1. Northern Periphery Programme 2007-2013 How to Close a Preparatory Project Christopher Parker 20th March 2014 North Atlantic House, Copenhagen, Denmark

2. How to Close a Preparatory Project  Final Preparatory Report  General Overview (sections 1 -6)  Contents of the Project (sections 7-8)  Financing (section 9)  Administration (sections 10-12)  http://www.northernperiphery.eu/en/documents/Downloads/Preparatoryprojects http://www.northernperiphery.eu/en/documents/Downloads/Preparatoryprojects  Preparatory Project Claim  Formal declaration of expenditure by the Lead Partner  Payments to projects will be paid out retrospectively against actual expenditure incurred  Compiling a Preparatory Project Claim  All partners compile a Statement of Expenditure

3. How to Close a Preparatory Project  First level control by First Level Controllers  A check is made to see if the expenditure is in line with the NPP 2007-2013 Common Eligibility Rules  Project partners send materials to the Lead Partner  Project partner sends the signed Certificate of Expenditure and the signed first level control checklist to the Lead Partner.  The Lead Partner compiles and submits the Preparatory Project Claim  Lead Partner compiles the Preparatory Project Claim.  Summary of Certificates of Expenditure and partner’s Certificate of Expenditure  How to submit a Preparatory Final Report  Lead Partner submits a complete and signed Preparatory Final Report with all supporting evidence to the Programme Secretariat

4. How to Close a Preparatory Project

5.  Assessment of the Final Report and Payment  Programme Secretariat assesses the Final Activity Report  Managing Authority assesses the Final Report  Managing Authority issues a Decision of Payment  Certifying Authority carries out final payment check  Certifying Authority makes the payment to the Lead Partner  Receipt of Grant  Receipt of grant by the Lead Partner  Lead Partner distributes the co-financing to the project partners  Individual share of partnership grant

6. How to Close a Preparatory Project

7. Financial Reporting Procedure Stefan Nyström How to Close a preparatory project 20th March 2014

8. Claiming procedure, financial report

9. Document retention NOTE: In case of an audit, all project partners must preserve copies of ALL supporting documents until three years have passed after Programme closure. We recommend that supporting documentation is preserved at least until year 2020. Lead Partner and Partners must also consider national legislation regarding preservation of accounting material.

11.  National Controllers have one main task, to ensure that a reliable and functional national control system is in place in its nation  National Controllers are responsible for OLAF reporting, in case of any irregularities  National Controllers designate First Level Controllers (FLC’s) to perform the check  Only costs certified by the FLC’s can be eligible for ERDF or ERDF equivalent funding  Different systems in different countries  Current list of National Controllers and First Level Controllers are available on our website and annexed to our Programme Manual Explanation of National Controllers 1 (3)

12. Example; National Controller Finland “Decentralised system”: Finnish Ministry of the Interior Department for Development of Regions and Public Administration Regional Development Unit P.O.Box 26, FI-00023 Government (From 1.1.2008: Ministry of Employment and Economy, details to be specified) Explanation of National Controllers 2 (3) Finnish system Note that the Ministry of Employment will not carry out the control. It will only be the responsible authority.

13. Example; National Controller Sweden “Centralised system”: County Administrative Board of Västerbotten Industry and Commerce Department 901 86 Umeå vasterbotten@lansstyrelsen.se Mr Curt Hörnqvist Head of Department curt.hornqvist@lansstyrelsen.se Explanation of National Controllers 3 (3) Swedish system Note that listed person is the person responsible for the unit of Industry and Commerce at CAV. A desk officer / FLC responsible for the task of certififying expenditure will be appointed Currently no fee will be charged for Swedish partners to get their expenditure certified.

14. National Controllers will most likely require the following documents in order to complete a first level of control: Statement of Expenditure (signed by authorized person) Ledger for the current reporting period (every partner should keep separate project accounts) Time sheets (for part time employees) Copies of all invoices and receipts Employment contracts (for full time employees) Model to show the office costs distributed proportional + supporting documentation (when applicable) Transaction list Partner activity report Other relevant documentation Supporting Documents to National Controllers Note: It is up to each programme partner country to establish what documentation they will require. This is only an indicative list of required documentation for the first level control provided by the NPP 2007- 2013

15. Statement of Expenditure by Partners to National Controller 1 (5) Statement of Expenditure From:dd.mm.yyyyTo:dd.mm.yyyy Note: The dates should be stated by [day.month.year], e.g. "30.09.2008" Project Title: Reference number: Partner claim no.: Contact information Partner organisation (original language): Partner organisation (english translation): Address: Person responsible: Postal code: E-mail: Location: Phone: Country: Mobile: Legal status: Phone: Contact person: Fax: E-mail: Phone: Website: Mobile: VAT-status VAT recoverable VAT non recoverable

16. Statement of Expenditure by Partners to National Controller 2 (5)

17. Statement of Expenditure by Partners to National Controller 3 (5) Project Title:0 Project partner:0 Partner country:0 Reference no:0 MS Partner from 20% area: NMS Partner from 20% area: NMS Partner from 10% area: Note: If 10% partner, please fill in information of responsible Lead Partner below Lead Partner responsible: Country: Partner no: Other partner:

18. Statement of Expenditure by Partners to National Controller 4 (5)

19. Statement of Expenditure by Partners to National Controller 5 (5) PUBLIC MATCH FUNDING RECEIVED (all amounts in euro) Public match funding, In kind (source, type) Budgeted match funding Certified funding, earlier reporting periods Claimed received funding, current period Actual funding, accumulated 0,00 Totally received In kind contribution 0,00 Public match funding, cash (source) Budgeted match funding Certified funding, earlier reporting periods Claimed received funding, current period Actual funding, accumulated 0,00 Totally received public cash contribution 0,00 Total public financial contribution0,00 #DIV/0!

