Title: The Financial managing of PIC INTERREG III B Alpine space
1- The Financial managing of PIC INTERREG III B
Alpine space - Pusemor Project
- Giovanni Colucci January 28, 2005
-
2Financial Flow
- Demand for expenses refundment
- Refundment
- Expenses certification
3Financial flow
4Financial flow
5Demand for expenses refundment
- 1. Presentation of the demand
- Each partner sends (Lead Partner included) all
the documentation (copy in compliance with the
original) of the expenses done. - 2. Certification
- The National Certificator verifies expenses
validity and signs the certification saving a
copy of the accounting documentation.Then he
sends copy of accounting doc.,with the
certification, to the partner in order to make
him send it to the Lead Partner.
6Demand for expenses refundment
- 3. Presentation to the Lead Partner
- Partner send to Lead Partner the doc related to
accounting and certification according to the
times of the partnership agreement. - 4. Coherence check
- Lead Partner checks coherence of the expenses
certified by Partners according to Application
Form. Consolidates requests for payment and send
them to the Managing Authority for the FESR
activation.Requests must be presented by the Lead
Partner to the Managing Authority according to
the Subsidy Conctract.
7Refundment
1. Request for payment issue Managing Authority
approves requests for payment and send them to
the Payment Authority of the Program. Payment
Au. Transfers FESR funds directly to Lead
Partner. 2. Refundment of FESR fund to the
Partners Following the receiving of the total
FESR financing,Lead Partner sends to the Italian
Ministry of Finance (IGRUE) the others italian
national partners funds, notifying the M.of
Finance and the national payment Authority about
the national partners and the percentage to
credit. M.of Finance credits the requested
cofinancing on the single partner account.
8Refundment
3. Refundment of national fund to Partners Once
received information by the Lead Partner about
the financing credit by UE and the other project
partner funds, The National Payment Authority
demands for national cofinancing payment to
Italian Ministry of Finance. 4.
Refundment Following the check of the
availability of UE financial resources on the
Fondo di Rotazione - Italian Ministry of Finance,
M.of Finance distributes FESR funds to project
Partner (on the C/A current account mentioned in
the application - every change must be
communicate to Technical Secretariat and to the
Managing Authority).
9Expenses certification
- 1. Repayment request
- Project partner sends accounting kit with the
receipts to the National Coordinator that he
sends to the I st level certificator. - 2. Control hearing
- Certificator does Ist level control in the 30
days following the date of receiving. - 3. Certicate emission
- In case of positive result,certificator send the
total expenses certification.
10Expenses certification
- 4.Request for integration Emission /
Certification - In case of negative or partial result,certificator
suspends irregular expenses and send out a
partial certification. Any irregularity or
mistake will be communicated to the Project
partner by a request for integration. Partner
will sends the documents asked. Once the
suspended expenses, will have regular documents,
they will have a separate accountig (see
procedure nr.1).Account presented following
request for integration will be check within 21
days after receiving. - Expenses whose irregularity has still to be put
right will be cancelled after 90 days from the
first request for integration. - At the end of that process certificator will send
certification judgment (total or partial
certification) to the partner.
11Preliminary statement
- These slides concern accounting expenses
Procedures fixed by the Italian national
certificator for italian partners. - For not italian project partners they will have
to consider procedures fixed by their own
certificators. - Procedures may change in each state but expenses
admissibility rules are the same for all the UE
States because fixed by Regulation (CE) 448/2004.
12Principle Regulations
-
- The principle UE regulations for structural
funds management are - Regulaton (CE) nr. 1260/1999,_ general
disposition on structural funds - Regulaton (CE) nr. 438/2001 modified by
Regulation (CE) nr. 2355/2002_ that modifies
applying rules of Regulament (CE) nr.1260/1999 _
systems of managing and control of the given
contributions in the structural funds ambit - Regulation (CE) nr. 448/2001_ application rules
of Regulation (CE) nr. 1260/1999 for financial
changes of the given contributions in the
structural funds ambit - Regulation (CE) nr. 1685/2000 modified by
Regulation (CE) nr. 448/2004_ admissibility rules
to cofinancing - Euratom Regulation nr. 2185/1996_ Commission
Control and checks against fraud and
irregularity - Euratom Regulation nr. 2988/1995_ UE financial
interests protection - Regulation (CE) nr. 1681/1994_ Irregularity and
money recovery - Regulation (CE nr. 1159/2000_ Informative actions
on structural funds - Decision (CE) nr. 4017 del 19/12/2001_ Approval
of PIC Interreg III B 2000-2006 ALPINE SPACE. - Commission comunication nr. 226-02, 02/09/2004
13General rules of admissible expenses
- The admissibility criteria of expenses during
projects that have been admitted to the PIC
Interreg III B financing, are based on the
general management and control laws of structural
funds, as well as on specific laws and
regulations of that program.
