SOCRATES PROGRAMME

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SOCRATES PROGRAMME

• TN Projects 2004 2005

Contractual and Financial Management Administrativ
e and Financial Handbook Maryline Fiaschi,
13/02/2006
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Agenda

• Essentials
• Financing of projects
• Handbook Structure
• Approved Budget
• Eligible Expenditure

• Financial Management
• Partnerships
• Partner Agreements
• Reports closure

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Essentials

• Many projects fail because the Contractor did not
  understand the basic rules
• Where are the rules contained Grant Agreement
  and Annexes (including the Handbook), EUs
  Financial Regulations

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Financing of 2005 Contracts

• No more lump sums for staff costs details of
  these costs have to be now given at the final
  report
• EU grant is based on a fixed percentage of the
  Approved budget of the project (see points A.4
  and A.5 of the Grant Agreement).
• The above amount represents the maximum grant
  (see point A.3 of the Grant Agreement). You can
  never get more than the maximum.
• Greater flexibility in the budget transfer rules
• The more detailed financial rules are contained
  in the Handbook

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Handbook Structure

• Purpose of the Handbook
• Annex to the Agreement and enforceable
• Aid for beneficiaries and a management tool
• Definitions (Beneficiary, Partner Legal
  Representative, Approved budget)

• Chapters
• Approved budget
• Modification of the Agreement
• Eligible Expenditure
• Financial Management
• Reports
• Supporting Documents Audit

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Approved budget

• How has it been assessed ? External Experts
  Project aims and rules on eligibility
• An amount approved for Staff costs
• An amount approved for Direct costs
• General costs
• The co-financing percentage of the Community is
  applied to the total of points 1-3 above to
  arrive at the maximum grant that is awarded by
  the Commission
• Concept of Approved Budget (Annex II of the
  Agreement) reference point for assessment of
  the final report

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Contractual modifications

• Partnership
• Workplan Results
• Budget
• Bank information
• Extension of the Eligibility period
• Final report deadline
• No possible extension for progress report
  deadline!
• REQUEST must be introduced through the
   Contractual modification form 
• duly signed by the legal representative
• At least 60 days before the end of the
  eligibility period

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Eligible expenditure

• General Principles
• Costs must be reasonable and in accord with the
  principles of sound financial management. Must be
  incurred by the partnership and necessary.
• No member organisation of the partnership may
  derive a profit from the grant
• All expenditure for Staff and Direct costs must
  be justified by invoices or accounting documents
  of an equivalent value

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Eligibility of Expenditure

• Ineligible Costs
• Expenditure incurred before or after the end of
  the eligibility period (A.6)
• Excessive or reckless expenditure
• VAT unless the Beneficiary cannot recover it
• Expenses for travel to and from countries not
  eligible to participate in Socrates
• Eligibility
• Relate directly to approved activities
• Are in accordance with the rules
• Relate to activities involving eligible countries
  

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Staff Costs key points

• The staff costs related to all persons involved
  in the project by insitution can be charged into
  the project, according to the time effectively
  spent
• These costs shall be calculated on the hourly,
  daily, monthly gross cost multipled by the number
  of hours, days or months worked.
• The beneficiary and partners must keep full and
  accurate records
• Personnel costs should not exceed the norm for
  the labour market concerned
• Volunteer costs not eligible real costs only

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Travel subsistence costs

• Calculation of subsistence costs 1 per diem /
  night ½ per diem for travel
• Subsistence costs eligible for external experts
  coming from outside Socrates countries (but not
  Travel costs)
• Travel subsistence costs for students
  participating to the plenary meeting are eligible
• Errors to avoid
• Travel outside of Socrates countries
• Declaration of collective costs for subsistence
  (restaurant)
• Subsistence costs in excess of the limits

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Equipment and materials

• Hardware and equipments, when gt 1000 EUR are are
  submitted to depreciation (33.33 per annum)
• Adjusted to the percentage of use in the project
• Pieces of equipment purchased before the project
  period are not eligible
• Errors to avoid
• - Date of purchase missing
• - Wrong depreciation rate applied or not adjusted
  to real use

