Financial management of the Baltic Sea Region INTERREG projects

Transcription

1 Financial management of the Baltic Sea Region INTERREG projects Interreg Baltic Sea Region Seminar for Russian partners Pskov 19 April 2018 Václav Kaplan, Managing Authority/Joint Secretariat Content 1. Payment scheme 2. Audit & control 3. Staff costs 4. Other costs 5. General eligibility rules 6. Reporting forms 7. Partner report 8. Project changes 2 1

2 Payment scheme 3 Co-financing rates Norway up to 50% Denmark, Finland, Germany & Sweden up to 75% Estonia, Latvia, Lithuania & Poland up to 85% Russia up to 85% 4 2

3 Advance payment 30% of the approved Programme co-financing Pre-conditions: signed Subsidy Contract signed Financing Agreement sufficient liquidity of the Programme 5 Interim payments Reimbursements of submitted & certified reports After approval of the complete progress report Reductions in case of significant underspending 6 3

4 Monitoring and payment Managing Authority/Joint Secretariat Checks of reports (content/financial) Lead Partner Receive payment from MA/JS Project Partner Receive payment from lead partner 7 Balancing of advance payments (At the latest) when 80% of the funds spent Payment above 80% - only as reimbursement Final balance after the submission of the final report 8 4

5 Audit & Control 9 Audit and control (I) European Commission Second level audit Managing Authority/Joint Secretariat First level control 10 5

6 Audit and control (II) First level control (FLC) All expenditure Different FLC systems Approbation bodies Validated expenditure cofinanced from the Programme Second level audit (SLA) Audit Authority/national auditors Selected sample of LPs/PPs SLA report = negative report with possible financial consequences: Responsibilities of Partners Lead partners 11 FLC approbation Project partner procurement FLC Approbation body Project partner/flc FLC specification Approbation certificate 12 6

7 Project budget FLC documentation (I) 1. First level control report and checklist 2. First level control certificate FLC on partner level unified templates for all controllers harmonized with other Programmes FLC documents to be sent to the project partner project partner sends a copy to the lead partner 13 Budget lines BL1 - Staff BL2 - Office & administration BL3 - Travel & Accommodation BL4 - External expertise & services BL5 - Equipment (BL6 - Infrastructure & works) (BL7 Project specific activities) 14 7

8 Staff costs 15 BL1 - Staff: Types 1. Full-time and part-time staff 2. Unpaid voluntary work 16 8

9 BL1 - Staff: Full-time and part-time Full time Part-time Employed by partner organisation Formally engaged in project activities 100% of the employee s working time is spend for project work < 100% of the employee s working time is spend for project work 17 BL1 - Staff: Eligible costs Full time Part-time Gross employment costs Fixed in employment document or by law Non-recoverable Examples: Salary Other costs directly linked to the salary 18 9

10 BL1 - Staff: Documentation Full time Part-time Employment document Job description Documentation of gross employment costs Payment proof Staff costs tool + method specific documents 19 BL1 - Staff: Calculation options Part-time Fixed percentage of time worked per month Percentage fixed in employment document in advance No timesheet needed Simple calculation Over- or undercompensation possible 20 10

11 BL1 - Staff: Calculation options Calculated with a yearly hourly rate Part-time Annual gross employment costs of previous 12 months divided by 1,720 hours Only need to calculate it once Over- or undercompensation possible Timesheet needed 21 BL1 - Staff: Calculation options Calculated with a monthly hourly rate Part-time Monthly gross employment costs of actual month divided by monthly working time set in employment contract Timesheet needed Closest, but not equal to real costs Vacation and sick leave are not covered 22 11

12 BL1 - Staff: Calculation options Calculated with a contracted hourly rate Part-time Hourly rate set in the employment contract multiplied with actual working hours Can only be used by staff that is paid on hourly rate basis Timesheet needed Vacation and sick leave not covered 23 BL1 - Staff: Calculation options Part-time Fixed working hours Flexible working hours Fixed % Annual hourly rate Monthly hourly rate Contracted hourly rate Do not mix the calculation methods! 24 12

13 BL1 - Staff: Unpaid voluntary work Documentation Signed agreement with voluntary worker Signed timesheets Staff cost tool Calculation Hourly rate Max. hourly rate for equivalent work Limit per partner Unpaid voluntary work < Own contribution Other essential expenditure (e.g. travel costs, material) can be reported in other budget lines 25 BL1 practical exercise Preparation 1) (if not done yet) download the staff costs tool from 2) Please open the staff cost tool (by using Adobe Reader) 26 13

