Finance & PRESAGE Presentation

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  • 1. URBACT II – Training Session Finance & PRESAGE-CTE
  • 2. Introduction  Introduction to the URBACT team  Adele BUCELLA – Finance Manager  Céline ETHUIN – Finance Officer  Sabrina TEMIME – Technical Assistant  Roundtable introductions by person (10 s. per person)  Project  Name Firstname Partner / Finance Officer  Partner institution (city, country)  Structure of the session  Finance & Presage: procedures, main messages  Practical exercises  Wrap-up Thursday 30 January 2014
  • 3. Eligibility of costs  costs are eligible from 1 December 2013 until 31 May 2015  if costs are linked to activities implemented between the project’s start date and end date and  if paid by the Partners/Lead Partner’s institution  2 exceptions: are also eligible until 31 May 2015  costs for personnel and FLC to administratively close the project after project end date  costs linked to final outputs and dissemination after project end date if such activities: - contracted and started before the project end date - finished by 31/05/2015 - costs related to them paid and certified by the end of the 2-months closing period - exceptionally and only after consultation with the URBACT Secretariat Thursday 30 January 2014
  • 4. Eligibility rules Expenditure actually paid out that complies with all of the relevant rules:  EU: (EC) 1080/2006 (EC) 1083/2006 (EC) 1828/2006  National: eligibility rules laid down by MS (national contacts in DMCS)  Programme: Factsheet 6b, Programme Manual Factsheet , Pilot Transfer networks  In case of complicated or unclear eligibility criteria, the Secretariat can answer eligibility question (even via its contact to EC) Thursday 30 January 2014
  • 5. Eligibility of Expenditure  Eligible expenditure is that outlined in the approved budget as presented in the AF  Need to respect the amounts presented per budget category  Can exceed by max. 20% from one budget category to another  Shall remain within the total approved budget Thursday 30 January 2014
  • 6. Eligibility per Budget Category Factsheet 6b of the Programme Manual outlines in detail the types of costs which are considered to be eligible by budget category: 1) Project coordination (incl. Overheads) General costs, administrative costs, legal costs, etc. 2) Personnel Costs for the personnel employed by the partner/lead partner’s institutions officially listed in the AF (time records incl. timesheets) 3) Meeting organisation Costs for the organization of meetings, conferences and seminars (venue, interpretation, catering, etc.) 4) Travel and accommodation Costs for travel and accommodation of personnel and experts involved in project activities 5) Communication and dissemination Costs for newsletter, brochures, other communication and dissemination tools 6) External expertise Costs for external experts (excluding Lead/thematic experts paid by the Program) Thursday 30 January 2014
  • 7. Requirements for record keeping Documents to be archived at the partner’ premises : – – – – – – – contractual documents (incl. audit trail doc.) ; bank account statements ; original invoices ; time records of personnel working for the project (including timesheets) ; copies of all contracts with external experts and/or service providers ; documents relating to public procurement, information and publicity ; proofs for delivery of services and goods (studies, brochures, newsletters, minutes of meetings, participants’ list, travel tickets, etc.) ; – calculation of administrative costs, records of costs included in overheads ; – etc Thursday 30 January 2014
  • 8. Audit Trail requirements Publicity •  Regulation (EC) 1828/2006 Articles 8 and 9 (and its amendments) Audit trail and record keeping • •  and information requirements Keep a record of where all the documents supporting the expenditure are stored at LP and PP level – see Audit Trail doc Retention period : at least until 31 December 2020 Second Level Control and audits • Potential audits in 2015 and in 2016 for expenditure declared to the EC respectively in 2014 and in 2015 Thursday 30 January 2014
  • 9. PRESAGE-CTE Thursday 30 January 2014
  • 10. Presage-CTE: Financial management and monitoring system › On line monitoring tool https://urbact.presage-cte.org › The system is secure and access is restricted by personal log-in and password (user types: LP, PPs, FLCs) › Each project must undertake an official reporting using Presage–CTE :  Accounting and validation of expenditure  Certification of expenditure and FLC certificates  Production of a payment claim  Submission of a progress report › Monitoring project expenditure and ERDF payments Thursday 30 January 2014
