1. “Eligibility of Expenditures” Info-day 4th Call for Project Proposals
INTERREG IPA II CBC “GREECE-ALBANIA ” VLORE 20/11/2018 KORCE 22/11/2018
“Eligibility of Expenditures”
Info-day
4th Call for Project Proposals

2. Legal Framework
Expenditures incurred by the Beneficiaries in frame of their project implementation have to be in line with the EU regulations, the relevant program and National rules and legislation, mainly as follows:
Regulation (EU) No.231/2014 establishing an Instrument for Pre-Accession Assistance (IPA II)
Commission Implementing Regulation (EU) No.447/2014 (implementing Regulation (EU) No.231/2014)
Article 23(4) of Regulation (EU) No 1299/2013 and article 125 of Regulation (EU) no 1303/2013
Commission Delegated Regulation (EU) No 1268/2012 of 25 October 2012 on the rules of application of Regulation (EU, Euratom) No 966/2012 on the financial rules applicable to the general budget of the Union;
Operational Programme and Programme & Project Manual document
Common Guidance on Management Verifications

3. The eligible cross-border area
GREECE
The Regional Units of Grevena, Kastoria, Florina, Arta, Thesprotia, Ioannina, Preveza, Zakynthos, Kerkyra, Kefallinia and Lefkada
ALBANIA
The Region of Vlorë, the Region of Gjirokastër, the Region of Korçë and the Region of Berat

4. Head of the First Level Control Office First Level Controller
FLCO
The Albanian FLC office In frame of the Interreg IPA II CBC Greece-Albania Program is composed by the Head and the First Level Controllers. It is a centralized FLC system coordinated by the Ministry for Europe and Foreign Affairs.
Head of the First Level Control Office
First Level Controller

5. The Verification Process
The process of verification carried out by the controllers includes:
100% Administrative verifications (desk-based check)
Desk-based checks / administrative verification Carried out at the FLC Office, once the documentation has been submitted by the Albanian beneficiaries for the expenditure verification
Management verifications of 100% of the applications for reimbursement
On the spot verifications on a sample basis but at least once during the lifetime of a project
On-the-spot checks - control checks undertaken by First Level Controllers on the premises of a Beneficiary or any other project-related site
At least one on-the-spot check to be carried out for each partner during the lifetime of the project

6. Budget Categories Staff Costs Office and Administration Costs
Travel and Accommodation
External Expertise and Services
Equipment
Infrastructure and Works

7. Staff Costs
In the “Staff Costs” budget category, the cost of the salaries added should reflect to the gross salary including the social security charges and other related costs. Next to the description of the staff category, there should be the percentage (%) of the working time that the staff of each category will charge to the project, as well as the number of employees.
full time;
part-time with a fixed percentage of time worked per month;
part-time with a flexible number of hours worked per month; or
on an hourly basis.
Staff costs for each Beneficiary cannot exceed 50% of the total Beneficiary’s Budget.

8. Staff Costs (supporting documents)
Real costs
Under the 4th call for project proposals, only the real cost option for calculation of staff cost is available
Beneficiary’s administration specifying the working team.
Documented selection procedure.
Staff recruitment process.
Monthly timesheets/reports.
Proof of Payment.
Payrolls/Payslips or proof of payment.
Relevant supporting documentations.

9. Office and Administration Costs
According to regulation 481/2014, the cost categories covered by this budget category include the following:
Office rent
Insurance/taxes related to the buildings where the staff is located and to the equipment of the office
Utilities, office supplies
General accounting provided inside the beneficiary organisation
Archives,
Maintenance, cleaning and repairs
Security, IT systems, communication
Bank charges for opening and administering the account or accounts where the implementation of an operation requires a separate account to be opened

10. Office and Administration (supporting documents)
There are two available options for calculation the Office and Administration costs category.
1. Real costs,
2. Flat rate of (up to) 15% of staff costs.
Invoices
Receipts
Documents of payment
Methodology used

11. Travel and Accommodation
This budget category concerns the costs on travel and accommodation incurred by the staff of the beneficiary, according to the rules and restrictions as stated in the Programme and Project Manual and related documents. The travel and accommodation of external experts or guests should be listed in the “External Expertise and Services” budget category. According to regulation 481/2014 expenditure on travel and accommodation costs shall be limited to the following elements:
travel costs (e.g. tickets, travel and car insurance, fuel, car mileage, toll, and parking fees);
the costs of meals;
accommodation costs;
visa costs;
daily allowances.
The “Accommodation” and “Daily subsistence allowance” are divided for Greece and Albania, because they reflect different rates per country (in accommodation) and per location (in daily allowance); it is different for travels within one country and outside the country respectively. In addition, travels outside the eligible area should be clearly stated and respective restrictions should be applied.