14 BL1 - Staff cost tool exercise Please complete the staff cost tool for the following employee: Reporting period: no. 1 (1 March August 2017) Employee: Olga Examplova Currency: RUB Part-time employment: Annual hourly rate Start of employment in the organisation: 1 January 2010 Start of employment in the project: 1 April 2017 Total working time in this period: 950h Project working time (own time registration system): 20h Annual salary derived from accounting system: RUB 300, BL2 - Office & administration 15% flat rate of BL1 staff costs Automatic calculation Costs covered under BL2 cannot be reported under any other budget line! 28 14

15 BL3 - Travel & Accommodation Project employees belongs to BL3 Travel (e.g. tickets, fuel, car mileage, toll, parking fees) Accommodation Daily allowances If not covered by allowances: Meals (other than catering!) Visa!!! External experts/speakers/ belongs to BL4 Travel and accommodation Active role! Every travel must be project related!!! 29 BL3 - Travel & Accommodation Reporting documents Invoices or equivalent accounting documents of travel costs Payment proof Proof of reimbursement of costs to the employees where employees made a direct payment for travel 30 15

16 BL4 - External expertise & services Studies/ surveys IT systems & websites Training/ translations Promotion, communication Basic courses Legal/technical consultancy First level control Financial management Services from other partner/own staff Travel of externals Intellectual property rights 31 BL5 - Equipment Office equipment IT hardware & software Furniture & fittings Laboratory equipment Machines & instruments Tools or devices Vehicles Other 32 16

17 BL5 - Equipment 1. Equipment which is part of an investment Clear link to an investment output Full costs eligible 2. Other equipment Tools/devices to implement other project activities Depreciation/rental/leasing costs for period of use 33 BL5 - Equipment Investment equipment in the application 34 17

18 BL5 - Equipment Investment equipment in the application 35 BL4, BL5 and BL6 Application: Indicative specification of contracts (sections 6.1, 6.2 and 6.3) Partner reports & progress report: Expenditure for all contracts Overview of contracts above EU thresholds only Documentation: Procurement Contracts and invoices Proof of delivery Payment proof 36 18

19 Public procurement 1. Public entity or a legal entity which is subject to public procurement legislation => Legislation of Russian Federation 2. Other entities => Annex to Financing Agreement + Programme provisions e.g. => bid-at-three rule 37 General rules 38 19

20 All cost must be essential paid by a project partner and non-recoverable (e.g. VAT) NO sub-partners NO cost sharing paid in the eligible period supported by relevant documents real costs (exceptions: unpaid voluntary work, simplified cost options, depreciation) in line with the principles: efficiency, economy/effectiveness 39 Use of Euro & exchange rate All expenditure are reported in Euro For partners whose national currency Euro: monthly exchange rate in the month during which the partner report is submitted to the FLC one exchange rate per reporting period only set in the partner report Monthly exchange rate acc. to the InforEuro webpage of the EC: oreuro/index_en.cfm 40 20

21 Reporting forms 41 Data flow Contracts (services/ ), invoices, travel reports, tickets, payment proofs Employment contracts, job descriptions, salary slips, Accounting documents Staff costs tool Partner report incl. list of expenditure (=cost itemisation list) Reporting documents (PDF) Progress report aggregating PP reports BAMOS (online monitoring system) 42 21

22 Partner report - Sections Identification of the project / partner 3. Contacts 4. Activity report 5. Financial data to be copied from BAMOS 6. Project partner's generated revenues/net revenues 7. Expenditure per budget line 8. Summary 9. Exchange rate 10. Project partner confirmation & signature 11. FLC certificate 12. Summary of financial data for BAMOS 43 Progress Report (in BAMOS) Filled in by LP Compilation of inputs from partner reports Activity report Financial report based on section 12 of partner reports Selected documents to be uploaded to BAMOS 44 22

23 Documents in BAMOS Partnership agreement (by LP) FLC approbation (from PPs with decentralised FLC system) Subsidy contract incl. addenda (by LP) With each progress report (from each PP): Partner report FLC confirmation FLC report & checklist 45 Financial management of the Baltic Sea Region INTERREG projects Interreg Baltic Sea Region believes in an integrated and prosperous Europe for all Václav Kaplan Senior Finance Officer Managing Authority/Joint Secretariat Phone

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