1. Financial Management and Auditing Monitoring by the JTS 3 rd round operations Rostock, 03.02.2005 Elise Oukka

2. MONITORING BY THE JTS Regular Progress reports – main tool! SIX-MONTHLY reporting periods  Jan-June  deadline 1st September  July-Dec  deadline 1st March paper and electronic version (signatures & stamps!!) checking procedure starts after receiving both versions: activities – Project manager finances – Financial manager  JOINT comments & questions to the LP

3. LP obliged to inform the JTS about changes, potential problems immediately (§5 Subsidy Contract) Prior contact with the JTS for changes (activities, outputs, partnership,finances)  approval/non-approval e.g. new cost items needed for the external expertise (also when under deviation possibility) RFO‘s: attending the SC meetings (Invitations & minutes to the JTS!) Monitoring by the JTS

4. Major changes to be approved by the JTS beforehand Changes can be related to: Activities / Outputs Budget / Finances Partnership Fill in standard form „Request for changes in the operation“ Be precise in your request (old vs. new data) Justification! Procedure: 1. Informal cross-check with JTS (by email) 2. Official submission of signed request form 3. Decision by JTS or written procedure with MSC Requests for changes

5. MONITORING BY THE JTS Progress reports – Financial monitoring General progress of the operation – total expenditure Reported expenditure - in line with the plan (approved application)? - in line with the activities reported? Expenditure per component Expenditure per partner

6. MONITORING BY THE JTS Progress reports – Financial monitoring Budget injuries – in total, in components, in budget lines? Auditor‘s confirmation Significant over/underspending? - total level - component level - justification! - causing risks for the future implementation? Cost-efficiency

7. MONITORING BY THE JTS Underspending „Payments not requested in time and in full may be lost“ (§3 Subsidy Contract) Following the six-monthly payment flow - if failing, an operation may loose funding All the programme funds have been committed - decommitment will be taken from the failed operations!

8. FLEXIBILITY DEVIATION - MAX EUR 20,000, or if more, up to 10% From the original amount given in the approved application Between budget lines, components or project partners from the same objective area Without prior notification of the JTS On the total operation’s budget – not for each partner  separately  to serve the best interest of the operation!

9. REALLOCATION - Up to 20% FLEXIBILITY Between budget lines, components or project partners from the same objective area ONLY once during the operation lifetime The prior approval of the JTS required From the original total budget given in the approved application

10. Monitoring by the JTS Payments - General No advance payments will be made to the operations Payment requests must be based on reported expenditure and will be calculated automatically Only the operation costs which are paid out within the current reporting period are considered eligible for co-financing

11. Payments - Procedure After the Progress Report is accepted, the payment will be made in one sum directly to the bank account of the LP The money will be transferred in EURO. Any exchange risk is to be borne by the LP. If the LP account is not an EURO account, the corresponding exchange will be done by your local bank. Monitoring by the JTS

12. Payments - Procedure The transfer of money will last 1-2 weeks. The LP will be informed via email (Payment notification letter) about the executed payment. The LP is responsible for distributing the funding among the partners & The LP is also responsible for ensuring that the maximum ERDF co-financing rates are observed per partner. Monitoring by the JTS

13. INTERREG IIIC NORTH Partner Lead Partner Payment flow As soon as the the JTS has approved the report the Paying Authority (PA) will effect payments to the Lead Partner The Lead Partner effects payments to partnersRFO‘s: 1.LP  regional partners & lead participants  project participants 2. LP  regional partners  lead participants & project participants of his region

14. THANK YOU FOR YOUR ATTENTION!