Seven European regions join forces to create new opportunities from the needs of an ageing population

Handbookimplementing and managing a CREATOR sub-project

August 2011

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Take a chance on…..................................................................................................................................2 Introduction..............................................................................................................................................3 About Creator ..........................................................................................................................................3

Programme area ...................................................................................................................................3 Programme funding .............................................................................................................................3 Programme priorities ...........................................................................................................................3 Cooperation..........................................................................................................................................3 Programme structure............................................................................................................................4 Objectives of Creator ...........................................................................................................................4 The selection procedure.......................................................................................................................5 Eligibility criteria.................................................................................................................................5 Project criteria......................................................................................................................................5

Workshops ...............................................................................................................................................7 Workshops Time and location Participants .........................................................................................7

Risk management.....................................................................................................................................8 Swot-analysis.......................................................................................................................................8

Tasks of lead participant and other participants ....................................................................................10 Contracting ............................................................................................................................................10 Sub-project meetings and cooperation...................................................................................................10 Changes in sub-project implementation ................................................................................................11 Reporting and controlling ......................................................................................................................11 The reporting procedure for sub-project participants ............................................................................12 Cash flow for CREATOR......................................................................................................................14 Sub-project closure ................................................................................................................................15

End date for the eligibility of expenditure .........................................................................................15 Financial management ...........................................................................................................................16

1. Staff costs.......................................................................................................................................16 2. Administration costs ......................................................................................................................16 3. Travel and accommodation............................................................................................................17 4. External expertise and services......................................................................................................17 5. Equipment......................................................................................................................................17

Project components................................................................................................................................18 CP1. Management and coordination..................................................................................................18 CP2. Communication and dissemination...........................................................................................18 CP3. Exchange of experience ............................................................................................................19

Other considerations ..............................................................................................................................19 VAT ...................................................................................................................................................19 Transnational financial transactions ..................................................................................................19 In-kind contribution ...........................................................................................................................19 Shared costs .......................................................................................................................................20 Accounting documents ......................................................................................................................21 Preparation costs................................................................................................................................21 Accounting for project expenditure ...................................................................................................22 Partnership funding............................................................................................................................22

Regional first level control ....................................................................................................................23

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Take a chance on… The increasingly ageing population is an unmistakable trend in Europe. While worrying, it also poses unique opportunities and allows for the creation of unlikely but still dynamic European partnerships. The demographic challenge is indisputable and an enormous challenge to tackle - a task which no one can attempt alone. Therefore seven European regions scattered throughout Europe have come together and agreed to focus exclusively on the ageing population. The needs of this population segment is steadily increasing but has so far been somewhat overlooked by the economic market and the political agenda. Through instruments such as technical innovations and structural changes we are able to respond to this future challenge today. I am convinced that there are countless ways in which to seize this opportunity, and this is where you come in. Your project ideas and your willingness to take on this challenge is the core of our programme. Our seven regions share this situation and we will attempt to undertake it collectively. What at first glance might appear to be worrying is in fact an overlooked opportunity to create an inspiring project with a creative and innovative approach.

Mats-Rune Bergström Programme manager

Seven European regions join their forces to create new opportunities from the needs of an ageing population as an opportunity to regional economic development. CREATOR programme provides unique opportunities to search for new possibilities by learning from each other and finding solutions together. Within four years CREATOR will implement six or up to eight projects with at least three cooperative participants/organisations from three participating regions. Projects shall concern the possibilities emerging from the needs of an ageing population. Possibilities can, for instance be innovations, products and services or be related to an increasing cooperation between the private and public sector in producing well being services. One idea could be completely new and another something already working and worth introducing to other regions. Final results will include recommendations and guidelines to design policy responses to demographic change. Cooperating regions will identify good practises that will have impact in regional policies through active involvement of, and dissemination to, policymakers across Europe.

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Introduction This handbook is a complement to you as sub-project participants in the CREATOR mini-programme. It will guide you through the most common obstacles you may face during the period of your project. Please keep in mind that the handbook will be updated throughout the programme period. Always stay updated and use the latest version of the handbook, available on the CREATOR website, www.creator7.eu. For questions not addressed in this handbook, we advise you to contact your regional coordinator or the Lead Partner. The handbook will address issues concerning project management and implementation, financial management and responsibilities of lead participants and participants. For communication activities, please consult the Communication Guide.

