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EXPERT SESSIONLIVE WEBINAR

COVID-19 Information: We want to do our part to help project managers and their team to continue collaborating efficiently during the COVID-19 crisis with 60 days free period of use and reduced prices by 30%.

Avoiding financial mismanagement and getting ready for a CFS and auditsSEP 17, 2020 14:00 - 15:00 (+30 MIN Q&A)

https://www.emdesk.com/

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TODAY’S SPEAKER

Stefan DETSCHEW

CTO @ EMDESK

Connect on LinkedIn

Follow us on Twitter @emdeskpm

Email: detschew@emdesk.com

https://www.linkedin.com/in/stefan-detschew-69a89118/https://twitter.com/EMDESKpmmailto:detschew@emdesk.comhttps://www.linkedin.com/in/stefan-detschew-69a89118/https://twitter.com/EMDESKpmmailto:detschew@emdesk.com

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TODAY’S SPEAKER

Jeanne COLLIN

Head of projects / Public and European funds @Welcomeurope

Connect on LinkedIn

Follow us on Twitter @Welcomeurope

Email: jcollin@welcomeurope.com

https://www.linkedin.com/in/jeanne-collin/https://twitter.com/welcomeuropemailto:jcollin@welcomeurope.comhttps://www.linkedin.com/in/jeanne-collin/https://twitter.com/welcomeuropemailto:jcollin@welcomeurope.com

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AVOIDING FINANCIAL MISMANAGEMENT AND GETTING READY FOR A CFS AND AUDITS

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In this webinar Jeanne Collin, expert at Welcomeurope, will give you some tips how to master the H2020 financial requirements.

This webinar is presented by EMDESK in cooperation with Welcomeurope.

Learning objectives:

The CFS and Audit obligations and outlines

Identification of required supporting documents for each of the budget categories (personnel costs, subcontracting, other costs)

Tips for the Contradictory Report

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What is EMDESK?

EMDESK is a project and work management solution for research and innovation projects.

It helps large teams across organizations to organize and collaborate in EU funded projects while keeping maximum control and transparency.

DEVELOPED AND HOSTED IN GERMANY

EU PROJECT COMPLIANCE (H2020)

HIGH DATA SECURITY (AES256)

FULL PROJECT LIFE CICLE

GDPR COMLIANT ALL IN ONE SOLUTION

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Focus on what you do best - research and innovation

Plan & Organize Design and budget projects of any scale

Execute & Report Gain control by building

reports that matter

Control & Analyse Take control with power analytics

Collaborate & Communicate Increase productivity with

efficient communication

An all-in-one solution for the entire lifecycle of projects of any scale and complexity with the flexibility to customize to specific needs.

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Focus on what you do best - research and innovation

EMDESK - From planning, controlling, reporting, and collaboration. One stop solution you need to work more efficiently with others in real-time.

Leading project and work management solution for H2020 projects

Our customers report an increase in efficiency of more than 30%

Trusted by 20.000+ users in 3.000+ projects worldwide since 2008

from small to billion Euro projects involving 150+ organizations (like EU flagships HBP and Graphene)

“Combining a personal service with flexibility and solution-oriented thinking, EMDESK is a highly reliable solution that helps us to manage and monitor all our project activities efficiently.”

Dr. Katarina Boustedt Head of Administration of the EU FET Graphene Flagship at Chalmers University of Technology

19000+ users

89% found EMDESK helpful in overcoming the challenges they usually face

95% Of those using EMDESK

would use it again

3000+ projects

Users report an average efficiency

gain of 30%

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TRUSTED BY EUROPES TOP RESEARCH ORGANISATIONS

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Avoiding financial mismanagement and getting ready for a CFS and audit - Expert Insights

September 17th, 2020 – 2:00 – 3:20 PM

Objectives of the webinar CFS and Audit obligations and outlines

Tips for the Contradictory Report

Identification of required supporting documents for each of the budget categories (personnel costs, subcontracting, other costs)

Accounting obligations : Separate accounting and justifiedexpenditure – invoiced (analytical accounting)

Obligation to inform/report : A summary statement of finalexpenditure must be produced by the beneficiary to requestpayment of the balance

The obligation to archive and submit to controls

Major contractual obligations

TYPE OF CONTROLS

Ex-Ante Implementation Ex-Post

Type of controls

Certificate on the Financial Statements (end of project – financial)

Reviews (up to 2 years)

Investigations (fraud)

Audit (up to 2 years)

Certificate on the Methodology (CoMUC)

Financial Capacity Check (online – for profit)

Ex-ante assessment on direct costing of large research infrastructures

Checks (assessing deliverables, reports, double-funding, plagiarism)

Reviews (obligations under the GA, on the spot visit/meetings)

Investigations (fraud)

Audits (financial)

Possibility to use an average cost calculation method for personnel (unit cost):

Beneficiaries

Natural persons without pay

Owner of an SME without a salary

Self-employed entrepreneur

Optional certification:

EC-H2020-Unit-Cost-Methodology-Certification@ec.europa.eu

Certification of the “unit costs” method

Ex-ante : Certificate on the Methodology

Verification of the financial capacity of project coordinators when

the requested EU funding for the action is equal or superior to

€500 000 unless some exceptions (public body, …)

Complementary to legal entity and data check

Financial self-check tool

Ex-ante : Financial capacity check

To provide the Beneficiary with an opinion on compliance

with the methodology used to identify and measure the

costs of large research infrastructure as direct

Beneficiary’s methodology as described in a written

document endorsed by its management, and in place

Status validation & Methodology compliance

Ex-ante : assessment on direct costing of large research infrastructures

Ex-Ante Implementation Ex-Post

Control and audit levels

Certificate on the Financial Statements (end of project – financial)

Audit (up to 2 years)

Investigations (fraud)

Reviews (up to 2 years)

Certificate on the Methodology (CoMUC)

Financial Capacity Check (online – for profit)

Ex-ante assessment on direct costing of large research infrastructures

Checks (assessing deliverables, reports, double-funding, plagiarism)

Reviews (obligations under the GA, on the spot visit/meetings)

Investigations (fraud)

Audits (financial)

Ex-post : certificate on the financial statements

Lump sums, unit costs - other than unit staff costs -and flate rate (indirect costs) are excluded from thethreshold of EUR 325 000.

