Follow up and reporting procedures
Lead partners seminar 5th targeted call
Lydwine Lafontaine
Table of contents
Background information Subsidy contract
Lead partner principles
1. Progress of the project: individual quality follow up a. Your aim
b. The JTS aim
c. How do we join our efforts?
2. Reporting procedures: programme rules a. Reporting frequency
b. Content and quality of reporting
c. Reporting trail
d. IPA partners particularities
Table of contents
3. Financial issues
FIRST LEVEL CONTROL (FLC)
a. Definition of First Level Control
b. Role and tasks of controller
c. National control systems
d. Complementary information
ELIGIBILITY OF EXPENSES a. Reference documents (EU / MED / national rules)
b. Principles
c. Timeframe
d. Budget lines
e. Supporting documents
f. Special attention
DECOMMITMENT RULE
AUDIT TRAIL
Background information Subsidy contract
According to article 3 of the Subsidy Contract:
A payment claim must be submitted to the JTS every 6 months
Deadlines for submission must be respected (3 months)
Payment claim includes:
Progress report
Certifications of expenditure
Annexes: all material produced during the reporting period
According to articles 4 and 5 of the ERDF Subsidy Contract, the LP:
signs the ERDF Subsidy Contract
is responsible for the communication towards the program bodies
is responsible for the communication within the partnership
is responsible for the Progress Reports’ contents and ensure that all partners provide the necessary information regarding the drafting and eventual needed integrations to the reports
receives the payment for all ERDF partners and has to redirect the partners’ share avoiding any delays (within 1 month).
The monitoring role of the LP is essential
Background information Subsidy contract
Make a change in the territories (visible, measurable) and make it last:
Quality of production and outputs: produce something reliable,
relevant, useful
Generate outcomes and results: make target public know, have them use productions and outputs, make a difference in their lives
Make it last: give a greater visibility, influence deeper, influence larger
1. Progress of the project: individual
quality follow up a. Your aim
Support the Lead Partner and its partnership during the lifetime of the project
To facilitate its implementation
To meet the objectives of the Project and the objectives of the Programme
To ensure a high level of quality, with a result-oriented approach
To maximise the impact on the target groups and the territories
To ensure capitalisation and durability
1. Progress of the project: individual
quality follow up b. The JTS aim
JTS > project Attendance at and participation in project events
Inform JTS (bilateral meetings if necessary) - plan ahead
Proposals / orientations in the design of deliverables and the preparation of major events. For e.g. Kick off meeting coming soon (up to final conference)
Project > JTS Attendance at programme events, contribute to programme network
Participate in seminars, workshops (communication, capitalisation)
Communicate dates to JTS for publication
Use Programme tools for project dissemination and building community (website, social networks, library)
Project > projects Capitalise and create synergies at any scale
From former and on-going experience
Create links with projects sharing a common approach (theme, aims, etc.) invite to events, work on common initiatives (newsletter for example, etc.)
BREAK BARRIERS, AVOID ISOLATION AND CONFINEMENT
1. Progress of the project: individual
quality follow up c. How do we joint our efforts?
Every 6 months a submission of:
– Progress report + annexes + list of deliverables (DBB)
– Payment claim + certifications of expenditure must be submitted to the JTS
5th call
projects
Reporting period
Date of submission
to the JTS
Starting date to
30th June 30st September
1st July to 31st
December 31st March
Art: 3.3 of the Subsidy Contract.
2. Reporting procedures: programme rules a. Reporting frequency
Progress report + annexes + list of deliverables (DBB)
signed, comprehensive (+ part 4.1. publishable information)
transparent, clear, honest
supported with annexes: productions, list of signatures, pictures in case of
events, agendas, list of participants, etc. in an organised way, easily
identifiable (+ list of deliverables + publishable to be provided in .xls format)
Payment claim + certifications of expenditure must be submitted to the JTS
- signed, stamped, accurate, etc.
- all related certificate, copies are sufficient
Send full version in digital form and hard copies (provide DVD if
necessary. In any case send DVD with all deliverables at the end of the
project).
2. Reporting procedures: programme rules b. Content and quality of reporting
1 Each partner enters activities and expenditures on PRESAGE
CTE PP
2 Lead Partner validates the other partners’ expenses on
PRESAGE CTE LP
3
FLC of each partner (centralised or decentralised system)
FLC/PP • Validates the eligible expenditure
• Generates a First Level Control Certificate on PRESAGE CTE
4 In Spain and Portugal: the FLC’s certificate has to be
validated by the responsible National Authority NA/FLC
/PP
5 The Lead Partner gathers all the certificates and produce a
payment claim + progress report on PRESAGE CTE LP
6 Submission to the JTS within the deadlines mentioned in the
Subsidy Contract LP
2. Reporting procedures: programme rules c. Reporting trail 1/2
7
The JTS verifies the report:
JTS/LP/
PP/FLC
• Conformity against application form
• Conformity of validations by controllers against national
systems
• Transfers to Managing Authority
8
The Managing Authority perform an additional control and
ensures the precision of the payment claim, then
communicates it to the Certifying Authority
MA/CA
9 The Certifying Authority draws up payment order to the
Lead partner CA/LP
10 The Lead partner transfers funds to the ERDF partners LP
2. Reporting procedures: programme rules c. Reporting trail 2/2
IPA partners will be able to make a request for advance payment, max
10% of allocated IPA budget
Each IPA partner will sign a specific Subsidy Contract
All their expenditures should be calculated in €
The Certifying Authority will draw up payment orders directly to the IPA
partner concerned
This system will be in place after the signature of the Financing Agreement between the
competent Authorities of each IPA country in question, the European Commission, and the
Managing Authority of the MED Programme.
