Declaration and co financing Statement 1. Declaration and co financing statement signed and stamped by each ERDF partner (including the Lead Applicant and 20% ERDF, if any) in original! 2. Declaration on legal status, financial and legal responsibilities 3. Commitment to provide the 15,00 % public contribution to the project 4. Sources of funding: State contribution and the name of the public institution providing the contribution Own public contribution contribution and if relevant of which in kind Other public contribution and the name of the public institution providing the contribution State contributions: only in case the member state/partner state provides (by automatic or by specific calls) national public contribution at state level for the project selected by the MC, the amount indicated as state contribution will be reimbursed to the project partner
Declaration and co-financing Statement for Project Partners applying for ERDF funding under the SEE Transnational Programme Title and acronym of the project: <insert title, acronym> In the event of approval of the above mentioned project applying to the SEE Transnational Programme the <insert the name of partner institution in English >, states that has the legal status of public authority body governed by public law body governed by private law commits itself to the project, and intends to provide EUR <insert amount> as public co-financing to the project s budget as follows: State contribution 1 EUR <insert amount, if applicable> From < insert name of the contributing institution, if applicable> Own public contribution EUR <insert amount, if applicable> of which in kind contribution 2 : EUR From < insert name of the contributing institution, if applicable> Other public contribution EUR <insert amount, if applicable> From < insert name of the contributing institution, if applicable> declares that it is not under a bankruptcy proceedings, bears full legal capacity and is financially reliable, and that its foundation and activities are in line with the respective national legislation; confirms that no expenditure related to the above mentioned project has been, is or will be funded by any other EU funded programme; declares to accept the obligations as a partner deriving from the Subsidy Contract, which will be signed by the Lead Partner of the project after the approval. commits itself in following the relevant public procurement rules (EC and national) and in making the results available to the public according to the requirements of the Subsidy Contract, which will be signed by the Lead Partner of the project after the approval. Signature Date Name and title of the Signatory (Official stamp of the institution) 1 To be filled in only in case the member state/partner state provides (by automatic or by specific calls) national public contribution at state level for the project selected by the Monitoring Committee, therefore the amount indicated as state contribution will be reimbursed to the project partner. 2 Only project partners with a legal status of public authority or body governed by public law are eligible for in kind contributions.
Data sheet on the Member state responsible body 1. Data sheet on the Member state responsible body signed and stamped by each 20% ERDF partner (if any) in original. 2. Information on: 1. Designated controller = First level control body. For the decentralised control systems the control coordination body shall be given. 2. Responsible national body for the submission of Verification Report = National body/authority which provides information on the compliance of the control system, collects information on the state contribution paid, irregularities detected at national level 3. Responsible national body for repayment 4. Responsible national body for Audit = second level audit body 3. If no data sheet is attached (or not complete) the participation of the concerned 20% ERDF Partner will be rejected
Data sheet on the Member State Responsible Bodies On behalf of the 20% ERDF partner, I declare, that our organisation intend to participate in the project Acronym as 20% ERDF Partner, from country. Being located in an EU Member State outside the SEE Programme s area, as condition of our participation in the project, I hereby provide the information on the responsible bodies at national level, involved in other transnational or interregional European Territorial Cooperation programmes. 1. Designated controller according to Article 16 of the Regulation (EC) No 1080/2006 (First level control body. For the decentralised control systems the control coordination body shall be given.) Organisation: Address: Responsible person and position: Contact person: Phone: Fax: E-mail:
Application: financial planning Lead Applicant Seminar Budapest, 9 June 2010
Main Issues 1. Bottom up budget planning 2. Thresholds as eligibility criteria 3. Special budget items 4. Spending forecasts 5. Financial management of the project
1. Bottom up budget planning 1. Plan the project activities and define the role of partners for each activity (Work Packages and Activities sheet) 2. Plan the costs for each activity, which will define: the total budget for each work package the budget of each partner per work packages 3. Build up the ERDF partners budgets on the basis of their activities per work packages by defining the costs per budget lines for each WP 4. The budgets of the ERDF partners will produce the total budget overview for ERDF partners per budget lines and per work packages 5. Build up the IPA partners budgets on the basis of their activities by defining the costs per budget lines for each year of the project period (in line with the time plan given in Work packages and activities sheet)
2. Thresholds as eligibility criteria 1. ERDF and IPA co financing rates per partners shall be 85,00 %. 2. Costs for the preparation of the approved project cannot exceed 2% of the total eligible expenditures of the project or 40.000 EUR whichever is reached earlier. 3. Overhead costs can not exceeding 20 % of the staff costs. This rule should be respected by project partners (ERDF) as well. 4. The amount of in kind contribution per partners cannot covered by ERDF and state contribution. 5. Max. 10% of the ERDF funds can be allocated to Non EU activities. 6. Max. 20% of the ERDF funds can be allocated to EU partners located outside the programme area. 7. The purchase of land shall be justified and it can not exceed 10% of the total eligible costs for the ERDF Project partners of the project concerned.
