Leonardo da Vinci
REBASING – Research-based
Competence Brokering
Project management:
administrative and financial
issues
Reference documentations
•Relevant Call for proposals and Guide for
applicants
•Grant Agreement
•Annexes to Grant Agreement, in particular:
-Project’s approved Budget
2
Topics of the presentation
1.Project budget
2.Reporting activity
3.Possible on-going budget revision
3
The budget of the project
Direct costs:
a.Staff costs
b. Operational costs:
1.
Travel and subsistence costs
2.
Equipment costs (must not exceed 10% of the
total direct costs)
3.
Other costs
c. Subcontracting costs (must not exceed 30% of the
total direct costs)
Indirect Costs
It is a flat-rate amount set at a maximum of 7% of
the total amount of eligible direct costs (in our case:
6,54%)
4
Cost categories: direct costs
Those costs which are identifiable as specific costs
directly linked to performance of the project and which
can therefore be directly related to it
Direct costs:
a. Staff costs
b. Operative costs:
1. Travel and subsistence costs
2. Equipment costs
3. Other costs
c. Subcontracting costs
5
Cost categories: Indirect costs
Those costs which are not identifiable as specific costs directly related to the
performance of the project, but which have nevertheless been incurred in
connection with the eligible direct costs for the action
They cannot include any eligible direct costs
The corresponding costs need not be justified through accounting
documents, corresponding to a maximum lump sum of 7% of the direct costs
declared eligible after the approval of the final report
Examples of indirect costs:
•Communication costs (postage, fax, telephone, mailing, etc.)
•Infrastructure costs
•Photocopies
•Office supplies
•Costs for equipment related to project administration
6
Type of costs: Eligible costs
Eligible costs meet the following criteria:
•connected with the subject of the agreement and indicated in the estimated overall
budget of the project;
•necessary for the implementation of the action which is the subject of the grant;
•reasonable, justified, and compliant with the requirements of a sound financial
management (economic efficiency)
•incurred during the duration of the action as specified in Article II.2. of the
Agreement
•actually incurred by partners
•identifiable and verifiable
•related to activities involving the eligible countries in the Programme
•compliant with the requirements of applicable tax, fiscal and social legislation
7
Type of costs: Non-eligible
costs
Under no circumstance can the following types of costs be considered as eligible:
•costs incurred outside the contract period
•costs associated with the preparation of the application
•costs of opening and operating bank accounts
•costs born by silent partners
•return on capital
•debt and debt service charges
•provisions for losses or potential future liabilities
•other interests owed
•doubtful debts
•exchange losses
•costs declared by the applicant and covered by another action or work programme
receiving a Community grant
•excessive or reckless expenditures
•purchase of capital assets
•in the case of rental or leasing of equipment, the cost of any buy-out option at the
end of the lease or rental period
• VAT, if not a final cost
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VAT
VAT is considered as an ELIGIBLE COST
only if the organizations can show that they
are unable to recover it
Please note:
The Leonardo da Vinci grant is not subject to
VAT application and therefore it is not
subject to any fiscal taxation
It’s necessary to have a declaration
signed by your Legal Representative
9
Staff costs (1)
Costs relating to the following categories of staff are
considered:
•Statutory staff, having either a permanent or a temporary
employment contract with the partner
•Temporary staff, recruited through a specialised external
agency
VAT contracted staff ONLY IF THE CONTRACT REFERS TO THE
WHOLE PROJECT DURATION
10
Staff costs (2)
The contractor will have to collect:
• evidence on how the daily rates for staff were calculated
The documentation (i.e. payslips, official/ certified
accounting documentation, contracts & curriculum vitae,
etc.) relating to those working for the project could be
checked during the Audit
This budget heading must not include costs relating to
persons undertaking subcontracted tasks
11
Staff costs (3)
They must be based on the real daily costs
They include actual salaries plus social security charges and other statutory costs included in the remuneration
The staff costs results from multiplying the number of days worked on the project with the real daily staff cost rate
Costs cannot exceed the maximum rate foreseen by ISCO category (see General Call for Proposal – Part I)
Country
Deutschland
Eesti
France
Italia
Norge
DE
EE
FR
IT
NO
Researcher/ trainer/
teacher
Manager
Germany
Estonia
France
Italy
Norway
356
102
423
568
529
Technical
309
94
358
332
459
Administrative
248
66
234
225
375
191
46
179
187
283
Staff members of project partners are not allowed to operate in a subcontracting capacity for the project
Non statutory costs like bonuses, lease car, expense account schemes, incentive payments or profit-sharing
schemes are not eligible
12
Travel costs
Only travel costs for staff contributing to the project
Costs may be claimed only for journeys directly connected to specific
and clearly identifiable project-related activities
Include all costs and all means for travel from the point of origin to
the point of destination (and vice versa)
The principle of lower available price has to be applied when choosing
travel means
Use of Private car (1 person), Hired cars and Taxis if the cost is not
too expensive in comparison with public transport
Note
-visa fees, travel insurance and cancellation costs are eligible
13
Subsistence costs
Only subsistence costs for staff taking part in the project
Costs may be claimed only for journeys directly connected to specific and clearly identifiable project-related activities
Subsistence costs must not exceed maximum daily subsistence rates per country (see the Supplement for the electronic
Application Form 2010)
Daily rates
(EUR)
Country
Deutschland
DE
Germany
208
Eesti
EE
Estonia
181
France
FR
France
245
Italia
IT
Italy
230
Norge
NO
Norway
220
• Subsistence rates cover accommodation, meals and all local travel cost
•A FULL day normally includes an overnight stay. If no overnight stay is necessary, only the 50% of the daily rate is eligible.
