BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
First Level Control Office BiH
VALIDATION OF THE EXPENDITURES
Sarajevo, 19 February 2013
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
Agenda
10.00 – 10.20:
10.20 – 10.45:
10.45 – 11.00:
11.00 – 12.00:
12.00 – 13.00:
13.00 – 14.30:
14.30 – 14.45:
14.45 – 16.30:
Start/Welcome/First Level Control (FLC)for
SEE; definition, objective
Reporting procedure by Project Partners
Coffee break
First Level Control (FLC): areas of
attention under the various budget lines
Lunch break
First Level Control (FLC): areas of
attention under the various budget lines
Coffee break
Q & A / evaluation of the training
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
Training objective
To improve the quality of financial reporting by
the Project Partners resulting in an increased
level of expenditure that can be validated by
the national First Level Control Office (FLCO)
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
First Level Control (FLC) - objective
guarantee that expenditure reported and
claimed by Project Partner is justified,
substantiated, real, actual, incurred and
actually paid and in line with the provisions of
the Subsidy Contract / Partnership Agreement
concerned and are in line with all legal
provisions governing the Programme
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
First Level Control – what is checked?
Requires a 100% desk-based administrative
verification of documents complemented
by on-the-spot checks on a sample basis
before the issuance of Declarations on the
Validation of Expenditure (DVE)
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
REPORTING PROCEDURE BY THE PROJECT
PARTNERS TO FIRST LEVEL CONTROL
OFFICE
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
Partner Report

Describes the activities fulfilled and the expenditure
incurred and paid by the Project Partner in the
given reporting period.

The Partner Reports must be submitted to the
competent FLCO who will verify eligible costs
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
Partner Report
Consists of two sections:
ACTIVITY REPORT: provides information on the
achievement of the project’s activities, milestones and
outputs
FINANCIAL REPORT: provides information on the
project’s expenditure related to the activities per budget
line and Work Package
Must be filled in:
◦Description of the expenditure
◦Activity fulfilled according to the approved AF
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY



SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
Partner Report
The IPA project partners of the 3rd and 4th CfP
shall use the SEE Partner Report template (IPA)
annexe 4b
The standard tool template can be download from
the SEE Programme website:
www.southeast-europe.net
For any technical problem when filling in the
Partner Report please contact the SEE Joint
Technical Secretariat
jts@southeast-europe.net
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
Partner Report

It is recommended that the project partner starts to
fill in and regularly updating the periodic Partner
Report with respective data already during the
reporting period

When the project partner receives the DVE from
the Controller (2 copies of signed and stamped
paper version) one original of the DVE should be
forwarded to the LP together with the final version
of the Partner Report
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
Partner Report
A Microsoft Excel document containing:
Main data
Activity report
Activities per WPs
Indicators
Financial report
Summary of expenditure






◦

List of invoices
Revenues
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY

SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
The Basis Partner Report tool
1 - Main data worksheet
(Project code, Project acronym, Project title, Name of the PP, Starting and end
dates of the project, Contact person and legal representative)

5 - Financial Report worksheet
(Table ‘5.1 Total budget of the IPA Project Partner’ .Based on table 5.5 of the AF;
Information on state contribution’.)

3 - Activities per WPs worksheet
(Title of the WPs from WP3 on; qualitative and quantitative outputs and results defined in the AF should be listed for different WPs.)

