BSR INTERREG IIIB NP Project „AGORA“

1. Project approved as Baltic 21 Lighthouse Project Project part-financed by the European Union within the BSR INTERRREG IIIB Neighbourhood Programme BSR INTERREG IIIB NP Project „AGORA“ Review of the 2nd Progress Report and Outlook on Further Reporting Demands 3rd AGORA Meeting, Nida, 11 October 2006 Jens Masuch Landgesellschaft Mecklenburg-Vorpommern mbH Financial Manager BSR INTERREG IIIB Project „AGORA“

2. Structure of the Presentation Review of 2nd Progress Report Measures to Catch up with the Spending Plan Interim Financial Report Schedule/Procedure for the 3rd Progress Report Specific Problems Question Time

3. Review / State of the 2nd Progress Report Process • 23 June: reporting forms sent out to partners • 31 July: 5 out of 25 certified partner reports submitted • 06 Oct: summary progress report submitted to the INTERREG JS • main problem: centralised auditing in EE, LV, PL • Oct - Dec: clarification process (LP – INTERREG JS) • in Jan/Feb 2007: reimbursement of ERDF funds to LP > PP Reported activities / costs • Little deviations: most of planned activities were carried through • Spending level: 82 % of planned budget has been spent

4. Measures to Catch up with the Spending Plan There is a concreterisk of loosing non-spent funds for AGORA (“decommitment”) • The spending level in MS 1/2 was only ~ 80% (120.000 EUR not spent!) • the planned budget in MS 3 is almost as high as in MS 2! • critical expenditures like external expertises/investments are still due • All projectpartners really have to stick to their budget plans from now on • spend all remaining funds from MS 1+2 before 31 Oct 2006 • spend as much as possible of your budget for MS 3 until 31 Oct 2006 • useall planned budget for MS 1-3 until 31 Dec 2006! • Please take the following measures: • do not hesitate to spend money earlier than planned (but inform us!) • keep at leastyour total spending targets in the milestones, • if youcannot spend enough in one BL in this MS, consider to spend more than planned in another BL (but inform us, we advise you!) • plan subcontracting / public procurement procedures for external expertises / investments now for the rest of the project period

5. Interim Financial Report We have to draw up an additional “interim” financial report covering the period 1 July – 31 Oct 2006 (demanded by the INTERREG JS) • it does not result in a payment claim, it is just for informing the JS • very important tool for avoiding decommitment! • with this report you have to consume non-spent funds from MS 1+2 + shall spend as much as possible from your MS 3 budget Procedure: • It consists only of a financial report, no activity report required • The report has not to be audited/certified (only indicative), no pre-checks • You have to fill in ordinary FR forms, and you can continue with them for drawing up your regular 3rd progress report (> two-step procedure for 3rd PR) Schedule: • 26 Oct 2006: Reporting forms will be sent out to the project partners • 06 Nov 2006: Deadline for submitting the partner reports • 15 Nov 2006: Deadline for submitting the summary report to the JS

6. Optimising the Procedure for the 3rd (regular) Report Compulsory pre-check procedure (> dialogue!) • provide us with copies/scans of supporting documents for the pre-check • we will give you advice / help (e.g. allocation to WPs) + an “official OK” New differentiated deadlines for submitting partner reports • PPs from PL, EE: submit pre-checked partner report to national auditors until 19 Jan 2007 • PPs from LV: try to arrangeyour audit datebetween 20/25 Jan 2007 and submit yourcomplete pre-checkedpartner report in time • PPs from DE, SE, DK, FI, LT: submit your certified partner report to the Lead Partner until 31 Jan 2007 Plan your reportingcarefully in the face of your deadline • take into account that we need up to 5 working days for the pre-check • Only if the pre-check + dates are kept and proved, we can wait for your reports • PL, LV, EE: ask your auditors for a confirmation of receipt + send it to us!

7. Schedule 3rd (regular) AGORA Progress Report Milestone 3 / Reporting Period 1 July – 31 Dec 2006 • 15 Dec 06: Distribution of pre-filled reporting forms • forms will already contain the items reported in the interim FR! • Jan 07:Pre-checks are carried through (dialogue PM – PP) • Note: We ask you to hand in copies/scans of selected supporting documents at this point, this helps to minimise mistakes • 19/25 Jan 07: PP from EE, LV, PL submit pre-checked PRs to auditors • Feb 07: Submission of signed + audited 3rd partner PR (PPs > LP) • 1 March 07: Submission of 3rd AGORA summary PR (LP > JS) • April - June 07: Check of AGORA summary PR by the JS, clarifications • ~ June / July 07:Payment of ERDF funds to LP trustee account • immediate transfer of respective funds to the individual PPs

8. Specific Problems / FAQs (1) Check the dates your auditor inserts in the auditor confirmation text beforesubmitting the signed original version of your partner report to us • This is the main source of mistakes and reason for corrections! No original signed time sheets/staff cost calculation demanded by the LP • copies/scans with signaturesare sufficient BL 6 (other costs) and BL 7 (investments) • the specified items are binding, no changes are possible • the total amounts are binding, it is not possible to exceed them • if an item is cheaper then planned, the remaining money is deducted

9. Specific Problems / FAQs (2) Payment of your shares on overall coordination costs • Costs for MS 1+2 have been invoiced this week Changes in the budget plans • we will not revise partner budget plans at this point but further monitor your spendings • inform us about changes as soon as they occur > informal ok (e-mail) • we will keep an eye on this + take measuresif necessary and when possible Non-spent funds from MS 1+2 • You can use them in MS 3 until 31 Oct 2006, but we have to expect that this will not be possible in the next periods anymore (> danger of decommitment)

10. Last but not least... Question time!

11. Contact / Further Information Jens Masuch Financial Manager BSR INTERREG IIIB Project „AGORA“ Landgesellschaft Mecklenburg-Vorpommern mbH Lindenallee 2a D-19067 Leezen Germany Tel. +49 3866 404 374 E-mail: jens.masuch@lgmv.de Please do not hesitate to contact me! Thank you very much for your attention!