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Sub-contracting costs

• Subcontracting costs Any amount paid to an
  outside body which is not part of a member
  organisation of the partnership and which carries
  out specific limited work for the project.
• Only allowed if the staff of the partners do not
  have the skills required
• Cannot subcontract the basic activities (entire
  management general administration)

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Sub-contracting costs

• Three quotes if more than 10.000 in total
  (including linked costs). Must be able to supply
  copies of these if required
• Consultants fees should not normally exceed 400
  per day
• Cannot exceed 30 of the total eligible costs of
  the project
• Costs of an independent consultant working
  full-time or frequently for the project should be
  reported under staff costs

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Other and General Costs

• Other Costs Includes the costs of producing,
  translating and publishing documents when
  performed by the partners
• General Costs Normal overhead costs of the
  organisation. They do not have to be detailed in
  the final report and no proof required. Limited
  to 7 of the total eligible costs

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Financial Management

• Bank Account (in , Name of beneficiary) cash
  withdrawals should be avoided
• Accounting System- Analytical identifying the
  sources of funding and the project expenditure.
  Proof of payment will be required for Direct and
  Staff costs
• - Keep track of time sheets of persons who have
  worked on the project (identifying the person and
  time spent and activity)
• Partnership- Partners must be in the application
  or approved later by the Executive Agency-
  Ensure active cooperation (management structure
  )- Partnership agreements
• Remark Can we pay our partners or
  sub-contractors after the end of the eligibility
  period?

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Partnership Agreements

• Duties and obligations of the partners
• Delivery schedule of results
• Management Structures for the project and powers
  
• Budget and Grant share
• Quality and evaluation system

• Payment conditions payment based on results or
  some other system?
• Reporting accounting regular reporting is a
  good monitoring tool
• IPR
• Termination and notice provisions allow for
  exits
• Choice of law and Incorporation of EU agreement

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Transnational PartnershipsWhat makes a
successful project

• Identify the risks and challenges at the
  beginning of the project and at key points
• Work with known partners
• Spend time developing trust within the
  partnership
• Coordinator needs good communication skills
• Ensure institutional support
• Clear and transparent financial and management
  practices proper allocation of tasks

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Reports

• Qualitative and quantitative assessment
  (products/results ? expenditure)
• Progress Report for 2 3 years projects
• Final Report (end of eligibility period 3.5
  months)
• See Contractual Timetable (annex of the contract)

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Progress report

• Progress report cannot be submitted before the
  deadline unless 70 of the first pre-financing
  has been used and all activities foreseen for the
  period have been achieved
• The deadline for the submission of the Progress
  report cannot be extended !!!!
• If lt 70 of pre-financing was declared at
  Progress report stage
• As soon as 70 is spent submit a separate payment
  request, using Declaration of beneficiary and
  Section 2 Declaration of Expenditure of the
  Progress Report Form.
• Do not send the entire Progress Report again.

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Evaluation criteriaPurpose of the progress report

• To provide a clear  state of affairs  of the
  project, at a certain moment
• To allow visibility on potential
  problems/difficulties
• To seize the opportunity to update the workplan,
  budget and partnership
• To declare real expenditure incurred in the first
  part of the project life

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Purpose of the final report

• To allow an overall evaluation of the project.
  All work must be completed
• The final products and outcomes are compared with
  what was planned in the application taking into
  account the progress report and the amendments
• To declare the real expenditure incurred during
  the life of the project

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And then?

• Final report analysis
• Content
• Finances (evidences of costs may be required)
• A settlement letter sent to beneficiary
• Comments and recommendations
• Final (positive or negative) balance
• Explanatory note related to the final calculation
  of the Grant
• Possibility to appeal against the Executive
  Agencys decision during 60 days after the date
  of the closure letter

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Thank you!

• For any information, please contact
• Maryline Fiaschi
• Executive Agency, Rue Colonel Bourg 135-139, B
  1140 Bruxelles
• Maryline.FIASCHI_at_cec.eu.int
• http//europa.eu.int/comm/education/programmes/soc
  rates/Erasmus
• http//europa.eu.int/comm/dgs/education_culture/do
  cuments/socrates