Follow up and reporting procedures Lead partners seminar 5th targeted call Lydwine Lafontaine
Table of contents Background information Subsidy contract Lead partner principles 1. Progress of the project: individual quality follow up a. Your aim b. The JTS aim c. How do we join our efforts? 2. Reporting procedures: programme rules a. Reporting frequency b. Content and quality of reporting c. Reporting trail d. IPA partners particularities
Table of contents 3. Financial issues FIRST LEVEL CONTROL (FLC) a. Definition of First Level Control b. Role and tasks of controller c. National control systems d. Complementary information ELIGIBILITY OF EXPENSES a. Reference documents (EU / MED / national rules) b. Principles c. Timeframe d. Budget lines e. Supporting documents f. Special attention DECOMMITMENT RULE AUDIT TRAIL
Background information Subsidy contract According to article 3 of the Subsidy Contract: A payment claim must be submitted to the JTS every 6 months Deadlines for submission must be respected (3 months) Payment claim includes: Progress report Certifications of expenditure Annexes: all material produced during the reporting period
Background information Subsidy contract According to articles 4 and 5 of the ERDF Subsidy Contract, the LP: signs the ERDF Subsidy Contract is responsible for the communication towards the program bodies is responsible for the communication within the partnership is responsible for the Progress Reports contents and ensure that all partners provide the necessary information regarding the drafting and eventual needed integrations to the reports receives the payment for all ERDF partners and has to redirect the partners share avoiding any delays (within 1 month). The monitoring role of the LP is essential
1. Progress of the project: individual quality follow up a. Your aim Make a change in the territories (visible, measurable) and make it last: Quality of production and outputs: produce something reliable, relevant, useful Generate outcomes and results: make target public know, have them use productions and outputs, make a difference in their lives Make it last: give a greater visibility, influence deeper, influence larger
1. Progress of the project: individual Support the Lead Partner and its partnership during the lifetime of the project To facilitate its implementation quality follow up b. The JTS aim To meet the objectives of the Project and the objectives of the Programme To ensure a high level of quality, with a result-oriented approach To maximise the impact on the target groups and the territories To ensure capitalisation and durability
1. Progress of the project: individual quality follow up c. How do we joint our efforts? JTS > project Attendance at and participation in project events Inform JTS (bilateral meetings if necessary) - plan ahead Proposals / orientations in the design of deliverables and the preparation of major events. For e.g. Kick off meeting coming soon (up to final conference) Project > JTS Attendance at programme events, contribute to programme network Participate in seminars, workshops (communication, capitalisation) Communicate dates to JTS for publication Use Programme tools for project dissemination and building community (website, social networks, library) Project > projects Capitalise and create synergies at any scale From former and on-going experience Create links with projects sharing a common approach (theme, aims, etc.) invite to events, work on common initiatives (newsletter for example, etc.) BREAK BARRIERS, AVOID ISOLATION AND CONFINEMENT
2. Reporting procedures: programme rules a. Reporting frequency Every 6 months a submission of: Progress report + annexes + list of deliverables (DBB) Payment claim + certifications of expenditure must be submitted to the JTS 5 th call projects Reporting period Starting date to 30 th June 1 st July to 31 st December Date of submission to the JTS 30 st September 31 st March Art: 3.3 of the Subsidy Contract.
2. Reporting procedures: programme rules b. Content and quality of reporting Progress report + annexes + list of deliverables (DBB) signed, comprehensive (+ part 4.1. publishable information) transparent, clear, honest supported with annexes: productions, list of signatures, pictures in case of events, agendas, list of participants, etc. in an organised way, easily identifiable (+ list of deliverables + publishable to be provided in.xls format) Payment claim + certifications of expenditure must be submitted to the JTS - signed, stamped, accurate, etc. - all related certificate, copies are sufficient Send full version in digital form and hard copies (provide DVD if necessary. In any case send DVD with all deliverables at the end of the project).