  • 11. Accounting and Validation of Expenditure Thursday 30 January 2014
  • 12. Accounting of Expenditure  Decentralized financial management system  Each LP/PP is responsible for  Spending and accounting its own costs (liability for its own activities) – through Presage-cte Both LP and PP enter expenditure so need to ‘train’ the PP in doing this  Provide them with the guide developed by URBACT  Foresee this shortly after the kick-off meeting  Thursday 30 January 2014
  • 13. Accounting and Validation of Expenditure (cont.) › Guidelines prepared by the Secretariat – available on website Programme/Technical documents/ › Demonstration on how to enter expenditure › Use the dot (.) for registering decimals Thursday 30 January 2014
  • 14. Logging into PRESAGE-CTE Link: https://urbact.presage-cte.org You can reach it from the URBACT website Access codes as LP/PP: Nom d'utilisateur: indicate your login Mot de passe: indicate your password Project for exercise: Your Project Acronym Thursday 30 January 2014
  • 15. Mains sections in PRESAGE-CTE 3 main chapters:  Access application form data  Access expenditure data  Financial monitoring Thursday 30 January 2014
  • 16. Practical exercise in PRESAGE-CTE Practical exercise to enter expenditure Thursday 30 January 2014
  • 17. Common Problems in Accounting Expenditure  Dates and eligibility period – attention that payment date is within eligible period (from start date to the end of each reporting period)  Double recording – attention to save data only once  Miscalculations – attention when accounting costs: develop a calculation method (esp. for project coordination or personnel costs) and put explanation in the comment box +attention when saving amounts Thursday 30 January 2014
  • 18. Common Problems in Accounting Expenditure (cont.)  Date when the expenditure has actually been paid out – when the amount is debited from the PP/LP’s institution bank account  EC monthly exchange rate (automatic calculation) – attention should be paid to the month during which the cost has been debited from the LP/PP institution’s bank account  Invoice original amount vs. Expenditure amount – the global amount of the original invoice can be either equal or higher than the expenditure amount (e.g. if in local currency other than €) Thursday 30 January 2014
  • 19. Common Problems in Accounting Expenditure (cont.)  Work plan – WP – attention to account the expenditure on the correct Work Package of the project Work Plan  Budget category and/or line – attention to account the expenditure on the correct budget line  Invoice document type invoice / certificate – in most cases ‘invoice”, for staff costs “certificate”  Expenditure type in cash / in kind – staff costs are considered as a cash contribution (and not in-kind contribution) as they are actually paid by the partner institution Thursday 30 January 2014
  • 20. Validation of Expenditure  LP must validate the expenditure of PPs attention that they are not: › making a mistake with budget line + WP › exceeding the budget allocation (total + per budget category)  Allows for LP to manage budget and control what is being claimed  Only expenditure that has been validated by the LP can be certified by the FLC of each PP in PRESAGE-CTE Thursday 30 January 2014
  • 21. Practical exercise in PRESAGE-CTE Practical exercise for LPs to validate expenditure entered by PPs Thursday 30 January 2014
  • 22. Accounting and Validation of Expenditure Hints and tips › Possibility to monitor the project in Presage-CTE › Guidelines prepared by the Secretariat – available › Demonstration where to find the link in Presage-CTE for:  : Financial monitoring allows LP to have an overview on the declared and certified expenditure against the amounts forecasted in the budget of the project  : Exporting expenditure allows LP/PP to have detailed information usable in Excel tables about all expenditure entered in the Presage-CTE system by each project partner Thursday 30 January 2014
  • 23. Any Questions? Thursday 30 January 2014
  • 24. Certification of Expenditure and FLC certificates Thursday 30 January 2014
