delegation of the european commission to russia 1 financial reporting for grant contracts general...
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Delegation of the European Commission to Russia
Financial Reporting for Grant
ContractsGeneral Conditions
22.08.2006
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Delegation of the European Commission to Russia
General Conditions
The Beneficiary must keep accurate and regular
records and accounts of the implementation of the
Operation using a dedicated book-keeping system as a part
of or as an adjunct to the Beneficiary’s own accounts.
(Annex II, art.16.1)
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Delegation of the European Commission to Russia
General Conditions
The Beneficiary alone shall be accountable to the Commission for
the Implementation of the Operation.(Annex II, art.1)
The Beneficiary undertakes to ensure that the conditions imposed upon him under this Contract also
apply to all partners and subcontractors involved.
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Delegation of the European Commission to Russia
General Conditions
The Beneficiary must provide the Commission with full information on the
implementation of the Operation. To that end, the Beneficiary must draw
up intermediate reports and final report.
These reports shall consist of a technical and a financial section.
(Annex II, art.2.2)
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Delegation of the European Commission to Russia
ADVANCE PAYMENT
Request for advance payment can be sent to the EC
Delegation to Russia when the contract is signed by both
parties.
Amount of the advance payment is indicated in the Special
Conditions, art.4
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Delegation of the European Commission to Russia
ADVANCE PAYMENT
Request for Advance Payment should be prepared in accordance with template.
The following information is obligatory for the Request for Advance Payment:
• name and address of your Organisation; • contract number and project title; • type of payment;• requested amount in EURO; • bank account details, that must correspond
to the information on the Financial ID form that you sent to EC Delegation before contract signature.
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Delegation of the European Commission to Russia
ADVANCE PAYMENT
Request for Advance Payment should be dated and signed by
the empowered representative of your organisation
It must be an original
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Delegation of the European Commission to Russia
ADVANCE PAYMENT
In case the name of your organisation or its legal address
or the bank details change, please, contact your Project
Officer and submit a new Financial Identification Form and / or Legal
Entity File ASAP
The corrections will take 2-4 weeks
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Delegation of the European Commission to Russia
INTERIM PAYMENTGrants for more than 100,000€ /an implementation period more than 12 month:
• Further pre-financing may only be given if the part of the expenditure actually incurred which is financed by the Contracting Authority (by applying the percentage set out in Article 3.2 of the Special Conditions) stands at 70% at least of the previous payment as supported by the corresponding interim report.
(Annex II, art.15.1, option 2)• Where the consumption of the previous pre-financing is
less than 70%, the amount of the new pre-financing payment shall be reduced by the unused amounts of the previous pre-financing payment.
• The sum total of pre-financing under the Contract may not exceed 90% of the amount referred to in Article 3.2 of the Special Conditions.
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Delegation of the European Commission to Russia
INTERIM PAYMENT
Request for Interim Payment should be prepared in accordance with the
requirements indicated above for the advance payment and
Annex V template.
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Delegation of the European Commission to Russia
INTERIM PAYMENT
The request for interim payment must be supported by an interim
financial report and technical report, which should be prepared
using the enclosed templates, and consists of the following
components:
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Delegation of the European Commission to Russia
INTERIM PAYMENT
COMPONENTS
• Summary table - INTERIM FINANCIAL REPORT -• Summary tables for Fees and Per Diems • Summary tables for budget headings 2, 3, 4, 5 and 6• Copies of supporting documents for Budget line 3
(Equipment and Supplies) • Attendance sheets for participants of seminars,
conferences, workshops etc • Copies of addenda and relevant correspondence
between your Organisation and the EC Delegation related to approval of financial issues
Second bound copy of the whole package of documents
listed above
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Delegation of the European Commission to Russia
INTERIM PAYMENT
1.Summary table - INTERIM FINANCIAL REPORT
It must indicate the real total expenditure incurred and include the contributions of
the EC, applicant and partner organisations and be as detailed as the contract budget
breakdown.
It may include eligible costs invoiced to your organisation (or partner organisations)
only during project implementation period set by the Special Conditions of your
Contract, art.2
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Delegation of the European Commission to Russia
INTERIM PAYMENT
• All amounts should be claimed in Euro
• NEW! Any amount not originally invoiced in Euro by the supplier must be converted to Euro at the rate made up by the average of the rates published in InforEuro for the months covered by the relevant report.
• The official EC exchange rates can be found on the Internet at
http://ec.europa.eu/budget/other_main/links_en.hmt
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Delegation of the European Commission to Russia
INTERIM PAYMENT
2. Summary tables for Fees and Per Diems
Each project staff member must regularly fill in timesheets
(Annex II, art.16.3)
A full-time working month consists of 22 working days
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Delegation of the European Commission to Russia
INTERIM PAYMENT
Per Diems are paid only to the project staff and experts of the project specified
by article 1. “Human Resources” for each night spent on mission.
