INTERREG IIIB CADSES NEIGHBOURHOOD PROGRAMME

2. INTERREG IIIB CADSES NEIGHBOURHOOD PROGRAMME Transnational Training Seminar for potential Lead Partners and Partners, 3rd call November 9th-10th 2004, Brno

3. Financial Management: Obligations of a LP Project budget Legal basics Financial flows and reporting obligations Eligibility of costs Financial control Checklist

4. Project budget – keywords, average project sizes

5. KEYWORDS: realistic / appropriate correct figures feasible expressed in Euro

6. Project sizes (experiences from 2 calls) (all figures refer to projects´ ERDF budget share) • average budgets: 1,2 million Euro • budget range: 160.000 - 2,8 million Euro Project sizes: • budget < 500.000 Euro: 4 projects • budget between 500.000 - 1 million Euro: 29 projects • budget between 1 - 2 million Euro: 31 projects • budget > 2 million Euro: 9 projects

7. Project sizes (1st call projects)

8. Projectsizes (2nd call projects)

9. Legal basics – Subsidy Contract and Joint Convention

10. Contractual arrangements European Commission Regulations Managing Authority/Paying Authority JTS

11. Regulations • 1260/1999: General Provisions • 448/2004: Eligibility • 1159/2000: Information and Publicity • 438/2001: Management and Control Systems • 448/2001: Financial Corrections

12. Partner State Partner State Partner State Project Partner Project Partner Project Partner Project Partner Contractual arrangements European Commission Regulations Managing Authority/Paying Authority Agreement JTS Lead Partner Joint Convention

13. Joint Convention • Duties and Obligations of Lead Partner and Project Partners • Responsibilities of Lead Partner and Project Partners • Duration of the agreement • Activity reports and progress reports • Budgetary and financial management • Accounting principles • Verification and keeping the documents

14. European Commission Regulations Partner State Partner State Partner State Managing Authority/Paying Authority Agreement JTS Project Partner Project Partner Lead Partner Project Partner Project Partner Joint Convention Contractual arrangements Subsidy Contract

15. Subsidy Contract • Subsidy, object of use • Request for Payments • Eligible costs • Representation of project partners, liability • Obligations of Lead Partner • MA‘s right of withdrawal • Audit rights • Publicity

16. European Commission Regulations Managing Authority/Paying Authority Partner State Partner State Agreement Partner State JTS Subsidy Contract Project Partner Project Partner Lead Partner Project Partner Project Partner Joint Convention Subcontract Subcontract Subcontractor Subcontractor Contractual arrangements

17. Financial flows and reporting obligations

18. Managing Authority/Paying Authority 5.: JTS verifies the plausibility of the reported activities and expenditure Joint Technical Secretariat 4.: LP submits aggregated Activity and Financial Report Lead Partner 3.: PPs submit Activity and Financial Report Project Partner Project Partner 2.: certifiesexpenditure Project Partner Project Partner 1st level control Financial flows and reporting obligations 6.: MA checks and approves the Progress Report 7.: PA releases ERDF funds 1.: LP and PP report expenditure

19. Eligibility of costs – period, expenditure categories

20. Starting date of eligibility: date indicated in the AF and the Subsidy contract • Preparatory costs • Expenditure categories: co-ordination costs, personnel costs, overheads, meetings/conferences/seminars, travel and accomodation, promotion and publicity costs, external expertise, others, small scale investments

21. Financial control – 1st level control

22. First level control • Any expenditure related to a project will be • certified by a responsible national authority or private institution authorised to do so. • (=first level control) • The certification of expenditure / the first level control shall confirm • the delivery of the products and services co-financed, • the reality and eligibility of expenditure claimed and • that national and community rules, especially Commission Regulation (EC) 448/2004, have been respected.

23. Implementation of First level control • Which documents have to be submitted? • Receipted invoices • accounting documents of equivalent probative value • What has to be checked? • 100% of the project costs indicated for the resp. Project Partner independent from the co-funding rate • What kind of expenditure is eligible? • Regulated by Commission Regulation (EC) No 448/2004

24. Checklist

25. Checklist of First level control • Non-eligible costs: • private expenditures • maintenance/repair cost • running operational cost • discounts, reductions • double-invoiced cost • bank charges • and others • Problematic costs: • missing project link in subject and time matters • movable goods not clearly attributable to the project • etc.

26. THANK YOU FOR YOUR ATTENTION!

27. INTERREG IIIB - National Contact Point at the Austrian Conference on Spatial Planning Contact: Andrea Cerovska / Doris Wiederwald Hohenstaufengasse 3 A-1010 Vienna Phone: +43 (1) 535 34 44-22 Fax No.: +43 (1) 535 34 44-54 e-mail: cerovska@oerok.gv.at wiederwald@oerok.gv.at Internet: www.oerok.gv.atwww.cadses.at