part-financed by the european union eligibility of expenditure joint technical secretariat...
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Part-financed by the European Union
Eligibility of expenditure
Joint Technical Secretariat
Information Seminar for Latvian Project PartnersRiga, 29 April 2009
2Information Seminar for Latvian Project Partners, Riga, 29 April 2009
Content
1. Budget line specific rules
2. Horizontal rules& Use of the Euro (exchange rate system)
3. Management and accounting tool: Cost itemisation list
3Information Seminar for Latvian Project Partners, Riga, 29 April 2009
Content
1. Budget line specific rules
2. Horizontal rules& Use of the Euro (exchange rate system)
3. Management and accounting tool: Cost itemisation list
4Information Seminar for Latvian Project Partners, Riga, 29 April 2009
Budget line specific rules
BL1 – Personnel
BL2 – External services
BL3 – Travel and accommodation
BL4 – Equipment and investment
BL5 – Other direct costs
5Information Seminar for Latvian Project Partners, Riga, 29 April 2009
project data form
accounting (cost itemisation list)
progress report
0
1
2
3
4
5
TOTAL: 510,000.00 398,358.00
--Other example WP 150,000.00 32,154.00
Example WP 200,000.00 316,546.00
Comm. & Info. 50,000.00 1,647.00
Man. & Admin. 100,000.00 2,313.00
Preparation 10,000.00 45,698.00
(BL1) (BL2)
BUDGET LINES (EUR)
Personnel External servicesWork Packages
BudgetPrevious reports
Current report
Remaining budget
[Euro] [Euro] [Euro] [Euro] [% ] [Euro]
0 Preparation 10,000.00 5,000.00 5,000.00 50.0 5,000.00
1 100,000.00 1,000.00 6,000.00 7,000.00 7.0 93,000.00
2 50,000.00 500.00 1,500.00 2,000.00 4.0 48,000.00
3 200,000.00 0.00 13,000.00 13,000.00 6.5 187,000.00
4 150,000.00 100.00 70,000.00 70,100.00 46.7 79,900.00
5 0.00 - 0.00
510,000.00 6,600.00 90,500.00 97,100.00 19.0 412,900.00TOTAL
Comm. & I nfo.
Example WP
Other example WP
BL 1 - Personnel [ERDF]
Work packageAccumulated
Man. & Admin.
Budget line structure in …
6Information Seminar for Latvian Project Partners, Riga, 29 April 2009
Budget line specific rules
BL1 – Personnel
BL2 – External services
BL3 – Travel and accommodation
BL4 – Equipment and investment
BL5 – Other direct costs
7Information Seminar for Latvian Project Partners, Riga, 29 April 2009
BL1 – Personnel
• Personnel costs of project staff
– Directly employed by project partners listed in the project data form
– Carrying out project activities
• Documentation by
– Employment/labour contract
– Payslips/other adequate accounting documents
– Time sheets
– Other documents required by FLC
8Information Seminar for Latvian Project Partners, Riga, 29 April 2009
BL1 – Personnel
• Unpaid voluntary work
– Carrying out project activities
– No remuneration at all
– Limit: project partner’s contribution (10%, 15%, 25%, 50%)
• Documentation
– Written agreement
– Time sheets
– Documentation of the work value estimation
– Other documents required by FLC
9Information Seminar for Latvian Project Partners, Riga, 29 April 2009
BL1 – Personnel
• NON-ELIGIBLE
– Any voluntary remuneration and employer contribution
– Unpaid overtime
– Administration costs
– Unpaid voluntary work of project partner’s own staff
10Information Seminar for Latvian Project Partners, Riga, 29 April 2009
Budget line specific rules
BL1 – Personnel
BL2 – External services
BL3 – Travel and accommodation
BL4 – Equipment and investment
BL5 – Other direct costs
11Information Seminar for Latvian Project Partners, Riga, 29 April 2009
BL2 – External services
• Expenses paid by project partners to external providers
• Basis:
– Contracts of work, supply contracts, service contracts
– Invoices/requests for reimbursement.
• Public procurement / Bit-at-three rule ! (=> horizontal rules)
• Advance Payments:
– Reported after partial of full delivery only
12Information Seminar for Latvian Project Partners, Riga, 29 April 2009
BL2 – External services
• NON-ELIGIBLE
– Contracting between project partners
– Contracting of employees of the project partner organisation
– Services provided by another unit of the project partner => BL 1
– Advance payments, which are not based on an invoice
13Information Seminar for Latvian Project Partners, Riga, 29 April 2009
#Start: 1
ERDF paid
NOR paid
ENPI paid
Nat. curr.