Preparation costs (PM 4.1.8.) 3. Special budget items 1. Eligibility in time: incurred on or after the 1st of January 2007 and before the approval date of the Application Form 2. Paid before the end date of the first reporting period 3. Restricted to budget lines staff costs, travel and accommodation costs and external expertise and services In kind contributions 1. Only public bodies and bodies governed by public law (in case they are financed by public funds) 2. In kind contribution can not be reimbursed from ERDF funds and state contributions. The amount of in kind contribution can not be higher than the own public contribution.
10% ERDF flexibility rule (PM 4.1.8.) 3. Special budget items 1. Activities implemented outside the EU but within the programme area by the ERDF Partners 2. Activities implemented outside the EU but within the programme area for the involvement of the 10% Partners 3. Costs shall be clearly planned in the budget of the ERDF LP or ERDF PP and shall be paid and validated by the ERDF LP or ERDF PP 4. Restricted to budget lines travel and accommodation and external expertise and services
20% ERDF flexibility rule (PM 4.1.8.) 3. Special budget items 1. Involvement of the partner as Financing Partner: 20% ERDF Partner Separate budget and related financial responsibility Same budget lines as the ERDF Partners Conditions for participation, Data sheet on the MS Responsible bodies of the potential 20% ERDF Partner 2. Involvement of the partner as strategic partner: EU Associated 20% 1. Without separate budget but significant strategic role within the project. 2. Restricted to budget lines travel and accommodation
3. Special budget items Common costs (PM 4.1.5.) 1. Common costs is only possibility for the financing of common activities within the project, but not obligatory. Check if it is really needed! 2. Common costs allowed only for Budget lines staff and external expertise and services. Use sub contracted activities for the transparency of the financial management of the project! 3. Check the rules on public procurement of the responsible partner and involved partners before deciding on the method for handling of common costs. 4. Always consult the controllers of the partners involved in the common activity on the national eligibility rules! 5. Be aware that the relevant share of the common cost has to be transferred by all partners involved in the common activity to the responsible partner before submitting the expenditure for validation to the controller. Only paid expenditure can be validated by the controllers Deductions by the Lead Partner from the ERDF contribution of the Project Partners are not allowed! 6. Complete the article on the management of common costs in the Partnership Agreement if needed.
3. Special budget items Control costs Requirements by the SEE Programme: The Project partners are responsible separately for having their expenditure validated. The Lead Partners are not requested to appoint a controller for checking the expenditure declared by the project partners, thus the Controller of the Lead Partner is responsible only for the validation of the Lead Partner s expenditure. Requirements by the national control systems: Control costs has to be planned under the budget line external expertise and services, only by the Project Partners where the control system is decentralised (independent external controller involved): AT, BG and ITA In centralised systems, the verification of expenditure is ensured free for the project partners: GR, HU, RO, SLO, SK Check the Information on the national control systems on the website!
Spending forecasts What is the spending forecast? It is a plan which presents the project expenditure to be incurred and paid by the project partner(s) divided by reporting periods. The spending forecast has to be planned carefully by each ERDF project partner, has to be in line with the time plan of the project and has to be realistic. The spending forecast given at partner level will produce the project spending forecast. Periods cover generally 6 months. Periods will be automatically set for the given project by the system. Why is it important? The projects spending forecast will be the basis for cash flow planning of the Programme s budget and will be used to check the n+3 risk of the Programme. The liquidity of the programme therefore the fluency of payments to the projects depends on the spending of the projects!
Spending forecasts Subsidy contract and the project spending forecast The project spending forecast will be part of the subsidy contract for the successful applicants, and will remain unchanged for the whole project period. The LP has the possibility to deviate from the spending forecasts considering that in case of underspedings compared to the spending forecasts, the MA is entitled to decommit the project by reducing the original project budget and the corresponding ERDF contribution. In case of decision on the decommitment of the project, the MA initiates the amendment of the Subsidy Contract. The Addendum to the Subsidy Contract has to be signed by both parties. Ideal project spending forecast : Reach 55 % spending for the end of the 3rd reporting period.
Project Partners collect documentation proving their expenditures, and get them validated according to the national control system Partner 2 Partner 3 Partner 4 Financial management of the project Partner 1 Expenditures validated at national level by the Controllers Lead Partner (LP) verifies that the expenditures presented has been validated by the controllers LP prepares Progress report and Application for Reimbursement and submits to the JTS Joint Technical Secretariat Verification of Progress reports and Application for reimbursement + Declarations of the Controllers LP Deadline: 3 months from the end of the reporting period! Initiation of the reimbursement process by submitting the verified AfRs to the FTU Financial Transfer Unit Reimbursement of ERDF contribution to the LP Approval + reimbursement procedure cca. 3 months! LP transfers ERDF contribution to Project Partners