financial training for bonus call 2012 projects training for projects under bonus call 2012 ......
TRANSCRIPT
Financial training for projects under BONUS call 2012
Spring 2014
(updated in January 2017)
Content of the training session
1) Introduction
2) Financial rules and guidelines
3) Financial reporting
4) Eligible/non-eligible costs, direct/indirect costs
5) Payment process
6) Budget changes
7) Financial audits
2
(2013-2017 ->)
BONUS implementation phase
Durable
collaborative
research
programme of
the coastal
Baltic Sea
countries
(2004-2008)
BONUS ERA-NET Developing preconditions for a joint Baltic Sea research programme
ERANET
(2007-2011)
BONUS+ Implementing a joint call to test the mechanisms of collabora-tion among the national funding institutions
ERANET Plus
(2010-2012)
BONUS strategic phase
Developing
and preparing
the start of
the calls
Article 185
Development of BONUS
3
http://www.bonusportal.org/about_us/history http://www.bonusportal.org/programme
A unique funding mechanism integrating the national and European Community funds for research and development with certain purpose
4
BONUS projects
Viable ecosystem
• 7 funded projects
• 67 beneficiaries, 10 countries
• BONUS funding EUR 3,3 - 4 million
• Durations 3,5 –4 years
Innovation
• 13 funded projects
• 52 beneficiaries, 9 countries
• BONUS funding EUR 450 000 –500 000
• Durations 2-3 years
More information on projects: http://www.bonusportal.org/projects
5
Sustainable ecosystem
services
• 8 funded projects
• 46 beneficiaries, 10 countries
• BONUS funding EUR 900 000 –1,4 million
• Duration 3 years
Blue Baltic*
• 12 funded projects
• 101beneficiaries, 14 countries
• BONUS funding EUR 1-2,9 million
• Durations 2,5-3 years
Call 2012 Call 2014 Call 2015
* Final outcome during spring 2017
Meelis
Tiina
Kaisa
Meelis
Secretariat
MinnaMaija
Meelis
MeelisAndris
6
representing BONUS EEIG (European
Economic Interest Grouping)
Legal basis and financial rules of BONUS
Guide for BONUS applicants, Guide for BONUS project participants, Guide for reporting in-kind infrastructure
http://www.bonusportal.org/for_researchers/for_participants
Model BONUS Grant agreement + annexes
BONUS Implementation Agreement
Decision 862/
2010/
EU
EU Financial Regulation,
FP7 rules for participation
FP7 model grant agreement
Guide to Financial
Issues relating to FP7 Indirect
Actions
7
BONUS and FP7
• The BONUS programme will be implemented under the 7th Framework Programme of the European Community
• The derogations compared to FP7 rules:
– Non-recoverable VAT is considered as an eligible cost
– Indirect costs are calculated as 20 % of the total direct eligible costs, excluding costs for subcontracting (unless lower % agreed in BONUS GA: Special Clause 8)
– The upper funding limits are different than in FP7
– Participants from third countries and international organisations must cover their own project costs
8
European Commission
BONUS EEIG
National funding institution, country B
National funding institution, country C
National funding institution, country D
FUNDERS
BENEFICIARIES
Coordinator, country A
Beneficiarycountry B
Beneficiarycountry C
Beneficiarycountry D
National funding institution, country A
Reporting flow Money flow
Payment and reporting process
BONUS funding = National funding + BONUS EEIG (EU) funding
9
Financial reportingin BONUS
Project financial reporting is done according to the same principles as the project budget was established
ACTIVITY TYPE
1a) Funda-mentalresearch
1b) Indus-trial research
1c) Experi-mental deve-lopment
2) Mana-gement
3) Other
Total costs
A. Personnel costs
B. Subcontracting
C. Other directcosts
D. Indirect costs (20 % of sum of A and C)
Total costs (A+B+C+D)
10
Reporting currency and currency exchange rates
• Costs shall be reported in Euro– Beneficiaries with accounts in currencies other than the Euro shall
report costs using:• either the conversion rate published by the European Central Bank that would have
applied on the date that the actual costs were incurred
• or its rate applicable on the first day of the month following the end of the reporting period. Example: reporting period ends 31 Dec > the applicable rate is the rate of 2 Jan
– Beneficiaries with accounts in Euro shall convert costs incurred in other currencies according to their usual accounting practice
• National cash contributions (in reporting and in payments)– if have been made in currencies other than Euros shall be calculated in
Euros on the basis of the exchange rate published by the European Central Bank on the date the national contribution was received by the Beneficiary.
11
Eligible costs
a) they must be actual;
b) they must be incurred by the Beneficiary;
c) they must be incurred during the duration of the project; (exception: the costs incurred in relation to final reports and to certificates on the financial reports incurred during the period of up to 60 days after the end of the project)
d) they must be determined in accordance with the usual accounting and management principles and practices of the Beneficiary
e) they must be used for achieving the objectives of the project and its expected results, in a manner consistent with the principles of economy, efficiency and effectiveness;
f) they must be recorded in the accounts of the Beneficiary
g) they must be indicated in the estimated overall budget
12
Non-eligible costs
• recoverable VAT
• duties
• interest owed
• provisions for possible future losses or charges
• exchange losses, cost related to return on capital
• costs declared or incurred, or reimbursed in respect of another project of the BONUS, of the Union or of Euratom or of a Member or Associated Country or any other costs that are reimbursed and could cause double funding.
• debt and debt service charges, excessive or reckless expenditure.
13
Activity types
1. Research and technological development activitiesActivities directly aimed at creating new knowledge, new technology and products, including scientific coordination.
a) Fundamental research
b) Industrial research
c) Experimental development
Only one RTD-activity/partner shall be chosen
2. ManagementManagement of the consortium activities; overall legal, ethical, financial and administrative management.
3. Other activities
Dissemination, promotion, networking, activities related to IPRs, ...
14
Direct/indirect costs
• Direct costs:
– all those eligible costs which can be attributed directly to the project and are identified by the Beneficiary as such, in accordance with its accounting principles and its usual internal rules.
– With regard to personnel costs, only the costs of the actual hours worked by the persons directly carrying out work under the project may be charged.
• Indirect costs:
– all those eligible costs which cannot be identified by the Beneficiary as being directly attributed to the project, but which can be identified and justified by its accounting system as being incurred in direct relationship with the eligible direct costs attributed to the project.
– Indirect costs shall represent a fair apportionment of the overall
overheads of the organisation.
15
Personnel costs
• Only the costs of the actual hours worked may be charged
– Absences (holidays, sick leave, etc) should be excluded
– Working time must be recorded either by using time-sheets (e.g. in paper, in excel) or computer-based system
• Total actual personnel costs charged to the project = Total actual hours worked for project x Hourly rate
– Hourly rate = Total salary (all statutory costs: salary, pension fees, holiday pmts, ...) / total productive hours
– Productive hours must be calculated according to the beneficiary’s normal practices
• Can be either a standard for all employees or an individual for each employee
• Productive hours should exclude annual and sick leave, weekends, training, public holidays
• See the detailed instructions: Guide to Financial Issues relating to FP7 Indirect Actions Version 3/10/2014, p. 55-65
16
Example: calculating actual personnel costs
Days
Total days in a year 365
Weekends -104
Annual holidays -21
Statutory holidays -15
Illness/Other -15
Workable days in a year 210
Total productive hours (210 days / year x 7,5 h / day )
1570 h / year
Total salary 30.000 € / year
Hourly rate (30.000 € / 1570 h)
19,1 € / hour
Total hours worked for project
650
Total costs charged to the project (650 h x 19,1 €)
12.415 €
17
Subcontracting
According to the FP7 rules beneficiaries implement the project and have the necessary resources to that end. However, it is accepted that as an exception certain parts of the work may be subcontracted.
Some remarks on the subcontracting (see also Guide for BONUS
Applicants):• Subcontracting between beneficiaries in the same consortium is not accepted
• The “core” parts of the project work should not be subcontracted, nor coordination tasks of the project coordinator.
• Any subcontract must be awarded to the bid offering best value for money (best price-quality ratio), under conditions of transparency and equal treatment. Framework contracts can be used, if established on these principles.
• The costs of the certificate on the financial report (if required) are reported as subcontracting.
18
Reporting during the project
• Periodic report for each reporting period within 60 days after the end of each period – consists of three parts:
1. Scientific/technological report + publishable summary (by the coordinator; pdf-file)
2. Report on performance statistics and use of infrastructures (all project partners; EPSS table)
3. Financial report* together with a Summary financial report*,includes an explanation of the Use of the resources* (all beneficiaries receiving BONUS funding; EPSS table)
• Submitted to BONUS EEIG through BONUS EPSS, and financial reports also on paper
– must be signed by the authorised person(s) within the Beneficiary’s organisation
19
* Examples can be found on the BONUS website:
http://www.bonusportal.org/projects/information_for_participants
Certificate on the financial report
• When the cumulative amount of the BONUS EEIG financial contribution of a beneficiary is equal to or superior to
EUR 375.000, a certificate on the financial statement (CFS) is required.– See examples in the Guide to Financial Issues relating to FP7 Indirect
Actions 18/03/2013, p. 15-18
• The certificate must be forwarded in the form of a detailed description verified as factual by external auditor. – Each Beneficiary is free to choose any qualified external auditor,
including its usual external auditor
– Certificate template: Annex VI of the BONUS Grant agreement
20
When CFS is required Examples
Example 1:
Example 2:
RP1 RP2 RP3 RP4
BONUS EEIG contribution 200 000 300 000 100 000 200 000
Cumulative BONUS EEIG contribution for which a CFS has not been submitted
200 000500 000 (>
375 000)100 000
300 000 (< 375 000)
CFS required NO YES NO NO
RP1 RP2 RP3 RP4
BONUS EEIG contribution 100 000 275 000 200 000 175 000
Cumulative BONUS EEIG contribution for which a CFS has not been submitted
100 000375 000
(=375 000)200 000
375 000 (=375 000)
CFS required NO YES NO YES
21
• Final report within 60 days after the end of the project.
– a final publishable summary report (covering results, conclusions
and socio-economic impact of the project)
– a report covering the wider societal implications of the project (incl. gender equality actions, ethical issues, efforts to involve
other actors and spread awareness as well as the plan for the use and dissemination of Foreground)
• The Coordinator shall submit a report on the distribution of the financial contribution of the BONUS EEIG between Beneficiaries and a report regarding the payment of the national contribution. This report must be submitted 30 days after receipt of the final payment.
Reporting in the end of the project
22
• Pre-financing payment at the start of the project– 160 % of the average BONUS EEIG funding per period if duration of more
than two reporting periods
– Paid within 45 days after the fulfilment of the cumulative conditions of Article II.6.3 of the BONUS grant agreement
• Interim payment(s) after reporting periods– Paid after the approval of the periodic financial report and after receipt of
evidence of payment of the national contributions
– Costs accepted by the BONUS EEIG within the periodic reports in relation to the pre-financing shall be cleared with the final payment
• Final payment– Paid after the approval of the final report
– Final payment = total BONUS EEIG contribution - the amounts already paid (max 85 % of the total BONUS EEIG contribution)
BONUS EEIG payments towards Consortium
23
Payments within Consortium
The coordinator pays the funds received from the BONUS EEIG to a Beneficiary on the cumulative fulfillment of the following conditions (BONUS Grant Agreement, Annex II, II.2.3 d):
• …
• The amount released towards a Beneficiary in a Participating State does not exceed the proportion of the BONUS EEIG and national contributions
• The national cash contribution is proven (via copies of bank statements) to have been paid by the NFI (or via the BONUS EEIG) to the Beneficiary concerned.
24
Practical advise on financial reporting*
• Remember two decimals in reporting costs and received national contributions
• Remember to use the correct exchange rate if non-Euro accounts (see slide 11)
• Check that the copies of the bank statements include at least the following: the date when the national contribution was received; the names of the payer and the recipient; a reference to BONUS project (e.g. project name) or supporting document(s)
• The person signing the cost statement should be an authorised representative in the organisation
• BONUS cost statement should include ALL the costs for the period, not only those which are funded by BONUS EEIG
* Frequently occurring errors in financial reporting 25
Some examples of the payments
26
Example I*
Project “A” with BONUS EEIG funding EUR 50.000/reporting period, duration 4 years, total BONUS EEIG funding EUR 200.000
• pre-financing 160 % of the average annual BONUS (EU) funding per period > EUR 80.000
• Project follows exactly the budget, i.e. approved reported costs of the 1st reporting period EUR 50.000 > interim payment EUR 50.000
• Approved reported costs of the 2nd RP: EUR 50.000 > interim payment EUR 40.000 (85 % of the funding limit)
• Approved reported costs of the 3rd RP: EUR 50.000 > interim payment EUR 0 (85 % of the funding limit)
• Approved reported costs of the 4th RP are EUR 50.000 > final payment EUR 30 000
27
Pre-financing RP1 RP2 RP3 RP4 Total
Costs 50.000 50.000 50.000 50.000 200.000
Payments 80.000 50.000 40.000 - 30.000 200.000
* For simplicity, national funding share has been
excluded in this example
BONUS Secretariat
Project Coordinator
National Funding Agency
1. Pre-payment”500 €”
Actor
BONUS projects: Payment and reporting process
Project Beneficiary I
2. Ntl contribution
”100 €”
3. EU-contr.
”100 €”
4. Ntl contr. ”50 €”
5. EU-contr.
”50 €”
GA
signing
End of
RP1
6. Reporting RP 1 costs
”300 €”
7. Approval RP 1 costs ”600 €” +
”300 €”
8. Combine RP1 reports
”900 €”
9. Approval RP 1 costs
”900 €”
Project Beneficiary II
2. Ntl contribution
”200 €”
3. EU-contr.
”200 €”
4. Ntl contr.
”120 €”
5. EU-contr.
”120 €”6. Reporting
RP 1 costs ”600 €”
Interim payment after RP1 ”900 €” > Total payments ”500 €” + ”900 €”
”30 €” left of the prepayment in the coordinator’s bank
account
Total ”300 €” received (NFI and
BONUS). Total costs ”300 €”.
Total ”640 €” received (NFI and
BONUS). Total costs ”600 €”.
Total ”470 €” paid in RP1.
Example II
Project may choose to agree on a different payment schedule of EU contribution, as long as cumulative EU contribution
does not exceed cumulative national contribution. 28
Example II
1. BONUS Secretariat pays the pre-payment (”500 €”) to the project coordinator
according to the conditions of the BONUS Grant agreement. Project coordinator
holds the pre-payment in the project’s bank account.
2. National Funding Institution pays the 1st part of the national contributions (”100
€” and ”200 €”) to the beneficiaries according to the national rules.
3. Coordinator pays to beneficiaries EU contributions equivalent to the national
contributions (”100 €” and ”200 €”).
4. National Funding Institution pays the 2nd part of national contributions (”120 €”
and ”50 €”) to the beneficiaries according to the national rules.
5. Coordinator pays to beneficiaries EU contributions equivalent to the national
contributions (”120 €” and ”50 €”).
6. Beneficiaries report the consumption of reporting period 1 to NFI according to
the national rules (NB!: reporting rules and periods of NFIs might differ
significantly from those of BONUS EEIG)
7. NFI checks and approves the reports
8. Coordinator combines the costs of the consortium (”900 €”) and submits RP1
report to BONUS Secretariat.
9. BONUS Secreatariat checks and approves the costs
29
Budget changes
• Should be informed once the change has become apparent (not retrospectively, e.g. when submitting a periodic financial report)
• Are requested in BONUS EPSS 1) Participant initiates the process by clicking the button ’Request for budget change’
-> budget opens for editing (default numbers from last approved budget).
2) Explanation is given in the text field “Description of the budget change”
3) Participant submits the budget change request
4) If the budget request is qualifying as significant, participants prints the request form and signs it, sends both the BONUS EPSS form and paper version to the coordinator who submits both to the BONUS Secretariat for approval.
5) BONUS Secretariat handles the request (if necessary, consults with national funding institution and coordinator).
6) If the request is approved, it overwrites the participant’s previous budget. If it is not approved, participant can modify the request or abandon it, and the official budget will be unchanged.
7) One participant can have only one budget change request in processing.
30
Significant vs. minor budget changes
• Significant changes are (for example):
– change in the amount of total budget
– change between beneficiaries
– if a task initially meant to be carried out by a beneficiary is subcontracted
In these cases the DoW should be updated as well
• Minor changes are (for example):
– changes between reporting periods within same major budget line
– changes between activities within same major budget line
– minor changes between budget lines
31
Financial audits
• The BONUS EEIG, National Funding Institutions and the European Commission may, at any time during the implementation of the project and up to five years after the end of the project, arrange for financial audits (technical audits as well).
• Such audits may cover financial, systemic and other aspects (such as accounting and management principles) relating to the proper execution of the Grant Agreement.
• The Beneficiaries shall keep the originals or, in exceptional cases, duly authenticated copies including electronic copies of all documents relating to the Grant Agreement for up to five years from the end of the project.
32
If any questions, please contact BONUS Secretariat
THANK YOU!
www.bonusportal.org
33