1. Part-financed by the European Union (European Regional Development Fund) PartiSEApate: Project administration … a formal side of the project under BSR Programme 2007-2013 Joanna Przedrzymirska The Maritime Institute in Gdańsk PartiSEApate Lead Partner Kick-off meeting, Riga, 6th September 2012 Part-financed by the European Union (European Regional Development Fund)

2. Content 1.Some basic principles 2.EPCO 3.Project Reporting 4.Partnership Agreement, incl. cost-share 5.Detailed financial rules (specifics of budget lines)

3. Part-financed by the European Union (European Regional Development Fund) Some basic principles 1.Lead Partner principle: responsibility = trust 2.ONE project – but: each partner with OWN budget (no budget shifts) many type of activities: Individual activities = individual budgets Joint activities (with ONE coordinator while all are contributing) Jointly financed activities (common work financed from shared costs) 4.TRULY TRANSNATIONAL project = consuming resources for constructive dialog not for exchange of experience => joint BSR wide activities (i.e. MSP Expert Group, Pilots, Compendium, Stakeholder workshops, Recommendations)

4. Part-financed by the European Union (European Regional Development Fund) EPCO EPCO = External Project Coordination Office JOINT tasks related to: WP 1 = Project Administration and WP 2 = Project Communication SUPPORT needed due to: EU Regulations / JTS reporting requirements Transnational character of the BSR Programme’s project (numerous partners and activities but … separate budgets) For the benefit of ALL Project Partners Coordinated by the Lead Partner (MIG) and supervised by BSH – an implementing partner EPCO is expected to: Ensure compliance with BSR Programme 2007-2013 requirements = keeping everything “on track”: reporting, Work Plan, Milestones, Outputs, Indicators Communicate – Moderate – Motivate Create Room for Content EPCO is NOT expected to: Replace/ substitute/ relieve partners in their roles on content side in the project: Stakeholder workshops ≠ Partner Meeting MSP Expert Group ≈Partner Meeting BUT Content comes from Partners

5. Part-financed by the European Union (European Regional Development Fund) Joint (EPCO) versus individual activities Joint activities WP1 Overall reporting (incl. pre-checks of individual PPs reports) Financial management (incl. budget changes) Preparation & documentation of partner meetings Project Portal & Helpline (also towards JTS) WP2 Website & Project Contact Point Communication Plan Project Identity Kit Project Messages & Articles Editing of Project Newsletters / Fact Sheets /Workshop Documentations etc. Management of Dissemination (Mailing) Lists Individual activities WP1 Documentation of own costs & activities Certification of expenditure (FLC) Public Procurement Responses to specific clarifications WP2 Participation in events Press Conferences Radio / TV interviews CONTENT Elaboration of Newsletter, Fact Sheets, etc. CONTENT Elaboration of Minutes for Stakeholder Meetings CONTENT Main Products / Reports Collection of dissemination / mailing lists & contacts

6. Part-financed by the European Union (European Regional Development Fund) Project Reporting - RULES Retrospective payments Application shows ideal budgets Now: first work = spending money  co-finance back No check on what you do with money received back as already justified Half-yearly reporting (link activity – finance) Based on Application => flexibility, but ultimately always link back to application Co-Finance - but not „in cash” Everything invoiced 100% – co-finance on ALL budget items Staff (also in public institutions) => based on timesheets, NOT overheads External => strictly based on Public Procurement Rules in each country

7. Part-financed by the European Union (European Regional Development Fund) Project Reporting: process Joint Technical Secretariat Progress Report Control on partner level 2 months Control on project level 1 month LP FLC report and confirmation FLC PP2 FLC PP1 FLC PP3 Validation of expenditure FLC report and confirmation EPCO