  • 25. First Level Controller: What is FLC? The implementation of first level control is outlined in Article 16 of Regulation (EC) No 1080/2006 In order to validate the expenditure, each Member State shall set up a control system making it possible to verify: • the delivery of the products and services co-financed ; • the soundness of the expenditure declared for operations or parts of operations implemented on its territory ; • the compliance of such expenditure and of related operations, or parts of those operations, with Community rules and its national rules. For this purpose each Member State shall designate the controllers responsible for verifying the legality and regularity of the expenditure declared by each beneficiary participating in an operation. Thursday 30 January 2014
  • 26. First Level Controller : Who can do it? 2 different control systems have been proposed by Member States (see Member States and Partner States' control system descriptions): › centralised control at MS level :  controllers already designated by the Member State  no need to be proposed by the project partner › decentralised control through  internal or external controllers proposed by the project partner  need to be approved at national level as long as (s)he is qualified and from a unit independent of operation’s activities and finances  costs can be included in your budget – eligible cost for ERDF Thursday 30 January 2014
  • 27. Member States and Partner States' first level control systems CENTRALISED DECENTRALISED BELGIUM –WALLOON REGION AUSTRIA BULGARIA BELGIUM –BRUSSELS CAPITAL REGION CZECH REPUBLIC BELGIUM –FLANDERS REGION ESTONIA CYPRUS GREECE DENMARK HUNGARY FINLAND IRELAND FRANCE LATVIA GERMANY LUXEMBOURG ITALY POLAND LITHUANIA ROMANIA MALTA SLOVAKIA NETHERLANDS SLOVENIA NORWAY SWEDEN PORTUGAL SWITZERLAND SPAIN UNITED KINGDOM Thursday 30 January 2014
  • 28. First Level Controller: Validation In a decentralised control system, each first level controller has to be approved at national level: 1) The PP/LP fills in a checklist concerning the proposed controller with specific selection criteria related to independence and competence and sends it duly signed to its national contact (see Member States and Partner States' control system descriptions) 2) The national contact confirms the proposal by sending a letter to the URBACT Secretariat and to the concerned Project Partner with the filled in and signed « checklist for approbation of first level controller » in annex 3) Only after the choice of the controller is confirmed by the MS central approbation body, the controller can assume the role of independent project controller and can have access to PRESAGE-CTE 4) Deadline to submit the approbation letters to the Secretariat: 28th February 2014 at latest Thursday 30 January 2014
  • 29. Certification of Expenditure by FLC (1) The main aim of the certification is to provide a guarantee that projects costs are accounted for and claimed in accordance with the legal and financial provisions of :  the EC Regulations;  the URBACT II rules (Programme Manual);  the Subsidy Contract;  the Joint Convention (optional);  the applicable national legislation in the fields of public procurement, state aids, equal opportunities, the environment, etc.;  the approved application form (incl. breakdown of expenditure per main budget category and per WP) Thursday 30 January 2014
  • 30. Certification of Expenditure by FLC (cont.) › Once validated, it is the role of First Level Controller to check and, if eligible, certify the expenditure incurred by the controlled project partner › The controller has to check 100% of expenditure based on all documentary evidence (pay slips, invoices, proof of payment, etc.)  clearly identify in PRESAGE-CTE the amounts of non-eligible expenditure deducted from the partner’s claim explaining the reason of non-eligibility (using the dedicated “comments” section for each item of expenditure)  clearly note in PRESAGE-CTE any additional comment and information which might be considered relevant in the framework of the first level control › On-the-spot checks (vs. desk base) can be carried out if necessary › The controller has to produce an “interim” or “final” certificate › All of this is carried out in Presage CTE – special profile for controllers Thursday 30 January 2014
  • 31. Certificate of Expenditure › It is signed by the first level controller of PP/LP › It certifies the eligibility of the declared expenditure › It is produced in Presage CTE by the first level controller (with a checklist filled in by the controller in annex) Thursday 30 January 2014
  • 32. Certificate of Expenditure (cont.) ATTENTION: › LP responsible for checking FLC certificates: - correctness (“interim/final” status, FLC answers to certificate control checklist, etc.) - completeness (signature by the approved controller of the LP/Partners certificates) Thursday 30 January 2014
