Travel expenditure

The trips should be included in the project’s approved work packages;

The amount allocated to travel in the project’s budget should not be exceeded;

Travel funds should be spent as economically as possible -- economy class;

Cost of third country participants: eligible if approved in application form;

Expenses incurred for local travel [e.g. petrol / diesel expenses] are not eligible;

Travel expenditure (2)

Travel expenses are only eligible if:

a) they are incurred in eligible EU regions;

b) they are incurred by persons performing tasks directly related to the project activities;

c) such costs are directly related to the implementation of the project.

Documentation required

Documentation of the trip, showing

a) the name of the participant;

b) the dates;

c) the reason for and the final destination of the trip;

d) boarding passes and travel tickets;

Documentation required (2)

e) invoice /s issued by travel agent [if relevant] and receipts;

f) declaration of purpose of the meeting and its connection with the project;

g) receipts for expenditure on contingencies;

i) travel log book must be kept, showing who travelled, where, when and why.

Per diem allowances

A fixed subsistence / per diem allowance; Consult MPO Circular on Public Service Subsistence

Allowance for Duty Travel Overseas; Rates used for Interreg III projects should not be higher

than usual; Half subsistence -- the costs of hotel accommodation

can be accepted as project costs to a maximum of four star accommodation;

Documentation required: invoices, receipts signed by staff member;

Other Documentation: duration of an event, agenda of meetings must match the travel documentation [e.g. flight times].

Conferences / workshops

Eligible as long as they are provided for by the project budget and in the respective work packages;

Catering costs, meals or refreshments are eligible as long as they form part of a conference or meeting;

NOT ELIGIBLE: hospitality events, working lunches / dinners or meals organised for the purpose of entertainment;

Conferences / workshops (2)

Public organisations: public procurement regulations for the selection of venue, caterers or service-providers;

Public equivalent bodies must follow the spirit of the public procurement legislation and ensure transparency throughout the selection process;

Provision of a conference venue as an ‘in-kind’ cost if organisation’s conference room is usually rented out, however auditor’s certificate on the value of the venue should be provided.

Documentation required

Documentation required:

a) contracts [where relevant], invoices and receipts;

b) a signed attendance sheet;

c) a letter of justification explaining the purpose and project-oriented necessity of the event

d) declaration that no attendance fees were charged or revenue generated by the conferences.

IMP: revenue must be deducted from the amount claimed for reimbursement

Purchase of land and property

The purchase of land or buildings shall only be eligible if:

a) there is a direct link between the land purchase and the objective of the project;

b) the land purchase does not exceed 10% of the total eligible cost;

c) an independent appraisal certification form that the purchase price does not exceed the market value is made available;

NOTE: the purchase of land or property requires an ex ante approval in the project’s work package as well as an approval from the PPCD.

Second hand equipment

Eligible under three conditions:

a) the seller of the equipment shall provide a declaration stating its origin [i.e. the original invoice from the seller] and confirm that at no point during the previous seven years has it been purchased with the aid of national or community grants;

b) the price of the equipment shall not exceed its market value and shall be less than the costs of similar new equipment and;

c) the equipment shall have the technical characterises necessary for operation and comply with application norms and standards.

Payment of costs incurred by other partners Fair balance between the budget lines of partners

from different countries;

Payment of costs incurred by other partners in the project is NOT eligible under the Malta share of ERDF unless this was already specified in the approved application form.

Participation of third country nationals Such costs are eligible if:

a) they have already been included in the approved application form;

b) as long as the project partner submits a letter of assignment justifying participation.

