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Harmonised Implementation Tools (HIT)

Harmonised Implementation Tools (HIT). Application Form – Finance. 1st meeting on HIT with cross-border cooperation and transnational cooperation programmes in the Mediterranean Area 17 September 2014 | Milan, Italy. HIT Application Form. Budget sections in the Application Form.

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Harmonised Implementation Tools (HIT)

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  1. Harmonised Implementation Tools (HIT) Application Form – Finance 1st meeting on HIT with cross-border cooperation and transnational cooperation programmes in the Mediterranean Area 17 September 2014| Milan, Italy

  2. HIT Application Form Budget sections in the Application Form • Project – consolidated data for all partner • Section A.3 Project budget summary • PART D Project budget • Partner – separate for each partner • PART E Partner budget Insert of data: only once

  3. HIT Application Form HIT glossary

  4. HIT Application Form PART D – Project budget • D1 – Project budget breakdown per partner • D.2 – overview per partner / per budget line • D.3 – overview per partner / per period • D.4 – overview per partner / per WP • D.5 – overview per WP / per period • D.6 – overview per WP / per budget line • D.7 – In-kind contribution Analysis: focus on partners Analysis: focus on WP

  5. HIT Application Form Budget lines Categories of costs listed in Art 18 ETC Regulation • Staff costs • Office and administration • Travel and accommodation • External expertise and services • Equipment • Infrastructure and works Specific rules defined in the Commission Delegated Regulation (EU) 481/2014

  6. HIT Application Form PART E – Partner budget • E1 – Partner budget • E.2 – Origin of partner contribution • E.3 – In-kind contribution • E.4 – Partner budget: breakdown per budget line Possibility to use real costs or simplified cost options (e.g. flat rate for staff costs, flat rate for office and administration)

  7. ERDF outside (the Union part of) the programme area 7

  8. Section C.6 – Activities outside (the Union part of) the programme area HIT Application Form Article 20 ETC Regulation Activities are of benefit for the programme area (demonstrated in the Application Form) Ceiling of 20% of ERDF support respected at programme level (30% programmes covering outermost regions) Management, control and audit obligations TA, promotional activities, capacity building: (a) + (c) respected, but not (b)  no ceiling

  9. Activities and ERDF expenditure outside (the Union part of) the programme area Austria: inside EU + programme Switzerland: outside EU Poland: outside programme Belarus: outside EU + programme

  10. (30% - programmes covering outermost regions) *Costs of accommodation, meals and local transport, if not covered by daily allowances – 20% ceiling applies. 10

  11. Investments 11

  12. Investment activities Types of ETC activities and allocation of their costs Financing of activities – budget lines: • Staff costs • Office and administration • Travel and accommodation • External expertise and services • Equipment • Infrastructure and works • Types of activities to be supported from ERDF (Art. 3 ERDF Regulation): • Productive investment • Fixed investmentin equipment • Investment in infrastructure • Networking, exchanges of experiences • Studies, preparatory actions, capacity-building For each cost of an activity, the type of cost determines which budget line the cost must be assigned to.

  13. Investments in HIT HIT Application Form Work Package Investment • Cluster of activities • Costs: all budget lines • HIT AF: WP Investment Investment activity part of a regular Work Package • A single activity or a number of activities part of a WP • Costs: all budget lines or selected only (e.g. no Infrastructure and works if only investment in equipment eligible) • HIT AF: additional details on the investment in section C.8 WP Management (WP1) and WP Communication (WP2) use only 5 budget lines, noInfrastructure and works.

  14. Fact sheets on budget lines– eligibility of expenditure

  15. Towards harmonisation of the eligibility rules Fact sheets on budget lines Agreement on 5 harmonised budget lines 2010-2011 Development of fact sheets on budget lines 2011-2014 Promotion and testing within HIT 2013-2014 ETC recognise the need to harmonise eligibility rules 2010 Input to the Delegated act on eligibility 2013-2014 Consultation with EC 2012-2014 PROGRAMMING PROCESS NEXT step: Follow harmonised approaches when setting the Programme’s rules 15