  • 33. Certificate of Expenditure (cont.) › Certificate control checklist (annex 3) - use guidelines provided by the Secretariat Thursday 30 January 2014
  • 34. Certificate of Expenditure (cont.) ATTENTION: › Certificate of expenditure: common errors in the control checklist completed by the FLC: › VAT eligibility: answer yes or no to section 7.3 Q3 and add a comment which states very clearly VAT status in the current reporting › Annex 1: take note of the amount rejected – if costs are rejected should be reported in the checklist section 7.3 Q11 › Annex 2: check certificate expenditure breakdown per category to complete control checklist › When a section is not applicable or there are no costs in the period then the answer should be ‘no’ with comment saying n/a Thursday 30 January 2014
  • 35. Certificate of Expenditure (cont.) › Demonstration in Presage CTE Thursday 30 January 2014
  • 36. Any Questions? Thursday 30 January 2014
  • 37. Payment claim by LP Thursday 30 January 2014
  • 38. Payment Claim by LP › What is a payment claim?  Request for refund : it claims globally the expenditure incurred by the project at the end of the reporting period  It regroups the certificates produced by several partners to make a cumulative claim for ERDF  It is produced in PRESAGE-CTE and signed by the LP ATTENTION: - LP responsible for checking FLC certificates WE CANNOT PAY ERDF WITHOUT IT ! > Demonstration in PRESAGE-CTE Thursday 30 January 2014
  • 39. Payment Claim by LP (cont.) Thursday 30 January 2014
  • 40. Payment Claim by LP (cont.) Thursday 30 January 2014
  • 41. Payment Claim by LP (cont.) WHY IS IT IMPORTANT TO MAKE PAYMENT CLAIMS? • Obligation to follow the financial plan outlined and approved within the Final Application • Risk of decommitment – N+3 – all projects have a role to play in avoiding any decommitment • At a local level need for expenditure to be refunded due to cashflow problems – crisis making this situation worse Thursday 30 January 2014
  • 42. Any Questions? Thursday 30 January 2014
  • 43. Progress Report by LP Thursday 30 January 2014
  • 44. Progress Report by LP › To ensure that the project’s activities are progressing in accordance with the work plan and the budget approved by the Monitoring Committee › The Progress Report shall be produced and submitted through PRESAGE CTE – to be signed by LP and LP FLC › Structure of the Progress Report shaped on the work plan included in the Application Form › Demonstration in Presage-CTE Thursday 30 January 2014
  • 45. Progress Report by LP (cont.) Thursday 30 January 2014
  • 46. Any Questions? Thursday 30 January 2014
  • 47. ERDF refunding Thursday 30 January 2014
  • 48. ERDF refunding • Claim, certificates and PR are reviewed by the Secretariat • Once all is clarified, payment request transferred to the CA – via MA certificate (in PRESAGE-CTE) • THE LP AND PP TO DO – the LP to transfer the ERDF to PPs – the LP to complete Presage-CTE with date of receipt + amount and dates of ERDF transferred to PPs – the PPs to complete with date of receipt on bank account › Demonstration where to find the link in Presage-CTE for ERDF payments Thursday 30 January 2014
  • 49. Actions required from the LP  Transfer to PPs – Once ERDF received, the LP is responsible for transferring the correct amount of ERDF due to the PPs  Actions required in Presage CTE – the LP needs to report the amounts redistributed to each PP in Presage-CTE in section « Show received payments » (see guide developed by the Secretariat) Click here to add a transfer to a PP Thursday 30 January 2014
  • 50. Actions required from the LP (cont.) Choose the PP in the list of your partnership Add payment references and explanation about calculation of the amount transferred Indicate the amount transferred using the dot (.) for decimals IMPORTANT! Do not forget to save Thursday 30 January 2014
  • 51. Actions required from the PP  Actions required in Presage CTE – Once received, each PP needs to report the dates when the amounts been received on bank account in section « Show received payments » (see guide developed by the Secretariat) Click here to add date of receipt Thursday 30 January 2014
  • 52. Any Questions? Thursday 30 January 2014
  • 53. Getting the best from Presage CTE Thursday 30 January 2014
