3. Kick-off TOJ - Final report

DG Competition Training of Judges programme Kick-off meeting - CFP 2014

The final report: something to think about

at the beginning of the implementation

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Content

• Final implementation report

• Final narrative (technical) report

• Final financial statement

• Final assessment by the Commission

• Ex-post Audit

• Eligible costs

• Budget headings

– Supporting documents

– Examples of reasons for rejection of costs

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Final implementation report (1)

• Who should prepare it?

• The beneficiary/coordinator

When should it be submitted?

• within two months of the end of the project as indicated in Article I.2.2 of the grant agreement,

• in two copies + one electronic copy

• signed and dated by the legal representative of the beneficiary.

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• Consists of two parts:

1. Narrative part (Final technical report)

2. Financial part (Final financial statement + signed final payment request)

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What should be presented in the report ?

• Show the quality, achievements and impact of your project,

• Justify the costs of the activities,

• Not necessarily long but complete and precise,

• Add e.g. annexes presenting results in tables.

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1. Final narrative (technical) report

• Use table of content included in the template (Annex V or Annex IX depending on the year)

• download from DG Competition's website http://ec.europa.eu/competition/court/practical_information_en.html ).

• Must cover the headings in bold in the table of content,

• If heading not applicable – don't delete - state "not applicable"

NB. Original presence list(s) signed by the participants – one for each day of seminar – must be attached to the final technical report. 6

http://ec.europa.eu/competition/court/practical_information_en.html



2. Final financial part (1)

Consists of:

• Financial statement,

• Request for final payment.

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• Financial statement:

• Report of all expenses and incomes of the project,

• must follow the same structure as your budget

– detailed – expenditure figures

– summary of final budget,

• respect the order of the headings,

• clear how the amounts have been calculated,

• proof of all expenditure (original or certified copies of invoices) except where unit costs apply.

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Request for final payment:

• must be signed by the legal representative,

• use the template attached to the final report (Annex V.b).

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Financial assessment by the Commission

• >Checks that:

• the financial statement is signed,

• the correct exchange rate has been used in converting costs to euro,

• the costs were foreseen in the estimated budget,

• the financial statement has been correctly filled in.

>Requests clarifications and missing supporting documents.

NB. The payment period of 60 days will be suspended until receipt of requested information and documents.

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Ex-post Audit

• Remember your project could be randomly selected

Keep all documentation for 5 years after final payment/recovery (3 years if maximum grant is below or equal to 60.000 euro) (Article II.27of the grant agreement)

• The Commission may recover any payments made.

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Eligible costs

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Principles for final grant amount

• The Grant agreement sets the limits:

1. the maximum amount of the EU contribution (Article I.3)

2. the maximum % of the total eligible costs (Article I.3)

3. non-profit rule (NOT APPLICABLE FOR LOW VALUE GRANT)

The EU contribution may be proportionally reduced, if the action is implemented poorly, partially or late (Article II.25.4).

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Eligible costs – Article II.19 Conditions for eligible costs - Article II.19.1

a) Incurred during the period of the action set out in Article

I.2.2 (exemption= Kick off meeting)

b) Indicated in the estimated budget,

c) Directly connected to the activities of the project and

necessary for the implementation of the action,

d) Identifiable and verifiable, and recorded in the accounting

records of the beneficiary in accordance with the

accounting standards of the country and practises of the

beneficiary,

e) Comply with the requirements of applicable tax and social

legislation,

f) Reasonable, justified and comply with principle of sound

financial management - cost efficiency

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Eligible cost - General requirements

• Costs reported should be registered in the accounts of the beneficiary/co-beneficiary.

• Although the final report must be done in euro, costs must be declared in the currency in which they were incurred and converted to euro according to the provisions of the grant agreement (see Article I.10 and the currency converter at http://ec.europa.eu/budget/contracts_grants/info_contracts/inforeuro/inforeuro_en.cfm).

• Where the amount of the invoice is not the same as the amount reported, please provide an explanation.

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http://ec.europa.eu/budget/contracts_grants/info_contracts/inforeuro/inforeuro_en.cfm

http://ec.europa.eu/budget/contracts_grants/info_contracts/inforeuro/inforeuro_en.cfm

Eligible costs - Budget headings

Categories of costs A.a) Staff

A.b)-c) Travels

A.d) Meals and refreshments

A.e) Fees

A.f) Equipment

A.g) Consumables

A.h) Publications

A.i) Any other direct costs

A.j) General costs charged to the operation

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Budget headings – a) Staff Costs (1) • 2 sub-categories of staff:

• Permanent (including civil servants or public officials), working full or part-time on the project

• Non-permanent: specifically recruited for the project.

