Transcript 1st level financial controls

1st level control system
in Latvia
13.10.2008.
State Regional Development Agency
1st level control system in Latvia is
centralized – responsible authority
State Regional Development Agency
Territorial Cooperation Project
Control Department.
Reporting process (1)
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According to the Programme Manual no later
than 1 month after the end of each reporting
period Project Partner submits PP report to
the 1st level control bodies.
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1st level controllers will not send letters with
deadlines of submitting progress reports to
the each Project Partner.
Reporting process (2)
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Project Partner has to submit to the 1st level
controllers:
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PP Report;
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Subsidy contract;
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Application form;
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Partnership agreement;
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Costs sharing agreement (if relevant);
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All amendments of above mentioned documents;
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Verified copies of documents related to the project
implementation (invoices, payment orders,
contracts, time sheets, employees pay slips,
participant lists, etc.).
1st level Control
1st level financial control is divided into
two parts:
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Control of project progress report (100%) –
includes assessment of the reported
expenditures (examination of 6 months period
reports);
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On-the-spot checks are carried out at least
once during the project implementation time
(before issuing the last Confirmation).
On-the-spot-checks
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During on-the-spot-checks the following
issues will be controlled:
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existence of purchased goods and received services
on the place of project implementation;
originals of all the project related documents;
separate accounting system;
public procurement documentation;
publicity requirements;
double financing.
Pay attention
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Expenditure must be directly linked to the
Project
Expenditure must be economically
reasonable
Expenditure is reported in the same
Reporting period as it was paid
All the changes in project should be agreed
with JTS
Separated accounting system must be
established for the project
Pay attention
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Personnel costs:
 are eligible on the basis of an employment contract
 employment contract includes clearly defined job
responsibilities and workload
 job responsibilities are clearly segregated between
principal work and work for the project (no
overlapping)
 worked hours and accomplished activities for the
Project are listed in the time sheets
 worked hours have to be measurable with activities
carried out during respective month
 overtime work is eligible only in well justified cases
(project related seminars, events, etc.)
 vacation pay is eligible proportionally worked time
for the project
The most frequent
mistakes (1)
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Documents are not completed in accordance
with national legislation
Public procurement is not observed
Requirements regarding publicity is not
observed
Some project implementation verifying
documents are missing
Project Progress Report includes activities not
relevant to the project Application Form
The most frequent
mistakes (2)
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Equipment is purchased during the last
milestones
Purchasing of stationery is unjustified (e.g.,
purchasing 100 packages of paper without
reasonable explanation)
Calculations of indirect costs are missing
Lists of participants and protocols of seminars
are missing
Business trip reports and route sheets are
missing
Exchange of information
with Project Partners
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Guidelines for Project Partners will be
elaborated and placed in the SRDA web site
by the end of this year
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Questions concerning project implementation,
reporting and SRDA answers will be placed in
SRDA web site
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Info within seminars
Thank you for your
attention