DG Competition Training of Judges programme Kick-off meeting - CFP 2017

The final report something to think about

at the beginning of the implementation

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Content

• Final implementation report • Final narrative (technical) report • Final financial statement • Final assessment by the Commission • Ex-post Audit

• Eligible costs

• Budget headings – Supporting documents – Examples of reasons for rejection of costs

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Final implementation report (1)

• Who should prepare it? • The beneficiary/coordinator When should it be submitted? • within two months of the end of the project • in one original+ one electronic copy • signed and dated by the legal representative of the

beneficiary. 3

Final implementation report (2)

• Consists of two parts: 1. Narrative part (Final technical report) 2. Financial part (Final financial statement + signed final

payment request) What should be presented in the report ? • Show the quality, achievements and impact of your

project, • Justify the costs of the activities, • Not necessarily long but complete and precise, • Add e.g. annexes presenting results in tables. 4

1. Final narrative (technical) report • Use table of content included in the template (Annex IV)

download from DG Competition's website http://ec.europa.eu/competition/court/practical_information_en.html). • Must cover the headings in bold in the table of content, • If heading not applicable – don't delete - state

"not applicable" NB. Original presence list(s) – one for each day of seminar – signed by all the participants (including speakers and staff) indicating the function of the person, must be attached to the final technical report (please use the template)

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2. Final financial part (1) • Consists of two parts: • 1. Financial statement:

• Report of all expenses and incomes of the project, • must follow the same structure as your budget

» detailed – expenditure figures » summary of final budget,

• respect the order of the headings, • indicate cost per person, • clear how the amounts have been calculated, • proof of all expenditure (original or certified copies of

invoices) except where unit costs apply. 6

2. Final financial part (2)

2. Request for final payment: • must be signed by the legal representative, • use the template attached to the final report (Annex IV.b).

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Financial assessment by the Commission • >Checks that:

• the financial statement is signed; • the correct exchange rate has been used in

converting costs to euro, if applicable; • the costs were foreseen in the estimated budget; • the financial statement has been correctly filled in. >Requests clarifications and missing supporting documents. NB. The payment period of 60 days will be suspended until receipt of requested information and documents.

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Ex-post Audit • Remember your project could be randomly

selected

Keep all documentation for 5 years after final payment/recovery (3 years if maximum grant is below or equal to 60.000 euro) (Article II.27 of the grant agreement)

• The Commission may recover any payments

made.

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Eligible costs

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Principles for final grant amount (Article II.25)

• The Grant agreement sets the limits: 1. the maximum amount of the EU contribution

(Article I.3.1) 2. the maximum % of the total eligible costs

(Article I.3.2 a)) 3. non-profit rule (NOT APPLICABLE FOR LOW VALUE

GRANT <60 000) (Article II.25.3) The EU contribution may be proportionally reduced, if the action is implemented poorly, partially or late (Article II.25.4).

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Eligible cost - General requirements • Costs reported must be registered in the accounts of the beneficiary/co-beneficiary.

• Although the final report must be done in euro, costs must be declared in the currency in which they were incurred and converted to euro according to the provisions of the grant agreement (see Article I.4.6 and the currency converter at http://ec.europa.eu/budget/contracts_grants/info_contracts/inforeuro/inforeuro_en.cfm).

• Where the amount of the invoice is not the same as the amount reported, please provide an explanation.

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Eligible costs – Article II.19 Conditions for eligible costs - Article II.19.1

a) Incurred within the period of the action (exemption = costs for kick-off meeting)

b) Indicated in the estimated budget, c) Directly connected to the activities of the project and

necessary for the implementation of the action, d) Identifiable and verifiable, and recorded in the accounting

records of the beneficiary in accordance with the accounting standards of the country and practises of the beneficiary,

e) Comply with the requirements of applicable tax and social legislation,

f) Reasonable, justified and comply with principle of sound financial management - cost efficiency

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Eligible costs - Budget headings

Categories of costs A.a) Staff A.b)-c) Travel costs A.d) Meals and refreshments A.e) Speakers' fees A.f) Equipment A.g) Consumables A.h) Publications A.i) Any other direct costs A.j) General costs charged to the operation

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Budget headings – a) Staff Costs (1)

• 2 sub-categories of staff: • Permanent (including civil servants or public

officials), working full or part-time on the project • Non-permanent: specifically recruited for the project.

