EcoPlasBrick
EcoPlasBrick
Innovative recycled plastic based panels for
building field
AGREEMENT NUMBER: ECO/10/277233/SI2.596954
Final MEETING
Venezia, 19 June 2014
36M MEETING - Venezia 19th June 2014
EcoPlasBrick
Financial & Administrative Issues
Budget:
Total eligible costs of the action are estimated at 1.832.066 €.
36M MEETING - Venezia 19th June 2014
EcoPlasBrick
Financial & Administrative Issues
Duration of the project:
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Starting date – 01/07/2011
Duration – 36 months
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Reporting periods:
 Month 1 – Month 10 – First technical progress report
 Month 1 – Month 20 – Interim technical implementation report and
Interim financial statements
 Month 21 – Month 28 – Second technical progress report
 Month 1 – Month 36 – Final technical implementation report and
Final financial statements + where required, Certificates on the
financial statements
36M MEETING - Venezia 19th June 2014
EcoPlasBrick
Financial & Administrative Issues
Eligibility criteria:
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Costs must relate to the action and be necessary
Costs must be reasonable and justified
Costs must have been budgeted
Costs must be generated during the period of the action, i.e. from
contract start (exception of costs relating to final reports and audit
certificates -> Max. + 2 months)
Costs must abide by the relevant general accounting principles and
participant’s internal rules + comply with sound financial
management
Costs must be identifiable and verifiable in particular being recorded
in the accounting records of the beneficiary and determined
according to the applicable accounting standards of the country
where the beneficiary is established and according to the usual costaccounting practices of the beneficiary
Costs claimed during project must actually be incurred
36M MEETING - Venezia 19th June 2014
EcoPlasBrick
Financial & Administrative Issues
Ineligible costs (see grant agreement):
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Return on capital
Debt and debt service charges
Provisions for losses or potential future liabilities
Interest owed
Doubtful debts
Exchange losses
VAT, unless the beneficiary can show that he is unable to recover it
Costs covered by another action receiving a Community grant
Excessive or reckless expenditure
36M MEETING - Venezia 19th June 2014
EcoPlasBrick
Financial & Administrative Issues
Some formal principles in establishing the budget
will ease everybody's life
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All costs should be budgeted in whole Euros
• Round the figures, do not just hide the decimals
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All costs should be budgeted net of value added tax (VAT)
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The proposer may only budget gross amounts (incl. VAT) if he
provides a certificate from his tax authority stating he can not
recover VAT
36M MEETING - Venezia 19th June 2014
EcoPlasBrick
Financial & Administrative Issues
Direct costs:
The eligible direct costs for the action are those costs which are
identifiable as specific costs directly linked to performance of the action
and which can therefore be booked to it direct.
In particular, the following direct costs are eligible:
• Direct staff costs assigned to the action
• Travel and subsistence allowances for staff taking part in the
action,
• Subcontracting costs entailed by other contracts awarded by the
beneficiary for the purposes of carrying out the action
• The purchase cost of equipment (new or second-hand)
• Other specific costs, these are costs arising directly from
requirements imposed by the agreement (dissemination of
information, specific evaluation of the action, audits, translations,
reproduction, etc.)
36M MEETING - Venezia 19th June 2014
EcoPlasBrick
Financial & Administrative Issues
Direct staff costs:
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Only technical and specialised staff may be declared
Costs for administrative support staff belong to the indirect cost
category
Identify each category of staff in a clear and unambiguous manner
Examples of staff categories: project manager, expert, senior expert,
junior expert, senior engineer, technician, etc
The inclusion of freelance ‘staff’ (=inhouse consultants) depends on
their contractual terms and conditions of work:
• They work in the premises of the beneficiary using its
infrastructure
• They take directions from the beneficiary
• The outcome of the work belongs to the beneficiary
• Teleworking only if standard working conditions are applicable
to the teleworker
36M MEETING - Venezia 19th June 2014
EcoPlasBrick
Financial & Administrative Issues
Staff cost per hour:
Only the cost of staff assigned to the action may be declared: comprising
actual salaries plus social security charges and other statutory costs
included in the remuneration.
Real costs = direct labour costs
i.e. wages and salaries plus related obligatory social security charges and
other statutory costs (numerator).
The denominator is the average number of productive hours :
• Productive hours are the hours worked, whether for a commercial or
project purpose or for internal matters
• The EACI will review rate calculations on this basis
The number of hours declared must reflect the work that has been done.
The labour rate reflects the economic conditions prevailing for
the beneficiary.