Note: the reimbursement system applied by the partner’s organisation might be:
• reimbursement of real expenses
• reimbursement of a daily lump sum (forfait) if ordinarily applied by the partner
IN BOTH SYSTEM, EVIDENCE OF SUBSISTENCE AND OVERNIGHT COSTS MUST BE DOCUMENTED (i.e. by hotel invoices, bus
14
tickets, restaurant bills..)
Subsistence costs
It’s necessary to send us via mail
([email protected]) all justificatifs
immediately after each trip
15
IT Equipment costs
Purchase, rent or lease of equipment (new or second-hand), including the installation,
maintenance and insurance costs
Equipment purchased before the start of the project, if related to the administration of
the project, is covered by indirect cost
When the equipment is purchased:
•only the portion of the equipment's depreciation corresponding to the duration of the
action and the rate of actual use for the purposes of the action may be taken into
account
•respect the community rules for procurement (see slide n.20)
The cost of any buy-out option at the end of the lease or rental period is not eligible
Equipment costs must always be duly justified
The total cost for equipment may not exceed 10% of the total direct costs of the project
16
Other costs
Only activities which are specific and necessary for achieving the goals of
the project are considered
Only costs incurred by the partners themselves and duly justified are
eligible
Costs which are not covered by the other cost categories
Includes costs arising directly:
•from requirements imposed by the grant agreement (especially the cost
of financial guarantees)
•from the realisation of specific actions or of products/ results of the
project
Any other activity realised by staff/organisation external to the
partnership must apply the EU subcontracting legislation (see slide n. 20)
17
Other: some examples
•one-off costs for press releases and publicity
•purchase of copyrights and other Intellectual Property Rights
•purchase of information materials (books, studies and electronic data, etc.)
•conference fees/meeting registration costs
5
•financial guarantees
•rental of exhibition space
•dissemination of information
•specific evaluation of the action
• financial audits
•translations
•organisation of seminars (where the seminar is a foreseen as a product/result and where task-related
costs are easily identifiable)
•the production of proceedings of a seminar
•the production of a video
•the purchase of consumables for the realisation of a product (e.g. paper for printing publications)
18
Subcontracting costs (1/2)
“Costs entailed by procurement contracts for the purposes
of carrying out specific and limited work for the project,
can be considered eligible when awarded by a partner to
an external body, organisation or individual (only if not
employed by any of the Partner organisations of the
consortium).”(Guide for Applicants 2010)
The management and the general administration of the
project may not be subcontracted.
The principles of transparency and equal treatment of
potential contractors must be applied. Costs are based on
a verifiable estimate or, if the subcontractor is identified,
on the basis of an offer. Estimate, offer and contract must
cover all costs, including the costs of travel and
subsistence.
19
Subcontracting costs (2/2)
It is possible to outsource activities through subcontracting only
if:
• Only a limited share of actions might be subcontracted
• The use of subcontracting must be justified
• If the costs is not included in the original application form, a
written permission of the NA is required
The beneficiary must commit itself to avoid any conflict of interest
The total cost for subcontracting may not exceed 30% of the total
direct costs of the project
20
Community rules for
procurement
Value
Procedure for
procurement
Value below 12.500€
An invoice is enough
Between 12.500€ to
25.000€
Involvement of at least
three tenderers
Between 25.000€ to
60.000€
Involvement of at least five
tenderers
Over 60.000€
National rules with regard
to public procurement
apply
21
On-going budget changes
(1/2)
Changes shall NOT:
• modify the the total project cost
•alter the ratio between LDV fund and own funds
• Include Indirect costs
•violate the principle of equal treatment among partners
•always be justified and not alter the project nature and
objectives
22
On-going budget changes
(2/2)
Major changes imply amendment to the
contract when:
Changes over the 10% of the amount
foreseen in the “budget heading of
destination”
If changes are lower than 10%, the national
Agency must be informed by written
means (art. III.4 Grant Agreement)
23
Exchange rates (art. V. Grant
agreement)
All amount reported must be expressed in EURO
12/18 months projects
The exchange rate applied is the rate
applied by the bank when the first prefinancing payment is transferred by the
NA
24 months projects
The exchange rate applied is the rate
applied by the bank when the first
payment is transferred by the NA.
