FINANCIAL TRAINING

Aviation Grants 2. Call Katarina Langer

Agenda

• Grant amount and reimbursement rates• Financial reporting• Payments• Communication• Amendments

• Your questions

Disclaimer

This presentation is our interpretation of the rules. We made a selection and are talking about those that we find are the most important ones – we do

not cover everything.

Information included here is not legally binding.

We would strongly urge you to read through the rules in the Grant Agreement you signed.

Timeline

Start of the

project

End of the

project

End of 1st

period

60 days30 days 60 days

Submission of interim financial

reportingPayment of

pre-financing

Submission of final financial

reporting

Payment of final payment

Payment of interim

payment

Grant amount and reimbursement rates (Art. I.3)

• Maximum grant amount in Article I.3 of GA

• Reimbursement rate: 60%

• 2 types of costs:– direct costs => Actual costs– Indirect costs => 7% flat-rate

Reporting periods

• 1 or 2 reporting periods depending on the length of the project

• If 2 periods then project split in half

Financial reporting – general

• Depends on number/length of reporting periods• After each period:

– You must submit financial reporting (within 60 days)– GSA will issue a payment (within 90 days)

Financial reporting – documents

• Financial reporting – required documents:– Financial statement and explanation on the use of

resources (EOR), i.e. breakdown of the costs– Signed declaration on honour– Certificate on the financial statement (if

applicable)

Financial reporting – documents

• Financial reporting – required documents:– Financial statement and explanation on the use

of the resources (EOR), i.e. breakdown of the costs

– Signed declaration on honour– Certificate on the financial statement (if

applicable)

Financial reporting – financial statement I.Estimated

eligible direct costs

Estimated eligible indirect costs declared on the basis of flat rate of 7% of 1. + 2. w/o subcontractor and costs of third parties not working on

beneficiary premises

Total estimated eligible costs

Total requested GSA grant at the maximum reimbursment rate of

60% of total costs

(EUR) (EUR) (EUR) (EUR)

A B C = A +B D = 60% x C

Direct eligible costs (Numbering of categories as in "Eligible Direct Costs" section 11.2 of the Call for Proposals - apply the rules detailed thereunder)

1. PERSONNEL COSTS1.1 Personnel under direct empl. contract 0.00 € 0.00 € 0.00 € 0.00 €1.2 Personnel under other than under empl. contract (in-house consultants) - under instructions and on premises of the beneficiary, results belonging to the beneficiary, and costs not significantly different from beneficiary staff performing similar tasks

0.00 € 0.00 € 0.00 € 0.00 €

Sub-total for cost category 1 0.00 € 0.00 € 0.00 € 0.00 €2. OTHER DIRECT COSTS2.1 Meetings costs 0.00 € 0.00 € 0.00 € 0.00 €2.2 Travel costs 0.00 € 0.00 € 0.00 € 0.00 €2.3 Costs for equipment and other assets procured for the actiona) Full purchase costs 0.00 € 0.00 € 0.00 € 0.00 €b) Depreciation costs 0.00 € 0.00 € 0.00 € 0.00 €2.4 Costs for equipment or other assets not procured but used for the action

0.00 € 0.00 € 0.00 € 0.00 €

2.5 Costs for rental or lease of equipment or other assets only to the portion of use and limited to the duration of the action

0.00 € 0.00 € 0.00 € 0.00 €

2.6 Costs for use of technical facilities or laboratories 0.00 € 0.00 € 0.00 € 0.00 €2.7 Costs for consumables and supplies 0.00 € 0.00 € 0.00 € 0.00 €2.8 Costs arising directly from requirements imposed by the grant agreement

0.00 € 0.00 € 0.00 € 0.00 €

2.9 Costs relating to a pre-financing guarantee lodged by the beneficiary of the grant2.10 Costs relating to external audits 0.00 € 0.00 € 0.00 € 0.00 €2.11 Costs entailed by subcontracts as described in the proposal

0.00 € 0.00 € 0.00 € 0.00 €

2.12 costs of financial support to third parties 2.13 Duties, taxes and charges paid by the beneficiary 0.00 € 0.00 € 0.00 € 0.00 €Sub-total for cost category 2 0.00 € 0.00 € 0.00 € 0.00 €Total direct eligible costs 0.00 €Total indirect eligible costs (+7% of total direct eligible costs)

0.00 €

Total eligible costs 0.00 €5. Total EU contribution 0.00 €

REIMBURSEMENT OF ELIGIBLE COSTS

Not applicable in this call for proposals

Not applicable in this call for proposals

Financial reporting – financial statement II.

