3. INTERREG IIIB CADSES NEIGHBOURHOOD PROGRAMME Transnational Training Seminar for potential Lead Partners and Partners, 3rd call November 9th-10th 2004, Brno

4. Financial Management: Obligations of a LP 1. Project budget 2. Legal basics 3. Financial flows and reporting obligations 4. Eligibility of costs 5. Financial control 6. Checklist

5. Project budget – keywords, average project sizes

6. KEYWORDS: realistic / appropriate correct figures feasible expressed in Euro

7. Project sizes (experiences from 2 calls) (all figures refer to projects´ ERDF budget share)  average budgets: 1,2 million Euro  budget range: 160.000 - 2,8 million Euro Project sizes:  budget < 500.000 Euro: 4 projects  budget between 500.000 - 1 million Euro: 29 projects  budget between 1 - 2 million Euro: 31 projects  budget > 2 million Euro: 9 projects

8. Project sizes (1st call projects)

9. Project sizes (2nd call projects)

10. Legal basics – Subsidy Contract and Joint Convention

11. Contractual arrangements European Commission Regulations Managing Authority/Paying Authority JTS

12. 1260/1999: General Provisions 448/2004: Eligibility 1159/2000: Information and Publicity 438/2001: Management and Control Systems 448/2001: Financial Corrections Regulations

13. Contractual arrangements JTS European Commission Managing Authority/Paying Authority Regulations Agreement Partner State Lead Partner Joint Convention Project Partner

14. Duties and Obligations of Lead Partner and Project Partners Responsibilities of Lead Partner and Project Partners Duration of the agreement Activity reports and progress reports Budgetary and financial management Accounting principles Verification and keeping the documents Joint Convention

15. Contractual arrangements JTS European Commission Managing Authority/Paying Authority Regulations Agreement Partner State Lead Partner Joint Convention Project Partner Subsidy Contract

16. Subsidy, object of use Request for Payments Eligible costs Representation of project partners, liability Obligations of Lead Partner MA‘s right of withdrawal Audit rights Publicity Subsidy Contract

17. Contractual arrangements JTS European Commission Managing Authority/Paying Authority Regulations Agreement Partner State Lead Partner Joint Convention Project Partner Subsidy Contract Subcontractor Subcontract

18. Financial flows and reporting obligations

19. Financial flows and reporting obligations Project Partner 1.: LP and PP report expenditure 1st level control 2.: certifies expenditure Lead Partner 3.: PPs submit Activity and Financial Report Joint Technical Secretariat 4.: LP submits aggregated Activity and Financial Report Managing Authority/Paying Authority 5.: JTS verifies the plausibility of the reported activities and expenditure 6.: MA checks and approves the Progress Report 7.: PA releases ERDF funds

20. Eligibility of costs – period, expenditure categories

21. Starting date of eligibility: date indicated in the AF and the Subsidy contract Preparatory costs Expenditure categories: co-ordination costs, personnel costs, overheads, meetings/conferences/seminars, travel and accomodation, promotion and publicity costs, external expertise, others, small scale investments

22. Financial control – 1st level control

23. Any expenditure related to a project will be certified by a responsible national authority or private institution authorised to do so. (=first level control) The certification of expenditure / the first level control shall confirm – the delivery of the products and services co-financed, – the reality and eligibility of expenditure claimed and – that national and community rules, especially Commission Regulation (EC) 448/2004, have been respected. First level control

24. Which documents have to be submitted? Receipted invoices accounting documents of equivalent probative value What has to be checked ? 100% of the project costs indicated for the resp. Project Partner independent from the co-funding rate What kind of expenditure is eligible? Regulated by Commission Regulation (EC) No 448/2004 Implementation of First level control

25. Checklist

26. Non-eligible costs: private expenditures maintenance/repair cost running operational cost discounts, reductions double-invoiced cost bank charges and others Problematic costs: missing project link in subject and time matters movable goods not clearly attributable to the project etc. Checklist of First level control

27. THANK YOU FOR YOUR ATTENTION!

28. INTERREG IIIB - National Contact Point at the Austrian Conference on Spatial Planning Contact: Andrea Cerovska / Doris Wiederwald Hohenstaufengasse 3 A-1010 Vienna Phone: +43 (1) 535 34 44-22 Fax No.: +43 (1) 535 34 44-54 e-mail:cerovska@oerok.gv.at wiederwald@oerok.gv.at Internet:www.oerok.gv.at www.cadses.at