3 rd Payment Claim

1. 3rd Payment Claim Managing and Steering Committee Meeting – 18-19 March 2013, Karlsruhe BioenNW– Delivering Local Bioenergy to North West Europe

2. Background First Payment Claim: 1/Apr/2010 – 31/Jan/2012 Second Payment Claim: 1/Feb/2012 – 31/Jul/2012 Third Payment Claim: 1/August/2012 – 31/Jan/2013 Managing and Steering Committee Meeting – 18-19 March 2013, Karlsruhe BioenNW– Delivering Local Bioenergy to North West Europe

3. Claims: partners and spend All 14 partners should report costs they incurred during the reporting periods Total reported spend by 31 December 2011 should be: €945,844 that equals 11.8% of the project’s total budget Total reported spend by 31 December 2012 should be: €3,082,760 that equals 38.6% of the project’s total budget Managing and Steering Committee Meeting – 18-19 March 2013, Karlsruhe BioenNW– Delivering Local Bioenergy to North West Europe

4. First claim: partners and spend Only 4 partners reported their expenditure: BCU, Fondaterra, SRE, Aston University Total spend approved by JTS on 31 January 2012: €90,876 that equals 1.1% of the project’s total budget Managing and Steering Committee Meeting – 18-19 March 2013, Karlsruhe BioenNW– Delivering Local Bioenergy to North West Europe

5. First claim underspend Total underspend on 31 January 2012: €854,968 Partnership spent only 9.7% of the target spend Managing and Steering Committee Meeting – 18-19 March 2013, Karlsruhe BioenNW– Delivering Local Bioenergy to North West Europe

6. Second claim: partners and spend Only 11 partners reported their expenditure: Aston, Fondaterra, BCC, BCU, Energy Hills, HI3, TWEED, RITTMO, MDM, SRE, HAUC 3 Partners didn’t claim: KIT, OREG, EUBIA Total spend reported by partners on 31 July 2012: €692,276 that equals 8.6% of the project’s total budget Managing and Steering Committee Meeting – 18-19 March 2013, Karlsruhe BioenNW– Delivering Local Bioenergy to North West Europe

7. Second claim underspend Total underspend on 31 July 2012: €2,390,483 Partnership spent only 22.4% of the Jan 2013 target spend Managing and Steering Committee Meeting – 18-19 March 2013, Karlsruhe BioenNW– Delivering Local Bioenergy to North West Europe

8. Third claim: partners and spend Only 9 partners reported their expenditure: Aston, Fondaterra, BCU, TWEED, RITTMO, MDM, SRE, HAUC, KIT 3 Partners didn’t claim: BCC, HI3, EUBIA 1 new Partner: IZES – do not claim yet; 2 partners stepped out (OREG, Energy Hills) Total spend reported by partners on 31 January 2013: €1,472,851 that equals 19% of the project’s total budget Currently project is under spending by 51% (previous forecast envisaged 44%) Managing and Steering Committee Meeting – 18-19 March 2013, Karlsruhe BioenNW– Delivering Local Bioenergy to North West Europe

9. Third claim underspend Total underspend on 31 January 2013: €1,609,909 Partnership spent only 48% of the Jan 2013 target spend Managing and Steering Committee Meeting – 18-19 March 2013, Karlsruhe BioenNW– Delivering Local Bioenergy to North West Europe

10. Actual July 2012 Actual January 2013 Managing and Steering Committee Meeting – 18-19 March 2013, Karlsruhe BioenNW– Delivering Local Bioenergy to North West Europe

11. Why it is important to follow your spending profile Budget spending profile is an integral part of the application that was submitted to JTS. As such it is a part of the partnership’s contractual obligation instead of a restriction laid down by a directive. BioenNW performance will be measured against our spending profile, amongst other indicators. Keeping on track of the spending profile is extremely important as if the projects are not spending JTS may decide to disengage with the project and simply cut its budget. This is possible as JTS are subject to a scrutiny of the Interreg Programme Managing Authority which monitors the spending profile on the Programme level. At the moment the Programme is badly underspent - around 8M euros and for this reason the projects are under pressure to follow their spending profiles. BioenNW partners’ budgets reflect your activities and if you don't spend, it is a first warning that you probably do not do much and /or the activities are not undertaken on an envisaged scale. It is important to manage and monitor your individual spending profile as well as the partnership spending profile. Managing and Steering Committee Meeting – 18-19 March 2013, Karlsruhe BioenNW– Delivering Local Bioenergy to North West Europe

12. Consequences Budget cuts – first warning Disengagement – premature termination of the project Managing and Steering Committee Meeting – 18-19 March 2013, Karlsruhe BioenNW– Delivering Local Bioenergy to North West Europe