About Creator

Programme area CREATOR mini-programme is part of INTERREG IVC – an EU-programme established to help regions of Europe to work together to share their knowledge and experience. INTERREG IVC provides funding for all regions of Europe plus Switzerland and Norway (regional and local public authorities). In the CREATOR mini-programme seven European regions cooperate and represent four directions of the European map; Asturias in Spain in the west, Brescia in Italy in the south, Wielkopolska in Poland and North Hungary in the east, Västerbotten and Häme in Finland represent the north, and in the centre of Europe, Lorraine in France.

Programme funding The CREATOR mini-programme has been made possible by the INTERREG IVC and is Co-financed by the European Regional Development Fund and also by the seven cooperating regions: Asturias, Brescia, Lorraine, North Hungary, Wielkopolska, Häme, and Västerbotten.

Programme priorities The main priority of CREATOR is to exchange and transfer knowledge and good practice. An important issue is the creation of added-value at a European level, to strive for EU-wide relevance. Experiences and know-how generated through CREATOR should be relevant to organisations outside the cooperating regions. The goal of CREATOR is to see the ageing population as an opportunity to regional economic development.

Cooperation The core element in interregional cooperation is the exchange of experiences. Therefore a project in CREATOR mini-programme has to consist of at least three cooperating participants from three different participating regions. Projects with a cooperation of five or more organisations and regions will be prioritized in the selections procedure. Interregional

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cooperation supports “soft” cooperation where investment is not recommended. Six or up to eight projects will be implemented within the programme period.

Programme structure The CREATOR mini-programme is shaped as a group of regional coordinators and a Lead Partner. The Lead Partner of CREATOR forms the link to INTERREG IVC and the JTS/Managing Authority.

The Lead Partner of the CREATOR mini-programme is Länsstyrelsen Västerbotten, and the programme manager is Mats-Rune Bergström, mats-rune.bergstrom@lansstyrelsen.se. Each project must follow the so-called lead-participant principle, which means that among the number of participants who carry out the project, one is appointed to act as a Lead Participant and thus form the link between the project and the CREATOR mini-programme.

Objectives of Creator A project idea is required to relate to the programme’s objective about economic development opportunities related to the ageing societies. Creative regional policies addressing economic

development opportunities related to ageing societies. "CREATOR will focus on at

maintaining / further enhancing the competitiveness of

the regional economies and at ensuring the regions long-term social cohesion, mainly

through exploring further the specific challenges resulting from a further ageing of the

regional populations and through pro-actively addressing distinct economic development

opportunities that emerge from new needs of an increasingly ageing population”.

A project idea also has to relate to at least one of two sub-objectives:

1. Adaptation and further diversification of the regional level care and well being sector, focused on human resources.

To exchange regional-level experiences & to establish a joint in-depth work processes on an

“Adaptation and further diversification of the regional-level care/well-being sector to meet

the needs of an increasingly ageing population living in rural and/or sparsely populated

areas”, leading to a design of targeted policy strategies / support tools that help establishing

a more adequate proximity care service provision structure in the future.

2. Development of innovative and technology-intensive small and medium-sized

enterprises, specific products and services, focused on economic and technical oriented resources

To exchange regional-level experiences & to establish a joint in-depth work processes on

“Innovative/technology-intensive SMEs developing specific products / services meeting the

needs of an increasingly ageing population”, leading to a design of targeted policy strategies

/ support tools that help stimulating a closer interaction between existing regional innovative

systems and companies active on this particular market segment.

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The selection procedure After submission, each application will be subject to a two-step selection procedure. At first, projects will be checked against the eligibility criteria in order to ensure that they fulfil the technical requirements of the mini-programme. The eligibility assessment will be performed by the lead-partner and will assess as regards to: •Minimum number of participants from minimum number of regions •Budget between thresholds •All participants are bodies governed by public law.

After completion of the first step of the assessment, Evaluation Committee members will be informed about the ineligible applications. The Lead Applicants of these ineligible applications will receive a notification letter specifying the unfulfilled eligibility criteria. Only projects satisfying the eligibility criteria will be subject to quality assessment. The quality assessment is based on a scoring system and results in a ranked list of all the applications submitted. It will be carried out by each partner region with, if necessary, the assistance of external experts.

