1. 1 st Training session Giulia Righetti – Technical Secretariat 2 nd Partners meeting - Barcelona, 13 th January 2010

2. TERRITORIAL COOPERATION PROGRAMMES What’s Territorial Cooperation? 2 What’s MED Programme? SFs funded Programme Area of collaboration Which are the main reference documents of the programme? EU directives on SFs (1080/2006, 1083/2006, 1828/2006, 2004/18/EC) Which are the main elements? Financing, project management rules

3. APICE PROJECT MANAGEMENT 3

4. START UP PHASE Signature of the Subsidy Contract: between the LP and the MA Analysis of the Application form ANALYSIS OF THE TEXTS 4

5. SUBSIDY CONTRACT CONTENTS Total amount of co-financing and national financing Eligibility of the expenditures: the expenditures are eligible since the 1/02/2010 to the 30/11/2012, the expenditures period depends on the date of payment The preparation costs are eligible from the 1 st of January 2007 to the presentation of the application form The details of the expenditures is included in the Annex I to the Subsidy Contract, i.e. in the Application form You must consider your budget according to the data included in the Application form 5

6. SUBSIDY CONTRACT CONTENTS 6 Time Frame Progress report Payment claim (estimated) ERDF € Total Eligible € Deadline for submission of the report to the JTS Starting report (not related to payment) 31/07/2010 I period of implementation (from 01/06/2010 to 31/08/2010) 59,81279,751 31/10/2010 II period of implementation (from 01/09/2010 to 28/02/2011) 212,721283,627 30/04/2011 III period of implementation (from 01/03/2011 to 31/08/2011) 344,046458,727 31/10/2011 IV period of implementation (from 01/09/2011 to 29/02/2012) 516,068688,091 30/04/2012 V period of implementation (from 01/03/2012 to 31/08/2012) 289,209385,612 31/10/2012 VI period of implementation (from 01/09/2012 to 30/11/2012) 289,209385,612 31/01/2013 Final Report 31/01/2013

7. MANAGEMENT OF THE PROJECT 7

8. ROLE OF THE LEAD PARTNER LP is responsible for communication and the division of the tasks between the partners and must ensure that these tasks are correctly fulfilled in compliance with the Partnership Agreement and with the Subsidy Contract LP ensures an efficient internal management and control system. LP is responsible of the content of the reports, ensures that the partnership transmits these reports timely and correctly to the JTS 8

9. ROLE OF THE LEAD PARTNER LP under request of the JTS can ask for clarification to the PPs for the progress report LP requests and receives payments of programme funding and has the responsibility to distribute it to its partners according to the amounts reported in the progress report. These payments should be made as soon as possible and at the latest within 1month following the reception of ERDF 9

10. MANAGEMENT AND COORDINATION  PROJECT COORDINATOR - Assisted by the Technical Secretariatiat  COMPONENT COORDINATOR  FINANCIAL MANAGER  STEERING COMMITTEE MEMBERS Representatives of the partners 10

11. STEERING COMMITTEE TASKS The tasks of the Steering Committee include monitoring and guiding the implementation process of the project, as well as reviewing and approving work plans and reports. It can act as a mediator to solve eventual problems within the partnership. Working groups, task forces and advisory groups may be established to coordinate the day to- day running of activities, to fulfill specific tasks, etc. Adequate representation of involved partners must be observed in establishing decision- making and coordination mechanisms. 11

12. BUDGET CHANGES When the cumulated modifications - over the project’s duration - between budgetary headings or/and between components are lower than 10% and up to a maximum amount of 30% of the total eligible budget of the project, the LP informs the JTS then replies with an acknowledgement of receipt proving as approval. If the modifications are higher than 10% of the total eligible budget (with a maximum of 30%), or when these modification affect the balance between the partners (whatever the amounts are), they must be justified and submitted to the Selection Committee The modifications should not increase the global budget of the project. Transfers between PPs always need a preliminary agreement of the Selection Committee, whatever the amounts are 12

13. BUDGET CHANGES TIPS Budget changes up to 10% and 30% are cumulative for the whole duration of the project thus the base to calculate the overall % of budget changes remains, for the whole duration of the project, the Application Form (AF) as firstly approved To calculate the 10% / 30% of the total eligible budget that is possible to redistribute between budget lines and components, the Lead Partner shall consider the budget per budget lines and components as defined in approved AF and cumulate the positive (+) reallocations. 13

14. FINANCIAL MANAGEMENT 14

15. The project is financed at 75% by the ERDF, the co-financing is provided by national/regional funds according to national agreements The eligibility criteria for the expenditures are: –be actually paid out –have a connection with the objective of the action –belong to the approved Application Form –be committed and paid within the timeframes specified in the Subsidy Contract –be reasonable, justified and coherent with the normal internal regulations of the partner –be backed by receipts, bills or the equivalent accounting documents –respect the public procurement rules 15 Financial management main rules

