This document provides an introduction to administrative, financial management, and reporting for the Baltic SCOPE project. It outlines the key contracts and agreements, including the grant agreement between EASME and the lead partner SWAM, as well as the cooperation agreement between SWAM and other project partners. It describes the roles and responsibilities of the lead partner, project coordinator, project partners, and first level controllers. It also reviews the project budget lines, eligibility criteria, reporting timelines, and public procurement requirements.

1. Baltic SCOPE
An introduction to admin,
finance and reporting
Carsten Beyer
Gothenburg, 19 March 2015

2. Content
1) Contracts
2) Roles & responsibilities
3) Financial Management
4) Reporting
5) Other issues
Baltic SCOPE Introduction to Admin, Finance and Reporting 2

3. Content
1) Contracts
2) Roles & responsibilities
3) Financial Management
4) Reporting
5) Other issues
Baltic SCOPE Introduction to Admin, Finance and Reporting 3

4. Grant Agreement
Baltic SCOPE
• Between EASME and SWAM (Lead Partner Principle): Not
signed, yet, but finalization of contracting phase is due soon
• Start date (to be confirmed): 1 March 2015
• Consists of 2 sections and several annexes:
• Special Conditions (for Baltic Scope)
• General Conditions
 Annex 1: Call for Proposals MARE/2014/22
 Annex 2: Full Baltic Scope Application
 Annex 3: Detailed Budget
 Annex 4: Mandates
• 24 months, total budget approx. €2.63m, 80% co-financing (i.e.
€ 2.11m)
Introduction to Admin, Finance and Reporting 4

5. Cooperation Agreement
Baltic SCOPE
• Between SWAM and all other project partners: Draft
elaborated by SWAM will be circulated very soon
• Consists of main text body and several annexes:
 ANNEX A: Grant Agreement
 ANNEX B: Detailed work plan
 ANNEX C: Detailed Project budget
 ANNEX D: Cost Sharing Agreement
• The Cooperation Agreement incl. Annexes is the main guidance
document for partners on project implementation
Introduction to Admin, Finance and Reporting 5

6. 1) Contracts
2) Roles & responsibilities
3) Financial Management
4) Reporting
5) Other issues
Baltic SCOPE
Questions
please
Content
Introduction to Admin, Finance and Reporting 6

7. Content
1) Contracts
2) Roles & responsibilities
3) Financial Management
4) Reporting
5) Other issues
Baltic SCOPE Introduction to Admin, Finance and Reporting 7

8. Lead Partner
Baltic SCOPE
• Lead Partner Principle: Sole contractual partner of the
Commission, responsible for the overall coordination,
management and implementation of the project; implements
Cost Sharing Sharing Scheme
• Sole Point of Contact for Commission (incl. reporting)
• Receives all payments from the Commission and issues all
payments to the partners
• All LP duties specified in the Cooperation Agreement:
Introduction to Admin, Finance and Reporting 8

9. External PM - EPCO
Baltic SCOPE
• Support to the LP in its LP function
• Technical Reporting (incl. Deliverables) to DG MARE
• Collection of info from PPs (templates)
• Collation and analysis, overall report elaboration
• Financial Management & Reporting
• Partner Meeting
• Support to PPs in their Admin & Finance
• Permanent point of contact
• Pre-checks
Introduction to Admin, Finance and Reporting 9

10. Project Partner
Baltic SCOPE
• All PP (incl. the LP) shall ensure the quantitative and qualitative
delivery of the planned activities, outputs and results of the
project (as per grant agreement / application)
• Ensure information flow to LP and sound financial management
• Obey reporting timeline and content
• All PP duties specified in the Cooperation Agreement:
Introduction to Admin, Finance and Reporting 10

11. First Level Control (FLC)
Baltic SCOPE
• Each PP /LP needs to designate (i.e. nominate) a FLC
• FLC can be
 An independent qualified (i.e. certified) external auditor
 For public bodies: An independent qualified internal auditor
(i.e. an independent financial department)
• No specific designation certificate is needed but proof
that FLC is qualified and independent (see above) should
be available
• FLC of the LP needs to validate overall report (based on
control confirmations from PPs’ FLCs)
Introduction to Admin, Finance and Reporting 11

12. Timeline for FLC
Baltic SCOPE
IntroductiontoAdmin,FinanceandReporting
• No designated FLC
• No submission of interim report
• No reimbursement of cost
Thus you need to find a qualified FLC ASAP but at the latest
before the 1st interim report is due (approx. Sep 2015)
12

13. 1) Contracts
2) Roles & responsibilities
3) Financial Management
4) Reporting
5) Other issues
Baltic SCOPE Introduction to Admin, Finance and Reporting
Questions
please
Content
13

