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Financial d fprocedures for
implementation of Twinning projectsTwinning projects
L.CielavaSenior Project Manager
Twinning Project [email protected]
Phone: +371 7854560
12-03-2008
o e 3 85 560
2008
G l i i lGeneral principlesThe Payment Agent in Latvia is the CFCA
All payments within the project are made to the MS administration responsible for implementation of the twinning project.
RTA Asstistant’s salary is paid by the CFCA directly to the RTA Assistant’s bank account.
Requests for payments and invoices must bear original signature of theRequests for payments and invoices must bear original signature of the MS Project Leader.
Only reports and Expenditure Verification Report shall be presented to th CFCA t ti d t (N i i l tithe CFCA as payment supporting documents. (No original supporting documents should be submitted to the CFCA).
12-03-2008
Gl b l lGlobal envelopeBudget shall be prepared and maintained within the fixedBudget shall be prepared and maintained within the fixed
ceiling stated in the respective European Commission Decision (ECD)
In the budget only activities carried out and financed from the Twinning/Twinning Light Project shall be presented
Budget shall be contracted, implemented and disbursed within the time limits presented in the respective ECD
12-03-2008
B d t d ti t i tiBudgetary and time restrictions
The budget ceiling fixed in the Contract cannot be exceededexceeded
The implementation deadline for the TF 2006 projects set by the ECD is15th December 2009 and cannot be exceededthe ECD is15th December 2009 and cannot be exceeded
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Eligible costsEligible costsTwinning
• Project preparation costs (up to 6 months between the notification of selection and
Twinning Lightbetween the notification of selection and signature of the Contract)
• Resident Twinning Advisors (RTA)
• RTA Assistant
• MS Project Leader (PL) and short term experts (STE)
• MS PL’s & STE’s travel expenses
• Supply of services i e translation• MS Project Leader (PL) and short term
experts (STE)
• Supply of goods (up to € 5.000 per project)
S l f i i t l ti
• Supply of services i.e. translation, interpretation (no procurement proceduresrequired for supplies up to € 10.000 per budget item)*
• Training of BC experts in MS• Supply of services i.e. translation, interpretation (no procurement proceduresrequired for supplies up to € 10.000 per budget item)*
• MS staff travel expenses and per diems
• Training of BC experts in MS
• Audit costs• Visibility costs
• MS staff travel expenses and per diems
• Training of BC experts in MS• Audit costs• Visibility costs
• See Twinning News No.27
P j t ti t *Project preparation costs*Includes the costs incurred within max 6 months starting as f th d t f th ffi i l tifi ti f l ti t thfrom the date of the official notification of selection up to the submission of the draft Twinning Contract to the EC Headquarters for opinion:q pFees and travel costs for Project Leader/RTA (no other
experts):< 1 M€ - 6 trips to the BC & 20 working days (incl. PMC & per diems)> 1 M€ - 9 trips & 30 working days (incl. PMC & per diems)
* Only eligible for Twinning
12-03-2008
F f tFees for expertsMandated Bodies’ (MB) staff - 3 categories of expert fees:
• Class 1 expert – 250 €/day (experience minimum 3 years, preferably 5 to 8)
Personal experience in implementation of institutional aspects targeted by the Twinning project
• Class 2 senior expert 350€/day (experience minimum 8 years preferably up to 15)• Class 2 senior expert -350€/day (experience minimum 8 years, preferably up to 15)
+ innovative capacity
+ experience in cooperation with non-EU countries+ capacity to communicate in one of the community languages widely+ capacity to communicate in one of the community languages widely
spoken in the BC administration
• Class 3 special counsellor - 450€/day (experience minimum 15 years, preferably up to 20)
+ + high-level officials (head of government department, head or chairman of public or private sector body with a record of government work or equivalent)
Civil servants or acting civil servants - EUR 250 €/day
12-03-2008
T lTravelFor flights - economy class rates (cheapest possible)g y ( p p )For travel by train – first class train ticketFor travel by car – reimbursement is calculated at y
0,25€/km, regardless what the actual costs areTravel from and to airport or within the base city shall be
d f dicovered from per diems (except for arrrivals after 22:00 and departures before 7:00, where taxi fare may be charged separately)
Local travel costs in the BC (outside the capital) shall be budgeted separately
12-03-2008
P diPer diemsPer diems are calculated on the basis of overnight staysPer diems are calculated on the basis of overnight stays
(no half per diems) for Latvia 211 €/per night
The actual per diem rates can be found at:The actual per diem rates can be found at:
http://europe.eu.int/comm/europeaid/index_en.htm
P di f d h t l d l l it t t tiPer diems cover food, hotel and local city transportation
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T i i d iTraining and seminarsCosts for MS staff input (except for those already presentCosts for MS staff input (except for those already present
in the BC in the context of another activity)Preparation of training documentionInterpretation at the seminarTransportation for on-site visitsLocal costs (i.e. rent, facilities) are borne by the BC
partner
12-03-2008
Study visits outside BCyFinanced from the BC co-financing:
- travel costs from the BC to a MS of the BC participants
Financed from the Twinning budget:
- travel costs within a MS of the BC participants, if specifically included in the budgetincluded in the budget
- per diems and local transportation of BC officials within a MS
- Small incidental costs (maximum 10 € per trainee per day)Small incidental costs (maximum 10 € per trainee per day) without supporting evidence
- Interpreter’s flight, fee and per diems
All costs for participation of MS experts at study visits should be covered from the PMC compensation
12-03-2008
P j t M t tProject Management costsFor every item in the budget concerning expert fees the MSFor every item in the budget concerning expert fees the MS is entitled to the Project Management Costs at 150% of the amount of expert fee.
