1 Seminar for Russian partners and FLC 22 May 2019 | St ......Seminar for Russian partners and FLC...

1 Seminar for Russian partners and FLC 22 May 2019 | St. Petersburg

Financial management of the Baltic Sea Region INTERREG projects

Interreg Baltic Sea Region seminar for Russian partners and their first level controllers St. Petersburg| 22 May 2019 Václav Kaplan, Ruslana Rozene, Rostislav Zatloukal, Managing Authority/Joint Secretariat

Content

Seminar for Russian partners and FLC 22 May 2019 | St. Petersburg

1. Payment scheme

2. Staff costs

3. Other costs

4. Reporting

5. Partner report

3

Seminar for Russian partners and FLC 22 May 2019 | St. Petersburg 4

Payment scheme

Co-financing rates


Norway up to 50%

Denmark, Finland, Germany & Sweden up to 75%

Estonia, Latvia, Lithuania & Poland up to 85%

5

Russia up to 85%


Advance payment

• 30% of the approved Programme co-financing

• Pre-conditions:

• signed Subsidy Contract

• signed Financing Agreement

• sufficient liquidity of the Programme

•


Interim payments

• Reimbursements of submitted & certified reports

• After approval of the complete progress report

• Reductions in case of significant underspending

Monitoring and payment


Project Partner

Receive payment from lead partner

Lead Partner

Receive payment from MA/JS

Managing Authority/Joint Secretariat

Checks of reports (content/financial)

8


Balancing of advance payments

• (At the latest) when 80% of the funds spent

• Payment above 80% - only as reimbursement

• Final balance after the submission of the final report


Example

• Partner budget 120,000 € (~Programme co-financing 102,000 €)

• Advance payment 30,600 € (30% of 102,000€)

• Progress report 1, 2 … 85% of certified costs

• When advance+interim p. 81,600 € (80% of 102,000€) => Balancing of advance payment

Budget lines P

roje

ct

bu

dge

t BL1 - Staff

BL2 - Office & administration

BL3 - Travel & Accommodation

BL4 - External expertise & services

BL5 - Equipment

BL6 - Infrastructure & works

(BL7 – Project specific activities)


All cost must be …

essential

paid by a project partner and non-recoverable (e.g. VAT) NO sub-partners NO cost sharing

paid in the eligible period

supported by relevant documents

real costs (exceptions: unpaid voluntary work, simplified cost options, depreciation)

in line with the principles: efficiency, economy/effectiveness



Staff costs


1. Full time & part-time staff

employed by partner organisations

formally engaged in the project activities

defined calculation methods for part-time staff

staff costs tool

staff costs guidance

2. Unpaid voluntary workers

requirements and limits to be observed (F.3.1.6)

BL1 - Staff

14


Gross employment costs

Fixed in employment document or by law

Non-recoverable

Examples:

Salary

Other costs directly linked to the salary

BL1 - Staff: Eligible costs

15


Employment document

Job description

Documentation of gross employment costs

Payment proof

Staff costs tool

Additional specific documents for part-time employment

BL1 - Staff: Documentation


100% of the employee‘s

working time is spend for project

work

< 100% of the employee‘s

working time is spent for project

work

Full time Part-time

BL1 - Staff: Full-time and part-time


Fixed %

Annual hourly rate

Contracted hourly rate

Monthly hourly rate

Fixed working hours

Flexible working hours

Part-time

Do not mix the calculation methods!

BL1 - Staff: Part-time calculation options


Percentage fixed in employment document in advance

No timesheet needed

Simple calculation

Over- or undercompensation possible

BL1 - Staff: Fixed percentage of time worked per month

Part-time


Annual gross employment costs of previous 12 months divided by 1,720 hours

Only need to calculate it once

Over- or undercompensation possible

Timesheet needed

BL1 - Staff: Yearly hourly rate (1720 hrs method)

Part-time


Monthly gross employment costs of actual month divided by monthly working (in hours) time set in employment contract

Timesheet needed

Closest, but not equal to real costs

Vacation and sick leave are not covered

BL1 - Staff: Monthly hourly rate

Part-time


Hourly rate set in the employment contract multiplied with actual working hours

Can only be used by staff that is paid on hourly rate basis

Timesheet needed

Vacation and sick leave not covered

BL1 - Staff: Contracted hourly rate

Part-time


Preparation

1) Downloading of the staff costs tool from http://www.interreg-baltic.eu/for-projects/reporting.html

2) Opening the staff cost tool (by using Adobe Reader)

BL1 – staff costs tool

23

http://www.interreg-baltic.eu/for-projects/reporting.html






Preparation

1) Downloading of the staff costs tool from http://www.interreg-baltic.eu/for-projects/reporting.html

2) Opening the staff cost tool (by using Adobe Reader)

BL1 – staff costs tool

24







BL1 – Staff cost calculation: Practical exercise

25

Preparation

1) (If not done yet) download the staff costs tool from http://www.interreg-baltic.eu/for-projects/reporting.html

2) Please open the staff cost tool (by using Adobe Reader)







15%

flat rate of BL1 staff costs

Report automatic calculation

!!! Office&administration costs cannot be reported under other budget lines

BL2 - Office & administration

26

Project employees

belongs to BL3

Travel (e.g. tickets, fuel, car mileage, toll, parking fees)

Accommodation

Daily allowances

If not covered by allowances:

• Meals (other than catering!)