• Staff costs = actual salary + social charges + other statutory costs

• Eligible staff costs = daily/hourly gross cost * no. of days/hours worked on the project

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Budget headings – a) Staff Costs (2) • Timesheets or an equivalent time registration

system must be in place

• Salary rates should not exceed the average ones corresponding to the beneficiary's usual policy on remuneration

NB. Staff must be foreseen in the budget of the grant agreement.

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Budget headings – a) Staff Costs (3)

Supporting documents

Permanent staff:

• Existing contract

• Secondment letter

• With description of tasks, reference of the project, duration,

time allocated to the project, hourly/daily rate

• Monthly salary slips

• Timesheets

• Signed and dated by each staff containing description of

tasks and hours/days worked.

• Calculation of the hourly/daily rate requested

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Non-permanent staff: specifically recruited for the project

• Specific contract linked to the project

• with indication of tasks, reference of the project, duration,

time allocated to the project, hourly/daily rate

• Salary slips – if the staff is on the payroll

• Invoices – if the staff is not on the payroll

• with indication of tasks performed, dates, number of

hours/days worked and the price per hour/day

• Proof of payment by bank transfer

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Calculation of staff costs for staff not fully allocated to the project

Annual gross salary + social charges Actual days or hours

______________________________ X working on the project as

Total actual annual productive substantiated by timesheets working days or hours

Where:

• Annual gross salary + social charges = costs actually paid by the beneficiary in the timeframe of a year, including: salary, taxes, employer's contribution for national security schemes, etc.

• Total actual annual productive time = total time in days or hours worked in the timeframe of a year

• NB. time used on meetings, activities, training and similar activities are considered a productive working time

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Budget headings – a) Staff Costs (6) Examples of reasons for ineligibility

• Staff contracted by partners/organisations other than the beneficiary/co-beneficiary

• Daily/hourly rates claimed are above the limit set by the budget or not respecting the maximum daily rate of Annex IV

• Wrong calculation of daily/hourly rates

• Inflated daily/hourly rates

• Lack of timesheets or unsuitable timesheets provided

• Volunteer work

• Work done outside the eligibility period

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Budget headings – b)-c) Travel costs (1) • Directly linked to the project's activities and made by

persons taking part in the action

• All travel and subsistence expenses must be reported under this heading

• In line with the beneficiary's usual practice and system

• The most economical fare and method should be applied

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Budget headings – b)-c) Travel costs (2)

• Accommodation and subsistence costs:

-> reimbursement on the basis of unit costs - cannot exceed the scales included in the grant agreement.

NB. Travel for events, persons, countries not foreseen must be notified and justified.

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Budget headings – b)-c) Travel costs (3) Supporting documents

Travel costs:

– Original travel invoice

– Original transport ticket (boarding pass, train receipts, bus

ticket, etc.)

– Travel by car: reimbursement claim

» NB. up to the equivalent of first class rail fare

– Proof of payment (or reimbursement when ticket is

purchased by a third party and not by the beneficiary/co-

beneficiary)

– Signed original attendance list (in particular for meetings

and conferences)

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Accommodation and subsistence costs :

• Reimbursement of accommodation and subsistence costs on the basis of unit costs:

– Attendance list signed by the participants

– List of hotel nights per person from the hotel

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Budget headings – b)-c) Travel costs (6) Examples of reasons for ineligibility

• Travel costs:

• Attendance list signed by the partcipants missing

• Missing original supporting documents – e.g. missing boarding pass or other proof of travel (e.g.proof of actual travel by car: receipt of fuel purchase)

• Invoice not clearly stating the amount paid

• Use of taxi where public transport could have been used

• Missing proof of payment / bank transfer

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Examples of reasons for ineligibility:

• Accommodation and subsistence costs:

• Amount exceeds the maximum accepted unit cost

• Attendance list signed by the partcipants missing

• List of hotel nights per person from hotel missing

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Budget headings – d) Meals and refreshments (2)

Supporting documents:

• Unit costs apply – only original signed attendance list needed

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Budget headings – d) Meals and refreshments (3)

Examples of reasons for ineligibility

• Attendance list signed by the participants missing

• Cost not foreseen in the estimated budget

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Budget headings – e) Fees (2)

Fees to speakers and interpretation services


• Costs not foreseen in the budget

• Cost incurred outside the eligibility period

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Budget headings – f) Equipment (1)

Equipment, land and immovable property e.g. Rent of conference rooms, rent or purchase of materials, interpretation booths, etc.

