Tempus Project Representatives Meeting 15 and 16 March 2010 1 Tempus IV Second Call Tempus IV EAC-01-2009 Financial Rules http://eacea.ec.europa.eu/tempus/index_en.php Outline • • • • • • • • Budget headings & ceilings Tendering procedures Exchange rates Financial Report & supporting documents Modifications to the budget Co-financing concept Determination of the final grant Payment cycle http://eacea.ec.europa.eu/tempus/index_en.php ANNEX II of the Grant Agreement Estimated budget of the action € PROJECT COSTS I Staff costs (max 40% of total eligible direct costs) 400.000,00 II Travel costs, costs of stay 300.000,00 III Equipment (max 30% of total eligible direct costs) 200.000,00 IV Printing and publishing 80.000,00 V 20.000,00 Other costs Eligible direct costs (total I - V) VI Indirect costs (max 7% of total eligible direct costs) Total eligible costs (total I - VI) 1.000.000,00 60.000,00 1.060.000,00 € PROJECT FINANCE Co-financing of at least 10% of the total eligible direct costs 150.000,00 Tempus grant: includes financing to a maximum of 90% of the total eligible direct costs (from the EU) and indirect costs 910.000,00 TOTAL PROJECT FINANCE 1.060.000,00 http://eacea.ec.europa.eu/tempus/index_en.php Budget headings & contractual ceilings Max 40% of the total eligible direct costs I. Staff costs (incl. replacement costs) II. Travel costs and Costs of stay III. Equipment Co-financing is subject to the 40% limit Up to 10% flexibility without authorisation Local salary rates to be applied Up to 10% flexibility without authorisation Travel costs: Actual costs per person Costs of stay: daily allowances Max. 30% of the total eligible direct costs Co-financing is subject to the 30% limit Up to 10% flexibility without authorisation IV. Printing & Publishing Up to 10% flexibility without authorisation V. Other costs Max. 7% of the total eligible direct costs VI. Indirect costs Recalculated at the end of the project based on the actual eligible costs. Co-financing not permitted http://eacea.ec.europa.eu/tempus/index_en.php I. Staff costs (incl. replacement costs) purpose contractual rules supporting documents To cover the costs of staff directly necessary for the achievement of the results and not covered by other sources: - Administrative or academic tasks (3.1 Guidelines): course development, maintenance of online courses/website, etc. Language / IT courses, translation services, evaluation activities when performed by internal staff (if sub-contracted Other costs) - Replacement costs for EU staff (3.2 of Guidelines) Staff costs should respect local salary rates and reflect the employing institution's usual policy on remuneration. Reference daily rates: Guidelines/Annex 3. Total expenditures for Staff Costs cannot exceed the 40% ceiling (with 10% flexibility). Co-financing is also subject to the 40% ceiling. The beneficiary shall retain: - For staff members: Staff Convention (Guidelines/Annex1) - For external staff: Subcontract or Staff Convention and invoice (plus 3 offers if the contract is > EUR 25,000) - For replacement of EU teaching staff: confirmation of engagement from EU institution and Staff Convention Formal justification needs to be retained if the applied salary rates exceed the reference rates of Guidelines/Annex 3 * The beneficiary shall provide: - Copies of subcontracts and invoices if the contract or remuneration is bigger than EUR 25,000 * Explanation to be given in the financial statement (final report) if higher salary rates are applied http://eacea.ec.europa.eu/tempus/index_en.php Example: Staff Costs - Reference daily rates for EU staff (in €) (gross rates) Guidelines for the use of the Grant (Annex 3) Country Teacher Technical Administrative 297 254 205 160 62 56 43 29 Ceska Republika - CZ 114 114 82 59 Danmark - DK 386 331 269 211 Deutschland - DE 286 248 200 154 Eesti - EE 93 84 59 42 Ellas - EL 211 180 147 115 Espana -ES 233 209 161 113 France - FR 335 283 185 141 Ireland - IE 378 329 275 201 Italia - IT 448 262 178 147 Kypros - CY 240 211 131 89 Belgique/Belgie - BE Bulgaria- BG Manager http://eacea.ec.europa.eu/tempus/index_en.php II. Travel costs and costs of stay- Staff purpose contractual rules To cover the costs of travel and subsistence allowances of staff, experts included in the partnership, subcontractors and Associate Partners for mobilities linked to: teaching/training assignments, retraining, update of courses, practical placements, short visits for coordination and planning, short intensive courses, dissemination visits. The budget for Travel Costs and Costs of Stay should: cover only actual travel costs (including visa fee and related