INTERREG IIIB NORTHERN PERIPHERY PROGRAMME Partner Seminar Inverness Scotland 24th August 2006

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INTERREG IIIB NORTHERN PERIPHERY
PROGRAMMEPartner SeminarInverness
Scotland24th August 2006
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Paying Authority
Present Staff Ingela Carlsson ingela.carlsson_at_ac.
lst.se 0046-(0)90 10 73 82 Anna
Viktorsdotter anna.viktorsdotter_at_ac.lst.se 0046-
(0)90 10 82 34 Mikael Johansson mikael.johansson_at_
ac.lst.se 0046-(0)90-10 72 25 Address County
Administration of Västerbotten Paying Authority
NPP S-901 86 UMEÅ, Sweden
Dont hesitate call us!
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Topics

• Time schedule
• Advice and reminders
• Frequent problems
• Overheads
• Final audit
• The future

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Finishing the Project - Time Schedule (1)

• First stage end project activities
• The project should be finished by the date set in
  the decision (example 30.06.2006)
• Activities should stop no later than the
  finishing date in the decision (30.06.2006)
• No costs incurred after the finishing date will
  be accepted as eligible. Exception Costs for
  final reporting and auditing.

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Finishing the Project - Time Schedule (2)

• Second stage activities have beenfinished
• After activities end projects have three
  additional months (until 30.09.2006) that
  should be used for a) final reporting
  Note that Partners expenditure for final
  reporting are also eligible. b)
  allowing for costs to be paid (until
  31.03.2005)Costs paid after these three months
  will not be accepted (exception auditing costs)
• Report should be audited sent within six months
  from the finishing date of the project.
  (31.12.2006) but may well be sent sooner.

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Finishing the Project - Time Schedule (3)

• End of present NPP programme-special rules
• All project activities must end before Dec 2007
• Which means that all project expenditure must be
  paid before Mar 31st 2007, with the exception of
  auditing costs. Preferably sooner.
• All final reports from projects must be sent in
  before March 31st 2007, preferably sooner.
• All payments from the PA to projects should be
  made before Sep 30th 2008 (yes, preferably
  sooner!)
• Final payment claim from the programme to the
  Commission must be made by the Paying Authority
  Dec 31st 2008 at the latest.

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Frequent problems

• Overhead costs
• Common costs split between partners. (Project
  administration)
• Salaries and social contributions not
  sufficiently substantiated
• Procurement procedures not adhered to/not
  substantiated
• Co-financing not received/not substantiated.
  Insufficient co-financing not full payment from
  NPP
• Funding correctly separated between
  EU/No/Ice/F.I/Gr

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A bit of advice

• The boy scout approach Be prepared. Start work
  on the final report as soon as possible, even
  before project activities end.
• You might consider ending project activities
  earlier
• Note that projects finishing later than Sep 30th
  have a tighter time schedule.
• First come, first served
• Risk of non-payment of the last 5 for
  slackers(Commission does not pay last 5 until
  after final report is accepted, probably in 2010)

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Dont forget... (1)

• Clear up all old issues (common responsibility
  for the project/the PA)
• Make sure youve received and substantiated all
  your co-financing
• Make sure all expenditure has been paid.
• If applicable, split up up all eligible
  expenditure between Objective 1/Non Objective 1
  areas (60 or 50 grant).
• An average has been paid now it must be sorted
  out!
• Make sure youve distributed the funding
  correctly in relation to the eligible expenditure
  of each partner

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Dont forget...

• N.B! There can be no transferring of funds
  between EU/No/Ice/F.I/Gr.
• Need to redistribute your budget (/- 15)?
  Contact the JPS
• Need prolonging the project? Contact the JPS. (We
  recommend restricitivity - do your utmost to keep
  to the schedule)
• Indicators- how have they been measured- what
  was the starting value?- use the indicators for
  your measure (please!)
• Final audit
• Final audit The Catch 22 Get a quote from your
  auditor and enter that amount in the entries.
  Send us the invoice when you receive it.

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Overhead Costs (1)

• Guidelines shortly (see draft)
• Should be part of the project budget in the
  application/decision.
• A model for the allocation of overhead costs
  should be enclosed in the claim.
• - Should be based on actually paid expenditure
• - Will be tried and approved by the PA.
• - The allocation should be pro rata according to
  a duly justified, fair and equitable method.
• - PA decides what is fair and equitable

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Overhead Costs (2)
General principlesRestrictive use of overhead
costs. Allocate costs directly to the project as
much as possible - If you would have had the
same cost even without the project, it should not
be included in the overhead.
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Overhead Costs (3)
You can NOT include - Directors fees- The
CEOs salary- Salaries to the managerial staff
- Subsistence- Mileage allowance/car
compensation- Travel expenses- Benefits in
kind- Training- Health care- Representation-
Investments or depreciation - Leasing- Bad
debts
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Overhead Costs (4)
The allocation model can be constructed in a
number of ways. A simple model is to calculate
overhead cost/hour as shown below Calculate
total included expenditure/year (exclude non
eligible costs as listed above) x Calculate
total no. of hours worked in the
organisation/year yx/y Overhead
cost/hour z When claiming, multiply z by
the number of hours worked in the project
according to the timesheets.
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Final Auditing Requirements

• The entire project must be audited
• Only lead partners need to be audited, provided
  that the auditor checks the entire project.
• Annual audits for projects that do not send
  ledgers with each claim to the PA.
• If you have had annual audits your auditor can
  add them up no need to do it all again!
• Internal or national auditors may be used, but
  must be pre-approved by the PA.
• Note New Auditors Certificate.
  Downloadhttp//www.northernperiphery.net/library
  .asp(see copies)

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Financial audit (1)

• The auditor should confirm that
• Costs are project related
• Activities are in accordance with the project
  description
• The project can assure good internal control
• Costs are in accordance with the Commission
  regulation (448/2004)
• The project is administered in accordance with
  the Grant Letter and the Conditions

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Financial audit (2)

• The auditor should confirm that
• Separate project accounting has been used
• The information in the entries file corresponds
  to the separate accounts
• Income is accounted for
• The projects cost only include VAT if the project
  actually bore this cost
• The relevant public procurement rules have been
  applied.

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The future Objective 3 NP (1)

• New regulation and new authorities Managing
  Authority/Certifying Authority/Audit Authority
• New internal organisation MA/CA
• Managing Authority also responsible for
  correctness of claims/providing guidelines
• New monitoring system new routines, forms etc.
• First level control mainly by projects own
  auditor. Audit certificate becomes the central
  document. Each claim/annually?
• New MA provides project auditors with detailed
  guidelines. Auditor Seminars?

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The future Objective 3 NP (2)

• More focus on preventing errors through
  seminars etc.
• Fewer and clearer rules, complete
• revision of PGPM.
• A more advisory function better accessibility
  by e-mail, phone etc.
• More auditing at on-the-spot checks
• Second level control (5 ) by Audit
  Authority