Presentation Ljubljana 20041214

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Information about Presentation Ljubljana 20041214
Travel-Nature

Published on March 18, 2008

Author: craig

Source: authorstream.com

Slide2:  Introduction Transnationality Common goals Tangible Partnership Innovation General IIIB principles Slide3:  Transnationality Minimum requirements Difference between transnational issue and common issue Transnational investment General IIIB principles Slide4:  Common Approach Starting point for cooperation is a truly common problem or a chance Projects which are money driven nearly always fail General IIIB principles Slide5:  Tangible Results Innovative to the common benefit Impact on territory Visible and concrete Actions can be tangible General IIIB principles Slide6:  Partnership Guarantee on implementation Consistent and balanced Relate to the project objectives General IIIB principles Slide7:  Innovation Partnership The issue The approach The techniques General IIIB principles Slide8:  Content Important financial aspects in Application Form How to prepare an application Conclusion and tips Crucial Elements in Financial Assessment Slide9:  Introduction Certain aspects relating to finance and management are crucial to all IIIB programmes Difference between preparation phase and implementation phase Point of view JTS and Assessors Advice to International Steering Committee What aspects are closely looked at? Crucial Elements in Financial Assessment Slide10:  Important aspects Value for money Partnership / Contributions Budget consistency and transparency Financial management structure Crucial Elements in Financial Assessment Slide11:  Value for Money Crucial Elements in Financial Assessment Why important Proportionate Cost effectiveness Competiveness Penny wise, pound foolish Mix of finance and content related issues Slide12:  Partnership / Contributions Crucial Elements in Financial Assessment Balanced partnership Balanced contribution Early commitment from partners Letters of commitment Letters of intent Financial implications should be clear (also contribution to management) Slide13:  Budget consistency and transparency Crucial Elements in Financial Assessment Consistency between action plan / budget lines / total budget Detailed description of what will be done It can never be too detailed Public procurement and state aid rules must be complied with € 236.000 for services and purchases € 5.9 million for works De Minimus rule (€ 100.000 over 3 years to private companies) Slide14:  Financial Management Structure Lead Partner principle Centralised or Decentralised management system Co-ordination mechanisms / audit trail Reporting structure Finance project management costs Borne by lead partner (including co-financing) Borne by all partners (invoices to partners) Crucial Elements in Financial Assessment Slide15:  100 % commitment Appoint full time coordinator Political / managerial support Ensure unrestricted information flow across all partners Break budget and activity down to basic elements and agree Ensure that all partners agree action plan and budget responsibilities E.g. contribution to management costs and transnational activities Many projects have not specified the budgets for each partner further than required by the application form. This makes good financial monitoring difficult. How to prepare application form Slide16:  A well detailed partner budget should be broken down by: budget lines work packages or other sub-components of a project milestones or phases (in line with planned activities) Recommendation: prepare such details before presenting the application. Otherwise, immediately after funding approval Establish website (and use) Be professional No secrets How to prepare application form Slide17:  Conclusion and tips Keep regular contact with programme secretariat and partners A good application and action plan assists in implementation A problem shared is a problem halved Good preparation is an investment Preparation takes longer than assumed Proper control assists all participants and contributes to successful implementation The Devil is in the detail Crucial Elements in Financial Assessment Slide18:  Questions? Crucial Elements in Financial Assessment Slide19:  Contents Centralised vs. Decentralised Financial Reporting Procedures Audits Success factors (implementation) Financial Management Approaches Slide20:  Centralised vs Decentralised Lead partner bears overall responsibility Each individual partner responsible vs more responsibility for lead partner Centralised or decentralised internal/external audit Centralised or decentralised bookkeeping Agreements in Partner Agreement ! Financial Management Approaches Slide21:  Centralised Management System Centralised collecting of administrative and financial data One central budget for investments and common activities Partners contribute to central budget Advantage: Clear overview and constant monitoring Disadvantage: Lot of work Risk of creating ‘lazy’ partners Financial Management Approaches Slide22:  Decentralised Management System Each partner has own administration and budget Partners pay own invoices Keep own books Responsible for development and delivery of agreed projects Audited payment claims by internal auditor Financial Management Approaches Slide23:  Typical problems Often, partners are not familiar with Interreg reporting procedures and regulations. Frequent problems are: Incorrect or inconsistent currency conversion (using bank rates