RESINT Project Administration and Financial Management

Kick-off Meeting Bologna, 15 April 2014

Summary

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Budget Breakdown Structure Partners’ Budget and how it is calculated Cost categories Supporting documents for Eligible Direct Costs Amendment: change to the budget breakdown Financial Reporting

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1. Budget breakdown structure

A. Staff costs B. Operational costs:

B1. Travel and Subsistence € 290.435

€ 242.720

€ 194.730

B2. Equipment B4. Other costs

C. Indirect costs TOTAL COSTS (A+B+C)

Each partner has to report total costs, and not only the Commission Grant € 20.000

€ 27.990

€ 37.083

€ 570.238

7% of direct costs

covered by

Commission Grant Own Contribution € 392,238 € 178.000

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1.Budget breakdown structure Eligible period:

1/10/2013-30/9/2015

TOTAL COSTS € 570.238

What we have to demonstrate Commission Grant € 392,238 68,78% of total costs of the project 1/10/2013 Progress Report 31/10/2014 November 2013 1 st Payment by EU € 156.895,20 40% of the GRANT December 2014 ( ± 2 months after the progress report) 2 nd Payment by EU € 156.895,20 40% of the GRANT Final Report 30/11/2015 January 2016( ± 2 months after the final report) Balance by EU € 78.447,60 20% of the GRANT 4

2.Partners’ budget Each partner has its own budget for the implementation of the project activities, which has been sent with the partnership agreement; The budget is composed of the Grant from the EU and the co-financing of the partner institution; Budget categories are:

     Staff Costs Travel and Subsistence costs Equipment Other costs Indirect costs 5

3.Cost categories: staff costs

 Staff costs are allocated according to the foreseen workload of the different partners, using actual costs up to EU staff costs ceilings for the different Country.

 Staff categories are: Cat1: Manager; Cat2: Researcher/teacher/trainer; Cat3: Technical; Cat4: Administrative.

 From the beginning each partner has to identify the persons to be involved in the project as manager or researcher, etc.

 Each partner has to respect the allocation of working days (see each partners’s detailed budget) among categories or at least within the total working day 6

Staff costs

Who is eligible?

 Statutory staff: a person who has either a permanent or a temporary employment contract with the partner  Temporary staff: a person recruited through a specialised external Agency

How to calculate the staff daily costs?

 Staff costs: annual gross costs = actual salaries + social security charges (and other statutory costs included in the remuneration). Non-statutory costs (like bonuses, car leases, expense account schemes, incentive payments or profit-sharing schemes) are excluded.

 The annual gross cost must be divided by the number of working days to obtain a daily staff cost. The number of working days is defined as follows: 365 days minus legal and public holidays. Real daily staff costs have to be reported; they cannot exceed the maximum rates fixed by EU

Example (based on 220 working days per year):

For Ms. X, the annual cost (21.632,60 EUR) is composed of the gross salary (16.000 EUR) + social security charges. We can calculate the daily cost as 21.632,60 ÷ 220 working 7 days = 98,33 EUR/day

Supporting documents staff costs

The supporting documents to be provided for staff costs will be confirmed after the discussion with financial auditor.

Usually documents required are:

 Time sheets in order to report the number of working days.

 Official payrolls and proof of payments for salaries and social security charges.

 Document explaining the internal policy on salaries and the calculation of daily cost.

3. Cost categories:Travel costs

Travel costs are merged with “subsistence costs” in each partner’s budget, but have specific reporting rules.

 May be claimed only for journeys directly connected to specific and clearly identifiable project-related activities  For each journey = all costs and all means for travelling from the point of departure to the point of destination (and vice versa), may include visa fees, travel insurance and cancellation costs.

 Reimbursement must be based on actual costs, independently of the transportation 

How to calculate the Travel costs so that these are el

Choose the cheapest transportation  Tickets, boarding cards and any supporting documents certifying the travel costs have to be provided  Proof of payments (bank statements) 9

3. Cost categories: Subsistence costs



Subsistence costs are merged with “travel costs” in each partners’ budget, but have specific reporting rules.

 They cover accommodation, meals and local transportation.  Reimbursement must be based on actual costs (receipts) or daily allowance basis in accordance with the existing internal rules of organisation partners.

 Expenses must respect maximum rates published in the ceilings sheet (The rate to be applied is the one of the destination country – where accommodation costs are incurred. EX Italy maximum daily rate 247€).

 If you calculate the subsistence costs on a actual cost basis, following the internal rules of your institution, please don’t charge lunch costs paid by the hosting institution ("double-charging" of the same meals will be rejected)  A full day without an overnight stay may be allowed with a pro rata reduction for accommodation (50% of maximum rate).

Tickets (local travel: bus, train, taxi), invoices (Hotel, restaurants); or Declaration of daily allowances (claimed) – subsistence expense claim form, proof of payments (bank statements) have to be provided.

3. Category cost:Equipment

 Purchase, rent or lease of equipment (new or second-hand), including the installation, maintenance and insurance costs, are considered eligible costs  Equipment must be procured in accordance with the rules defined in the grant agreement.

 Only the portion of equipment’s depreciation corresponding to the duration of the project and the rate of actual use for the purposes of the project may be taken into account.

