Transcript Kick Off Meeting with Beneficiaires

Financial
Reporting for Grant
Contracts
Delegation of the
European Commission
to Russia
General Conditions
22.08.2006
1
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)
Delegation of the
European Commission
to Russia
2
General Conditions
The Beneficiary alone shall be
accountable to the Commission for
the Implementation of the
Operation.
(Annex II, art.1)
Delegation of the
European Commission
to Russia
The Beneficiary undertakes to
ensure that the conditions imposed
upon him under this Contract also
apply to all partners and
subcontractors involved.
3
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)
Delegation of the
European Commission
to Russia
4
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
Delegation of the
European Commission
to Russia
5
ADVANCE PAYMENT
Request for Advance Payment should be
prepared in accordance with template.
The following information is obligatory for the
Request for Advance Payment:
•
•
•
•
•
Delegation of the
European Commission
to Russia
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.
6
ADVANCE PAYMENT
Request for Advance Payment
should be dated and signed by
the empowered representative of
your organisation
It must be an original
Delegation of the
European Commission
to Russia
7
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
Delegation of the
European Commission
to Russia
8
INTERIM PAYMENT
Grants 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.
Delegation of the
European Commission
to Russia
9
INTERIM PAYMENT
Request for Interim Payment
should be prepared in
accordance with the
requirements indicated above
for the advance payment and
Annex V template.
Delegation of the
European Commission
to Russia
10
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:
Delegation of the
European Commission
to Russia
11
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
Delegation of the
European Commission
to Russia
12
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
Delegation of the
European Commission
to Russia
13
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
Delegation of the
European Commission
to Russia
14
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
Delegation of the
European Commission
to Russia
15
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.
Delegation of the
European Commission
to Russia
16
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
Delegation of the
European Commission
to Russia
17
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.
Delegation of the
European Commission
to Russia
18
INTERIM PAYMENT
•
•
Delegation of the
European Commission
to Russia
4. Copies of supporting
documents for Budget line 3
(Equipment and Supplies)
Copy of invoice/Copy of invoicefacture
Copy of the payment document
(payment order or cash receipt)
19
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
Delegation of the
European Commission
to Russia
20
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
Delegation of the
European Commission
to Russia
21
Calculation of the Final Payment
In the contract:
Delegation of the
European Commission
to Russia
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 €
22
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 € )
Delegation of the
European Commission
to Russia
5.000,00 €
23
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 etc
7. 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
Delegation of the
European Commission
to Russia
24
Final Financial Report
1.Summary Table –
Final Financial Report
EC + Beneficiary's + Partner(s)’ contribution
•
•
•
Delegation of the
European Commission
to Russia
•
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
25
implementation period (SC, art.2)
Final Financial Report
2. EXPENDITURE VERIFICATION
REPORT
The purpose of the expenditure
verification report is to certify the
amount of your report.
Delegation of the
European Commission
to Russia
26
Final Financial Report
EXPENDITURE VERIFICATION REPORT
Delegation of the
European Commission
to Russia
•
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
27
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.
Delegation of the
European Commission
to Russia
28
Final Financial Report
3. Summary tables for Fees and Per Diems –
PER DIEMS
1.
2.
3.
The Per Diem can be paid only to the staff member or
expert of the project
Per Diems can be paid only for each night spent on
mission
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
4.
Delegation of the
European Commission
to Russia
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
29
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.
Delegation of the
European Commission
to Russia
30
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
•
Delegation of the
European Commission
to Russia
Copies of tickets (incl. boarding pass
for the air ticket) should be kept and
presented upon the request
31
Final Financial Report
5. Copies of supporting documents for Budget line 3
(Equipment and Supplies)
Delegation of the
European Commission
to Russia
•
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
32
with the summary table and easily readable
Final Financial Report
Rule of origin
Our 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)
Delegation of the
European Commission
to Russia
33
Final Financial Report
Transfer 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)
Delegation of the
European Commission
to Russia
34
Final Financial Report
Procurement 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
Delegation of the
European Commission
to Russia
35
Final Financial Report
Procurement 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
Delegation of the
European Commission
to Russia
36
Final Financial Report
6. 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.
Delegation of the
European Commission
to Russia
37
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
Delegation of the
European Commission
to Russia
38
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
Delegation of the
European Commission
to Russia
39
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
Delegation of the
European Commission
to Russia
40
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 etc
7. 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
Delegation of the
European Commission
to Russia
Second bound copy of the whole package of documents
41
Final Financial Report
The Commission
may request additional
information at any time;
that information must be
supplied within 30 days of
the request.
Delegation of the
European Commission
to Russia
42
Amendments to the Budget
1) 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:
Delegation of the
European Commission
to Russia
•
Major changes e.g. budget change > 15%
•
Prior approval – NOT retroactive
(Annex II, art.9)
43