Date post: | 30-Jun-2015 |
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Presented by: Raffaele De AmicisFondazione Graphitech
Overview on the Financial Guidelines
Overview of topics
1. Signature and accession
2. Reporting periods
3. Coordinator’s bank account
4. Obligations of the coordinator and beneficiaries
5. Community contribution and payment
6. Eligible costs
7. Budget transfers
8. Reporting
9. Audit certificates
10. Special conditions
GA: Signature, accession and start date
Entry into force of the GA after its signature by coordinator and Commission (day of last signature)
Accession of entities identified in Art. 1.2 by means of Form A (GPF’s forms) within 45 days of entry into force
If any entity does not accede → solution to be proposed by consortium → amendment to GA
Project start date = 1st day of month after entry into force of GA, unless fixed start date
Reporting Periods
Project divided into reporting periods
Duration to be fixed (Art. 4)• P1: M01 – M18• P2: M19 – M36
Reporting periods determine
periodicity of progress reports and financial statements
Coordinator’s bank account
Denominated in EUR
Account must allow the Community financial
contribution and related interest to be identified
Pre-financing remains property of the
Community until final payment
Commission shall recover from coordinator, for each reporting period, interest generated where the pre-
financing exceeds EUR 50,000
Main obligations of coordinator
Acts as intermediary between Commission and beneficiaries for any communication
Receives Community contribution on behalf
of beneficiaries and distributes it
Reviews reports & deliverables to verify
consistency with project tasks and work
done
Monitors compliance of beneficiaries with
their contractual obligations
Coordinator’s obligations (1)
• Intermediary for any communication between the Commission and any beneficiary
• Receives EU contribution on behalf of the beneficiaries and administers it
• Keeps record and financial accounts• Informs the Commission on the distribution of the funds• Reviews the report before transmitting them to the EC • Monitors the compliance by beneficiaries with their
obligations • Outsourcing is NOT possible
Coordinator’s obligations (2)
• Designing and maintaining partner specific templates for collecting input to the required EU documents;
• Implementing and maintaining of a project-specific database for reporting and controlling, including the adaptation of the structure after changes in the workplan and the consortium;
• Drafting and maintaining the dissemination and exploitation plan following the EC’s requirements;
• Preparing and post-processing of EC reviews from the consortium- side including support in the implementation of recommendations from the EC and reviewers,
• The administrative tasks involved in the preparation, executing and post-processing of major project meetings
Coordinator’s obligations (3)
• Scientific coordination: • The scientific coordination and monitoring of subprojects and work-
packages (including the activities as work package leader); • The supervision of project progress milestones and project global
critical path; • The scientific review of the work performed by the partners including
scientific deliverables and the coordination of internal progress reports; • Monitoring of progress with work packages, deliverables and milestones
and the work plan, including the verification of the quality, consistency and respect of deadlines;
• Research risk management;• The preparation of the scientific part of the reports and deliverables to
be submitted to the EU
Inform consortium and Commission through
coordinator of names and contact details of staff
working on project
Forward to coordinator data needed to draw up reports & deliverables, any other information requested by Commission or Court of
Auditors
Attend relevant meetings concerning monitoring & evaluation of project (e.g.
