Session 4 - Financial Workshop Ani Hovsepian, Samir Nassar, Ingrid Trauner Call deadline 12/05/2016 (Call not related to the 2016 European Week of Sport)

Overview of the presentation Application stage: Funding rules for the Erasmus+ Sport actions Principles applying to EU Grants Application: structure of estimated project budget Financial tips per budget heading Ineligible costs Contracting stage: Requirements for contracting procedure Verification of financial capacity Grant Decision/Agreement Payment arrangements 2

3 Application stage – project budget

Funding Rules 4 Collaborative Partnerships Small Collaborative Partnerships Not-for-profit European Sport Events Max. Grant EUR EUR EUR Co- financing Max. 80 % Pre- financing 70 % of the grant awarded Duration 12/18/24/30/ 36 months 12/18/24 months Up to 12 months Type of contract Grant Agreement Grant Agreement / Decision

REMINDER Collaborative Partnerships + Small Collaborative Partnerships (NEW): Applicant and partner organisations Multi-beneficiary (mandates) For each budget category: estimated costs per partner 5

REMINDER Not-for-profit European sport events: -Only applicant, no partners -Mono-beneficiary -Costs of sending organisations may be covered by beneficiary organisation provided that they are necessary for the project and clearly indicated in the budget table 6

7 Principles applying to EU Grants: and dual careers of athlete No retroactivity No-profit principle Co-financing principle Non-cumulative award

Structure of the project budget Staff only = (balanced)

Structure of the estimated project budget: Direct Costs: directly linked to the implementation of the project activities and can be attributed directly to the project Indirect Costs: incur in connection with the implementation of the project activities but cannot be clearly attributed to the project e.g. electricity, office rent, equipment for project administration flat-rate of max. 7 % of total eligible direct costs 9

Financial tips per budget heading: Staff costs: refers to personnel working under an (employment) contract with the applicant/partner organisations respect usual applicants/partners remuneration policy key staff in budget and project team of 'Project description' need to correspond clear reference to the activities in which staff is involved in 10

Ad Staff costs: Calculation of staff costs (example): –average working days per year –gross salary + employer's social contributions (no bonus, incentive or profit sharing arrangements) –e.g. Gross salary: ,00 € Employer's social contribution5 632,60 € Annual costs21 632,60 € ,60 / 220 = 98,33 € average costs per day 11

Travel and subsistence costs - for STAFF ONLY: Small/Collaborative Partnerships: activities must take place in the countries of the organisations involved in the CP Who + from/to + for which activity / explanation on cost calculation The economically most advantageous means of transport should be chosen 12

Ad Travel and subsistence costs : Subsistence costs cover accommodation, meals, and local transport No accommodation costs for local staff/ participants Coherence between travel and subsistence costs 13

Equipment costs: No equipment related to project administration Purchase, rent or lease of equipment (new or second hand) incl. installation, maintenance, insurance – choose economically most advantageous way Apply usual deprecation rules of applicant/partner (depreciation applies for any purchase above 500 EUR) 14

Ad Equipment costs: No acquisition, construction or renovation of sport infrastructure or equipment Correct application of DEPRICIATION and USAGE RATE 15 Usage rate: If 1 month: 100% / 12 = 8,33% If 2 months: 100% / 12 x 2=16,67% Usage rate: If 1 month: 100% / 12 = 8,33% If 2 months: 100% / 12 x 2=16,67%

Consumables and supplies: Consumables and supplies directly linked to the action: e.g. photocopies, office supply specifically for the project (otherwise: indirect costs) Costs for project publications  Subcontracting 16

Subcontracting Costs: Tasks may be subcontracted, provided that - subcontracting covers only a limited part of the action -recourse to subcontracting is justified (Project Description) -estimated costs of subcontracting clearly identifiable in the estimated budget 17

Ad Subcontracting Costs: Award of contract to the tender offering the best value for money and in absence of any conflict of interest Rules for subcontracting exceeding EUR may be defined in the Special Conditions of the Grant Agreement/Decision The management and the general administration of project shall not be subcontracted 18

Duties, taxes and charges: related to the implementation of the action e.g.: -costs for visa applications or travel insurance -charges due to public authorities e.g. for the registration of an event with a municipality Do not indicate non-recoverable VAT amounts in this budget heading 19

Other costs: Costs arising directly from requirements imposed by the grant agreement, e.g. -Audit costs, costs of financial guarantees Costs for the project not covered by other categories, e.g. -Costs for translations or publications if not subcontracted -Travel and subsistence costs not related to staff (speakers, trainees etc.) 20

Ineligible costs (examples) Return on capital Debt and debt service charges, doubtful debts, provisions for losses or debts Interest owed Exchange losses VAT, if recoverable Excessive and reckless expenditure 21

Ineligible costs (examples) costs of any buy-out option in case of renting/leasing of equipment Costs of transfers from Agency charged by the bank of the beneficiary Costs declared in the framework of another action receiving an EU grant (e.g. indirect costs – operating grants) Contribution in kind from third parties 22

General tips for drafting the budget Coherence between: e-Form, detailed excel budget table, Declaration of Honour Allocate estimated costs in the right budget heading Budget is justified in relation to the planned activities Avoid excessive cost estimations (staff costs) Application is in line with the specific provisions of the relevant call for proposals 23

24 Contracting stage

Requirement for contracting procedure Award decision signed PIC of applicant (+ partner) validated Bank account of applicant validated Financial Capacity verified Originals of mandate letters available - only in case of Small/Collaborative Partnerships (Modified budget signed by beneficiary) 25

Financial Capacity Verification Applicant has stable and sufficient sources of funding? Required: - Financial Capacity Form - Annual accounts for the last 2 years Does not apply: - to public bodies - to international organisations - in the case of a grant request ≤ EUR 26  For Small Collaborative Partnerships NO verification of financial capacity  For Small Collaborative Partnerships NO verification of financial capacity

In case Financial Capacity is considered weak? Grant Decision/Agreement with: -pre-financing covered by a financial guarantee provided by an approved bank or financial institution or by a third party or -pre-financing in several instalments or -without pre-financing 27

Contracting Procedure Grant Decision or Grant Agreement Specific provisions in case of multi-beneficiary agreement i.e. Small/Collaborative Partnerships: - co-beneficiaries sign a mandate - coordinating organisation signs -all partners become beneficiaries of the agreement 28

The Grant Agreement / Grant Decision Special conditions and annexes Annex IDescription of the action Project description Annex IIGeneral conditions = legal, administrative and financial provisions Annex IIIEstimated budget of the action Annex IVList of co-beneficiaries + mandate letters Only for (Small) Collaborative Partnerships Annex VModel technical report Final narrative report Annex VIModel financial statement Final financial report Annex VIIList of supporting documents or guidance notes - List of Invoices - Report of factual finding on the financial report TYPE I

Payment Arrangements In General Pre-financing payment - In principle, upon entry into force of the Grant Agreement / Decision Payment of the balance -Upon acceptance of the Final report and its compulsory annexes according to the type of contract - 30

Functional mailbox: Website: