How to Manage My EU Project?

1. How To Manage My EU Project 2. Kick off Meeting

3. Project Overview 4. ITU Time Registration Procedure

for EU Projects 5. ITU Cost Handling Procedure

for EU Projects 6. ITU Financial Management of

EU Projects

Annex 1: Timesheet Guide Annex 2: Cost handling Guide

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1. How to Manage My EU Project? The main premise of the content and use of the following procedures is the existence of a signed Grant Agreement. Pre award processes such as proposal and negotiation will not be included in the present document. This document describes and explains the processes connected to different events, documents and tools used when managing an EU project. We therefore touch upon procedures, key documents and tools developed for the purpose of efficient project management. The document is targeted at the EU Administrator (EU admin) as well as the Principal Investigator (PI) and other scientific personnel (project members) and plays a central part of the joint management of the project.

Project start-up

Kick off meeting

Tool; Project Overview document Tool; Gantt chart of project

Project management

ITU Time registration procedure for EU projects

Tool; Timesheet (Excel) Tool; Timesheet summary (Excel)

ITU Cost handling procedure for EU projects ITU Financial management and reporting of EU projects

Tool; Financial management (Excel)

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2. Kick Off Meeting When starting a new EU project (= when we have received a signed Grant Agreement from the EC) at ITU there will be a Kick-off-meeting with the administrative person (EU admin) from Research & Learning Support. The EU admin will initiate the meeting. The purpose of the meeting will be to define the specific needs for project management which of course will differ substantially. However certain project management documents and tools must always be applied. These documents and tools are available to the EU admin as templates on the S drive. In collaboration with the Principal Investigator (PI) they must be filled in with the relevant project information. The tools are made accessible to the PI and project members from a secure and shared location. However for the PI the tools are not equally relevant throughout the project. This will be explained in the following sections. 3. Project Overview The following section describes the Project Overview document, its use and content, and the Gantt chart tool applied to EU projects at ITU. The Project Overview is a document that is set up at the beginning of the project, i.e. when we have a signed Grant Agreement. It is the EU admin who starts up the document preferably at the kick off meeting where the EU admin and the PI will run through the Grant Agreement and Annex I together. The Project Overview contains all the specifics of the project and is the key reference document for the EU admin throughout the project period. It contains the following headlines.

Project Description Basic information and responsibilities (i.e. grant holder) Grant Agreement and annexes Amendments ITU Involvement (WPs and deliverables) Consortium Agreement Partners and key contact persons Staff and Organization (ITU) Tasks of TAP Economy (budget etc.) Monitoring/reporting Communication Log

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3. Project Overview continued Responsibility, use and purpose It is the responsibility of the EU admin that the project has such a document filled in. The kick-off meeting is thus set up with the intention to make sure that all information to the document is obtained. It is the responsibility of the EU admin to maintain the document throughout the life of the project and make sure that information on e.g. amendments, internal agreements and changes to the project is duly noted. The document is the key reference for the EU admin in the daily project management and especially valuable in potential handovers. The PI will not be expected to work in the document after the kick off meeting. The EU admin will use the document at the kick off meeting to get an idea of the need for management of the project in a dialogue with the PI. The project overview will of course always be made available to the PI upon request. For the purpose of easy editing, access and sharing, the project overview is placed in a Wiki called EUProjectsManagement which is only made available upon request. Here each EU project has a page that reflects the headlines given above on the Project Overview structure. The project overview document is continuously saved in the relevant project folder (project_overview) on the S drive as pdf. For audit purposes and to secure good administrative governance the project overview should be journalized together with all other relevant documentation when the project ends. This way we will be able to retrace and reconstruct large parts of the project events via e.g. the log section.