14. 1) Contracts
2) Roles & responsibilities
3) Financial Management
4) Reporting
5) Other issues
Baltic SCOPE Introduction to Admin, Finance and Reporting
Content
14

15. General Eligibility Criteria
Baltic SCOPE
• All costs must be directly linked to Baltic Scope (proposal) and
within the eligibility period
 From the date of signature of the grant agreement for 24 months
 Exception: this kick-off and some project closure costs (related to final
report)
• Reported costs must have actually paid by partner
 In-kind contribution is not eligible (e.g. from other Ministry)
 Voluntary work is not eligible
• VAT is not eligible (unless proof that it is irrecoverable)
• Accounting must allow assignment to project (own record)
• No double funding!
 for direct/indirect costs
 but also between Baltic Scope and other projects
Introduction to Admin, Finance and Reporting 15

16. Budget lines
BL1 – Staff
BL2 – Equipment
BL3 – External Experts
BL4 –Implementation Contracts
BL5 – Other eligible costs
Indirect Costs
10% Budget flexibility
Baltic SCOPE Introduction to Admin, Finance and Reporting 16

17. BL1 – Staff
• Personnel costs of project staff
 Directly employed by project partners listed in the
application form
 Basis: employment/labour contract
 Carrying out project activities
 Gross salary + employer’s obligatory contributions on a
monthly basis!
• NON-ELIGIBLE
 Any voluntary remuneration and employer contribution
 Administration costs
Baltic SCOPE Introduction to Admin, Finance and Reporting 17

18. BL1 – Staff
• Costs for staff employed by public authorities are
only eligible if one of the three conditions is met
– Newly employed and ONLY working for project (it must say
so in the labour contract)
– Overtime remuneration: separate contract for the time
worked in overtime on the project making reference to
Baltic SCOPE
– Secondment: Duly documented decision that the
employee works for Baltic SCOPE in addition to fulfilling
tasks of his / her normal routine
Baltic SCOPE Introduction to Admin, Finance and Reporting 18

19. BL1 – Staff
Time Sheets – Proposal:
• EPCO develops template based on Interreg model of the
BSR programme
 Time sheet for full time employee (only working for Baltic Scope)
 Time sheet for part-time employee (Baltic Scope and other tasks)
• Requirements for Time Sheets
 Separate Time Sheet for each employee (signed)
 Recording of hours on a monthly basis (for part-time employees
also hours worked on other tasks)
 Briefly state the activities performed (remark “Component 1 –
step 2” or “C 2 - Reporting” would be sufficient)
Baltic SCOPE Introduction to Admin, Finance and Reporting 19

20. Budget lines
BL1 – Staff
BL2 – Equipment
BL3 – External Experts
BL4 –Implementation Contracts
BL5 – Other eligible costs
Indirect Costs
10% Budget flexibility
Baltic SCOPE Introduction to Admin, Finance and Reporting 20

21. BL2 – Equipment
Baltic SCOPE Introduction to Admin, Finance and Reporting 21
• ONLY IT equipment such as a computer or a printer
necessary for project coordination as stipulated in the
application (annex 3)
• Exclusively used for Baltic Scope (otherwise only part of
cost eligible)
• Depreciation costs only (national rules)
• Respect PUBLIC PROCUREMENT (national rules)

22. Budget lines
BL1 – Staff
BL2 – Equipment
BL3 – External Experts
BL4 –Implementation Contracts
BL5 – Other eligible costs
Indirect Costs
10% Budget flexibility
Baltic SCOPE Introduction to Admin, Finance and Reporting 22

23. BL3 – External experts
• Distinction between external experts and other
implementation costs:
• External expertise
– Content related expertise that is not provided in-house
– Budget for purposes stated in the application form only!
– Examples: Studies but also travel costs for external experts
• Other implementation contracts
– Non-content related external services
– Examples: FLC, Venue rental, Catering
Baltic SCOPE Introduction to Admin, Finance and Reporting 23

24. BL3 – External experts
• Expenses paid by project partners to external
providers
•  External = not employed by project partner
institutions
• Basis:
– Contracts of work, supply contracts, service contracts
– Invoices/requests for reimbursement
• PUBLIC PROCUREMENT!
• Non-eligible:
– Contracting between project partners
– Recoverable VAT is not eligible
(status was declared in the Application Form)
Baltic SCOPE Introduction to Admin, Finance and Reporting 24

25. Budget lines
BL1 – Staff
BL2 – Equipment
BL3 – External Experts
BL4 –Implementation Contracts
BL5 – Other eligible costs
Indirect Costs
10% Budget flexibility
Baltic SCOPE Introduction to Admin, Finance and Reporting 25

