Reporting and payment claims Financial Unit Reporting and payment claims Black Sea Basin ENPI CBC Programme Training for Grant Beneficiaries and Partners Bucharest 18 September 2013

Financial reporting in contract Financial Unit Financial reporting in contract The narrative and financial reporting is described in article 4 of the Special Conditions of the contract and complemented by: Article 15.1 of General Conditions derogated by art. 7.2.15 SC , explaining the conditions for payment claims and the documents to attach Annex V to contract: model of payment request Annex VI to contract: model of financial report Annex VII to contract: model of expenditure verification report

Payment claims during the project Financial Unit Payment claims during the project According to General Conditions article 15.1 Option 2 derogated by Special Conditions art. 4.2 Option 2, for projects not exceeding 24 MONTHS and where the financing provided by JMA is between 100 000€ up to 700.000€, there is: A pre-financing of 30% from ENPI grant after the signature of the contract Forecast second pre-financing instalment representing maximum 50% of the ENPI grant: With expenditure financed by a grant amount (by applying the percentage set out in Special Conditions) standing at least at 70% of the previous payment and 100% of any previous ones Supported by an INTERIM REPORT and Expenditure Verification Report( (Annex VII) Total sum of pre-financings not exceeding 80% of ENPI grant.

Payment claims during the project Financial Unit Payment claims during the project A balance representing maximum 20% of the grant, accompanied by: a request for payment of the balance conforming to the model in Annex V, an expenditure verification report required under Article 7.2.15 Special Conditions derogating the Article 15.6 General Conditions. (Annex VII) The balance shall constitute the remaining amount of the Grant entitled to the Beneficiary as based on the total accepted eligible costs of the part of the Action and balanced with the instalment of pre-financing. The reports shall cover the Action as a whole, regardless of which part of it is financed by the JMA.

Annex VI of Grant Contract (Excel file) Financial Unit Annex VI of Grant Contract (Excel file) The financial part of Annex VI is an Excel sheet with five parts: General information on how to use it Forecast budget and follow-up Interim Report Sources of funding Final report LET’S SEE THEM IN DETAIL!

General information Financial Unit Nota bene: The Beneficiary alone is responsible for the correctness of the information in the tables check the information sent by your partners!! Forecast budget and follow-up Requested only for information purposes but very useful also for your project financial monitoring!! Other The sheet “sources of funding” has to be included both in interim and final reports Figures have to be rounded to the nearest euro cent

Let’s see an example of calculation of exchange rate for the report! Financial Unit Use of exchange rates Exchange rates: The project accounting has to be kept in the national currency used by each partner Interim and final reports include, for each budget line, four columns for each currency: number of units, unit cost in original currency, total cost in original currency and total cost in Euro Exchange rate to use is the arithmetical average of the one in Inforeuro for the concerned period (sum of the exchange rates of the months of the reporting period rounded to 4 decimals, divided by the number of months) Let’s see an example of calculation of exchange rate for the report!

Use of exchange rates Financial Unit Go to Inforeuro web site, indicate your currency and press Enter http://ec.europa.eu/budget/inforeuro/index.cfm?Language=en

Use of exchange rates Financial Unit Click “Download in table format” and open the Excel file with all the monthly exchange rates: http://ec.europa.eu/budget/inforeuro/index.cfm?fuseaction=currency_historique&currency=507&Language=en

Use of exchange rates Financial Unit Calculate the average exchange rate to use in the Excel (see example for a reporting period from Mar 2011 to August 2011):

Interim/ Final report Financial Unit The amount of eligible expenditure has to be indicated in the sheet called “Interim Report”

Interim/ Final report Financial Unit Identify the project with its number and implementation period, indicate the period covered by the report and copy the budget in the contract

Interim/ Final report Financial Unit If JTS/JMA has authorized any reallocation between budget lines or the use of part of the reserve for contingency, indicate it in the columns beside the “original” budget

Interim/ Final report Financial Unit For each currency and budget line, fill-in the requested information: number of units, unit cost, total cost in original currency and total cost in Euro, using the exchange rate, calculated as mentioned in previous slides

Interim/ Final report Financial Unit For each category, add up the number of units from all currencies and the total amount in Euro for each currency: Fx-rate: 4.1636 Fx-rate: 10,91488 # Units Unit cost (in currency n°1) Total cost (in currency n°1) Total cost (in EUR) Unit cost (in currency n°1) Total cost (in Units total # for all currencies Total cost of the period (in EUR) (d 1 ) (e (f1)=(d1)*(e1) (g )= (f )*(Fx-rate Sum (d à d n (h)= Sum (g g Per currency Total for the period in EUR Romanian Leu (RON) Exchange rate pof the period (01/11/2011-30/06/2011): Ukranian Hryvnia (UAH) Exchange rate pof the period (01/01/2001-30/06/2011): (i) (h)+(i) Cumulated costs (from start of implementation to present report included) (in EUR) Cumulated costs (before current report) (in EUR) Add the cumulated costs of previous period, if it is not the first payment claim, and calculate the cumulated cost

Budget forecast and follow-up Financial Unit Budget forecast and follow-up This is a key table to verify that the project remains within the budget flexibility rules, as mentioned in article 9.2 of the General Conditions and it will still remain at the end of the following period. As a result of this calculation, you may identify the need to request authorization for a budget change. Forecast Budget & follow-up Real Previous Period 1. Human Resources 1.1 Technical 1.1.1 Technician Per month 1.1.2 Technician 2 1.2 Administrative Contract n° Implementation period of the contract (dd/mm/yyyy-dd/mm/yyyy) Unit # Units Unit cost (in EUR) Costs (in EUR) Following period (dd/mm/yyyy-dd/mm/yyyy) Forecast Previous Coût unitaire (en EUR) Coûts Expenditures

Financial Unit Sources of funding Last but not least, do not forget that it is compulsory to include the table with the actual sources of funding so far.

Annex V: request for payment Financial Unit Annex V: request for payment Annex VI with the table has to be an attachment to Annex V, which is the formal request for payment. You will find the model as an annex to your contract.

. Financial Unit Thank you for your attention! Petruța VOICU, Counsellor Directorate of Programme Authorizing European Territorial Cooperation Programme Authorizing Unit petruta.voicu@mdrap.ro diana.stanciu@mdrap.ro raluca.pahontu@mdrap.ro liana.phanzu@mdrap.ro