Eligibility criteria 1. Has the application form been submitted in due time in original and electronic versions, both versions being identical. Is a proof of sending provided (postal stamp or equivalent)? 2. Is the application complete and includes

a. the application form b. the co-financing statements for the lead partner and each partner c. budget forms

3. Is the application form dated and hand signed and fully and properly filled in according to the instructions. 4. Are all co- financing statements signed and dated (if available they should also be stamped and printed on headed letter paper) Is the name of the partner mentioned identical to the institution name mentioned in the application form? Does the sum stated in the statement at least cover the national co- financing amount (or the total amount in case of the partners not applying for INTERREG IVC , Creator cofinancing) indicated in the application form? Is the standard form included in the application pack used and, besides the fields to be filled, have no amendments been made to the text. 5. Is the project supported by the participants from at least three regions? The eligibility assessment is a yes or no process. This means that the eligibility assessment does not allow any flexibility in the way the criteria are applied.

Project criteria 1. Project addresses needs and demands in the participating regions that are related to CREATOR’s focus. 2. Project demonstrates a contribution to Project objectives and to Europe 2020.

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3. Project demonstrates an added value for strategic-level interregional co-operation among partner regions. 4. Project demonstrates an experienced, skilled and balanced partnership. 5. Project outputs and results demonstrate clear potentials for policy improvement and/or for good practice transfer. 6. Project outputs and results demonstrate an innovative component if compared to the situation existing in the regions. 7. Project outputs and results support equal opportunities and environmental sustainability. Important: The Steering Committee of Creator will make the final decision on which projects that shall be approved. The steering committee will have their meeting in Västerbotten on the 18th of November. Proposals which sent after the deadline are not eligible for evaluation. No extenuating circumstances will be taken into consideration.

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Workshops There are 7 workshops planned in Creator. Workshops 3, 4, 5 and 6 are mandatory for all of the project participants approved in the first call. For project approved in the second and third call, workshops 4, 5 and 6 are mandatory. The workshops are intended to facilitate the exchange of experience between sub project participants on the one hand and the participants and regional coordinators on the other. The 7th workshop is the final one and will put all of the results together.

Workshops Time and location Participants These are the mandatory work shops for CREATOR projects.

• Work shop #3: May 2011 in Brescia Working group and projects • Work shop #4: September 2011 in Asturias Working group and projects • Work shop #5: June 2012 in Wielkopolska Working group and projects • Work shop #6: Autumn 2012 in Häme Working group and projects • Work shop #7: 2013, Exact time and location not yet decided. (working group and

Lead participants of the projects)

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Risk management When implementing your CREATOR sub-project always keep risk management in mind. Remember, lead partner of CREATOR in Västerbotten and all regional coordinators are obliged to give you guidance. Don’t hesitate to ask questions in the work of building a group of participants, filling out the application form or during the projects implementation.

As lead participant you have certain responsibilities. You are signing the project contract and will during the project time be the main contact person for the lead partner in Västerbotten. Already when you are writing the application, try to be aware of the other participants. For example, make sure that all participating organisation are able to bear their costs one year in advance. Ask the lead partner in Västerbotten or the regional coordinators for information about the participating organisations. Look for strengths and weaknesses in the participating group and try to prepare your self of what could happen during the project time. But there are a lot of things not possible to foresee. A person or an organisation that from the beginning seems to be a solid participant, may after a while instead cause problems to the group. You have to be aware of changing circumstances. People might get sick, organisations could transform and people may change their work. Therefore, if you feel insecure about the situation, the work process, any of the participating organisations or there are difficulties in the cooperation, always contact the lead partner of CREATOR or any of the regional coordinators. Remember we are always here to give you guidance. It is important to identify the risks within the project early in the process to be able to prevent them as soon as possible. There are a number of methods to use in risk management depending on the situation and type of project. In any form of project there are three ways to handle the risks. 1. Monitoring 2. Prevent, Eliminate 3. Eliminate

Swot-analysis One example of risk management is the SWOT – analysis. Its main purpose is to identify strengths (S), weaknesses (W), opportunities (O) and threats (T). Within each part there are examples of keywords to take in to consideration. S Powerful Problem solving Fast taking decision paths W Undecided roles Indistinct directives Unengaged group of leaders

O Constructive solutions Development of competence

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T Your project participant gets another job, falls ill etc.

IMPORTANT If you have any concerns or questions about risk management please don’t hesitate to contact the Lead Partner.

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Tasks of lead participant and other participants The sub-project lead participant coordinates sub-projects and is responsible for the execution of the sub-project in accordance with the subsidy contract, the partnership agreement and with the INTERREG IVC rules and regulations. The lead participant is required to

• Sign the subsidy contract with the Lead partner (Västerbotten) • Coordinate and set up the partnership agreement between the participant and the lead

participant. • Sign the partnership agreement with the other sub-project participants • Compile the sub-project progress report and send it to the lead partner together with

all the necessary documents. • Documents include:

1. Progress report 2. control confirmation 3. financial reports 4. activity reports 5. output and result

• Coordinate all certification related requirements with regard to the sub-project participant report.