  16. Milestones 2010 2011 2012 2013 Meeting with EC experts on simplified cost options Structure consultations; EC positions paper: simplification Exchange meetings with EACEA on simplified cost options INTERACT meeting with EC: work on harmonisation of budget lines presented to the EC Email from EC asking for support from INTERACT Finance network meeting (all strands): budget lines, eligibility, simplified cost options, application and monitoring processes (HIT) Finance panels: start of work on harmonisation of budget lines; agreement on 5 budget lines 2nd Working Group in Madrid (budget lines, eligibility, simplified cost options) 1st Working Group in Brussels (budget lines, eligibility, simplified cost options): start discussing content of the fact sheets 16

  17. Milestones 2013 2014 Meeting with DG REGIO on the Delegated act Meeting with DG REGIO on simplified cost options Meeting with EC Auditors: feedback to the fact sheets INTERACT meeting with EC: HIT package presented to the EC EC annual meeting with ETC: HIT package presented at the conference Expert Group Meetings on the Delegated act: INTERACT observer 3rd meeting with TN programmes + IVC to agree on HIT package 1st meeting with TN programmes + IVC to agree on HIT package 2nd meeting with TN programmes + IVC to agree on HIT package 1st meeting with CBC programmes to agree on HIT CBC package Finance network meeting (all strands): consultation with ETC on the Delegated act 17

  18. Milestones TODAY 2014 2015 3rd meeting with CBC programmes to agree on HIT CBC package 4th meeting with TN programmes + IVC to agree on HIT package ETC 2014-2020: ready, steady, go!: Eligibility of expenditure Meeting of ETC Audit Authorities: Eligibility of expenditure HIT follow-up meetings with programmes Finance network (meetings, online exchange) 2nd meeting with CBC programmes to agree on CBC HIT package Workshop on eligibility of expenditure Workshop on eligibility of expenditure (ETC & EC) 18

  19. Fact sheets 5 + 1 budget lines • Staff costs • Office and administration • Travel and accommodation • External expertise and services • Equipment • Infrastructure and works Matrix of costs 19

  20. Fact sheets – content Sections • Definition • General principles • Forms of reimbursement (Staff costs; Office and administration) • Budget line specific rules • Calculation of costs (Staff costs; Office and administration) • Audit trail • Programme-specific conditions • Minimum requirements for time recording (Staff costs) Link to the Matrix of costs – ”living database” 20

  21. Staff costs I Fact sheet on Staff costs Eligible cost • Full-time and part-time work on the project • Salary payments and other costs linked to salary payments (employment taxes, social security) not recoverable by the employer. • All costs fixed in the employment document/law • Salaries related to responsibilities specified in the job description Reimbursement options: • Option I: Real costs (payslips required) • Simplified cost options, e.g. • Option II: Flat rate of up to 20% of direct costs other than the staff costs (Art. 19 ETC Regulation) • Option III: Standard scale of unit costs 21

  22. Staff costs II – Flat rate Fact sheet on Staff costs Article 19 ETC Regulation Staff costs of an operation may be calculated at a flat rate of up to 20% of the direct costs other than the staff costs of the operation • can apply on individual partner level • partners do not need to provide audit trail for staff costs (but for direct costs) Each partner can decide on the reimbursement option, unless applicable options set at the programme level. 22

  23. Staff costs III – Standard scale of unit costs Article 67 CPR Forms of reimbursement: standard scale of unit costs – established based on fair, equitable and verifiable calculation method Fact sheet on Staff costs 23

  24. Office and administration I Fact sheet on Office and administration Eligible cost • “Operating and administrative expenses of the partner organisation that support delivery of project activities.” (OPEX not CAPEX) • Exhaustive list of eligible elements defined in the Commission Delegated Regulation (list of examples in Matrix of costs) Reimbursement options: • Option I: Real costs • Option II:Flat rate of up to 15% of staff costs (Art. 68.1(b) CPR) 24

  25. Office and administration II – Flat rate Fact sheet on Office and administration Article 68.1(b) CPR Indirect costs may be calculated at a flat rate of up to 15% of eligible direct staff costs – no calculation method required from the programme • applicable at the partner level • partners do not need to provide audit trail for office and administration (but for direct staff costs) Staff costs calculated at a flat rate can still form the basis for calculation of indirect costs at a flat rate of (up to) 15% of staff costs. 25

