Preparing an INTERREG IVC application: Financial and legal aspects

1. Preparing an INTERREG IVC application: Financial and legal aspects Anne-Cécile RENARD, Finance Officer, INTERREG IVC JTS

2. Partner Funding • Funding for partners from the EU + Norway • 75% / 85% ERDF co-financing rate depending on the Member State in which the partner is located (address!) (50% for Norway) • 25% / 15 % partner’s own financing from own funds or other public sources on national, regional or local level (50% for Norway) • no ERDF advance payments

3. Partner Funding • Partners from EU-MS + Norway

4. Partner Funding • Funding for partners from Switzerland • special funding available • funding directly managed by Switzerland • information provided by national contact point

5. Partner Funding • Partners from outside EU/Norway/Switzerland • Participation possible • No co-financing from IVC programme • Funding maybe available through other EU-instruments (IPA, ENPI) • INTERREG IVC co-financing for activities outside EU/Norway/Switzerland possible if • limited to 10% of project’s IVC budget • costs budgeted, borne, paid by partner from EU/Norway • explicitly mentioned and justified in AF

6. Partner Funding Partner Funding – Further Points of consideration • Is there a co-financing statement for each partner (EU + non-EU partner)? Is it on letter headed paper? Stamped? Signed? Does it confirm the amount of national co-financing as indicated in the Application form?

7. Financial Management CA checks + compiles all data into Payment Request to EC Reporting and Control System Certifying Authority Progress Reports checked by Project Officer and Financial Officer in JTS Joint Secretariat/ Managing Authority Expenditure controlled by LP-controller and collection of PP cost statements Lead Partner (LP)/ Expenditure controlled by PP-controller Project Partner Project Partner Project Partner

8. Financial Management • Country-specific control requirements • Organisation of the control = MS responsibility • Main types of systems (depending on MS) • Centralized system: certification through • Central public control or • Central private controller Central = at national or regional level • Decentralized system: certification through internal/external public and private controllers • chosen by partner from a shortlist established by MS or • proposed by partner and approved by central approbation body • Information per Member State on INTERREG IVC website

9. Financial Management Financial Management – Further Points of Consideration • Explain who will carry out financial management? In-house or external? • Describe reporting and control procedure taking account of • role of Lead partner • reporting periods • January – June; PR submission 1 October • July – December; PR submission 1 April • country specific control requirements • ERDF payment to LP within approx. 3 weeks after approval of PR • Include this information also under Component 1 • Preparation + submission of Progress reports, receipt of ERDF + disbursement to partners = activity • Progress reports = output

10. Eligibility • Preparation phase: costs are eligible • subject to project approval • within limit of EUR 30,000 • For first call: between 1 January 2007 and date of submission of AF to JTS (for first call = max.15 January 2008) • To be reported with Progress Report 1 • Project implementation phase: costs are eligible if • incurred after date of MC approval • paid before finalisation month quoted in the AF

11. Budget • The budget lines • Staff • Administration for personnel employed • Travel and Accommodation by partners in AF only! • Equipment • External Expertise and Services • Sub-Projects for mini-programmes only

12. Budget • Staff • Personnel costs for the time spent by staff on carrying out project activities (Full-time or percentage of total working time) • Only for personnel directly employed by the partner organisation listed in AF • Employee’s gross salary + employer’s charges

13. Budget • Administration • Stationery • Photocopying • Mailing • Telephone, fax, Internet • Heating, electricity • Office rent, furniture, maintenance Don’t artificially inflate this budget line through inclusion of indirect cost categories (overheads) that lack a clear project link.

14. Budget • Travel and Accommodation • Choice of most economic form of transport • In compliance with national or internal rules • Daily allowances possible if national or internal practice • Equipment • Purchase of material necessary for project implementation • Usually IT equipment • Should not exceed 5% of total costs

15. Budget • External Expertise • Examples: • External project coordination or financial management • External financial control • Website design and hosting • Drafting, lay out printing of newsletters, studies and surveys • External event organisation, meeting room rental and catering • Interpretation and translation • External speakers and participants in meetings

16. Budget • External Expertise • All expenses paid by the partners on the basis of • Contracts/agreements (public procurement!) • Invoices/requests for reimbursement to external providers (incl. staff, admin, travel etc.) • External = anyone who is not employed by partner institutions

17. Budget • Sub-projects • For mini-programmes only • Forecast expenditure on sub-projects to be selected in open calls for proposals and transparent assessment + selection procedure.

18. Budget • Budget - Further points of consideration • VAT – not eligible if recoverable • In-kind contributions - not eligible in INTERREG IVC

19. Budget • Budget – Further Points of consideration • Did you respect budget recommendations (min/max ERDF)? • Is the total budget justified by project duration, scope + complexity of activities and partnership? • Does the detailed budget by budget line + component reflect the activities? • Is the ratio “administration/staff” below 25% (recommended)? • Is the ratio “Component 1/total budget” below 20% (recommended)? • Is the ratio “equipment/total budget” below 5% (recommended)? • Is the expertise and equipment necessary for project implementation (make specifications self-explanatory!)?

20. Budget • Shared costs • Responsible partner has to provide to all partners taking over a share of common costs • request for reimbursement • all relevant supporting documentation • Responsibility of each partner to include share of common costs in own financial report and to obtain confirmation from controller (according to country specific control requirements) • Recommendation: • limit as much as possible shared costs to budget line “external expertise and services” • include procedure in partnership agreement • procedure for sharing and reporting costs to be checked with national controllers of each individual partner concerned.

21. Budget • Payment forecast • Forecast of costs paid out during reporting periods • January – June • July – December • To be prepared carefully as projects not reporting in time and in full risk losing funds

22. Further Information • Operational programme • Programme manual • Programme website • JTS + Info Points • National contact points Thank you for your attention!