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3. Project Overview continued The Gantt Chart The Project Overview is supplemented by a Gantt chart in an Excel format visualizing the deadlines on the Workpackages and Deliverables for ITU. The Gantt chart is started up in parallel to the Project Overview and the Gantt enable the EU admin to access information on the project deadlines in a quick manner. Beside the purpose of better project management on the single project the Gantt chart is also set up to create an EU project portfolio tool for ITU. Hence the Project Gantt chart belongs to a grander Portfolio Gantt chart containing all the Project Gantts for EU projects at ITU thus enabling an overview of the deliverables and deadlines on a macro scale. This means that any changes in deliverables etc. must be made in the Project Gantt chart saved in the Portfolio. The Project Gantt chart does not contain any financial information beside the number of Person Months dedicated to the different workpackages. The financial information is restricted to the Financial Management tool described in section 6. Responsibility, use and purpose The same principles apply to the Project Gantt chart as for the project overview. It is the EU admin who is responsible for maintaining the Project Gantt in the Portfolio and makes the relevant updates. It plays a key part of the kick off meeting but after this meeting it is up to the PI how to use it – if at all. The Project Gantt chart is saved at the same location as the project overview, in the relevant project folder on the S drive. The Portfolio Gantt chart is saved in the EU admin folder on the S drive.

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4. The ITU Time Registration Procedure for EU Projects The following section describes the procedure of time registration at ITU and briefly presents the relevant tools to be applied (also see Annex 1). The main time registration principle at ITU Each person keeps their own time allocation as a basis for the registration of hours spent on the relevant project. The personal time allocation is done on a daily basis and is the responsibility of the individual researcher at ITU. The tools The Project member will be presented with a Timesheet Excel workbook to be filled in individually on a monthly basis. Each project member has an Excel workbook set up as his/her personal Timesheet. This will be set up by the EU admin at the beginning of the project. The Excel workbook will be saved at a shared location or be sent by email and be accessible to the persons working on the project. For audit purposes the project member must fill in these timesheets once a month or upon request of the EU admin. The project has an overall budget defining the number of Person Months/hours set aside for ITU. The EU admin will, in collaboration with the PI, allocate these hours from the overall budget to each project member making sure that all the budgeted hours are distributed. The allocation will appear on the “Your estimates” sheet. Please consult the Annex 1 to this guide for a description on how to use the “Your estimates” and filling in the timesheets. The allocation provides the EU admin with a way of following up on the spending of hours for each project member – thus ensuring that we “get the money spent”. To this end we have the Timesheet Summary Excel Workbook. This is primarily a management tool used by the EU admin but is of course available to the PI and project members. If possible it is kept in the same shared location as the individual timesheets. The purpose is to sum up all the hours spent on the project and make a quick follow-up toward the PM budget and allocations. The individual timesheets and the Timesheet Summary are independent of each other. This means that the Summary’s Data sheet is filled in by the EU Admin on the basis of the signed timesheets. Thus all the information on hours in the electronic timesheets are not registered until it has been printed dated and signed by the researcher and signed by the PI. The Data sheet in the Timesheet Summary is protected with a password chosen by the responsible EU Admin and thus cannot be altered by anyone but the EU admin or without permission.

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4. The ITU Time Registration Procedure for EU Projects continued Responsibility and tasks

The EU admin sends out a reminder email at the end of a given month. The project member fills in the relevant timesheet which he/she finds in the personal Timesheet Excel

workbook. The project member sends an email to the EU Admin to give notice that the timesheet is completed. The EU admin makes an administrative check-up. In case of errors or mistakes the EU admin will guide the

project member to make corrections. The project member print date and sign and collect the signature from the PI. The project member sends the signed original to the EU admin for further handling.

For the specific task of collecting timesheets a designated student worker can act as EU admin. The student worker will always have a direct contact with the EU Admin of the project in case of doubts, questions etc. In the case of the PI filling in timesheets it will be his/her superior at ITU who can sign the timesheet.

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5. The ITU Cost Handling Procedure for EU Projects The handling of costs in EU projects at ITU must live up to both national (ITU) and EU regulation. This means that the procedures must take into account the logics of the different types of regulation (ITU and EC). Additionally, when ITU participates in various consortia the coordinating institution will also have demands toward the level of detail when reporting costs. Hence, the procedure that is set up must meet the demands coming from several systems and regulations. What are costs…? Costs in the current sense are all the expenses of a project NOT related to Person Months. That would be e.g. equipment, travels, conference fees and consumables. … and what defines an eligible cost in FP7? EU project officers and in particular auditors evaluates expenses charged to a project by using the following criteria. They must be: actual; incurred by the beneficiary; incurred during the duration of the project; be essential for the performance of the project; indicated in the overall budget of Annex I (cf. Annex II, Art. II.14 ftp://ftp.cordis.europa.eu/pub/fp7/docs/fp7-ga-annex2-v6_en.pdf Always consult the relevant Model Grant Agreement when it comes to Annex II and III (Especially concerning REA – Marie Curie Projects). These can be found on the Cordis website http://cordis.europa.eu/fp7/find-doc_en.html). The main principle at ITU The EU admin must assign/approve all costs. This being bills, reimbursements and the like. This is done to assure quality and compliance to the above mentioned paradigms. Invoices in Ibistic ITU are now handling all Danish and international invoices electronically (DK invoices by applying the EAN number). A description of the handling of electronic invoices can be found at https://intranet.itu.dk/en/Intranet-hjem/Afdelinger/Okonomi-og-personale/Okonomi/betterinvoice. When receiving an international invoice (electronic or on paper) please send it to Finance who will then make sure to scan it and handle it in the Ibistic system. Ibistic cannot handle travel reimbursements and outlays. The handling of those types of expenses is described in Annex 2. 9

5. The ITU Cost Handling Procedure for EU Projects continued

1. Costs arise

•Project member raises claim and sends all relevant info to EU Admin

2. Costs checked and approved

•EU Admin receives and handles the claim

3. Booking of costs

•Accounting dep. receives, pays out and records claim

4. Financial management

• Claims become data from which we can create reports

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6. ITU Financial Management The purpose of this section is two-fold. It both describes the financial management tool set up by the EU admin and the procedure of a correct reporting to ITU, EC (and coordinator). Financial management The Financial Management tool (FM) sums up and draws information from the registration of hours and handling of costs in a way that enables a smooth accessible budget follow-up (for the PI as well as for the EU admin) and estimation of future expenses. As visualized below this means that the two “blocks” of expenses (PM and Costs) must feed information into this tool via the ITU accounting systems. All under the premise set by national (ITU) and EU regulation.

Project Budget

Actual Costs

Actual PM

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Follow-ups by Finance Salary expenses on FP7 projects are booked according to the hours registered on the timesheets. This means that the information on salary expenses in the accounting system will not be up-to-date at the time of the financial follow-up and therefore may represent invalid sums. Instead it is decided to calculate the hourly rate and time this with the hours registered on the timesheets. For this purpose Finance delivers the monthly salary paid out to the project member and the EU admin fills in the registered hours for by using the “Timesheet summary”. Other costs are extracted from the accounting system by Finance and inserted in the Financial Management tool. The frequency of the follow-ups will be established per project on agreement with Finance. The norm will be quarterly follow-ups or monthly (If this is deemed necessary by the EU admin due to under/overspending or project closing), preferably together with reporting to coordinator if such exists. Use and archiving The Financial Management tool is shared with the PI and is the basis of discussions on budget and spending. The EU Admin makes sure to save the current version of the Financial Management tool on the S drive in the relevant project folder. If the tool is also saved at a shared location the version on the S drive takes precedence. Naming the file follows the usual structure (i.e. <yymmdd> Financial Management <Project Acronym>). In case of significant alterations and moderations such as extension of project period or budget cuts the different versions are clearly marked by applying version no. (E.g. “YYDDMM Financial Management Project Acronym ver. 1” and “YYDDMM Financial Management Project Acronym ver. 2”). It is highly recommended to refer to these different versions in the project overview.

6. ITU Financial Management continued

The FM tool has five sheets and the tasks are roughly divided accordingly.

• Project particulars The EU admin fills in all the information on the basis of project overview and other documents.

• Financial Management The EU admin fills in budget information on the basis of Annex I and also maintains the section concerning Estimates.

• Pipeline other costs The EU admin fills in the rough expectations on spending, travel etc. on the basis of talks with the PI.

• Costs Finance fills in information on spending via the follow ups performed monthly or quarterly.

• Salary Finance fills in the actual monthly salary figures via the follow ups performed monthly or quarterly. The EU admin fills in the

actual spending of hours via the Timesheet Summary.

Responsibility and tasks

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6. ITU Financial Management continued

The section concerning the reporting of EU projects is not yet completed.

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Annex 1. Timesheet Guide When working on EU projects you must fill in your timesheets on a monthly basis registering your hours spent on the project. Remember also to fill in the number of hours not spent on the project in the far right column. When a month is finished you: a) fill out your timesheet (yellow line) if in doubt send the electronic version to you EU admin. b) print, sign and date and d) collect the PI’s signature before e) sending the signed original to the EU admin If you are not at ITU (away on secondments or exchanges) you will have to print, sign and send the timesheet per regular mail. If you are out of reach of a printer or ordinary mail service you can negotiate with your EU Admin to submit a pdf version of your timesheet as temporary proof or hours spent on the project, and consequently sign the timesheets on your return to ITU. Be aware scanned copies of your signature will not be sufficient for an auditor. Remember also to apply blue ink when signing. You apply the number of hours in the yellow cells just below the Workpackage title. Remember also to apply the relevant month in the yellow cell just above the WP numbers.

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If you need to know how much time has been allocated to you in the project please consult the “Your estimates” tab in the Excel file. Here you can see an estimate of how many hours on average we expect you to work each month - it is marked red. In the below example you will be working on Workpackage 4 (WP4) with an average of app. 40 hours a month. If you need to spend more or less than this estimate (more than +/- 30%) you must consult your PI and the EU admin.

Annex 1. Timesheet Guide continued

Mon

th

Time

NOT s

pent

on

proj

ect i

n %

Time

NOT s

pent

on

proj

ect i

n ho

urs

Time

NOT s

pent

on

proj

ect i

n PM

WP

4%

WP4

Hou

rs

WP4

PM

Tota

ls in

pro

ject

%

Tota

l hou

rs in

pr

ojec

t

Tota

l PM

in

proj

ect

TOTA

LS H

ours

TOTA

LS P

M

11 69% 89,18 0,69 31% 40,07 0,31 31,00% 40,07 0,31 129,25 1,00 12 69% 89,18 0,69 31% 40,07 0,31 31,00% 40,07 0,31 129,25 1,00 13 69% 89,18 0,69 31% 40,07 0,31 31,00% 40,07 0,31 129,25 1,00 14 69% 89,18 0,69 31% 40,07 0,31 31,00% 40,07 0,31 129,25 1,00 15 69% 89,18 0,69 31% 40,07 0,31 31,00% 40,07 0,31 129,25 1,00 16 69% 89,18 0,69 31% 40,07 0,31 31,00% 40,07 0,31 129,25 1,00 17 69% 89,18 0,69 31% 40,07 0,31 31,00% 40,07 0,31 129,25 1,00

15

Mon

th

Time N

OT sp

ent o

n pr

oject

in %

Time N

OT sp

ent o

n pr

oject

in ho

urs

Time N

OT sp

ent o

n pr

oject

in PM

WP 1

%

WP1

Hou

rs

WP1

PM

WP 2

%

WP2

Hou

rs

WP2

PM

WP 3

%

WP3

Hou

rs

WP3

PM

WP 4

%

WP4

Hou

rs

WP4

PM

WP 5

%

WP5

Hou

rs

WP5

PM

1 - - - - - - - - - - - - 2 - - - - - - - - - - - - 3 - - - - - - - - - - - - 4 - - - - - - - - - - - - 5 - - - - - - - - - - - - 6 - - - - - - - - - - - - 7 - - - - - - - - - - - - 8 - - - - - - - - - - - - 9 - - - - - - - - - - - - 10 - - - - - - - - - - - - 11 - - - - - - - - - - - - 12 - - - - - - - - - - - - 13 - - - - - - - - - - - - 14 - - - - - - - - - - - - 15 - - - - - - - - - - - - 16 - - - - - - - - - - - - 17 - - - - - - - - - - - - 18 - - - - - - - - - - - - 19 - - - - - - - - - - - - 20 - - - - - - - - - - - - 21 - - - - - - - - - - - - 22 - - - - - - - - - - - - 23 - - - - - - - - - - - - 24 - - - - - - - - - - - - 25 - - - - - - - - - - - - 26 - - - - - - - - - - - - 27 - - - - - - - - - - - - 28 - - - - - - - - - - - - 29 - - - - - - - - - - - - 30 - - - - - - - - - - - - 31 - - - - - - - - - - - - 32 - - - - - - - - - - - - 33 - - - - - - - - - - - - 34 - - - - - - - - - - - - 35 - - - - - - - - - - - - 36 - - - - - - - - - - - -

Example of “Your estimates” tab (large image)

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WP (All)

Row Labels Sum of P1 Timesheets Sum of P1 Allocated Sum of P2 Timesheets Sum of P2 Allocated Sum of P3 Timesheets Sum of P3 AllocatedAlexandru-Florin - 91,77 - 1.101,21 - 1.101,21 Andrzej 195,50 141,55 - 79,00 - 79,00 Annika 10,00 20,00 - 36,00 - 36,00 BudgetStefan Catalin - - - 734,16 - 1.101,24 Thorsten Berger 254,00 245,55 - 129,25 - - Alexandru-Florin Ass. 64,00 64,63 - - - - Stefan Catalin Ass. 0 80 0 160,27 0 0Grand Total 523,5 643,4925 0 2239,89 0 2317,45

0

200

400

600

800

1000

1200

Alexandru-Florin Andrzej Annika Budget Stefan Catalin Thorsten Berger Alexandru-FlorinAss.

Stefan CatalinAss.

Sum of P1 Timesheets

Sum of P1 Allocated

Sum of P2 Timesheets

Sum of P2 Allocated

Sum of P3 Timesheets

Sum of P3 Allocated

Values

Name

Sum of P1 Timesheets Sum of P1 Allocated Sum of P2 Timesheets Sum of P2 Allocated Sum of P3 Timesheets Sum of P3 Allocated

WP

Example of Timesheet Summary

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Outlays and travels There are two types of claims most commonly seen on EU projects and that is outlay claims and travel reimbursement claims. Both will go through the same procedure – more or less. Outlays

o When a cost occur the project member making the outlay must fill in the outlay claim, approve the cost and send it to the EU admin along with the receipts.

Travel reimbursements o When the project member returns from a project related trip he/she is to fill in the travel reimbursement claim within 14

days.

The EU admin will perform two overall tasks when receiving the claims: o Assign the cost in compliance with EC regulation (is the cost eligible?) and the ITU accounting principles (c.f. Annex 2). o Check spending up against project budget (using the Financial Management tool). If needed the EU admin will contact the PI

and get further information on the expectations of current and future spending. When handled by the accounting department the project member will be reimbursed and costs will appear in the ITU accounting systems. Various reports can then be created (Lippy, Combo etc.). The data from the accounting systems feed into the financial management tool which is described in the section “ITU Financial Management and Reporting of EU Projects”. Forms for outlay claims can be found here: https://intranet.itu.dk/en/Intranet-hjem/Afdelinger/Okonomi-og-personale/Okonomi/Blanketter The form for Travel reimbursement can be found here: https://intranet.itu.dk/en/Intranet-hjem/Afdelinger/Okonomi-og-personale/Okonomi/Tjenesterejser If the cost is below 20.000 DKK the EU admin can assign and forward the voucher directly to the accounting department. If over 20.000 DKK the EU admin will first have to forward the voucher to the Head of Research and Learning Support to get the required signature.

Annex 2. Cost Handling Guide

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Travel and work related meals Due to audit purposes when claiming travel expenses or other workshop expenses to the project please always include, the conference programme, an agenda or minutes of the meeting including list of participants to document relevance for the EU project. FP7 projects Why the 75/25%? FP7 projects is based on the principle of a grant towards the budget and paid as a contribution to actual costs. ITU is expected to co-fund a fixed percentage of the budget depending on the type of costs. Always consult the upper funding limits which are stated in the Grant Agreement Annex II or in the relevant workprogramme. A typical funding scheme on collaborative projects would be: 75% RTD

100% Management and Coordination & Support actions 50% Demonstration

Most of the FP7 projects at ITU will have two account strings for booking of eligible costs. The first includes a main activity number (for e.g. 75%) and the second a mirror activity number (for e.g. 25%). A third account string is used for non-eligible costs (such as VAT). For the VIP approving the expenses please add total amount that should be reimbursed. The TAP will distribute the expense between the project account string and the co-financing account string.

The exception being Marie Curie projects under the PEOPLE programme, which is 100% funding and a lump sum grant. Annex II Article II.16 ftp://ftp.cordis.europa.eu/pub/fp7/docs/fp7-ga-annex2-v6_en.pdf Always consult the relevant Model Grant Agreement when it comes to Annex II and III. - Especially concerning REA (Marie Curie) GA’s which also should be read in conjunction with the specific workprogramme. These can be found on the Cordis website http://cordis.europa.eu/fp7/find-doc_en.html and on the Participant Portal respectively.

