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 Faqs
Finance, budget and accounting
Is there a budgetary limit for the subcontracting?
The program has not established a ceiling for the external expertise budget category. According to the Implementation Guide, these expenses are acceptable if within the partnership there are no necessary competences to carry out these activities. The added value of this kind of service must be clearly proved as external expertise costs may change the nature of the partnership essential purpose.
Where the « audit costs » must be included?
Expenditures for audits, when they are carried out by external auditors, have to be included in the external expertise budget category. If audits are carried out by an internal auditor, independent of the project management, the expenses will have to be budgeted and entered in the budgetary heading “Staff costs”. Each country will provide specific information on expenditures control modalities.
Can a partner modify the structure of the budget?
When the modifications between budgetary headings or between components cumulated over the duration of the project are lower than 10% of the global budget of the project, the project informs the Joint Technical Secretariat of these modifications. If the modifications envisaged go beyond 10% of the global budget (with a maximum of 30%), or when they affect the balance between the partners (whatever the amount), they must be justified and submitted to the Managing Authority (JTS) before modification for the validation by the Selection Committee. The modifications should not increase the global budget of the project. Transfers between partners need always an agreement of the Selection Committee.
In which budget line should travels and accommodation costs for external expertise be included?
When travel and accommodation expenses are related to persons not directly employed by the project partners as staff personnel, they must be included in the external expertise budget line.
Do we have the freedom to move funds from one component to another and from on cost category to the other?
The modification of the budget (change among components and/or change among cost categories) for up to 10% of the total project budget over the entire duration the project (changes are cumulative in time) is allowed and can be deliberated by the TEXMEDIN steering committee and must be communicated to the MA/JTS. For changes above 10% communication to and approval from the Selection Committee is required.
Hours of travel: is there a daily limit? How to calculate their costs? Which project component should be selected in the PRESAGE system?
The maximum accountable number of hours daily is 8. The cost corresponds to the daily gross cost, inclusive of taxes and social charges. Where provision is made for a per diem, it must also be accounted for. Anyhow, these indications should be verified with the 1st LC of each partner. Regarding the component, you can attribute these costs to C2 (management) in case the parther has travelled to a steering or operative meeting.
What does « internal staff » mean?
The internal staff is the staff of each partner of the project, employed with a regular work contract. If some members of this internal staff specifically work on the project, this cost can be partly considered. In this case, the breakdown of detailed expenses specifies the activities, the hourly or daily rate (coherent with the ordinary salary) and the number of hours for each activity financed. These elements must be justified with administrative documents.
What is the difference between Services (other than external expertise) and external Expertise?
The external expertise category concerns the following expenditures: analysis, studies, reports, a work more “intellectual”, whereas Services make reference to expenditures as catering, translation, interpreting, etc. When the expenditures deal with Services having a direct link to promotional costs, it is possible to choose between the line “Services” and the line “promotion” depending on the budgetary needs.
What is the maximum percentage for internal staff’s expenses?
As some projects mainly rely on internal staff work, this percentage can be very different from one project to another. Generally, it does not exceed 40 %. For more information, refer to the Implementation Guide.
How long the original documentation for the declared expenditure has to be conserved?
The original documentation for the declared expenditure (original invoices, proofs of payment and any other justification document) must be conserved by each partner until 2021. The same documents must be made available by the partners to the First Level Controller.
How have partners to proceed with the 1st level control certification?
The certificate produced by the 1st LC through the PRESAGE system has to be printed, signed and stamped by the 1st level controller and one copy has to be sent (also by fax or in scanned copy) to the Lead Partner.
Can partners report the Preparation costs?
Preparation costs (from 01/01/2007 to 31/10/2008) can be reported (only if foreseen by the partner budget) by inserting them in the PRESAGE system. They will be part of a separate certificate from the 1st semester certificate.
How to report travel expenditures that are part of travel reimbursement list?