14Elegibility of the program
- According to art. 30, clause 2, of Regulation
nr. 1260/99, the initial date of the
admissibility expense is the receiving date of
the intervention request from the European
Commission. As far as Interreg III B, 2000-2006
ALPINE SPACE, is concerned, this date is December
21, 2000 untill December 31, 2008.
15Elegibility of the project
- From a project point of view the initial date of
the admissibility of the expense is the one that
(as defined in the general conditions of the
contract between the Managing Authority and the
Lead Partner -Federal Office for Spatial
Development of Switzerland FOSD-CH-Bundesamt für
Raumentwicklung ARE / EDRF Lead partner Regione
Lombardia, Direzione Generale dellIndustria,
Piccole e Medie Imprese, Cooperazione, Turismo)
of the project coincides with the date of the
beginning of the project shown in the application
form approved by the Steering Committee that in
our project is January 1, 2005 while the
predicted end is June 30, 2007.
16The assessed financial Plan
- These below are the Interreg III B Alpine
space financial plan expenses items - Staff (Costi di personale)
- External expert and consultants (Esperti esterni
e consulenti) - Travel and accomodation (Spese di viaggio e
soggiorno) - Conferences and seminars (Conferenze e seminari)
- Infrastructure investment (Infrastrutture e
Investimenti) - Office equipment (beni durevoli)
- General expenses (Spese generali)
- Other costs (Altri Costi)
17Personnel
- Personnel expense can include
- a) Direct personnel expense for personnel
directly attributed to the project - v Long term(with no time limit) hired workers
(According to what is defined in the Regulation
nr. 448/2004 - v Short term (with time limit) hired workers
- v Workers hired with a Project collaboration
contract. - b) Indirectpersonnel expense for personnel not
directly attributed to the project (for example
secretaries,operators,etc.).
18Methodological aspects of accounting
- In order to define cost of personnel we have to
consider the yearly payment of the workers. - In particular, the accountable amount is
- ((RALDIFOS)/(h/lavorabili))(h/uomo)
- RAL yearly gross payment (not other compensation
fixed in CCNL) - DIF postponed payment (TFR e 14ma)
- OS social and fiscal burden
- h/lavorabili yearly working hours
- h/uomo working hours dedicated to the project.
19Expenses receipts
- Expenses receipts can be
-
- Personnel list related to the project. In the
list must be indicated the qualify, job
function, percentage of imputation to the
project,the name of the worker.It occurs also
indicate separately the total remuneration (
including social costs ) and the eleggible costs
in the project (D.P.R 445/2000) - Internal service order or assignement letter that
shows the role in the project and the foreseen
working days/hoursthat document must be done
before the beginning of the service (D.P.R
445/2000) - Payment receipt (cedolino paga) with the stamp
Expense done according to PIC Interreg III B
ALPINE SPACE, project . n..amount of
..accounting date - Payment receipts of social and fiscal costs
- Debit note with the stamp Expense done according
to PIC Interreg III B ALPINE SPACE, project
. n..amount of ..accounting date - Montly Time Sheet , signed by the legal agent
or by the administrative manager, with name,
qualification, days and/or working hours on the
project,project code,month,sign of the worker.
