25-26/11/2010 essnet training budapest essnet training part 3 – financial issues p. jacques

25-26/11/2010 ESSnet training Budapest

ESSnet Training

Part 3 – Financial Issues

P. Jacques


Eligible Costs Criteria

incurred during the duration of the action, with the exception of costs relating to final reports and certificates on the action’s financial statements and underlying accounts

connected with the subject of the grant agreement and they are indicated in the estimated overall budget of the action;

necessary for the performance of the action covered by the agreement;

identifiable and verifiable, in particular being recorded in the accounting records of the partner and determined according to the applicable accounting standards of the country where the partner is established and according to the usual cost-accounting practices of the partner;

comply with the requirements of applicable tax and social legislation; are reasonable, justified, and comply with the requirements of sound

financial management, in particular regarding economy and efficiency


Eligible costs Only costs generated during the lifetime of the action can be eligible. The

period during which the action runs determines the period of eligibility of the corresponding costs.

Costs related to preparing and submitting the proposal can never be charged to the action.

No grant may be awarded retrospectively for actions already completed; A grant may be awarded for an action which has already begun only where

– the applicant(s) can demonstrate the need to start the action before the agreement is signed, (stated in the grant application and formally accepted by the grant evaluation committee)

– then the period of eligibility of costs will start no earlier than the date on which an admissible grant application is submitted.

Exception for costs incurred in relation to final reports as well as audit certificates on the final financial statements. These last costs may be incurred during the period of submission of reports and other documents referred to in Article I.5 – Submission of reports and other documents.


Eligible costs categories (1)

staff assigned to the action– permanent or temporary staff employed by the partners– provided that this does not exceed the average rates corresponding to the

partner's usual policy on remuneration – An effective time-recording system (a system which certifies the reality of

the hours worked) is a requisite for the eligibility of the costs - Working time to be charged must be recorded throughout the duration of the action (contemporary registration needed) by any reasonable means (e.g. timesheets).

– indication of number of working days per year • Number of days in the year 365• Weekends -104• Annual holidays -25 • Legal holidays -15 • Illness/other -11 • Workable days in a year 210

– the salary costs of personnel of national administrations are eligible to the extent that they relate to the cost of activities which the relevant public authority would not carry out if the project concerned were not undertaken


Eligible costs categories (1) staff assigned to the action

When filling in the application:- In the excel file:

- please specify daily or hourly rate by clicking on the cell then on the arrow as indicated below

- please specify man-days or hours by clicking on the cell then on the arrow as indicated below

- please insert the staff function as indicated below.

!

To insert a row below: click on a yellow cell and CTRL+SHIFT+B

Nb of persons [A] Person/Days [B] Daily [C]SubTotal[AxBxC] To delete a row: click on a yellow cell and CTRL+SHIFT+D

0.00 €

0.00 €0.00 €

0.00 €

0.00 €

0.00 €

0.00 €

1. Costs of staff assigned to the action

Operational Staff

Administrative staff

Permanent staff

Function / Category

Sub-Total permanent staff

Sub-Total temporary staff

Temporary staff

Permanent staff

please specify man-days or hours by clicking on the cell then on the arrow

please specify daily or hourly rate by clicking on the cell then on the arrow

insert staff function



To insert a row below: click on a yellow cell and CTRL+SHIFT+B

Nb of persons [A] Person/Days [B] Daily [C]SubTotal[AxBxC] To delete a row: click on a yellow cell and CTRL+SHIFT+D

0.00 €

0.00 €0.00 €

0.00 €

0.00 €

0.00 €

0.00 €

1. Costs of staff assigned to the action

Operational Staff

Administrative staff

Permanent staff

Function / Category

Sub-Total permanent staff

Sub-Total temporary staff

Temporary staff

Permanent staff

please specify man-days or hours by clicking on the cell then on the arrow

please specify daily or hourly rate by clicking on the cell then on the arrow

insert staff function

!

1.5 Distribution of manpower for the duration of the project

Please indicate in the table below the number of person-months over the duration of the planned work, for each work package, for each participant. Identify the work-package leader for each WP by showing the relevant person-month figure in bold.

Work package

Co-ordinator / Co-partner

WP1 WP2 WP3 WP… WP… WPX TOTAL per Beneficiary

1. Co-ordinator

2. Co-partner 1

3. Co-partner 2

4.

