Application Form Part 3 How to Apply Seminar 29th February 2012 – Copenhagen Christopher Parker.

Application FormPart 3

How to Apply Seminar29th February 2012 – Copenhagen

Christopher Parker

Part 3 – Financial Tables: Total Budget Overview

Overall budget table for whole project per year Project costs Financing plan

Automatically generated from underlying forms

Do not enter figures manually! Note: do not mess with the template!

2

Part 3 – Financial Tables: Partner Information (1 of 3)

This is the first of 3 pages that needs to be filled in for each (Lead) partner

On this page, projects should fill in contact details for the organisation as well as background information

3


Enter the organisation name and contact details

Telephone numbers: enter an apostrophe (‘) before the country code

Enter the bank details The project title and

organisation name will automatically show in the total budget overview and the individual cost budgets per partner

4


Projects must answer 4 questions about the organisation to give more insight Core activities Interest in the project Use of project results ERDF experience

5

Part 3 – Financial Tables: Cost Budget & Financing Plan (1 of 4)

On the second page, you can find for each partner: the cost budget the financing plan a checklist for

supporting evidence

6


Partner cost budget: enter the costs per budget line per year.

Use the correct year! The cost budget must be

broken down in a separate form to demonstrate that all costs are eligible, actual and realistic

7

Eligible Costs

Study the Common Eligibility Rules!

1. Staff costs including social contributions2. Travel and accommodation3. External experts4. Office costs (directly allocated)5. Office costs (distributed proportionally)6. Promotion / publications, seminars /

conferences, meetings7. Equipment and supplies (Including

small scale investments)8. Other costs9. In kind costs10. Common costs11. Project revenues

1. Staff Costs Staff costs include salary and social

contributions for staff members employed by the (Lead) partner.

Staff costs must be supported by legal contracts/employment agreements. Full time: contracts Part time: time sheets

Hourly rate:Monthly salary + social contribution charge

Normal working hours per month Only legally required social

contributions (no extra benefits) Staff costs should form a realistic part

of the budget

8

Eligible Costs

2. Travel and Accommodation Realistic costs for travel and

accommodation related to project activities, including daily allowances.

The most economic (or sustainable) way of transport.

The travel took place within the programme area.

The accommodation cost are in the middle price range (approx. €140/night).

Daily allowances in line with public authorities in the country concerned

3. External Experts External experts or consultants may be

appointed for specific project tasks if their work is essential to the project.

The work of the expert is essential to the project

Rates are reasonable. Daily rates over €800 must be motivated. Rates are in relation to level of expertise

Project partners cannot be contracted as external experts

Projects are expected to tender for external experts.

Sub-contracting by external experts, not part of the original bid, is only eligible if it forms a minor part of the of the contracted activities and is clearly adding value to the project not leading to any additional costs

9

Eligible Costs

4. Office Costs (direct) This budget line should include

premises costs such as rent, heath, light, water and service charges related solely to the project.

Also included could be administrative costs such as phone calls, postage, copying and office supplies directly related to the project.

The costs need to correspond to the m2 space used for project activities.

Besides standard accounting material, a copy of the underlying premise agreement is obligatory for eligibility.

5. Office Costs (proportional) General costs that cannot be allocated

directly to the project.

These costs must be based on real costs attributable to the project.

The costs must be properly documented should follow the calculation model provided in the Common Eligibility rules.

The costs cannot exceed 25% of direct salary cost.

10

Calculation Proportional Office Costs

11

Total allowed office expenditure to be distributed proportionally/year

Total number of hours worked in organisation/year

Number of hours worked in project (timesheets)

Eligible Costs6. Promotions/publications,seminars/conferences, meetings Costs related to promotion and

publications specific to the project and costs related to the organisation of meetings, seminars and conferences.

Please note that the costs for travel and accommodation in connection with such events under budget line 2.

Meals/catering/entertainment should be of a moderate nature and according to normal standards.

All meals/catering must be supported by a list of participants and a statement outlining the purpose of the occasion.

7. Equipment and Supplies Equipment solely related to the project.

To be considered eligible, the equipment must be essential for the delivery of the project.

Costs include delivery and installation, etc.

The full purchase price is only eligible if the economic lifetime falls within the project lifetime. Otherwise, depreciation costs.

Special conditions for second-hand equipment

12

Eligible Costs

8. Other Costs Other eligible costs clearly required

and relevant to the project.

Costs related to first level control should be placed here.

9. In Kind Costs In kind costs consist of the provision of

land or real estate, equipment or raw materials, research or professional work, whose value can be independently assessed and audited.

In kind contributions can be viewed as a source to generate NPP co-financing.

Only public or public equivalent in kind contributions from organisations outside the partnership are eligible.