4 - Indicators worksheet
(The base and target values of the indicators (based on the ‘7 Indicators’ of the AF)
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
The Partner Report
 1 - Main data worksheet
(Starting and end date of the respective reporting period; is there any change in main project data
in comparison to the ‘basis Partner Report tool’
 2 - Activity Report worksheet
(Summary of the project activities; Project implementation timeframe; Spending targets; Other
issues; Project changes)
 3 - Project activities fulfilled in the reporting period by WPs
The actual implementation status of each WP - drop down lists; The titles of the WPs (from WP3
on); Activity description (field should be added to a certain WP when necessary; Public
procurement fields should be added to a certain WP as necessary.
 4 – Indicators
should be updated according to its status at the end of the reporting period.
5 - Financial Report
(Financial progress by WPs table; Information on IPA transfers from LP to PP; Information on state
contribution)


7 – List of invoices per Work Packages
8. – Revenues
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
Currency and exchange rates
Expenditure needs to be reported in euro
Expenditures shall be converted into Euro using the monthly
accounting exchange rate of the Commission in force in the last
month of the reporting period
BAM is pegged to € at rate of 1,9558
Rounding to two digits after the comma
Example:
BAM 1.768,89 equals € 904,4329 which is to be reported as
€ 904,43
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
Timing for reporting
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
Reporting period
4th Call Projects
 28/9/2012-31/3/2013
 1/4/2013-30/6/2013
 1/7/2013-31/12/2013
 1/1/2014-30/6/2014
 1/7/2014-30/9/2014
3rd Call Projects
 1/9/2012-28/2/2013
 1/3/2013-31/5/2013
 1/6/2013/-30/11/2013
 1/12/2013-31/5/2014
 1/6/2014-31/12/2014
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
Reporting the expenditures
To be reported:

Expenditures incurred and paid by the end of the
reporting period
Note:

Invoices not paid by the end of the reporting period
should be reported with the next Report
Important:

If the Partner Report is not tidy the FLCO can reject the
Report.
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
Reporting - Formal requirements








Copy of the Subsidy Contract signed by both parties
Copy of the Partnership Agreement signed by all project
partners
Application Form - the electronic version
Declaration on VAT status in original
Addendums to SC or PA as well as revised Application forms
if applicable
Partner Report
All supporting documents which prove the eligibility of the
amount declared (original and copies)
All invoices and other accounting documents of probative
value (they will be sent back to the PP with the DVE)
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
Important

The VAT exemption certificate is obligatory. VAT is
not an eligible expenditure.

All project related expenses must be registrated with
specific accounting codes or other transparent
methods in the accounting system which allows the
identification of costs allocated to the project
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
Budget lines
1.
2.
3.
4.
5.
6.
7.
STAFF COSTS
TRAVEL AND ACCOMMODATION
OVERHEADS
FINANCIAL CHARGES AND GURANTEE COSTS
EXTERNAL EXPERTISE AND SERVICES
EQUIPMENT
SMALL SCALE INVESTMENTS
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
STAFF COSTS



Costs of the personnel for project management and/or
tasks for project activities
Staff directly employed by regular working contract or
similar type of contract according to national rules
Covers the salaries (gross salary = netto salary + all
legal provisions such as holiday entitlement, provision
for sick leave, all charges paid both by employee and
employer, meal, transport cost, allowance for holiday
and excluding voluntary contributions such as
institutional pension schemes, fringe benefits, rewards,
overtime) of staff of the Project Partner working either
on a full-time or part-time basis on the project
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
STAFF COSTS
Documents to be presented by PP / checked by FLCO
with first Partner Report :
The PP will submitted with 1st Partner Report
(to be updated during project lifetime) stating as a
minimum:
o
full list of project staff (name of the employee)
o
work contract, decision on appointment or
service order in line with national eligibility rules
o
job description (qualification, main task, start &
end date), clear assignment to the project
o
the person is working full time or part time on
the project
o
the institutional book of rules («pravilnik o
platama i sistematizacija radnih mjesta» and / or
« odluka o utvrđivanju koeficijenata i načinu
obračuna plata »)
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
STAFF COSTS
Documents to be presented by PP / checked by FLCO:

Proof on working time spent on the project:
Monthly timesheets

The method for calculating the hourly rates and the
calculation of staff costs (national guidance)