It should include accommodation (hotel) costs, meals, local transportation (car rent, taxi), bed sheets in the train and
sundry expenses.
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Delegation of the European Commission to Russia
INTERIM PAYMENT
NEW! The Per diem rate cannot exceed rates set out in Annex III, which correspond to the scales
published by the European Commission at the time of signing
this contract
http://europa.eu.int/comm/europeaid/perdiem/index_en.htm
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Delegation of the European Commission to Russia
INTERIM PAYMENT
3. Summary tables for budget headings 2, 3, 4, 5 and 6
• Summarize all relevant invoices and receipts in chronological order with a short description of invoices and should follow a budget breakdown and coding
• Costs in the currency of invoice with an indication of the date of invoice
• Costs must be converted to Euro at the rate made up by the average of the rates published in InforEuro for the months covered by the relevant report.
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Delegation of the European Commission to Russia
INTERIM PAYMENT
4. Copies of supporting documents for Budget line 3 (Equipment and Supplies)
• Copy of invoice/Copy of invoice-facture
• Copy of the payment document (payment order or cash receipt)
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Delegation of the European Commission to Russia
Final Financial Report
The Final report shall be forwarded within three months of the end of the Operation’s
duration of execution as defined in the Contract
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Delegation of the European Commission to Russia
Final Financial Report
The final report must contain a final statement of all the eligible costs of the Operation, plus a full summary of the Operation’s income and expenditure
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Delegation of the European Commission to Russia
Calculation of the Final Payment
In the contract:
Total cost of the operation: 500,000.00 €
EC contribution (90%) of total cost: 450,000.00 €
Advance Payment: 300,000.00 €
Interim Payment: 100,000.00 €
Forecast of Final payment: 50,000.00 €
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Delegation of the European Commission to Russia
Calculation of the Final Payment
Calculation of the balance amount based on real accepted costs (final financial reports):
Total amount of actual costs supported by valid documentation: 450,000.00 €
EC contribution (90% of total accepted cost): 405.000,00 € Final payment: (405,000.00 € - 300,000.00 € - 100,000.00 € ) 5.000,00 €
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Delegation of the European Commission to Russia
Final Financial Report
COMPONENTS
1. Summary table – FINAL FINANCIAL REPORT 2. Expenditure Verification Report 3. Summary tables for Fees and Per Diems 4. Summary tables for budget headings 2-6 5. Copies of supporting documents for Budget line 3
(Equipment and Supplies) 6. Attendance sheets for participants of seminars,
conferences, workshops etc7. Statement from your bank about interest accrued 8. Copies of addenda and relevant correspondence between
your Organisation and the EC Delegation related to approval of financial issues
Second bound copy of the whole package of documents
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Delegation of the European Commission to Russia
Final Financial Report
1.Summary Table –
Final Financial ReportEC + Beneficiary's + Partner(s)’ contribution
• Please do not delete, rename, add or replace budget lines
• There should be no rounding in the financial report: two figures after the decimal point for all expenses, and four figures after the decimal point for the exchange rate
• average of the rates published in InforEuro for the months covered by the relevant report
• Costs incurred during the project implementation period (SC, art.2)
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Delegation of the European Commission to Russia
Final Financial Report
2. EXPENDITURE VERIFICATION REPORT
The purpose of the expenditure verification report is to certify the
amount of your report.
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Delegation of the European Commission to Russia
Final Financial Report
EXPENDITURE VERIFICATION REPORT
• Made in accordance with template (Annex VII)
• Confirms that the amounts claimed by the Beneficiary are real (each invoiced item has a valid and original supporting document), exact and eligible in accordance with the Contract.
• The auditor must confirm and attest the accuracy of your Final Financial Report by signing each page of the Financial Report Table
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Delegation of the European Commission to Russia
Final Financial Report
3. Summary tables for Fees and Per Diems –FEES
Each project staff member must regularly fill in timesheets
1. Respect the rates and number of units for salaries and per diems
2. A full-time working month consists of 22 working days.
3. Originals of timesheets must be kept by your organisation for the Audit.
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Delegation of the European Commission to Russia
Final Financial Report
3. Summary tables for Fees and Per Diems –PER DIEMS
1. The Per Diem can be paid only to the staff member or expert of the project
2. Per Diems can be paid only for each night spent on mission
3. The Per diem rate cannot exceed rates set out in Annex III, which correspond to the scales published by the European Commission at the time of signing this contracthttp://europa.eu.int/comm/europeaid/perdiem/index_en.htm
4. Please always indicate in the summary table the name of person on mission, his/her post, destination and period on mission and follow budget breakdown and coding
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Delegation of the European Commission to Russia
Final Financial Report 4. Summary tables for budget
headings 2, 3, 4, 5 and 6
• Summarise all relevant invoices and receipts in chronological order with a short description of invoices
• Costs in the currency of invoice with an indication of the date of invoice
• Costs must be converted to Euro at the rate made up by the average of the rates published in InforEuro for the months covered by the relevant report.