2. Reporting procedures: programme rules c. IPA particularities
Checks to be performed each time before submitting a payment claim in accordance with article 16 of Regulation 1080/2006 for ERDF partners & 108 of Regulation 718/2007 for IPA partners
The reality of the declared expenditure
The delivery of the products and services co-financed (as described in the approved Application Form)
The soundness of the declared expenditure
The compliance of such expenditure with Programme, EC and national rules
Aims at checking the legality and the regularity of the expenditures declared by each partner
Covers 100% of all declared expenses
Administrative verifications; on-the-spot checks are recommended at least once during the project lifetime
3. Financial issues - FLC a. Definition of First Level Control
Shall ensure that activities and expenses are completed according to the national and Community eligibility regulations
Shall check:
All of the invoices, proofs of payment and any other justification document for declared expenditure
The accounting precision of the declared expenses
The mechanisms in place to avoid double funding
Shall fill in and sign the First Level Control certificate trough PRESAGE CTE:
First Level Controller Commitment
Checklist
Shall carry out checks within the deadlines set up in the Subsidy Contract
Delays impede constant cash-flow and have a negative
impact on financial performance of the projects and the programme
3. Financial issues - FLC b. Role of tasks of the controller
Each Member State (MS) / IPA Country:
Has set up a First Level Control system
Has determined the selection mode for controllers
Each partner:
must refer to the control system of the State where it is located
must follow the information provided by the national bodies on the
selection procedure
3. Financial issues - FLC c. National control systems 1/2
Centralized
System
ALBANIA*
BOSNIA –
HERZEGOVINA*
CROATIA*
GREECE
MALTA
MONTENEGRO*
SLOVENIA
UK (Gibraltar) * This system will be in place after the signature of
the Financing Agreement between the competent
Authorities of each IPA country in question, the
European Commission, and the Managing Authority.
Decentralized
System
CYPRUS
FRANCE
ITALY
SPAIN**
Portugal**
** National validations must be obtained before submitting the
payment claim. This must be taken into account in timetable
for submitting claims.
3. Financial issues - FLC c. National control systems 2/2
Donwload programme
reference documents and
guidance sorted by project
phase
3. Financial issues - FLC d. Complementary information 1/2
Example:
Downloads in
‘IMPLEMENTATION’
3. Financial issues - FLC d. Complementary information 2/2
EU
Regulations
MED
Programme
National rules
General
Framework
Specific rules
3. Financial issues - Eligibility of expenses a. Reference documents – EU / MED / national rules 1/4
Council Regulation (EC) No 1083/2006 General Regulation + related
amendments: (EC) No. 1341/2008 - (EC) - No. 85/2009 - (EC) No.
284/2009 Art. 56
Council Regulation (EC) No 1080/2006 ERDF Regulation + related
amendment: (EC) No. 397/2009 Art. 7; Art. 13
Commission Regulation (EC) No 1828/2006 Implementing Regulation +
related amendments (EC) No 846/2009 Art. 48 to Art. 53
Commission Regulation (EC) No 1085/2006 establishing an Instrument
for Pre-Accession Assistance (IPA);
Commission Regulation (EC) No 718/2007 Implementing Council
Regulation + related amendments (EC) No 80/2010
3. Financial issues - Eligibility of expenses a. Reference documents – EU regulations 2/4
Directive 2004/18/EC on Public works contracts, public supply contracts
and public service contracts + amendments: Directive 2005/51/EC;
Directive 2005/75/EC
Commission Decision 2034 from 2007 defining Rules and procedures for
service, supply and works contracts financed from the general budget of
the European Communities for the purpose of cooperation with third
countries
Practical Guide to contract procedures for EC external actions (PRAG)
3. Financial issues - Eligibility of expenses a. Reference documents – EU regulations 3/4
Each Member State defines specific rules on eligibility of
expenditures - national manuals
Project partners and first level controllers should always refer
to relevant rules on eligibility defined at national level
In case of doubt please contact NCP + JTS MED
3. Financial issues - Eligibility of expenses a. Reference documents – National rules 4/4
Necessary to carry out project’s activities/objectives
Clearly related to activities foreseen in the approved AF
Incurred during eligible periods (preparation-implementation-closure)
Incurred within MED area.
outside MED area but inside EU territory: duly justified and
approved
outside EU territory: approved case by case
Real: actually borne directly by PPs and supported by accounting
documents justifying incurred expenses/payments (invoices, pay rolls….)