12. Travel and Accommodation (supporting documents)
The invitation/agenda/minutes/reports/photos of the meetings;
Travel authorisation/Reports according to the institution;
Per Diems/Daily Allowance;
Tickets/Invoices of tickets (Hotel, Transport, Boarding Pass)
The subsistence allowances (only for staff)

13. External Expertise and Services
According to Regulation (EU) No 481/2014 the budget category “External Expertise and Services” includes the following cost categories:
Studies or surveys/trainings/translations
IT systems and website development, modifications and updates;
Promotion, communication, publicity or information linked to a project or to a cooperation programme as such;
Financial management;
Services related to the organisation and implementation of events or meetings
Participation in events (e.g. registration fees)

14. External Expertise and Services (supporting documents)
Evidence of the selection process
Contract
Invoice
Proof of payment
Deliverable
Photographs in case of workshop etc...

15. Equipment Office equipment; IT hardware and software;
This budget category concerns the costs for the equipment required by the beneficiaries for the sound implementation of the project. The purchase or rental of equipment should follow the rules and restrictions set by the Programme and Project Manual and respective documents.
According to Regulation (EU) No 481/2014 the budget category “Equipment” includes the following cost categories:
Office equipment;
IT hardware and software;
Furniture and fittings;
Laboratory equipment;
Machines and instruments,
Tools or devices;
Vehicles;
Other specific equipment needed for operations.

16. Equipment (supporting documents)
The contracts and documents of the award procedure are in place (call, tenders, evaluation, decision etc.);
The certificate of product approval;
The product Registration in the accounting system;
The invoices with Serial Number of equipment;
Proof of payment,
The licenses to set and operate the equipment, where required.
Technical specification and Budget Cost.
Calculation of the depreciation of the Equipment according to the national accounting rules;

17. Infrastructure and Works
This budget category concerns the costs for the infrastructure and relevant works that will take place in the framework of the project. The level of infrastructure and the type of activities/ works should follow the rules and restrictions set by the Programme and Project Manual and respective documents.
The budget category “Infrastructure and Works” includes the following cost categories:
Elaboration of detailed works design
Works
Supervision of works
Other

18. Infrastructure and Works (supporting documents)
The contracts and award procedure documents (call, tenders, evaluation, decision etc.);
The certificate of acceptance;
The invoices, contractor’s accounts, summary tables of works;
Proof of payment;
The required by the national legislation on environment licenses, is respected (where required);
Bill of quantities and Cost,
In case of public projects implemented in house, diary of works.

19. Use of the Euro Taking into account the following regulations:
Regulation (EU) No 1299/2013, Article 28; 
Regulation (EU) No 1303/2013, Article 133 
Any expenditure incurred in a currency other than euro, shall be converted into euro, using the monthly accounting exchange rate of the Commission in the month during which that expenditure was incurred. The method chosen shall be applicable to all beneficiaries. The conversion shall be verified by the controller in Albania where the beneficiary is located. 

20. Procurement “PRAG”
Beneficiaries are suggested to apply the official standard templates from PRAG(v.August 2018) published by the EU commission, in order to facilitate the relevant procedures.
The IPA II Beneficiaries shall follow the provisions of 966/2012 (EU, Euratom) and No 1268/2012 of EU regulations concerning procurement procedures

21. Rule of origin and nationality
Supplies and equipment purchased under a contract financed under this Programme must originate in the Community or in one of the countries eligible for external aid. When supplying with goods, the tenderers must state the origin of the suppliers in their tenders.
The certificates of origin must be submitted at the latest during implementation of the contract when the certificate of provisional acceptance is requested.

22. Eligibility of Expenditures
Co-financing
The Albanian beneficiaries shall provide the 15% of national co- financing from their own funds
Value on Added Tax
Recoverable VAT is non eligible Cost according to EC. Contractors of IPA –funded projects shall be refunded by the Tax Authority for VAT paid on goods or services supplied under such projects.

23. Corresponding to the Original
Double financing
Double financing/declaration of costs Pursuant to article 9(2) of the Regulation (EC) No 718/2007 of 12 June 2007 and with Article 13(2) of the Commission Regulation (EC) No 1828/2006 of 8 December 2006, verifications shall include procedures to ensure that no expenditure shall be financed under more than one operation and thus to avoid double-financing of expenditure with other Community funds and with other reporting periods.
Therefore it has been required that each original invoice and accounting documents of probative value is voided by means of a stamp (or writing by pen even if the use of a stamp is strongly suggested).
Expenditure incurred under Interreg IPA GREECE-ALBANIA CBC Programme, Project “<Acronym> - Code <Code>", for a sum of ALL …., equal to € ….., date……...
Corresponding to the Original

24. FLC Office Tirana Albania
Address:
Rr. Lidhja e Prizrenit, Pallatet Kamberi, kati 4 ap. 10
Thank You For Your Attention