SECTOR SKILLS ALLIANCES TOURISM AND CATERING

GRANT AGREEMENT NO. EAC - 2012 - 0634

PRESENTED BY DR SHYAM PATIAR

FINANCIAL MANAGEMENT

FINANCIAL MANAGEMENT IS BASED ON:

LLP Project Handbook

EACEA FAQ and Toolkit

Recommendations from the EACEA

General quality standards in EU project

management

Rules, frameworks agreed by the partnership

ELIGIBLE COSTS:

Incurred by member organisations of the partnership and recorded in

its accountancy

Relate directly to the implementation of approved activities

according to the work plan and are necessary for the execution of the

project

Must be foreseen in the estimated budget

Activities must take place in countries eligible to the LLP

Identifiable, verifiable, reasonable and justified (value for money)

Generated during the projects lifetime (01 January 2013 to 31 December 2014)

Properly reported and documented by the beneficiary

IN-ELIGIBLE COSTS:

Costs outside of the eligibility period

Costs which cannot be evidenced

Exchange rate losses

Return on capital

VAT (unless it can be recovered)

Costs already covered by other sources

Excessive or reckless expenditure

Opening and operating a bank account (transfer costs are eligible)

Costs for products without correct EU logo and disclaimer

Costs not timely recorded and paid

ELIGIBLE COSTS:

1. Direct costs:

1.1 Staff

1.2 Travel and subsistence

1.3 Equipment

1.4 Subcontracting

1.5 Other costs

2. Indirect costs

Total Budget

ELIGIBLE DIRECT COSTS:

Definition:

Statutory staff (permanent or temporary contract)

Temporary staff, recruited through specialised agencies

Legal representatives of organisations (owners, members of board etc.)

Calculation:

Real daily rates (according to national/institutional regulations, including

social charges, holiday payments but NOT bonuses, incentives etc.)

Must not exceed the daily rate ceiling of the EU

STAFF

ELIGIBLE DIRECT COSTS:

Justification:

Official declarations

Timesheets

Official payrolls

Proof of payment

STAFF

ELIGIBLE DIRECT COSTS:

Definition:

Real travel costs of staff in connection with the project, provided

most economical fares are used.

Calculation:

Real costs

When using the car, the cheapest of the following ways:

a) €0.22 per km

b) Price of bus, train, plane ticket for the same distance

Justification:

Copies of tickets/boarding passes, invoices/receipts, proof of

payments

TRAVEL

ELIGIBLE DIRECT COSTS:

Definition:

Subsistence costs for travelling staff in connection with the project

covering meals, hotels and local travel

Maximum eligible days (number of working days + 1)

Calculation:

Real costs (not exceeding ceilings of EU)

Lump sums (not exceeding ceilings of EU)

Declaration:

Official declaration of way of calculation

Proof of attendance

Copies of invoices, receipts, bank transfer etc.

SUBSISTENCE

ELIGIBLE DIRECT COSTS:

Definition:

Purchase, rent or lease of equipment (new or used), including

installation, maintenance and insurance costs if needed for achieving

the aims of the project

Calculation:

Costs have to be written off in accordance with the tax and accounting

rules applicable to the beneficiary

Only the portion of the equipment’s depreciation corresponding to the

duration of the project and the rate of actual use.

Declaration:

Offers, invoices and proof of payment

EQUIPMENT

ELIGIBLE DIRECT COSTS:

Definition:

Certain parts of the project carried out by an expert outside

the partnership (e.g. translations, printing, evaluation etc.)

Calculation:

Real costs based on one offer (up to €12,500)

€12,500 - €25,000 at least 3 tenders are required

€25,000 - €60,000 at least 5 tenders are required

For values over €60,000 national rules apply

SUBCONTRACTING

ELIGIBLE DIRECT COSTS:

Documentation:

Subcontract (including project name, project number, duration and content of

activity subcontracted, calculation of costs, signatures of all parties involved, date of

signing)

Invoice (including same issues as the subcontract)

Tenders (if applicable)

Proof of payment (copy of bank transfer)

Note: subcontract costs are clearly dedicated to certain activities

within the SSA-TC project – first of all, those activities have to be

implemented before using this money for other activities.

SUBCONTRACTING

ELIGIBLE DIRECT COSTS:

Definition:

All other direct costs, generally eligible and not covered by

any of the categories above (travel costs for external experts, costs of

conference/meeting organisation etc.)

Calculation:

Real costs

Justification:

Copies of invoices, receipts, offers etc.

Proof of payment

OTHER COSTS

INDIRECT COSTS:

Definition:

Costs not directly linked to the project but still necessary for its

implementation such as:

Administration (PC’s, laptops etc.)

Communication and infrastructure (telephone, internet, fax, rent etc.)

Office supplies

photocopies

Calculation / Justification:

Lump sum (max 7% of total budget) – no justification needed

important:

Only if beneficiary does not yet receive any operating EU grant

REPORTING:

Issues of reporting:

Content development

Dissemination activities

Documentation and justification of expenditures

Means of reporting:

Official formats of the LLP

Declarations provided by the promoter (for staff costs, subsistence,

time sheets, VAT declaration etc.)

Certified copies of all invoices, receipts, contracts, tickets, boarding

passes, bank transfers etc.

Important: you are obliged to archive all originals for at least 5 years.

REPORTING DEADLINES:

Report I 15.07.2013 (covering period 01.01.2013 – 30.06.2013)

Report II(Interim Report) 15.01.2014 (covering period 01.07.2013 –

31.12.2013)

Report III 15.07.2014 (covering period 01.01.2014 – 30.06.2014)

Report IV (Final report)

15.01.2015 (covering period 01.07.2014 – 31.12.2014)

CONTRACTUAL MATTERS AND CASH FLOW

CONTRACT MATTERS AND CASH FLOW:

1. Contract between EACEA and beneficiary

2. Payment of first instalment from EACEA to beneficiary

3. Partner contracts with beneficiary

4. Payment of first instalment (20% of funds) to partners

5. Report I (15.07.2013)

6. Payment of second instalment (20% of funds) to partners

7. Report II - interim report (15.01.2014)

8. Approval of interim report and payment of third instalment (20% of funds)

to partners

9. Report III (15.07.2014)

10. Payment of fourth instalment (20% of funds) to partners

11. Report IV - final report (15.01.2015)

12. Approval of final report and payment of fifth instalment (20% of funds) to

partners

ANY QUESTIONS?

THANK YOUFOR YOUR ATTENTION