Cost sharing
Joint Technical Secretariat
Information Seminar for Latvian Project Partners
Riga, 29 April 2009
Part-financed by the
European Union
Content
• Definition
• Procedure and documents
Information Seminar for Latvian Project Partners, Riga, 29 April 2009
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Definition
• Dividing part of total expenditure between > 2 project partners
• Transparent and equitable method
• Joint activities benefiting several project partners
• Actors:
– Implementing partner (ImP)
– Paying partner (PayP)
+ First level controllers
– Lead partner (LP)
• Not contracting between project partners against invoices!!
Information Seminar for Latvian Project Partners, Riga, 29 April 2009
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Procedure
1. Cost sharing agreement
2. Project data form
3. Optional: Advance payment
4. Realisation of activities
5. Payment and accounting
6. Settlement
7. Reporting
Information Seminar for Latvian Project Partners, Riga, 29 April 2009
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Procedure
1. Cost sharing agreement
2. Project data form
3. Optional: Advance payment
4. Realisation of activities
5. Payment and accounting
6. Settlement
7. Reporting
Information Seminar for Latvian Project Partners, Riga, 29 April 2009
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1 Cost sharing relations
Implementing
partner
Information
Lead
partner
Cost sharing agreement
Paying
partner
1
Paying
partner
2
Paying
partner
n
Information Seminar for Latvian Project Partners, Riga, 29 April 2009
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Procedure
1. Cost sharing agreement
2. Project data form
3. Optional: Advance payment
4. Realisation of activities
5. Payment and accounting
6. Settlement
7. Reporting
Information Seminar for Latvian Project Partners, Riga, 29 April 2009
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2. Project data form
• Partner shares to be included in partner budgets
• Indication of cost sharing for BLs 2 and 4
External service
Contracting
partner
corresponding WP
1
2
3
4
5
6
Cost
sharing
Value of
the contract
7
1 Project co-ordination
100,000.00

Information Seminar for Latvian Project Partners, Riga, 29 April 2009
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
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Procedure
1. Cost sharing agreement
2. Project data form
3. Optional: Advance payment
4. Realisation of activities
5. Payment and accounting
6. Settlement
7. Reporting
Information Seminar for Latvian Project Partners, Riga, 29 April 2009
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3. Advance payment
• Optional
a) Implementing partner submits advance payment invoice
b) Paying partner makes advance payment
Implementing
partner
(a) Invoice
Paying
partner
(b) Payment
Information Seminar for Latvian Project Partners, Riga, 29 April 2009
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Procedure
1. Cost sharing agreement
2. Project data form
3. Optional: Advance payment
4. Realisation of activities
5. Payment and accounting
6. Settlement
7. Reporting
Information Seminar for Latvian Project Partners, Riga, 29 April 2009
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4. Realisation of activities
• Contracting all external suppliers, and/or carrying out own work
• Ensuring compliance with eligibility rules
Implementing
partner
Employment
contract
e.g. Project
Manager
Service
contract
e.g. External
researcher
etc.
Information Seminar for Latvian Project Partners, Riga, 29 April 2009
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Procedure
1. Cost sharing agreement
2. Project data form
3. Optional: Advance payment
4. Realisation of activities
5. Payment and accounting
6. Settlement
7. Reporting
Information Seminar for Latvian Project Partners, Riga, 29 April 2009
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5a. Paying and accounting all expenditure
Implementing
partner
(a) Invoice
e.g. External
researcher
(b) Payment
Accounting
Information Seminar for Latvian Project Partners, Riga, 29 April 2009
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5b. Overviews and validation
• Cost sharing overviews for LP and Paying partners
• Validation of expenditure by first level controller
Information Seminar for Latvian Project Partners, Riga, 29 April 2009
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Procedure
1. Cost sharing agreement
2. Project data form
3. Optional: Advance payment
4. Realisation of activities
5. Payment and accounting
6. Settlement
7. Reporting
Information Seminar for Latvian Project Partners, Riga, 29 April 2009
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6. Settlement of shared costs
• Different ways of payment of costs by Paying partners
a. Direct payment
b. Deduction from grant re-imbursement
c. Advance payment
Information Seminar for Latvian Project Partners, Riga, 29 April 2009
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Procedure
1. Cost sharing agreement
2. Project data form
3. Optional: Advance payment
4. Realisation of activities
5. Payment and accounting
6. Settlement
7. Reporting
Information Seminar for Latvian Project Partners, Riga, 29 April 2009
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7. Reporting procedure
a) Implementing partner submits cost sharing overview to LP
b) Partners submit partner reports: WITHOUT cost shares!
c) Progress report: LP adds cost shares to each partner’s expenditure
Risk of double-reporting!
Information Seminar for Latvian Project Partners, Riga, 29 April 2009
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7. Partner reporting
(a) Overview
Implementing
partner
(b) Partner report
without cost shares
FLC
validation
Lead Partner
Paying
partner
(b) Partner report
without cost shares
Information Seminar for Latvian Project Partners, Riga, 29 April 2009
FLC
validation
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7. Project reporting and grant payment
Programme
(d) Grant
Implementing
partner
(c) Project progress
report including all
cost shares
Lead Partner
Information Seminar for Latvian Project Partners, Riga, 29 April 2009
Paying
partner
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Cost sharing
Rostislav Zatloukal
Adviser for Audit and Control, Joint Technical Secretariat
Information Seminar for Latvian Project Partners
Riga, 29 April 2009
Part-financed by the
European Union