1. Application Form Part 3 How to Apply Seminar 29th February 2012 – Copenhagen Christopher Parker

2. Part 3 – Financial Tables: Total Budget Overview Overall budget table for whole project per year Project costs Financing plan Automatically generated from underlying forms Do not enter figures manually! Note: do not mess with the template! 2

3. Part 3 – Financial Tables: Partner Information (1 of 3) This is the first of 3 pages that needs to be filled in for each (Lead) partner On this page, projects should fill in contact details for the organisation as well as background information 3

4. Part 3 – Financial Tables: Partner Information (2 of 3) Enter the organisation name and contact details Telephone numbers: enter an apostrophe (‘) before the country code Enter the bank details The project title and organisation name will automatically show in the total budget overview and the individual cost budgets per partner 4

5. Part 3 – Financial Tables: Partner Information (3 of 3) Projects must answer 4 questions about the organisation to give more insight Core activities Interest in the project Use of project results ERDF experience 5

6. Part 3 – Financial Tables: Cost Budget & Financing Plan (1 of 4) On the second page, you can find for each partner: the cost budget the financing plan a checklist for supporting evidence 6

7. Part 3 – Financial Tables: Cost Budget & Financing Plan (2 of 4) Partner cost budget: enter the costs per budget line per year. Use the correct year! The cost budget must be broken down in a separate form to demonstrate that all costs are eligible, actual and realistic 7

8. Eligible Costs Study the Common Eligibility Rules! 1. Staff costs including social contributions 2. Travel and accommodation 3. External experts 4. Office costs (directly allocated) 5. Office costs (distributed proportionally) 6. Promotion / publications, seminars / conferences, meetings 7. Equipment and supplies (Including small scale investments) 8. Other costs 9. In kind costs 10. Common costs 11. Project revenues 1. Staff Costs Staff costs include salary and social contributions for staff members employed by the (Lead) partner. Staff costs must be supported by legal contracts/employment agreements. Full time: contracts Part time: time sheets Hourly rate: Monthly salary + social contribution charge Normal working hours per month Only legally required social contributions (no extra benefits) Staff costs should form a realistic part of the budget 8

9. Eligible Costs 2. Travel and Accommodation Realistic costs for travel and accommodation related to project activities, including daily allowances. The most economic (or sustainable) way of transport. The travel took place within the programme area. The accommodation cost are in the middle price range (approx. €140/night). Daily allowances in line with public authorities in the country concerned 3. External Experts External experts or consultants may be appointed for specific project tasks if their work is essential to the project. The work of the expert is essential to the project Rates are reasonable. Daily rates over €800 must be motivated. Rates are in relation to level of expertise Project partners cannot be contracted as external experts Projects are expected to tender for external experts. Sub-contracting by external experts, not part of the original bid, is only eligible if it forms a minor part of the of the contracted activities and is clearly adding value to the project not leading to any additional costs 9

10. Eligible Costs 4. Office Costs (direct) This budget line should include premises costs such as rent, heath, light, water and service charges related solely to the project. Also included could be administrative costs such as phone calls, postage, copying and office supplies directly related to the project. The costs need to correspond to the m2 space used for project activities. Besides standard accounting material, a copy of the underlying premise agreement is obligatory for eligibility. 5. Office Costs (proportional) General costs that cannot be allocated directly to the project. These costs must be based on real costs attributable to the project. The costs must be properly documented should follow the calculation model provided in the Common Eligibility rules. The costs cannot exceed 25% of direct salary cost. 10

11. Calculation Proportional Office Costs 11 Total allowed office expenditure to be distributed proportionally/year Total number of hours worked in organisation/year Number of hours worked in project (timesheets)

12. Eligible Costs 6. Promotions/publications, seminars/conferences, meetings Costs related to promotion and publications specific to the project and costs related to the organisation of meetings, seminars and conferences. Please note that the costs for travel and accommodation in connection with such events under budget line 2. Meals/catering/entertainment should be of a moderate nature and according to normal standards. All meals/catering must be supported by a list of participants and a statement outlining the purpose of the occasion. 7. Equipment and Supplies Equipment solely related to the project. To be considered eligible, the equipment must be essential for the delivery of the project. Costs include delivery and installation, etc. The full purchase price is only eligible if the economic lifetime falls within the project lifetime. Otherwise, depreciation costs. Special conditions for second-hand equipment 12

13. Eligible Costs 8. Other Costs Other eligible costs clearly required and relevant to the project. Costs related to first level control should be placed here. 9. In Kind Costs In kind costs consist of the provision of land or real estate, equipment or raw materials, research or professional work, whose value can be independently assessed and audited. In kind contributions can be viewed as a source to generate NPP co- financing. Only public or public equivalent in kind contributions from organisations outside the partnership are eligible. Are both a cost and source of match funding. Own work can never be in kind Co-financing cannot exceed total costs minus in kind contributions 13

