BOSNIA AND HERZEGOVINA
MINISTRY OF FINANCE
AND TREASURY
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
First Level Control Office BiH
FLCO
Sarajevo, 17-18 December 2012
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
Welcome
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 – 10.30:
10.30 – 11.30:
11.30 – 11.45:
11.45 – 13.00:
13.00 – 14.00:
14.00 – 15.30:
15.30 – 15.45:
15.45 – 16.15:
16.15 – 17.00:
Welcome/Registration/Introduction –
training objective & approach
First Level Control (FLC): definition,
objective, role of First Level Controllers and
the procedures used, Reporting
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
First Level Control (FLC): areas of
attention under the various budget lines
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 Beneficiaries resulting in an increased level
of expenditure that can be validated by the
CFCU as 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) - definition
FLC entails verifications
carried out at the level of the
Beneficiary Country covering
the administrative, financial, technical and
physical aspects of projects thereby ensuring
that the expenditure declared is real, that
products and services have been delivered and
that the projects and expenditure comply with
the relevant Community and national
legislation
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 Beneficiaries 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
Role of First Level Controllers I

check the regularity and legality of expenditure
incurred and declared by Beneficiaries from
Bosnia and Herzegovina (BiH) by conducting
desk-based administrative and on-the-spot
checks

validate
the
expenditure
incurred
by
Beneficiaries from Bosnia and Herzegovina
(BiH)

validate the content of both the activities and
the finances 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
Role of First Level Controllers II



draft a report and complete a checklist on
the controls performed
sign and issue a Declaration on Validation
of Expenditure (DVE)
keep complete files on the validation
process in line with both programme as well
as national requirements
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 – procedures used
check of completeness
check of compliance with EU and
national legislation, programme rules
and procedures and Subsidy Contract
check of plausibility
check of existence and reality
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 BY BENEFICIARY 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
Progress Report

Presents the activities and costs of one Final
Beneficiary for the given reporting period

The Progress Reports must be submited 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
Progress 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
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
Activity Report

obligatory use of the template developed for
the programme published on
http://www.adriaticipacbc.org/index.asp?page=interna&level=implement
ation_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
Activity Report
FORMAT & CONTENT :
Excel spreadsheet with 4 worksheets:
(i)
(ii)
(iii)
(iv)
Main data
Summary of project activities and main issues
Implemented activities per Work Package
Declarations
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
Activity Report
Section 1 – Main data:
Project identification details:
code, acronym, title, priority, measure, name of FB,
Beneficiary No. in AF, start & end date of project,
legal representative of FB, contact person of FB
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
Activity Report
Section 2 – Summary of project activities and
main issues
-
Description of project activities implemented
within the period covered by the report
-
Explanation whether the implementation of the
project is in line with the time frame as planned in
the AF and if, explanation about the reasons and
estimates of the anticipated delay
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
Activity Report
-
-
Section 2 – Summary of project activities and
main issues
Explanation whether financial progress is in line
with spending forecasts in the AF and if not,
explanation and estimate of deviation
Problems encountered during implementation,
solutions found, minor changes to planned
activities 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
Activity Report
Section 3 – Implemented activities per WP
 Comparison
between planned & realised
activities during the period covered by the report
 Description of results & outputs delivered
 Financial resources reported
Note: it is extremely important that information provided in the Activity
Report corresponds to the information provided in the Financial Report
and the List of Expenditure as otherwise FLC cannot validate the
reported 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
Activity Report
Section 4 – Declarations
VAT
 Revenues
 Grants under the « de minimis » regime
 Equal opportunities
 Environmental issues