• Staff costs = actual salary + social charges + other

statutory costs • Eligible staff costs = daily/hourly gross cost

multiplied by no. of days/hours worked on the project

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Budget headings – a) Staff Costs (2)

• Timesheets or an equivalent time registration system must be in place

• Salary rates should not exceed the average ones corresponding to the beneficiary's usual policy on remuneration

NB. Staff must be foreseen in the budget of the grant agreement.

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Budget headings – a) Staff Costs (3) Supporting documents

Permanent staff: • Existing contract • Secondment letter

• With description of tasks, reference of the project, duration, time allocated to the project, hourly/daily rate

• Monthly salary slips • Timesheets

• Signed and dated by each staff containing description of tasks and hours/days worked.

• Calculation of the hourly/daily rate requested

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Budget headings – a) Staff Costs (4) Supporting documents

Non-permanent staff: specifically recruited for the project • Specific contract linked to the project

• with indication of tasks, reference of the project, duration, time allocated to the project, hourly/daily rate

• Salary slips – if the staff is on the payroll • Invoices – if the staff is not on the payroll

• with indication of tasks performed, dates, number of hours/days worked and the price per hour/day

• Proof of payment by bank transfer

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Budget headings – a) Staff Costs (5) Calculation of staff costs for staff not fully allocated to the project

Annual gross salary + social charges Actual days or hours ______________________________ X working on the project as Total actual annual productive substantiated by timesheets working days or hours Where:

• Annual gross salary + social charges = costs actually paid by the beneficiary in the timeframe of a year, including: salary, taxes, employer's contribution for national security schemes, etc.

• Total actual annual productive time = total time in days or hours worked in the timeframe of a year

• NB. time used on meetings, activities, training and similar activities are considered a productive working time

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Budget headings – a) Staff Costs (6) Examples of reasons for ineligibility

• Staff contracted by partners/organisations other than the beneficiary/co-beneficiary

• Daily/hourly rates claimed are above the limit set by the budget

• Wrong calculation of daily/hourly rates • Inflated daily/hourly rates • Lack of timesheets or unsuitable timesheets provided • Volunteer work (in kind) • Work done outside the eligibility period

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Budget headings – b)-c) Travel costs (1) • Directly linked to the project's activities and made by

persons taking part in the action

• All travel and accommodation expenses must be reported under this heading

• In line with the beneficiary's usual practice and system

• The most economical fare and method should be applied

• Accommodation costs are reimbursed on the basis of unit costs in accordance with the grant agreement.

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Budget headings – b)-c) Travel costs (2) Supporting documents: • Travel costs:

– Original travel invoice – Original transport ticket (e.g. boarding pass and/or e-ticket,

train receipts, bus ticket, etc.) – Travel by car: reimbursement claim – Proof of payment (or proof of reimbursement when ticket is

purchased by a third party and not by the beneficiary/co-beneficiary)

– Signed original attendance list(s)

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Budget headings – b)-c) Travel costs (3)

Supporting documents Accommodation costs : • Reimbursement of accommodation costs on the basis of

unit costs: Supporting documents:

– Original attendance list signed by all the participants – List of hotel nights per person from the hotel

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Budget headings – b)-c) Travel costs (4) Examples of reasons for ineligibility • Travel costs:

• Missing original attendance list signed by the participants • Missing original supporting documents – e.g. missing

boarding pass or other proof of travel (e.g. proof of actual travel by car: receipt of fuel purchase)

• Invoice not clearly stating the amount paid • Use of taxi where public transport could have been used • Missing proof of payment / bank transfer

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Budget headings – b)-c) Travel costs (5)

Examples of reasons for ineligibility: • Accommodation costs:

• Amount exceeds the unit cost indicated in the budget • Missing original attendance list signed by the partcipants • Missing list of hotel nights per person from hotel

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Budget headings – d) Meals and refreshments

Supporting documents: • Unit costs apply – only original attendance list signed

by all participants (including speakers and staff) needed

Examples of reasons for ineligibility

• Missing original attendance list signed by the participants (including speaker and staff)

• Cost not foreseen in the estimated budget

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Budget headings – e) Fees

Fees to speakers and interpretation services Supporting documents:

• Contract and invoice • Proof of payment

Examples of reasons for ineligibility:

• Cost not foreseen in the budget • Cost incurred outside the period of the action

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Budget headings – f) Equipment (1)

Equipment, land and immovable property e.g. Rent of conference rooms, rent or purchase of materials, interpretation booths, etc.