14. Eligible Costs 10. Common Costs Within the partnership there are costs for administrating the project, or other costs of a common nature such as promotion, conferences etc. It is up to the partnership to decide how to allocate such costs between the partners. In this budget line each partner should state the agreed share of the total common costs for administrating the project on behalf of the partnership. Common Eligibility Rules apply. This expenditure category should contain a separate accounting of each partners' share of the total common costs. 11. Project revenues Revenues from planned project activities, for example fees attached to a conference or seminar, are to be reduced from the budgeted costs. The revenue figures filled in should be negative (-). This includes revenues in other forms than money. Revenues should be reported continuously. 14

15. Indicative list of ineligible costs Purchases and service contracts for any project partner (including private partners) that have not been procured in accordance with EU, national or organisational procurement procedures Fees for financial transactions (except for transnational transaction charges) Interest on debt, loan charges or costs resulting from the deferral of payments to creditors Exchange rate losses or other costs tied to currency exchange Fines, other legal fees or court costs Costs for finance leases or other hire purchase arrangements Redundancy payments Payments into private pension schemes Bad debts Overtime pay for part time workers in the project Purchase of land Decommissioning of nuclear power stations Housing Recoverable VAT Unpaid costs 15

16. Part 3 – Financial Tables: Cost Budget & Financing Plan (3 of 4) Financing plan: how are the project costs being financed Enter match funding type (cash/in kind) and source. Enter the relevant co- financing source per partner Check if the grant rate is correct 16

17. Financing Plan Public Match fundingfor main projects In kind: this should be equal to budget line 9, in kind costs. Enter the names of the organisations and the type of contribution. Cash: Enter the names of the organisations contributing cash public match funding. Examples include ministries, regional and local authorities, universities, etc. Co-financing 17 SourceTypeGrant Rate Member StateERDF60% Member State 20%ERDF50% NorwayERDF equivalent50% Norway 20%ERDF equivalent50% IcelandERDF equivalent50% Faroe IslandsERDF equivalent60% GreenlandERDF equivalent50% 10% source to Non Member State partners Mixed; Member States, Norway and Iceland 50%

18. Part 3 – Financial Tables: Cost Budget & Financing Plan (4 of 4) At the bottom of the form there is a checklist to ensure that all supporting documents are in place: Budget breakdown forms If applicable: Supporting evidence common cost budget Distribution model proportional office costs. Procurement status VAT declaration The form should be signed by the person responsible for the partner organisation 18 Mr. Ned Periphery Head of Unit

19. Part 3 – Financial Tables: Common Cost Budget The third page for each partner contains a table for entering a separate common cost budget This table should only be filled in for the holder of the common costs. The individual shares should be filled in on the budget line “add: share of common cost” for each partner. Supporting evidence should be provided 19

20. Project Budget Breakdown Template This form should be filled in for each partner. The form demonstrates that the partner the costs are eligible, actual and realistic and follow the Common Eligibility Rules. Can be downloaded separately 20

21. Match Funding Commitment Template This form should be filled in by each partner or by each organisation providing public match funding. Choose the correct type of match funding: cash or in kind Enter the correct amount in Euros This form should be signed and stamped This form is included in the application package 21

22. Part 3 – Financial Tables: Pitfalls Projects fail to answer the 4 background questions about partner organisations Projects do not use the correct years The costs are not in balance with the financing. The budget does not add up. Cost budget: Proportional office costs: projects do not use the correct calculation Other costs: projects fail to budget for first level control In kind costs: projects often misunderstand this concept. Own work is never an in kind contribution. If the project has an eligible in kind match funding source, the same amount should be entered here as in kind costs. Common costs: projects do not distribute the costs or the individual shares do not add up. Only the holder of the costs should fill in the common cost budget table. Financing: Projects forget to use the 10% or 20% source for partners (just) outside the eligible area Projects do not always use the correct grant rate Projects do not specify the match funding source (organisation name, etc) Match funding commitments are in local currencies and incomplete Supporting evidence is often not complete Forms are not signed by the person with the authority for the organisation 22

23. Part 3 – Financial Tables: Best Practices Studying and using the Common Eligibility Rules Using the Application Instructions when filling in the forms Making sure that all parts of the form are complete Making sure that the costs are in balance with the financing Making sure that the grant rates are correct Making sure that the correct years are filled in Making sure that you enclose all supporting evidence: Budget breakdown forms Office costs distribution model VAT statements Documentation common costs Match funding statements Signatures 23

24. Thank you for listening!