Financial update and report slides Janet Jeppsson, ARVMAC financial coordínator Sept 21, 2008

Spendings per Jul 31 in relation to total budget TOTAL Budget Period 1Nov-Jul P2 P1+P2% of budget Spent so far Direct Personnel Travel Equipment Consumables Training costs Dissemination/Workshops Sub-total IndirectOverheads (Up to 20%) Management Costs without overheads Other budget amendments 0 Total Costs %

Spendings vs. Payments Period 1Nov-Jul P2 1st Payment Expendi- tures % of 1st payment 2nd Payment Expendi tures % of 2nd payment % of total pay ments PARTNER KI Coord/management % %75% KI Research % %80% IPH - Makerere % %81% STI - Switzerland % %74% IHI - Ifakara % %73% ITM - Antwerpen % %103% UKL-Heidelberg % % CRSN - Nouna % %72% TOTAL % %78%

Payments, Budget, Spendings and Balance Period 1 Period 2 1st PaymentBudget P1Spent P1Balance 2nd Payment Budget P2 Spent jul-nov Payments balance PARTNER KI Management KI Research MUSPH STI IHRDC ITM UKL-H CRSN TOTAL January 2007April 2008

Payments  Payment to partners from CO within 30 days after receiving the payment from the Commission  New advance payment after approval of the reports  1st Payment = € 700,694 (first 18 months)  2nd Payment = € 701,451  3rd, 4th and Final Payments of maximum € 998,855

Reporting  Scientific Report  Partners’ Periodic Financial/Management Report: - Form C - Financial statement from each partner - Brief description of work performed; explanatory note on major cost deviations (if any); Summary explanation of impact of major deviations from plans and budget. - Table 3: Cost-Budget follow-up - Table 4: Person Months Status More specific instructions will be sent out. Reporting deadline for Period 2: Partners’ reports to KI: October 31st, 2008

Audit Certificate  In ARVMAC, an audit certificate will only be required at the end of the project, covering all 4 reporting periods  Nevertheless, (even though it can’t be financed from the ARVMAC budget) it is recommended to do an audit early in the project, in order to assure that one is on the right track.  Examples of documents requested during an Audit:  Personnel costs: employment contracts, payroll records, time sheets  Equipment: invoices, proof of payment  Travel expenses: invoices, mission approval forms, record of meeting

Costs  What costs can be reimbursed?  All costs that are eligible.  Eligible costs – Costs that are actual, economic and necessary to the project – Incurred during the duration of the project – Determined in accordance with the usual accounting principles of the partner – Recorded in the accounts of the partner  Non-eligible cost – Taxes, interest, exchange losses, excessive or reckless expenditure etc Spendings and receipts  There must be clearly specified receipts for all costs charged to the project  Travel: Purpose and notes, or conference/ meeting programme  Receipts have to be archived (at each partner’s office) for five years after the end date of the project

 For ALL personnel funded by the project  Signed by the employee plus responsible researcher/ head of department  Must correspond to the: 1. Delegation Order (or similar) determining the % of time the employee will work for ARVMAC and 2. Salary / Pay slips Time reports

Example of Summary Time Sheet

Example of Time Sheet for one month

Example of file tabs - 1  Contact names, function in project, phone number, fax number, addresses  List of all consortium members with contact information(see Annex I, Participant list)  Information from project negotiation with EU(CPFs, letters from EC, signed A2c form etc.)  Contract Agreement incl Annexes I, II, III, IV, V, VI, VII  Consortium Agreement  Description of the project, of your involvement and of your project organisation (name of people employed and their function)  Ethical permissions  Significant correspondence with partners and the EC

Example of file tabs - 2  REPORTS  Scientific report  Financial Report  Final report  Audit certificates  SUPPORTING DOCUMENTS  Detailed budget – A3.1, A3.2 (from the Contract)  Incoming payments  Authorisations  Printouts from Accounting system: project accounts, balance reports  Voucher lists and copies of invoices  Personnel: employment contracts; management decisions (delegation orders); Time sheets  Purchase of equipment  Meeting documentation: Annual Project meeting, WP leader meeting. Travel orders, agendas, protocols etc

Possible EC Audits  Scientific audits - May be carried out at any time  Financial audits  Technological audits - Use and dissemination of result  Ethical audits

Subcontracting  Must be identified in the technical Annex (Annex 1).  Must be awarded on transparent grounds.  In a very simplified procedure, usually three different offers have to be received and evaluated against common established criteria.  Any subcontract must be limited to minor services and supplies. Our advice:  The Commission should be informed at an early stage if you are planning to have subcontractors.

What are “other resources”?  EU never funds 100% of a project so you need to show what other resources are available to the project. Other resources are the resources you allocate to the project that will not be covered by EU funding. It can be your own resources (e.g. personnel costs, core facilities, durable equipment etc) or funding from other bodies (e.g. foundations)