Name, Surname, Position Event, Date, Place Financial issues

Name, Surname, Position Event, Date, Place Where to find the financial rules? The financial rules explained in the following are laid down in The Common Provisions (CPs) (Previously known as SAPs) The Common Provisions are your MAIN guide to project management and should always be on your desk!

Name, Surname, Position Event, Date, Place The Basics - 1 The Grant Agreement foresees a maximum amount of contribution and maximum percentage of funding to the eligible costs The EU’s contribution is determined by applying percentages in the Grant Agreement to eligible costs incurred. –No other direct or indirect European Union funding will be used to co-finance the project CP Art 20

Name, Surname, Position Event, Date, Place The Basics - 2 The maximum contribution given in the Decision is never increased Revenue must be declared - Any profit is treated as direct income to the project - EU contribution may decrease Bank account must make it possible to identify EU funds –Interest accrued should be declared CP Art 20

Name, Surname, Position Event, Date, Place Eligible Costs Provided for in proposal Directly linked to project activities Reasonable - ‘sound financial management’ Incurred during project lifetime –apart from the Audit (+bank guarantee) Fully paid before submission of Final Report CP Art 21

Name, Surname, Position Event, Date, Place Ineligible Costs - 1 Dual funded Exchange rate losses ‘Unnecessary or wasteful outlays’ Promotion of commercial activities Provisions for future losses Interest on debts Bad debts Entertainment expenses Costs from other projects Assets and services donated Any costs for Commission agents or MoT Studies not directly related to the project Investment in major infrastructure Fundamental scientific research Protection of Intellectual Property rights LIFE environment: Land purchase and similar costs (CP Art 34) CP Art 22

Name, Surname, Position Event, Date, Place Ineligible Costs - 2 Fundamental scientific research Protection of Intellectual Property rights LIFE environment: Land purchase and similar costs (CP Art 34) CP Art 22

Name, Surname, Position Event, Date, Place The ‘Public Servant Rule’ “The salary costs of a civil servant/public employee shall be considered eligible for the determination of the maximum amount of the grant only to the extent that they relate to the cost of activities which the relevant public authority would not carry out if the project concerned were not undertaken. The share of such costs referred to the salaries of civil servant/long term public staff already working for the beneficiary/partner shall in any case be entirely covered by the public beneficiary/partner concerned as its own contribution to the project.” CP Art 21.2

Name, Surname, Position Event, Date, Place Notes on Costs - 1 Personnel –Gross salary plus obligatory social charges * time on project –Service contracts may be included - see CPs Travel –In accordance with ‘normal internal rules’ –Need permission for travel outside Europe unless specified in the application External assistance –Not more than 35% of total eligible cost –Purchase or leasing under subcontract declared separately CP Art 21

Name, Surname, Position Event, Date, Place Notes on Costs - 2 Durable goods –Internal accounting standard must be used to calculate depreciation, up to the following ceilings... –Infrastructure 25% eligible –Equipment 50% eligible –Prototypes ALLWAYS 100% eligible –For LIFE-Nature projects, costs incurred by public authorities or NGOs will be considered eligible in full - subject to the assignment of these goods to nature conservation activities beyond the end of the project –Depreciation costs of durable goods acquired before the starting date of the project are ineligible CP Art 21

Name, Surname, Position Event, Date, Place Notes on Costs - 3 Consumables –Items not on the inventory of durable goods and not treated as capital expenditure Other costs –Any cost necessary for the project, not falling within a defined category (e.g. bank guarantee, independent audit) Overheads –Flat rate of 7% of total eligible direct costs CP Art 21

Name, Surname, Position Event, Date, Place First Pre-Financing Payment 40% of EU contribution Send ASAP to Commission –Signed copy of Grant Agreement –Signed Payment Request including –Details of beneficiary –Bank details –For private sector: bank guarantee – see Grant Agreement Annex 1 CP Art 23

Name, Surname, Position Event, Date, Place Second Pre-Financing Payment 30 % of the EU contribution Conditions for Payment –Submission of a Mid-term Report when at least 150% of first payment has been spent –Paid within 45 days of approval of Interim Report CP Art 23

Name, Surname, Position Event, Date, Place The Balance (Final Payment) Balance of the EU contribution Conditions for Payment –Submission of a Final Report up to three months after the technical close of the project –Paid within 45 days of acceptance of Final Report CP Art 23

Name, Surname, Position Event, Date, Place Statement of Expenditure and Income Submitted with Mid-term and Final Reports Use standard forms Justifying documents may be required by the Commission –so keep all invoices, timesheets, salary slips etc. Use the Euro (€) –Refer to paragraph 25.4 –Exchange rate from VAT is eligible if it cannot be recovered from national authority CP Art 25 & 26

Name, Surname, Position Event, Date, Place READ the Common Provisions!!! If doubt arises, the Common Provisions prevail –Even if something else is written in your proposal!