INTERREG IIIB CADSES NEIGHBOURHOOD

PROGRAMME

Transnational Training Seminar for potential

Lead Partners and Partners, 3rd call

November 9th-10th 2004, Brno

Financial Management: Obligations of a LP

1. Project budget

2. Legal basics

3. Financial flows and reporting obligations

4. Eligibility of costs

5. Financial control

6. Checklist

Project budget –

keywords,

average project sizes

KEYWORDS:

realistic / appropriate correct figures

feasible expressed in Euro

Project sizes (experiences from 2 calls)

(all figures refer to projects´ ERDF budget share)

average budgets: 1,2 million Euro

budget range: 160.000 - 2,8 million Euro

Project sizes:

budget < 500.000 Euro: 4 projects

budget between 500.000 - 1 million Euro: 29 projects

budget between 1 - 2 million Euro: 31 projects

budget > 2 million Euro: 9 projects

Project sizes (1st call projects)

0

500.000

1.000.000

1.500.000

2.000.000

2.500.000

3.000.000

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Project sizes (2nd call projects)Projektgrößen (EFRE-Anteil) - Projekte des zweiten Calls for Projects

0

200.000

400.000

600.000

800.000

1.000.000

1.200.000

1.400.000

1.600.000

Legal basics –

Subsidy Contract and

Joint Convention

Contractual arrangements

European CommissionRegulation

s

Managing Authority/Paying AuthorityJTS

• 1260/1999: General Provisions

• 448/2004: Eligibility

• 1159/2000: Information and Publicity

• 438/2001: Management and Control Systems

• 448/2001: Financial Corrections

Regulations

Contractual arrangements

JTS

European Commission

Managing Authority/Paying Authority

Regulations

Agreement

Partner StatePartner StatePartner State

Lead PartnerJoint

Convention

Project PartnerProject PartnerProject PartnerProject Partner

• Duties and Obligations of Lead Partner and Project

Partners

• Responsibilities of Lead Partner and Project Partners

• Duration of the agreement

• Activity reports and progress reports

• Budgetary and financial management

• Accounting principles

• Verification and keeping the documents

Joint Convention

Contractual arrangements

JTS

European Commission

Managing Authority/Paying Authority

Regulations

Agreement

Partner StatePartner StatePartner State

Lead PartnerJoint

Convention

Project PartnerProject PartnerProject PartnerProject Partner

Subsidy Contract

• Subsidy, object of use

• Request for Payments

• Eligible costs

• Representation of project partners, liability

• Obligations of Lead Partner

• MA‘s right of withdrawal

• Audit rights

• Publicity

Subsidy Contract

Contractual arrangements

JTS

European Commission

Managing Authority/Paying Authority

Regulations

Agreement

Partner StatePartner StatePartner State

Lead PartnerJoint

Convention

Project PartnerProject PartnerProject PartnerProject Partner

Subsidy Contract

Subcontractor Subcontractor

Subcontract

Subcontract

Financial flows and

reporting obligations

Financial flows and reporting obligations

Project PartnerProject PartnerProject PartnerProject Partner

1.: LP and PP report expenditure

1st level control

2.: certifies expenditure

Lead Partner

3.: PPs submit Activity and Financial Report

Joint Technical Secretariat4.: LP submits aggregated

Activity and Financial Report

Managing Authority/Paying Authority

5.: JTS verifies the plausibility of the reported activities and expenditure

6.: MA checks and approves the Progress Report

7.: PA releases ERDF funds

Eligibility of costs –

period, expenditure categories

• Starting date of eligibility: date indicated in the AF

and the

Subsidy contract

• Preparatory costs

• Expenditure categories: co-ordination costs,

personnel costs,

overheads, meetings/conferences/seminars, travel

and

accomodation, promotion and publicity costs, external

expertise, others, small scale investments

Financial control –

1st level control

Any expenditure related to a project will be certified by a responsible national authority or

private institution authorised to do so. (=first level control)

The certification of expenditure / the first level control shall

confirm – the delivery of the products and services co-financed,– the reality and eligibility of expenditure claimed and– that national and community rules, especially Commission Regulation (EC) 448/2004, have been respected.

First level control

Which documents have to be submitted?

• Receipted invoices• accounting documents of equivalent probative value

What has to be checked?

• 100% of the project costs indicated for the resp. Project Partner

independent from the co-funding rate

What kind of expenditure is eligible?

• Regulated by Commission Regulation (EC) No 448/2004

Implementation of First level control

Checklist

Non-eligible costs:• private expenditures• maintenance/repair cost• running operational cost• discounts, reductions• double-invoiced cost• bank charges • and others

Problematic costs:

• missing project link in subject and time matters• movable goods not clearly attributable to the project• etc.

Checklist of First level control

THANK YOU FOR

YOUR ATTENTION!

INTERREG IIIB - National Contact Point at the Austrian Conference on Spatial Planning

Contact: Andrea Cerovska / Doris Wiederwald

Hohenstaufengasse 3 A-1010 Vienna Phone: +43 (1) 535 34 44-22 Fax No.: +43 (1) 535 34 44-54

e-mail:cerovska@oerok.gv.at

wiederwald@oerok.gv.at

Internet: www.oerok.gv.atwww.cadses.at