Exch. rate
[1 EUR = ?] [EUR]
of it
[national currency]
Payment date
WP & BL
TOTALamount paid
Specification of the invoice
Eligible net
amount
Eligible VAT
Creditor(e.g. registered name of the
supplier)
PP no°
I nternal no°
I nvoice no°
I nvoice date
Reporting period 01/01/2009 End: 30/06/2009 No.
* * * FR_ 2 - Specification of BL 2 'External services' * * *
Project 100 Acronym: TESTproject
project data form
itemisation
list
progress report
14Information Seminar for Latvian Project Partners, Riga, 29 April 2009
Budget line specific rules
BL1 – Personnel
BL2 – External services
BL3 – Travel and accommodation
BL4 – Equipment and investment
BL5 – Other direct costs
15Information Seminar for Latvian Project Partners, Riga, 29 April 2009
BL3 – Travel and accommodation
• Travel and accommodation + subsistence allowances
• Essential for project activities
• Most economic way of transport
• Observe national and organisation internal rules!
• Prior approval of travels outside the programme area and the EU!
• Documentation
– Agenda/programme of the meeting/event
– Travel report/equivalent memo
– Original tickets and other original documentary evidence
16Information Seminar for Latvian Project Partners, Riga, 29 April 2009
BL3 – Travel and accommodation
• NON-ELIGIBLE
– Costs exceeding national/EU limits
– Travel in first/business class except no other option was available
– Subsistence allowance for third persons
– Use of car or taxi if public transport is available
17Information Seminar for Latvian Project Partners, Riga, 29 April 2009
Budget line specific rules
BL1 – Personnel
BL2 – External services
BL3 – Travel and accommodation
BL4 – Equipment and investment
BL5 – Other direct costs
18Information Seminar for Latvian Project Partners, Riga, 29 April 2009
BL4 – Equipment and investment
EQUIPMENT
• Tool/device to carry out project activities
• Not used by project target group after completion of activities
• Depreciation costs only!
INVESTMENT
• Result of project activities
• Used by project target group after completion of activities
• Full costs
19Information Seminar for Latvian Project Partners, Riga, 29 April 2009
* * * FR_ 4 - Specification of 'I nvestments' (BL 4) * * *
#Start: 1
ERDF paid
NOR paid
Nat. curr.
Exch. rate
[1 EUR = ?] [EUR]
of it
[national currency]
TOTALamount paid
Specification of the invoice
Eligible net
amount
Eligible VAT
Creditor(e.g. registered name of the
supplier)
PP no°
I nternal no°
I nvoice no°
I nvoice date
Reporting period 01/01/2009 End: 30/06/2009 No.
* * * FR_ 3 - Specification of 'Equipment' (BL 4) * * *
Project 100 Acronym: TESTproject
project data form itemisationlist
progress report
20Information Seminar for Latvian Project Partners, Riga, 29 April 2009
BL4 – Equipment and investment
• NON-ELIGIBLE
– Equipment and investment financed by other financial instrument
– Fully depreciated equipment
– Equipment and investments not listed in the project data form
– Equipment and investments not complying with information and publicity rules
21Information Seminar for Latvian Project Partners, Riga, 29 April 2009
Budget line specific rules
BL1 – Personnel
BL2 – External services
BL3 – Travel and accommodation
BL4 – Equipment and investment
BL5 – Other direct costs
22Information Seminar for Latvian Project Partners, Riga, 29 April 2009
BL5 – Other direct costs
• ELIGIBLE
– Direct office running costs
– Transnational transfer charges and charges for project account
– Participation fees for external events
• Other expenses
– essential for project implementation
– exist because of the project
– supported by invoices directly attributable to the project/project staff
23Information Seminar for Latvian Project Partners, Riga, 29 April 2009
BL5 – Other direct costs
• NON-ELIGIBLE
– Overheads & other general costs allocated on a percentage or pro rata basis
– National transfer charges
– Exchange rate losses and debit interest
– Awards an prizes
– Expenditure belonging into an other budget line
24Information Seminar for Latvian Project Partners, Riga, 29 April 2009
1. Budget line specific rules
2. Horizontal rules& Use of the Euro (exchange rate system)
3. Management and accounting tool: Cost itemisation list
Content
25Information Seminar for Latvian Project Partners, Riga, 29 April 2009
Horizontal rules
• Rules applicable to all budget lines
• Chapter 5.1.6. of the Programme manual
• Regular updates (Nov 2008)