The sub-project participant is required to

• Sign the partnership agreement with the Lead participant • Prepare the six month sub-project progress report. • Deliver project output and results together with the sub project progress report • Have the sub-project progress report certified by an independent controller in

compliance with the country specific requirements.

Contracting

Subsidy contract • Signed between the Lead Partner and the Lead Participant • Stipulates the amount of financing received by the lead participant from the mini-

programme. Partnership agreement

• Signed between the sub-project lead participant and the other participants. • Clarifies tasks duties and responsibilities for each sub-project participant and their

cooperation.

Sub-project meetings and cooperation It is up to the sub-projects themselves to organize their cooperation in a manner relevant to their project. However, there are four mandatory work shops organized by the mini-programme in which sub-project participants will meet and exchange experiences throughout the projects duration.

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A project communication tool will also be presented to the approved sub-projects in order to facilitate the implementation and organisation of their sub-project.

Changes in sub-project implementation There is a possibility to change the project implementation if a sub-project has legitimate reasons to do to. The areas which are subject to change are:

- Partnership - Budget - Work plan

There are minor and major changes. If minor changes (e.g. change in contact details, rescheduling of activities, and budget deviation within the 10% flexibility rule) are required, the Lead Participant can include them in the progress report for that 6-month period. For major changes, a request for change has to be sent in to the Lead Partner explaining the justification for the change. In addition an application form for changes has to be filled in and submitted. 20% is the maximum budget change allowed. A major change is only allowed once. In order to facilitate the process of changing your sub-project implementation, please contact your regional coordinator as soon as this issue occurs. New participants have to sign a partnership agreement and co-financing statements. Withdrawing participants have to submit a withdrawal letter.

Reporting and controlling Sub-projects are required to submit one progress report per reporting period, January-June and July-December. As the joint CREATOR progress report has to be submitted to the JTS on April 1st and October 1st respectively, sub-project progress reports have to be submitted to the Lead Partner earlier than that. Exact deadline may vary in different regions. Therefore, consult your regional coordinator for further information. Only the lead participant in each sub-project will submit a progress report to the Lead Partner. However, documentation regarding activities, output and result in all regions within the sub-project has to be included, as well as a budget. In each sub-project, each participant (including the lead participant) has to have their costs certified by their first level control before the documents are submitted to the Lead Participant and later the Lead Partner. It is advised to let the regional coordinator look at the report before submitting it for certification by the first level control. The following is the reporting procedure in the CREATOR mini-programme:

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The reporting procedure for sub-project participants

Step 1

The sub-project participant (SPP) including the lead participant writes the financial report and submits it to the First Level Control (FLC) in their country/region. (Check with your regional coordinator to find out what documents your FLC requires. Some FLCs also wants to see the activity report.) The FLC approves the report and writes a control confirmation and a control checklist and sends it to the SPP. Step 2 The SPP submits the following to the Lead Sub-project Participant (LSPP):

• Activity report, • control confirmation, • control checklist and • List of Expenditure • In Member States with decentralised control systems, each SPP has to provide an approbation

certificate delivered by the approbation body designated by the Member State, for the chosen first level controller. If a new first level control body is appointed, a new approbation certificate has to be provided.

In addition, copies of all the following documents have to be sent to the SPPs regional

coordinator (RC).

SPP FLC

LSPP CLPP

SPP FLC

RC

LSPP SPP

RC

1

2

3

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Step 3 The LSPP compiles a joint progress report out of the submitted SPP activity reports. Then submits the following documents to CREATOR lead partner in Västerbotten (CLP):

• Activity report for the entire Sub-Project (SP) • List of expenditure from all participants (including lead participant) • Control confirmation from all participants (including lead participant) • Control Checklist from all participants (including lead participant)

LSPP CLP

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Cash flow for CREATOR In the CREATOR mini-programme the fiunds are transferred from the European Regional Development Fund, via INTERREGs Certifying Authority to the Joint Technical Secretariat in Lille (JTS), and finally to the Lead Partner of CREATOR. The Lead Partner then follows the lead participant principle which means that the funds will be transferred from the Lead Partner to the Lead participant of each sub-project. The lead participant, in turn, distributes the funds to the project’s participants in different regions. See below for a descriptive image explaining the procedure.

