Financial Management for COMFORT Project

1. COMFORT Kick-off meetingBergen, 9th – 11th October 2019 FINANCIAL MANAGEMENT Hege D. Høiland Financial project manager, University of Bergen (coordinator) This project has received funding from the European Union’s Horizon 2020 research and innovation program under grant agreement No 820989”.

2. Financial management COMFORT COMFORT– Financial management • Eligiblecosts • EC/EU audits • Documentation • Max. grant amount and budgetflexibility • Third parties • Periodic reports and payments • Contractamendments • Communication

3. Financial management COMFORT COMFORT – Financial management • The scientists should focus on the science. • However, the scientists spend the projects EC funding – thus they need to be aware of the financial rules. • In addition – the budget and payment in the contract depends on the deliverables and results.

4. Financial management COMFORT

5. Financial management COMFORT Eligible costs – General conditions • Actually incurred by the beneficiary and within the project period (except costs relating to the last reporting period). • Incurred in connection with the action as described in Annex 1 and necessary for it’s implementation. • Indicated in the estimated budget in Annex 2. • Identifiable and verifiable (documented!). • Sound financial management - economy and efficiency. • Recorded in the beneficiary’s accounts in accordance with national accounting standards and usual cost accounting practices, comply with applicable national law on taxes, labour and social security.

6. Financial management COMFORT Eligible costs – Specific conditions • In addition, specific conditions apply for each cost/budget category: • Personnel costs • Other costs (travel, equipment, consumables etc) • Use of third parties • Described in Annotated Model Grant Agreement – currently 846 pages! • Scientists need administrative/financial assistance.

7. Financial management COMFORT Ineligible costs - Costs related to return on capital - Debt and debt service charges - Provisions for future losses or debts - Interest owed - Doubtful debts - Currency exchange losses - Bank charges charged by the beneficiary’s bank for transfers from the commission/agency - Excessive or reckless expenditure - Deductable VAT – Non-recoverable VAT is eligible - Costs incurred during suspension of the action

8. Financial management COMFORT Eligiblecosts • Eligiblecostswill be checked: • In theperiodic reports (Form C/Useof Resources) • Certificateonthefinancialstatement (whenrequired) • EC/EU audits • Eachbeneficiary is responsible for ensuringthatonlyeligiblecostsarereported to the EC (coordinatorresponsible for monitoringtheproject).

9. Financial management COMFORT EC/EU Reviews and Audits • Reviews are normally of a technical nature and audits are financial, but there is an option to combine. Can be planned or on-the-spot. • The Commission – from the project start and until 2 years after the payment of the balance (“final payment”). • ECA and OLAF can carry out investigations, checks and audits. • Documentation must be kept within 5 years after the balance of payment. • If misconducts or deficiencies are found; reported costs can be disallowed, Annex 1 can be requested changed, Grant Amount reduced, or worst case scenario the project will be terminated.

10. Financial management COMFORT Documentation of eligible costs • Scientists will normally only have to be concerned with: - Timesheets/time recording - Proper documentation of travel costs (proof of attendance, necessity for travel) • Remaining documentation usually found on a central level (employment contracts, invoices, financial records etc). • Check documentation requirements with own organisation!

11. Financial management COMFORT Documentation • Timesheets – procedures to be checked by auditor:

12. Financial management COMFORT Documentation • In addition - All purchases – Ensure best value for money Annotatedmodel grant agreement: ”The best value for money principle does not require competitive selection procedures in all cases. (However, where a beneficiary did not request several offers, it must demonstrate how best value for money was nevertheless ensured.)” “moreover comply with the applicable national procurement rules”

13. Financial management COMFORT Max EU grant and budget flexibility • Max grant amount Euro 8 191 663,75 • The consortium will not get more, and may receive less depending on reviews of periodic reports (including Form C). • Re-distribution of budget is possible. • Estimated budget and person-months per beneficiary in Annex 1. • Deviations to be reported the periodic reports.

14. Financial management COMFORT Budget flexibility and contract amendments

15. Financial management COMFORT Third parties • A third party is any party that has not signed the COMFORT Grant Agreement. • Use of personnel not under a direct contract with the beneficiary and use of third parties (including subcontractors) may be possible – but specific rules. • If you need anyone else than own employees to carry out any of the project work, and it is not already defined in the Grant Agreement, contact your Financial officer and inform the coordinator (Financial manager).

16. Financial management COMFORT Reporting and payment

17. Financial management COMFORT Contract amendments • If a contract amendment is required for the project, this will be requested and executed by the Coordinator on behalf of the beneficiary(s) in question (input may be required from the beneficiary(s)). • Examples when amendments are required: new beneficiary or change in legal status of beneficiary, changes to Annex 1, change in duration of project period. • An amendment will soon be requested for COMFORT. NOC will become a new beneficiary due to a Partial takeover from UKRI.

18. Financial management COMFORT Communication • A financial/administrative contact has been established at each beneficiary. • Financial managers will try to keep the involvement of the researchers on financial and administrative mattes to a minimum. • Both researchers and administrators may of course contact the Financial project manager at any time. • Automatic messages from the Participant portal – mainly for the coordinator – we will keep the consortium informed of any actions required. • Please keep the coordinator informed on any issues relating to the Grant Agreement – changes key personnel, use of new third parties, any major re-distributions of the budget etc (changes related to the scientific work/Annex 1 inform Dagmara/Christoph).

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