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Projektfinanzen
– Die Programmregeln
First Level Control Seminar
Schwerin | 23 Mai 2019
Dana Hennings, Bartłomiej Wierzbicki, Managing Authority/Joint Secretariat
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Content
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1. Basics
2. Budget lines
3. State aid
4. Final remarks
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Basics
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5 Hierarchy of rules (Article 18(3) of Regulation (EU) No 1299/2013)
Programme
Manual
Hierarchy of rules
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 � Reimbursement principle;
NO advance payment for ERDF
& Norwegian funds
� supported by relevant documents
� real costs (exceptions: unpaid voluntary work, simplified cost options, depreciation)
� in line with the principles: efficiency, economy/effectiveness
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Eligibility periods
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• Contracting phase (min. 3 months) project costs
• Implementation phase (max. 36 months) fully eligible
• Closure phase (3 months) � limited eligibility
• Post-project phase � no costs eligible
�
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Budget lines
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Budget lines
Pro
ject
b
ud
ge
t
BL1 - Staff
BL2 - Office & administration
BL3 - Travel & Accommodation
BL4 - External expertise & services
BL5 - Equipment
(BL6 - Infrastructure & works)
(BL7 – Project specific activities)
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Budget lines
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1. Full-time and part-time staff
2. Unpaid voluntary work
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BL1 - Staff: Types
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� 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
Full time Part-time
BL1 - Staff: Full-time and part-time
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Gross employment costs
� Fixed in employment document or by law
� Non-recoverable
� Examples:
� Salary
� Other costs directly linked to the salary
BL1 - Staff: Eligible costs
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Full time Part-time
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Full time Part-time
� Employment document
� Job description
� Documentation of gross employment costs
� Payment proof
� Staff costs tool
+ method specific
documents
BL1 - Staff: Documentation
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Fixed percentage of time worked per month
� Percentage fixed in employment document in advance
☺No timesheet needed
☺Simple calculation
�Over- or undercompensation possible
BL1 - Staff: Calculation options
Part-time
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Calculated with a yearly hourly rate
� 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
BL1 - Staff: Calculation options
Part-time
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Calculated with a monthly hourly rate
� Monthly gross employment costs of actual month divided
by monthly working time set in employment contract
�Timesheet needed
�Hours for vacation and sick leave are not covered
BL1 - Staff: Calculation options
Part-time
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Calculated with a contracted hourly rate
� 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
�Hours for vacation and sick leave not covered
BL1 - Staff: Calculation options
Part-time
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Fixed % Annual
hourly rate
Contracted
hourly rate
Monthly
hourly rate
Fixedworking hours
Flexibleworking hours
Part-time
Do not mix the calculation methods!
Avoid double-financing!
BL1 - Staff: Calculation options
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a) Programme templates -> option in staff costs tool
b) Own internal time registration system
Minimum requirements:
• Completed by each employee individually
• Contain the amount of hours worked on daily basis
• Signed by employee and his/her supervisor
• Cover 100% of the working time of the employee
(incl. activities outside project)
Staff cost tool: Brief monthly summary describing the activities
BL1 – Staff: Timesheets
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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
BL1 - Staff: Unpaid voluntary work
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15%flat rate
of BL1 staff costs
Automatic calculation
Costs covered under BL2 cannot be reported
under any other budget line!