Payslip & payroll

Proof of payment (salary and social charges)
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
STAFF COSTS
Documents to be presented by PP / checked by FLCO:
Monthly timesheets proving the actual time worked on
the project: (name of the employee, date, time,
description of activity related to the project
«Signed by both the employee and the employer, date«
 Template of timesheet (national guidance)
 Be careful with employee who works on more then one
project

Note:
Beneficiaries are not obliged to use these templates and
can use their own format but the minimum information
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
STAFF COSTS
Obligatory minimum information on timesheets:
project acronym, title & code, time, date
 name & function of the person to which timesheet
refers to
 extent of employment on the project of person
concerned
 name of the Project Partner
 name & function of the person approving the
timesheet on behalf of the Project Partner
 description of project activities
 extent to which the work is dedicated to the project

The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
STAFF COSTS



Obligatory :
The calculation is based on real costs( real gross
salary proved by payslips) and real worked hours
(time spent on the project proved by timesheets)
The Calculation method must be the same as
the evidence in timesheet, can not be different
Hourly method of registration in timesheet, use the
same method for calculation of monthly salary for
reimbursement
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
STAFF COSTS
Monthly salary + obligatory charges (gross salary) /
total working hours in the given month x
project worked hours in the given month

Calculation of salary based on activities in WP

When calculating the salary on WP, check the
amount in WP in budget (over-budget)

During project, the amount of salary of project staff
can not be increased
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
STAFF COSTS
EXAMPLE
Basis = gross salary of 2,500 KM for April 2012 for an
employee working part time on the project:
Salary paid for April 2012:
2,500
No of hours workable during April 2012: 176
Hourly rate:
2,500/176=14.20KM
No of hrs worked on project in April 2012:48hrs(27.27%)
Total eligible cost:
48*14.20 = 681.60KM
681.60KM / 1.95583 = 348,50 €
Total to be reported (conversion into €):
€ 348,50
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
STAFF COSTS
Documents to be presented by PP / checked by FLCO:
Proof of payment of both the salary and social charges
whereby FLCO needs to be able to identify clearly to
whom the salary was paid:






Nalog plaćanja
Nalog blagajne kod gotovinskih isplata
Registar plaćanja i faktura (budžetski korisnici)
Izvod banke
Specifikacija uz platu ovjerena od strane Poreske uprave (2001)
Izjava odgovorne osobe da se iznos plate isplaćuje kumulativno za
sve uposlene u organizaciji i da u taj iznos ulaze i plate zaposlenih
na projektu
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
STAFF COSTS
MAIN PROBLEMS ENCOUNTERED SO FAR:
Insufficient supporting documentation (e.g. no list
of staff or employment contracts submitted)
 Lack of proof of actual payment of salaries and
other obligatory charges
 Lack of information as to how the hourly rate was
calculated
 No adequate calculation of gross salary
(calculation the part of obligatory charges)
 Incorrect timesheets

The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
TRAVEL & ACCOMMODATION

Covers expenditure related to the travel and accommodation
costs of the project staff (travel and accommodation costs of
external experts participating in the project have to be charged
against the budget line «External expertise» )

Travel directly related with project activities

Travels within the eligible area

Approved in line with the Project Partners rules, (authorisation
of the mission)

Travelling costs of the Associated Strategic Partners are
directly paid by ERDF sponsoring Partner (daily allowance are
not eligible)
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
TRAVEL & ACCOMMODATION
SOME BASIC RULES

Assignment of costs
Costs have to be borne by the Project Partner
and therefore proof of direct payment by the
employee is not sufficient as proof
The most economical way of transport
 normally public transport (travel by air, bus, train,
boat)
 economic class is eligible, but business/first
class tickets always ineligible (even if allowed by
the internal rules of the Project Partner)
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
TRAVEL & ACCOMMODATION
SOME BASIC RULES
Reasonability of board & lodging costs
Accommodation costs - Hotel costs (invoice) can be
accepted without reservation if they are in the middle price
ranges must be duly justified in each case
Duration
Any travel should be reasonable and should normally start
the day before the event (e.g. meeting) until the day after
Note: this requires judgment by the First Level Controller
who may ask additional clarifications
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
TRAVEL & ACCOMMODATION
SOME BASIC RULES
Reporting method
Costs should be reported in line with national
rules or specific internal regulations of the PP
(pravilnik o službenim putovanjima)
 Daily allowance should be in line with entity
legislation
 Mission report signed by the travelling person