obligatory insurances, travel insurance and cancellation costs if justified) cover the daily allowance: the ceilings per person indicated at point 4.4.3 of the Guidelines must be respected Travel for research activities is not allowed supporting documents The beneficiary shall retain with the project accounts: - a filled-in Individual Mobility Report for each mobility using the standard form (Guidelines, Annex 2) - readable copies of travel tickets, invoices, boarding passes, receipts. The beneficiary is not requested to send any supporting document with the Final report http://eacea.ec.europa.eu/tempus/index_en.php II. Staff – activities and mobility directions Point 4.4.1 Guidelines General principle: mobilities within the countries participating in the project Activity Assignments for teachers/trainers Direction PC EU / EU PC Re-training and up-dating courses PC EU / PC Practical placements PC EU / PC Short visits for coordination and management meetings Short intensive courses in specific subject area (including language) Visit for dissemination purposes ALL Within the PC or combined with another PC EU mobility Mobility is allowed to other institutions in the Partner Countries Specific authorisation is requested for any destination/ duration different from the above ones http://eacea.ec.europa.eu/tempus/index_en.php II. Travel costs and costs of stay- Students purpose contractual rules To cover the costs of travel and subsistence allowances of students for mobilities linked to: study periods abroad, practical placements in an enterprise, intensive courses for Partner Country students in EU, participation of student representatives in targeted mobilities The budget for Travel Costs and Costs of Stay should : cover only actual travel costs (including visa fee and related obligatory insurances, travel insurance and cancellation costs if justified) cover a monthly allowance for subsistance /accommodation /local transport and personal insurance: the ceiling per month and per person indicated at point 4.5.3 of the Guidelines must be respected Host universities can claim institutional costs for receiving students for study period from abroad (point 4.5.4 of Guidelines) The duration of student mobilities should be minimum 2 weeks and maximum 3 months supporting documents The beneficiary shall retain: - a filled-in Individual Mobility Report for each mobility using the standard form (Guidelines/Annex 2) - readable copies of travel tickets, invoices, boarding passes, receipts The beneficiary is not requested to send any supporting document with the Final report http://eacea.ec.europa.eu/tempus/index_en.php II. Students - activities / mobility directions Point 4.5.1 Guidelines General principle: mobilities within the consortium members Activity Direction Duration Study period EU EU NO! Min 2 weeks Max 3 months Practical placement EU PC PC EU Within PC Min 1 month Max 3 months Intensive course Student representatives from PC and EU in targeted mobilities PC EU ONLY! All Min 2 weeks Max 3 months Min 2 weeks Max 3 months Specific authorisation is requested for any destination/ duration different from the above ones. http://eacea.ec.europa.eu/tempus/index_en.php III. Equipment purpose contractual rules supporting documents To cover the costs of equipment directly relevant to the project’s Objectives (hardware an software), the costs for installing internet connection, for access to databases, for equipment insurance/transport/ installation, for maintenance of equipment. Prior authorisation required for hire of equipment The equipment must: - be exclusively for PC universities included in the partnership (JP) - be exclusively for PC universities/institutions/organisations included in the partnership but not for Associated Partners (SM) - be exempt from VAT and custom duties (they are not eligible) - Depreciation does not applied: the overall cost of equipment is covered Total expenses for equipment cannot exceed the 30% ceiling (plus 10% flexibility). Co-financing is aslo subject to the 30% ceiling. The beneficiary shall retain readable copies of: - all invoices for all equipment declared costs - proofs of tendering procedure (min. 3 offers) for purchases above EUR 25,000 The Beneficiary shall provide: Readable copies of invoices if the purchase is above EUR 25,000 The names of the firms consulted (min. 3) has to be indicated in the Financial statement (Final report) http://eacea.ec.europa.eu/tempus/index_en.php IV. Printing & Publishing Printing & Publishing budget heading can cover: purpose - paper and electronic productions (electronic form) - design, development and establishment of