Eligible direct costs Eligible indirect costs Total eligible costs Total requested GSA grant

(EUR) (EUR) (EUR) (EUR)A B C = A +B D = 60% x C

Direct eligible costs (Please refer to Article I.8 and II.19.2. of Grant Agreement - apply the rules detailed thereunder)

declared on the basis of flat rate of 7% of 1. + 2. without costs of

subcontractors, costs of third parties not working on beneficiary premises and costs of financial support to third

parties

Total requested GSA grant at the maximum reimbursment rate of 60% of

total costs

1.1 Personnel under direct empl. contract 0.00 € 0.00 € 0.00 € 0.00 €1.2 Personnel under other than empl. contract (in-house consultants) 0.00 € 0.00 € 0.00 € 0.00 €

Sub-total for cost category 1 0.00 € 0.00 € 0.00 € 0.00 €

2.1 Costs for equipment and other assets procured for the action

0.00 € 0.00 € 0.00 € 0.00 €

2.1.a) Full purchase costs 0.00 € 0.00 € 0.00 € 0.00 €2.1.b) Depreciation costs 0.00 € 0.00 € 0.00 € 0.00 €

2.2 Costs for equipment or other assets not procured but used for the action (depreciation costs)

0.00 € 0.00 € 0.00 € 0.00 €

2.3 Costs for rental or lease of equipment or other assets only to the portion of use and limited to the duration of the action

0.00 € 0.00 € 0.00 € 0.00 €

2.4 Costs for use of technical facilities or laboratories 0.00 € 0.00 € 0.00 € 0.00 €

Sub-total for cost category 2 0.00 € 0.00 € 0.00 € 0.00 €

3.1 Travel costs 0.00 € 0.00 € 0.00 € 0.00 €3.2 Costs for consumables and supplies 0.00 € 0.00 € 0.00 € 0.00 €3.3 Costs arising directly from requirements imposed by the grant agreement

0.00 € 0.00 € 0.00 € 0.00 €

3.4 Costs relating to a pre-financing guarantee lodged by the beneficiary of the grant3.5 Costs relating to external audits

3.6 Duties, taxes and charges paid by the beneficiary 0.00 € 0.00 € 0.00 € 0.00 €

Sub-total for cost category 3 0.00 € 0.00 € 0.00 € 0.00 €Sub-total for cost category 2 and 3 0.00 € 0.00 € 0.00 € 0.00 €

4. Subcontracting 0.00 € Not applicable 0.00 € 0.00 €Sub-total for cost category 4 0.00 € Not applicable 0.00 € 0.00 €

5. Costs of financial support to third parties 0.00 € Not applicable 0.00 € 0.00 €Sub-total for cost category 5 0.00 € Not applicable 0.00 € 0.00 €

Total direct eligible costs 0.00 €Total indirect eligible costs 0.00 €Total eligible costs 0.00 €5. Total EU contribution 0.00 €

1. PERSONNEL COSTS

2. EQUIPMENT

4. SUBCONTRACTING

3. OTHER DIRECT COSTS

5. COSTS OF FINANCIAL SUPPORT TO THIRD PARTIES

Not applicable

Financial reporting – financial statement III.

• Submission in 2 steps:1. In electronic version – full excel

• GSA will check for consistency, correctness, etc.• GSA may request supporting docs for some of the

costs/transactions

2. In original paper signed version – only 1st tab: financial statement• GSA will use it as basis for payment

Financial reporting – documents

• Financial reporting – required documents:– Financial statement and explanation on the use of

the resources (EOR), i.e. breakdown of the costs– Signed declaration on honour– Certificate on the financial statement (if

applicable)

Financial reporting – declaration on honour

• Signed declaration on honour where you confirm:– Absence of double funding from EU sources– Eligibility of the declared costs – Art II.19 of GA– Adherence to rules for procurement when

selecting subcontractors/contractors i.e.:• best value for money, • sound financial management, • absence of conflicts of interests

Financial reporting – documents

• Financial reporting – required documents:– Financial statement and explanation on the use of

the resources (EOR), i.e. breakdown of the costs– Signed declaration on honour– Certificate on the financial statement (if

applicable)