The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
TRAVEL & ACCOMMODATION


Start & end date and hours of travel
Calculation of travel allowances ( in country or in
board, full or part 30%)



Exchange rate (last month reporting period)
All costs (accommodation, auto park, bus/train/plane
tickets (boarding pass-obligatory)fuel??, highway tickets)
Invitation, Decision for mission, List of participants,
agenda and minutes
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
TRAVEL & ACCOMMODATION
TRAVEL BY OWN / COMPANY CAR
Calculation sheet prepared according to national or
institutional rules stating at least: (20% of price fuel)
 distance
 unit rate
 total cost
If necessary accompanied by additional proof
documents
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
TRAVEL & ACCOMMODATION
MAIN PROBLEMS ENCOUNTERED SO FAR:
Insufficient supporting documentation (e.g. no travel
order, or economic way or clarification no
submitted)
 Lack of proof of payment
 Lack of information as to how the calculation rate
was
 No adequate costs (extra meals in restaurant,
washing car)
 Incorrect calculation of exchange rate
 One travel order for two persons
 Not submitted invitation letter, participants list

The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
BUDGET LINE –
OVERHEADS
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
OVERHEADS
Covers expenditure such as:
OFFICE COSTS:
electricity, heating, water, cleaning, office rent, office
supplies
ADMINISTRATIVE COSTS:
telephone, fax, internet, mail/postal/courier services,
bank charges for national financial transactions
related to the normal bank account of the Beneficiary
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
OVERHEADS


“Flat rate” basis up to 8% of staff costs:
Overheads costs can be automatically declared
using the flat rate defined at programme level
without further justification or supporting
documents!
“Real costs” basis up to 20% of staff costs:
justified by invoices, supporting documents!
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
OVERHEADS
TWO CATEGORIES
(i)
Direct general costs = overheads directly
allocated to the project (charged to the project at
actual cost, no lump sums or estimations)
(i)
Indirect general costs = overheads allocated
proportionally to the project (charged on the
basis of a calculation method)
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
OVERHEADS
CALCULATION METHODS/BASIS FOR
APPORTIONMENT
(i)
No. of people working on the project / No. of
people working in the organisation
(ii)
No. of hours worked on the project / No. of
hours worked in total in the organisation during
the period reported on
(iii)
Surface used by the personnel working on the
project / surface of the organisation
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
OVERHEADS
Example of a calculation method to charge the
costs of electricity and heating on the basis of
surface of office space used for the purposes of
implementing the project whereby:


space used for project purposes = 100 m²
total office space at the disposal of the
Project Partner (also for non-project related
activities = 400 m²)
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
OVERHEADS
Total cost of electricity & heating for the entire
premises of the Project Partnery during the
period reported on equals to BAM 500
100/400*100=25%
25% (500)= 125 BAM
or 63,91 € (125/1,95583)
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
OVERHEADS
Example of a calculation method to charge the
costs of Internet on the basis of No. of people
working on the project whereby:
3 full-time staff (100%) and one half-time staff
(50%) are working on the project


overall staff of the Project Partner (including
those not working on the project) is the
equivalent of 12 full-time staff members
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
OVERHEADS
Total cost of Internet for the entire premises of the
Project Partner during the period reported on
equals to BAM 200
3,5/12*100=29,17%
29,17% (200)= 58,34 BAM
or 29,83 € (58,34/1,95583)
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
OVERHEADS
Notes on calculation method used:

The choice of the method used to apportion
overhead costs to the project must be attached
to the Progress Report

If surface is used then general spaces such as
toilet, corridors, canteen(s) etc needs to be
excluded from total available space.