project reviews)
Inform coordinator & Commission of any changes or events affecting project
Avoid conflicts of interest
Main obligations of beneficiaries
Beneficiary’s obligations (1)
• Carry out the work of Annex I correctly and timely • Inform EC in due time on persons managing the work,
– any event which might affect the implementation of the project and the rights of the Community,
– any change regarding its legal, financial, organisational or technical situation,
– any circumstances affecting the conditions of participation.– Example : beneficiary is facing financial difficulties
• beneficiary goes under administration• beneficiary has been taken over
Beneficiary’s obligations (2)
• Provide the EC and Court of Auditors with all information if requested;
• Take part in meetings concerning the project; • Ensure compliance with state aid framework; • Take all measures to avoid commitments that
are incompatible with the obligations of the GA. • “NEW” - Designate a legal entity appointed
representative (LEAR)
Community contribution
Maximum contribution indicated in Art. 5
In this case, …
funding from 50% to 100% of total eligible costs per beneficiary,
indirect cost calculated according REA
Different funding rates for different activities or organisation types
EU contribution - Upper funding limits
EU contribution - Upper funding limits
One pre-financing paid to the coordinator
within 45 days following the entry into
force of the GA
•160% of average EU funding per period, but capped at 60% of maximum Community contribution
Interim payments based on financial
statements
•Pre-financing + interim payments limited to 90% of maximum Community contribution (retention of 10%)
Final payment = based on financial statements,
payment outstanding balance
Payment Modalities
Stated in Annex I (Indicative breakdown of
the budget and the Community financial
contribution between beneficiaries)
Necessary for the implementation of the
project
Actually incurred by beneficiary during project duration (except costs for
final reports and CFS as well as for technical
reviews)
Identifiable and verifiable, and recorded in the
beneficiary’s accountsReasonable and justified
Eligible Costs
exchange rate losses
resources made available to a beneficiary free of charge
(e.g. third-party contributions)
value of contributions in kind
indirect taxes and duties, including VAT (unless the
beneficiary can show that it is unable to recover it)
entertainment or hospitality expenses, except
those accepted by the Commission as being
absolutely necessary for carrying out the project
any cost incurred or reimbursed in respect of, in
particular, another Community, international or
national project
Non-eligible Costs
Three categories
Personnel
Subcontracting
Other specific direct costs
Travels and related
subsistence costs
Purchase costs of durable
equipment
Consumables and Supplies
Eligible Direct Costs
costs of the actual hours worked by the persons directly carrying out work under the project
such persons must:• Be directly hired by beneficiary• Work under the sole technical supervision and responsibility of the beneficiary• Be remunerated in accordance with the normal practices of the beneficiary
Eligible Direct Costs - Personnel
What is a subcontractor
to carry out part of the work of the
project without direct supervision of the beneficiary
and without relationship of subordination
With whom one or more
beneficiaries reach an
agreement on business
conditions
A third party
Eligible Direct Costs - Subcontracting
• Subcontracting of certain elements of work allowed if– necessity of subcontracting duly justified in Annex I and– tasks concerned and an estimation of the corresponding costs indicated
in Annex I
awarded according to best price-quality ratio, under conditionsof transparency and equal treatment.
Eligible Direct Costs - Subcontracting
(Art II 6)
Any subcontract for which the costs are to be claimed as eligible costs shall be awarded according to the principle of best value for money (best price-quality ratio), under conditions of transparency and equal treatment.
Subcontracting costs shall be in accordance with market prices.
Eligible Direct Costs - Subcontracting
the depreciation equipment corresponding to the duration of the project at the rate of actual use for the project
travel and subsistence allowances for personnel taking part in the project, in line with the beneficiary’s usual practices
dissemination of information
any financial guarantees (e.g. audit certificates)
specific costs incurred by coordinator for overall management of project and coordination of beneficiaries
Eligible Direct Costs – Other Costs
Different funding rates for different organisation
types calculated as % of personnel costs, …see REA
Indirect Costs
EU contribution – Method of calculation of indirect costs
• For all: – either actual overhead or simplified method – Standard flat rate of 20% of direct costs minus subcontracting
and 3rd parties not used at the premises of the beneficiary) • Special transitional flat rate (60% of direct costs minus
subcontracting and 3rd parties not used at the premises of the beneficiary) can only be used if the following criteria are fulfilled: – Non profit Public Bodies, Secondary and Higher Education
establishments, Research Organisations and SMEs – unable to identify real indirect costs,
Simplification measures
• Commission Decision of 24 January 2011 Article II.14 of the GA / Guide to financial issues
• Average personnel costs • SME owners who do not receive a salary
Beneficiaries may transfer budget amounts between themselves, provided work is carried out as described in Annex I
Coordinator shall notify any such transfer to Commission without unjustified delay
Budget Transfer
covers any information to be supplied in
response to a request by the Commission
format and layout shall conform to rules
communicated by the Commission
to be submitted to the Commission for each reporting period not later than 60 days after end of period
Reporting
information about progress of work, including achievements and attainment of milestones
resources employed
departures from work schedule
Reporting
Progress reports contains:
the financial statements from each beneficiary
together with summary financial report consolidating Community contribution claimed by all beneficiaries
Reporting
For interim and final payments:
final publishable summary report
results, conclusions and socio-economic impact of the project
Reporting
Final report comprising
• data in the paper copy shall be regarded as authentic• date of receipt of the paper copy shall be taken into
account for the time limits set out in agreement.
Reports to be submitted through the coordinator in one original (paper) copy and one electronic copy
• No tacit approval of reportsCommission has 105 days to evaluate and execute
the corresponding payment
Commission can reject reports and deliverables even after the time-limit
for payment
Reporting