1. BUDGETING Training Unit 13.2 Principles and financial rules of mobility

2. Budgeting Admissibility of costs: Only those ones that are admissible: according to the principle of value for money; according to the context in which the expenditure is made; according to its nature and its amount are eligible (and therefore reimbursable).

3. Budgeting Distinction between determining the subsidy requested and the construction of the budget. The total budget of the project represents the overall cost of the intervention, based on actual estimated cost. The Community subsidy is calculated on the basis of tariffs set by the EU Commission and the National Agencies and published together along with the announcement. The NA advise not to construct the budget starting from tariffs, but to carry out a scrupulous analysis of the expenses that will actually be incurred by the partnership network.

4. Budgeting The tariffs do serve as a benchmark, in as much as in no case can a larger amount be requested. The tariffs reported for subsistence expenses differ in duration of the mobility and the country of destination and are calculated based on the average cost of living. The tariffs for organisational expenses and those for participants training are calculated according to the length of the stay abroad. The travel expenses do not have limits, but are included in the tariffs for subsistence or better stated with actual costs depending on the duration of mobility.

5. Budgeting When the entire budget for the project is determined, the questionnaire asks that the size of the amount of the Community grant is specified. Even though the questionnaire asks for details on the calculation of the overall budget to be supplied, information is not asked for on the percentage of own funds that the partnership and the beneficiary will put into co-funding. As there is no fixed percentage for the Community subsidy we must remember that the grant is co-funding and cannot cover the entire budget; furthermore, all other public financing (not originating from the European Community) proportionally decrease the European rate.

6. Budgeting What happens after approval of the project After approval of the project and publication of the lists, the National Agency and the subject leader stipulate the grant agreement; (a contract that also contains information useful to the financial management of the intervention). As a matter of fact, the agreement specifies the timings for the disbursement of the Community contribution, which is essential to plan the payments to partners and suppliers.

7. Budgeting The eligibility period of expenses coincides with the planning length that starts with the signing of the agreement and finishes with the end of the project. Only expenses incurred in this period of time can be reimbursed. The agreement also specifies the contribution agreed, subdividing it into different items of expenditure. The subject leader can decide whether to give the subsistence and travel funds directly to the participants or to the partners in loco.

8. Budgeting The grant is paid out by the National Agency in two phases: the first occurs within 45 days of the date of signing the agreement and is equal to 80% of the Community subsidy. The second payment is made within 45 days after approval of the final report and represents the balance of the remaining 20%. Both the payments are made against submission of accounting documents by the subject leader.

9. Budgeting If the beneficiary is a private organisation, a financial guarantor policy must be effected as surety for the funding (limited to the first trance of the payment). The costs for the policy can be reported in the management and monitoring costs. The agreement also contains information on the current bank account to use to credit the contribution. The account opening and running expenses are not accountable.

10. Budgeting The exact amount of the subsidy is determined at the end of the intervention. The National Agency, on the basis of the final report: is in a position to determine whether there were significant variances compared to what was estimated and how many people have actually been sent in mobility

11. Budgeting The final contribution is calculated as follows: the amount for preparation expenses is determined by multiplying the number of actual participants by the maximum expected tariff; the contribution for the management and monitoring expenses is calculated by multiplying the number of actual participants by the maximum expected tariff; subsistence expenses are calculated by multiplying the number of actual participants by the tariff indicated by the beneficiary according to the duration of the mobility and the host country; travel expenses (if not included in those of subsistence) are determined on the basis of the expenses actually incurred.

12. Budgeting As proof of how much is declared in the final report, the beneficiary organisation must attach: documentation relating to mobility, such as documentary evidence of the host organisation; copies of travel documents; boarding cards and copies of invoices for accommodation expenses.

13. Budgeting During the period of implementation of the project and for the following five years the (EU) Commission, the European Anti-Fraud Office (OLAF), The European Audit Office and the National Agencies can carry out administrative–financial inspections and audits for: analysis of the final reports; documentation analysis of the supporting material of the final report and spot checks.

14. Budgeting The beneficiary: must keep the originals of support documentation for at least five years; must put in place accounting procedures that allow the declared expenses and those charged to the project to be directly referable to the accounting documents and financial evidence, available at the beneficiarys own offices.

15. Budgeting Content: Construction of the budget in the application stage. The distinction between the subsidy requested and the total budget. Connection between the duration of mobility and the construction of some items of expenditure. What happens after approval of the project. Timing of disbursement of funds. Documents to be retained and attached to the final report.