Method may become subject to verification
during an on-the-spot check.
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
OVERHEADS
Documents to be presented by PP/checked by
FLCO:
-Proof of payment
-Invoices
-Calculation method
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
FINANCIAL CHARGES AND GUARANTEE COSTS
Refers to costs related to:
 charges for transnational financial
transactions,
 bank charges for opening and administering
the accounts if a separate account for the
project has been opened and
 cost of bank guarantee(s) if required
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
FINANCIAL CHARGES AND GUARANTEE COSTS
Reporting:
 Documents
proving that all costs are real,
directly related to the project and have not been
declared under other budget line
 Documents
evidencing the opening of the bank
account for the project
 Proof
of payment
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
EXTERNAL EXPERTISE
AND SERVICES
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
BASIC RULES
 the
work of the external expert is essential to the
project;
 rates charged by the external expert are
reasonable;
 the selection of the external experts shall
comply: IPA-I Partners (3rd and 4th call for
proposals): with the provisions of Annex IV to
the PRAG standard grant contract;
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
BASIC RULES
 additional
contracts of external expertise nature
signed with own staff of the partner institution
must strictly apply transparent selection and,
where applicable, public procurement
procedures;
 Project Partners cannot be contracted as
external expert;
 If applicable the deliverables respect the
information and publicity requirements of the
SEE Programme 2007-2013;
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
EXTERNAL EXPERTISE

Covers costs paid for professional services of
external experts or consultants exclusively
engaged for the purposes of the project to
perform certain activities outside the knowledge
base of the Project Partner such as financial
management, project managment, research,
studies, surveys …
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
EXTERNAL EXPERTISE
PUBLIC PROCUREMENT
The recruitment of external experts needs to
fully respect the programme procurement rules
(PRAG)


Web site: PRAG: http://ec.europa.eu/europeaid/eprag/
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
EXTERNAL EXPERTISE

First Level Controllers will check whether there
is sufficient written evidence that the evaluation
of the offers and the award of contracts was
carried out in a professional, objective, fair and
transparent manner
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
EXTERNAL EXPERTISE
WHAT WILL FLCO CHECK REGARDING
PROCUREMENT?
Existence of documents justifying the choice of the
selected service provider such as:
Terms
of Reference
Type of contracts: fee-based service or global price
Information about potential Tenderers approached
Request for Offer
Offers received
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
EXTERNAL EXPERTISE
Existence of documents justifying the choice of the
selected service provider such as:
Evidence
on the evaluation of the offers received
(members of the Evaluation Committee, selection &
award criteria, evaluation report)
Contract with the selected external expert
Outputs by the external expert
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
EXTERNAL EXPERTISE
MAIN PROBLEMS ENCOUNTERED SO FAR:
Lack
of compliance with procurement rules
Doubts
about the necessity and justification to
engage an external expert for a particular activity
Missing
Lack
contract
of evidence of the work done by the external
expert
Lack
of proof of payment to the external expert
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
MEETINGS AND EVENTS
Covers costs related to the organisation of
conferences, seminars, meetings, workshops
directly related to the project and traceable from
the latest approved Application Form.
Examples include: venue renting, renting of
equipment, catering, translation of documents
linked to specific events, printing of materials
directly related to events, external speakers...
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
MEETINGS AND EVENTS





For each event the Project Partner must
clearly demonstrate:
purpose & agenda
location & duration
No. and list of participants
minutes of the event
copy of materials produced
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
MEETINGS AND EVENTS
Eligibility of costs for meetings and
events is subject to the full respect of
procurement rules (proving that the
most cost-efficient option has been
selected) and of visibility / publicity rules
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
PROMOTION COSTS

Refers to all costs related to information and
communication activities (e.g. press releases,
newspaper advertisements, TV shows,
brochures, newsletters, project website, display
panels, banners, photographs, audio-video
production etc…)
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
PROMOTION COSTS