incl. charges instead of official rates; not applying rate of date of payment) Wrong calculation of staff cost (e.g. adding overheads; not based on specific salaries) Mistakes in manual transfer of figures from one to another form Wrong totals or changed wording in auditor confirmation sheet Unclear classification of expenditures by budget lines: expert cost under promotion or under experts, travel cost under conferences or under travel cost etc. Uncertainty regarding the eligibility of expenditure Conclusions: What can be done by the financial manager, should not be left to the partners Partners need regular assistance in preparing financial reports Financial Management Approaches Slide24:  Reporting procedures Half yearly reports Payment claim Activity Report Forecast Report Templates are obligatory Templates available from secretariat Financial Management Approaches Slide25:  Administrative requirements Reports costs actually incurred and related to the project Eligibility period Aggregated overview of expenses Per category of expenditure List of invoices Reference documents providing proof of payment (i.e. a print of the ledger or a print of your financial system which makes clear that invoices have actually been paid). Financial Management Approaches Slide26:  Reporting procedures 1. Financial manager sends individual files to partners containing: budget (detailed by work packages and budget lines) previously reported expenditure exchange rates for automatic conversion 2. Partner fills in the forms: staff unit cost rates and time sheets; individual expenditure made until 1.5 months before Interreg reporting deadline. 3. Partner sends audited and signed forms to Financial Manager for checking, together with copies of all invoices paid (duly numbered, indicating date of payment) Financial Manager checks, consolidates, prepares the summary report and sends it to the auditor (internal or external) Audited payment claim to secretariat Financial Management Approaches Slide27:  Reporting procedures All projects managed by Haute Finance have opted for decentralised auditing to limit the LPs risks: Each partners arranges auditor confirmation for his expenses Forms for partner auditor confirmations, although not requested by Interreg, are identical to the ones for the LP; LP arranges total-project auditor confirmation based on partners single confirmations and after auditing expenses from common account Financial Management Approaches Slide28:  Auditing The Interreg requirement: Interim reports may be audited internally (by auditor from another department of partner’s organisation than the one spending) Final report must be audited externally. In certain countries, a.o. Slovenia, there are ‘first level controls’ National cofinancing audited by Ministry of Environment, Spatial Planning and Energy (MESPE) Private cofinancing  audited by private auditor Financial Management Approaches Slide29:  Pros/ Cons internal / external Auditors Internal auditor may be cheaper (not always), but often is not familiar with Interreg regulations Many partners have a regular external auditor for their routine audits for their organisation. These auditors may do the Interreg auditing at moderate cost, but are often also not familiar with Interreg regulations. An external auditor, if not used for interim reports, may decide to audit all expenditures from the project start (at least by sampling). Then the total audit cost may be higher than using an external auditor from the beginning. External auditors specialised in Interreg/ Structural Funds are normally not chosen by the partners due to higher cost rates. This creates a higher burden on the financial manager to advise partners on how to interpret EU regulations. Financial Management Approaches Slide30:  Financial Management Approaches City council of Ljubljana Management budget (PMT) Partner 2 Partner 4 Partner N Partner 3 City of Ljubljana Audited Check on correctness and completeness Audit: - CCL - PMT - Total Alpine Space Secretariat Rosenheim Reporting Scheme Slide31:  Success factors Data design of management structure, (handbook creation) procedures is only the first step ! Main succes factor is IMPLEMENTATION of this structure. Succes factors for implementation are: involvement from partners, support for chosen structure and procedures, available resources within project for (financial) management and support from Lead Partner organisation. Financial Management Approaches Slide32:  Success factors Keep handbook concise / easy to read; keep it as simple as possible Instruct partners in meetings or face to face (bilaterals) Be available for questions and problems Arrange things in an early stage of the project Good cooperation between finance manager and others within the management structure of the project Financial Management Approaches Slide33:  MT Building bridges for expertise and knowledge transfer! Please don´t hesitate to contact MT for further information or visit MT’s website www.interact-eu.net/mt Feel free to contact also Hen Gerritse, hen.gerritse@hautefinance.nl Joep de Roo, joep.deroo@hautefinance.nl Slide34:  General Setup this afternoon Budget lines explanation Two relevant programmes CADSES Alpine Space Definition of budgetlines / applicants manual / guidelines Examples / practice Differences between programmes How to fill in the Appliation Form Introduction afternoon programme Slide35:  Budget lines Project Co-ordination Personnel / staff Meetings and seminars Travel and accomodation CADSES Programme