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Horizon2020 projects The new Horizon2020 framework programme does not have the different contribution rates as in FP7. This means that all direct costs will be covered 100% . However always consult the specific workprogramme for the specific funding conditions.

Fin.konto: Sted/Place: Aktivitet/Activity:

Formål/Purpose:

Fin. Kilde:

The net amount is divided between the contribution rate of 75%…

xxxxx “VIP” 8xxx 12 30-39

… and the co-financing rate of 25%...

xxxxx 503 8yyy 11 11

… the identifiable VAT is booked separately

xxxxx 598 8yyy 11 11

Account string example for an FP7 project The text description field(bilagstekst) is important for accounting purposes and reporting in general and in particular on EU projects, where we per default always report on Activity level Work Package (WP )or Cost category (CC). When writing your ”Text” Please apply the following format: WP/CC, Name, City, Purpose, Description, Text example: WP7, Højgaard, Paris, 8-10/3/14, conference, flight tickets

It is NOT enough to forward the booking reservations for a hotel or the flight schedule for your flight in order to be reimbursed. You will always, as a minimum, need a proof of payment. Below you will find some examples of documentation required to substantiate your claim. Hotel expenses

o Receipts for “on site” payment or bank transcripts. Flight tickets

o Tickets (e-tickets are also ok) and receipts for payment of tickets (preferably boarding passes as well). Conference attendance (fee etc.)

o Receipts and proof of attendance - e.g. conference material, attendance list or own name on poster sessions Meetings (travels)

o Proof of attendance – e.g. attendance list, minutes of meeting, calendar transcripts etc. In short: Keep all the paperwork! You cannot expect to be reimbursed if you cannot provide ITU with any of the above.

What is sufficient documentation?

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Chart of accounts Below you will find a guide to the different accounts typically used when composing the account string.

Finanskonti (Finance account): Travel 227007 Course and conference fees 221001 Travel and subsistence (e.g. airfare, hotels) 221004 Danish hotels Meals & gifts 222001 Representation (restaurants) 222002 Representation (gifts) 228042 ITU cantina (work related) Hardware & software 226001 Hardware (DK&EU) 226004 Hardware (Outside DK&EU) 226006 IT consumables (e.g. USB sticks, CD-ROM ) 226002 Software (DK&EU) 226005 Software (Outside DK&EU) 226502 IT-services (e.g. domains, non-ITU hosted services) Other 228030 Books, journals ect (DK&EU) 228031 Books, journals ect.(Outside DK/EU) 228020 Inventory and audiovisual equipment 228001 Office supplies 227001 Telephone, internet and mobile (not hardware) 227015 Memberships 227003 Ads and graphic design 228006 Print jobs, externally 227023 Translation and language revision 227005 Delivery service, freight 227008 Other fees (e.g. postal, import tax) 227009 Purchase of service

Sted (Place): Identification number between: 202-398. Aktivitet (Activity): For projects a 4 digits identification number 8XXX (individual for each project). Formål (Purpose): For VIP dims always: 11 For projects always: 12 Fin.kilde (Source): For VIP dims always: 11 For projects between 31-36 (depending on the funding agency)

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Danish bills Foreign bills

Bills concerning anything else than hotels and restaurants

The gross amount is divided according to the co-financing %, e.g. 75/25. The accounting system automatically takes out the VAT/reduces the amount.

The identifiable VAT is deducted from the gross amount. The net amount is divided according to co-financing %, e.g. 75/25. The VAT is booked as non-eligible.

Hotel bills The gross amount is divided according to the co-financing %, e.g. 75/25. The accounting system automatically takes out/reduces the VAT by 50%. The remaining 50% VAT must be booked separately as “non-eligible”.

Ditto

Restaurant bills The gross amount is divided according to the co-financing %, e.g. 75/25. The accounting system automatically takes out/reduces the VAT by 25%. The remaining 75% VAT must be booked separately as “non-eligible”.