8. Part-financed by the European Union (European Regional Development Fund) 8 Reporting timeline Anticipated….as no grant contract yet…. First Reporting Period 1: 12 Jun 2012 – 31 Mar 2013 Individual PP Report due: 31 May 2013 overall Progress Report due: 15 Jun 2013 Payment: approx. 4 months later Oct 13 Often clarifications => Aim – as little as possible Reporting Period 2: 01 Apr 2013 – 30 Sep 2013 Individual PP Report: 30 Nov 2013 overall Progress Report: 10 Dec 2013 Reporting Period 3: 01 Oct 2013 – 31 March 2014 Individual PP Report: 31 May 2014 overall Progress Report: 15 Jun 2014 Final Reporting Period 4: 01 Apr 2014 – 12 Sep 2014 – 12 Dec 2014 Individual PP Report due: 30 Dec 2014 / overall Progress Report due: Jan 2015

9. Part-financed by the European Union (European Regional Development Fund) Partnership agreement Content: General “contract” – pre-format by JTS Duties / rights of PP and duties / rights LP Decision-making rules Grant Contract (JTS-LP) Project Data Form / Application Cost-Share Agreement Work Plan with activities / budgets of all PPs Defines relationship LP–PPs To be signed BEFORE submission of Report No. 1 Same agreement for all ! Questions: Members of the Project Steering Committee? ALL PPs ? Majority Decision or Unanimously ?

10. Part-financed by the European Union (European Regional Development Fund) Detailed financial rules 1)First Level Control 2)Eligibility of Cost 3)Public procurement 4)Cost Sharing 5)Reporting

11. Part-financed by the European Union (European Regional Development Fund) 11 Designation of FLC Centralized system (Poland, Latvia & Sweden): No need for designation, no need to pay for FLC Decentralized or mixed FLC systems (Germany, Lithuania): Need for Identifying FLC and Obtaining a certificate of the national designation body Get your country-specific info from the BSR website: http://eu.baltic.net/Country_Specific_Information.1397.html

12. Part-financed by the European Union (European Regional Development Fund) Content 1)First Level Control 2)Eligibility of Cost 3)Public procurement 4)Cost Sharing 5)Reporting

13. Part-financed by the European Union (European Regional Development Fund) Budget lines BL 1 – Personnel BL 2 – External services BL 3 – Travel and accommodation BL 4 – Equipment and investment BL 5 – Other direct costs Budget flexibility rule

14. Part-financed by the European Union (European Regional Development Fund) Personnel costs of project staff Directly employed by project partners listed in the application form Basis: employment/labour contract Carrying out project activities Gross salary + employer’s obligatory contributions on a monthly basis! NON-ELIGIBLE Any voluntary remuneration and employer contribution Administration costs 14 BL 1 – Personnel

15. Part-financed by the European Union (European Regional Development Fund) 15 BL 1 – Personnel Time Sheets Calculation methods and tools of the BSR programme Time sheet for full time employee Time sheet for part-time employee Requirements for Time Sheets Separate Time Sheet for each employee (signed) Recording of hours on a monthly basis (for part-time employees also hours worked on other tasks) Briefly state the activities performed (remark “WP 3. 2” or “Activity 3.2.2” would be sufficient) – reference to WP is important !!!

16. Part-financed by the European Union (European Regional Development Fund) Budget lines BL 1 – Personnel BL 2 – External services BL 3 – Travel and accommodation BL 4 – Equipment and investment BL 5 – Other direct costs Budget flexibility rule

17. Part-financed by the European Union (European Regional Development Fund) Expenses paid by project partners to external providers  External = not employed by project partner institutions Basis: Contracts of work, supply contracts, service contracts Invoices/requests for reimbursement. Public procurement! NON-ELIGIBLE: Contracting between project partners Recoverable VAT is not eligible (status was declared in the Application Form) 17 BL 2 – external services

18. Part-financed by the European Union (European Regional Development Fund) Budget lines BL 1 – Personnel BL 2 – External services BL 3 – Travel and accommodation BL 4 – Equipment and investment BL 5 – Other direct costs Budget flexibility rule

19. Part-financed by the European Union (European Regional Development Fund) Travel and accommodation + subsistence allowances IMPORTANT for PartiSEApate !!!!  also for SPEAKERs if NO other payment  BUT better check with EPCO PRIOR to event…. Essential for project activities Most economic way of transport Observe national and institutional internal rules! Prior approval of travels outside the programme area and the EU! 19 BL 3 – Travel and accomodation

20. Part-financed by the European Union (European Regional Development Fund) Budget lines BL 1 – Personnel BL 2 – External services BL 3 – Travel and accommodation BL 4 – Equipment and investment BL 5 – Other direct costs Budget flexibility rule NOT RELEVANT IN PARTISEAPATE !!! => no budget.....

