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MED PROGRAMME Lead Partner Seminar - 2 nd call Marseille - 2 nd December 2009 FOCUS ON BUDGET DEFINITION

MED PROGRAMME Lead Partner Seminar - 2 nd call Marseille - 2 nd December 2009 FOCUS ON BUDGET DEFINITION . DEFINING ACTIVITIES BEFORE BUDGET : First define activities needed to achieve fixed objectives. After necessary related budget. Budget = instrument. NOT vice-versa

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MED PROGRAMME Lead Partner Seminar - 2 nd call Marseille - 2 nd December 2009 FOCUS ON BUDGET DEFINITION

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  1. MED PROGRAMME Lead Partner Seminar - 2nd call Marseille - 2nd December 2009 FOCUS ON BUDGET DEFINITION

  2. DEFINING ACTIVITIES BEFORE BUDGET: First define activities needed to achieve fixed objectives. After necessary related budget. Budget = instrument. NOT vice-versa COHERENCE: with the Working Plan. Clear link between description of activities/outputs and foreseen budget. Justification EFFECTIVENESS: achieving defined objectives and foreseen results. Project relation/relevance EFFICIENCY: best relationship between foreseen economic resources and activities/outputs/deliverables. Principles [1] ___________________________________________________________________ MED Programme – LP Seminar – Focus on Budget definition - Marseille 2nd December 2009

  3. TRANSPARENCY: Total Budget should be split by Components (phases), budget lines (sub categories) and by partners in a clear and transparent way Avoid similar splitting for all PPs unless it is justified by the activities REAL COSTS:Budgeting should be based on real estimations TRANSNATIONALITY: the budget should reflect the active participation of all PPs All PPs should have a reasonable budget to ensure a concrete active and balanced participation Principles [2] ___________________________________________________________________ MED Programme – LP Seminar – Focus on Budget definition - Marseille 2nd December 2009

  4. REFERENCE AMOUNT: total eligible budget by partner ERDF + National co-financing IPA + National co-financing CONSISTENCY: the LP should agree the budget allocation by Budget Lines/Components with all PPs No artificial splitting European, National, and Programme’srules should be respected Public procurement rules! Practical suggestions [1] CHECK « FIRST LEVEL CONTROL GUIDELINES » http://www.programmemed.eu/ ___________________________________________________________________ MED Programme – LP Seminar – Focus on Budget definition - Marseille 2nd December 2009

  5. BALANCED DISTRIBUTION: among Budget Lines, Components and Partners 1. BUDGET LINES: Check the total amounts namely on: “External experts”: recomm. Max. 35% of TOT. Eligible Budget “Staff”: recomm. Max. 40% of TOT. Eligible Budget “Overheads”: limit eligibility 7%. Difficult to justify as the method of calculation shall be demonstrated. Suggestion: avoid as much as possible 2. COMPONENTS: Check the total amounts namely on: “Communication”: dully justified “Management”: recomm. Max. 15% of TOT. Eligible Budget 3. PARTNERS: Min. 5% of the total budget: to ensure concrete active participation Practical suggestions [2] ___________________________________________________________________ MED Programme – LP Seminar – Focus on Budget definition - Marseille 2nd December 2009

  6. Practical suggestions [3] • ATTENTION TO TIME FRAME – ELIGIBILITY: 1. Preparation costs 2. Implementation costs 3. Costs project closure • ATTENTION TO TIME TABLE: 1. costs of the Phases (Components) should be coherent with related duration – WORKING PLAN 2. coherence breakdown of PPs’ budget per year and related activities/outputs (Phases- Components) NOT AUTOMATIC ON PRESAGE Financial Section - V.7 ___________________________________________________________________ MED Programme – LP Seminar – Focus on Budget definition - Marseille 2nd December 2009

  7. Practical suggestions [4] • BUDGET LINES: Shall be specified by sub-categories Balance the detail: enough to understand which kind of expenditures the relevant BL includes BUT not so much detailed to be binding Ex: BL: Staff Sub-Cs: coordinator; financial manager; administrative assistant… BL: Travel Sub-Cs: Monitoring Committees; JTS Info days; technical meetings… • COMPONENTS:Shall be specified by phases Component “0 – Preparation”: foresee it even if no costs are included. Related period will be eligible to include expenditures between submission of final AF/date of project implementation ___________________________________________________________________ MED Programme – LP Seminar – Focus on Budget definition - Marseille 2nd December 2009

  8. Practical suggestions [5] • Budget filled in through the WORKING PLAN – Section II – 5.1 of PRESAGE. Points 4 and 5 of financial Part - Section V of PRESAGE - automatically generated ___________________________________________________________________ MED Programme – LP Seminar – Focus on Budget definition - Marseille 2nd December 2009

  9. Practical suggestions [6] • Budget modifications with reference to pre-application: 1. add or eliminate a partner 2. reallocations between Budget Lines/Components 3. reallocations between Partners • Provided that: • it is fully and clearly justified • it ensures a concrete active and balanced participation of all PPs • it does not imply a relevant increase of approved budget. Avoid increasing the budget ___________________________________________________________________ MED Programme – LP Seminar – Focus on Budget definition - Marseille 2nd December 2009

  10. Budget Lines [1] • Budget lines are standard: • Staff costs • Durable goods • Consumable goods • Travel and accommodation • Services (other than external expertise) • External expertise • Promotion, information and publications • Overheads • Other Supporting information on how to allocate costs to the different budget lines is provided by the Manual « FIRST LEVEL CONTROL GUIDELINES » http://www.programmemed.eu/ ___________________________________________________________________ MED Programme – LP Seminar – Focus on Budget definition - Marseille 2nd December 2009

  11. Budget Lines [2] • “Staff”: make a real estimation of personnel/related costs needed • “Durable goods - Consumable goods”: list them in the AF under the relevant phase – Component • “Travel”: foresee budget for JTS Info days, events, capitalisation (indicatively 3 per year) • Clearly indicate travels out of MED area • “Services” and “External expert”: make a real estimation based on market prices (previous tenders, research on internet ….) • Under “External expert” foresee budget for audit ___________________________________________________________________ MED Programme – LP Seminar – Focus on Budget definition - Marseille 2nd December 2009

  12. Budget Lines [3] • “Promotion, information and publications ”: make a real estimation of the I&P material/activities the project needs to achieve Communication objectives • VAT shall be calculated in the budget as long as it represents a genuinely and definitely borne expenditure by the partner and cannot be recovered by no means ___________________________________________________________________ MED Programme – LP Seminar – Focus on Budget definition - Marseille 2nd December 2009

  13. Budget Lines [4] • COMMON COSTS: Should be avoided as: • problems such as double counting • ineligibility of the declared costs at the source due to the administrative procedures adopted • “double” check by relevant first level controllers • If it not possible to avoid: • limit common costs to expenditures under BLs “external expertise” and “services” • before submitting the project proposal, check with relevant FLCs and national bodies in charge of the Programme the acceptance of the principle of sharing costs, related procedures to report and validate this kind of costs • envisage specific agreements regarding the nature of these costs and the modalities of their implementation and certification. Partnership agreement ___________________________________________________________________ MED Programme – LP Seminar – Focus on Budget definition - Marseille 2nd December 2009

  14. Thank you for your attention ! JTS MED Phone: +33 4 91 57 52 96 (or 5133) E-mail: stc-med@regionpaca.fr www.programmemed.eu ___________________________________________________________________ MED Programme – LP Seminar – Focus on Budget definition - Marseille 2nd December 2009

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