First Level Control. Thomas Grass, Alois Zink Contracting a Project 1

Transcription

1 First Level Control First Level Control Thomas Grass, Alois Zink Thomas Grass, Alois Zink Contracting a Project 1

2 Independent First Level Control of projects financed by the EU SF 100% control of project implementation and project expenditure based on the full documentation observation of the EU and national regulation issuing the Declaration on verification of expenditures Contracting a Project 2

3 Important aspects for the First Level Control The approved amount of grant for the project must NOT increase Separate accounting must be ensured for the project Documentation must be stored until 31 December, 2022 for possible controls Contracting a Project 3

4 Who is authorised to control? Control Organisations National First Level Control bodies Managing Authority Certifying Authority Audit Authority (Bundeskanzleramt, Abteilung IV/3) Group of Auditors: Bundeskanzleramt, Abteilung IV/3 Kormányzati Ellenőrzési Hivatal (KEHI) European Commission Contracting a Project 4

5 Other control organisations European Court of Auditors Österreichischer Rechnungshof Landesrechnungshof Állami Számvevőszék (State Audit Office of Hungary) Contracting a Project 5

6 Consequences of negative output of the First Level Control s s check The problematic part of expenditure will not be validated With other words: the assistance for that expenses will not be reimbursed either from national or ERDF sources. The reasons for no validation Non-eligible expenditures Not all documents are submitted on time (this part of the expenditure can be submitted in the next report) Incomplete or otherwise not transparent documentation Other irregularities (e.g. public procurement, publicity related problems) Contracting a Project 6

7 Consequences of negative output of the Audit Authority or the Certifying Authority check Ex post denial of non-eligible expenditure on project level Repayment of the ex-post denied expenditure on project level Contracting a Project 7

8 Consequences of negative output of the European Commission check Non-eligible expenditure will be summarised on programme level Repayment of the overall sum from the Member State with interests on interest Member State will reclaim the funding from the beneficiaries Correction of system errors Contracting a Project 8

9 Documentation / types of evidence for the eligibility of expenditures Contracting a Project 9

10 Personal (staff) expenditures Personal costs are allocated to the project on the basis of real expenditures Personnel can be accounted to the project 100% or part time Basis for the accounting of personal expenses to the project: Annual wage-account of the project-related personnel Record of total working time (annual performance record) Record of project related working time incl. detailed documentation Employment contract or other similar documents Payment documentation Individual bonuses are not eligible Contracting a Project 10

11 Overhead expenses Overheads are allocated to the project on the basis of real expenditure 100% documentation control Transparent allocation methodology approved by the FLC is necessary Payment documentation Contracting a Project 11

12 Travel expenses and per diems Travel expenses and per diems are accounted generally according to relevant national regulation and according to internal organisation rules, Per diems must not exceed the relevant EU standards Documentation: Travel invoices paid directly by the company/institution Reimbursement request, with the relevant documentation required according to the national rules or institutional procedures, related to the expenses incurred directly by the person who travelled When private cars are used, reimbursement request through mileage sheet, according to national rules or institutional procedures and using agreed values Supporting documentation providing evidence of participation in the activity involved Contracting a Project 12

13 Catering expenses Only if laid down in the approved budget public event with Invitation Participation list Proof of public character In line with publicity rules Alcoholic drinks are not allowed Contracting a Project 13

14 Used equipment no national or EU funding must have been used to buy that equipment within the past seven years that the price of the equipment must correspond market prices and must not exceed the price of similar new equipment the equipment must comply with the corresponding technical requirements and regulations if applicable: evidence that public procurement has been respected Contracting a Project 14

15 Revenues in the project Declaration about the revenues in written form Planned revenues must be included in the budget (part of the ERDF contract) Always to be deducted from the total expenditure of the project If revenues arise above the plan it must be reported and deducted from the total expenditure of the project Sponsoring contribution Voluntary donations Received penalties from supplier Contracting a Project 15

16 Value Added Tax Eligibility for VAT refund is declared in annex of the application form VAT is eligible expenditure only if it is paid by the project partners Take care of special cases like e.g. reverse charge VAT in HU Contracting a Project 16

17 Exchange rate Contracts are in Euro, also the statement on expenditures must be submitted in Euro Mainly the Hungarian beneficiaries are concerned, but partly also the Austrian ones AT project partners: accounting on the basis of daily exchange rate HU project partners: for the exchange of Ft costs the monthly exchange rate of the ECB must be used (last month of the reporting period): seaction=home&language=en Contracting a Project 17

18 Tips to minimise the exchange rate loss Open a Euro based bank account for the ERDF grant Contract suppliers in Euro, if possible Plan the exchange rate loss, make reserves for that purpose Contracting a Project 18

19 On the spot checks At least once every project has to be checked on the spot Audit is also possible beyond the implementation period, until the end of 2022 Some projects will be checked more than once Projects for on the spot check will be selected by using a risk analysis methodology Contracting a Project 19

20 Contacts of the First Level Control Burgenland: Thomas Grass RMB - Regionalmanagement Bgld GmbH Technologiezentrum Eisenstadt, A-7000 Eisenstadt, Marktstraße 3 Niederösterreich Alois Zink Amt der Niederösterreichischen Landesregierung A-3109 St. Pölten Landhausplatz 1 Haus 16, Zimmer Contracting a Project 20

21 Contacts of the First Level Control Steiermark: Margit Feiertag-Tantscher, Amt der Steiermärkischen Landesregierung Abt. 16. A-8010 Graz, Stempfergasse 7 West Transdanubia: Péter Virágh, Head of Office VÁTI Nonprofit Kft. West Transdanubian Regional Office Verő J. u. 1., Sopron H-9400 Wien: Ingrid Real Amt der Wiener Landesregierung MA 27 Dezernat Ausgabenkontrolle A-1082 Wien Schlesingerplatz Contracting a Project 21