WORKSHOP ON JOINT ACTION 2011 - Choisir une...
Transcript of WORKSHOP ON JOINT ACTION 2011 - Choisir une...
Content of the presentation
1. General information
2. Budgetary aspectsExpenditures & Incomes
3. Financial Viability Information‘Balance sheet’ and ‘Profit & Loss account’
4. Supporting documents to attach yourproposal
5. Useful sources of information
General principles
Co-funding rule: external co-financing from a source other than EC funds is required (own resources or financial contributions from third parties)
Non-profit rule: the grant may not have the purpose or effect of producing a profit for the beneficiary
Non-retroactivity rule: only costs incurred after the starting date stipulated in the grant agreement can be co-funded
Non-cumulative rule: only one grant can be awarded for a specific action carried out by a given beneficiary
Overview of Joint Action mechanism EC Funding of eligible costs: Up to 50% (or up to
70% in case of exceptional utility*)
Type of Organisations: Public bodies and NGOs* (non-profit making, Independence from private sectors)
Type of grants: Multi-beneficiaries
Annexes to the Agreement: Description of the Action (Technical annex); Estimated budget by category (Financial annex)
Duration in months: Up to 36 months
Types of participants
NoNoNoNoNoCollaboratingPartner
NoYesNoNoNoFinancialDonor
NoNoYes
(Invoiced tobeneficiaries)
NoNoSubcontractor
YesYesYesYesNoAssociatedBeneficiary (*)
YesYesYesYesYesMainBeneficiary
Contractual relationship
with the European
Commission
FinancialContributionto the grant
Eligible coststo be
co-financedCoreTasksCoordinationTypes of
Participant
Definition of Eligible costs Connected with the subject of the GA and included in
the Technical annex and in the budget description
Necessary for the performance of the action
Reasonable and justified “good housekeeping”
Generated during the lifetime of the action
Actually incurred by the beneficiaries, using a p p l i c a b l e a c c o u n t i n g p r i n c i p l e s
Identifiable and verifiable, in particular being recorded in the accounting records of beneficiary
Definition of Non-eligible costs Those not compiled in Art. II.14.1
Return on capital
Debt and debt services charges
Provision for losses or potential future liabilities
Interest owed, doubtful debts
Exchange losses
VAT (Unless the beneficiary can prove that is unable to recover it)
Cost declared by a beneficiary and covered by another action funded by a EC grant
Definition of Direct Costs and Indirect Costs
Direct Costs are those costs which are identifiable as specific directly linked to the performance of the action, so they can be charged (if they are eligible to the project). (see cost categories 1 to 6)
Indirect Costs are those costs which are not identifiable as specific costs linked to the performance of the action, but that have been incurred in connection with the eligible direct costs for the action. (see cost categories 7 - Overheads)
Direct Costs - 6 cost categories
1
2
3
4
5
6
Staff
Travel Costs and subsistence allowances
Equipment
Consumables and supplies linked to the project
Subcontracting costs
Other costs
7 Overheads
Indirect Cost – 1 cost category
1. Staff Personnel costs assigned to the action, including actual
salaries, social security expenses and other statutory costs.
Distinction between Public Officials and Non-public officials
Calculation of daily rates based on a maximum of 220 working days per year
Note: Time of Staff must be recorded into the beneficiary accounts and registered using timesheet
Definition of Public officials
An official of a public body who is directly remunerated by the budget of the State or a local authority and his/her work concerns the implementation of tasks typically devolved to public institutions.
By extension, it does concern all public officials who work in international organisations.
Note: Cost of Public officials must also satisfy the cumulativeand general criteria laid down in Article II.14.1 of thegrant agreement defining the eligible costs.
Only for staff assigned to the action and mentioned in Staff category (category 1).
Travel and subsistence of staff not employed by the beneficiaries shall be reported under:
- subcontracting category for staff belonging to sub-contractors (experts, consultants paid fees)- other costs category for collaborating partners, external invited experts
Mission out of EU 27, EFTA – EEA and applicant countries are to be pre-approved by EAHC.
2. Travel costs and subsistence allowancesPart 1
The internal rules of the partners have precedence in matter of travel costs and subsistence allowances. In absence of such rules EC rules must be applied :
- use of the more economic and direct way- at least 100 km from normal place of work- rail first class- plane economic and cheaper (e.g. APEX)- car on the equivalence of rail first class
2. Travel costs and subsistence allowancesPart 2
Only the portion of the equipment’s depreciation corresponding to the duration of the project and the rate of actual use for the purposes of the project (% allocation to the project) may be taken into account by the EAHC
Common software (ex. Microsoft Office, Excel, Word,) should be covered by the flat-rate in “E7. Overheads”
The internal rules of the partners have precedence in matter of depreciation of equipment, if not the EC rules apply (hardware – 36 months, furniture – 60 months)
3. Equipment
These costs should normally appear in “E7. Overheads”.