website - photocopying of teaching materials/documentation (general photocopying Indirect Costs) contractual rules supporting documents Internal staff costs may not be covered by this budget heading (i.e. web updating and web maintenance) The beneficiary shall retain with the project accounts readable copies of all invoices (internal invoices to be issued for in-house printing and publishing). The beneficiary is not requested to send any supporting document with the Final report http://eacea.ec.europa.eu/tempus/index_en.php V. Other costs purpose contractual rules supporting documents Other costs budget heading can cover other costs not included under other categories: - Costs related to dissemination of information (advertising in media, promotional materials such as pen, bags, posters, etc.) - inter-project coaching (maximum of EUR 2,500) - bank charges (including bank guarantee charges where requested) - external audit fees (where requested) - Language / IT courses, translation services, evaluation activities if subcontracted to external service providers (when performed by internal staff Staff Costs) - hire of premises for dissemination events (prior authorisation required). Ineligible costs: hospitality costs, costs related to the use of materials incurred by institutions when hosting students/ staff, registration fees for courses/conferences, exchange losses, etc. The beneficiary shall retain with the project’s accounts readable copies of all invoices and bank statements. The beneficiary is not requested to send any supporting document with the Final report http://eacea.ec.europa.eu/tempus/index_en.php VI. Indirect Costs purpose Indirect Costs can cover: - stationary, office supplies, general photocopying - postage and telecommunication costs attributable to the project - Use of internet/communication software (e.g. Skype) Eligible for flat-rate funding of up to 7% of the total direct eligible costs (Art. I.4.2) contractual rules supporting documents At the end of the project, the Indirect Costs incurred and declared will be considered eligible so long as they: do not exceed the absolut amount shown for Indirect Costs in Annex II of the Grant Agreement (approved budget) do not represent more than 7% of the total actual eligible direct costs following the financial assessment NO supporting document is required The indirect costs incurred in carrying out the project have to be declared in the Financial Statement of Final Report NO co-financing is permitted under this budget heading http://eacea.ec.europa.eu/tempus/index_en.php Tendering Procedure The beneficiary shall apply the award of contract procedure (Art. II.9) when: A. purchasing any kind of goods or services in the framework of the Tempus project B. in case of sub-contract with individual expert/industry/enterprise/ institutions for academic or administrative tasks BUT ONLY IF the amount of the purchase/sub-contract exceeds the threshold of EUR 25,000 Proofs of awarding procedure (at least 3 offers) should be retained with the project’s accounts The names of the providers consulted (min. 3) shall be indicated in the final financial statement of the Final Report. N.B. The purchase cannot be split into smaller contracts with individual amounts lower than the threshold http://eacea.ec.europa.eu/tempus/index_en.php Exchange rates All transactions ≠ EUR must be converted and reported in EUR in the Financial Statement of the Final Report: Which exchange rate? 1. from the start of the eligibility period until the second pre-financing: the monthly accounting rate applicable on the month in which you received the first pre-financing should be applied 2. from the second pre-financing until the end of the eligibility period: the rate of the month in which you received the second pre-financing should be applied The rate to be applied is the monthly accounting rate established by the Commission and published on its website: http://ec.europa.eu/budget/inforeuro N.B. Exchange losses are not eligible http://eacea.ec.europa.eu/tempus/index_en.php Summary table: supporting documents Budget heading Supporting documents To be submitted To be kept with project accounts I. Staff Costs Copy of the subcontract and invoice when a sub-contract is above € 25,000 * Staff Conventions for staff members Sub-contracts and invoices for external staff For a sub-contract above € 25 000, docs on the tendering procedure (min 3 offers). Formal justification for higher salary rates For replacement costs, confirmation from the EU institution that the vacated role was filled for the period in question + Convention for each staff member filling the vacated