13. Current spending targets per partner€0 - reported so far€55,140 - 2012 target spent100% - cumulative underspend Managing and Steering Committee Meeting – 18-19 March 2013, Karlsruhe BioenNW– Delivering Local Bioenergy to North West Europe

14. Current spending targets per partner€6,646 - reported so far€517,589 - 2012 target spent98% - cumulative underspend Managing and Steering Committee Meeting – 18-19 March 2013, Karlsruhe BioenNW– Delivering Local Bioenergy to North West Europe

15. Current spending targets per partner€4,608 - reported so far€90,993 - 2012 target spent95% - cumulative underspend Managing and Steering Committee Meeting – 18-19 March 2013, Karlsruhe BioenNW– Delivering Local Bioenergy to North West Europe

16. Current spending targets per partner€83,819 - reported so far€263,971 - 2012 target spent68% - cumulative underspend Managing and Steering Committee Meeting – 18-19 March 2013, Karlsruhe BioenNW– Delivering Local Bioenergy to North West Europe

17. Current spending targets per partner€19,860 - reported so far€60,456 - 2012 target spent67% - cumulative underspend Managing and Steering Committee Meeting – 18-19 March 2013, Karlsruhe BioenNW– Delivering Local Bioenergy to North West Europe

18. Current spending targets per partner€123,731 - reported so far€336,353 - 2012 target spent63% - cumulative underspend Managing and Steering Committee Meeting – 18-19 March 2013, Karlsruhe BioenNW– Delivering Local Bioenergy to North West Europe

19. Current spending targets per partner€50,672 - reported so far€96,312 - 2012 target spent47% - cumulative underspend Managing and Steering Committee Meeting – 18-19 March 2013, Karlsruhe BioenNW– Delivering Local Bioenergy to North West Europe

20. Current spending targets per partner€501,067 - reported so far€784,398 - 2012 target spent36% - cumulative underspend Managing and Steering Committee Meeting – 18-19 March 2013, Karlsruhe BioenNW– Delivering Local Bioenergy to North West Europe

21. Current spending targets per partner€124,884 - reported so far€160,759 - 2012 target spent22% - cumulative underspend Managing and Steering Committee Meeting – 18-19 March 2013, Karlsruhe BioenNW– Delivering Local Bioenergy to North West Europe

22. Current spending targets per partner€200,180 - reported so far€220,217 - 2012 target spent9% - cumulative underspend Managing and Steering Committee Meeting – 18-19 March 2013, Karlsruhe BioenNW– Delivering Local Bioenergy to North West Europe

23. Current spending targets per partner€220,486 - reported so far€191,971 - 2012 target spent14% - cumulative overspend Managing and Steering Committee Meeting – 18-19 March 2013, Karlsruhe BioenNW– Delivering Local Bioenergy to North West Europe

24. Current spending targets per partner€107,143 - reported so far€64,471 - 2012 target spent66% - cumulative overspend Managing and Steering Committee Meeting – 18-19 March 2013, Karlsruhe BioenNW– Delivering Local Bioenergy to North West Europe

25. Reasons for reporting a low level of spend Late start of the project First time in an EU/Interreg funded project Staff costs and Investment costs form 69% of BioenNW budget Managing and Steering Committee Meeting – 18-19 March 2013, Karlsruhe BioenNW– Delivering Local Bioenergy to North West Europe

26. Ways to mitigate a low level of spend in the future Partners to be focused on deliverables and outputs Making accurate financial forecasts for the next period Partners who have not reported so far will have to report all their costs for the period 1.04.2011 – 31.07.2013 by 15 September2013 Higher spend needs to be achieved on Staff Costs (all partners) and Investment (Aston and HI3) Managing and Steering Committee Meeting – 18-19 March 2013, Karlsruhe BioenNW– Delivering Local Bioenergy to North West Europe

27. Lessons from the previous claim Exchange rate - partners convert their expenses from their national currency into Euros using the monthly exchange rate of the month the partner's claim was submitted to the Lead Partner. Staff costs – based on monthly timesheets, actual costs instead of average Interreg requirements v internal policies Contracting your delivery partners Adequate signing Required set of documents/OLF Reimbursement of the partners by the Lead Partner Suspension of the payments to German partners Managing and Steering Committee Meeting – 18-19 March 2013, Karlsruhe BioenNW– Delivering Local Bioenergy to North West Europe

28. Payment of the First and Second Claims has been already made Managing and Steering Committee Meeting – 18-19 March 2013, Karlsruhe BioenNW– Delivering Local Bioenergy to North West Europe