Acciona 145 – ACA 145 – Consorzio TRE 143 – Motulab 145 – Pandora
145
36M MEETING - Venezia 19th June 2014
EcoPlasBrick
Financial & Administrative Issues
Travel & subsistence costs:
 Only for staff taking part in the action (travel costs of subcontractors
should be included in the subcontracts)
 The travel costs should be based on the beneficiary’s usual practices
and reflect the most economical options
 Keep track of trips (e.g. keep flight boarding passes)
 Check if the amount of trips is reasonable
36M MEETING - Venezia 19th June 2014
EcoPlasBrick
Financial & Administrative Issues
Subcontracting:
 Relates to purchase of services, not of goods!
Subcontracting may only cover the execution of a limited part of the action:
• Limited tasks outsourced by the beneficiary, and for hiring special expertise
• Does not include services ancillary to the main work, e.g. printing of
documents, which should be declared under "Other specific costs"
• Subcontractors should be selected on transparent grounds, to the best offer,
taking into consideration price and quality (best value for money)
• In a very simplified procedure, three different offers should be obtained and
evaluated against common established criteria
• Beneficiaries can not subcontract services or sell equipment to one another
or internally (e.g. between departments or affiliates)!
 < 35% of total eligible costs, unless justified in Annex I
 A clear description of the service should be given with the name of the
provider
36M MEETING - Venezia 19th June 2014
EcoPlasBrick
Financial & Administrative Issues
Equipment:
 The purchase cost of equipment (new or second-hand) must be
written off in accordance with the tax and accounting rules applicable
to the beneficiary and generally accepted for items of the same kind.
 Only the portion of the equipment’s depreciation corresponding to
the duration of the action and the rate of actual use for the purposes
of the action may be taken into, except where the nature and/or the
context of its use justifies different treatment.
36M MEETING - Venezia 19th June 2014
EcoPlasBrick
Financial & Administrative Issues
Other specific costs:
These are costs arising directly from requirements imposed by the agreement.
Such costs include all the other direct costs that cannot be included under the
previous cost categories for direct costs. Examples:
Costs of financial guarantees
Costs of certificates on financial statements
Printing of dissemination material, subscription fees to conferences
Specific evaluation of the action
Travel costs for people who are neither members of staff nor
subcontractors (for instance experts)
 Translations, reproduction, etc.
 Specific costs incurred by the coordinator for fulfilling his responsibilities in
his capability of the body responsible for the overall management of the
action and the co-ordination of the beneficiaries
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!! Electricity & Gas are do not belong to “Other Specific Costs”. They are part of
overhead.
36M MEETING - Venezia 19th June 2014
EcoPlasBrick
Financial & Administrative Issues
Indirect costs:
The eligible indirect costs for the action are those costs which are not
identifiable as specific costs directly linked to performance of the action
which can be booked to it direct, but which can be identified and justified
by the beneficiaries using their accounting system as having been
incurred in connection with the eligible direct costs for the action. They
may not include any eligible direct costs.
Indirect costs are eligible for flat-rate funding fixed at 7% of the
beneficiaries total eligible direct costs.
Indirect costs need not be supported by accounting documents.
36M MEETING - Venezia 19th June 2014
EcoPlasBrick
Financial & Administrative Issues
Non-eligible costs:
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Return on capital
Debt and debt service charges
Provisions for losses or potential future liabilities
Interest owed
Doubtful debts
Exchange losses
VAT, unless the beneficiary can show that he is unable to recover it;
Costs declared by a beneficiary and covered by another action or
work programme receiving a Community grant
Excessive or reckless expenditure
36M MEETING - Venezia 19th June 2014
EcoPlasBrick
Financial & Administrative Issues
VAT issue:
As a general rule - all costs should be declared net of value
added tax (VAT)
BUT! - The beneficiary may declare gross amounts (incl.
VAT) if he/she provides a certificate from his tax authority
stating he can not recover VAT
36M MEETING - Venezia 19th June 2014
EcoPlasBrick
Financial & Administrative Issues
Budget transfers:
A beneficiary may, when carrying out the action, adjust the estimated
budget by transfers between items of eligible costs, provided that this
adjustment of expenditure does not affect the implementation of the
action and the transfer between items does not exceed 20% of the total
costs of the action.
Beneficiaries may, when carrying out the action, transfer between
themselves the estimated budget set out in Annex II, provided that this
adjustment of expenditure does not affect the implementation of the
action and the transfer does not exceed 20% of the total eligible costs of
the recipient beneficiary and the transfer does not exceed 50% of the
total costs of the giving beneficiary.