role. II. Travel Costs & Costs of Stay None III. Equipment Copy of invoices for equipment with a total value above € 25 000* Individual mobility reports and all copies of travel tickets, boarding passes, invoices, receipts. All invoices for all equipment purchased Three estimates /offers for equipment purchases above € 25 000. * (The names of the companies contacted have to be indicated in the Final Report) http://eacea.ec.europa.eu/tempus/index_en.php Summary table: supporting documents Budget heading Supporting documents To be submitted To be kept with project accounts IV. Pringting & Publishing None All invoices V. Other Costs None All invoices, bank statements VI. Indirect Costs None None An Audit Report on the action's financial statements and underlying accounts must be submitted for grants above EUR 750.000 The rules on supporting documents apply for both expenditure paid by Tempus and co-financed General advice: justification/explanation in the financial statement in case of doubts Supporting documents should be collected as soon as the expenditure is incurred http://eacea.ec.europa.eu/tempus/index_en.php Financial report and supporting documents A copy of some supporting documents only is to be transmitted with the Final report and Request of payment of the balance (ref. Guidelines for the use of the grant). The beneficiaries are requested to keep with the project accounts all the supporting documents. If the Executive Agency deems it necessary, copies of invoices and other supporting documents not required with the Final report can be requested and examined in detail after the submission of the Report. These proposed simplifications will be accompanied by a rigorous audit policy carried out on behalf of the Executive Agency, mainly by increasing the number of ex-post audit missions and of monitoring missions which will also focus on the evaluation of financial aspects. http://eacea.ec.europa.eu/tempus/index_en.php Modifications to the Budget PRIOR written authorisation by EACEA is needed for any increase of the approved amount allocated under each budget heading of direct costs of more than 10% Requests must indicate the reason and the impact of such budget modifications on the activities and the expected outcomes of the modification. It must be submitted one month before the end of the eligibility period at the latest. The ceiling for equipment and staff costs (30% and 40% of the total eligible direct costs shown in Annex II) is not subject to negociation. The flexibility of 10% applies also to the ceilings. Indirect Costs are not subject to budget modification and the 10% flexibility do not apply to Indirect Costs. http://eacea.ec.europa.eu/tempus/index_en.php Co-financing concept The Tempus grant contribution may not exceed 90% of the total eligible direct costs (Tempus + co-financing) at the end of the project + up to 7% of the total eligible direct costs (to cover “indirect costs”) Actual Co-financing (minimum 10%) should be declared and justified in the Final Report and will be considered and assessed for the calculation of the total eligible costs at the end of the project must satisfy the same rules as Tempus grant including the contractual ceilings of 30% (Equipment), 40% (Staff Costs) and the 10% flexibility on transfers between budget headings can not cover costs which are not eligible for Tempus funding can be declared under any budget heading except “Indirect Costs” has to respect the same rules on supporting documents which apply for the expenditure paid by Tempus http://eacea.ec.europa.eu/tempus/index_en.php Determination of the final grant Art. II.17 Grant Agreement The final grant will correspond to the lowest amount among the following ceilings calculated at the end of the project: Ceiling A: % of the total eligible direct costs at the end of the project as indicated in art. I.4.3 Ceiling B: Total declared expenditure minus declared co-financing amount Ceiling C: Maximum Tempus Grant amount = amount indicated in art. I.4.3 http://eacea.ec.europa.eu/tempus/index_en.php Determination of the final grant Assumption: all declared expenditures are eligible including indirect costs Art. I.4.2 The total budget (incl. co-financing): ex. € 1.060.000 Art. I.4.3 Maximum EU grant in amount: ex. EUR 910.000 = 85% of total eligible direct costs + indirect costs PROJECT COSTS Approved budget € DECLARED PAID BY TEMPUS DECLARED CO-FINANCED TOTAL DECLARED EXPENDITURE € I Staff costs 400.000,00 290.000,00 10.000,00 300.000,00 II Travel costs, costs of stay 300.000,00 150.000,00 50.000,00 200.000,00 200.000,00 95.000,00 5.000,00 100.000,00 III Equipment IV Printing