1. Vilte Gridasova, Alina Ivanovaite Project Meeting 3 Cyprus 20-21 Sep 2007 FINANCIAL AND ADMINISTRATIVE REQUIREMENTS FOR THE INTERIM REPORT

2. COMMUNICATION NATIONAL AGENCY CONTRACTOR PARTNERS CONTRACT WITH NA PARTNER CONTRACTS

3. CONTRACT WITH NA  Principal document  Defines responsibility and obligations of the NA and contractor  Defines the rules for the implementation of the project (Administrative and Financial Handbook 2004/02)

4. PARTNER CONTRACTS  Must correspond with the project contract  Define the responsibility and obligations of contractor and partners (activities, deadlines, financial obligations, etc.)

5. PARTNER OBLIGATIONS  Comply with the contractual obligations  Undertake the activities contractually agreed  Provide information about project activities  Submit the reports to the contractor  Respect the instructions concerning information and visibility of the LdV programme  Ensure the valorisation (dissemination and exploitation of project results) of the project

6. FINANCING TERMS  75 per cent subsidy +25 per cent own contribution  Payments to the Contractor:  1 st payment: 40 %  2 nd payment: 30 %  Final payment depends on the results of the evaluation of the final products and eligible costs

7. FINANCING TERMS  Payments to the Partner: 1st payment: 20 % 2 nd payment: 20 % 3 rd payment: 15 % 4 th payment: 15 % Final payment depends on the results of the evaluation of the final products and eligible costs.

8. FINANCING TERMS  All payments can be transferred only after having received the formal request from the partner to transfer the corresponding sum  The request indicates: the sum (the sums are specified in the agreement with each partner) bank details

9. VALUE ADDED TAX  VAT can not be charged to the project  If a partner is not a VAT payer, and VAT is not deductible and can not be recovered, a proving document stating that the partner cannot recover VAT has to be presented to the contractor.

10. CURRENCY RATES In the report:  All the costs are declared in euros  If the euro rate is not fixed, all the rate declared must be the same as the euro rate on the previous payment date.  If the national currency is bound to the euro: the official document stating the exchange rate of the national currency and the euro.  If the national currency is not bound to the euro: the official document stating the exchange rate of the national currency and the euro on the corresponding payment day.

11. FINANCIAL ASPECTS  Fixed maximum amount of Leonardo grant (75%)  Only 70% of grant is paid in advance  All the expenses must be occurred during project lifetime

12. JUSTIFIABLE COSTS  Directly related to the project activities  Incurred only by project organisations  Incurred only during the project period  Related only to the countries participating in LdV programme – e.g. buying literature printed in the USA can hardly be justified unless you can prove it.  Factual, i.e. supported by documents

13. INADMISSIBLE COSTS  Any profit made by the project activities (incl. interest)  VAT  Too high and not justified  Not supported by documents

14. PROJECT BUDGET A. Staff costs (no changes, co-financing) B. Operation costs:  Travel costs  ICT (max 15%)  Production (within partner organization- Florida)  Overheads (no EC contribution)  Other costs (max 7%) C. Subcontracting costs (max 30%)

15. STAFF COSTS (1)  is a salary paid to people employed by Partner organization  calculation: actual daily rate of a certain project team member x the number of days worked in the project.  include  include all the usual contributions paid by the employer (social fees, holiday payments, etc.)  exclude any bonuses, incentive payments or profit-sharing schemes  The total sum allocated to cannot be altered.  The total sum allocated to staff costs cannot be altered.

16. STAFF COSTS (2) Table G.3. Supporting documents:  Institutional order stating that the certain individual is employed in the project.  Agreement (contract) employing the individual. Author’s agreements (as in Lithuania) can be exceptionally applied Employing a person from a third party is subcontracting, not staff costs!

17. STAFF COSTS (3) Supporting documents to be sent to the Contractor:  Institutional order naming the persons involved in the project  Declarations on daily rates  Timesheets (the form will be forwarded)  Bank statements, other evidence of payment

18. TRAVEL COSTS cover all costs of travel from the point of origin to the point of destination Supporting documents: tickets, receipts, boarding passes, insurance policies, etc. Copies of all these to be sent to the Contractor. The explanatory information (in English ) of each document has to be in the covering letter (the template will be forwarded)

19. SUBSISTENCE COSTS accommodation, meal and local travel costs  include accommodation, meal and local travel costs maximum daily subsistence rates for the country  cannot exceed the maximum daily subsistence rates for the country being visited (Administrative and financial handbook)

20. SUBSISTENCE COSTS (2) Supporting documents to be sent to the Contractor: (depending on the procedures applied in partner organisation: actual costs or daily allowance rates):  actual costs (copies of all relevant receipts): accommodation bill local transport receipts meals  daily allowance basis – official document stating the official allowance in the partner country. The description of the receipts (in English, again) to be included in the cover letter.

21. OVERHEADS  Daily communications (fax, telephone, mail, etc.)  Photocopying  Office materials  Bank costs relating to the transfer of funds to the partner No Community contribution under this heading. No budgetary changes for overheads are allowed. No supporting documents will have to be provided. However, overheads are to be included into the costs accounting!

22. OVERHEADS Inadmissible costs:  Office appliances  Furniture  Premise utilities (electricity, water etc.)

23. OTHER COSTS Table G.7.  Press releases and advertisements  Information materials (books, studies)  Conference fees  Hire of rooms  Travel and subsistence costs of representatives of target groups involved (in workshops, seminars etc.)  Catering costs for representatives of target groups (but not members of Contractor and Partner organisations) Supporting documents (copies to be sent to the Contractor): Invoices, evidence of payment

24. SUBCONTRACTING COSTS (1) external These are costs are paid to an external organisationspecific task organisation carrying out a specific task related to the project (e.g. translation, expert consultancy, design and printing, conference/ seminar organisation, etc.)

25. Table G.8.  If more then 10 000 € - must be put out to tender!  It is not permissible to subcontract all of the project activities  Subcontracts must include all costs i.e. staff costs and all additional costs (e.g. travel and subsistence costs) relating to subcontracting organisation)  All subcontracting costs need to be evidenced (agreements, invoices, account statements, etc.) SUBCONTRACTING COSTS (2)

26. SUBCONTRACTING COSTS (3)  Subcontracting documents: Subcontracting agreements Subcontracting agreements  Subcontracting documents to be sent to the contractor: Document stating that the task has been performed by the subcontractor and has been accepted by the partner organisation Document stating that the task has been performed by the subcontractor and has been accepted by the partner organisation Invoice Invoice Bank statement to evidence that the payment has occurred. Bank statement to evidence that the payment has occurred.

27. REQUIREMENTS FOR FINANCIAL DOCUMENTS  The description of the supporting documents necessary for the report must be included in the covering letter  In the covering letter the document entries have to be sorted out by the date and budget line (staff, travel)  The number of each document has to be indicated  The originals have to be kept by the organisation that has covered the costs  The documents are to be filed and stored for 5 years after the end of the project

28. ACTIVITY REPORT  Period 1 st Oct 2006- 30 th Sep 2007  All the activities carried out by the Partner organization have to be included into the activity report form (the template will be forwarded)  Dissemination activities – fill out the form (the template will be forwarded)

29. INTERIM REPORT  Deadline 31 st Oct 2007

30. QUESTIONS  Questions concerning the report: Mail to Ms Vilte Gridasova vilte@kolegija.lt  Questions concerning financial aspects: Mail to Ms Asta Zalimiene buhalterija@kolegija.ltbuhalterija@kolegija.lt and azta@takas.lt