26Information Seminar for Latvian Project Partners, Riga, 29 April 2009
1. No contracting between project partners
• No contracting for carrying out project activities
• No profit margin
• Cost-sharing Contracting
27Information Seminar for Latvian Project Partners, Riga, 29 April 2009
2. Conflict of interest
• Person involved compromised by family, political etc. reasons
• All necessary precautions to be undertaken
28Information Seminar for Latvian Project Partners, Riga, 29 April 2009
3. Budget flexibility rule I.
BL1 BL2 BL3 BL4 BL5 Total
WP0 Flexibility
WP1 Flexibility
WP2 Flexibility
WPn Flexibility
Total Flexibility Flexibility Flexibility Flexibility Flexibility Total budget
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
29Information Seminar for Latvian Project Partners, Riga, 29 April 2009
4. Public procurement
• For PPs from the EU Member States and Norway
- Transparency, equality, objectivity
- Institutional, regional, national and EU regulations
• For PPs from Belarus
- PRAG
- Rule of Nationality, Rule of Origin
30Information Seminar for Latvian Project Partners, Riga, 29 April 2009
5. Bid-at-three rule
• Value of purchase below the institutional, national and Community thresholds
BUT
• Value of purchase above 1,000 EUR excl. VAT
• Collection of 3 offers
• Proper documentation
31Information Seminar for Latvian Project Partners, Riga, 29 April 2009
"BID-AT-THREE" support document
Selected x Selected Selected
Price: Price: Price:
The name of the offerer:
The name of the offerer:
The name of the offerer:
J ustification of the decision
Description of the purchased goods or
servicesOffer no 1 Offer no 2 Offer no 3
32Information Seminar for Latvian Project Partners, Riga, 29 April 2009
6. Publicity rules
• Commission Regulation (EC) No 1828/2006 (Article 8,9 and Annex I)
• Indication of the EU’s participation
• Indication of the BSR Programme 2007-2013
• Recovery of funds unduly paid!
33Information Seminar for Latvian Project Partners, Riga, 29 April 2009
8. Treatment of cash in-flows
2/17/2009
Cash in-flows
Revenues
Charges borne directly by users for the use of goods
and services provided by the project,e.g. tariffs, tolls, fees, rents.
Other cash in-flows
Private and public contributions and/or financial gains that are not considered
as revenues, e.g. sponsoring, government contributions
34Information Seminar for Latvian Project Partners, Riga, 29 April 2009
Examples of cash-in flows
Investments in infrastructure
• Revenues: User fee – fares paid by train travellers
• Other cash in-flows: Government contribution for construction
35Information Seminar for Latvian Project Partners, Riga, 29 April 2009
A. Treatment of revenues
• Project application
• Project implementation
- In the Progress report
- Information to FLC
- Deduction from the eligible expenditure
• Project closure
- Reference period/5 years following the project completion
36Information Seminar for Latvian Project Partners, Riga, 29 April 2009
Revenues in the Progress report
(a) Description [max. 300 characters]
WP:
EUR BSR fund:
* * * FR_ 7 - Revenues * * *
Link to the project
Source of revenues:Amount:
Project partner:
37Information Seminar for Latvian Project Partners, Riga, 29 April 2009
B. Treatment of other cash in-flows
• Public contributions
- NO double financing
- co-financing NOT higher than partner’s contribution
- funding under ONLY one operational programme
• Private contributions
- NOT ELIGIBLE
- e.g. airline company sponsoring air fares of PP
38Information Seminar for Latvian Project Partners, Riga, 29 April 2009
Use of the EURO (Exchange rate calculation)
• All funds in EUR
• Other currency to EUR
• Monthly accounting exchange rate of the European Commission
http://ec.europa.eu/budget/inforeuro/
• When converting 4 digits after the comma
• Chapter 10.4.5. of the Programme Manual
39Information Seminar for Latvian Project Partners, Riga, 29 April 2009
Content
I. Budget line specific rules
II. Horizontal rules& Use of the Euro (exchange rate system)
III. Management and accounting tool: Cost itemisation list
40Information Seminar for Latvian Project Partners, Riga, 29 April 2009
Cost itemisation list
• Management toolkit on the website (under General accounting)
http://eu.baltic.net/Press_corner.3264.html?
• Compulsory
• Adjustments are possible
• For the LP (entire project) and for each PP