16. Eligibility of expenses STAFF COSTS This category is concerning all Staff costs (including salary, tax, employer’s and worker’s social Contribution, bonus, etc. – following the national legislation) based on regular employment contracts used in the respective partner institution. Salaries must be coherent with national averages. APICEThe Staff costs must be maximum 40% of the project budget. APICE budget is in line with the rule and modifications must be approved by the LP 16

17. Eligibility of expenses SERVICES (other than external expertise) This category relates to the services which cannot be carried out by the partners of the project and who require the contribution of an external service provider. This expenditure is acceptable if within the partnership there are no necessary competences for the provision of the aforesaid services. The rules of public procurement must be respected during the selection of the company providing the external services. 17

18. Eligibility of expenses EXTERNAL EXPERTISE This category relates to the expertise, analyses, studies, reports, which cannot be carried out by the partners of the project and which require the contribution of experts or specialist bodies. The cost for an external Auditor must be included here Travel and accommodation expenses held by the external experts must be included in this budget line. Ex. Day to day project management 18

19. Eligibility of expenses PROMOTION, INFORMATION AND PUBBLICATION This category includes expenditures made to increase the visibility of the project towards the partners, general public or institutions. For example: website design and hosting drafting, lay out, printing and dissemination of publicity materials organisation of external events interpretation / translation 19

20. Eligibility of expenses TRAVEL AND ACCOMMODATION The travel expenses of the personnel involved in the project will be reimbursed on the basis of the accepted administrative tariffs in force in each country and including proper and valid documents (tickets, boarding pass …). Travelling expenses will be reimbursed at the normal cost of the market according to the most economic proposals Travel and accommodation expenses outside the MED area must be approved by the JTS/MA in advance. 20

21. Eligibility of expenses DURABLE GOODS The declaration of the expenditure engaged for the use of the durable goods is subject to the countable standards on depreciation. Consequently, the cost allocation engaged for the durable goods will have to take account of the percentages of depreciation, highlighted (e.g. worksheets etc) by typology of goods. The full cost of durable goods can be charged on the project only when it is clearly demonstrable and it is evident that durable goods are absolutely necessary to correctly carry out the activity foreseen by the project 21

22. Eligibility of expenses OVERHEADS The overheads include: telephone, fax, internet, office supplies, photocopying, mailing, office rent, heating, electricity In the case of indirect expenses, they must be affected in proportion with the project according to an equitable and duly justified method. These costs must be directly necessary for the activities and the realization of the project. The overheads dully justified can be refunded until a maximum of 7% of the total eligible budget of the project (provisional budget). 22

23. OTHER GENERAL RULES VAT - Value Added Tax VAT does not constitute eligible expenditure unless it is genuinely and definitely borne by the partner and thus cannot be recovered. VAT which is recoverable by whatever means cannot be considered as eligible. In the Application Form, partners are asked to provide a confirmation about their VAT status if they are VAT payers (and cannot thus recover VAT by any means) or they are not VAT payers (and thus they can recover VAT). In reporting, First Level Controllers will have to confirm if the VAT has been really borne by the controlled project partner. 23

24. OTHER GENERAL RULES Public procurement rules Whenever purchases are made, contracts are awarded and external suppliers are involved in a project, public tendering rules must be observed, including EC Public Procurement laws and relevant national regulations. These rules are intended to ensure transparent and fair competition within the common market. The EC procurement laws and threshold must be considered valid, in case the national regulation is stricter must be considered as to be applied 24

25. OTHER GENERAL RULES Public procurement thresholds According to the Directive 2004/18/EC (and related amendments), a full call for tender must be held for contracts valued at more than €206,000 (awarded by not central government authorities) and €133,000 (awarded by central government authorities). For contracts valued less at than €206,000 and €133,000 other procedures may apply according to national legislation. It has to be decided on a case-by-case basis on the correct procedure in each country. National rules have to be closely consulted as they may vary from country to country. 25

26. OTHER GENERAL RULES Public procurement thresholds Project partners are warmly requested to set up procedures of simplified selection according to the following indications A. Request at least three offers from three different providers before selecting one in order to ensure a minimum concurrence/selection. The request should be finalised formally meaning through a written document (i.e letter, e-mail….) in order to ensure the traceability. This means that, for example, collecting different offers through telephone calls is not acceptable. The request should clearly specify the good, external expertise and service requested, mention the name of the project and “Programme MED”. B. The less expensive proposition, clearly indicating the proposed price, should be chosen unless there is a clear written justification (quality criteria) to choose a more expensive proposition. Please note that also the offers should state the name of the project and “Programme MED”. 26

27. Please analyse deeply the table 5 of the application form with your detailed budget in order to avoid financial management problems 27

28. If – after 1 year from the SC signing – the total certified expenditure does not reach at least the 10% of the ERDF budget of the project, the MA can end the project 28