• Only if strictly necessary and specifically for the project's core activities

• Supplier must be chosen according to the best value for money principle

• Equipment must be itemised and bear an inventory number

• Concerns new or second-hand equipment (computer, audio-visual, etc.)

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Budget headings – f) Equipment (2) • Eligible cost -> charge only the depreciation cost of

equipment at a rate that reflects the degree and duration of use within the project

• Depreciation -> Beneficiary's accounting practice

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• Invoice showing date of purchase and delivery and proof of payment

• Beneficiary's accounting practice regarding depreciation

• Calculation of the depreciation amount requested

• Proof of payment – bank transfer

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• Invoice not addressed to beneficiary/co-beneficiary

• Full cost claimed for equipment where only the depreciated cost should be claimed

• Cost claimed does not reflect the period and percentage used for the implementation of the grant

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Budget headings – g) Consumables (1) • They are identifiable and exclusively used for the purpose

of the action

• Are real costs necessary to produce the outputs and strictly related to the activities of the project

• Their cost can be traceable and distinct from normal running costs

• Concern goods of a short length of life -> not registered as fixed assets in the accounts/inventory and are not written off

NB. General office supplies (pens, paper, folders, ink cartridges, electricity supply, telephone and postal services, etc.) are indirect costs (overheads) -> heading j).

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Budget headings – g) Consumables (2) Supporting documents

• Invoice and proof of payment

Examples of reasons of ineligibility

• Invoice not addressed to beneficiary

• Cost cannot be linked to the project, cannot be traced or is part of the normal running costs

• Costs claimed are not consumables but general office supplies (pens, paper, folders, etc.) which are not eligible as direct costs and are covered as indirect costs (overheads) under heading j.

• Cost not foreseen in the budget attached to the GA.

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Budget headings – h) Publications (1) Publications and dissemination e.g. costs of layout, editing, printing, translation, website creation and maintenance of websites

• Exclusively linked to the project

• Visibility rules & disclaimer

• Reporting must be clear and precise (type of publication, no. of pages, price per unit, number of copies, languages, etc.)

• Any related income from books/tickets sold must be declared in the final statement as an income.

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Budget headings – h) Publications (1)

Publications and dissemination


• Original invoices of printing jobs, indicating the name of document printed, number of pages and number of items, date of services provided, etc.

• Original invoices for editing or proof-reading or translation of texts, indicating the rate per page and pages analysed

• Original invoice of publication costs, indicating the price per unit and the number of items published

• Proof of payment – bank transfer showing payment to the supplier

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Budget headings – h) Publications (2)

Publications and dissemination

Example of reasons for ineligibility

• Invoice not addressed to beneficiary/co-beneficiary

• Invoice does not have a link to the project, e.g. name of publication missing, date when activity took place missing

• Lack of visibility of the EU financial support and EU logo on publications


• Cost incurred outside the eligibility period

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Budget headings – i) Any other direct costs (1)

Direct costs not falling into any of the categories a)-h) e.g. evaluation, audit certificates, bank charges, any requirements imposed by the grant agreement

Examples of reasons for rejection


• No link to the project

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• Original postage invoices, if clearly linked to the project – otherwise included as indirect cost (overheads) under heading j.

• Proof of bank charges, clearly linked to the project

• Accounting/audit invoices clearly linked to the project, specifying the hours/days worked and the rate per hour/day


• Cost not foreseen in the budget


• Missing original supporting documents 42


Examples of reasons for rejection:

• Cost not foreseen in the budget


• Missing original supporting documents

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Budget headings – j) General costs charged to

the operation (1) Indirect cost/overheads

• Costs that cannot be identified as specific costs directly linked to the project, but which are necessary for the project (e.g. office space, electricity, heating, financial management and administrative support, phone, internet, office furniture, etc.).

• May not include costs identifiable or declared as eligible direct costs.

• Calculated as a fixed flat-rate (maximum 7% of the total eligible costs)

NB. A beneficiary receiving an operating grant from the EU budget cannot request indirect costs for an action during the same period.

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Budget headings – j) General costs charged to

the operations (2)

Indirect cost/overheads


• No supporting documents needed


• Cost also included as direct cost

• Overheads requested is higher than agreed in Artcle I.3 of the grant agreement

• The beneficiary/co-beneficiary receives an operating grant running within the same period as the action grant. 45

Thank you for your attention!

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Documents

3. Kick-off TOJ - Final report