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www.leargas.ieLeargas.Ireland @Leargas

KA2 – Strategic PartnershipsFinancial Management

21st September 2017

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• General Principles of Financial Management

• Eligibility of Expenses (eligible and ineligible costs)

• Budget categories and required documentation

• Budget transfers

• Financial Management ‐ Recommendations

Overview

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• 2017 Erasmus+ Programme Guide

• Grant Agreement (GA)

• GA Annexes:

Annex I – General Conditions Part A – Legal and Administrative Provisions Part B – Financial Provisions

Annex II – Estimated BudgetAnnex III – Financial and Contractual RulesAnnex IV – Rates for unit contributions

General Principles – Reference Documents

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Very important document!! Refer to and review it throughout the project

Provides the following: project details (code, national ID, Submission ID –

generated automatically) budget summary budget details per grant heading list of Participating Organisations budget details per Participating Organisations

General Principles – Your Funding – Annex II

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Budget summaryexample

General Principles – Your Funding - Annex II

Budget Items Total grant

Project Management and Implementation 36,000

Transnational Project Meetings 22,345

Intellectual Outputs 66,677

Multiplier Events 25,000

Learning Teaching/Training Activities (Travel + Individual Support + Linguistic

Support)

12,565

Exceptional Costs – OCT Travel 0,00

Special Needs Support 0,00

Exceptional Costs 10,500

Exceptional Costs Guarantee 0,00

Total Calculated 173,087

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Very important document!! Read carefully!!

Refer to throughout the project

Identifies the following: calculation of the grant under each grant heading triggering events a list of supporting documentation for each grant heading reporting details eligible activities, participants and expenses rules and conditions for grant reduction for poor, partial or late

implementation including details on evaluation of final reports an overview of the types of checks that the Beneficiary may be a

subject to and provision of supporting documentation

General Principles – Your Funding – Annex III

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Your Funding (Grant)

• Stated in Art. I.3.1

• Made up of unit contributions and reimbursement of eligible costs actually incurred (actual costs)

Funding = a combination of unit contributions and real costs

• Expenditure should be accrued during implementation period (contract period)

• Expenditure should not generate profit

• Applicant managed funding ‐ The Coordinator organisation applies to manage the grant on behalf of the Partners

General Principles – Your Funding (Grant)

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• All Erasmus+ projects are expected to be co‐financed: Erasmus+ grant will not / might not cover all costs The grant is intended to be a contribution towards the costs of

project implementation and mobility activities

• Erasmus+ grant: Should be used to deliver projects Cannot fund the running of an organisation

General Principles – Co-financing

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• Incurred by beneficiaries

• Incurred during the project lifetime (implementation period)

• Incurred in connection with the action

• Indicated in Annex II

• Necessary for the project implementation

• Identifiable and verifiable = supported by relevant documentation

• Reasonable, justifiable and financially sound

General Principles – Eligible Costs

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• Debt and debt service charges• Return on capital and dividends paid by a beneficiary• Provisions for losses or debts• Interest owed• Doubtful debts• Exchange losses• Costs of transfers from the EC charged by the bank of a beneficiary• Costs declared within another project receiving a grant from EU

budget• Contributions in kind from third parties• Excessive or reckless expenditure• Deductible VAT

General Principles – Ineligible Costs

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UNIT CONTRIBUTIONS

• can be understood as a set amount per time period / participant which is a contribution towards the project costs

• for some you will spend more and for some perhaps less than the unit cost.

• they are intended to make the funding simpler to understand and manage

• must be: produced within the implementation period necessary, identifiable, verifiable and supported by

relevant documentation

Funding Principles: Unit Costs vs Real Costs

REAL COSTS

• you will receive funding for a percentage of the real(actual) costs planned to be incurred

• real costs can be fully or partly reimbursed depending on the budget heading

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Project Management and Implementation

UNIT CONTRIBUTIONS

Transnational Partner Meetings

Intellectual Outputs

Multiplier Events

Training, Teaching and Learning Activities:• Travel• Individual Support• Linguistic Support

Grant Categories

Special Needs SupportREAL COSTS

Exceptional Costs

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EligibleCosts

Concerns management of the project by the Partners: General project management, e.g. planning, finances, coordination Liaising with partners, incl. organisation of partner meetings Developing small scale LTT materials, approaches, e.g. local work on project, virtual

cooperation, etc.Concerns Dissemination: Meetings with stakeholders Preparation and promotion of dissemination materials Online dissemination (e.g. project website) Promotional meetings (local and/or international)IMPORTANT! REDISTRIBUTION POSSIBLE BETWEEN THE PARTNERS!!

FinancingMechanism

Based on unit costs: €500 per month for Co‐ordinator €250 per month for Partner

Triggering Event

Project activities and outputs were developed/produced as planned, fully reported on and approved by NA

Supporting Docs: see ANNEX III

Description of undertaken activities and produced outputs in the final report Outputs uploaded in the Erasmus + Project Results Platform and, depending on nature,

available for checks and audits at the premises of the beneficiaries e.g. proof of output/products (pictures, video films, websites etc. )

Best Practice Keep evidence of all costs incurred (e.g. timesheets, invoices, receipts, etc.)

Project Management and Implementation

EligibleCosts

Costs directly related to participation in meetings between project Partners for implementation and co‐ordination purposes

Contribution to travel and subsistence costs The need for the number of meetings and participants must be justified Evident direct and formal link between the Partner organisations and

individuals attending the meetings on behalf of Partners (whether individuals are staff or learners)

FinancingMechanism

Calculated on a unit cost basis according to the distance of travel for each participant per meeting €575 (return) per participant for distances between 100 and 1999km (1 way) €760 (return) per participant for distances over 1999km (1 way)

On‐line distance calculator must be used to establish the applicable distance band: (http://ec.europa.eu/programmes/erasmus‐plus/tools/distance_en.htm)

The distance is based on place of origin and place of the venue:• Place of origin: where the sending organisation is located• Place of the venue: where the receiving organisation is located

If different places are reported, the beneficiary must provide the reasons. BEST PRACTICE – get NA’s approval before the meeting.

Transnational Project Meetings

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Triggering Event

The eligible participant actually participated in the transnational meeting and undertook reported travel.

Supporting Docs: see Annex III

Proof of attendance of the activity in the form of a declaration signed by the receiving organisation specifying:

• the name of the participant, start and end dates, purpose of the activity

Proof of attendance in the form of participants list signed by the participants and the receiving organisation specifying the:

• name, date and place of the transnational meeting• for each participant: name and signature of the participant, name and

address of the sending organisation of the participant.

In case of travel from or to a different location from where the sending organisation / receiving organisation is located, which leads to a change of distance band: the actual travel itinerary + travel tickets or other invoices specifying the place of departure and the place of arrival.

• Details agendas and any documentation used or distributed at the TPM (e.g. minutes).

Transnational Project Meetings

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EligibleCosts

Costs associated with the development of any tangible deliverables (substantial in quality and quantity, with proven potential for wider use, exploitation and impact) of the project by eligible staff members (on a professional or voluntary basis) of relevant Partners

Intellectual Outputs approved by NA in Annex I

FinancingMechanism

Calculated on a unit cost basis, per day, according to the role of individuals in the project and the country of the participating organisation whose staff is involved.

4 staff categories exist (see Annex IV of the grant agreement): Manager (€294 for Ireland)Teacher/Trainer/Researcher/Youth Worker (€241 for Ireland)Technician (€190 for Ireland)Administrative staff (€157 for Ireland)


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Rules regarding staff involved in IOs

DEFINITION: A person involved in education, training or youth non‐formal learning on a

professional or voluntary basis (e.g. professors, teachers, trainers, school leaders, youth workers and non‐educational staff).

Formal link between the staff members and relevant Partner organisations must be evident.

Staff working for the beneficiaries on the basis of service contract (e.g. translators, web designers) cannot be reported under this budget heading.

ELIGIBLE STAFF COSTS: The staff category applicable must relate to the function performed by

staff member in the development of IOs (and not their professional profile/status within their organisation).

A person can be reported as staff in only 1 staff category per intellectual output.

A person can be reported as staff in different categories for different intellectual outputs but only 1 category per intellectual output.

Manager and Admin staff are expected to be covered already under Project Management and Implementation heading. They are eligible under IOs only if applied and approved by the NA at the evaluation and contracting stage.


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Triggering Event

Intellectual Outputs were produced as planned and are of an acceptable quality level, as per NA evaluation.

Supporting Docs:see Annex III

Proof of the intellectual outputs produced (available for checks on‐site and uploaded onto Erasmus+ Project Results Platform)

Proof of the staff time spent on the development of project outputs – In the form of a signed time sheets per person (incl.: the name of the person, the name of the organisation, relevant category of staff, the dates, the total number of days spent on the production of outputs, reference to particular output)

Proof of the nature of the relationship between the staff member (whether on a professional or voluntary basis) and the beneficiary (e.g. employment contract, voluntary work, SME ownership, etc.) as per officialrecords of the beneficiary.

Reporting:see Annex III

On behalf of the project as a whole, the coordinator shall report on the activities undertaken and results produced. The coordinator shall include information on the start and end date on the number of days of work per category of staff for each of the beneficiaries cooperating directly on the development of IO.


