Creative Europe Sub-programme Culture Financial management

Transcription

1 Creative Europe Sub-programme Culture Financial management 10 November 2014 Sandra Delespesse & Maria-Paz Benito 1

2 Content Financial tasks Eligibility of costs Important documents Checks, audit and evaluation Tips 2

3 Financial tasks 3

4 Financial tasks Follow the budget Establish the Financial Statement Fill in Financial Statement after each activity Keep good accounting records Ensure availability of supporting documents One person responsible for the financial part 4

5 Eligibility of costs 5

6 Eligible costs To be eligible, costs must be: Foreseen in the estimated budget Incurred by a beneficiary In relation to an activity taking place during the eligibility period Identifiable and verifiable Compliant with tax and social legislation requirements Necessary, reasonable and justified Paid 6

7 Indirect costs Only eligible if foreseen in the budget max. 7% of total eligible direct costs in connection with the project no need of details recorded in respective accounting systems traceable and verifiable 7

8 Global invoices Mainly for reimbursement of third party costs: detail of the activities / services carried out copy of each individual invoice proof of payment If financial contribution from third party deducted from the total amount of expenses incurred 8

9 Budget amendment Requested on time Use the correct format Also related to income side Rules: Chapter variation >10% of total eligible estimated budget Grant & total eligible budget unchanged 9

10 Budget amendment example Transfer allowed: 10% of total eligible costs: ,50 10

11 Ineligible costs Bank charges - transfers from Agency to beneficiary Exchange losses Costs already claimed in another EU project Excessive expenditure Contributions in kind Deductible VAT Provisions for losses or debts 11

12 Important documents 12

13 Important reference documents Guidelines Call for Proposal Project Application Grant Agreement/Decision + annexes Guidance notes on the Report of Factual Findings on the Final Financial Report 13

14 Financial documents Financial Statement In EURO Overview of the budget in receipts and expenditure List of invoices List of income List of procurement and sub-contracts >

15 Financial documents List of incomes: listed in the final Financial Statement verified by the auditor self-financing in estimated budget is secured self-financing must be entered in the Financial Statement (as a minimum) Can be covered by ADDITIONAL financial contributions from private or public sources 15

16 Financial documents Report of Factual Findings on the Final Financial Report has two types: Type 1 - grants between EUR and EUR Type 2 - grants = or > EUR Supporting documents justifying a sample of expenses Grants = < EUR

17 Report on factual finding on the final financial report General information Choose the correct auditor Engagement letter English, French or German One audit per project 17

18 Report on factual finding on the final financial report General information Auditor allowed to perform the audit Any accountant recognized as auditor under national legislation Independent from beneficiary No conflict of interest For public bodies: Competent Public Officer 18

19 Report on factual finding on the final financial report General information Competent public officer Not involved in drawing up the final financial statement Not hierarchically dependent on the officer responsible for the final financial statement Meet at least one of the following competency criteria: professional experience or qualifications 19

20 Report on factual finding on the final financial report General information Supporting documents from each co-beneficiary (originals or certified copies) Accessible at beneficiary's office Only beneficiary/coordinator s accounting system and records are checked by the auditor 20

21 Report on factual finding on the final financial report General information Type I < Grant </= Pre-set checks Type II Grant > Eligibility check 100 % of the direct costs declared Between 70 % and 85 % of the costs declared 21

22 Report on factual finding on the final financial report General information Errors: Discrepancies/exceptions = corrections in the final Financial Statement + remarks in the report A doubt = remark in the report Agency remains in charge of taking decisions on the eligibility of costs declared in the final Financial Statement 22

23 Checks, audit and evaluation 23

24 Technical and financial checks Checks and audits related to the use of the Grant Interim or final evaluation of the impact of the action Carried out by: Agency and/or Commission staff Authorised external auditor 24

25 Obligation to keep documents Keep: All original documents, including accounting and tax records Bank statements All documents for: a period of 5 years for grants > EUR a period of 3 years for grants < or = to EUR

26 Obligation to provide information on-the spot visits Coordinator or beneficiary shall: Provide all supporting documents Clarify any information requested Access to the sites and premises If not, the costs will be considered as non-eligible! 26

27 Tips 27

28 Check out during project life Do I need to submit A financial guarantee An interim report An audit report type I or type II The tendering procedure An amendment 28

29 Check out before submitting Final Report Do I have All supporting documents Proves of payment Applied the correct exchange rate Used the correct format Documents signed 29

30 Any question? 30