Leonardo da VinciLeonardo da VinciREBASING – Research-based REBASING – Research-based

Competence BrokeringCompetence Brokering

Project management: Project management: administrative and financial administrative and financial

issuesissues

Reference documentationsReference documentations

•Relevant Call for proposals and Guide for applicants

•Grant Agreement

•Annexes to Grant Agreement, in particular:

-Project’s approved Budget

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Topics of the presentationTopics of the presentation

1.Project budget

2.Reporting activity

3.Possible on-going budget revision

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The budget of the projectThe budget of the project

Direct costs:a.Staff costsb. Operational costs: 1.Travel and subsistence costs 2.Equipment costs (must not exceed 10% of the total direct costs) 3.Other costsc. Subcontracting costs (must not exceed 30% of the total direct costs)Indirect Costs It is a flat-rate amount set at a maximum of 7% of the total amount of eligible direct costs (in our case: 6,54%)

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Cost categories: direct costsCost categories: direct costs

Those costs which are identifiable as specific costs directly linked to performance of the project and which can therefore be directly related to it

Direct costs:a.Staff costs

b. Operative costs:1. Travel and subsistence costs 2. Equipment costs3. Other costsc. Subcontracting costs

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Cost categories: Indirect costsCost categories: Indirect costsThose costs which are not identifiable as specific costs directly related to the performance of the project, but which have nevertheless been incurred in connection with the eligible direct costs for the actionThey cannot include any eligible direct costs The corresponding costs need not be justified through accounting documents, corresponding to a maximum lump sum of 7% of the direct costs declared eligible after the approval of the final report

Examples of indirect costs:•Communication costs (postage, fax, telephone, mailing, etc.)

•Infrastructure costs

•Photocopies

•Office supplies

•Costs for equipment related to project administration6

Type of costs: Eligible costsType of costs: Eligible costsEligible costs meet the following criteria:

•connected with the subject of the agreement and indicated in the estimated overall budget of the project;

•necessary for the implementation of the action which is the subject of the grant;

•reasonable, justified, and compliant with the requirements of a sound financial management (economic efficiency)

•incurred during the duration of the action as specified in Article II.2. of the Agreement

•actually incurred by partners

•identifiable and verifiable

•related to activities involving the eligible countries in the Programme

•compliant with the requirements of applicable tax, fiscal and social legislation7

Type of costs: Non-eligible Type of costs: Non-eligible costscosts

Under no circumstance can the following types of costs be considered as eligible:

•costs incurred outside the contract period•costs associated with the preparation of the application •costs of opening and operating bank accounts•costs born by silent partners•return on capital•debt and debt service charges•provisions for losses or potential future liabilities•other interests owed•doubtful debts•exchange losses•costs declared by the applicant and covered by another action or work programme receiving a Community grant•excessive or reckless expenditures•purchase of capital assets•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, if not a final cost

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VATVAT

VAT is considered as an ELIGIBLE COSTonly if the organizations can show that they

are unable to recover it

Please note:The Leonardo da Vinci grant is not subject to VAT application and therefore it is not subject

to any fiscal taxation

It’s necessary to have a declaration signed by your Legal Representative

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Staff costs (1)Staff costs (1)

Costs relating to the following categories of staff are considered:

•Statutory staff, having either a permanent or a temporary employment contract with the partner

•Temporary staff, recruited through a specialised external agency

VAT contracted staff ONLY IF THE CONTRACT REFERS TO THE WHOLE PROJECT DURATION

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Staff costs (2)Staff costs (2)

The contractor will have to collect:

• evidence on how the daily rates for staff were calculated

The documentation (i.e. payslips, official/ certified accounting documentation, contracts & curriculum vitae,

etc.) relating to those working for the project could be checked during the Audit

This budget heading must not include costs relating to persons undertaking subcontracted tasks

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They must be based on the real daily costs

They include actual salaries plus social security charges and other statutory costs included in the remuneration

The staff costs results from multiplying the number of days worked on the project with the real daily staff cost rate

Costs cannot exceed the maximum rate foreseen by ISCO category (see General Call for Proposal – Part I)

Staff members of project partners are not allowed to operate in a subcontracting capacity for the project

Non statutory costs like bonuses, lease car, expense account schemes, incentive payments or profit-sharing schemes are not eligible

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Staff costs (3)Staff costs (3)

Country Manager Researcher/ trainer/ teacher Technical Administrative

Deutschland DE Germany 356 309 248 191Eesti EE Estonia 102 94 66 46France FR France 423 358 234 179Italia IT Italy 568 332 225 187Norge NO Norway 529 459 375 283

Travel costsTravel costsOnly travel costs for staff contributing to the project

Costs may be claimed only for journeys directly connected to specific and clearly identifiable project-related activities

Include all costs and all means for travel from the point of origin to the point of destination (and vice versa)

The principle of lower available price has to be applied when choosing travel means

Use of Private car (1 person), Hired cars and Taxis if the cost is not too expensive in comparison with public transport

Note

-visa fees, travel insurance and cancellation costs are eligible

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Subsistence costsSubsistence costsOnly subsistence costs for staff taking part in the project

Costs may be claimed only for journeys directly connected to specific and clearly identifiable project-related activities

Subsistence costs must not exceed maximum daily subsistence rates per country (see the Supplement for the electronic Application Form 2010)

• Subsistence rates cover accommodation, meals and all local travel cost•A FULL day normally includes an overnight stay. If no overnight stay is necessary, only the 50% of the daily rate is eligible.