(image: INTERREG IVC Programme manual)

EXCEPTIONS TO THE RULE For project participants in Brescia, the funds will go via the Province of Brescia and then to the participant, meaning that the funds to Brescian participants will not pass through the lead participant of the project.

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Sub-project closure When your sub-project has come to an end the following measures need to be taken. Last progress report: as for all other reporting periods, sub-projects also have to submit an audited progress report for the last reporting period. This last progress report has to be submitted at the latest three months after the end date of the project. Nevertheless and because of the end date for the eligibility of expenditure, this last progress report (as well as the project final report below) is usually submitted earlier. The progress report template is available on the programme’s website in due time. Final report: after finalisation of the sub-project a final report has be submitted to the CREATOR Lead partner. This report provides information on the outputs, results and possible impacts of the sub-project. It has to be submitted at the latest three months after the end date of the sub-project. The final report template will be available on the programme’s website in due time.

End date for the eligibility of expenditure

It is important to note that the end date indicated in the application form is also the end date for the eligibility of expenditure. Therefore, all activities must be finalised and the related expenditure paid out (including payment for the financial control of the last progress report) before the end of the month stated as the finalisation month in the application form in order to be eligible. This information is very important for sub-projects in order not to envisage activities until the last minute. It is even recommended that no major activities take place within the three final months in order to ensure that this period is dedicated to the closing of the project. After the closure of all sub-projects a final seminar will be organized in the autumn of 2013. Some projects may be invited to this event. All expenses will be covered by the CREATOR mini-programme.

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Financial management

1. Staff costs The budget line involves personnel costs for the time that the organisations´ staff spends on carrying out the project activities (full-time or a certain percentage of total working time). The reporting of staff costs has to follow the following principles:

• The calculation has to be based on the actual salary rate (employee’s gross salary + employer’s charges in accordance with national legislation) of the individual employee. The calculation excludes any administration overheads.

• If a staff member works less than 100% of his/her actual working time for the project,

the calculation must be based on the hourly rate resulting from the actual salary rate divided by the total number of hours worked by the staff member as registered in institution’s time recording system. This hourly rate is then multiplied by the number of hours worked on project activities.

• Staff costs must be supported by documents such as working contract, pay slips,

payment proofs, calculation evidence for the determination of the staff time, time recordings and record of tasks, project specific time sheets.

• In case a staff member is involved in several EU-funded projects: the time spent on

other EU-funded projects (other project-specific timesheets or one timesheet showing time spent on all EU-funded projects + overall working time).

2. Administration costs Administration costs may include cost item such as; stationery, photocopying, mailing,

telephone, fax and internet, heating, electricity, office furniture, maintenance, office rent,

other administration expenditure necessary for the project. These costs may be direct or indirect general costs. Direct general costs can be identified as belonging directly to the project while indirect general costs (overheads related to the project’s activities) are calculated on a pro-rata basis. That is actual costs according to a duly justified, fair and equitable method that should remain the same during the whole implementation period. The allocation of the organisation’s eligible administration costs to the project could be done on the basis of the following keys:

• The ratio ”number of people working for the project/ number of people working in the organisation or department” or

• The ratio ”number of hours worked on the project/ number of hours worked in total in the organisation or department” or

• The ratio ”surface used by the personnel working for the project/ surface of the organisation or department”

The regulation also provides the possibility of using an average rate, which cannot exceed 25% of the costs which directly affect the level of the overhead (e.g. staff costs). The average

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rate should be properly documented and periodically reviewed. It should be capable of verification (based on factual elements in the accounting system which can be verified by a controller on basis of invoices and expenditure born directly by the project institution). No lump sums, overall estimations or arbitrary keys are allowed. The participant should agree the allocation key with their financial controller.

3. Travel and accommodation This cost category refers to the travel and accommodation costs of personnel employed by the participant organisations and relates to their participation in meetings, seminars or conferences taking place in the EU. (Trips to places outside the territory of the EU are

possible if they are explicitly mentioned and justified in the application form).