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Delegation of the European Commission to Russia
Final Financial Report
Heading 2 - Travel
• Please always indicate in the summary table the name of person on mission, his/her post, destination and period on mission
• Copies of tickets (incl. boarding pass for the air ticket) should be kept and presented upon the request
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Delegation of the European Commission to Russia
Final Financial Report5. Copies of supporting documents for Budget line 3
(Equipment and Supplies)
• Copy of invoice, Copy of invoice-facture
• Copy of the payment document (payment order or cash receipt)
• Certificate of origin for the equipment (for the amount more than 5,000€ per unit)
• Tender documentation (for the amount more than 5,000€)
• Transfer of ownership document/ accounting documentation confirming that the equipment is on the organization’s balance if it remains with the beneficiary (for the amount more than 5,000€ per item)
All documents should be bound, numbered in accordance with the summary table and easily readable
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Delegation of the European Commission to Russia
Final Financial Report
Rule of originOur Regulations contain rules of origin for any supplies
acquired by the Beneficiary in the context of the grant. The supplier must state the country of origin.
The equipment should be produced/assembled by the EU member states + candidates, Russia or TACIS countries.
(Annex IV, art.2.2)
Certificate of origin for the equipment (for the amount more than 5,000€ per unit)
Certificate of origin for the equipment should be attached to the financial report with indication of the country of origin
(Annex IV, art. 2.7)
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Delegation of the European Commission to Russia
Final Financial ReportTransfer of Ownership
• The equipment, vehicles and supplies must be transferred to local partners or the final recipients of the Action
• Made in accordance with template and submitted in original
• Includes all equipment for the amount of 5,000€ per item (list of equipment is required)
(Annex II, art.7.3)• Signed by both parties and bears a stamp of the
recipient• if remains with the beneficiary accounting
documentation confirming that the equipment is on the organization’s balance needed
(Annex II, art.7)
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Delegation of the European Commission to Russia
Final Financial ReportProcurement in the context of
EC external actions
• See details in Annex IV of the Contract
• For services and supplies of a value of 5 000€ or less, the Beneficiary may place orders on the basis of a single tender
• For services/supplies of a value of more than 5 000€ the Beneficiary consults at least three service providers/suppliers of its choice and negotiates the terms of the contract with one or more of them
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Delegation of the European Commission to Russia
Final Financial ReportProcurement in the context of
EC external actions
• The contract must be awarded to the most economically advantageous tender (ie, the tender offering the best price-quality ratio)
• Artificially splitting related activities into
smaller lot sizes or contracts to circumvent the procurement thresholds is prohibited
• Tender documentation (tender offers with a relevant report) should be submitted with the final report
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Delegation of the European Commission to Russia
Final Financial Report6. Attendance sheets for participants of seminars, conferences, workshops
(non-staff members of the project)
List of participants of seminars, conferences and workshops should be signed and dated with a precise
indication of title and location.
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Delegation of the European Commission to Russia
Final Financial Report 7. Statement from your bank about interest
accrued
• The grant can under no circumstances result in a profit for himself
• According to Article 15.10 final instalment should be reduced by the amount of the interests accrued from pre-financing
• If no interest accrued submit a bank statement
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Delegation of the European Commission to Russia
Final Financial Report
VAT – Value Added Tax
• According to Article 14.6 VAT is not an eligible expense
• Applicants and partners too should follow the established procedures to reclaim VAT
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Delegation of the European Commission to Russia
Final Financial Report
ADMINISTRATIVE COSTS (Annex II, art. 14.4)
• This heading may include project costs that cannot be attributed to any other budget headings
• Please, note that the amount under this budget heading cannot be greater than 7% of the real cost of your project
• Summary table is not submitted to the EC but records should be kept in your organisation for audit
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Delegation of the European Commission to Russia
Final Financial Report
COMPONENTS
1. Summary table – FINAL FINANCIAL REPORT 2. Expenditure Verification Report 3. Summary tables for Fees and Per Diems 4. Summary tables for budget headings 2-6 5. Copies of supporting documents for Budget line 3
(Equipment and Supplies) 6. Attendance sheets for participants of seminars,
conferences, workshops etc7. Statement from your bank about interest accrued 8. Copies of addenda and relevant correspondence between
your Organisation and the EC Delegation related to approval of financial issues
9. VAT – only official exempt from state/local tax inspectorate is acceptable
Second bound copy of the whole package of documents
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Delegation of the European Commission to Russia
Final Financial Report
The Commission may request additional information at any time;
that information must be supplied within 30 days of
the request.
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Delegation of the European Commission to Russia
Amendments to the Budget1) By Notification (in writing to PO):
• Transfer within budget heading
• Transfer between budget headings involving less than 15% variation in each heading
• Changes should be supported by attached correspondence on PO approval
• Except: Administrative expenses and Contingency reserve
2) By Addendum:
• Major changes e.g. budget change > 15%
• Prior approval – NOT retroactive
(Annex II, art.9)