Travel expenditures included in a reimbursement list can be inserted in the PRESAGE both as an global amount (corresponding to the reimbursement list grand total) or separately for each single item of the list (such as each single ticket, receipt, etc). In both cases the original single documents must be made available to 1st level controller for check.
Has the VAT to be reported?
It depends: partners who recover VAT must exclude it when they report an expenditure. Partners who don’t’ recover it can include the VAT while reporting an expenditure.
How to report the Staff cost?
Staff cost calculations must be explained by a timesheet and auxiliary documentation to explain staff cost calculations. Each partner can use its own model integrating it with project information and in coordination with its auditor. The staff cost calculation should be based on the gross salary and should include the social security.
How to proceed to acquire goods and service?
The acquisition of goods and services must respect the procedures stipulated in the national and Community standards as regards to tenders, attribution of contract and supply purchase, as well as regular stipulation of the contracts/letters of attribution of market.
As regards staff costs for people who have worked in September and are paid in October - their costs are not paid as at 30 September. Is it possible to include them in the 1st semester report ?
No. In the first report are included only expenses paid no later than 30 September. Later costs will fall within the second report.
We have some problems to allocate the various activities to a component rather than an other: eg. preparation of publicity material for the kick off meeting (newsletter, brochure) should be entered under communication (C1) or management (C2)? Is it necessary to strictly respect the components/cost categories or you can do as you like?
Working on material for publication must be entered under the communication component C1. As regards the allocation of expenditures to the different components there is 'some freedom' for the time being, but in the next future it will be necessary to take into account the percentage of budget allocated to each component in the approved proposal. In any case, it is foreseen that there can be adjustments of components and/or cost categories while implementing the project, but these adjustments are still premature at the present moment (end of the 1st semester of activity). As regards the allocation of expenditures to the different cost categories, this allocation is rather rigid and fixed and must comply with the criteria specified in the First Level Control Guidelines and analogous guidelines of the PO MED programme.
What about the 10% spending target reccomended by the Lead Parter of the project. Is it binding? Should the parters stay below this threshold?
The 10% spending target indicated by the LP is a recommendation and is not (at least for the 1st semester) binding. It will become binding after one year of activity of the project according to art. 3.7 of the Subsidy Contract signed by the LP with the PO MED Managing Authority: “One year after the signing of the subsidy contract, if the total certified expenditure does not reach at least 10% of the ERDF budget of the project, the MA can consider the possibility to put an end to the Project”. On the other hand, this 10% spending threshold can be surpassed by the partners (it does not indicate a maximum for spending).
What are considered Consumable goods?
The expenditures concerning consumable goods relate to the purchase of any good prone to a duration not exceeding one year.
Can an expenditure belonging to the 1st semester but not included in 1st semester certification be inserted in a subsequent report and certification?
If a partner can not transmit to the Lead Partner its confirmation of the expenditures in due time, it will transmit it within the following progress report. The same, in case an expenditure belonging to the 1st semester is inserted after the 1st semester certification has been issued - this expenditure can be included in the subsequent report and certification.
What does Overheads mean?
The overheads include: o Telephone, fax, internet o Office supplies o Photocopying o Mailing o Office rent o Heating, electricity o Other administrative expenditures absolutely necessary for the implementation of the project. Pursuant to the article 52 of the regulation (EC) 1828/2006, overheads shall be eligible provided that they are based on real costs attributable to the implementation of the project concerned or on the average real costs attributable to operations of the same type. In the case of indirect expenses, they must be affected in proportion with the project according to an equitable and duly justified method. These costs must be directly necessary for the activities and the realization of the project. The overheads duly justified can be refunded until a maximum of 7% of the total eligible budget of the project (provisional budget).
Presage
Is a payment date previous to the invoice date accepted?
The PRESAGE application allows that a payment date can be previous to the invoice date if this is explained by a comment in the PRESAGE online reporting form.
Is it possible to split an invoice into 2 components?
Yes, it is possible to split an invoice into 2 or more components (the sum of the amounts being no greater than the invoice global amount) , explaining the split through comments on the PRESAGE online form. |