• Visa

!!!

External experts/speakers/…

belongs to BL4

Travel and accommodation

Active role !



Every travel must be project related !!!

Activities outside the EU-part of the Programme area


Do I need prior approval by the MA/JS?

• Programme area & EU & Moscow (e.g. Norway, Brussels) NO

• Other countries YES (e.g. USA)

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Reporting documents

• Invoices or equivalent accounting documents of travel costs

• Payment proof

• Proof of reimbursement of costs to the employees where

employees made a direct payment for travel




Costs of external service providers, experts, consultants:

studies, training, translations, consultancy services

project events

travel and accommodation for external staff: contribution to the project content, activities, outputs, results limited justified number documented active role !!! not regular participants

first level control costs (for decetralised FLC systems)

promotion, communication, publicity

financial project management (general accounting BL2)

…

!!! Not eligible:

services from other project partners/own staff

basic courses

BL4 - External expertise & services

30


Project equipment for carrying out project activities

depreciation, rent, lease for the respective period

Investment equipment as integral part of an investment output

full costs eligible

IT hardware & software furniture & fittings laboratory equipment machines & instruments tools or devices vehicles …

BL5 - Equipment

31


BL5 - Equipment

Investment equipment in the application


• Only investment related costs Blocked if no investment outputs planned

• Full costs eligible

• Examples: Works for … site preparation, delivery, handling, installation, renovation

BL6 - Infrastructure & works


• Application: Indicative specification of contracts (sections 6.1, 6.2, 6.3)

BL4, BL5 and BL6

• Documentation:

Procurement

Contracts and invoices

Proof of delivery

Payment proof


1. Public entity or a legal entity which is subject to public procurement legislation

Legislation of Russian Federation

2. Other entities

Annex to Financing Agreement

https://www.interreg-baltic.eu/for-projects/public-procurement.html

+ Programme provisions bid-at-three rule

Applicable to all partners regardless their status if the value of the procurement is ≥ EUR 5,000 (excl. VAT)

Procurement


Types Focus

• Minor

• Major

• Partnership

• Work plan

• Budget

37

Any changes? Please approach lead partner first

Project changes

Reporting


Project reporting


Project progress report (by lead partner)

Certified by first level controller of lead partner

Partner report

Certified by first level controller of project partner


PDF template

Online system

BAMOS

Data flow

Staff costs tool

Partner report incl. list of expenditure (=cost itemisation list)

Progress report aggregating PP reports

Contracts (services/…), invoices, travel reports,

tickets, payment proofs … Accounting documents

Reporting documents (PDF)

Employment contracts, job descriptions, salary

slips, …

BAMOS (online monitoring system)


Partner report (offline in PDF)


Partner report – technicalities

• Advanced PDF format -> open with Adobe Reader only!!!

• Enable

red frame = obligatory fields

blue caption = data according BAMOS

• Interactive form start from the beginning



Partner report - Sections

1. + 2. Identification of the project / partner

3. Contacts

4. Activity report

5. Financial data to be copied from BAMOS

6. Project partner's generated revenues/net revenues

7. Expenditure per budget line

8. Summary

9. Exchange rate

10. Project partner confirmation & signature

11. FLC certificate

12. Summary of financial data for BAMOS


Use of Euro & exchange rate

All expenditure are reported in Euro

For partners whose national currency ≠ Euro:

monthly exchange rate in the month during which the partner report is submitted to the FLC

one exchange rate per reporting period only

set in the partner report

Monthly exchange rate acc. to the InforEuro webpage of the EC: http://ec.europa.eu/budget/contracts_grants/info_contracts/inforeuro/index_en.cfm


http://ec.europa.eu/budget/contracts_grants/info_contracts/inforeuro/index_en.cfm




Partner report – How to start?


• Use the newest version

• Pre-adjust the currency (Section 9)

• Pre-fill data according BAMOS (Sections 1, 2 and 5)

Partner report


Live demonstration


Progress report (online in BAMOS)

Progress Report

• Filled in by LP

• Compilation of inputs from partner reports

• Activity report

• Financial report based on section 12 of partner reports

• Selected documents to be uploaded to BAMOS


Documents in BAMOS

• Partnership agreement (by LP)

• FLC approbation (from PPs with decentralised FLC system)

• Subsidy contract incl. addenda (by LP)

With each progress report (from each PP):

• Partner report (editable version)

• Partner report (scanned signed version)

• FLC report & checklist


Financial management of the Baltic Sea Region INTERREG projects


Phone +49 381 45 484 5281

e-mail: [email protected]

www.interreg-baltic.eu

Interreg Baltic Sea Region believes

in an integrated and prosperous Europe for all

1 Seminar for Russian partners and FLC 22 May 2019 | St ......Seminar for Russian partners and FLC...

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