20Receipts
- Expense payment receipts can be
-
- The F24 model with the deposit of the deduction
and the contribution(tax) - Bank cheque not to order or circular note in wich
can be clearly read the amount and the name of
the person who was made out to(with the related
bank statement) - Journal with the cash payments not exceeding to
250 - Payment order (receipted by the bank)
- Bank statement (that shows the deposit of money
transfer and cheque)
21External expert and consultants
- These expenses are referred to not continous
working performances, professional performances,
cheque for grant and/or research and auditing
activities related to the project. - Perfomances can be web-designer work, studies,
reporters for seminars and/or convetions, other
performances. - In this case the cost that can be attribute to
the project is determined,for professional and
not continous performer, by the rate
pre-defined for similar activities by
professional register (anyway generally not
exeeding euro 1.300 per day). - On the contrary, in the case of grant, the cost
is determined by the amount defined in the
contract and according to internal regulations
and to the related laws. - In order to certify the expense, public partner
must produces documentation that shows the
respect of the public procedure followed in order
to assign the task.
22Receipts
- Expenses receipts for instance can be
- Contract signed for acceptance in which there is
the kind of performance/activity done,its
length,remuneration,its quota to the project - Invoice or debit nore or note of fees
- Documents with the deposit of the social charges
and taxes - Payment receipts can be
- Payment order (receipted by the bank)
- Order for payment
- Bank cheque not to order or circular note in wich
can be clearly read the amount and the name of
the person who was made out to - Journal with cash payments not exeeding to
250. - Bank statement with bank transfers (even
cumulatives) that indicate the deposit done - All the originals of the expenses receipts must
have the stamp Expense done according to PIC
Interreg III B ALPINE SPACE, project PUSEMOR
n..amount of ..accounting date
23Travel and accomodation
- All the expenses made for meetings, seminars,
convention and other activities related to the
project. - Transport going and return from the meeting
place, visa, airport fees, travelling and
meeting expenses - Board and lodging hotel, food or bonus for food,
mission allowance. - The above mentioned expenses regarding internal
workers can be accounted according to the CCNL
contract or company contract or to regulations/
internal circulars at the Government
Beneficiaries. -
- All the receipts must be submitted in double copy
in compliance with the original. Even the
professional that has already invoice that
expenses must submit the receipts in double copy.
- Flat (forfait) expenses are not admissible.
24Receipts
- Expenses receipts can be
- v Transfer documentation (e.g. transfer
authorization) with transfer description
including, name of the person, the date, reason
and the place of it - v Flight ticket (the holder must be the person
authorized for the transfer) - v Railway ticket stamped with the date of
departure - v Higway toll receipts
- v Renting car invoice
- v Own vehicle a travel prospectus e with daily
kilometers (going and return), total amount of
kilometers and the due repayment,with receipted
document and with the own veichle using
authorization.The repayment of the use will be
the 1/5 of the average cost of one liter of
gasoline for each done Km according to ACI
(Italian Cars Association) table or Governamental
table (Ministeriali).For rented veichle (Maximum
class C or equivalent) or taxi the determination
of the value will be done on the real cost,making
comparison with other transportation - v Board and lodging invoice
- v Receipted payment of the transfer repayment
- v Repayment transfer request of the worker with
double copy in compliance with the original of
the single expense payment documents. - v Invoice o debit note with travelling expenses
and sinhgle transfers with copy in compliance
with the original of the receipts
(receipts,tickets). - All the originals of the expenses receipts must
have the stamp - Expense done according to PIC Interreg III B
ALPINE SPACE, project PUSEMOR n..amount of
..accounting date
25Receipts
- Payment receipts can be
- Detailed ticket (e.g.checks, bills) with specific
indication of the purchases done - Payment order (receipted by the bank)
- Bank statement with bank transfer to the
supplier - Bank cheque not to order made out to the supplier
or to the authorized person - Circular note made out to the supplier or the
authorized person - Journal with cash payments (max 250).
26Conferences and seminars
- All the expenses done for conventions and
seminars and the related board and lodging of
people and reporters - In detail these expenses can be
- v Catering
- v Relators transport and board and lodging
- v Translations
- v Room renting and equipment, Interpreters.