  • 54. PRESAGE CTE additional functions   Monitoring project and partner activity - the chapter “Financial monitoring” will allow you to have an overview on the declared and certified expenditure against the amounts forecasted in the budget of the project. Practical exercise Thursday 30 January 2014
  • 55. PRESAGE CTE additional functions   Exporting data - By going to chapter “Show expenditure list”, you have to go at the bottom of the screen. You will find the button “export expenditure”. Practical exercise Thursday 30 January 2014
  • 56. Wrap-Up Thursday 30 January 2014
  • 57. Flow of documents Thursday 30 January 2014
  • 58. Common problems • Claiming ineligible Value Added Tax (VAT) • Not respecting the appropriate Public Procurement Rules • Lack of awareness of Programme and national eligibility rules if stricter (e.g. alcohol, taxi, etc.) • Revenue generated by projects • Internal recharge costs Thursday 30 January 2014
  • 59. Common problems points in the project payment cycle Thursday 30 January 2014
  • 60. Hints and tips • Keep a table to monitor costs claimed per PP (action / budget category) • Reporting of costs not in euros – ensure there are comments outlining the details • Fix earlier internal deadline for partner to ensure Programme deadline is respected • Notify and report ERDF refunds to PPs – see guide to Presage Thursday 30 January 2014
  • 61. Certificates of expenditure  Allow time for certification   internal project deadline local deadline (FLC PP) incl. additional requests  The FLC to submit in Presage with INTERIM / FINAL status  print PDF – NEW! wait in a queue sign  keep an original and send to PP/to LP   Check by LP    INTERIM / FINAL version control checklist – use guidelines on how to be completed ask a scan to gain some time Thursday 30 January 2014
  • 62. Payment claim  The LP to submit in Presage with INTERIM / FINAL status     print PDF – NEW! wait in a queue sign keep an original TIP  submit before Progress Report then the figures in the PR should update automatically Thursday 30 January 2014
  • 63. Transfers of ERDF  Ensure that the ERDF received by the Lead Partner for the project is redistributed to partners  The LP to complete the information in Presage-CTE  The PPs to indicate the date of receipt in Presage-CTE Thursday 30 January 2014
  • 64. Audit Trail requirements Publicity •  Regulation (EC) 1828/2006 Articles 8 and 9 (and its amendments) Audit trail and record keeping • •  and information requirements Keep a record of where all the documents supporting the expenditure are stored at LP and PP level – see Audit Trail doc Retention period : at least until 31 December 2020 Second Level Control and audits • Potential audits in 2015 for expenditure declared to the EC respectively in 2014 Thursday 30 January 2014
  • 65. Requirements for record keeping Documents to be archived at the partner’ premises : – – – – – – – contractual documents (incl. audit trail doc.) ; bank account statements ; original invoices ; time records of personnel working for the project (including timesheets) ; copies of all contracts with external experts and/or service providers ; documents relating to public procurement, information and publicity ; proofs for delivery of services and goods (studies, brochures, newsletters, minutes of meetings, participants’ list, travel tickets, etc.) ; – calculation of administrative costs, records of costs included in overheads ; – etc Thursday 30 January 2014
  • 66. Project financial management resources Templates & Guidelines provided by the Secretariat  Key project management documents • • • • • URBACT II Programme Manual, Factsheet 6b Factsheet Pilot Transfer Networks Template Subsidy Contract Template Joint Convention Template Audit Trail  Accounting and Claiming of Expenditure • • • • Guide for Accounting Expenditure – in Presage-CTE Guide for Financial Monitoring – in Presage-CTE Guide for production of Payment Claim – in Presage-CTE Guide Transfer ERDF Refunds to PPs – in Presage-CTE Thursday 30 January 2014
  • 67. Project financial management resources (cont.) Templates & Guidelines provided by the Secretariat  First Level Control • • • • • Member and Partner States’ Control System Description Template Checklist Approbation FLC Template Letter Approbation FLC Guide for Certifying Expenditure – in Presage-CTE Guidelines Control Checklist (Annex 3 to the Certificate) Thursday 30 January 2014
  • 68. Contact Details Adele BUCELLA – Finance Manager a.bucella@urbact.eu Tel – 01.49.17.47.36 Céline ETHUIN – Finance Officer c.ethuin@urbact.eu Tel – 01.49.17.47.08 Thursday 30 January 2014
  • 69. contact@urbact.eu www.urbact.eu