Nevertheless, provided that they are identifiable as specific costs directly linked to performance of the joint action and booked into the partners’ accounting system, they can appear under this category.
4. Consumables and supplies linked to the joint action
Contracts awarded to cover the execution of a limited part of the joint action (40% of the eligible cost as a general rule).
Core elements of the joint action cannot be subcontracted.
The technical and financial management of the joint action is the legal responsibility of the main partner. (no transfer to a third party or associated partner).
Tasks subcontracted must be set out in Annex I and the corresponding costs presented in Annex II of the Grant Agreement
5. SubcontractingPart 1
Public beneficiaries must refer to National rules in matter of award of contracts
NGOs beneficiaries shall seek competitive tenders from potential tender subcontractors. The subcontract shall be awarded to the bid offering best value for money. In doing so beneficiary shall observe the principles of transparencyand equal treatment of potential subcontractors and shall take care to avoid any conflict of interests.
Minimum of bids to be consulted (recommendation)- more than 5 bids…….....................x > 60.000 €- at least 5 bids…………25.000 € < x < 60.000 €- at least 3 bids…………..5.000 € < x < 25.000 €- one bid……………….....................x < 5.000 €
x = estimated value of subcontract
5. SubcontractingPart 2
Other exceptional additional costs not falling within any of the five other cost categories (1 to 5) may be charged, provided that they :- are directly related to the joint action- can be clearly identified and justified by the accounting rules and principles of the partners- satisfy the criteria of direct eligible costs.
Examples of other costs: dissemination of information, specific evaluation of the joint action, financial audits, financial guarantee, translations, reproduction, travels costs and subsistence allowances for collaborating partners or for external invited experts.
6. Other costs
Costs which are not identifiable as specific costs directly linked to performance of the action which can be booked to it direct, but which can be identified and justified by the beneficiary using his accounting system as having been incurred in connection with the eligible direct costs for the action
No justifying accounting documents needed
A maximum of 7% of the total eligible direct costs
7. Overheads (indirect costs)Part 1
Overheads comprise costs connected with infrastructures and the general operation of the organisation.
Examples of other costs : hiring, depreciation of buildings and plant, water/gas/electricity, maintenance, insurance, supplies and petty office equipment, communication, postage, administrative and financial management, human resources, training, legal advice, IT, etc.
7. Overheads (indirect costs)Part 2
Incomes : 5 categories 1. Co-funding request from the Community budget: Financial
contribution granted by European Union.
2. Contribution pertaining to public officials: Amount automatically copied from “Costs pertaining to public officials” – No input required.
3. Applicant financial contribution: Own financial contribution provided by main or each associated applicants.
4. Income generated by the project: Revenues linked to and generated by the action itself such as admission fee to a conference, sale of publications, etc.
5. Other external resources of the project: Other grants allocated either at international level, European level, national level, regional level or local level and/or financial transfers received from donors/sponsor.
Encoding of Incomes and Checks
Example
Check if balance iszero !
Total Expenditures= Total Incomes
Check if EC contribution in % is correct !
Check if EC contribution in Eur is correct !
Input required
Financial viability information Only required for NGOs main applicant.
Information to be encoded in the application form:- Accountancy information- Balance sheet of the two last accounting years (*)- Profit and loss account (*)
(*) NGOs using a cash accounting system and newly created entities are exempted to encode this information in the application form.
Supporting documents to be attached to the proposal:- Copy of balance sheet of the two last accounting years- Copy of profit and loss account
For NGOs using a cash accounting system and newly created entities a copy of statutory accounts is sufficient.
ExampleEncoding of Balance sheetfor the last 2 financial years
Assets
Liabilities
Check if Assetsand Liabilities do balance for each
year!
Check if figures are consistent with supporting documents
attached to the proposal.And
Legal documents to providefrom applicant
Copy of the organization’s statutes / articles
Copy of the official registration certificate (for Public bodies, copy of the decree on their creation)
Declarations of Honour Original of the Declaration of Honour,
duly signed and stamped, is required from the main applicant
Original or copy (fax or scan) of the Declaration of Honour, duly signed and stamped, is required from the associated applicants
Missing originals will be required if the proposition is selected for funding)
Obligatory checklist
Original of the obligatory checklist, duly ticked and signed, is required from the main applicant
Useful sources of information Websites
Executive AgencyEAHC Website
http://ec.europa.eu/eahc/index.html
Public Health Portalhttp://ec.europa.eu/health-eu/
European CommissionDG SANCO Web Site
http://ec.europa.eu/health/index_en.htm
Guide for applicants
http://ec.europa.eu/eahc/health/actions.html
To be read before starting to fill in the application form !!!
Conclusion – Main reminders when preparing the proposals
Original of the obligatory checklist, duly ticked and signed, is provided ?
Global Budget is balanced ? Expenditures = Incomes
Balance Sheet is balanced ? Assets = Liabilities
Figures of ‘Balance Sheet’ and in ‘Profit & LossAccount ’ encoded in the Viability Check annex are consistent with supporting documents ?