Ditto

The case of VAT According to EC regulation of FP7 funded projects VAT is a non-eligible cost and is defined as “identifiable indirect taxes including value added tax”. This means that we cannot claim the VAT for reimbursement by the EC. The above EC rule would not directly be an issue for the ITU since we get a national VAT refund. But there is an exception. According to Danish legislation, in the case of bills on representation and hotels not all VAT is refundable for ITU. This means that a certain percentage of the VAT on representation and hotels must be held by ITU itself. This creates a need to part the expense relating to the percentage of VAT that is not refunded by the Danish tax system. This also means that we can identify the following scenarios when handling a bill;

ftp://ftp.cordis.europa.eu/pub/fp7/docs/financialguide_en.pdf Foreign tax is (in theory) also refundable but claiming tax refunds abroad are not known to be practiced at ITU. For further accounting details such as booking of VAT and account strings please consult the Annex 2.

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VAT 19% Invoice 119 DKK – VAT 19 DKK

Fin.konto: Sted/Place:

Aktivitet/Activity:

Formål/Purpose:

Fin. Kilde: Net amount

VAT deducted DKK

All b

ills

- inc

ludi

ng h

otel

s and

re

stau

rant

s

The net amount is divided between the contribution rate of 75%…

xxxxx 234 8xxx 12 30-39 75

Man

ually

ded

ucte

d

… and the co-financing rate of 25%...

xxxxx 503 8yyy 11 11 25

Man

ually

de

duct

ed

… the identifiable VAT is booked separately

xxxxx 598 8yyy 11 11 19

Man

ually

de

duct

ed

When the VAT is identifiable (either amount or %) the EU admin may indicate it on the bill or accounting stamp. This helps the accounting to make the correct booking.

Table 1. Foreign bills

Concerning VAT EU considers all VAT as a non-eligible cost in terms of reimbursement. Therefore the VAT must be deducted and booked separately. To complicate the matters further Danish hotel and restaurant bills containing VAT must be handled in a certain way due to national regulation. Below you will find a detailed booking instruction to the different scenarios using a fictive amount of 119 DKK and 125 DKK, with 19% and 25% VAT respectively and a contribution rate of 75%.

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VAT 25% Invoice 125 DKK – VAT 25 DKK

Fin.konto: Sted: Aktivitet: Formål: Fin. Kilde: Gross amount

VAT deducted DKK

Booking method: Bi

lls c

once

rnin

g an

ythi

ng

othe

r tha

n ho

tels

and

re

stau

rant

s The gross amount must be divided between the contribution rate 75%…

xxxxx 234 8xxx 12 30-39 93,75 18,75 75% of the whole VAT

Auto

mat

ical

ly d

educ

ted

… and the co-financing rate of 25%

xxxxx 503 8yyy 11 11 31,25 6,25 25% of the whole VAT

Auto

mat

ical

ly

dedu

cted

Hote

l (50

% o

f the

VAT

is d

educ

ted

auto

mat

ical

ly)

The gross amount must be divided between the contribution rate 75%…

xxxxx 234 8xxx 12 30-39 93,75 9,38 75% of ½ the VAT

Auto

mat

ical

ly d

educ

ted

Auto

mat

ical

ly

… and the co-financing rate of 25%…

xxxxx 503 8yyy 11 11 31,25 3,12 25% of ½ the VAT

Auto

mat

ica

lly

dedu

cted

Au

tom

ati

cally

… lastly the remaining VAT is booked separately

xxxxx 598 8yyy 11 11 -

12,50 100% of ½ the VAT

Man

ually

bo

oked

Rest

aura

nt (2

5% o

f the

VAT

is d

educ

ted

auto

mat

ical

ly)

The gross amount must be divided between the contribution rate 75%…

xxxxx 234 8xxx 12 30-39 93,75 14,06 75% of ¼ of the VAT

Auto

mat

ical

ly d

educ

ted

Auto

mat

ical

ly

… and the co-financing rate of 25%…

xxxxx 503 8yyy 11 11 31,25 4,69 25% of ¼ of the VAT

Auto

mat

ical

ly

dedu

cted

Au

tom

atic

ally

… lastly the remaining VAT is booked separately

xxxxx 598 8yyy 11 11 - 18,75 100% of ¾ of the VAT

Man

ually

bo

oked

The exact amount does not need to be calculated by the EU admin but merely indicated clearly on the forms or in Ibistic by a second line. Calculated amounts are used in Tables 1 & 2 merely to create examples.

Table 2. Danish bills

25