GUIDELINES Financial Administration and Reporting Porto, Feb. 16-18th 2006
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
Staff costs • Work contract per employee indicating gross salary or equivalent. • Monthly time sheet per staff member indicating work hours spent on project activities. • Calculation of actual daily rates per staff member.
Staff costs • Summary of all staff members’ monthly payments. • Copy of the monthly payslip per staff member. • Copy of bank transfer indicating the monthly payment of salary per staff member.
Staff costs Example: • 2088 hours – annual working obligation • - holidays 6 x 8 working hours = 48 • -vacation 38 x 8 = 240 • 2088 – 48 – 240 = 1800 hours/year : 12 months = 150 effective hours/month= 1,000,000 SIT : 150= 6,666 SIT
Other staff costs • Royalty statement –paid to people without regular contracts, but recurrently working on the project • Paid under the partner’s budget for personnel costs.
Direct costs Travel costsSubsistence
Travel costs • Report on dates, means and purpose of travel (travel report) • Copies of invoices, tickets, boarding passes • Copy of internal rules for subsistence costs • No copies of local bus tickets or taxi bills at a meeting place!!!
Travel reports • Travels are to be documented using a report form according to the national regulations.
Subsistencecosts • Include: accommodation, meal and local travel costs. • A full day travel includes accommodation costs. • Not to exceed the official subsistence rates (see the Financial Reporting Sheets file) • Travel costs to be calculated in accordance with the existing internal rules of your organisation (on an actual cost or daily allowance basis).
Subcontracting Activites which can be subcontracted: • Monitoring project development • Website designing and installation costs • Reference book manual graphic moulding costs • Reference book manual printing costs • Reference book on CD graphic moulding and printing costs
Subcontracting • Copies of the contracts indicating sum, contractor, payment details and detailed description of task • In case of tenders: copies of the tender as well as date and location of publication • Copy of the written request on the subcontracting sum to the Contractor • Copies of bank transfers of contracted rates
Subcontracting • The subcontracting must be agreed with a written contract. Contract must contain at least the following information: • subject of the subcontracting, • dates of start and end of subcontracting • amount to be paid • detailed description of the costs • work schedule or phases • payment procedures ( one or more instalments) • penalty clauses in the event of non-fulfilment of agreement or delays.
Subcontracting • Up to the sum of max. EURO 10.000,00 no public tender is required. However, each partner is obliged to ensure maximum transparency. • Invite at least two tenders. • Bring evidence for your choice (the price quality ratio is decisive!)
Subcontracting • Should the subcontract exceed the amount of EURO 10,000, a public tender is required. • Consultant fees should not normally exceed 400 Euro per day. • Costs of an independent consultant working full-time or frequently for the project should be reported under staff costs.
Other costs • Copies of invoices (mark the project related items when there are more items on it and some of them are not related to the project). • Copies of bank transfers or evidence for cash payment (in case of cash payment, further evidence is necessary that the employee who made the expense got these costs reimbursed by the employer and that these costs are part of the partner’s accounting system.
Other costs • Other costs, not covered by those indicated above, may be allowed, provided they are: • necessary for the performance of the project, • reasonable in amount, • fully documented and clearly itemised, • not indicated under another item of expenditure.
Other costs Costs incurred in translating and lectureship – whenpreformed by one of the members of partner institution who is not a member of the project team. • Bank charges related to the opening and maintaining of an account for the project. • Bank transfer and exchange costs relating to receipts and payments for foreign expenditure in the project.
General costs Costs which are specific to the project: • daily communication (fax, telephone, e-mail, etc.); • photocopying (provide rates and calculation forthe number of copies made fort he project) • office materials / stationery / office consumables;
General costs • Expenditure not accepted in any event: • structural costs not linked to the project, • office equipment or furniture Limited to 7% of the total project costs. No proof required.
Payments from coordinator to partners • Keep copies of all payments (a legally correct print-out from internet banking or an official bank statement indicating the sum of X has been transferred to your account on a certain date. • Note: all copies of invoices / bank transfers / calculations are to be saved as hard copies and stored in a special file (tobe sent on request).