• Only if strictly necessary and specifically for the project's

core activities • Supplier must be chosen according to the best value for

money principle • Equipment must be itemised and bear an inventory

number • Concerns new or second-hand equipment (computer,

audio-visual, etc.) 28

Budget headings – f) Equipment (2) • Eligible cost -> charge only the depreciation cost of

equipment at a rate that reflects the degree and duration of use within the project

• Depreciation -> Beneficiary's accounting practice

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Budget headings – f) Equipment (3) Supporting documents

• Invoice showing date of purchase and delivery • Beneficiary's accounting practice regarding depreciation • Calculation of the requested depreciation amount • Proof of payment – bank transfer

Examples of reasons for ineligibility

• Invoice not addressed to beneficiary/co-beneficiary • Full cost claimed for equipment where only the

depreciated cost should be claimed • Cost claimed does not reflect the period and

percentage used for the implementation of the grant 30

Budget headings – g) Consumables (1) • They are identifiable and exclusively used for the purpose

of the action • Are real costs necessary to produce the outputs and

strictly related to the activities of the project • Their cost can be traceable and distinct from normal

running costs • Concern goods of a short length of life -> not registered

as fixed assets in the accounts/inventory and are not written off

NB. General office supplies (pens, paper, folders, ink cartridges, electricity supply, telephone and postal services, etc.) are indirect costs (overheads) -> heading j).

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Budget headings – g) Consumables (2) Supporting documents

• Invoice and proof of payment

Examples of reasons of ineligibility • Invoice not addressed to beneficiary/ co-beneficiary • Cost cannot be linked to the project, cannot be traced

or is part of the normal running costs • Costs claimed are not consumables but general office

supplies (pens, paper, folders, etc.) which are not eligible as direct costs and are covered as indirect costs (overheads) under heading j.

• Cost not foreseen in the budget attached to the GA. 32

Budget headings – h) Publications (1) Publications and dissemination e.g. costs of layout, editing, printing, translation, website creation and maintenance of websites

• Exclusively linked to the project • Visibility rules & disclaimer • Reporting must be clear and precise (type of

publication, no. of pages, price per unit, number of copies, languages, etc.)

• Any related income from books/participation fees must be declared in the final statement as an income.

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Budget headings – h) Publications (2) Publications and dissemination

Supporting documents • Original invoices of printing jobs, indicating the name of

document printed, number of pages and number of items, date of services provided, etc.

• Original invoices for editing or proof-reading or translation of texts, indicating the rate per page and pages analysed

• Original invoice of publication costs, indicating the price per unit and the number of items published

• Proof of payment – bank transfer showing payment to the supplier

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Budget headings – h) Publications (3) Publications and dissemination Example of reasons for ineligibility

• Invoice not addressed to beneficiary/co-beneficiary • Invoice does not have a link to the project, e.g. name of

publication missing, date when activity took place missing

• Lack of visibility of the EU financial support and EU logo on publications

• Cost not foreseen in the budget • Cost incurred outside the period of the action

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Budget headings – i) Any other direct costs (1)

Direct costs not falling into any of the categories a)-h) e.g. evaluation, audit certificates, bank charges, any requirements imposed by the grant agreement

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Budget headings – i) Any other direct costs (2) Supporting documents

• Original postage invoices, if identifiable as clearly linked to the project – otherwise included as indirect cost (overheads) under heading j.

• Proof of bank charges, identifiable as clearly linked to the project

• Accounting/audit invoices identifiable as clearly linked to the project, specifying the hours/days worked and the rate per hour/day

Examples of reasons for rejection: • Cost not foreseen in the budget • No link to the project • Missing original supporting documents

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Budget headings – j) General costs charged to the operation (1) Indirect cost/overheads

• Costs that cannot be identified as specific costs directly linked to the project, but which are necessary for the project (e.g. office space, electricity, heating, financial management and administrative support, phone, internet, office furniture, etc.).

• May not include costs identifiable or declared as eligible direct costs.

• Calculated as a fixed flat-rate in accordance with the GA and the estimated budget attached to it (up to 7% of the total eligible costs).

NB. A beneficiary receiving an operating grant from the EU budget may not request reimbursement for indirect costs for an action during the same period.

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Budget headings – j) General costs charged to the operations (2) Indirect cost/overheads

Supporting documents • No supporting documents needed – calculated as a

percentage of the total eligible costs. Examples of reasons for rejection

• Cost also included as direct cost • Overheads requested exceeds the percentage agreed in

Artcle I.3.2 a) of the grant agreement and the estimated budget attached to it.

• The beneficiary/co-beneficiary receives an operating grant running within the same period.

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Thank you for your attention!

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