-
27Receipts
- Required expenses receipts
- Flight ticket made out to the attendee
- Railway ticket stamped with the date of
departure - Board and lodging invoice
- Invoice for KM repayment in case of own car with
the authorization of the person responsible for
the project(max class C) - All the originals of the expenses receipts must
have the stamp Expense done according to PIC
Interreg III B ALPINE SPACE, project PUSEMOR
n..amount of ..accounting date - Required expenses receipts
- v Expenses receipts
- v Payment order (receipted by the bank)
- v Bank statement with bank transfer to the
supplier - v Bank cheque not to order made out to the
supplier or to the authorized person - v Circular note made out to the supplier or to
the authorized person - v Journal with cash payments (max 250).
28Infrastructure investment
- Durable are all he things purchased for goals
related to project.(in inventory journal or in
depreciation because can be used for more than
one year). -
- Cost of them (nr. 1 Really done expenses of
Regulation CE 448/2004) is equal to the cost of
depreciation on condition that there is
connection with the goals,not purchased with
other financing,cost of depreciation is
calculated according to fiscal rules. - Second hand properties is elegible on condition
that there are(Reg.CE 448/2004) - Seller Declaration(origin/not other financing in
the last 7 years). - b) That cost must not be exeeding his market
value and not exceeding the new. - c) Technical qualities must be adequate to the
goals and rules. - 1 Article nr. 1 Really done expenses
Regulation (CE) nr 448/2004
29Receipts
- Expenses receipts can be
- v Public tender documentation.
- v Record of public tender
- v Contract/agreement with the winner(with details
of all costs) - Winner must account all costs.
- v Detailed report of the company who give the
contract to the contractor - v Invoice of the property purchase
- v Leasing or renting invoice
- v Purchasing note
-
- All the originals of the expenses receipts must
have the stamp Expense done according to PIC
Interreg III B ALPINE SPACE, project PUSEMOR
n..amount of ..accounting date
30Receipts
- Payment receipts can be
- payment order receipted
- Order for payment
- Bank cheque not to order made out to the winner
with copy of the bank statement - Circular note made out to the winner
31Office Equipment
- Expenses for purchasing of durable properties
(equipment) - Durable are all the properties that produce
more times, that can be written in the inventory
or depreciation journal. - Equipment is admissible if it is the most
advantageous - Admissible are also the quotes of depreciation.
- Project partner must prove in the Administrative
and Technical Report that he respected the most
advantageous rule. - In case of Leasing or renting must be respected
all the public tender procedures.
32Receipts
- Expenses receipts are
- Invoice of the purchase
- leasing or renting Invoice / receipt
- Delivery Note
- All the originals of the expenses receipts must
have the stamp - Expense done according to PIC Interreg III B
ALPINE SPACE, project PUSEMOR n..amount of
..accounting date - Payment receipts are
- Circular note or cheque not to order with the
amount and the name of the person who has made
out for with the bank statement - Bank statement that shows the real payment of
the bank cheques and transfer - Partner journal with cash payments(max 250 Euro)
- Payment order receipted by the bank.
33General expenses
- purchase expenses for consumable goods
- Properties with a life lt one year
- About these goods must be indicated in details
the attribuition to the project. - general direct expenses_ for example are
- travel insurance expenses
- expenses for grant or research bank cheque
- expenses for education of the people that work in
the project - printing expenses
- feightage and packaging expenses
- expenses for specific dedicated telephone
lines. - That expenses must be done only for project
activity( for each event must be
indicatedgoals,partecipants,lasting,localization,
languages translated)That information must be
written in the administrative and technical
report.
34General expenses
- General indirect expenses_ expenses that have
to be attributed pro quota to the activities of
the project - renting expenses for real property
- ordinary maintenance expenses
- stationery expenses
- mail expenses
- general services expenses
35General expenses
- Attribuition criteriaof the direct expenses must
be ruled by the principle of cost accounting. In
particuolar, in order to determine the quote part
of indirect expenses to attribuite to the project
will be use this rule - hL / hT
- hL hours worked dedicated to project(they are
equal to accounted hours in Staff for direct
personnel, and General expenses for direct
personnel). - hT total conpany hours.They are nr.7 of
dependent personnel and/or similar multiplied by
coefficient standard coefficient of 17608 hours. - That coefficient of indirect cost apportionement
has to be multiplied by singles invoice amount of
the indirect expenses, in order to determine the
amount of indirect expenses on wich the
rembursement in directed. - If the total amount of indirect general expenses
is less than the expenses admissed in budget,
the difference can be used and accounted for the
direct general expenses and for purchasing of
consumable goods.