PMC can be used for any costs arising in the MS inconnection with the project and overhead costsconnection with the project and overhead costs.
Note!
For private sector experts no PMC can be applied
12-03-2008
T l ti d i t t tiTranslation and interpretationAn RTA assistant provides translation & interpretation on aAn RTA assistant provides translation & interpretation on a
daily basis*
Additional translation and interpretation services should be budgeted in relation to each activity for which they are required
All acquis related documents shall be translated by the official translation co ordination unit in the BCtranslation co-ordination unit in the BC
Value for money to be sought
Translation costs must be charged at the BC rateTranslation costs must be charged at the BC rate* Applies only for Twinning
12-03-2008
Equipment & private sector inputThe budget may provide for supplies below € 5.000 per
process in very exceptional cases and subject to due written justification (no mobile phones desktops laptops etc arejustification (no mobile phones, desktops, laptops etc. are eligible)
No supplies of goods are allowed in Twinning Lightpp g g g
Budget may provide for private sector services (no procurementprocedures required for supplies up to € 10.000 per budget item)(t l ti /i t t ti l f t l i ifi ft t i i t i l(translation/interpretation, supply of travel services, specific software, training material, private sector experts inputs to training).
No VAT shall be reimbursed from the EU funds (each BC has a diff t d f VAT li ti f i f ti L t idifferent procedure for VAT application, for information on Latviacontact the Ministry of Finance +371 67095528)
12-03-2008
T i i t t d b th EUTwinning costs not covered by the EU
Running costs of the BCRunning costs of the BC
Travel costs for BC staff travelling to a MS
Direct and indirect costs of BC administrations, civil servants and national private experts working for the project
C t f th ffi i tCosts of the office equipment
Costs for indirect taxes (VAT)
12-03-2008
Ad tAdvance payment
80% of the TW project budget for first 12 months (excluding80% of the TW project budget for first 12 months (excluding private sector services contracted by the AdministrativeOffice/PAO (RTA assistant) and contingencies up to 2,5%)
80% of the TWL project budget
Request for pre-financing can be submitted to the CFCA afterthe date of the notification letter issued by the Administrativethe date of the notification letter issued by the Administrative Office
The CFCA makes the payment within 45 days after receipt of the correct invoice
12-03-2008
I t i i i *Interim invoices*When the MS partner can demonstrate (financial report)When the MS partner can demonstrate (financial report)
that 70% of the cumulated advance is used, a subsequent pre-financing may be requested
Pre-financing may be requested for up to 90% of the total budget of the Twinning Contract
All relevant signatures shall be obtained
* Applies only for Twinning
12-03-2008
Fi l P tFinal PaymentThe Final payment is made after endorsement of the Final p y
Report by the Administrative Office and presentation of the financial report accompanied by an Expenditure Verification Report from a recognized independent auditorReport from a recognized, independent auditor
The Expenditure Verification Report should cover all expenditures (including RTA and private sector input paid directly byexpenditures (including RTA and private sector input paid directly by CFCA) and should cover all contract implementation period
The MS administration shall re-pay the unused resourcesof the advance payment
Deadlines shall be respected
12-03-2008
Changes to a Twinning / Twinning LightChanges to a Twinning / Twinning Light Contract
Addenda:The Acquis Communautaire related to the budgetThe Acquis Communautaire related to the budgetMandatory results MS administrationImplementation period of the Action (legal duration)Implementation period of the Action (legal duration)Definition of the mandatory results and benchmarks to be achievedIdentity of the MS and BC Project Leaders, the RTA and the principal MS short-term expertspInterruption or termination of the TW/TWL contract before completionSuspending the funding or lifting the suspension of funding Major budget reallocations beyond a cumulated amount of 15%
12-03-2008
Changes to a Twinning / Twinning LightChanges to a Twinning / Twinning Light Contract
Side Letters (SL):Side Letters (SL):The change does not affect the basic purpose of the project
Change of non-key expertsg y p
Change of means used, time schedule and dates for implementation of activities
Cumulated budget reallocations below 15% of the Twinning project
All SL h ll b t l d j i tl d id d d i dAll SLs shall be autonomously and jointly decided and signed by MS and BC Project Leaders
12-03-2008
Ch t th b d tChanges to the budgetAny changes in the original budget breakdown (addition or y g g g (
replacement of expert for activity, increase of expert days worked, increase of the number of flights/per diems) should be made through Side letters or addendum.