21. Part-financed by the European Union (European Regional Development Fund) Budget lines BL 1 – Personnel BL 2 – External services BL 3 – Travel and accommodation BL 4 – Equipment and investment BL 5 – Other direct costs Budget flexibility rule

22. Part-financed by the European Union (European Regional Development Fund) BL 5 – other direct costs Eligible Transnational transfer charges and bank charges Participation fees for external events Direct office running costs NON-ELIGIBLE: Overheads! Any general costs allocated on a percentage or pro rata basis Debit interest and exchange rate losses

23. Part-financed by the European Union (European Regional Development Fund) Budget lines BL 1 – Personnel BL 2 – External services BL 3 – Travel and accommodation BL 4 – Equipment and investment BL 5 – Other direct costs Budget flexibility rule

24. Part-financed by the European Union (European Regional Development Fund)  Reallocated amount (cumulated since project start) ≤ 20% or 40,000 EUR, whichever is higher NOT POSSIBLE: Changes of equipment/investment items Changes between project partners’ budgets BL1BL2BL3BL4BL5Total WP1Flexibility WP2Flexibility WPnFlexibility TotalFlexibility Total budget Budget flexibility rule

25. Part-financed by the European Union (European Regional Development Fund) 1)First Level Control 2)Eligibility of Cost 3)Public procurement 4)Cost Sharing 5)Reporting Questions please !

26. Part-financed by the European Union (European Regional Development Fund) Content 1)First Level Control 2)Eligibility of Cost 3)Public procurement 4)Cost Sharing 5)Reporting

27. Part-financed by the European Union (European Regional Development Fund) 27 Public procurement Launch your tenders at an early stage – procurement takes time! Programme requirements: Transparency, equality, objectivity You have to obey institutional, regional, national and EU regulations In any case: For contracts above € 5,000 apply the “Bid-at-three rule” (applicable mainly for BL 2 & BL 4) Only if public procurement procedures are observed costs for goods, services and works will be considered eligible by the FLC for funding under the BSR Programme!

28. Part-financed by the European Union (European Regional Development Fund) Value of purchase below the institutional, national and Community thresholds but Value of purchase above 5,000 EUR excl. VAT Collection of 3 offers Proper documentation 28 Public procurement: bid-at-three

29. Part-financed by the European Union (European Regional Development Fund) 29 Public procurement: thresholds Thresholds vary a lot, Community threshold for service contracts is € 200,000 (net) Below that threshold numerous national, regional and institutional thresholds exist Thus normally national, regional and institutional regulations need to be applied If none is applicable bid-at-three

30. Part-financed by the European Union (European Regional Development Fund) 1)First Level Control 2)Eligibility of Cost 3)Public procurement 4)Cost Sharing 5)Reporting Questions please !

31. Part-financed by the European Union (European Regional Development Fund) Content 1)First Level Control 2)Eligibility of Cost 3)Public procurement 4)Cost Sharing 5)Reporting

32. Part-financed by the European Union (European Regional Development Fund) 32 Extern. Service From the cost sharing agreement to the financial note Cost sharing

33. Part-financed by the European Union (European Regional Development Fund) 33 Reporting of shared costs and settlement of cost shares between PP Cost sharing Payment WITH cost-share Implementing Partner WITHOUT cost-share

34. Part-financed by the European Union (European Regional Development Fund) 1)First Level Control 2)Eligibility of Cost 3)Public procurement 4)Cost Sharing 5)Reporting Questions please !

35. Part-financed by the European Union (European Regional Development Fund) Content 1)First Level Control 2)Eligibility of Cost 3)Public procurement 4)Cost Sharing 5)Reporting

36. Part-financed by the European Union (European Regional Development Fund) Reporting: every six months Joint Technical Secretariat Progress Report Control on partner level 2 months Control on project level 1 month LP FLC report and confirmation FLC PP2 FLC PP1 FLC PP3 Validation of expenditure FLC report and confirmation EPCO

37. Part-financed by the European Union (European Regional Development Fund) 37 Once more: Reporting timelines Anticipated….as no grant contract yet…. First Reporting Period 1: 12 Jun 2012 – 31 Mar 2013 Individual PP Report due: 31 May 2013 overall Progress Report due: 15 Jun 2013 Payment: Hopefully approx. 4 months later Oct 13 Often clarifications => Aim – as little as possible Reporting Period 2: 01 Apr 2013 – 30 Sep 2013 Individual PP Report: 30 Nov 2013 overall Progress Report: 10 Dec 2013 Reporting Period 3: 01 Oct 2013 – 31 March 2014 Individual PP Report: 31 May 2014 overall Progress Report: 15 Jun 2014 Final Reporting Period 4: 01 Apr 2014 – 12 Sep 2014 – 12 Dec 2014 Individual PP Report due: 30 Dec 2014 / overall Progress Report due: Jan 2015

38. Part-financed by the European Union (European Regional Development Fund) 38 Reporting: timeline The BSR Programme is strict with the deadline as they fear de-commitment of funds for the Programme EPCO offers pre-check of your cost-itemisation list and financial report before you submit it to your FLC (ideally 2 weeks after end of reporting period)

39. Part-financed by the European Union (European Regional Development Fund) 39 Every Partner needs to submit by 31 May 2013 to EPCO / Financial Manager the following docs – in electronic format AND scans/hard copies !!: Cost Itemisation List Confirmation of Control Activity Progress Report Internal Control Report (FLC must use BSR template) Control Checklist (FLC must use BSR template) Project Partner Report Reporting: obligatory documents from every PP

40. Part-financed by the European Union (European Regional Development Fund) 40 Reporting: what do you need to keep? Please do not send supporting documents such as: Time Sheets Invoices Travel expense reports etc. They are checked by your FLC and need to be kept by you until the end of 2025 for a possible second level audit! Please always keep copies of the “FLC docs” that you have submitted to the LP

41. Part-financed by the European Union (European Regional Development Fund) 41 Reporting: principle Your FLC controls your expenditure, thus it is not a pure audit The FLC compares the planned activities and related budget (as per Application Form) with the realized activities (activity report) and expenditures (financial report) Thus Progress Reports should relate to the original work plan / budget even if there is some flexibility The FLC is not a qualitative control

42. Part-financed by the European Union (European Regional Development Fund) Reporting: templates The template for the Project Partner Report, which comprises the templates for the Cost Itemisation List, the confirmation of control and the activity report, will be developed by EPCO individually for each partner and sent to you by February / March 2013 Templates for control report and control checklist are not individualized and don’t change and will be send to you only once

43. Part-financed by the European Union (European Regional Development Fund) Template: cost itemisation list List all expenditure (all BL) Use this to submit your supporting docs to your FLC VAT: only if it cannot be recovered by any means (check your Partner Declaration) National currency: official currency code Exchange rate: monthly accounting exchange rate of the European Commission (4 digits after decimal point) WP & BL: drop-down list

44. Part-financed by the European Union (European Regional Development Fund) Template: confirmation of control Do not include your cost share in eligible own expenditure that you declare to your FLC! Only the Implementing Partner needs to obtain a separate confirmation of control for the cost sharing scheme Your cost share is included at LP level

45. Part-financed by the European Union (European Regional Development Fund) 45 Other useful tools Time Sheet Template Bid@3 sheet for documenting procurement of external services Your normal travel expense reports (according to institutional / national requirements)

46. Part-financed by the European Union (European Regional Development Fund) 1)First Level Control 2)Eligibility of Cost 3)Public procurement 4)Cost Sharing 5)Reporting Questions please !

47. Part-financed by the European Union (European Regional Development Fund) Sources of information / contacts Programme Manual: Download from the BSR website http://eu.baltic.net/Programme_document.98.html For country-specific questions: your national contact point http://eu.baltic.net/Country_Specific_Information.1397.html Soon: the PartiSEApate website Soon: EPCO