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 Report

Expenditures per budget lines and WP filled in
directly into the MIS

Connection with the supporting invoices or other
documents of equivalent probative value
Note:In case the invoice (payslip,receipt...) covers activities
related to more than one WP,a List of expenditure must be
provided.
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
List of Expenditure
Template to be filled in providing details on
costs reported with respect to:
 WP the expense relates to
 budget line the expense is charged against
 invoice number and date
 specification of the invoice
 name of company that issued the invoice
 amount in KM
 exchange rate used (€ 1 = KM 1.95583)
 amount reported in €
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
List of Expenditure
Template can be found on the following link:
http://www.adriaticipacbc.org/index.asp?page=interna&level=implementation_documents
Note: it is of the utmost importance that First Level
Controllers are able to identify the supporting
document backing up each expense declared in
the report without having to spend a lot of time
trying to locate it in the entire package
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
Expenditure needs to be reported in euro
BAM is pegged to € at rate of 1,95583
Rounding to two digits after the comma
Example:
BAM 1.768,93 equals € 904,439547 which is to
be reported as € 904,44
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
Contract award declaration
For all procurement contracts concluded a
standard declaration needs to be filled in
providing
substantial
details
on
the
procurement procedure carried out
See template
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
Contract award declaration

Serves the purpose to prove that the most
economically advantageous offer has been
selected in accordance with the principles of
transparency and fair competition by taking
care to avoid any conflict of interest
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
Single tender procedure report

For any awarded contract not exceeded 10.000
EUR, but higher than 500 EUR

Beneficiaries has to fill in this document, upload in
MIS when reporting and send the hard copy with
the PR to the FLCO

See template
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
Submission of the Progress Report by Beneficiary
1.
2.
3.
4.
5.
FB sends by email properly filled in Activity Report to Lead
Beneficiary who needs to sign and stamp it
Lead beneficiary returns the signed Activity Report to the FB
also by email (scanned)
FB uploads electronic version of the Activity Report for the
period concerned in the Management Information System (MIS)
If necessary, FB uploads Contract Award Declaration and Single
tender procedure Report for the period concerned in the
Management Information System (MIS)
FB prints Progress Report from the system (MIS), sign, stamp it
and sends hard copy to the FLCO with all 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
Attachments to the Progress Report




All documents proving the eligibility of costs as
invoices, bank statements, public procurement
documents, project deliverables,
List of expenditure
Contract Award declaration, if necessary
Single tender procedure Report, if necessary
Any other document FLC might require
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






Final Beneficiaries can report their expenditures
whenever they want
FB are anyway required to reach the level of
expenditures foreseen in the Application form in 4
different periods per year:
by 31 January
by 30 April
by 30 June
by 30 October
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
ATTENTION!

Total amounts indicated in the Financial
Report must be identical to the ones
declared in the Activity Report otherwise the
FLC could not validate the reported
expenditures
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
ATTENTION!
List of expenditure should be identical with
the Financial Report, the expenditures must
be ordered in the same way in the List of
expenditure as they are ordered in the
Financial Report ( MIS)
See the Instruction on how to submit
documents to the 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
Budget lines
1.
2.
3.
4.
5.
6.
7.
8.
9.
STAFF COSTS
TRAVEL AND ACCOMMODATION
OVERHEADS
MEETINGS AND EVENTS
EXTERNAL EXPERTISE (+ publicity and visibility)
PROMOTION COSTS
EQUIPMENT
INVESTMENTS
FINANCIAL CHARGES AND GURANTEE 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
STAFF COSTS

The main purpose of the FLC checks with respect to this
budget line is to establish whether sufficient information is
available concerning the expenditure claimed for all staff
working on the project

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,
regular bonus, work weekend with clarification, meal,
transport cost, allowance for holiday and excluding
voluntary contributions such as institutional pension
schemes) of staff of the Beneficiary working either on a fulltime or part-time basis on the project as indicated in the
Application Form
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

Calculation of salary based on activities in WP

Be careful with MIS and report ( must be the
same amount)

When calculating the salary on WP, check the
amount in WP in budget (overbudget)

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
Documents to be presented by FB / checked by FLCO
with 1st report :
The FB will submitted with 1st report (to be
updated during project lifetime) stating as a
minimum:
o
list of project staff (name of the employee)
o
employment contract , decision on appointment
or service order(qualification, task, start & end
date)
o
job description, position in the project
o
% of work on the project or indicative number
of hours/days involvement
o
gross salary
o
indicative total costs to be funded under the
project’s budget
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 FB / checked by FLCO:

Wherever applicable, the institutional book of rules
(so-called « pravilnik o platama » and / or « odluka
o utvrđivanju koeficijenata i načinu obračuna
plata ») has to be submitted to the FLCO

Payslip & payroll

Monthly timesheets

Proof of payment

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
STAFF COSTS
Documents to be presented by FB / checked by FLCO:
Monthly timesheets proving the actual time worked on
the project stating as a minimum:
name of the employee, date, time, detailed description of
activity related to the project
«Need to be signed by both the employee and the
employer and date «
 Template of timesheet used (there are 2 different
templates on the programme website)
 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 following information
should be stated as a minimum:
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance
BOSNIA AND HERZEGOVINA
SECTOR FOR FINANCING EU ASSISTANCE
PROGRAMMES AND PROJECTS - FLCO
MINISTRY OF FINANCE
AND TREASURY
Monthly timesheet for staff working hours
IDENTIFICATION OF THE PROJECT
Project acronym T.A.P.BIH
Project Final Beneficiary Nam e (in
original language)
Ministarstvo finansija i trezora BiH
Project title
TA FLCO BIH
Project Final Beneficiary (in
English language)
Ministry of Finance and treasury B&H
Project Code
TA/0004/002011
Priority/Measure
4.1. Techical assistance
Beneficiary no. in the AF
FB1
IDENTIFICATION OF THE PERSONNEL EMPLOYED
HANIFA RAMOVIĆ
Name/Surname
Function
Controller-FLCO
IDENTIFICATION OF THE PERSON SIGNATORY ON BEHALF OF THE ORGANIZATION
Name/Surname
part time
Extent of employment
Month/Year
Function
Vera Letica
Assistant of Minister
August / 2012
1
0
3
other activities
Days off
(holidays, Total days
sickness...
)
3
0
3
2
2
desk baced check documentation
3
other activities
5
0
5
3
1
staff briefing
4
other activities
5
0
5
4
1
prepared activity report FLCOBiH
3
other activities
4
1
5
5
1 check and calculation cost for TA FLCOBIH
5
0
5
22
1
23
Project related activities
Week
Total days
per w eek
5
Signature:
Date:
Activities not related to this project
Activity (Please indicate a brief
W Total days
description of the project-related activity ) P per w eek
Activity (If related to another project, indicate the
Programme/fund)
4
17
other activities
Total
working
days
Signature:
Date:
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
name & function of the person to which timesheet refers to
extent of employment on the project of person concerned
name of the Beneficiary organisation (in local language
and in English)
priority/measure
name & function of the person approving the timesheet on
behalf of the Beneficiary organisation
description of project activities carried out as well as
activities not related to the project
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 method must be the same as
the evidence in timesheet, can not be different
If you choose 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
Documents to be presented by FB / checked by FLCO:
Calculation method / formula used for
calculating hourly rates / total staff costs
Monthly gross salary + obligatory charges / total
working hours in the given month * hours
worked on the project in the given month
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 BAM 2,500 for April 2012 for an employee
working part time on the project:
Salary paid for April 2012:
No of hours workable during April 2012:
Hourly (days) rate:
No of hrs worked on project in April 2012:
Total eligible cost:
Total to be reported (conversion into €):
BAM 2,500
176 (22*8)
2,500/176 (22)
= BAM 14.20 (113,64)
48 hrs (27.27%)
48 * BAM 14.20
= BAM 681.60 or
6*BAM 113,64
=BAM 681,80
€ 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 FB / checked by FLCO:
Proof of payment of both the salary and all compulsory
charges whereby FLCO needs to be able to identify
clearly to whom the salary was paid and what all the
extras are that have been paid