4. External expertise and services The term is applied to expenses paid by the participants on the basis of contracts/ agreement and invoices/ request for reimbursement. The term is applied also to external service providers who carry out certain tasks for the project because the participants lack the resources to carry them out themselves. These might include;

• external project coordination or financial management • external independent financial control • website design and hosting • drafting, lay out, printing of promotion material • external organisation of specific events • room rental and catering for specific meetings • interpretation/ translation of specific documents or meetings • studies and surveys on specific matters • the cost of external speakers/ external participants in project meetings and events if the

added-value of their participation and payment of costs can be clearly demonstrated Whenever a project purchases services, goods, equipment, etc. externally, public procurement

rules must be adhered to (including European public procurement rules and the relevant national and internal rules of the participant responsible for subcontracting). The rules may vary between the countries. The fundamental principles of public procurement are;

• transparency • non-discrimination • equal treatment • effective competition

The principles also apply to purchases of services and goods below the EU-threshold values. The adherence of public procurement procedures should be well documented; documents such as public procurement notes, terms of reference, offers/quotes, order forms, and contracts have to be available for financial control and audit purposes.

5. Equipment This budget line refers to the purchase of equipment necessary for a successful implementation of the project. The category usually refers to IT equipment such as computer or a printer necessary for project coordination and financial management purposes. These

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purchases have to respect public procurement rules. The most economic type of equipment has to be chosen. The equipment features/functions have to be in line with the actual context of use. As the purchase of equipment cannot be a core element, it should remain exceptional and, it is highly recommended that these costs do not exceed 5% of the total costs. Equipment items that have been initially planned in the application form can be reported:

- either as a single declaration at the time of purchasing the equipment, after receipt and payment or

- by depreciating the cost of the equipment, by applying national accounting regulations.

It has to be ensured that the items:

- have not already been financed by other subsidies (e.g. EU, national or regional) - have not already been depreciated and - are not already included as indirect costs in another category such as the

administration budget line. Generally, the purchase should be made well before the end of the project. The amount for equipment has to reflect the actual use of these items in the context of the project. If it is not exclusively used for project purposes, only a share of the actual cost can be allocated to the project. This share has to be calculated according to a fair, justified and equitable method. An inventory of the purchased items as well as the documentation of the method for reporting them (single declaration or depreciation, full or partial use for the project) has to be kept for accounting, control and audit purposes.

Project components Activities proposed by the project have to be organised into a certain number of components. Component 1 and 2 are dedicated to the implementation-related activities. Component 3 focuses on the content-related activities and is different according to the type of intervention selected.

CP1. Management and coordination The first component is dedicated to management and coordination tasks. It deals with all the activities related to the administrative, legal and financial activities. It is recommended that the management and coordination costs represent a reasonable share of the total budget and, in general, they should not exceed 20% of this budget.

- Finalisation and conclusion of the partnership agreement - Preparation of progress reports - Organisation of project’s group meetings - Monitoring and control of the incurred expenditure.

CP2. Communication and dissemination Component 2 is dedicated to communication and dissemination tasks. Activities carried out under this component are aimed at disseminating the sub-project’s activities and achievements outside the sub-project to the relevant stakeholders in Europe. For instance;

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- Publication and dissemination of joint leaflets/brochures/newsletters - Organisation of press conferences - Development of the project’s web site

CP3. Exchange of experience The component deals with the core element of the cooperation which is the ”Exchange of experiences dedicated to the identification and analysis of good practices”. It is under this component that the good practices developed by the participants in the domain tackled by the project have to be identified and exchanged. The programme does not have any specific requirement regarding the way the exchange of experience should take place. It is up to each project to organise activities in this component in order to ensure an efficient exchange of experience amongst the participants. For instance;

- Organisation of joint thematic seminars/ workshops/ conferences - Organisation of study/ site visits - Organisation of staff exchanges - Organisation of joint interregional ´training´ sessions - Production of joint thematic surveys/studies - Production of case studies/ good practice guides/ policy recommendations/ strategic

guidelines (this is required at the end of the exchange process) - Development of action plans - Joint development of regional policy tools - Joint implementation of pilot actions

Other considerations

VAT VAT does not constitute eligible expenditure unless it is genuinely and definitively borne by the participants. VAT which is recoverable by whatever means cannot be considered as eligible even it is not actually recovered by the participant.

Transnational financial transactions Charges for transnational financial transactions are eligible but interest on debt is not. Where the implementation of a project requires a separate account to be opened, the bank charges for opening and administering the account are also eligible. Fines, financial penalties, foreign exchange losses are not eligible.

In-kind contribution Contributions in-kind (e.g. through voluntary unpaid work) is not considered as eligible expenditure. Staff costs for personnel working in one of the participant institutions officially listed in the application form on the basis of an employment contract and receiving a regular salary do not count as in-kind contribution (but as a cash contribution) since staff costs are actually paid by the participant institution.