Slide36:  Project Co-ordination Coordinating a transnational project business as usual? Specific difficulties? Easy to understimate? A job for the “left overs” in a organisation? Specific requirements for the managers? CADSES Programme Slide37:  Project Co-ordination CADSES Programme Tip: Present Co-ordination as separate action in Apl. Form Slide38:  Personnel / Staff is the archive staff of a organisation eligible? Is the personnel of your companies restaurant eligible? Message: be reasonable and transparant CADSES Programme Slide39:  Personnel / Staff Assigned to operation – additional activities Closely related to activities in activity plan Project manager/ Coordinator / Financial manager But also: communication, support, administrator. auditor, legal advice, content advice etc. Real salaries plus social security and other remuneration-related costs Based on payslips, timesheets CADSES Programme Slide40:  CADSES Programme Slide41:  Meetings and seminars Define the objectives of meetings and seminars Is a meeting on the Bahamas eligible? ’Again: be reasonable and transparant concercing the frequency and location CADSES Programme Slide42:  Meetings and seminars All costs related to organisation of meetings, seminars,conferences under this budgetline Rent of premises, equipment, translators Lunches, dinners etc. not covered by the DSA Tip: Use a time-related planning scheme and standard costs for meetings and seminars E.g. 3 thematic workshops (a € 3500) and 1 open seminar (a €15.000) each year CADSES Programme Slide43:  Meetings and seminars CADSES Programme Slide44:  Travel and Accomodation Costs related to international or national travel related to the project Important to keep all tickets, invoices and receipts (from the inception of the project) Not for travel in first class and overnight stay in 5* hotels Costs for overnight stays should not exceed the daily subsistence allowances given by commission http://europa.eu.int/comm/europeaid/perdiem/perdiem.pdf E.g. for Slovenia € 170 CADSES Programme Slide45:  Travel and accomodation CADSES Programme Slide46:  Coffee break Coffee break Slide47:  Budget lines External experts and consultants Infrastructure investments Equipment General expenses and others Alpine Space Slide48:  External experts and consultants Why? Is it the expertise or to fill in a shortage of own staff ? What? Content, finance, management? How? A coaching role? Alpine Space Slide49:  External experts and consultants Costs for hired expertise Research, studies, Management, Co-ordination, financial management Audit costs Public procurement rules Recommended maximum rate of € 700 - € 800 a day Alpine Space Slide50:  External experts and consultants Alpine Space Infrastructure investments:  Infrastructure investments wide definition. More than physical infra structure? Are computers for your project an investment? How can the renewal of a medieval church tower in a city be eligible in a transnational programme? Slide52:  Infrastructure investments Owing to limited resources, only small-scale infrastructure investments are eligible under INTERREG IIIB. Motorway, main road construction and other similar infrastructure are excluded. Remember the Structural Funds regulations, public procurement rules, State Aid rules, Community publicity and information requirements and environmental legislation. Who will be the owner of the investments? Alpine Space Slide53:  Alpine Space Slide54:  Equipment The project manager wants to lobby for the project and is invited for a gala dinner with the minister. He buys a smoking. Is this eligible equipment? Is this necesarry for a succesfull implementation? Consider the cheapest solution. Think also of leasing constructions Alpine Space Slide55:  Equipment Only equipment essential for the delivery of the project is eligible Computers, mobile phones, faxes etc Cost of depreciation During the project Alpine Space Slide56:  General costs and others Be carefull and do not consider it as the the project budget bin Also costs under this category need justification and they must be directly linked to the objectives of the project! Alpine Space Slide57:  General costs and others General costs should include office costs such as stationary (excluding staff and equipment),overheads (indirect costs such as electricity, rent and insurance calculated and charged tothe project on a pro-rata basis) and other eligible expenditure incurred during theimplementation of the project which does not fall under any of the other budget lines. Often limited to a maximum of 5% of the project’s total eligible cost. Alpine Space Slide58:  General costs and others Alpine Space Slide59:  Applicant’s manual / Guidelines for project promoters CIP and Programme Complement Guidelines for Interreg IIIB Community regulation 448/2004 (Eligibility of expenditure) 1159/2000 (Information and publicity) 1260/1999 (General provisions) 448/2001 (Financial corrections) Important documents Slide60:  Future for transnational cooperation A bright and sunny future Budget doubled Pre defined priorities Cooperation areas still under discussion 75 percent ERDF Less bottom up higher efficiency Conclusions and expectations Slide61:  MT Building bridges for expertise and knowledge transfer! Please don´t hesitate to contact MT for further information or visit MT’s website www.interact-eu.net/mt Feel free to contact also Hen Gerritse, hen.gerritse@hautefinance.nl Joep de Roo, joep.deroo@hautefinance.nl

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