29. PAYMENTS PROCEDUR ES 29

30. PAYMENT PROCEDURES Step 1: The partners collect the invoices and the accounting files of the expenditure and payments Step 2: All partners must use the PRESAGE CTE application to enter all activities completed and expenditure made in the relevant period. The Lead Partner controls that expenses are coherent with the initial distribution per activity and per budgetary heading The Lead Partner ensures that the expenditure presented by the beneficiaries participating in the operation has been incurred for the purpose of implementing the operation and corresponds to the activities agreed between those beneficiaries 30

31. PAYMENT PROCEDURES Step 3: Once the partner has entered in PREAGE tool all the activity and financial data related to the relevant period, it must notify it to its Lead partner for validation on PRESAGE and to its First Level Controller The partner sends the proof of payments and the related documents and reports (activity report and financial report) to the first level control according to the national procedure which has been defined (centralized or decentralized) Step 4: The first level control returns to the partner, within 3 months maximum (art.16.2 of the Regulation CE 1080/2006) and after presentation of complete and correct documentation, the confirmation with indication of the validated amounts and the amounts possibly excluded. Step 5: Once the confirmation of the expenditures has been obtained, the partner transmits it to the Lead Partner 31

32. PAYMENT PROCEDURES Step 6: The LP collects and keeps all the certifications of expenses. It verifies that the expenditure presented by the beneficiaries participating in the operation has been validated by the controllers. The LP writes a payment claim containing copies of the certifications provided by the partners as well as a report containing information on the activities corresponding to the amount of expenditures. It is sent to the Managing Authority accompanied by a progress report If a partner can’t transmit to the LP its confirmation of the expenditures in due time, it should transmit it within the following progress report Step 7: The MA verifies that payment claims correspond to the activities of the project specified in the Subsidy Contract signed between the LP and the MA The MA transmits a “recommendation for payment” to the Certifying Authority within 15 working days from the reception of the payment claim.. 32

33. PAYMENT PROCEDURES Step 8: The Certifying Authority controls the recommendation for payment and proceeds as soon as possible to the payment to the Lead Partner if the recommendation for payment is complete. Step 9: From the reception of the funds, the Lead Partner must pay its partners within a period of 1 month maximum. The Lead Partner transmits to the JTS (and to the relevant National Contact Point, and/or national controllers or approbation bodies) the detail of these payments. The Lead Partner must justify in the progress report that all the payments of the former period have carried out. If not, the progress report cannot be approved. 33

34. MONITORING, EVALUATION AND CONTROL 34

35. START UP REPORT Within three months following the signature of the Subsidy Contract, the Lead Partner sends to the Joint Technical Secretariat a start-up report attesting the beginning of the activities and detailing the structures of management that ensures the good performance of the project (rules of procedure of the Steering Committee, ECC.). SUBMITTED!!! 35

36. PROGRESS REPORT THE DEADLINES FOR THE PROGRESS REPORTS ARE SET IN THE SUBISIDY CONTRACT (see slide nr.5) ACTIVITY REPORTACTIVITY REPORT: includes information on the general operation’s progress, as well as a comparison between the objectives initially envisaged and the objectives already achieved. It also includes any part corresponding to technical implementation. 36

37. PROGRESS REPORT FINANCIAL REPORTFINANCIAL REPORT: contains a retrospective accounting of expenditure paid out during the reporting period. Only certified expenditures indicated in the financial report and supported by the certification documents copies send to the LP will be included in the PAYMENT CLAIM 37

38. PROGRESS REPORT - PRESAGE THE PROGRESS REPORTS AND THE CERTIFICATION DOCUMENTS MUST BE FILLED BY EACH PARTNER BY THE PRESAGE SYSTEM AND APPROVED BY THE LP BEFORE SENDING THE PROGRESS REPORT TO THE JTS 38

39. CONTROL AND AUDIT GUIDELINES CONTROL AND AUDIT GUIDELINES FIRST LEVEL CONTROL IN PRACTISE According to the FLCer regulations each partner must provide to the auditor the proof of payments and all the related documents. For details verify your national regulations Documents to be provided by the FLCer 1.Certificate of the auditor – generated by Présage 2.Control Checklist – generated by Présage The copies of the documents must be sent to the LP 39

40. Evidence that the most cost-efficient option has been chosen and, if applicable, evidence that public procurement has been respected Service contract with the service provider clearly stating the type of service to be provided, including the date of the service and the total cost. Detailed invoice, clearly stating date of the invoice, the payee, the payer, the description and quantification of the services, quantification of the Services, price per unit and total price. DOCUMENTS REGARDING PROOF OF PAYMENT ARE ALSO NEEDED!!! 40 GENERAL SUPPORTING DOCUMENTS

41. NEXT STEPS List of weaknesses in the project management system List of needs and constraints of the partners in the financial management Questions 41

42. Thank you for your attention!! giulia.righetti@naxta.it 42