Modifications cannot be made retroactively.Any eligible costs covered from contingencies (2,5% of the y g g ( ,
total budget) shall be indicated in the financial reports
Any savings arising during the course of project i l t ti b l d i t b d t liimplementation can be placed in a separate budget line -surplus
12-03-2008
Reporting (TW)Reporting (TW)Interim quarterly reports:
Should be prepared at 3 monthly intervals starting the date ofShould be prepared at 3-monthly intervals starting the date of notification.Submitted during the month following the quarter under consideration.
Final reportSubmitted no later than 3 months after the implementationSubmitted no later than 3 months after the implementation period – during the final month before the end of the project’slegal duration (together with the final invoice and expenditure verification report froma recognized, independent auditor (template available)).
12-03-2008
Reporting (TWL) IReporting (TWL) IStart-up report:
Covers the first two months of the Contract starting the date ofCovers the first two months of the Contract starting the date of notification.Submitted during the third month.
Final reportFinal reportCovers the period not covered by the Start-up report –starting form the 3rd month to the end of the project activities. Submitted no later than 3 months after the implementation period of activities – during the final month before the end of the project’s legal duration (together with the final invoice and expenditure verification report from a recognized independent auditor (template available))recognized, independent auditor (template available)).
All reports should be signed by both project leaders and approved by the SPO
12-03-2008
Reporting (TWL) IIReporting (TWL) IIFinal report
With the Final Report two types of Financal Sections should be prepared:
1) In the form of an Interim Report indicating the costs occurred during the1) In the form of an Interim Report, indicating the costs occurred during the 3rd to final month of the project (Annex 5 to the Welcome Pack);
2) The summary table of project expenditures, indicating the costs of the entire project period divided by quarters (start up and Final) ith tentire project period, divided by quarters (start-up and Final) without specifying dates, time of arrivals/departures, invoice numbers, etc. (Annex 6.1. to the Welcome Pack)
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ReportingReportingThe folowing information should be included:
A ti it [NUMBER AND TITLE AS IN CONTRACT]Activity no. [NUMBER AND TITLE AS IN CONTRACT]Mission of expert [NAME] [DATE AND TIME OF ARRIVAL AND DEPARTURE]Fees [NO OF WORKING DAYS] X [RATE]PMC 1 5 [TOTAL AMOUNT OF FEES]PMC = 1,5 x [TOTAL AMOUNT OF FEES]Per diem [NO OF NIGHTS] x [PER DIEM]Air ticket [PLACE OF DEPARTURE - DESTINATION] [CLASS]L l t l t l ti [PLACE OF DEPARTURE DESTINATION][MEANS OFLocal travel to location [PLACE OF DEPARTURE - DESTINATION][MEANS OF
TRANSPORT AND CLASS]Translation of [NAME OF DOCUMENT] [NO OF PAGES] x [UNIT PRICE] [NAME
OF TRANSLATOR / COMPANY]OF TRANSLATOR / COMPANY]Interpretation during [NAME OF EVENT][NO OF DAYS] x [UNIT PRICE][NAME OF
INTERPRETER / COMPANY
12-03-2008
Useful links:Pre-Accession Assistance for Institution Building – Twinning: http://ec.europa.eu/enlargement/financial_assistance/institution_building/twinning_en.htm
Official Euro exchange rate for accounting purposes:Official Euro exchange rate for accounting purposes: http://ec.europa.eu/budget/inforeuro/index.cfm?Language=e
All about Twinning/Twinning Light on the CFCA web page: g g g p ghttp://www.cfla.gov.lv/?object_id=944n
12-03-2008
C t t i th CFCAContact persons in the CFCA:
Regarding project implementation: Regarding payments::Regarding project implementation:
Twinning Project Division
Regarding payments::
Special Programme FinancialM t d P t Di i i
Elita Benga Head of Division [email protected] Lūse Deputy Head Division
Management and Payment DivisionAija Priščepova Acting Head of [email protected]
Ai B l lAlise Lūse Deputy Head [email protected] Cielava Senior Project [email protected]
Aiga Balule [email protected]
Regina Uljanova Accountant
Jana Sīle Senior Project [email protected]
12-03-2008
Thank you for your attention!Thank you for your attention!
12-03-2008
