1. 1 Project “EGO - ENTERPRISE GENDER ORIENTED” LLP-LDV-TOI-09-IT-0496 Management of the project: financial aspects Porto, 14-15 January 2010 Porto, Kick-off Meeting, 14-15 January 2010 LEONARDO DA VINCI Transfer Of Innovation

2. 2 Reference Documents Candidate handbook 2009 Financing Agreement Project’s consolidated Financial Statement (attachment II to the Financing Agreement) Administrative and financial guidelines and presentation of the reports (attachment III to the Financing Agreement) List of partners (financial share by partner) (attachment IV to the Financing Agreement) Porto, Kick-off Meeting, 14-15 January 2010 LEONARDO DA VINCI Transfer Of Innovation

3. 3 Period of eligibility of the EGO project start date: 1 st October 2009 end date: 30 th September 2011 Porto, Kick-off Meeting, 14-15 January 2010 LEONARDO DA VINCI Transfer Of Innovation

4. 4 Bank accounts (art. VI. of the Agreement) The costs for the opening and management of bank account are not eligible Allow the identification of funding from National Agency Fulfill the need to identify costs according to a distinct and transparent accounting system Porto, Kick-off Meeting, 14-15 January 2010 LEONARDO DA VINCI Transfer Of Innovation

5. 5 Type of costs: Eligible Costs Eligible costs must be: directly related to the performance of the action and including in the budget necessary for the implementation of the project reasonable, justified and in line with the principle of sound financial management generated during the project’s lifespan (art.II.2. of the Agreement) borne by the beneficiary and/or members of the partnership identifiable and verifiable respect fiscal and tax laws and must Involve the Countries involved in the Programme Porto, Kick-off Meeting, 14-15 January 2010 LEONARDO DA VINCI Transfer of Innovation

6. 6 Type of costs: Non-eligible Costs Porto, Kick-off Meeting, 14-15 January 2010 LEONARDO DA VINCI Transfer of Innovation The following costs remain non-eligible: expenses borne outside the contract period costs associated with the preparation of the application costs of opening and operating bank accounts costs borne by silent partners costs for invested capital debts and interest provisions for losses or potential future liabilities other interest owed doubtful debts losses on exchange rates costs declared by the applicant and covered by another action or work programme receiving a Community grant excessively high and unjustified expenses in the case of rental or leasing of equipment, the cost of any buy-out option at the end of the lease or rental period VAT, unless the applicant can show that he is unable to recover it

7. 7 Value Added Tax - VAT Porto, Kick-off Meeting, 14-15 January 2010 LEONARDO DA VINCI Transfer of Innovation VAT is an eligible cost only where the applicant can prove that it cannot be recovered

8. 8 Headings in the Financial Plan Direct Costs: A. Personnel Costs B. Operative Costs 1.Travel and subsistence costs 2. Information Technology costs (to a maximum of 10% of the total for direct costs) 3. Other costs C. Subcontracting (to a maximum of 30% of the total for direct costs) Indirect costs (to a maximum of 7% of the total of eligible direct costs) Porto, Kick-off Meeting, 14-15 January 2010 LEONARDO DA VINCI Transfer Of Innovation

9. 9 Type of costs: Direct Costs Are headings that may be identified as being directly related to the implementation of the project Direct Costs: personnel costs travel and subsistence costs information technology costs other costs subcontracting expenses Porto, Kick-off Meeting, 14-15 January 2010 LEONARDO DA VINCI Transfer Of Innovation

10. 10 Personnel Costs (1/2) Costs arising from personnel assigned to the project : statutory staff, having either a permanent or a temporary employment contract with the partner temporary staff, recruited through a specialized external agency freelance contracts with VAT only for the entire duration of the project Porto, Kick-off Meeting, 14-15 January 2010 LEONARDO DA VINCI Transfer Of Innovation

11. 11 Personnel Costs (2/2) Must be based on real daily costs real daily staff cost rates are based on average rates corresponding to the applicant's usual policy on remuneration, comprising actual salaries plus social security charges and other statutory costs included in the remuneration are calculated by multiplying the number of days worked by the real daily cost cannot exceed the maximum established amount for each ISCO category (see Supplement for the electronic Application Form 2009) Personnel employed by the partner cannot work as subcontractors in the project Non-contractual costs are not eligible: awards and bonuses, expense accounts pay incentives, profit sharing, car leases Porto, Kick-off Meeting, 14-15 January 2010 LEONARDO DA VINCI Transfer Of Innovation

12. 12 Travel Costs only borne by partnership staff assigned to the project only for travel directly related to the project’s specific activities and which are clearly identifiable are to include all costs borne from the point of origin to the destination (and vice versa) are subject to the principle of economics of spending in the choice of transport use of one’s own car – car rental or a taxi Expenses for visas, travel insurance and cancellation costs are eligible Porto, Kick-off Meeting, 14-15 January 2010 LEONARDO DA VINCI Transfer of Innovation

13. 13 Subsistence Costs only for costs borne by partnership personnel for specific activities and which are clearly identifiable subsistence which is in line with the maximum daily allowance for the destination countries (see Supplement for the electronic Application Form 2009) this includes meals, accommodation and local travel costs a full day usually foresees an overnight stay. Reimbursement system to be adopted by the organisation: expenses effectively made (reimbursement of receipts) or daily allowance basis (in the form of a daily sum) In both cases (travel costs and subsistence costs) documentation proving attendance and overnight accommodation must be exhibited Porto, Kick-off Meeting, 14-15 January 2010 LEONARDO DA VINCI Transfer of Innovation

