The LIFE Programme: the EU funding tool for the Environment and Climate Action Lorenzina Bruno, Senior Financial Officer EASME – C.1.6 LIFE NGO Kick-off meeting 26/04/2016

FPA – general information SGA – general information Financial report  General information  Eligible costs  Common errors to avoid  Recommendations EASME financial team Reporting, contractual and financial issues

FPA duration: 2 years Entry into force: 01/01/2016 (art. I.2.2) Framework Partnership Agreement (FPA) – General information

SGA duration: 12 months Starting date: starting date of financial year (art. 2.2) Maximum EU funding rate: 60% Maximum EU funding: € Specific Grant Agreement (SGA)– General information

1st Prefinancing payment (PFP) within 30 days after reception by EASME of signed grant agreement : - 60% of EU funding for most of NGO's - 30% of EU funding for few NGO's having a low financial viability result Specific Grant Agreement (SGA)– General information

2 nd Prefinancing payment might be requested (by NGO's which received 30% 1PFP) when: - 70% of previous PFP has been used up - Technical report and financial statement are provided =>Payment: 30% of EU funding (within 60 days after reception of financial statement/report) Specific Grant Agreement (SGA)– General information

Payment of the balance within 90 days (max 40%), after reception and acceptance of: - Final technical report and summary financial statements - Certificate on financial statements when EU contribution is at least € Specific Grant Agreement (SGA)– General information

Organisations that do not have to submit a certificate on financial statement have to provide: - Copies of invoices for 3 highest items for each budget category (except for travel & staff) - Copies of contract/payslips and rate calculation table for staff not working full time on the WP and reporting the highest cost =>Documents to submit 60 days after end of reporting period (extension can be requested for NGOs that need to provide audit certificate which is delayed) Specific Grant Agreement (SGA)– General information

Award of contracts and subcontracting: - procurement contract with value >60.000€; 3 offers to be requested - Procurement contract with value > €; call for tender to publish => Best value for money and absence of conflict of interest Budget transfers between budget categories are allowed up to 20% of total eligible costs without amendment Financial report – General information

Exchange rate option to select Depreciation reported in months (use and %) VAT not recoverable and claimed to report (if not possible, confirmation by auditor that rates are reasonable) Overheads to include in other costs category Financial report – General information

Templates and guidance available: Second pre-financing payment financial report (subject to 70% 1PFP use) Final payment report Certificate on financial statement Financial and administrative guidelines Financial report – General information

Actually incurred by the beneficiary Incurred during SGA WP duration Indicated in estimated budget (Annex II) Linked to WP, in line with Annex I and necessary for its implementation Identifiable and verifiable (accounting records of beneficiary and in line with applicable accounting standards of the country) Financial report – Eligible costs (art.II.19.1)

Complying with tax and social legislation requirements Reasonable, justified and complying with principle of sound financial management (economy and efficiency) Financial report – Eligible costs (art.II.19.1)

Costs not actually incurred Costs incurred by member/affiliated organisations Staff costs declared for persons not working under an employement contract (unless natural person conditions are met) VAT recoverable claimed Expenses out of eligibility period Expenses not in connection with WP Expenses not foreseen in the estimated budget Financial report – Common errors to avoid

Any deviation from the budget should be explained (template will be available to follow- up deviation %) Double claim of costs must be avoided (!overheads - simultaneous action grant!) Best value for money principle to follow for procurement contracts Income generated by WP should be declared Financial report - Recommendations

Supporting documents to keep for 5 years from the date of payment of the balance Certificate on financial statement should cover the total eligible costs of the work programme not only the EU requested funding (template will be made clearer) Usual practice of organisation to follow (accounting, rules, salaries, reserve,..) Financial report - Recommendations

Reserve building up acceptable if : - done with separate resources from WP - clarification is provided (required by law, decision from the board,…) - it is mentioned in the budget (ex-ante) and resources used for it are specified - it is registered in organisation accounting (ex-post) - Supporting documents should be available upon request at the time of final payment Financial report - Recommendations

Maria Nuñez: revisions/payments Lise Vanneck: revisions/payments Tanya Hristova: revisions/payments Javier Herraiz: revisions Adriana Tuca: next revisions/payments (maternity leave) Lorenzina Bruno: Coordination Anne Vermaelen: Head of Sector EASME NGOs Financial team: Who's who?

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