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Shared costs In some cases participants decide to share costs within the partnership (e.g. external project coordination, conference organisation, room rental, catering, website design and hosting, thematic studies). With regards to financial reporting and control of shared costs, the following procedure has to be followed:

- Each participant checks beforehand that their controllers agree with the foreseen shared costs.

- In the past, reporting shared costs has sometimes proved to be difficult. Some national

auditors refused to accept the sharing of staff and administration costs. It is therefore recommended to limit the shared costs to the costs falling within the scope of the budget line “external expertise and services” (which can be more easily reported in a transparent way).

- One of the participants takes on the responsibility, on behalf of the partnership, for

ordering and contracting in compliance with European, national and internal public procurement rules and for paying the expenditure on the basis of invoices or equivalent accounting documents.

- After payment, the responsible participant asks its own controller to confirm the total

amount of shared costs (100%).

- Upon receipt of the controller’s confirmation the responsible participant sends a letter to the other participants with whom costs are shared. The letter lists the total amount paid out by the responsible participant, each participant’s share of the cost and the calculation method used to obtain the participants’ shares.

- The letter is accompanied by the controller’s confirmation for the total amount of the

shared costs (100%) paid by the responsible participants.

- The letter is accompanied by a copy of the relevant documentation proving the eligibility and payment of the expenditure. For example:

For external expertise and service costs, copies of the public procurement documentation, the contract/ agreement, the experts or service provider’s invoice and a proof of payment (bank statement) for the amount paid by the participant to the expert or service provider should be provided to each participant sharing the cost. For staff costs, copies of the pay slips, information about time recording and copies of timesheets may be requested by each participant‘s controllers.

- Te participants pay their shares of the cost to the responsible participant and include

the expenditure (the related share) in their financial report, which is then validated by

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their controller. It is the responsibility of each participant to include their share of the common costs in their own financial report and to obtain confirmation from their own controllers (who can accept the shared costs by basing their opinion on the responsible participant controller’s confirmation).

Project participants who intend to share costs have to put down in a formal written document the type of costs to be shared, the participant responsible for contracting/ordering and the related payment and in addition, the reporting procedure. Participants should always consult their controllers beforehand.

Accounting documents The Lead Partner and the participants must ensure that all accounting documentation related to the project is available and filed separately. The Lead Partner must have an overview of; Who paid, what was paid, who verified and where the related documents are stored. All participants must store the documents related to the project in a safe and orderly manner for a

minimum period of three years after the payment of the final balance by the European Commission. The Lead Partner may ask for copies of accountancy documents from the participants. The following list gives an overview of accounting documents;

- Approved application form - Subsidy contract, partnership agreement - Relevant project correspondence (financial and contractual) - Progress reports - Details on budget by participant, list of declared expenditure by participant - Participant’s controllers´confirmations (and checklists/ control reports) - Bank account statements proving the reception and the transfer of EU funds - Invoices or documents of equivalent probative value (e.g. pay slips for staff costs) - Bank account statements/ proof of payment for each invoice - Method used by all participants outside the euro-zone for converting national currency

into euro - Proofs for delivery of services and goods; studies, brochures, newsletters, minutes of

meetings, translated letters, participant lists, travel tickets, etc. - Details of the calculation method used for shared costs - Evidence that the information and publicity requirements have been respected - First level control confirmation, control report including checklist, approbation

certificates in case of decentralised first level control system. - Equipment: record of assets, physical availability of equipment purchased in the

context of the project, calculation method in case of depreciation or if the equipment cost is allocated to the project on a pro-rate basis, documents related to public procurement.

Preparation costs Preparation costs can only be eligible if they were incurred between April 1st 2010 – September 24th 2010. Eligible costs are travel and accommodation and external expertise.

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Accounting for project expenditure Financial reporting from the Lead Partner to the JTS has to be made in euro. For participants located outside the euro-zone, the Lead participant and the participants must use one option for converting national currency into euro and this option should be used for the entire duration of the project. The option we have choosen for the Creator mini-programme is:

• The average monthly exchange rate set by the Commission of the last month of the reporting period is used. They are published on: http://ec.europa.eu/budget/inforeuro/index.cfm?Language=en

Partnership funding Under the INTERREG IVC programme, the eligible project activities are co-financed from the ERDF at either 75% or 85% depending on the Member State in which the participant is physically located. The other 25% or 15% have to be provided by the participants themselves. The sources of the participants’ own co-financing amount can be manifold. It can come from the participant’s ´own budget, or from other public sources at central, regional or local levels.

