st payment (70% of reported eligible costs) to the LP
JS assesses the consolidated progress report
MA makes the 2nd payment of (30% of reported eligible costs) to the LP
Activity
2 weeks from the end of the reporting period
2 months after the partner report is submitted via eMS
2 weeks after the FC has issued FC certificates
2 weeks after the consolidated progress report or final report is received
2,5 months after the consolidated progress report or final report is received
2 weeks after the consolidated progress report or final report is approved by the JS
Deadline
Total max time from
end of reporting period
2 weeks
2,5 months
3 months
3,5 months
5,5 months
6 months
Latvia-Lithuania Cross Border Cooperation Programme

18. Thank you for your attention