Financial reporting – Certificate on the financial statement (Art. II.23.2.d)

• If total requested contribution from GSA is above 325,000 EUR

• Certificate from external auditor• Template for certificate in Annex VII of GA• Cost is eligible for reimbursement

Payments (Art. I.4.1)

• Pre-financing: 20% of grant– after signature of the GA

• Interim payment: up to 60% of grant– After the end of interim (first) period– After submission of financial reporting– If 30% of grant has been spent/incurred– After GSA check of submitted financial reports

• Final payment: reminder of the eligible grant (20-80%)– After the end of the project– After submission of final financial reporting– After GSA check of submitted financial reports

GSA check of financial reports

• Check of EOR– Filled in fully– Correctly filled in– Comparing against budget tables submitted during

proposal– Check of eligibility of costs (compliance with Art. II.19.1)– Calculations make sense– Selection of transactions for sampling– Check of submitted supporting docs for sampled

transactions

GSA check of financial reports

• Check of EOR– Filled in fully– Correctly filled in– Comparing against budget tables submitted during

proposal– Check of eligibility of costs (compliance with Art. II.19.1)– Calculations make sense– Selection of transactions for sampling– Check of submitted supporting docs for sampled

transactions

Eligible costs (Art. II.19.1)

• Actually incurred by the beneficiary• Incurred (spent) during the project duration• Indicated in the estimated budget set out in B2 form

Incurred in connection with the project as described in Annex 1 and necessary for its implementation

• Identifiable and verifiable – in beneficiary’s accounts• Comply with the applicable national law on taxes,

labour and social security• Reasonable, justified and comply with the principle of

sound financial management

Eligible costs

• Only costs incurred by:– Beneficiary– Subcontractor mentioned in Annex 1– Affiliated entity mentioned in Annex 1

If anybody else is spending costs in the project inform GSA immediately – otherwise the costs will not be eligible/reimbursed

GSA check of financial reports

• Check of EOR– Filled in fully– Correctly filled in– Comparing against budget tables submitted during

proposal– Check of eligibility of costs (compliance with Art. II.19.1)– Calculations make sense– Selection of transactions for sampling– Check of submitted supporting docs for sampled

transactions

Calculation of personnel costs

Actual Personnel Cost = Hours worked for the project x Hourly rate

Total annual personnel costs

Annual productive hoursHourly rate =

where

• The hourly rate is calculated per financial year• If the financial year is not closed at the time of reporting, the

beneficiary must use the last closed financial year available.

Equipment costs

• 3 possibilities how to declare:− depreciation costs− full purchase costs− renting or leasing cost (financing fees not eligible)

• Depreciation:− in line with the beneficiary’s usual accounting practices and with

international accounting standards

• Possible to declare:− Equipment not used exclusively for the action (% of usage applies)− equipment bought before the action start (adequate no of months used

for the project must be specified)

Cost of equipment/ useful life (in months) * no of months used for the project * % of usage for the project

Eligible only if • Mentioned in Annex I. (Description of project) and

Annex III. (Budget)• Covers only limited part of the project• Necessary for the implementation of the project

Subcontracting between beneficiaries is NOT allowed

Subcontracting costs (Art. II.10)

GSA check of financial reports

• Check of EOR– Filled in fully– Correctly filled in– Comparing against budget tables submitted during

proposal– Check of eligibility of costs (compliance with Art. II.19.1)– Calculations make sense– Selection of transactions for sampling– Check of submitted supporting docs for sampled

transactions

Supporting docs for sampled transactions

• Necessity to have supporting docs for every cent spent on the project

• List of minimum supporting docs. will be sent

Communication I.

GSA communicates only with the coordinator of the project

Project Coordinator

Partner Partner Partner Partner

GSA Project Officer

GSA Grants officer

GSACall coordinator

Technical reviewer

European Commission

Mono/multi beneficiary projects

Communication II.

All payments are paid to the coordinator who is responsible for re-distribution among the beneficiaries in the consortium.

Needed if:• Change in tasks• Change of reporting periods• Change of coordinator• New beneficiary• New subcontractor• etc.Coordinator to inform GSA immediately if there is a change.

Amendments

Thank you!katarina.langer@gsa.europa.eu

Any questions?