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Eligible Costs Contribution to the costs linked to the organisation of national and transnational conferences/seminars/events aimed at sharing and disseminating the intellectual outputs realised by the project

No grant for IOs = no grant for MEs Multiplier events must be approved by NA in Annex I & II of your contract

/latest contract amendment

FinancingMechanism

Calculated on a unit cost basis up to a maximum of €30,000 per project according to the type and number of participants:• €100 per local participant (= from the country where ME is taking place)• €200 per international participant Participants from beneficiaries’ organisations cannot be participants of

those events.

Triggering Event

Multiplier event took place as planned, was of an acceptable quality level (as per NA evaluation) and attended by eligible participants.

It is relevant to particular Intellectual Outputs.

Supporting Docs:see Annex III

Proof of attendance of the multiplier event – sign‐in sheet of participants (incl.: name, date and place of the multiplier event and for each participant: his/her name and signature, name & address of the sending organisation)

Detailed agenda and any additional documentation used or distributed at the event (e.g. minutes)

Description of the multiplier event in the final report

Multiplier Events

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EligibleActivities

Activities approved by NA in Annex I

Eligible activities in all fields:

• Blended mobility of learners combining short‐term physical mobility (5 days to 2 months, excl. travel days) with virtual learning

• Short‐term joint staff training events (3 days to 2 months, excl. travel days) –short training events linked to the topic or scope of the project

Location: countries where the beneficiaries are located. Activities of learners as well as long‐term activities of staff and youth workers from or to Partner countries are not eligible.

Learning, Teaching and Training Activities (LTTs)

VIRTUAL LEARNING: the use of communication technologies (e.g. collaborative workspaces, live, streaming, social media, videoconferencing, etc.) to complement or prolong the learning outcomes of physical mobility

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Eligibleparticipants

Individuals involved in the project as staff or learners who have direct formal* link with a relevant beneficiary organisation in one of the following capacities:• VET and adult learners (blended mobility)• Professors, teachers, trainers and educational and administrative staff

employed at a participating organisation

Participation of individuals in LTT activities in their own country is eligible only when:

The activity involves participants from beneficiary organisations from at least 2 Programme Countries

Distance between the place of departure and arrival is at least 10 km (as per distance calculator)

Learning, Teaching and Training Activities (LTTs)

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Learning, Teaching and Training Activities (LTTs)Travel Individual Support Linguistic Support

FinancingMechanism

Based on a unit cost:• €275 per participant

for distances between 100 and 1999km

• €360 per participant for distances over 1999km

On‐line distance calculator to be used.

Costs associated with the day‐to‐day living costs incurred by participants during TTL activity incl.:• Accommodation• Food• Insurance• Local travel to and

from a venue of the activity in the host country

Calculated on a unit cost basis according to the country of destination, the duration of activity and the activity type (check Annex IV for applicable rates)

Costs linked to the support offered to participants to improve their knowledge of language of instruction or of work during TTL activity

Only available to TTL activities between 2 and 12 months

Based on a unit cost of €150 per each participant needing linguistic support.

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Triggering Event

The participant has actuallyundertaken the reported travel.

The participant hasactually undertaken eligible TTL activity.

The participant actuallyundertook a TTL activityexceeding 2 monthsand languagepreparation in thelanguage of instructionor of work.

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Supporting Docs:Annex III

Reporting:

Proof of attendance of the activity in a form of a declaration signed by the receiving organisationspecifying:• name of the participant• start and end dates • purpose of the activity

AND

Travel from a different place: The actual travel itinerary + travel tickets /invoices with place of departure & arrival

The coordinator shall report on the venue of all TTL activities, the date and number of participants

Proof of attendance of the activity abroad in the form of a declaration signed by the receiving organisation specifying the following:• The name of the

participant• The purpose of the

activity abroad• Start and end dates of

the activity

Proof of attendance of courses in the form of a declaration signed and dated by the course provider specifying the name of the participant, the language taught, the format and duration of the linguistic support provided

OR

Dated invoice for the purchase of learning materials withlanguage concerned, the name and address of the body issuing the invoice, amount and currency

OR

If support provided directly by the Beneficiary ‐ declaration signed and dated by the participant (incl. the name of the part., language, the format and duration)

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Budget Categories – REAL COSTS

Special Needs SupportREAL COSTS

Exceptional Costs

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EligibleCosts

Costs directly related to project participants with disabilities including costs directly related to participants with special needs and accompanying persons taking part In the transnational teaching, training, learning activities beyond the 60th day of stay