26. BL4 –Implementation Contracts
Baltic SCOPE
• Not eligible (as covered by indirect costs):
• Stationery, Photocopying and Mailing
• Telephone, fax and internet
• Heating, electricity
• Office furniture, maintenance
• Office rent and other administration expenditure
• Publicity rules
• Name and emblem of the EU Commission on all project material, e.g.
publications, posters, lists of participants
• If publicity rules are not abided by, costs may be cut!
• PUBLIC PROCUREMENT!
Introduction to Admin, Finance and Reporting 26

27. Public procurement
Baltic SCOPE Introduction to Admin, Finance and Reporting
• Launch your tenders at an early stage, procurement takes time
• Procurement requirements:
 Transparency, equality, objectivity
 You have to obey your institutional procurement rules (which
acknowledge, regional, national and EU regulations)
• In any case: Always good to collect at least 3 offers
• For any service that is not included already in the list of Annex 3
to the grant agreement an approval from the Commission is
required! (PP via the LP)
27

28. Public procurement
Baltic SCOPE Introduction to Admin, Finance and Reporting
• Procurement is needed for BL2, BL3 and BL4
• PPs are responsible for creating and keeping the full audit
trail (document tender procedure):
• Tender / ToR
• Offers
• Evaluation and award
• Contract
• Deliverables and Invoices
• Only if public procurement procedures are observed
costs for goods, services and works are eligible!
28

29. Budget lines
BL1 – Staff
BL2 – Equipment
BL3 – External Experts
BL4 –Implementation Contracts
BL5 – Other eligible costs
Indirect Costs
10% Budget flexibility
Baltic SCOPE Introduction to Admin, Finance and Reporting 29

30. BL5 – other eligible costs means
Travel and accommodation
• Travel and accommodation + subsistence
allowances
• Essential for project activities
• Most economic way of transport
• Observe national and institutional internal
rules!
• Prior approval of travels outside the
programme area and the EU!
Baltic SCOPE Introduction to Admin, Finance and Reporting 30

31. Budget lines
BL1 – Staff
BL2 – Equipment
BL3 – External Experts
BL4 –Implementation Contracts
BL5 – Other eligible costs
Indirect Costs
10% Budget flexibility
Baltic SCOPE Introduction to Admin, Finance and Reporting 31

32. Indirect Costs
Baltic SCOPE
• All costs belonging to one of the BLs 1-5 are DIRECT COSTS
• When reporting direct costs a flat rate amount of 7% of the
total eligible direct cost can be added as eligible indirect cost
 No separate documentation needed
 No proof of payment needed
• The reporting template will calculate this amount automatically
Introduction to Admin, Finance and Reporting 32

33. Budget lines
BL1 – Staff
BL2 – Equipment
BL3 – External Experts
BL4 –Implementation Contracts
BL5 – Other eligible costs
Indirect Costs
10% Budget flexibility
Baltic SCOPE Introduction to Admin, Finance and Reporting 33

34. Budget flexibility rule
 Possibility to exceed totals by a maximum of 10% without approval from
the Commission
 Also a PP can exceed its partner budget by 10%
 Overspending must go hand in hand with underspending
 PPs always need to inform the LP / EPCO beforehand
NOT POSSIBLE
– Exceeding overall project budget
Baltic SCOPE Introduction to Admin, Finance and Reporting
BL1 BL2 BL3 BL4 BL5 Total
Comp. 1 Flexibility
Comp 2 Flexibility
Comp n Flexibility
Total Flexibility Flexibility Flexibility Flexibility Flexibility Total budget
34

35. Budget Changes
Baltic SCOPE
• LP can ask for a re-allocation of up to 20% but
 Only after prior request and approval from Commission
 Requires written amendment to the grant agreement
• Other external services than specified in the application must
be approved by the Commission
Introduction to Admin, Finance and Reporting 35

36. Pre-Financing
Baltic SCOPE
• 30% of total grant within 30 days after signature of the grant
agreement
• LP forwards shares to PPs upon receipt
• Proposed scheme for recovery of pre-financing with interim
reports:
 1/3 recovery with interim report 1 (amount is deducted by
LP from the respective interim payment amount)
 1/3 recovery with interim report 2
 1/3 recovery with interim report 3
• Grant agreement limits the total amount of interim payments
to 30%
Introduction to Admin, Finance and Reporting 36

37. 1) Contracts
2) Roles & responsibilities
3) Financial Management
4) Reporting
5) Other issues
Baltic SCOPE Introduction to Admin, Finance and Reporting
Questions
please
Content
37