BL2 - Office & administration
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BL2 - Office & administration
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• Office rent
• Insurance and taxes of buildings and equipment (e.g. fire, theft
insurances)
• Utilities (e.g. electricity, heating, water)
• Office supplies
• General accounting
• Maintenance, cleaning and repairs; Security; IT systems;
• Communication (e.g. telephone, fax, internet, postal services)
• Bank charges, transnational financial transaction charges
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Types
• Travel costs (e.g. tickets, fuel, car mileage, toll, parking fees)
• Accommodation
• Daily allowances
• If not covered by allowances: Meals (other than catering!), Visa
Rules
• Most economic way of transport
• Every travel must be relevant for project activities
• Only for project staff � Speakers, experts, other guests in BL4
BL3 - Travel & Accommodation
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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
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BL3 - Travel & Accommodation
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Eligible
• Studies, surveys, legal/technical consultancy, translations
• Financial and/or project management services
• Project events (e.g. catering, premises, event management)
• First level control costs (for decentralised FLC systems)
• Travel and accommodation costs of guests with active role
• …
Not eligible
� Basic courses
� Services from other project partners/own staff
BL4 - External expertise & services
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• Office equipment
• IT hardware & software
• Furniture & fittings
• Laboratory equipment
• Machines & instruments
• Tools or devices
• Vehicles
• Other
BL5 - Equipment
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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
BL5 - Equipment
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BL5 - Equipment
Investment equipment in the application
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BL5 - Equipment
Investment equipment in the application
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• Only investment related costs
� Blocked if no investment outputs planned
• Full costs eligible
• Examples: Works for …
site preparation, delivery, handling, installation, renovation
BL6 - Infrastructure & works
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• Application
Indicative specification of contracts (sections 6.1, 6.2 and 6.3)
• Documentation
� Procurement
� Contracts and invoices
� Proof of delivery
� Payment proof
BL4, BL5 and BL6
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State aid
State aid
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What is State aid?
• Programme funds = public funds
• Company receives benefit over competitors
• In general: State aid is prohibited
• BUT: State aid instruments allow exceptions
� De minimis
� General Block Exemption Regulation (GBER)
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State aid
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What kind of State aid is granted?
• Project partners with State aid relevant activities
� Because: advantage over competitors through
first-hand knowledge, new customers, new services or
new products
� Entire partner budget affected
Example: Group of activity marked as State aid relevant38
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39 Example: State aid co-financing rate and instruments – Section 6.6
Example: Entire State aid budget – Section 6.740
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State aid
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What kind of State aid is granted?
• Project partners with State aid relevant investments
� Because: advantage over competitors through lower
investment costs
� Budget lines 5 and 6 affected
Example: State aid relevant investments in the work plan42
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Example: State aid relevant investments in BL643
Example: Only part of the budget is State aid relevant44
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State aid
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What has to be observed?
• Follow the requirements included in:
� Application (e.g. max. State aid budget available)
� Clarification form (e.g. project-specific requirements)
� De minimis award letter (e.g. retention period)
� GBER declaration (e.g. general and specific conditions)
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Layout of de minimis declaration and award letter46
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Layout of GBER declaration and GBER and SME declaration47
State aid
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What has to be observed?
• Accounting: Carefully separate State aid expenditure
� Note! Revenues not deducted
• Reporting:
� Separate State aid expenditure
� Provide details on State aid relevant activities
• State aid budget cannot be exceeded
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State aid
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What is the role of the first level controller?
For all State aid partners:
� State aid relevant activities in line with application form
� State aid expenditure correct in accounting system & report
� State aid budget of the project partner not exceeded
+ For GBER:
� Specific conditions complied with (cf. GBER declaration)
� Activities started after application was submitted to MA/JS
State aid
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What is the role of the first level controller?
For all partners:
� Other activities are of non-economic nature
• Activities, goods or services for
− which no market exists, or
− that could not be carried out by a private operator
which intends to make profit
• Infrastructure not exploited economically and available
for public use free of charge
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Extract from first level control report and checklists
First level control report and checklist/PP
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First level control report and checklist/LP
(Progress report, section 14.3)
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Final remarks …
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Every contract with externals must …
• comply with public procurement rules
• follow principles of
– transparency
– non-discrimination
– equal treatment
• contracts below national thresholds but > EUR 5,000 (net):
bid-at-three rule
Applies to private partners as well!
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Activities outside the EU & Programme area
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Do I need prior approval by MA/JS?
• Programme area & EU � NO
• Other countries � YES
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Please also consider…
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• Special rules for revenues & cash-in flows
• Visibility rules
• Retention period
� ~ 4 years after final payment (exact date from MA/JS )
� Stricter rules for State aid
• Originals or in versions “in conformity with the original on
commonly accepted data carriers”
• Durability & ownership of (investment) outputs
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Projektfinanzen – Die Programmregeln
Dana Hennings & Bartłomiej Wierzbicki
Finance Officer
Managing Authority/Joint Secretariat
Phone +49/381 45 484 5280 & -91
e-mail: [email protected]
www.interreg-baltic.eu
Interreg Baltic Sea Region believes
in an integrated and prosperous Europe for all