The exchange rate must be applied to
exchange in EUR all costs from the first
pre-financing until the following prefinancing payment
24
Marketing (commercial) –
artt. III.6 and V. Grant Agreement
When the partnership proceeds to commercial
exploitation of products developed within the
project lifetime, a description of exploitation
activities and related revenues shall be included in
the Interim and Final report
The revenue will be considered effective since the
identification of the final amount of the EU – LDV
fund
The benificiary shall send as well:
-A copy of the marketing plan
-A specimen of the product
-A copy of the agreement undersigned by all
partners concerning intellectual property copyright
25
Interim and Final Reports
26
Submission of Reports
Project
duration
12-18 months
24 months
Interim Report
NA
By month 14th,
and based on the
first 12 months of
project activities
and expenditures
Final Report
2 months after the
end of the project
By month 26th, and
based on the total
project activities
and expenditures
(30/11/2012)
27
Evaluation phases
1.
2.
Control of formal requirements in the report
and attached documentation;
Evaluation of the report considering the
activities/results foreseen, as well as the
costs undergone in the related period, in
terms of quality and quantity, including the
audit of the truthfulness and eligibility of
the action.
Only for the Final Report:
3.
Validation of the financial report and
the evidence documents, in porder to
verify the the truthfulness and eligibility
of the expenses, as well as the equity
and the sound project management.
28
Interim Report: objectives
Monitoring the first 12 months of project
activity
Check the compliance with project workplan
Check the expenditure of community fund
29
Interim Report: assessment
deadlines
• The Agency has 90 calendar days since the
day of receipt of the Interim report to approve or
reject the report, or to ask for more documents
and information. The deadline is suspended once
the integration is requested and proceeds once
the information is received.
• The Beneficiary has 30 calendar days to
send the requested information or to supply a
new interim report
30
Final Report: objectives
• Define the final balance and the amount of
the EU fund due or the amount to be
recovered from the partnership
• Check the compliance with the project
workplan
• Check the expenditure of community fund
• Evaluate the results/products
31
Final Report: assessment
deadlines
• The Agency has 90 calendar days since
the day of receipt of the Final report to
approve or reject the report, or to ask for
more documents and information. The
deadline is suspended once the integration
is requested and proceeds once the
information is received.
• The Beneficiary has 30 calendar days
to send the requested information or to
supply a new final report
32
Final report assessment and
financial relapses
Final assessement (points)
Very good
Reduction (%)
10
9
Good
8
0%
7
Satisfactory
6
5
Weak
Very weak
4
25 %
3
50%
2
75%
1
85%
0
33
Payment procedures
Lasted project
First payment
Further payments
Final payment
12/18 months
80% within 45
days of the entry
into force of the
agreement
NA
Within 45 days
from the approval
of the Final Report
40% within 45
days from the
entry into force of
the agreement
Up to 40% within
45 days from
approval of the
report on the
progress of
activities and
expenditure
Within 45 days
from the approval
of the Final Report
24 months
The second pre-financing may be paid in several instalments
Full payment of the second instalment may not be made until at least 70%
of the first pre-financing payment has been used up
Where the utilisation of the previous pre-financing is lower than 70%, the
amount of the second pre-financing payment shall be reduced by the
unused amounts of the previous pre-financing (Art. I.4.2 Grant Agreement)
34
How to ensure a sound
management?
•Identify
dedicated project coordinator and administrative staff for
each partner, transmit name, phone numbers and email addresses to the
Lead Partner
•Set
up an analytical accounting system expenses/ project progress.
•Regularly
keep track of all receipts necessary for the final breakdown.
Please send to the Lead partner copies of the financial documents and
related proof of payment each 6 months, namely:
-1st of April 2011
-1st of October 2011 – in order to deliver the Interim Report
-1st of April 2012
-15th of September 2012 – in order to deliver the Final report
•Refer
to the Programme documentation and rely on the National Agency
35
Mainstreaming and
Dissemination
36
Advertisement
Each communication / publication / product related to the project
shall include:

The disclaimer phrase “This project has been funded with support
from the European Commission. This publication [communication]
reflects the views only of the author, and the Commission cannot
be held responsible for any use which may be made of the
information contained therein.”, available in all EU languages at :
http://ec.europa.eu/dgs/education_culture/publ/graphics/agencies
/use-translation.pdf

the updated logo of the LLP Programme available at:
http://ec.europa.eu/dgs/education_culture/publ/graphics/identity_
en.html
37
Project Monitoring
38
Monitoring – Definition and
objectives


Analysis of the gap between actions planned and
realised
Namely:
In progress acquisition of the workplan state of art and
related financial expenditure in order to:
Verify on a regular basis the project’s correct
implementation and, if necessary, to adopt preemptive
and corrective actions
Acquire information to support general remarks
concerning the Programme trend and development
39
Monitoring – Tools
Life Chart of the Project
The Chart
chronologically
registers all the events
related to the project
The National Agency is
held responsible for the
procedure
Cahier de Bord
Tool to record the
project progress and
the related expenditure
Updated by the
beneficiary every 6
months
Monitoring
questionnaire
The Q. detects
information and critical
points related to.
Project management,
partnership, the
workplan progress and
valorisation activities
The document is due to
the National Agency
within 3 months since
the project ends
40