Presentation is loading. Please wait.

Presentation is loading. Please wait.

LIFE Programme Requirements

Similar presentations


Presentation on theme: "LIFE Programme Requirements"— Presentation transcript:

1 LIFE Programme Requirements
Financial issues FRESHAB IT Mikko Tiira Metsähallitus, luontopalvelut

2 Based on LIFE+ regulation
General conditions (Part A – Legal and Administrative Provisions Part B – Financial Provisions and Reporting) Financial and administrative guidelines 0/documents/2014_model_integrated_grant_agreement.pdf

3 Responsibilities of Project Beneficiaries
art.II.1.1 All beneficiaries are jointly and severally responsible for project implementation Beneficiaries should make appropriate internal arrangements to ensure project implementation (book keeping, management) Ensure that all invoices and tendering documents bear reference to the project (code and name) Not act as sub-contractor or supplier

4 The Coordinating Beneficiary
art.II.1.3 Concludes agreements with the associated beneficiaries describing their technical and financial participation in the project It is granted a ‘mandate’ to represent all beneficiaries Single Contact point for the Commission/Agency Only participant reporting/establishing payment requests directly to the Commission/Agency Ensures that payments are made to all partners (30 days after receiving payment from the Agency/Commission)

5 The Associated Beneficiaries
art.II.1.2 Provide the coordinating beneficiary with all supporting documents necessary for technical and financial reporting – information needed to write reports, financial statements, etc. (regularly) Inform the CB of any change that might affect project implementation Inform the CB of any change in its legal, financial, organisational or ownership situation

6 The Co-Financers Contribute financially to the project
Not involved in the implementation of project activities Projects involving business-sector co-financing which contributes to the sustainability of project results – favourably considered during the evaluation process Should not pay any invoices i.e. transfers euros for beneficiairies

7 The Sub-Contractors art. II.9 Provide external services to the beneficiaries and receive the corresponding full price Best value for money No financial investment in the project Public tendering for public beneficiaries (follow the process in every detail) Private beneficiaries: for purchase exceeding € : open tendering procedure Details of the work in the invoices

8 Technical Activity Reports
art. II.23 Every 2 years – instructions to come New Guidelines for all LIFE projects to become available soon on the LIFE web-site Report includes technical and financial report Comparison between realised and foreseen Cost per action Follow up of the time plan, deliverables and milestones Project plan updated both technically and financially All reporting in English Internal yearly reports by January each year (technical progress, financial sums by November)

9 Amendments to the Agreement
art. II.12 Changes of the legal status of coordinating or associated beneficiary Changes in partnership structure Changes in project duration Changes in provisional budget (transfer between or within cost categories) exceeding 20% of the overall estimated costs Significant changes to nature or content of actions and/or deliverables Remains to be seen how dealt with IP projects

10 We haven’t talked about…
Conflict of interests Confidentiality Intellectual rights, rights for results Visibility of EU support (LIFE and N2000 logos) Financial support to third parties Delayed performance Reduction in performance and technical failures Termination of the beneficiaries Suspension of the project

11 Financial Provisions

12 Payment of EU Contribution
art. I.4.1 General rule max 80% as prepayments and 20% as balance but foreseen for FRESHABIT: 1st pre-financing (on the way) = 30 % of contribution max. amount 2nd and 3rd pre-financing = max 20% each Final payment = balance maximum 30% After at least 100 % of 1st pre-financing has been used + for 2nd pre-financing Submitting the details re. auditor (Art. II.24.2) Paid upon approval by the Agency/Commission of a request for payment and the technical progress report + statement of expenditure

13 Payment of the Balance Upon the Agency/Commission approval of:
art. I 4.1 Upon the Agency/Commission approval of: The final technical report The final statement of expenditure and income (+ all categories except personnel/travel/indirect costs, copies of the 3 highest invoices and proof of payment need to be supplied) The audit report Additional financial reporting: The coordinating beneficiary shall inform the Commission by 30/11 each year about the cumulative expenditure incurred by the beneficiaries from the starting date For projects where the Union contribution is less than 300,000

14 Eligible Direct Costs (1)
art.II.19.2 Provided for in the budget of the project or have been authorized (when required) through an amendment to the grant agreement Directly linked to, and necessary for, carrying out the project Reasonable and comply with the principles of sound financial management Compliant with applicable tax and social legislation Incurred and recorded in the beneficiaries accounts during the lifetime of the project (except cost related to request for payment of balance & audit)

15 Eligible Costs (2) art.II.19.1 Indicated in the estimated budget and accepted by the Contracting Authority as necessary for project implementation Costs are identifiable and verifiable (recorded in the accounting system) They comply with the requirements of applicable tax and social legislation They are reasonable and justified

16 Eligible Costs (2) art.II.19.1 Indicated in the estimated budget and accepted by the Contracting Authority as necessary for project implementation Costs are identifiable and verifiable (recorded in the accounting system) They comply with the requirements of applicable tax and social legislation They are reasonable and justified