Supported by document attesting administrative procedures adopted
(tenders, contract, …) .
Respect EU/Programme relevant rules
Yes
3. Financial issues - Eligibility of expenses b. Principles
Engaged and invoiced between 1st January 2007 and date of submission of
final AF
Related payments within 1 month after the date of submission of final AF
Link with preparation: direct and demonstrable
Limit: 30.000 €
Claimed: through 1° PR. Included in a specific certification of expenditure
3. Financial issues - Eligibility of expenses c. Timeframe – Preparation costs 1/2
Engaged, invoiced and paid out between:
The day after the submission of complete AF
Within date of project closure
In case costs cannot be paid out within the date of project closure:
paid out within two months after project closure
Closure administrative expenditures (First Level Control and staff costs):
may be engaged and paid out within two months after project
closure EXCEPT for projects ending June 30th 2015
Finalise documents to be submitted to FLC asap
Do not wait the end of the reporting period
3. Financial issues - Eligibility of expenses c. Timeframe – Implementation/closure costs 2/2
Staff
Durable goods
Consumable goods
Travel and accommodation
Services
External expertise
Promotion, information and publications
Overheads
Other
First level control guidelines and fact sheets providing detailes information on:
background information, guidance, supporting docs
allocating costs on budget lines
accounting
3. Financial issues - Eligibility of expenses d. Budget lines
Evidence of compliance to public procurement rules at EU and national
level: evidence of selection process
Contracts
Invoices
Durable goods: evidence of the depreciation plan adopted for each element
when depreciation applies
Proofs of payment
Durable/Consumable goods, services , external experts, promotion
Staff
List of personnel working on the project
Employment/labour contracts or internal service orders
Payslips
Timesheets
Evidence of the calculation method to calculate the hourly cost
Proofs of payments of: salary, taxes, security schemes
3. Financial issues - Eligibility of expenses e. Supporting documents 1/2
Travel and accommodation
List of personnel working on the project
Agenda/programme of meeting/event
Signed mission request/authorisation
Travel invoices original tickets and all other original documentary evidence
(i.e. boarding pass, invoices/other equivalent documents, in the case of e-
tickets an e-mail with the booking number serves as a proof etc.)
Proofs of payment
Use of own car: reimbursement request through mileage sheet, according to
national procedures and agreed values
3. Financial issues - Eligibility of expenses e. Supporting documents 2/2
Public procurement
VAT
Depreciation
Ineligible expenses (Representation expenditures, Interest on debt,
Fines, Financial penalties, Expenditure on legal disputes, Exchange
losses, Expenditures held outside the eligible period, Not supported by
the relevant public procurement procedures, Lump sum, general
estimations, unjustified calculations, VAT which is recoverable, Not
justified by project’s activities/objectives, Not supported by relevant
documentation
Revenues
3. Financial issues - Eligibility of expenses f. Special attention
According to article 3.3 of the Subsidy Contract:
«If the LP is claiming a payment for a six month period of which the amount of ERDF claimed is below the above foreseen amounts, there is no guarantee that the undeclared ERDF amount is available for the following periods, in regard to the art.93 of Regulation (EC) 1083/2006 (decommitment rule)»
According to article 3.8 of the Subsidy Contract:
«If the ERDF annuity of the MED Programme is decommitted by the Commission following the Regulation (EC)1083/2006, the authorities of the aforesaid programme reserve the option to cancel the ERDF subsidy related to expenses not incurred in due time.»
3. Financial issues – Decommitment rule 1/2
If the Programme is not able to report the target of the relevant year,
it will lose the ERDF not reported.
This reduction will impact on the projects.
Projects not respecting their contractual commitments could see
their ERDF budget reduced.
Selection Committee will decide the method of application of the
decommitment rule.
3. Financial issues – Decommitment rule 2/2
Partners must ensure that all accounting documents linked to the project
are available and filed separately
Original copies of documents to be kept by each partner
Until December 31st 2021
Later if requested at national level
The Lead partner is responsible for the implementation of suitable audit
trail – overview
Copies of documents to be sent to Lead partner (e-version) –
recommendation
3. Financial issues – Audit trail 1/2
Partner must have a mechanism in place to avoid double funding (= same
expenditure reimbursed by different sources of funding)
In order to ensure a clear identification of the expenditures:
Opening of a specific bank account for the project payments (or a
separate project code);
Recording of the costs in expenditure lists by budget line, component
and reporting period;
Noting the allocation (project title and project number) directly on the
invoices/equivalent documents
3. Financial issues – Audit trail 2/2
Thank you for your attention
Joint Technical Secretariat
MED PROGRAMME
www.programmemed.eu
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