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Regional first level control Finland Finland has opted for a decentralised control system. The beneficiaries will have to propose an independent external controller to the following body : Ministry of Employment and the Economy P.O. Box 32 00023 Government Finland Mr Pekka Järviö Phone : + 358 10 60 64924 Fax : + 358 10 60 47027 E-mail : pekka.jarvio@tem.fi Spain Spain has chosen a decentralized control system. The beneficiaries from Spain will have to propose an independent controller who is :

• either registered in the official register of Auditors or • from an independent control unit doing controls for other European programmes,

The project participant from Spain will have to propose their controller to the following body : Ministrerio de Economia y Hacienda Poland : Poland has opted for a mixed system depending on the status of the Polish partners. If Marshall Offices, Voivodes, Ministries and Central offices are project participants, a decentralised control system is implemented. In this case, these bodies propose their independent internal controller, to the following body : Ministry of Regional Development Contact person : Marcin Lata E-mail : (secretariat) dwt@mrr.gov.pl Phone : +48 22 330 31 05 Fax : +48 22 330 31 56 In all other cases, a centralised control system is applied. Expenditure of Polish project participants will thus have to be checked and confirmed by the following body: Implementing Authority for European Programmes Contact person : Ms. Sylwia Tyszko Phone : + 48 22 461 88 04 E-mail : sylwia.tyszko@wwpe.gov.pl

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France France has chosen a decentralised control system. The beneficiaries will have to propose an independent controller (internal or external) to the following body: Région Nord-Pas de Calais Direction Europe Service Programmes INTERREG Hôtel de Région – 151 Avenue du Président Hoover - 59555 LILLE CEDEX Phone : +33 (0)3 28 82 70 59 or +33 (0)3 28 82 70 78 Fax : + 33 (0)3 28 82 70 55 E-mail : infocpn@nordpasdecalais.fr Sweden : Sweden has chosen a centralised control system. Expenditure of project participant from Sweden will thus have to be checked and confirmed by the following body : Tillväxtverket Joint Unit for Regional Structural Fund programmes Visiting address : Fyrvallavägen 1 SE-831 43 ÖSTERSUND Website : www.tillvaxtverket.se Italy : Italy has chosen a decentralised control system. The beneficiaries will have to submit their requests for the approbation of an internal or external controller to: Giuseppe Amoruso/Fortunato Varone Regione Calabria Piazza di Campitelli, 3 00186 Roma, Italy Phone : +32 (0) 2 2346262 Fax : +32 (2) 2346279 Email : interregivc@regcal.it, flcinterregIVC@regione.calabria.it Hungary : Hungary will set up a centralised control system. Expenditure of project participants from Hungary will thus have to be checked and confirmed by the following body : VÁTI Hungarian Nonprofit Limited Liability Company for Regional Development and Town Planning VÁTI Nonprofit Ltd. Central Control Unit Gellérthegy u. 30-32. Hungary – 1016 Budapest

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Contact person: Ms. Andrea Kramer Phone: +36 1 224 3234 E-mail: akramer@vati.hu

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Regional contact information

Västerbotten Leadpartner and regional coordinator of Västerbotten, Sweden Mats-Rune Bergström, Länsstyrelsen Västerbotten +46 90 10 70 00, mats-rune.bergstrom@lansstyrelsen.se Wielkopolska Regional coordinator of Wielkopolska, Poland Anna Maciołek, Marshal Office of the Wielkopolska Region, + 48 61 65 80 713, anna.maciolek@umww.pl North Hungary Regional coordinator of North Hungary, Hungary István Nagy, NORDA Non-profit LLC + 36 46 504 460 (525), nagy.istvan@norda.hu Brescia Regional coordinator of Brescia, Italy Laura Gaffurini, Provincia di Brescia + 39 39 3800 6901, lauragaffurini@yahoo.it 28 Lorraine Regional coordinator of Lorraine, France Dominique Lorrette, Direction des Politiques Contractuelles Nationales et Européennes +33 387 33 63 29, dominique.lorrette@lorraine.eu Häme Regional coordinator of Häme, Finland Arto Saarinen, Hämeen liitto, Regional Council of Häme +358 3 647 4055, arto.saarinen@hame.fi Asturias Regional coordinator of Asturias, Spain Jason Martinez, Instituto de Desarrollo Económico del Principado de Asturias – IDEPA +34 985 980 020, jasonmg@idepa.es

The CREATOR mini-program has been made possible by the INTERREG IVC and co-financed by the European Regional Development Fund

Information about CREATOR miniprogramme and it’s sub-projects you will find at:

www.creator7.eu