36M MEETING - Venezia 19th June 2014
EcoPlasBrick
Financial & Administrative Issues
Funding rates:
Name
Status
% EC funding
CETMA
Other
50
Consorzio TRE
Other
50
Pandora
Small
50
Motulab
Small
50
Acciona
Large
50
ACA
Other
50
The Agency will contribute a maximum of 916.033 € for the
project.
36M MEETING - Venezia 19th June 2014
EcoPlasBrick
Financial & Administrative Issues
Payments:
 First pre-financing
The first pre-financing is intended to provide the beneficiaries with a float.
The Agency will transfer the First pre-financing to the coordinator within 45 calendar days from
the date when the signed agreement and all the mandates are officially received.
The first pre-financing is equal to 30% of the maximum EC funding specified in the agreement,
i.e. 30% * 916.033 € = 274.809,90€
 Second pre-financing
The coordinator may request a second pre-financing payment provided that 100% of the first
pre-financing payment has been used up.
The amount of the second pre-financing shall be paid to the coordinator upon approval by the
Agency of the interim technical implementation report of the action and the interim financial
statements.
The aggregate amount of the pre-financing payments shall represent 60% of the maximum
amount of the grant.
 Payment of the balance (the final payment)
• Payment of the balance, which may not be repeated, is made after the end of the action
on the basis of the costs actually incurred by the beneficiaries in carrying out the action,
and deducting the amount of any pre-financing previously paid to the beneficiary.
• The payment of balance shall be effected on approval by the Agency of the final technical
implementation report of the action and the final financial statements.
36M MEETING - Venezia 19th June 2014
EcoPlasBrick
Financial & Administrative Issues
Payments (2):
* Provided that 100% of the first pre-financing payment has been used up
** Based on the eligible costs actually incurred, and considering the amount of any prefinancing previously paid to the beneficiary
36M MEETING - Venezia 19th June 2014
EcoPlasBrick
Financial & Administrative Issues
Certificate on financial statements:
Each beneficiary for whom the amount of Community funding exceeds 150.000 € shall
provide an external audit report on the action’s accounts at the time of the Final payment.
No template are available.
36M MEETING - Venezia 19th June 2014
EcoPlasBrick
Project reports and
documents
Practical procedures and
deadlines
20M MEETING - Brindisi 31 January 2013
EcoPlasBrick
Financial & Administrative Issues
Time Sheet:
20M MEETING - Brindisi 31 January 2013
EcoPlasBrick
Financial & Administrative Issues
Estimated hours:
The table below shows the hours spent in the project by each partner at
last check (month 28) and the total foreseen in the contract
20M MEETING - Brindisi 31 January 2013
EcoPlasBrick
Financial & Administrative Issues
20M MEETING - Brindisi 31 January 2013
EcoPlasBrick
Financial & Administrative Issues
Financial Report: Please use the file of interim report
Please complete with the name, categories, Number of
hours and rate
20M MEETING - Brindisi 31 January 2013
EcoPlasBrick
Financial & Administrative Issues
Please complete with the name of SUB, date, description of
the work, amount
20M MEETING - Brindisi 31 January 2013
EcoPlasBrick
Financial & Administrative Issues
Please complete with the name, destination, date, number of
days, purpose and amount
20M MEETING - Brindisi 31 January 2013
EcoPlasBrick
Financial & Administrative Issues
Please complete with the description of machine, cost, period
of use, depreciation and allocation
20M MEETING - Brindisi 31 January 2013
EcoPlasBrick
Financial & Administrative Issues
Please complete with the supplier, description and amount
20M MEETING - Brindisi 31 January 2013
EcoPlasBrick
Technical Progress Reports
• Through the CO and in the format provided by the
Agency, the Co-beneficiaries shall submit:
– 1st technical progress report, covering M1-M10, within
31/05/2012 MADE
– an interim technical implementation report (and interim
financial statements), covering M1-M20, within 31/03/2013 MADE
– 2nd technical progress report, covering M21-M28, within
30/11/2013
MADE
– a final technical implementation report (and final financial
statements), within 60 days from end of project activities,
31/08/2014
20M MEETING - Brindisi 31 January 2013
EcoPlasBrick
Deadlines
• Please send me the financial report by July 10th
• Please send to CETMA two signed version by
August 1st by courier with the proper audit
certificate
• Remember to send the copies of the invoices
20M MEETING - Brindisi 31 January 2013
EcoPlasBrick
Thank you for your attention
Sara Parodi
+39 010 3628148
sara.parodi@dappolonia.it
20M MEETING - Brindisi 31 January 2013