5.

6.

TOTAL

staff assigned to the action When filling in the

application:

In the table showing the distribution of manpower (1.5):

• please make sure that the person months or hours declared in this table are coherent with the person hours or days declared in the excel file. There must be coherence of person months or days between these two tables

• please also specify under this point the average number of hours/day and days/month for your institute



Travel and subsistence costs– directly linked to the project – clearly identifiable and pertaining to the implementation of

the action– based on the real costs incurred – Travels outside EU should have prior agreement of the

Commission unless referred to in the technical proposal– In case the partner has no usual practices on travel costs,

the travel and subsistence allowances for staff taking part in the action shall not exceed the scales approved annually by the Commission


Eligible costs categories (2) Travel and subsistence costs

When filling in the application form please make sure:

- In the deliverables of the work package concerned: to clearly indicate all meetings involving travel by specifying the meeting n°, date/year (if known), destination, participating countries.

- In the excel file: for each travel add the WP and Meeting number as follows:

!

Means of transport Origin Destination Nb of persons [A] Unit cost [B] SubTotal [AxB]

WP1-1: PLANE Rome Luxembourg 2 600.00 1,200.00 €

WP5-1: PLANE Rome Budapest 3 500.00 1,500.00 €

2,700.00 €

Number of persons [1] Days [2] Nights [3]Daily allowance

[4]Hotel allowance [5]

SubTotal [6]=[1x(2x4)+(3x5))]

2 3 2 92.00 145.00 1,132.00 €

3 2 1 72.00 150.00 882.00 €

2,014.00 €4,714.00 €

Subsistence costs

Sub-Total subsistence costs

Total Travel and subsistence costs

Sub-Total travel costs

Travel costs

2. Travel and subsistence expenses for the staff involved in the action



Purchase cost of equipment– Only the portion of the equipment's depreciation corresponding to

the duration of the action and the rate of actual use for the purposes of the action may be taken into account by the Commission.

– Partners shall inform the Commission about their internal rules on depreciation of equipment

– partner must detail in the "application form" the price of purchasing of the equipment, the rule of depreciation and the rate of actual use for the purposes of the action

– equipment expenses = (A / B) x C x D• A = duration in months during which the equipment has been

used within the framework of the project• B = depreciation period• C = real cost of the material excluding VAT• D = percentage of use of the equipment on the project


Eligible costs categories (4) Costs of consumables and supplies

– provided that they are identifiable and assigned to the action– cost of consumables and supplies supported by the co-ordinator for to the

management of the project or dissemination costs are eligible if they can be identified

Costs entailed by other implementation contracts– costs of subcontracting or provision of services as part of the action

(consultancy fees, provision of external staff, hire of material or specific equipment, production of documents, studies, etc.).

– Core elements of the project cannot be subcontracted – The partner must, at least, be in a position to demonstrate that he has

chosen the subcontractor offering the best value for money in compliance with the principles of transparency and equal treatment of potential contractors and taking care to avoid any conflict of interests . National public bodies have to follow their national public procurement rules

– Extensive explanations are necessary when the value of the subcontract exceeds 20% of the total estimated value of the action (in 2010: value per partner!)

– external experts or consultants who work on the action and are fully paid by the partner on the basis of an invoice shall be considered as a subcontracting cost


Eligible costs categories (4) Costs entailed by other implementation contracts

When filling in the application:- In the excel file: please put any subcontracting as indicated below

SubTotal

0.00 €

0.00 €

0.00 €

Name of subcontractorBrief description of tasks subcontracted

Total Costs entailed by other implementation contracts (subcontracting)

5. Costs entailed by other implementation contracts (subcontracting)

!


Eligible costs categories (5) Any other direct costs

– dissemination of information, specific evaluation of the action, audits, translations, reproduction, cost of events organised by partners in the context of the action

– costs for participation of National Statistical Institutes not participating in the ESSnet project to conferences or training events organised by the ESSnet partners and costs for participation to events organised by third parties, etc.) subject to the prior written approval of the Commission

– a sufficient level of detail has to be indicated in the application form to enable the verification of the estimations made

– specific costs incurred by the co-ordinator for fulfilling his responsibilities in his capacity of body responsible for the overall management of the action and the coordination of the co-partners

– costs relating to the preparation of final technical and financial reports and costs relating to audit certificates but not later then the date required for submitting the final report as determined in the grant agreement

– if the Community contribution is EUR 750 000 or more a certificate on the financial statements and underlying accounts, produced by an approved auditor or in case of public bodies, by a competent and independent public officer is compulsory


Eligible costs categories (5) Any other direct costs

When filling in the application:

- In the excel file: please detail any other direct costs as indicated here

!

