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