Sector Skills Alliances Tourism and Catering Grant Agreement No. EAC - 2012 - 0634

1. Sector Skills Alliances Tourism and CateringGrant Agreement No. EAC - 2012 - 0634 Presented by Dr shyampatiar

2. Financial management

3. Financial management is based on: • LLP Project Handbook • EACEA FAQ and Toolkit • Recommendations from the EACEA • General quality standards in EU project management • Rules, frameworks agreed by the partnership

4. Eligible costs: • Incurred by member organisations of the partnership and recorded in its accountancy • Relate directly to the implementation of approved activities according to the work plan and are necessary for the execution of the project • Must be foreseen in the estimated budget • Activities must take place in countries eligible to the LLP • Identifiable, verifiable, reasonable and justified (value for money) • Generated during the projects lifetime (01 January 2013 to 31 December 2014) • Properly reported and documented by the beneficiary

5. In-Eligible costs: • Costs outside of the eligibility period • Costs which cannot be evidenced • Exchange rate losses • Return on capital • VAT (unless it can be recovered) • Costs already covered by other sources • Excessive or reckless expenditure • Opening and operating a bank account (transfer costs are eligible) • Costs for products without correct EU logo and disclaimer • Costs not timely recorded and paid

6. Eligible costs: Total Budget 1. Direct costs: 1.1 Staff 1.2 Travel and subsistence 1.3 Equipment 1.4 Subcontracting 1.5 Other costs 2. Indirect costs

7. Eligible direct costs: staff Definition: • Statutory staff (permanent or temporary contract) • Temporary staff, recruited through specialised agencies • Legal representatives of organisations (owners, members of board etc.) Calculation: • Real daily rates (according to national/institutional regulations, including social charges, holiday payments but NOT bonuses, incentives etc.) • Must not exceed the daily rate ceiling of the EU

8. Eligible direct costs: staff Justification: • Official declarations • Timesheets • Official payrolls • Proof of payment

9. Eligible direct costs: travel Definition: • Real travel costs of staff in connection with the project, provided most economical fares are used. Calculation: • Real costs • When using the car, the cheapest of the following ways: • €0.22 per km • Price of bus, train, plane ticket for the same distance Justification: • Copies of tickets/boarding passes, invoices/receipts, proof of payments

10. Eligible direct costs: subsistence Definition: • Subsistence costs for travelling staff in connection with the project covering meals, hotels and local travel • Maximum eligible days (number of working days + 1) Calculation: • Real costs (not exceeding ceilings of EU) • Lump sums (not exceeding ceilings of EU) Declaration: • Official declaration of way of calculation • Proof of attendance • Copies of invoices, receipts, bank transfer etc.

11. Eligible direct costs: equipment Definition: • Purchase, rent or lease of equipment (new or used), including installation, maintenance and insurance costs if needed for achieving the aims of the project Calculation: • Costs have to be written off in accordance with the tax and accounting rules applicable to the beneficiary • Only the portion of the equipment’s depreciation corresponding to the duration of the project and the rate of actual use. Declaration: • Offers, invoices and proof of payment

12. Eligible direct costs: subcontracting Definition: • Certain parts of the project carried out by an expert outside the partnership (e.g. translations, printing, evaluation etc.) Calculation: • Real costs based on one offer (up to €12,500) • €12,500 - €25,000 at least 3 tenders are required • €25,000 - €60,000 at least 5 tenders are required • For values over €60,000 national rules apply

13. Eligible direct costs: subcontracting Documentation: • Subcontract (including project name, project number, duration and content of activity subcontracted, calculation of costs, signatures of all parties involved, date of signing) • Invoice (including same issues as the subcontract) • Tenders (if applicable) • Proof of payment (copy of bank transfer) Note: subcontract costs are clearly dedicated to certain activities within the SSA-TC project – first of all, those activities have to be implemented before using this money for other activities.

14. Eligible direct costs: Other costs Definition: • All other direct costs, generally eligible and not covered by any of the categories above (travel costs for external experts, costs of conference/meeting organisation etc.) Calculation: • Real costs Justification: • Copies of invoices, receipts, offers etc. • Proof of payment

15. indirect costs: Definition: • Costs not directly linked to the project but still necessary for its implementation such as: • Administration (PC’s, laptops etc.) • Communication and infrastructure (telephone, internet, fax, rent etc.) • Office supplies • photocopies Calculation / Justification: • Lump sum (max 7% of total budget) – no justification needed important: • Only if beneficiary does not yet receive any operating EU grant

16. reporting: Issues of reporting: • Content development • Dissemination activities • Documentation and justification of expenditures Means of reporting: • Official formats of the LLP • Declarations provided by the promoter (for staff costs, subsistence, time sheets, VAT declaration etc.) • Certified copies of all invoices, receipts, contracts, tickets, boarding passes, bank transfers etc. Important: you are obliged to archive all originals for at least 5 years.

17. Reporting deadlines:

18. Contractual matters and cash flow

19. Contract matters and cash flow: • Contract between EACEA and beneficiary • Payment of first instalment from EACEA to beneficiary • Partner contracts with beneficiary • Payment of first instalment (20% of funds) to partners • Report I (15.07.2013) • Payment of second instalment (20% of funds) to partners • Report II - interim report (15.01.2014) • Approval of interim report and payment of third instalment (20% of funds) to partners • Report III (15.07.2014) • Payment of fourth instalment (20% of funds) to partners • Report IV - final report (15.01.2015) • Approval of final report and payment of fifth instalment (20% of funds) to partners

20. Any questions?

21. THANK YOU For your attention