2. Reporting procedures: programme rules c. Reporting trail 1/2 1 2 3 4 Each partner enters activities and expenditures on PRESAGE CTE Lead Partner validates the other partners expenses on PRESAGE CTE FLC of each partner (centralised or decentralised system) Validates the eligible expenditure Generates a First Level Control Certificate on PRESAGE CTE In Spain and Portugal: the FLC s certificate has to be validated by the responsible National Authority PP LP FLC/PP NA/FLC /PP 5 The Lead Partner gathers all the certificates and produce a payment claim + progress report on PRESAGE CTE LP 6 Submission to the JTS within the deadlines mentioned in the Subsidy Contract LP
2. Reporting procedures: programme rules c. Reporting trail 2/2 The JTS verifies the report: Conformity against application form 7 Conformity of validations by controllers against national systems Transfers to Managing Authority JTS/LP/ PP/FLC 8 9 The Managing Authority perform an additional control and ensures the precision of the payment claim, then communicates it to the Certifying Authority The Certifying Authority draws up payment order to the Lead partner MA/CA CA/LP 10 The Lead partner transfers funds to the ERDF partners LP
2. Reporting procedures: programme rules c. IPA particularities IPA partners will be able to make a request for advance payment, max 10% of allocated IPA budget Each IPA partner will sign a specific Subsidy Contract All their expenditures should be calculated in The Certifying Authority will draw up payment orders directly to the IPA partner concerned This system will be in place after the signature of the Financing Agreement between the competent Authorities of each IPA country in question, the European Commission, and the Managing Authority of the MED Programme.
3. Financial issues - FLC a. Definition of First Level Control Checks to be performed each time before submitting a payment claim in accordance with article 16 of Regulation 1080/2006 for ERDF partners & 108 of Regulation 718/2007 for IPA partners The reality of the declared expenditure The delivery of the products and services co-financed (as described in the approved Application Form) The soundness of the declared expenditure The compliance of such expenditure with Programme, EC and national rules Aims at checking the legality and the regularity of the expenditures declared by each partner Covers 100% of all declared expenses Administrative verifications; on-the-spot checks are recommended at least once during the project lifetime
3. Financial issues - FLC b. Role of tasks of the controller Shall ensure that activities and expenses are completed according to the national and Community eligibility regulations Shall check: All of the invoices, proofs of payment and any other justification document for declared expenditure The accounting precision of the declared expenses The mechanisms in place to avoid double funding Shall fill in and sign the First Level Control certificate trough PRESAGE CTE: First Level Controller Commitment Checklist Shall carry out checks within the deadlines set up in the Subsidy Contract Delays impede constant cash-flow and have a negative impact on financial performance of the projects and the programme
3. Financial issues - FLC c. National control systems 1/2 Each Member State (MS) / IPA Country: Has set up a First Level Control system Has determined the selection mode for controllers Each partner: must refer to the control system of the State where it is located must follow the information provided by the national bodies on the selection procedure
3. Financial issues - FLC c. National control systems 2/2 Centralized System ALBANIA* BOSNIA HERZEGOVINA* CROATIA* GREECE MALTA MONTENEGRO* SLOVENIA UK (Gibraltar) * This system will be in place after the signature of the Financing Agreement between the competent Authorities of each IPA country in question, the European Commission, and the Managing Authority. Decentralized System CYPRUS FRANCE ITALY SPAIN** Portugal** ** National validations must be obtained before submitting the payment claim. This must be taken into account in timetable for submitting claims.
3. Financial issues - FLC d. Complementary information 1/2 Donwload programme reference documents and guidance sorted by project phase
Example: Downloads in IMPLEMENTATION 3. Financial issues - FLC d. Complementary information 2/2
3. Financial issues - Eligibility of expenses a. Reference documents EU / MED / national rules 1/4 EU Regulations General Framework MED Programme Specific rules National rules
3. Financial issues - Eligibility of expenses a. Reference documents EU regulations 2/4 Council Regulation (EC) No 1083/2006 General Regulation + related amendments: (EC) No. 1341/2008 - (EC) - No. 85/2009 - (EC) No. 284/2009 Art. 56 Council Regulation (EC) No 1080/2006 ERDF Regulation + related amendment: (EC) No. 397/2009 Art. 7; Art. 13 Commission Regulation (EC) No 1828/2006 Implementing Regulation + related amendments (EC) No 846/2009 Art. 48 to Art. 53 Commission Regulation (EC) No 1085/2006 establishing an Instrument for Pre-Accession Assistance (IPA); Commission Regulation (EC) No 718/2007 Implementing Council Regulation + related amendments (EC) No 80/2010
3. Financial issues - Eligibility of expenses a. Reference documents EU regulations 3/4 Directive 2004/18/EC on Public works contracts, public supply contracts and public service contracts + amendments: Directive 2005/51/EC; Directive 2005/75/EC Commission Decision 2034 from 2007 defining Rules and procedures for service, supply and works contracts financed from the general budget of the European Communities for the purpose of cooperation with third countries Practical Guide to contract procedures for EC external actions (PRAG)
3. Financial issues - Eligibility of expenses a. Reference documents National rules 4/4 Each Member State defines specific rules on eligibility of expenditures - national manuals Project partners and first level controllers should always refer to relevant rules on eligibility defined at national level In case of doubt please contact NCP + JTS MED