Note: the reimbursement system applied by the partner’s organisation might be:• reimbursement of real expenses

• reimbursement of a daily lump sum (forfait) if ordinarily applied by the partner

IN BOTH SYSTEM, EVIDENCE OF SUBSISTENCE AND OVERNIGHT COSTS MUST BE DOCUMENTED (i.e. by hotel invoices, bus tickets, restaurant bills..) 14

Country Daily rates (EUR)

Deutschland DE Germany 208

Eesti EE Estonia 181

France FR France 245

Italia IT Italy 230

Norge NO Norway 220

Subsistence costsSubsistence costs

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It’s necessary to send us via mail (area.progetti@siav.net) all justificatifs

immediately after each trip

IT Equipment costs IT Equipment costs Purchase, rent or lease of equipment (new or second-hand), including the installation,

maintenance and insurance costs

Equipment purchased before the start of the project, if related to the administration of the project, is covered by indirect cost

When the equipment is purchased:•only the portion of the equipment's depreciation corresponding to the duration of the

action and the rate of actual use for the purposes of the action may be taken into account

•respect the community rules for procurement (see slide n.20)

The cost of any buy-out option at the end of the lease or rental period is not eligible

Equipment costs must always be duly justifiedThe total cost for equipment may not exceed 10% of the total direct costs of the project

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Other costsOther costs

Only activities which are specific and necessary for achieving the goals of the project are considered

Only costs incurred by the partners themselves and duly justified are eligible

Costs which are not covered by the other cost categories

Includes costs arising directly:

•from requirements imposed by the grant agreement (especially the cost of financial guarantees)

•from the realisation of specific actions or of products/ results of the

project

Any other activity realised by staff/organisation external to the partnership must apply the EU subcontracting legislation (see slide n. 20)

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Other: some examplesOther: some examples

•one-off costs for press releases and publicity

•purchase of copyrights and other Intellectual Property Rights

•purchase of information materials (books, studies and electronic data, etc.)

•conference fees/meeting registration costs5

•financial guarantees

•rental of exhibition space

•dissemination of information

•specific evaluation of the action

• financial audits

•translations

•organisation of seminars (where the seminar is a foreseen as a product/result and where task-related costs are easily identifiable)

•the production of proceedings of a seminar

•the production of a video

•the purchase of consumables for the realisation of a product (e.g. paper for printing publications)

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Subcontracting costs (1/2)Subcontracting costs (1/2)“Costs entailed by procurement contracts for the purposes of carrying out specific and limited work for the project, can be considered eligible when awarded by a partner to an external body, organisation or individual (only if not employed by any of the Partner organisations of the consortium).”(Guide for Applicants 2010)

The management and the general administration of the project may not be subcontracted.

The principles of transparency and equal treatment of potential contractors must be applied. Costs are based on a verifiable estimate or, if the subcontractor is identified, on the basis of an offer. Estimate, offer and contract must cover all costs, including the costs of travel and subsistence.

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Subcontracting costs (2/2)Subcontracting costs (2/2)It is possible to outsource activities through subcontracting only if:

• Only a limited share of actions might be subcontracted

• The use of subcontracting must be justified

• If the costs is not included in the original application form, a written permission of the NA is required

The beneficiary must commit itself to avoid any conflict of interest

The total cost for subcontracting may not exceed 30% of the total direct costs of the project

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Community rules for Community rules for procurementprocurement

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Value Procedure for procurement

Value below 12.500€ An invoice is enough

Between 12.500€ to 25.000€

Involvement of at least three tenderers

Between 25.000€ to 60.000€

Involvement of at least five tenderers

Over 60.000€ National rules with regard to public procurement apply

On-going budget changes On-going budget changes (1/2)(1/2)

Changes shall NOT:

• modify the the total project cost

•alter the ratio between LDV fund and own funds

• Include Indirect costs

•violate the principle of equal treatment among partners

•always be justified and not alter the project nature and objectives

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On-going budget changes On-going budget changes (2/2)(2/2)

Major changes imply amendment to the contract when:

Changes over the 10% of the amount foreseen in the “budget heading of

destination”

If changes are lower than 10%, the national Agency must be informed by written means (art. III.4 Grant Agreement)

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Exchange rates (art. V. Grant Exchange rates (art. V. Grant agreement)agreement)

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All amount reported must be expressed in EURO

12/18 months projects The exchange rate applied is the rate applied by the bank when the first pre-financing payment is transferred by the NA

24 months projects The exchange rate applied is the rate applied by the bank when the first payment is transferred by the NA.The exchange rate must be applied to exchange in EUR all costs from the first pre-financing until the following pre-financing payment

Marketing (commercial) – Marketing (commercial) – artt. III.6 and V. Grant Agreementartt. III.6 and V. Grant AgreementWhen the partnership proceeds to commercial exploitation of products developed within the project lifetime, a description of exploitation activities and related revenues shall be included in the Interim and Final report

