Tempo! De minimis funding

Pilot project on streamlined cost controls 1 June 2017–31 May 2018

How will the project's goals and progress be reported to Tekes?

Start with this

• Read the funding decision and the terms and conditions carefully.

• The terms and conditions of funding are an important part of the decision and compliance with them is a condition for the payment of funding.

• Project reports are submitted via the Tekes Online Service. Make sure that the user rights in the project are assigned to all who need them.

• Instructions for reporting via Online Service

• Submit the approval of funding decision via the Tekes Online Service.

• In some cases, the decision may be given as conditional. Only send the approval notification once the condition is fulfilled.

... and immediately after this• Arrange for project accounting as soon as the project has started.

• The purchased services under the project must be itemised and the relevance to the project demonstrated.

• Hourly monitoring of working time used under the project is not required, but the beneficiary must be able to identify the people who worked for the project and the wages and salaries subject to withholding tax paid.

• The costs must:• arise from the project during the project period,

• be entered into the beneficiary’s accounts,

• be paid by the time of submitting the final report.

• An expense based on an order placed before the beginning of a project phase cannot be allocated to the project unless the order has a cancellation clause in the event that the project does not go ahead.

Highlights of the terms and conditions

• The funding is provided under de minimis regulation, and the entire sum forms part of the beneficiary’s total de minimis accrual, regardless of whether the costs will be actualised. The monitoring of the accrual is the responsibility of the beneficiary.

• The following funding-related information will be public: the beneficiary’s name, business ID, size, sector, region, form of financing, the date of the decision, the amount of funding granted and the amount paid.

• When the beneficiary shares information about the project or its results, they are obliged to credit Tekes as a funding provider.

• Tekes may exchange information regarding the funding beneficiary with other funding providers and public authorities.

The terms and conditions pose certain limitations on the eligible costs.• Under de minimis regulations, direct costs related to export

volumes, the establishment and the operations of a distribution network, or any other export activities are not accepted.

• However, costs arising from distribution agreement negotiations and selection of distribution partners are regarded as eligible costs.

• Similarly, direct investments and operating costs arising from warehousing, logistics centres and other distribution operations are not eligible.

• Tekes accepts costs for purchases from group companies, but not from other associated companies.

Public funding for the project

• Tempo projects may not include costs for which other public funding has been received.

• The beneficiary must comply with the Act on Public Contracts.• A purchase must be subject to tendering as a public contract when its value,

exclusive of VAT, exceeds the threshold value laid down in the law, €60,000 (1 Jan 2017)

Changes during the project

• If essential changes are required in the project implementation, we advise you to discuss these with a Tekes advisor as soon as the need arises.

• On significant changes, an application must be submitted to Tekes; the template is available at www.tekes.fi/asiointi/lomakkeet/

Reports must be submitted via Online Service.• The final report must be submitted via the Tekes Online Service

www.tekes.fi/asiointi/

• The report may only be modified by those authorised to view project information.

• The accountable project leader submits the completed report.

Reporting

• The report must include information on

• the attainment of objectives as recorded in the decision,

• if the objectives were not achieved, the key problems and reasons for this and the measures that the company intends to take in order to achieve the objectives,

• how the project was implemented,

• the most significant deviations from the project plan,

• how the company plans to continue its work going forward.

• The report must be submitted to Tekes within four months from the end of the project.

• The remainder of the funding will be paid on the basis of the final report.

Costs need not be declared

• The beneficiary does not need to report the actual costs of the project.

• However, if necessary, the beneficiary must be able to itemise purchased services and show proof of payment of salaries/wages.

• Tekes has the right to request information required for monitoring the project.

This information may include:

• the names of persons working on the project and the salaries, subject to withholding tax paid,

• copies of receipts, itemised invoices and the selection criteria for purchased services.

Payment depends on reporting

The final outcome of the project Payment of funding

The essential goals are mainly attained. The amount is paid as quoted in the decision.

The objectives were not fully attained, but the project was essentially completed in accordance to the project plan.

The amount is paid as quoted in the decision.

The objectives were mainly not attained and there were serious shortcomings in the project implementation. The company has, however, made some progress with the project.

As a rule, the remainder of the funding will not be paid. A partial clawback may be considered if the level of project implementation is very modest.

The goals have been mainly unattained and funding has clearly been used in non-compliance with the project plan.

The final payment will not be paid, and the paid advance will be reclaimed.

The accountable project leader is responsible for ensuring that: • the funding has been used on actions in compliance with the

project plan,

• the funding has not been used for purchasing services from associated companies other than group companies,

• the funding has not been used for supporting exports, to establish a distribution network or for operations in other Member States or third countries.

To conclude

• All documentation related to the project must be kept for 10 years from the last instalment of the funding payment.

• Tekes, the National Audit Office, the European Commission and the European Court of Auditors have the right to audit the finances and operations of the beneficiary as required for the payment of the funding and supervision of its use.

• In the event of any non-compliance or misuse of funding, Tekes has the right to reclaim the funding either partially or in full with interest.

• At the end of the project, we recommend you contact Tekes to discuss your future plans.