Are both a cost and source of match funding.

Own work can never be in kind Co-financing cannot exceed total costs

minus in kind contributions

13

Eligible Costs

10. Common Costs Within the partnership there are costs for

administrating the project, or other costs of a common nature such as promotion, conferences etc. It is up to the partnership to decide how to allocate such costs between the partners.

In this budget line each partner should state the agreed share of the total common costs for administrating the project on behalf of the partnership.

Common Eligibility Rules apply. This expenditure category should

contain a separate accounting of each partners' share of the total common costs.

11. Project revenues Revenues from planned project

activities, for example fees attached to a conference or seminar, are to be reduced from the budgeted costs. The revenue figures filled in should be negative (-).

This includes revenues in other forms than money.

Revenues should be reported continuously.

14

Indicative list of ineligible costs

Purchases and service contracts for any project partner (including private partners) that have not been procured in accordance with EU, national or organisational procurement procedures

Fees for financial transactions (except for transnational transaction charges) Interest on debt, loan charges or costs resulting from the deferral of payments to creditors Exchange rate losses or other costs tied to currency exchange Fines, other legal fees or court costs Costs for finance leases or other hire purchase arrangements Redundancy payments Payments into private pension schemes Bad debts Overtime pay for part time workers in the project Purchase of land Decommissioning of nuclear power stations Housing Recoverable VAT Unpaid costs

15


Financing plan: how are the project costs being financed

Enter match funding type (cash/in kind) and source.

Enter the relevant co-financing source per partner

Check if the grant rate is correct

16

Financing Plan

Public Match fundingfor main projects In kind: this should be equal to budget line 9, in kind costs. Enter the names of

the organisations and the type of contribution. Cash: Enter the names of the organisations contributing cash public match

funding. Examples include ministries, regional and local authorities, universities, etc.

Co-financing

17

Source Type Grant RateMember State ERDF 60%Member State 20% ERDF 50%Norway ERDF equivalent 50%Norway 20% ERDF equivalent 50%Iceland ERDF equivalent 50%Faroe Islands ERDF equivalent 60%Greenland ERDF equivalent 50%

10% source to Non Member State partners Mixed; Member States, Norway and Iceland 50%


At the bottom of the form there is a checklist to ensure that all supporting documents are in place: Budget breakdown formsIf applicable: Supporting evidence

common cost budget Distribution model

proportional office costs. Procurement status VAT declaration

The form should be signed by the person responsible for the partner organisation

18

Mr. Ned PeripheryHead of Unit

Part 3 – Financial Tables: Common Cost Budget

The third page for each partner contains a table for entering a separate common cost budget

This table should only be filled in for the holder of the common costs.

The individual shares should be filled in on the budget line “add: share of common cost” for each partner.

Supporting evidence should be provided

19

Project Budget Breakdown Template

This form should be filled in for each partner.

The form demonstrates that the partner the costs are eligible, actual and realistic and follow the Common Eligibility Rules.

Can be downloaded separately

20

Match Funding Commitment Template

This form should be filled in by each partner or by each organisation providing public match funding.

Choose the correct type of match funding: cash or in kind

Enter the correct amount in Euros

This form should be signed and stamped

This form is included in the application package

21

Part 3 – Financial Tables: Pitfalls Projects fail to answer the 4 background questions about partner organisations Projects do not use the correct years The costs are not in balance with the financing. The budget does not add up. Cost budget:

Proportional office costs: projects do not use the correct calculation Other costs: projects fail to budget for first level control In kind costs: projects often misunderstand this concept. Own work is never an in kind contribution.

If the project has an eligible in kind match funding source, the same amount should be entered here as in kind costs.

Common costs: projects do not distribute the costs or the individual shares do not add up. Only the holder of the costs should fill in the common cost budget table.

Financing: Projects forget to use the 10% or 20% source for partners (just) outside the eligible area Projects do not always use the correct grant rate Projects do not specify the match funding source (organisation name, etc)

Match funding commitments are in local currencies and incomplete Supporting evidence is often not complete Forms are not signed by the person with the authority for the organisation

22

Part 3 – Financial Tables: Best Practices

Studying and using the Common Eligibility Rules Using the Application Instructions when filling in the forms Making sure that all parts of the form are complete Making sure that the costs are in balance with the financing Making sure that the grant rates are correct Making sure that the correct years are filled in Making sure that you enclose all supporting evidence:

Budget breakdown forms Office costs distribution model VAT statements Documentation common costs Match funding statements Signatures

23

Thank you for listening!

Application Form Part 3 How to Apply Seminar 29th February 2012 – Copenhagen Christopher Parker.

Documents

Transcript of Application Form Part 3 How to Apply Seminar 29th February 2012 – Copenhagen Christopher Parker.