14. 14 Information Technology Costs Are eligible: purchase, rental or lease of equipment, including the installation maintenance and insurance costs Is not eligible: any buy-out option at the end of the lease or rental period Equipment purchased before the start of the project falls under indirect costs Where equipment is purchased: can be amortised only the write off for the period involving the project in accordance with the real percentage of the equipment’s use in the project are applicable community regulations governing subcontracting ( see slide “Subcontracting costs”) Total costs cannot exceed 10% of the total direct costs for the project Porto, Kick-off Meeting, 14-15 January 2010 LEONARDO DA VINCI Transfer of Innovation

15. 15 Other Costs Deriving from specific and necessary activities for the fulfillment of the project objectives Borne by the partner and which do not concern other duly documented cost categories Are eligible costs required by the agreement, including financial services (bank guarantees) for the production of specific products resulting from the project For any activities carried out by subjects outside the partnership, please note that community regulations for subcontracting must be observed in this case Porto, Kick-off Meeting, 14-15 January 2010 LEONARDO DA VINCI Transfer of Innovation

16. 16 Other Costs: some examples not recurring expenses for press releases and publicity acquiring copyrights and other intellectual property rights purchase of information materials (books, studies and electronic data) conference fees bank and financial guarantees rental of exhibition space dissemination specific evaluation of the action audits translations organisation of seminars (where this is considered a product/result) the production of proceedings of a seminar the production of a video the purchase of product-related consumables (reams of paper for printing of publications, blank DVD) Porto, Kick-off Meeting, 14-15 January 2010 LEONARDO DA VINCI Transfer of Innovation

17. 17 Subcontracting Costs (1/2) “Costs entailed by procurement contracts for the purposes of carrying out a part of the action are considered when awarded by a partner to an external body, organization or individual (only if not employed by any of the Partner organizations of the consortium)” (Candidate Handbook 2009) The contract must include all costs, including those for travel and subsistence The management and the general administration of the project may not be subcontracted Porto, Kick-off Meeting, 14-15 January 2010 LEONARDO DA VINCI Transfer of Innovation

18. 18 Subcontracting Costs (2/2) Subcontracting can only take place in the following cases: only a limited part of actions can be subcontracted use of subcontractors must be justified if not required by the original financing request the National Agency must first give written authorization The total cost for subcontracting may not be more than 30% of the total direct costs of the project Porto, Kick-off Meeting, 14-15 January 2010 LEONARDO DA VINCI Transfer of Innovation

19. 19 EC regulations governing contracting Porto, Kick-off Meeting, 14-15 January 2010 LEONARDO DA VINCI Transfer of Innovation Contract ValueProcedure for subcontracting Less than €12,500Direct subcontracting From 12,500 to 25,000 euro Requires at least three estimates From 25,000 to 60,000 euro Requires at least five estimates Over 60,000 euroApply regulations governing government contracts

20. 20 Type of costs: Indirect Costs Are those which cannot be identified as being directly related to the implementation of the project Do not need to be supported by accounting documentation Are a flat-rate amount that cannot be greater than 7% of the total of eligible direct costs Some examples of indirect costs: communication costs infrastructure costs (rent, electricity, etc.) of the premises where the project is being carried out photocopies office supplies costs for equipment used in administering the project Porto, Kick-off Meeting, 14-15 January 2010 LEONARDO DA VINCI Transfer of Innovation

21. 21 Budget Changes for ongoing projects (1/2) Budget adjustments cannot: modify the overall cost of the project alter the ratio between the own funds and LDV financing contravene the principle of parity between partners jeopardise the project Porto, Kick-off Meeting, 14-15 January 2010 LEONARDO DA VINCI Transfer of Innovation

22. 22 Budget Changes for ongoing projects (2/2) Adjustments to the budget: result in an amendment if the variations between eligible headings exceed 10% of the budget headings where changes are less than 10% the National Agency must be informed in writing (art. III.4. of the Agreement) Porto, Kick-off Meeting, 14-15 January 2010 LEONARDO DA VINCI Transfer of Innovation

23. 23 Exchange rates (art. V. of the Agreement) Porto, Kick-off Meeting, 14-15 January 2010 LEONARDO DA VINCI Transfer of Innovation All sums in the reports must be in Euros 12/18-month long projectsThe exchange rate is that used by the bank on the date the pre-financing was transfered by the national agency 24 month-long projectsThe exchange rate is that used by the bank on the date the pre-financing was transfered by the national agency. This rate must be applied for the exchange into Euros of all costs borne in the period from the transfer of the first pre-financing to the subsequent pre-financing payment.

24. 24 Business dealings (arts. III.6 & V. of the Agreement) If productions developed as part of the project are sold during the lifespan of the project, a description of the business activities and income generated must be included in the interim and final reports. This income will be brought into consideration at the moment the final Community contribution is determined. In this case it is necessary to send: a copy of the marketing plan a sample of the product any copies of agreements signed by the partnership covering intellectual property rights Porto, Kick-off Meeting, 14-15 January 2010 LEONARDO DA VINCI Transfer of Innovation

25. 25 Thank you for your kind attention Provincia di Livorno Sviluppo Ph. +39 0586 257226 Fax +39 0586 257359 provincia.sviluppo@provincia.livorno.it Porto, Kick-off Meeting, 14-15 January 2010 LEONARDO DA VINCI Transfer of Innovation