Eligibility of promotion costs is subject to the full
respect of procurement rules (proving that the
most cost-efficient option has been selected)
and of visibility / publicity rules
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
EXTERNAL EXPERTISE AND SERVICES
Documents to be presented by PP/checked by
FLCO:
First Level Controller will check whether :
 The
contract laying down the service to be
provided, reference is made to the project &
programme, contains the name of the expert,
contains a description of the services to be
provided, the total price, deadlines for the
delivery of outputs
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
EXTERNAL EXPERTISE AND SERVICES




Documents on the selection of the external expert or
services are available (documents of the public
procurement)
The evidence of the work carried out by the service
provider is available (studies,researches,analysis)
Deliverables (brochures, photos, list of participants)
Proof of payment: invoices and other accounting
documents for the provided services/works
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
EQUIPMENT

Refers to the purchase of equipment necessary
for the successful implementation of the project
such as IT equipment (computer, printer,
software,…), office furniture, machineries etc
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
EQUIPMENT
SOME BASIC RULES



should not have been already financed by
other subsidies (EU, national or regional)
should not have already been completely
depreciated
should not be claimed in another category
(e.g. overheads budget line)
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
EQUIPMENT

have to respect the procurement
visibility / publicity rules
and

have to be clearly been foreseen in the
Application Form and equipment is
necessary for the project implementation

second hand equipment is ineligible
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
EQUIPMENT
CONCEPT OF ORIGIN
For goods purchased under the grant contract
with a unit price > € 5,000 , the Supplier needs
to submit proof of origin at the latest when they
present their invoice to the Project Partner.
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
EQUIPMENT
CONCEPT OF ORIGIN
Goods (or service providers when these are
companies rather than individuals) need to
originate from an eligible country and these are:
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
EQUIPMENT
MEMBER STATES OF THE EUROPEAN UNION - EU
(27)
+
COUNTRIES OF THE INSTRUMENT FOR PREACCESSION ASSISTANCE - IPA (7)
+
COUNTRIES OF THE EUROPEAN
NEIGHBOURHOOD PARTNERSHIP INSTRUMENT ENPI (17)
+
MEMBER COUNTRIES OF THE EUROPEAN FREE
TRADE AGREEMENT - EFTA (4)
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
EQUIPMENT
Two options re. equipment used
EXCLUSIVELY for project purposes:
(i)
(ii)
100% full cost chargeable to the project
depreciation method
Note: depreciation costs can never exceed the
purchase price of the equipment
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
EQUIPMENT
Purchase price is 100% eligible if:

equipment is low value and thus not
depreciable (in B&H defined as less than
1,000 KM)

period between purchase date and end of
project is longer than or equal to the
normal depreciation method for the piece of
equipment
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY

SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
EQUIPMENT
3rd and 4th call projects: in case the total
economic life of the equipment is longer than the
project duration, either the purchase price shall
be proportionally reduced for the project period:
project period
total economic life of the equipment price

X total purchase
or the depreciation costs shall be declared
according to the relevant national rules.
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
SMALL SCALE INVESTMENTS
Refers to small scale investments with a
demonstrated transnational impact and can
include costs related to: technical infrastructure
and technical investments, solution reducing landbase river pollution, efficient production and using
of bio-mass, energy saving in buildings.
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
SMALL SCALE INVESTMENTS
SOME BASIC RULES




should not have been already financed by
other subsidies (EU, national or regional)
Purchase of land are not eligible
have to respect the procurement and
visibility / publicity rules
have to be clearly been foreseen in the
Application Form and if not, must have been
agreed by the programme management bodies.
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
SMALL SCALE INVESTMENTS
Supporting documents:





Documents on the selection of the contractor;
The contract laying down the works;
The evidence of the small scale investments;
Invoices;
Proof of payment;
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
Thank you!
www.cfcu.gov.ba
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance