1. Part-financed by the European Union Cost sharing Baltic Sea Region Programme 2007-2013 Joint Technical Secretariat Information Seminar Riga, 9 November 2010

2. 2Information Seminar, Riga, 9 November 2010 Content Definition Procedure and documents: 1.Cost sharing agreement 2.Project data form 3.Implementing partner 4.Settlement 5.Reporting

3. 3Information Seminar, Riga, 9 November 2010 Definition Dividing part of total expenditure between > 2 project partners Transparent and equitable method Joint activities benefiting several project partners Actors: –Implementing partner (ImP) –Paying partner (PayP) –Lead partner (LP) + First level controllers

4. 4Information Seminar, Riga, 9 November 2010 Procedure and documents 1.Cost sharing agreement 2.Project data form 3.Implementing partner 4.Settlement 5.Reporting

5. 5Information Seminar, Riga, 9 November 2010 1. Cost sharing agreement Implementing partner Paying partner 1 Paying partner 2 Paying partner n Lead partner Information Cost sharing agreement

6. 6Information Seminar, Riga, 9 November 2010 Procedure 1.Cost sharing agreement 2.Project data form 3.Optional: Advance payment 4.Realisation of activities 5.Payment and accounting 6.Settlement 7.Reporting

7. 7Information Seminar, Riga, 9 November 2010 2. Project data form Partner shares to be included in partner budgets Indication of cost sharing for BLs 2 and 4

8. 8Information Seminar, Riga, 9 November 2010 Procedure 1.Cost sharing agreement 2.Project data form 3.Implementing partner 4.Settlement 5.Reporting

9. 9Information Seminar, Riga, 9 November 2010 3. Implementing partner: carrying out activities Contracting all external suppliers, and/or carrying out own work Ensuring compliance with eligibility rules Implementing partner e.g. Project Manager Employment contract e.g. External researcher Service contract etc.

10. 10Information Seminar, Riga, 9 November 2010 3. Implementing partner: expenditure Implementing partner e.g. External researcher (a) Invoice (b) Payment Accounting

11. 11Information Seminar, Riga, 9 November 2010 3. Implementing partner: reporting Cost sharing overviews for LP and paying partners Validation of expenditure by first level controller

13. 13Information Seminar, Riga, 9 November 2010 Procedure 1.Cost sharing agreement 2.Project data form 3.Implementing partner 4.Settlement 5.Reporting

14. 14Information Seminar, Riga, 9 November 2010 4. Settlement of shared costs Different ways of payment of costs by Paying partners a.Direct payment b.Deduction from grant re-imbursement c.Advance payment

15. 15Information Seminar, Riga, 9 November 2010 a) Implementing partner submits cost sharing invoice & overview a) that are validated by first level controller b) Paying partner pays its share 4a. Direct payment Implementing partner (b) Payment Paying partner (a) Invoice & overview FLC validation

16. 16Information Seminar, Riga, 9 November 2010 4b. Deduction from grant re-imbursement (I) a)Implementing partner submits financial note & overview that are validated by first level controller Implementing partner Paying partner (a) Fin. note & overview FLC validation

17. 17Information Seminar, Riga, 9 November 2010 4b. Deduction from grant re-imbursement (II) b) Lead partner –Receipt of grant from programme –Transfer to Paying partner its grant minus cost share –Transfer to Implementing partner its grant plus cost share (b) Grant + cost share Lead partner Implementing partner Paying partner (b) Grant - cost share Programme Grant

18. 18Information Seminar, Riga, 9 November 2010 4c. Advance payment a) Implementing partner submits advance payment invoice b) Paying partner makes advance payment Implementing partner Paying partner (a) Invoice (b) Payment

19. 19Information Seminar, Riga, 9 November 2010 Procedure 1.Cost sharing agreement 2.Project data form 3.Implementing partner 4.Settlement 5.Reporting

20. 20Information Seminar, Riga, 9 November 2010 7. Reporting procedure a) Implementing partner submits cost sharing overview to LP b) Partners submit partner reports: WITHOUT cost shares! c) Progress report: LP adds cost shares to each partner’s expenditure Risk of double-reporting!

21. 21Information Seminar, Riga, 9 November 2010 7. Project reporting and grant payment Lead Partner Programme (c) Project progress report including all cost shares (d) Grant Implementing partner Paying partner

22. 22Information Seminar, Riga, 9 November 2010 Special issues VAT only shared if implementing partner cannot recover VAT  No specification of VAT in the invoice/financial note for the paying partners! Impossible to share 100% of the project costs Norwegian and Belarussian partners’ costs to be shared by ERDF partners fall under the 10% rule (ERDF spent outside the EU) Cost sharing ≠ contracting between project partners

23. 23Information Seminar, Riga, 9 November 2010 Recommendations based on JTS experiences Implementing partner should send documents in due time 1.to its first level controller 2.to paying partners  Need enough time to check documents before submission of progress report. Lead partner shall be informed about cost sharing Double-check to avoid double-reporting of cost shares

24. Part-financed by the European Union Cost sharing Joel Kook Finance Officer E-mail: joel.kook@eu.baltic.net Phone: +49 381 45 484 5278 Information Seminar Riga, 9 November 2010