The revenue will be considered effective since the identification of the final amount of the EU – LDV fund

The benificiary shall send as well:-A copy of the marketing plan-A specimen of the product-A copy of the agreement undersigned by all partners concerning intellectual property copyright

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Interim and Final ReportsInterim and Final Reports

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Submission of ReportsSubmission of Reports

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Project duration

Interim Report

Final Report

12-18 months

NA 2 months after the end of the project

24 monthsBy month 14th, and based on the first 12 months of project activities and expenditures

By month 26th, and based on the total project activities and expenditures (30/11/2012)

Evaluation phasesEvaluation phases

1. Control of formal requirements in the report and attached documentation;

2. Evaluation of the report considering the activities/results foreseen, as well as the costs undergone in the related period, in terms of quality and quantity, including the audit of the truthfulness and eligibility of the action.

Only for the Final Report:3. Validation of the financial report and

the evidence documents, in porder to verify the the truthfulness and eligibility of the expenses, as well as the equity and the sound project management.

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Interim Report: objectivesInterim Report: objectives

Monitoring the first 12 months of project activity

Check the compliance with project workplan

Check the expenditure of community fund

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Interim Report: assessment Interim Report: assessment deadlinesdeadlines

• The Agency has 90 calendar days since the day of receipt of the Interim report to approve or reject the report, or to ask for more documents and information. The deadline is suspended once the integration is requested and proceeds once the information is received.

• The Beneficiary has 30 calendar days to send the requested information or to supply a new interim report

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Final Report: objectivesFinal Report: objectives

• Define the final balance and the amount of the EU fund due or the amount to be recovered from the partnership

• Check the compliance with the project workplan

• Check the expenditure of community fund

• Evaluate the results/products

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Final Report: assessment Final Report: assessment deadlinesdeadlines

• The Agency has 90 calendar days since the day of receipt of the Final report to approve or reject the report, or to ask for more documents and information. The deadline is suspended once the integration is requested and proceeds once the information is received.

• The Beneficiary has 30 calendar days to send the requested information or to supply a new final report

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Final report assessment and Final report assessment and financial relapsesfinancial relapses

Final assessement (points) Reduction (%)

Very good 10

0 %

9

Good 8

7

Satisfactory 6

5

Weak 4 25 %

3 50%

Very weak 2 75%

185%

033

Payment proceduresPayment procedures

The second pre-financing may be paid in several instalmentsFull payment of the second instalment may not be made until at least 70% of the first pre-financing payment has been used upWhere the utilisation of the previous pre-financing is lower than 70%, the amount of the second pre-financing payment shall be reduced by the unused amounts of the previous pre-financing (Art. I.4.2 Grant Agreement)

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Lasted project First payment Further payments Final payment

12/18 months 80% within 45 days of the entry into force of the agreement

NA Within 45 days from the approval of the Final Report

24 months40% within 45 days from the entry into force of the agreement

Up to 40% within 45 days from approval of the report on the progress of activities and expenditure

Within 45 days from the approval of the Final Report

How to ensure a sound How to ensure a sound management?management?

•Identify dedicated project coordinator and administrative staff for each partner, transmit name, phone numbers and email addresses to the Lead Partner

•Set up an analytical accounting system expenses/ project progress.

•Regularly keep track of all receipts necessary for the final breakdown. Please send to the Lead partner copies of the financial documents and related proof of payment each 6 months, namely:-1st of April 2011-1st of October 2011 – in order to deliver the Interim Report-1st of April 2012-15th of September 2012 – in order to deliver the Final report

•Refer to the Programme documentation and rely on the National Agency

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Mainstreaming and Mainstreaming and DisseminationDissemination

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AdvertisementAdvertisementEach communication / publication / product related to the project

shall include:

The disclaimer phrase “This project has been funded with support from the European Commission. This publication [communication] reflects the views only of the author, and the Commission cannot

be held responsible for any use which may be made of the information contained therein.”, available in all EU languages at :

http://ec.europa.eu/dgs/education_culture/publ/graphics/agencies/use-translation.pdf

the updated logo of the LLP Programme available at:

http://ec.europa.eu/dgs/education_culture/publ/graphics/identity_en.html

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Project MonitoringProject Monitoring

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Monitoring – Definition and Monitoring – Definition and objectivesobjectives

Analysis of the gap between actions planned and realised

Namely: In progress acquisition of the workplan state of art and

related financial expenditure in order to: Verify on a regular basis the project’s correct

implementation and, if necessary, to adopt preemptive and corrective actions

Acquire information to support general remarks concerning the Programme trend and development

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Monitoring – ToolsMonitoring – Tools

Life Chart of the Project The Chart chronologically registers all the events related to the project

The National Agency is held responsible for the procedure

Cahier de Bord Tool to record the project progress and the related expenditure

Updated by the beneficiary every 6 months

Monitoring questionnaire

The Q. detects information and critical points related to. Project management, partnership, the workplan progress and valorisation activities

The document is due to the National Agency within 3 months since the project ends

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