  26. Travel and accommodation I Fact sheet on Travel and accommodation Eligible cost • “Travel and accommodation costs of staff of partner organisations that relate to delivery of the project.” • Exhaustive list of eligible elements defined in the Commission Delegated Regulation (list of examples in Matrix of costs) Travel and accommodation of external experts under External expertise and services Maximum daily rates for hotel and subsistence should be respected, in line with national legislation or internal policy of the partner organisation 26

  27. Travel and accommodation II – EC scale of maximum rates Fact sheet on Travel and accommodation Maximum eligible rates (in EUR) for hotel and daily subsistence allowance according to Council Regulation (EC, Euratom) No 337/2007 of 27 March 2007 Extract of data. 27

  28. External expertise and services Fact sheet on External expertise and services Eligible cost • “External expertise and services provided by a public or private body or a natural person outside of the partner organisation.” • Open list of eligible elements defined in the Commission Delegated Regulation (list of examples in Matrix of costs) • ….; other specific expertise and services needed for operations 28

  29. Equipment I Fact sheet on Equipment Eligible cost • “Equipment purchased, rented or leased by a partner, necessary to achieve objectives of the project. This includes costs of equipment already in possession by the partner and used to carry out project activities.” • Open list of eligible elements defined in the Commission Delegated Regulation (list of examples in Matrix of costs) • ….; other specific equipment needed for operations Second-hand equipment is eligible (under conditions, Delegated act), unless decided otherwise by the programme. Depreciation is eligible (under conditions, Art 69 CPR) 29

  30. Equipment II Fact sheet on Equipment Full purchase cost of equipment is eligible, provided: • Equipment used solely for the project • The total economic and depreciable life-time falls within the period of support Otherwise: Pro-rata use • Equipment partially used for the project (degree of use for the project). • Equipment purchased before the project approval and used for the project purpose (period of use). • Share has to be calculated according to a justified and equitable method. Depreciation • Decrease in value of the equipment. • Costs relate to the period of support for the project (Art. 69 CPR). • Cost calculated in line with legislation or general accounting principles of the partner organisation. 30

  31. Infrastructure and works Fact sheet on Infrastructure and works Article 3.2 ERDF Regulation Under the ETC goal, the ERDF may also support the sharing of facilities and human resources, and all types of infrastructure across borders in all regions. Rules on eligibility of infrastructure expenditure: • Some general rules, e.g. purchase of land (Art 69 CPR) • No specific rules defined in the Commission Delegated Regulation A separate budget line Infrastructure and works. 31

  32. Matrix of costs – ”living database” Matrix of costs Non-exhaustive list of eligible costs – examples • Identification of examples for cost elements listed in the Delegated act, including ”other costs needed for operations” under External expertise and services and Equipment • Identification of costs for the financing of Infrastructure and construction works Non-exhaustive list of ineligible costs – examples • Article 69 CPR (Interest on debt;, Purchase of land not built on or land built on in the amount exceeding 10% of the total eligible expenditure of the project; Recoverable VAT) • Delegated act on eligibility of expenditure (Fines, financial penalties and expenditure on legal disputes and litigation; Costs of gifts, except those not exceeding EUR 50 per gift where related to promotion, communication, publicity or information) • Other costs 32

  33. Net revenue 33

  34. Net revenue - CPR • Art 61(2) – The eligible expenditure of the operation to be co-financed from the ESI Funds shall be reduced in advance taking into account the potential of the operation to generate net revenue over a specific reference period that covers both implementation of the operation and the period after its completion. • Art 65(8) - …The eligible expenditure of the operation to be co-financed from the ESI Funds shall be reduced by the net revenuenot taken into account at the time of approval of the operation directly generated during its implementation, not later than at the final payment claim submitted by the beneficiary.

  35. In-kind contribution 36

  36. In-kind contribution – CPR (Art 69) • “Contributions in-kind in the form of provisions of works, goods, services, land and real estate for which no cash payment supported by invoices, or documents of equivalent probative value, has been made, may be eligible on condition that the eligibility rules of the ESI Funds and the programmes so provide… • …and the following criteria are fulfilled:” • Public support (EU contribution + public national funding) </= total eligible expenditure-in kind contributions • Market price • Independently verifiable

  37. Questions?Please do ask or contactkarolina.bachmann@interact-eu.net 38

  38. Thank you for your attention Please do not hesitate to contact us for any further information or visit www.interact-eu.net

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