1 DG EMPL/B4 Administrative and Financial Rules

2 = Leading partner. The only one with whom Commission has legal links Beneficiary

3 Any modification regarding :  Bank account  Beneficiary => done in writing with clear references Title + VS ref + SI2 ref = Addendum => 10 days to 1 month time! Request for payments (2) Legal Entity - Bank Account

4 Budget detailed and balanced (art. 173(3) IR) –In Euro (conversion rates of OJ : –Exchange rate risk for applicant –Same 2 totals (available income (including grant requested from Commission) & expenditure) –Include all items related to the implementation of the action Expenditure –Include estimated costs exclusively for the implementation of the action Income –Total income = total expenditure –Must show : Beneficiary’s contribution in cash Revenue generated by the action Union grant Budget

5  Travel costs =>  Staff costs Headings

6 = Any service undertaken by an external party in connection with the implementation of the action Tasks of Subcontractors clearly specified in the relevant annex of the application form Sole responsibility of the beneficiary Relevant terms applicable also to subcontractors Main rules for beneficiary : Seek competitive tenders (the best value for money) Observe the principles of transparency/equal treatment Avoid any conflict of interests Subcontracting

7 Awarded in the following cases : a)Cover the execution of a limited part of the action b)Justified in relation to the nature of the necessary tasks for the implementation of the action c)Tasks to be subcontracted and corresponding estimated costs to be set out in detail in the budget d)Prior written authorisation by the Commission to recourse to the award of contracts during the action e)Sole responsibility of the beneficiary f)Above mentioned terms applicable also to the subcontractor Subcontracting (2)

8 Not exceed most reasonable rates available on the market or do not exceed the scales approved annually by the Commission Done by the most direct and economic route For per diem allowance possibility to opt for use of the Commission ‑ approved scales Expenses must be clearly notified for the Auditors Travel costs

9 Indirect costs incurred in connection with the eligible direct costs for the action : Max flat-rate of 7% of total eligible direct costs for the action Not supported by accounting documents Not if beneficiary already receives operating grant from Union budget during the period Include :  Maintenance  Stationery  Photocopying  Mailing postage  Telephone/fax costs  Heating  Electricity (or other form of energy)  Water  Office furniture  Insurance  Other expenditure necessary for the successful completion of the project (Postage) Overheads

10 See Art. II.14.4 General Conditions Not eligible unless beneficiary can proof that he is unable to recover it VAT

11 Minor changes  just inform Commission in writing  Transfer between headings/eligible costs  Not affecting implementation action  < 10% of amount per heading (see next slide) Important changes  SWIM + REQUEST  Request to the Commission in writing  Modify budget in SWIM ( Same file number and access code as for the grant application!)  = Addendum to the contract (+/- 10 days) Request of amendments to be sent on time :  it is due to take effect at least 1 month before the closing date of the action To be also submitted electronically in SWIM: 1.Financial documents for interim payment 2.Financial documents for balance payment 3.Requests for modifications of the budget (addendum) Budgetary modifications

12 Minor changes  no need Changes of legal nature  compulsory  Budget (headings)  Bank account  Legal representative  Change of address  Changes regarding the tasks' description =>  Request to the Commission by written + additional appropriate documents  Purpose and effect must be accepted by the Commission by written. Supplementary Agreements

13 The following reports have to be submitted :  A preparatory phase report: upon completion of the preparatory phase  present all elements specified in the relevant section of the call,  at the latest 8 months after the start date of the operation,  accompanied by an elaborated (adjusted) WP for the following 6/12 months;  Annual reports: to inform about activities, possible deviations from the work programme and results,  at the latest 2 month after each year of operation,  accompanied by an elaborated (adjusted) WP for the following 12 months;  A final report: to present the results and the lessons learnt, and information to justify the final financial statement of all actual expenditure and actual revenue (to be attached)  no later than 3 months after the end of the closing date.  In case a payment claim is not submitted together with an annual report, an additional interim report has to be submitted covering the period between the latest annual report and the date of the request for interim payment. Submission of reports

14  To be submitted by the beneficiary.  Not an "activity report", but review work programme based on the experience of the first months, regarding:  the final composition of the partnership, and the roles and contributions of each core partner;  a baseline study including a diagnosis of the problem to be addressed and an assessment of its relevance across Europe;  a detailed (and adjusted where necessary) work programme for the following 6-12 months (including the methodology for on-going monitoring and evaluation);  the indication of the expected results of the network for the network partners, and for the partners' Operational Programmes (action plans to implement results and to set up corresponding networks at OP level);  the description of methods that will be used to achieve these results;  the communication and collaborative tools for exchange, learning and dissemination, including an outline of the methods for involving the stakeholders required for success;  the signature of contractual agreements between the lead partner and service providers.  Information on content-related outputs; potential weaknesses and shortcomings; initial ideas and suggestions to be shared with other networks, both in terms of content and working methods.  The Commission may request additional information within 60 days of reception of the report. Preparatory phase report

15 Post + Official request + supporting documents With clear references : Title + VS ref + SI2 ref If for the Commission, there is a problem  with the report  the invoice => STOP on payment of the invoice Request for payments (2) Payment procedures – How?

16 A first pre-financing automatic payment of 30% at the signature An interim payment < within 2 months following ½ execution period when receiving:  an interim technical implementation report of the action  an interim financial statement of the eligible costs actually incurred  detailed statement of the costs already incurred – to be introduced in SWIM  Clearing of all or part of any pre-financing not to be forgotten  Note that the amount of pre-financing + interim payment < 70% max grant amount specifies in I.3.3 The Balance when acceptance by the Commission of  the final technical implementation report  To be sent < 3 months from the closing date  The final financial statement – to be introduced in SWIM Payment procedures – When?

17 Beneficiary mention clearly :  they received funds from EU : In any publication In other materials During activities for which grant is used Using the wording “With support from the European Union” Visibility of the EU logo (  Sole responsibility with the author and that the Commission is not responsible for any use of the information  References specified in the text of the call for proposals  If not : penalties Beneficiary authorises the Commission to publish information :  Beneficiary’s name + address  Subject of the grant  Amount awarded + rate of funding of the costs of the action Publicity

18 Originals to be kept by beneficiary for 5 years from balance payment date ( Art. II.19.2 General Conditions) Exceptionally originals could be replaced by certified documents Invoices not to be sent to the Commission Beneficiary to be able to present all originals to the Auditors Request for payments (2) Documents

19 Lessons learnt from previous controls: The lead organization is the sole responsible party to the EC. Clear connection of costs with the subject of the agreement. Eligibility of ALL costs. Staff costs: time sheets, calculation of daily rates & description of tasks. Costs must be appropriately supported with valid documents. Checks and Audits

20 Solution in: 1.Your grant agreement 2.Text of the Call for Proposals 3.Financial Regulation & Implementation Rules If you did not found it : All Communication with the Commission by:   Post Do not forget Clear references! Title + VS ref + SI2. ref A question ?