3. Financial issues - Eligibility of expenses b. Principles Necessary to carry out project s activities/objectives Clearly related to activities foreseen in the approved AF Incurred during eligible periods (preparation-implementation-closure) Incurred within MED area. outside MED area but inside EU territory: duly justified and approved outside EU territory: approved case by case Real: actually borne directly by PPs and supported by accounting documents justifying incurred expenses/payments (invoices, pay rolls.) Supported by document attesting administrative procedures adopted (tenders, contract, ). Respect EU/Programme relevant rules Yes
3. Financial issues - Eligibility of expenses c. Timeframe Preparation costs 1/2 Engaged and invoiced between 1st January 2007 and date of submission of final AF Related payments within 1 month after the date of submission of final AF Link with preparation: direct and demonstrable Limit: 30.000 Claimed: through 1 PR. Included in a specific certification of expenditure
3. Financial issues - Eligibility of expenses c. Timeframe Implementation/closure costs 2/2 Engaged, invoiced and paid out between: The day after the submission of complete AF Within date of project closure In case costs cannot be paid out within the date of project closure: paid out within two months after project closure Closure administrative expenditures (First Level Control and staff costs): may be engaged and paid out within two months after project closure EXCEPT for projects ending June 30 th 2015 Finalise documents to be submitted to FLC asap Do not wait the end of the reporting period
3. Financial issues - Eligibility of expenses d. Budget lines Staff Durable goods Consumable goods Travel and accommodation Services External expertise Promotion, information and publications Overheads Other First level control guidelines and fact sheets providing detailes information on: background information, guidance, supporting docs allocating costs on budget lines accounting
3. Financial issues - Eligibility of expenses e. Supporting documents 1/2 Staff List of personnel working on the project Employment/labour contracts or internal service orders Payslips Timesheets Evidence of the calculation method to calculate the hourly cost Proofs of payments of: salary, taxes, security schemes Durable/Consumable goods, services, external experts, promotion Evidence of compliance to public procurement rules at EU and national level: evidence of selection process Contracts Invoices Durable goods: evidence of the depreciation plan adopted for each element when depreciation applies Proofs of payment
3. Financial issues - Eligibility of expenses e. Supporting documents 2/2 Travel and accommodation List of personnel working on the project Agenda/programme of meeting/event Signed mission request/authorisation Travel invoices original tickets and all other original documentary evidence (i.e. boarding pass, invoices/other equivalent documents, in the case of e- tickets an e-mail with the booking number serves as a proof etc.) Proofs of payment Use of own car: reimbursement request through mileage sheet, according to national procedures and agreed values
3. Financial issues - Eligibility of expenses f. Special attention Public procurement VAT Depreciation Ineligible expenses (Representation expenditures, Interest on debt, Fines, Financial penalties, Expenditure on legal disputes, Exchange losses, Expenditures held outside the eligible period, Not supported by the relevant public procurement procedures, Lump sum, general estimations, unjustified calculations, VAT which is recoverable, Not justified by project s activities/objectives, Not supported by relevant documentation Revenues
3. Financial issues Decommitment rule 1/2 According to article 3.3 of the Subsidy Contract: «If the LP is claiming a payment for a six month period of which the amount of ERDF claimed is below the above foreseen amounts, there is no guarantee that the undeclared ERDF amount is available for the following periods, in regard to the art.93 of Regulation (EC) 1083/2006 (decommitment rule)» According to article 3.8 of the Subsidy Contract: «If the ERDF annuity of the MED Programme is decommitted by the Commission following the Regulation (EC)1083/2006, the authorities of the aforesaid programme reserve the option to cancel the ERDF subsidy related to expenses not incurred in due time.»
3. Financial issues Decommitment rule 2/2 If the Programme is not able to report the target of the relevant year, it will lose the ERDF not reported. This reduction will impact on the projects. Projects not respecting their contractual commitments could see their ERDF budget reduced. Selection Committee will decide the method of application of the decommitment rule.
3. Financial issues Audit trail 1/2 Partners must ensure that all accounting documents linked to the project are available and filed separately Original copies of documents to be kept by each partner Until December 31 st 2021 Later if requested at national level The Lead partner is responsible for the implementation of suitable audit trail overview Copies of documents to be sent to Lead partner (e-version) recommendation
3. Financial issues Audit trail 2/2 Partner must have a mechanism in place to avoid double funding (= same expenditure reimbursed by different sources of funding) In order to ensure a clear identification of the expenditures: Opening of a specific bank account for the project payments (or a separate project code); Recording of the costs in expenditure lists by budget line, component and reporting period; Noting the allocation (project title and project number) directly on the invoices/equivalent documents
Thank you for your attention Joint Technical Secretariat MED PROGRAMME www.programmemed.eu