38. Content
1) Contracts
2) Roles & responsibilities
3) Financial Management
4) Reporting
5) Other issues
Baltic SCOPE Introduction to Admin, Finance and Reporting 38

39. Reporting – every 6 months
Baltic SCOPE Introduction to Admin, Finance and Reporting
EASME
Progress
Report
Control on
partner level
6 weeks
Control on
project level
6 weeks
LP
FLC
FLC
PP2
FLC
PP1
FLC
PP3
Validation of
expenditure
39

40. Baltic SCOPE Introduction to Admin, Finance and Reporting
• Based on official starting date 1 march 2015 (tbc):
• Reporting Period 1:
 1 March 2015 – 31 August 2015
 Individual PP Report due: 15 October 2015
 overall Progress Report due: 1 December 2015
• Reporting Period 2:
 1 September 2015 – 29 February 2016
 Individual PP Report due: 15 April 2016
 overall Progress Report due: 1 June 2016
• Reporting Period 3, and 4 accordingly
Reporting timeline
40

41. Baltic SCOPE Introduction to Admin, Finance and Reporting
• EPCO offers pre-check of your cost-itemisation list and financial
report before you submit it to your FLC (ideally 2 weeks after
end of reporting period)
Pre-check
41

42. Baltic SCOPE Introduction to Admin, Finance and Reporting
Costs cannot be reported without:
• Cooperation agreement
• First Level Control designation
• Control confirmation by the First Level Controller
Reporting pre-requisites
42

43. Baltic SCOPE Introduction to Admin, Finance and Reporting
Every Partner needs to submit by 15 October 2015 to
the LP / EPCO the following Docs:
• Cost Itemisation List
• Confirmation of Control
• On the technical reporting we propose to use very,
very brief monthly reports (ticking boxes and 1
sentence on ticked boxes)
• Technical Outputs (obey publicity rules)
Project Partner Report
Reporting – Obligatory documents from
every PP
43

44. 44
Baltic SCOPE Introduction to Admin, Finance and Reporting
By 15 October 2015 to LP the following docs:
• The original signed and stamped Project Partner Report (esp.
the confirmation of control) in hardcopy
Reporting – What do you need to submit to
the LP?
44

45. 45
Baltic SCOPE Introduction to Admin, Finance and Reporting
By 15 October 2015 to EPCO the following docs:
• The full Project Partner Report in electronic version (the final
Excel File and scans of the signed cost itemization list and the
confirmation of control)
• Electronic version of technical outputs
Reporting – What do you need to send to
EPCO?
45

46. 46
Baltic SCOPE Introduction to Admin, Finance and Reporting
All accounting documents. Please do not send supporting
documents such as:
• Time Sheets
• Invoices or documentation of procurement
• Travel expense reports etc.
• They are checked by your FLC and need to be kept by you at
least until the end of 2024 for a audit!
• Please always keep copies of the FLC docs that you have
submitted to the LP
46
Reporting – What do you need to keep?

47. Baltic SCOPE Introduction to Admin, Finance and Reporting
• The template for the Project Partner Report, which comprises
the templates for the Cost Itemisation List, the confirmation of
control and the activity report, will be developed by EPCO
individually for each partner and send to you by August 2015
• Other useful templates:
 Time Sheet Template
 Bid@3 sheet for documenting procurement of external services
 Your normal travel expense reports (according to institutional /
national requirements)
47
Reporting – Templates

48. 1) Contracts
2) Roles & responsibilities
3) Financial Management
4) Reporting
5) Other issues
Baltic SCOPE Introduction to Admin, Finance and Reporting
Questions
please
Content
48

49. Content
1) Contracts
2) Roles & responsibilities
3) Financial Management
4) Reporting
5) Other issues
Baltic SCOPE Introduction to Admin, Finance and Reporting 49

50. Cost sharing
Baltic SCOPE Introduction to Admin, Finance and Reporting
From the cost sharing agreement to the financial note
Extern.
Service
50

51. Cost sharing
Baltic SCOPE Introduction to Admin, Finance and Reporting 51
• By last day of reporting period PP should receive
the financial note from the LP
• PP include their cost share in their financial report
• PP’s FLC confirms control
• Integrated overall report by LP
• EASME checks and pays grant (80%) to LP
• LP deducts cost shares from grant and pays PPs

52. • The Cooperation Agreement
• The call for Proposals MARE/2014/22
• Soon the Baltic Scope website
• Soon EPCO
Baltic SCOPE Introduction to Admin, Finance and Reporting 52
Sources of information / contacts

53. Thank you for your attention!
Carsten Beyer, s.Pro GmbH
cb@sustainable-projects.eu