36Receipts
- Expenses receipts
- Invoice of the purchase of the property
- debit note of the purchase of the property
- telephone bill.
- All the originals of the expenses receipts must
have the stamp Expense done according to PIC
Interreg III B ALPINE SPACE, project PUSEMOR
n..amount of ..accounting date - Payment receipts
- Circular note or bank cheque not to order with
the clear amount and the name of the person who
is made for with the bank statement - Bank statement that shows the real payment of
cheques and money transfers - Official Partner Journal with the cash
payments not exceeding to 250 - Payment order (receipted by the bank)
37Dissemination costs
- Information activities are admissible if done
according to regulation nr. 1159/2000 and to the
dissemination information Plan. - Accountable promotion publication activities
can be - v Publication related to conferences and
seminars - v Brochures (with general information about the
project) - v Video presentations on the activities done.
38Receipts
- Required expenses receipts are
- Invoice of the purchase and/or of the
performance with the stamp Expense done
according to PIC Interreg III B ALPINE SPACE,
project PUSEMOR n..amount of ..accounting
date - Riceipt of the purchase and/or of the performance
with the stamp Expense done according to PIC
Interreg III B ALPINE SPACE, project PUSEMOR
n..amount of ..accounting date -
- Paymente receipts for instance can be
- Payment order (receipted by the bank)
- Order for payment
- Bank cheque not to order made out to the
property /service supplier - Circular note made out to the property/service
supplier bank statement with bank transfer that
shows the payment and the holder clearly
specified.
39Other expenses
- All the expenses directly or indirectly related
to the project, at full cost or adding these to
the project according to pro-rata criteria, that
are not in the prevoiusly mentioned category. - These expenses will be evaluated case by case
respecting the fact that they must be concerning
the acticities done in the project and according
to the rules fixed by the regulation (CE) nr.
448/2004.
40Receipts
- Expenses receipts can be
- v Calculation prospectus for each acounted amount
for part (in pro-quota) - v Invoice with stamp Expense done according to
PIC Interreg III B ALPINE SPACE, project
PUSEMOR n..amount of ..accounting
date - Payment receipts can be
- v Bank cheque not to order made out to the
receiver - v Circular note made out to the receiver
- v Bank statement with money transfer
41Not admissible expenses
- These are not admissible expenses
- Negative interests
- Premiums ( financial and collection charges )
- Loss on exchange
- Amends, penalties and legal disputes expenses
- Big infrastructure (higways or major ways)
- Cars and other vehicles with an engine
- Natural Contributions 1
- Marketing or selling expenses and/or
distribution of properties and/or services
expenses if not related to the project and not
indicated in the Application Form - 1 except for what is defined in the regulation
nr. 448/2004 and not exceeding the 15 of the
project budget.
42Admissible expenses in some cases
- Subcontract in the cases mentioned in
Regulation 448/2004 - Natural Contributions - in the cases mentioned in
Regulation 448/2004 - Depreciation depreciation cost of real
properties or equipment directly related to the
project is admissible on condition that - Not other national or UE financing have been used
to purchase real properties or equipment - Depreciation cost calculated according to
accounting rules and is supported by depreciation
plan that has to be attached at the accounted
expense (Infrastructure Investment and
Equipment) - Only referred at the cofinancing period.
43Admissible expenses in some cases
- VAT - VAT admissible only if really and
definitely done by the final payee. Recoverable
VAT is not admissible even if will not be really
recovered by the final payee. - In order to admit VAT is necessary to present a
declaration signed by legal responsible of the
project that certifies the VAT treatment. - IRAP - IRAP is admissible only if calculated on
payment for the work attributed to project.
44Revenue
- Possible incomes produced by project activities(
(as selling/hire of properties and services)
riduce the requested financing amount and are
deducted from admissible expenses of the project
entirely or o pro-rata (if they are generated
entirely or partially by the project). - Partners,in order to check obtained revenues
,have to send certificator the related receipt
documents (as invoice o equal documents, part
income C/A, partner oficial accounting journals)
that can support the request.