 The pro rata charged for computer equipment and internet connection should reflect the percentage of use for the purposes of the project.

 All equipment related to the administration of the project and all equipment purchased before the start of the project s covered by indirect costs.

 The total reported expenses for equipment may not exceed 10% of the total eligible direct costs reported for the project.

Examples of supporting documents: contracts and invoices, proof that the payments have been made by the partner and are recorded in his accounts.

3. Category costs: Other costs

Eligible Other Costs  Include only activities which are specific and necessary for achieving the goals of the project, which are not included within the other available categories  Costs arising directly from requirements imposed by the grant agreement and from the implementation of specific actions, or of products/results of the project.

 For instance:  Dissemination/printing costs,  Translations,  Organisation of seminars (where the seminar is foreseen as a product/result and when task-related costs are easily identifiable),  Conference fees, hiring of conference halls, etc Examples of supporting documents: contracts and invoices, proof that the payments have been made by the partner and are recorded in his accounts.

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4. Supporting documents for Eligible Direct Costs

Summary – Supporting Documents of all direct cost categories 

Staff costs



Document explaining the internal policy on salaries and the calculation of

the daily cost rate (policy used for all staff members no matter if they work on the project or not);  Time sheets signed by both the worker and the responsible of the organisation mentioning name, function and tasks fulfilled, reference to the work programme’s activities, number of hours per day or days per month allocated to the project;   Official payroll document which allows to check the amounts paid and social security charges duly paid; Proof that the salaries and social security contribution recorded in the accountancy have been paid by the partner to the authorities.

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4. Supporting documents for Eligible Direct Costs

Summary – Supporting Documents of all direct cost categories 

Travel costs

   Tickets (plane, train, bus, etc.) and invoices (travel agency); Boarding cards; For car journeys: declaration stating the calculation method with the unit  rate and number of units, dates and names and activities concerned; List of participants duly signed with clear identification of the activity/purpose of the trip, dates, names and functions of the participants in the project (i.e. partner, expert, subcontractor);  Proof that the payments have been made by the partner and are recorded in the accountancy (bank statement) 

Subsistence

  Tickets (bus, train, taxi – local travel), invoices (Hotel, restaurants); Or Declaration of daily allowances (claimed)   Proof of attendance and overnight accommodation is required to substantiate the costs declared Proof of payments (bank statement)

4. Supporting documents for Eligible Direct Costs

Summary – Supporting Documents of all direct cost categories 

Equipment costs

 

Contracts and invoices;

Proof that the payments have been made by the partner and are recorded in the accountancy (bank statement) 

Other costs

 

Contacts and invoices;

Proof that the payments have been made by the partner and are recorded in the accountancy (bank statement) The original documents don’t have to be sent to Bologna, only copies! But Partners shall keep a record (originals!) of any expenditure incurred under the Project and all proofs and related documents for five years after the final payment (balance) from European Commission.

Eligible Indirect costs

 The eligible indirect costs of the project are a flat rate amount set at a maximum of 7% of the total amount of eligible direct

costs

 The corresponding costs need not to be justified by accounting documents  Examples of indirect costs are:  All costs for equipment related to the administration of the project (e.g. PCs, portables, etc.)  Communication costs (postage, fax, telephone, internet, mailing, etc.)  Infrastructure costs (rent, electricity, etc.) of the premises where the project is being carried out  Consumables, paper, office supplies, photocopies 16

Ceilings for staff and subsistence costs

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5. Amendment: change to the budget breakdown

 Adjustments within “Operational costs” are allowed without any ceilings (equipment may not exceed 10% of the total eligible direct costs)  Adjustments between staff costs and operational costs are allowed without any formal amendment request to the EU Commission provided that the transfer between items does not exceed: 10% of the amount of the increased category of costs for which the transfer is intended  However, any change to the partner budget breakdown must be requested and approved by the University of Bologna before the change takes effect. Bologna, as coordinator, needs to monitor all changes of the total budget in order to not exceed 10% 18

6.Financial Reporting

 Each partner is requested to report the activities carried out and the expenses incurred, using the appropriate forms which will be sent by the University of Bologna together with a reporting kit.

 Deadlines for partners (as provided for by the Partnership Agreements):  Partner’s Progress Report: by 19

th

(submission of Progress Report by 31 st

of September 2014

October 2014)  Partner’s Final Report: by 20

th

Final Report by 30 th October 2015 (submission of November 2015).

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6. Financial Reporting

 All documents relating to the project financial reporting should be organised from the start of the project and all accounting documents should be duly classified  Monitoring missions and ex-post controls can be carried out by the EACEA at any time during the implementation of the project or up to 5 years after the final payment  External auditing is mandatory according to new LLP rules.

Costs which are not duly justified by adequate supporting documents will be rejected.

Useful link:

Guidelines for Administrative and Financial Management and Reporting 2013 (Annex IX/VII of the Grant Agreement)

http://eacea.ec.europa.eu/llp/beneficiaries/2013/reportin g_lifelong_learning_2013_en.php

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For further information you may contact

Federica Fantini

Alma Mater Studiorum - University of Bologna Forlì Campus

[email protected]

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Thank you for your attention!

Francesca Regoli

Alma Mater Studiorum - University of Bologna

Department of Management [email protected]

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