Produced by an independent auditoror Public Officer

Must be submitted for eachbeneficiary (and linked third party)that requests >= €325 000 asreimbursement of actual costs andunit costs

With the final report, within 60days of the end of the last reportingperiod

Terms of reference & report offactual findings

European Commission

Verifies the proper implementation of the projectBeneficiaries and third parties: Article 22(1) of the CA

Auditors from the EC and its agenciesIndependent audit firm

Comparison of amounts to amounts recorded on audited documentsFor the duration of the contract and +2 years after payment of the balance

Audits

Audits

Audit notification

Audit

Draft report

Contradictory phase

Final report

Audit result

Audits

Audits : some guidances

European Court of Auditors

Verifies if the EU budget has been carried out correctly andwhether funds have been collected and spent legally and inaccordance with the principles of good financial management

Audits EU measures

It's the E.C. and/or its agencies that are audited!

The E. C. may reject certain costs on the basis of this audit

No report at the end of the audit

Second level audits and investigations

European Anti-Fraud Office

Fraud, corruption and serious misconduct in the

European institutions & projects

Investigations can lead to early termination of the

project, rejection of the financial statements,

reduction of the subsidy, criminal prosecution

Second level audits and investigations

Possible consequences

Request for recovery

Total or partial reimbursement of the grant received

Rejection of eligible costs

Reduction of grant amount

Project suspension

Systemic error

Extrapolation of the findings of an audit to other funded projects

Affects the reputation of the institutions

Long, costly, complex and time-consuming legal procedure

Risks incurred in case of mismanagement

Involve the CFS / CoMUC auditors (if any)Keep correspondence, e-mails exchanged between the EC and the beneficiaryHave beneficiary’s methodology / usual practices / rules described in awritten document endorsed by managementList of staff involved

Good practice of audit preparation

Prepare a check list and have templates!

Contradictory phase : always reply to the 1st report and correct if necessary

Good practice of audit preparation

Your comments & supportingdocuments

REQUIRED SUPPORTING DOCUMENTS

Supporting documents

Link of employability (employment contract, appointment decision)Proof of payment (payrolls / accounting) and hourly rate calculationTraceability (monthly timesheet) & HR register

Personnel costs

Specific case: Non-permanent staff, working full-time on the project.

No obligation to fill out monthly timesheets

Fill in the document "declaration on a personworking exclusively on H2020 action".

1/ person/ reporting period (min 1 month)

Personnel costs

Unit costs:

Personnel costs

If usual practices or foreseen by EC or Executive Agency

Usually for self‐employed or internal billing 

Average daily rates per pay grade of the beneficiary's salary grid 

Certificate on the methodology

Mainly used in Marie Sklowdowska Curie Actions

Personnel costsReal costs:

Payrolls

Annual declaration ofSocial Welfaredata (DADS)

Must meet specific criteria:Minor task, necessary for the implementationIdentified and duly justified in the submission formThe beneficiary remains solely responsible for the execution of the actionCompliance with internal and national rules: appropriate procedure to select the bestoffer / best value for money (3 offers, tender procedure)

Supporting documents :- Internal procedures documents (with thresholds)- Tendering procedure / Request for quotations- Quotes- Selection report (best value for money)- Contract / Order form- Payed invoices- Proof of service / deliverable

Subcontracting

Travel:Signed mission orders (with acronym of the project)Signed expense statements (according to establishmentprocedures)InvoicesOther supporting documents : tickets, boarding passes,receipts…Link with the project (programme, participation sheet…)

Equipment :Quotes / Order(with the acronym of the project)Purchase invoices (with the date of delivery of theequipment)Depreciation proceduresLab book (“time sheets”)

Other :Quote / Order form (with project acronym)InvoicesFor restaurants : additional supporting document withparticipants, name of the project..

Other costs

Eligible invoices must comprise:

Legal entity address (corporate name)

Company registration number

Date, place

Recipient's contact information

VAT

Price

Name of the European project when possible

Invoices

Indirect costs

Building renting

Fluides (water, gas)

General administration costs

PC, laptops

Electricity

Overheads 25% of direct costs (minussubcontracting)

= no supporting document !

Indirect costs

Costs difficult to quantify, not directly linked to the execution of the action, but necessary, and cannot therefore be directly attributed to it 

Additional documents

• Proof of payement (from EC / coordinator and/or to partners)• Interim reports (financial & scientific)• Publicity checks• Grant agreement & amendments• Minutes from meetings / participation sheets / photos• Administrative data from the organisation (organigram, accounting system, ….)

Our advice : organise blank audits !

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www.Welcomeurope.comj.collin@welcomeurope.com

Questions ?

More than 18 years of experience in obtaining European Grant

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COVID-19 Information: We want to do our part to help project managers and their team to continue collaborating efficiently during the COVID-19 crisis with 60 days free period of use and reduced prices by 30%.

mailto:contact@emdesk.comhttps://www.emdesk.commailto:contact@emdesk.comhttps://www.emdesk.comhttps://www.emdesk.com/

200917_EM_Welcomeurope_FinancialMismanagementPPT EMDESK CSF