and publishing 80.000,00 35.000,00 5.000,00 40.000,00 V Other costs 20.000,00 20.000,00 0 20.000,00 1.000.000,00 590.000,00 70.000,00 660.000,00 60.000,00 46.200,00 1.060.000,00 636.200,00 Eligible direct costs (total I - V) VI Indirect costs (up to 7% of total eligible direct osts) Total eligible costs (total I - VI) PROJECT FINANCE Co-financing of at least 10% of the total eligible direct costs (ex.15%) Tempus grant: includes financing to a maximum of 90% of the total eligible direct costs (from the EU) and indirect costs TOTAL PROJECT FINANCE € 150.000,00 910.000,00 1.060.000,00 46.200,00 70.000,00 706.200,00 Ceiling A: (85% of 660.000 + indirect costs) 561.000 + 46.200 = EUR 607.200 706.200 - 70.000= EUR 636.200 Ceiling B: Ceiling C: EUR 910.000 Final decision on payment: CEILING A EUR 607.200 http://eacea.ec.europa.eu/tempus/index_en.php Determination of the final grant Assumption: all declared expenditures are eligible including indirect costs Art. I.4.2 The total budget (incl. co-financing): ex. € 1.060.000 Art. I.4.3 Maximum EU grant in amount: ex. EUR 910.000 = 85% of total eligible direct costs + indirect costs Approved budget € PROJECT COSTS DECLARED PAID BY TEMPUS DECLARED CO-FINANCED TOTAL DECLARED EXPENDITURE € I Staff costs 400.000,00 320.000,00 80.000,00 400.000,00 II Travel costs, costs of stay 300.000,00 230.000,00 20.000,00 250.000,00 200.000,00 80.000,00 20.000,00 100.000,00 III Equipment IV Printing and publishing 80.000,00 30.000,00 10.000,00 40.000,00 V Other costs 20.000,00 10.000,00 0 10.000,00 1.000.000,00 670.000,00 130.000,00 800.000,00 60.000,00 56.000,00 1.060.000,00 726.000,00 Eligible direct costs (total I - V) VI Indirect costs (up to 7% of total eligible direct costs) Total eligible costs (total I - VI) PROJECT FINANCE Co-financing of at least 10% of the total eligible direct costs (ex.15%) Tempus grant: includes financing to a maximum of 90% of the total eligible direct costs (from the EU) and indirect costs TOTAL PROJECT FINANCE € 150.000,00 910.000,00 1.060.000,00 56.000,00 130.000,00 856.000,00 Ceiling A: (85% of 800.000 + indirect costs) 680.000 + 56.000 = EUR 736.000 Ceiling B: 856.000-130.000= EUR 726.000 Ceiling C: EUR 910.000 Final decision on payment: CEILING B EUR 726.000 http://eacea.ec.europa.eu/tempus/index_en.php Determination of the final grant Art. I.4.2 The total budget (incl. co-financing): ex. € 1.060.000 Art. I.4.3 Maximum EU grant in amount: ex. EUR 910.000 = 85% of total eligible direct costs + indirect costs Approved budget € PROJECT COSTS DECLARED PAID BY TEMPUS Assumption: all declared expenditures are eligible including indirect costs DECLARED CO-FINANCED TOTAL DECLARED EXPENDITURE € I Staff costs 400.000,00 340.000,00 100.000 440.000,00 II Travel costs, costs of stay 300.000,00 330.000,00 70.000 400.000,00 200.000,00 210.000,00 10.000 220.000,00 III Equipment IV Printing and publishing 80.000,00 75.000,00 5.000 80.000,00 V Other costs 20.000,00 15.000,00 5.000 20.000,00 1.000.000,00 970.000,00 190.000,00 1.160.000,00 60.000,00 60.000,00 1.060.000,00 1.030.000,00 Eligible direct costs (total I - V) VI Indirect costs (up to 7% of total eligible direct costs) Total eligible costs (total I - VI) PROJECT FINANCE Co-financing of at least 10% of the total eligible direct costs (ex.15%) Tempus grant: includes financing to a maximum of 90% of the total eligible direct costs (from the EU) and indirect costs TOTAL PROJECT FINANCE € 150.000,00 910.000,00 1.060.000,00 60.000,00 190.000 1.220.000,00 Ceiling A: (85% of 1.160.000 + indirect costs) 986.000 + 60.000 = EUR 1046.000 B: 1.220.000 -190.000= EUR 1.030.000 Ceiling Ceiling C: EUR 910.000 Final decision on payment: CEILING C EUR 910.000 http://eacea.ec.europa.eu/tempus/index_en.php Payment Cycle 45 days 1st pre-financing: 60% - After the date when the last of the parties signs the GA (OR upon receipt of a financial guarantee if required) Intermediate 2nd pre-financing: 30% - After the reception of : balance: max 10% - following the approval of the Final Report including: Report (IR) in any case no later than half way through the project lifetime Request for Payment + Intermediate Report Financial Statement & Request for Payment Final Report (FR) External Audit Report http://eacea.ec.europa.eu/tempus/index_en.php Reference documents to be consulted regularly: Grant Agreement Guidelines for the use of the grant Frequently Asked Questions http://eacea.ec.europa.eu/tempus http://eacea.ec.europa.eu/tempus/index_en.php For additional support you can contact us: Eacea-tempus-project-management@ec.europa.eu Thank you for your attention! http://eacea.ec.europa.eu/tempus/index_en.php