17 Flexibility rule Changes in provisional budget (transfer between or within cost categories) less than 20% of the overall estimated costs acceptable Check the changes with the CoB and Monitoring Team/Commission beforehand Costs inside budget category may be shifted between actions if targets not jeopardised

18 Costs of Personnel (1) art.II.19.2 Related to employees salaries (direct personal cost - no external assistance) Service contracts – under condition of working in the participant premises and under its supervision (timesheets needed) Non-additional personnel salary costs: sum of public bodies’ contributions must exceed by at least 2 % the sum of public body employees who are not considered ‘additional’ ‘Additional’ personnel includes permanent or temporary employees specifically seconded/assigned to the project or employees whose contracts start at the same time as the project Salaries – some costs such as bonuses are not eligible Service contracts – persons hired are ‘natural persons’ not hired through a company ‘Additional’ personnel – the contract can also start when the GA is signed, not necessarily when the project begins

19 2 % Rule Example of budget (sum of all public beneficiaries):
Personnel: Non-additional staff € Additional staff € External Assistance € Equipment € Total € Life contribution = 50% ( €) but Minimum own contribution from public beneficiaries = 105 € + 2 % = 107,10 € Maximum Life contribution = 92,90 €

20 Costs of Personnel (2) Supporting documents Principles
Timesheets (regularly signed by worker and superior, digital signing OK) Pay slips, annual salary documents, social charge documents *, proofed by ledger books Based on actual time devoted to the project Based on actual gross salary / wages + obligatory social charges Annex X to the Model LIFE Grant Agreement, “Financial and Administrative Guidelines”, II.1 Comparison between proposal and realised

21 Travel Costs Principles Supporting Documents
art.II.19.2 Principles Supporting Documents Travel invoices with supporting documents Journeys by car: based on distance and internal rules, logbook Charged in accordance with internal rules of the beneficiary Costs incurred by employees and volunteers (not by external consultants) Not for journeys between home and work place

22 External Assistance Costs
art.II.19.2 Principles Supporting Documents Follow applicable rules on tendering Includes short term lease of land (expires prior to project end date, for Life NAT only) Tendering documentation Detailed invoices issued by the sub-contractor, with clear reference to the LIFE project and to the purchase order or the contract Clear info and tasks provided and dates

23 Durable Goods (1) art.II.19.2 Charges relating to durable goods are eligible when the goods are : Placed on the beneficiary's inventory of durable goods Treated as capital expenditure Depriciated yearly Depreciation of durable goods already owned by beneficiaries at the start of the project is not eligible for LIFE funding Each beneficiary shall apply its internal accounting standard/rules to calculate the actual depreciation charges

24 Land purchase and lease
Durable Goods (2) Exception for LIFE NAT Infrastructure, equipment : 100% for public or non commercial beneficiaries depreciated for other beneficiaries (25% / 50%) Reference to the project in the invoices (when possible, ask for new invoices) art.II.19.2 Land purchase and lease Approved for foreseen areas in the proposal Contracts (clause), parcel data, maps, area, taxes, costs, GIS data

25 Other Budget Categories
Supporting Documents Consumables and supplies General office supplies are covered by overheads Detailed invoices (explicitly needed for the project) Other Costs Costs necessary for the project, not falling within a defined category Detailed invoices Overheads – indirect costs Max 7 % of the total amount of eligible direct costs per beneficiary, excluding land purchase costs Invoices not needed

26 Ineligible Costs (1) art. II 19.4 Costs in any category of expenditure over and above that foreseen in the budget (budget transfers accepted in line with art II.22) Recoverable VAT and VAT of public authorities (unless public authorities provide an official certificate stating that VAT cannot be recovered for costs related to the project, only relevant for non-authority measures) Costs incurred in relation to activities not foreseen in the project Costs incurred for the purchase of durable goods or communication material not bearing the LIFE logo (and the Natura 2000 logo, when applicable)

27 Ineligible Costs (2) art. II 19.4 Costs incurred for an action which benefits from aid under other Union financial instruments Costs for which a beneficiary already receives an operating grant from the Union during the period in question Costs related to any action considered as a compensatory measure Costs related to management plans, action plans and similar plans, drafted or modified in the context of a LIFE project, if the related plan is not legally operational before the project end date Exchange losses Inkind contribution…. and many more….

28 A Few Reminders Must contribute financially to the project’s costs
Must comply with applicable tender rules Shall maintain up to date books of accounts Shall keep all supporting documentation for all expenditure and income for at least 5 years after the final payment Ensure that all invoices include a clear reference to the project in all categories and a link to the analytical accounting system Keep CoB updated May not act as sub-contractor/supplier to each other (no invoicing among partners !!) Read and re-Read the General Conditions

29 Kiitos ja sitten kysymyksiä. http://ec. europa


Download ppt "LIFE Programme Requirements"

Similar presentations


Ads by Google