20. Supporting document to Statement of expenditure Currency conversion sheet All project partners have to state their expenditure in Euro, only programme partner countries using Euro are Finland and Ireland. All other partners except for Finnish and Irish partners have to convert their currency into Euros. This is made by applying the Currency conversion sheet, and its principles: Currency conversion sheet (for non Euro partners) The currency used in the Northern Periphery Programme 2007-2013 is Euro (EUR). Consequently all non Euro partners must convert their expenses from national currency into Euro. All costs should be converted using the monthly Commission rate for the last month in the current reporting period. The Commission exchange rates is found on the official website: http://ec.europa.eu/budget/inforeuro/index.cfm?fuseaction=countries&Language=en

21. Currency Conversion Sheet 1 (2)

22. Currency Conversion Sheet 2 (2)

23. Supporting documents from National Controllers National/First Level Controllers will send two main document to the project partner: Certificate of Expenditure Checklist of First Level Control

24. Certificate of Expenditure 1 (4)

25. Certificate of Expenditure 2 (4)

26. Certificate of Expenditure 3 (4)

27. Certificate of Expenditure 4 (4)

28. All partners have to submit the following documents to the Lead Partner: Certificate of Expenditure (blue ink version) Additional documents which may be part of the Partnership Agreement: Partner Activity Report (as part of the aggregated final report) FLC checklist Transaction list of all expenditures Other documents agreed within the project partnership Documents from Partner to Lead Partner

29. Lead Partner Principle Role Lead Partner: Be the policeman of the project, ensure that all certified costs can be connected to eligible/approved project activities (Letter distributed) Northern Periphery Programme recommends that all partner Certificates of Expenditures (CoEs) to the LP are supported by a partner activity report, clearly outlining the individual partner activities, and a transaction list to demonstrate which costs are related to what activities. AND It is vital that the Lead Partner can extract the individual partner activities from the overall Work Package activity plan, potentially outline individual partner activities in the partnership agreement.

30. Lead Partner Principle Role Lead Partner: Note The NPP does not require the first level controller of the Lead Partner to check the complete claim. However, according to EC guidelines this is within the scope of the Lead Partner’s FLC.

31. Lead Partner Principle Role Lead Partner: Acting as link between the project partners and the programme Submitting the project progress report Overall responsibility for project coordination Formal beneficiary of ERDF and ERDF equivalent funding Lead Partner has the responsibility to distribute the funding received from the NPP 2007-2013 among the project partnership in accordance with the spending by the partners. The complete Lead Partner responsibilities are stipulated in Regulation: (EC) 1080/2006, Art 20

32. In order to make a complete progress report the Lead Partner has to submitt the following documents to the Secretariat: Final preparatory project report Project claim Summary of Certificates of Expenditure Certificate of Expenditure (blue ink version) from all partners FLC checklists from all partners Note that the Activity Report and the Summery of COE have to be submitted both in blue ink version, by post, as well as an electronic version by e-mail. Documents from Lead Partner to the Secretariat

33. Project Claim is the formal decleration of spending by the Lead Partner in order to receive ERDF or ERDF equivalent co-financing, 2 page document: Project Claim 1 (4)

34. Project Claim 2 (4) Supporting documents Project Claim (page 1 and 2) Summary of CoE Certificates of Expenditure (for all claiming project partners) First level control checklists (for all claiming project partners) Activity Report Other funding and information measures YesNo Has any other EU funding been received? Has the project received any eligible co- financing that was not stated in the budget? Has the project fulfilled its information duties in accordance with Commission Regulation (EC) No 1828/2006? Expenditure YesNo All expenditure has been incurred during the project period All expenditure included has been paid during current reporting period All expenditure concerns the project All expenditure concerns activities that were stated in enclosure 1 to the decision Has the project undergone any substantial modification affecting the nature of implementation? Signature I hereby certify that all information in this Project claim is complete and correct. By signing this Project claim I also apply for payment in accordance with the Northern Periphery Programme 2007-2013 decision for project funding. Place and date Authorized signature for the Lead Partner organisation Name in clear

35. Summary of CoE is the ”calculator” to ensure that the project claim has been compiled correctly: 1.Fill in the reported period for the project, and the claim number Summary of Certificates of Expenditures 3 (4)

36. Project Claim 4 (4) NOTE: Self generated table after completing the Summary of Certificates of Expenditures

37. Changes in project implementation All changes in project implementation have to be communicated to the Secretariat and need preapproval before becoming eligible (this includes changes in project end date, budget changes and changes in the activity plan). The degree of the change (major or minor) will be determined by the Secretariat: Rule of thumb: 1.Please describe the change in the budget, activity plan, partnership, project co-ordinator staff, project time period, indicators or other changes to the Secretariat in an e-mail. 2.Justify the need for change 3.Describe the impact on project implementation. Maximum number requests two per year. Documents from Lead Partner to the Secretariat

38. Changes in project implementation Minor changes are: A change with no major impact on project implementation and less than 40 000 Euro increase in one project budgetline A change of a minor impact is approved in regular correspondence between the Lead Partner and the Secretariat, i.e request and answer by e-mail. All changes are to be listed in the project activity report and should confirm the picture that the changes are of a minor degree when being described in its full context. Major changes are: A change with a major impact on the projects implementation or more than 40 000 Euro increase in one project budgetline A change with a major impact normally requires a formal request in a specific template and the Secretariat will provide information on how to make that request. Different bodies can be responsible for approving the change (Managing Authority and Programme Monitoring Committee) Major changes on the overall project can normally only be allowed once during the project lifetime. Documents from Lead Partner to the Secretariat

39. What happens after your project submission

40. Thank You for Listening! www.northernperiphery.eu