May include costs related to travel and subsistence of the above persons but need to be justified and providing they are not requested through budget categories Travel and Individual support

These costs are additional to costs supported by unit contributions

FinancingMechanism

Reimbursement of 100% of the eligible costs actually incurred

Supporting Docs

Invoices of the actual costs incurred specifying the following:• name and address of the body issuing the invoice• amount and currency • date of the invoice Proof of payment Other proofs such as proof of disability

Special Needs Support

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EligibleCosts

Costs related to sub‐contracting or the purchase of goods or services asapproved in Annex II to grant agreement

Costs related to the depreciation costs of equipment or other assets (both new and second hand) – comply with Art. II.10 and international and usual accounting practices of the beneficiary

Costs of rental or lease of equipment or other assets (cannot exceed the depreciation costs of similar equipment/assets and are exclusive of any finance fee)

Eligible Costs

Costs that cannot be provided directly by the participating organisations

Corresponding to the project eligibility period

Equipment purchase, rental or lease – only the amount corresponding to the share of time of the use of the equipment can be claimed

IneligibleExceptional Costs

Any activities funded from the budget category of Intellectual Outputs

Purchase of equipment used by the participating organisations for their normal activities

Purchase of ‘regular’ office equipment

Exceptional Costs

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Financing Mechanism

Reimbursement of 75% of the eligible costs actually incurred OR €50,000 (excluding the costs of a financial guarantee, if required) –WHICHEVER IS THE LOWEST

Supporting Docs

Sub‐contracting and expensive travel costs:• Invoices of the actual costs incurred, specifying the following:

name and address of the body issuing the invoice amount and currency date of the invoice

• Proof of payment

Depreciation costs: • Proof of the purchase, rental or lease of equipment as recorded in your

accounting statements. • Proof of payment

The Coordinator will be required to provide all supporting documents for Exceptional Costs at Final Report stage

Exceptional Costs

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BANK TRANSFER DOCUMENTS (see art. I.4.8 and II.2.3 of GA) ‐showing that payments have been made to partners:

• Official documents from your bank, showing the date and amount transferred and clearly stating the partner’s organisation name

• Not internal requests for payment

• Alternatively: official documents from your Partner’s bank showing the name of the Partner, the date and amount received and the name of the organisation transferring the money

• Best practice: confirmations of receipts of payments from Partners

Summary of organisations’ subsistence, depreciation and VAT policies

Other Financial Records & Evidence

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Changes without amendment to the contract:

Up to 20% of the funds from Project Management and Implementation, Transnational Project Meetings, Intellectual Outputs, Multiplier Events, LTT Activities and Exceptional Costs to any budget category except for Project Management and Implementation and Exceptional Costs

Increase in a destination budget category – max 20%

No budget transfer is allowed to a budget category for which grant awarded was 0 (as per Annex II)

Money can be transferred from any budget category to Special Needs Support even if its original awarded grant was 0.

• max increase of 20% does not apply in this case

Please check art. I.3.3, II.11 and II.22 of the grant agreement

Adding subcontracts not provided for in Annex II is not allowed unless approved by the Commission as per art. II.11

Budget Transfers

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The financial management is in line with the rules and regulations as set out in the contract

Verification that the required financial systems are in place

Supporting original documentation is available for all financial expenditure

Evidence that activities have taken place

To check the relevance and eligibility of the activity and the participants

Financial Monitoring

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Record Keeping

You should only keep original documents for your own organisation

Remaining Partners (beneficiaries) should keep their own original documents, stored in any appropriate medium for the required duration:

• for projects of and under 60K ‐ for 3 years after the final payment is made• for projects over 60K ‐ for 5 years after the final payment is made

Originals from all Partners will be required in the event of any checks or audits

Keep documents in a format and language which would allow the Irish NA or any external bodies authorised to check your project to understand the contents of the supporting documents ‐ provide brief translation where needed!

The National Agency will return the original documents submitted to the Coordinator upon completion of any audits or checks.

Financial Management

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Suggestions for Good Financial Management

Use a project specific Euro bank account Outline financial arrangements in partnership agreements Appoint a Financial Officer Develop internal financial monitoring systems Maintain all financial records and audit trail Contact your Project Officer/ Financial Officer if in doubt.

Financial Management

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Contact person Project Content (VET): Siobhan Wallace [email protected] person Finance: Ronan Ivory [email protected] and 01 887 12 11Contact person Finance: Brigid Kelly [email protected] and 01 887 12 26Contact person Finance: Emmanuelle Place [email protected] and 01 887 12 07Contact person Finance: Weronika Gasior [email protected] and 01 887 12 28

Web: www.leargas.ie

Good Luck

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