Ineligible expenditure

- Expenditure not approved in the work package;- Expenses made after the implementation period;- Depreciation;- Representational costs [e.g. gifts etc];- Procurement which does not add value to the project;- Penalties, fines and law expenses;- Interest on overdue payments;- Unpaid sub amounts of invoices [e.g. claims for damages,

guarantees]; -Expenditure invoices to third parties and thus not borne by the

project organiser;- Project costs which cannot be clearly allocated to one of the

project organisers

Ineligible expenditure (2)

- One off cultural events e.g. exhibitions, festivals which do not guarantee a long lasting cooperation and generate employment;

- Overtime pay and compensation;

- Purchase of vehicles [cars, lorries, boats etc];

- Expenditures on ceremonies and inauguration celebrations;

- Eligible expenditure which has not followed the relevant procedures.

If expenses are certified and reimbursed and an irregularity is discovered ex post,

the project or relevant components thereof may be subject to recovery of costs.

Treatment of revenue

Revenues received by a project up to

a) the end of the project,

b) up to the closure of the programme

represents income and have to be deducted from the total project costs.

Eligible costs =

total costs - project related revenues

Publicity

An essential part of all projects funded by the European Union;

the relevant publicity actions are undertaken with respect to their specific projects;.

Refer to publicity guidelines -- PPCD’s website www.ppcd.gov.mt. [Interreg section]

Failure to comply with publicity actions may render parts of the project ineligible or may be subject to

recovery of funds.

First level control Conducted by the Interreg Team at PPCD checks out the

following:

a) verification of delivery of products and services;

b) reality of expenditure claimed;

c) compliance with terms of the Commission decision on the programme;

d) compliance with national and Community rules on eligibility;

e) compliance with other national and Community rules on public procurement, state aid, protection of the environment and equality of opportunity;

f) publicity requirements.

Second level control

Member States are bound to carry out checks on projects on an appropriate sampling basis;

Aim is to verify:a) the practical application and effectiveness of the management and control systems;b) the correctness of accounting records held by the project leaders carrying out the projects;c) the presence of a sufficient audit trial;d) that the appropriate national co financing has in fact been made.

Audit checks

The European Court of Auditors; audits on any body or organisation receiving EU Funds;

The European Commission Services; audits of financial systems or expenditure claims and performance audits;

The IAID examines and reports on the operation of management and control systems;

The National Audit Office - the external auditors of Government - carries out audits of relevant public bodies.

Audit checks (2)

Advertisements and a list of response to such adverts;

a record of any calls of interests / tender opening procedure and subsequent selection of successful contractors;

Contracting procedures;

the documentation submitted in connection with such calls / tendering;

Audit checks (3)

the evaluation reports of such calls;

the contracts drawn between the project leaders and the contractors;

any payments made;

verification of EU publicity;

bank accounts.

Dealing with irregularities

If an irregularity is found, the MA of the respective programme in collaboration with the national coordinators of the Member State concerned shall ensure that:

a) recovery proceedings are initiated and finalised by the project leader without unjustified delay;

b) the Paying Authority is informed of the reported irregularities which necessitate a recovery of funds and of developments made in the recovery of funds by the project leader.

IMP: a clear audit trail

Obligation is both on Lead Partner and partners;

file all relevant documentation for five years after completion of programme i.e. end 2013 minimum;

The documentation should include:

the letter of approval by PPCD, the letters of offer and application forms, receipts, invoices, tender evaluation, contracts and claims made.

Dissemination of results

Project leaders are required to report the progress made on the project to PPCD on a quarterly basis;

A result sheet, highlighting all the achievements made according to the deliverables set in the application form is required at the end of the projects;

Dissemination of results (2)

Important to note that projects co-financed by the ERDF are not intended for private use;

the result of the cooperation in Interreg projects must be made available to PPCD for onward transmission to the general public if and as required;

the results of research funded by Interreg III should not be used for financial gain or consultancy purposes.

Contact details – Interreg Team

Planning and Priorities Coordination DivisionOffice of the Prime Minister

12, St. Paul’s Street, Vallettawww.ppcd.gov.mt

greta.borg-carbott@gov.mtcelia.mallia@gov.mt

aldo.formosa@gov.mt

Tel: 2200 1149 / 1150 / 1151

Thank you

for your attention