Quantity [A] Unit cost [B] SubTotal [C]=[A]*[B]

0.00 €

0.00 €

0.00 €

0.00 €

0.00 €

0.00 €

0.00 €

0.00 €

0.00 €

0.00 €

0.00 €

0.00 €

0.00 €

0.00 €

0.00 €

Means of transport Origin Destination Nb of persons [A] Unit cost [B] SubTotal [AxB]

0.00 €

0.00 €

0.00 €

Number of persons [1]

Days [2] Nights [3] Daily allowance[4] Hotel allowance [5]SubTotal

[6]=[1x(2x4)+(3x5))]

0.00 €

0.00 €

0.00 €

Quantity [A] Unit cost [B] SubTotal [C]=[A]*[B]

0.00 €

0.00 €

0.00 €0.00 €

0.00 €

0.00 €

Costs of reports

Dissemination (workshops, …)

Travel costs

Sub-Total travel costs

Description of item

Others

Sub-Total subsistence costs

Sub-Total rent or leasing

Sub-Total external audit costs

Subsistence costs

Sub-Total costs of translation

Costs of translation

Sub-Total information costs

Sub-Total costs of reports

Total other direct costs

Rent or leasing

External audit costs (compulsory for grants exceeding EUR 300 000)

Other costs

Sub-Total others

Total direct costs

Sub-Total other costs

6. Other direct costs

Information costs (printing, dissemination etc.)


Eligible costs categories (6)Indirect costs of implementation

– Flat-rate funding fixed at not more than 7% of the total eligible direct costs

– 2009 rule : However in cases where the cost of subcontracting represents more than 20% of the total cost of the action the indirect costs should be calculated from all other direct costs excluding subcontracting

– 2010 rule: However in cases where the cost of subcontracting per partner represents more than 20% of the total cost of the partner the indirect costs for the partner should be calculated from all other direct costs excluding subcontracting

Important: All costs in the excel file should be justified in the technical part of the proposal just as any costs appearing in the technical part must be detailed in the excel file.


Commission grant Maximum amount of any grant is the total amount of actual

eligible costs Co-financing is obligatory

– The minimum co-financing percentage is indicated in the invitation letter to submit proposals

– The minimum requirement co-financing applies only at the project level. Similarly, the budget must be balanced at the project level, not at the level of each individual partner.

Estimate of costs and income– All costs must be given in euro and should exclude value-added tax

(VAT), unless the applicant can show that he is unable to recover it according to the applicable national legislation

– Estimation of eligible costs of the action must be shown in detail in the estimated budget included in the "Eurostat Multi beneficiary grant application form" and subsequently in Annex II of the MBGA

– The pro rata rule requires that, where actual allowable expenditure is less than the estimate of action costs, the Commission grant will be limited to the percentage indicated in the agreement.


Payments

Pre-financing – Will not normally be made for Community contributions of less than

EUR 100 000.

– However, at the specific request of the co-ordinator, pre-financing may be paid for grants of more than EUR 50 000.

– where applicable, 40% of the amount of the grant awarded.

– Automatic after signature of the contract.

Final Payment– A copy of the final situation of the income and expenditure for the action,

certified as being true and correct by a duly authorised representative of the co-ordinator, is to be submitted within the deadline laid down in the agreement (normally 45 days).

– Actual expenditure and income shown in the financial statements in national currency are converted into Euros at the exchange rate established by the Commission and published in the Official Journal of the European Union applicable on the first working day of the month following the end of the action

25-26/11/2010 ESSnet training Budapest 17

Part 3 – Financial Matters

THANK YOU FOR YOUR ATTENTION

For further questions:

[email protected]

25-26/11/2010 essnet training budapest essnet training part 3 – financial issues p. jacques

Documents

exception of costs

corresponding costs

eligible costs categories

salary costs of personnel

grant agreement

final reports

period of eligibility

completeda grant