Nalog plaćanja
Nalog blagajne kod gotovinskih isplata
Registar plaćanja i faktura (budžetski korisnici)
Izvod banke
Specifikacija uz platu ovjerena od strane Porezne uprave
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 employees of the
Beneficiary (travel and accommodation costs of
external experts participating in the project have to
be charged against the budget line « External
expertise » – see later)

Travel costs for driver are eligible if he is on list of
staff . (Other people)

Travel related with project activities
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
The First Level Controller checks whether expenses
under this budget line are:

reasonable

foreseen in the Application Form

approved internally within the Beneficiary
institution (authorisation of the mission)

in line with the Beneficiary’s internal rules

incurred in the eligible geographical areas
of 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
TRAVEL & ACCOMMODATION
SOME BASIC RULES

Assignment of costs
Costs have to be borne by the Beneficiary and
therefore proof of direct payment by an employee
is insufficient
Economy of transport
 cheapest way (to be demonstrated on the basis of
an assessment by the Beneficiary)
 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 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
TRAVEL & ACCOMMODATION
SOME BASIC RULES
Reasonability of board & lodging costs
Hotel costs (invoice) and costs of meals should be
« reasonably » priced and higher price ranges
must be duly justified in each case
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
Duration
Any travel should be reasonable and should
normally start the day before the event (e.g.
meeting) until the day after
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
Beneficiary(«pravilnik
o
službenim
putovanjima »)
Example: per diems should be in line with
entity legislation
 Cost were 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
TRAVEL & ACCOMMODATION
SOME BASIC RULES
Per diems / daily allowances
Can be eligible provided they are foreseen in
national / institutional rules as the only way of
reimbursement of costs such as
accommodation, meals, local transport 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
TRAVEL & ACCOMMODATION
Example





Start & end date and hours of travel
Calculation of travel allowances ( in country or in
board, full or part 30%)
Exchange rate (date reimbursement of travel orderdate reporting is for exchange KM in EUR)
All costs (accommodation, autopark, 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 /
institutional rules stating at least:(20% of price fuel)

distance

unit rate

total cost

fuel cost
If necessary accompanied by additional proof
documents
Can take a rent-a-car (invoice & way of selection)
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
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
Beneficiary (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 Beneficiary 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 Beneficiary (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 Beneficiary 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 GB / checked by
FLCO:
The First Level Controller will verify whether there
is a clear indication of the method of allocating
overheads to the project by the Beneficiary with
the first report and if changes occur at a later
stage, whether this change is justified and
explained in the next report (normally the
calculation method can only be reviewed on a
yearly basis)
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 GB / checked by
FLCO:
Proof of payment
Note: for telephone costs an itemised bill should
be presented indicating clearly which calls were
related to the project providing as a minimum
details on the person/organisation called and the
reason for the call
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
MAIN PROBLEMS ENCOUNTERED SO FAR:

No calculation method attached to the report

Proof of actual payment of overheads missing
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
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,
interpretation 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 Beneficiary 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
EXTERNAL EXPERTISE
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 Beneficiary such
as financial management, legal advice,
research, (specialised) translation, 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
PRIMARY CONDITIONS
work of the external expert is essential to the
project
external experts can only be engaged for
services which the Beneficiary cannot perform
with already engaged resources
fee rates are reasonable (in line with market
rates prevailing in Bosnia and Herzegovina)
and in relation to the consultant’s expertise and
experience
Project Partners cannot be contracted as
external expert
person charged under « Staff costs » cannot be
contracted under « External expertise »
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, INTERACT, national)
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 – WEBSITES
PRAG: http://ec.europa.eu/europeaid/eprag/
INTERACT:http://www.interacteu.net/ipa_interact_publicati
ons/interact_ipacbc_documents/319/4867
NATIONAL:http://www.javnenabavke.ba/index.php?id=10
zak&zak=1&jezik=en
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
WHY PUBLIC PROCUREMENT PROCEDURES?
To prove that respect for the following
underlying philosophies has been ensured:







fair & open competition
impartiality
transparency
best value for money
equal treatment
non-discrimination
nationality & origin
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
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
Documents to be presented by GB / checked by FLCO:
First Level Controller will check whether:

Evidence of compliance to the procurement rules
exists

External experts are not already employed as
regular staff

Fee rates are conform to market prices and in line
with the expert’s level of expertise, experience and
competence
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
Documents to be presented by GB / checked
by FLCO:
First Level Controller will check whether :
 The
contract with the external expert is
available, 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






Services provided by the external experts are
directly related to the project,the related activities
are explicity stated in the Application Form
The evidence of the work carried out by the service
provider is available (studies,researches,analysis)
Proof of payment is available (bank statement)
Proof of payment of taxes and contributions
Reports on provided service/s or work/s
Invoices 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
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
PUBLICITY
AND
VISIBILITY
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
PUBLICITY AND VISIBILITY
Beneficiaries are requested to consult the
« Communication and Visibility Manual for EU
external actions » on the following link:
http://ec.europa.eu/europeaid/work/visibility/index_en.htm
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
PUBLICITY AND VISIBILITY
PROJECT COMMUNICATION PLAN
At the start of the project the partnership will
develop a communication plan specifying:
Aim & purpose of the communication &
visibility activities
 How and when results will be disseminated
 How responsibilities will be split between the
different partners
 Specification of financial resources

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
PUBLICITY AND VISIBILITY
LANGUAGE

English, being the language of the Programme,
is suggested but national language may be
used as well to better tailor the information to
the local target group(s)
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
PUBLICITY AND VISIBILITY
MAIN TOOLS THAT CAN BE USED

Project logo

Project website

Events (e.g. seminars, conferences, workshops)

promotional materials (e.g. leaflets, brochures,
newsletters)

Media(press, conferences, TV/radio/Internet
broadcasting, articles in
international/national/regional/local press)
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
PUBLICITY AND VISIBILITY
OBLIGATORY USE OF EUROPEAN FLAG
The European Union flag can be downloaded at:
http://europa.eu/about-eu/basic-information/symbols/flag/index_en.htm
To be accompanied by the statement:
« The project is co-funded by the European
union, Instrument for Pre-Accession
Assistance. »
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
PUBLICITY AND VISIBILITY
OBLIGATORY USE OF PROGRAMME LOGO
The programme logo can be downloaded at:
http://www.adriaticipacbc.org/index.asp?page=interna
&level=implementation_documents
Two versions:
With the slogan of the Programme (« Let’s grow
up together »)
 Without the slogan of 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
PUBLICITY AND VISIBILITY
SPECIFIC REQUIREMENTS FOR INVESTMENT
During the works a billboard shall be put on site
clearly visible to passers-by
Upon completion the billboard shall be replaced
by a permanent plaque clearly visible to remain
in place for at least 5 years following completion
of the 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
PUBLICITY AND VISIBILITY
CONTENT OF BILLBOARDS / PLAQUES
European flag and Programme logo taking up at least
25% of the billboard / plaque
 Project name
 Name of beneficiary
 Amount of Community contribution
 Start & end date of the project
 Following sentence: «The <name of the structure> has
been produced with the financial assistance of the IPA
Adriatic Cross-Border Cooperation 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
PUBLICITY AND VISIBILITY
SPECIFIC REQUIREMENTS FOR EQUIPMENT
Every single piece of equipment purchased
under the project must be labelled with a
sticker on a visible and accessible spot for at
least 5 years after the end of 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
PUBLICITY AND VISIBILITY
<Project Title (and/or Acronym) and code>
<if applicable the bookkeeping inventory number>

The project is co-funded by the European Union,
Instrument for Pre-Accession
Assistance.
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, audiovideo 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
EQUIPMENT

Refers to the purchase / rent / leasing 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 if not, must have
been agreed
by
the
Joint
Technical
Secretariat (JTS) /
Managing
Authority
(MA) and/or Joint Monitoring Committee
(JMC) beforehand
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


second hand equipment is ineligible
equipment that is NOT used exclusively
for project purposes can only be charged
to the project on a pro-rata basis (this
counts also with respect to depreciation
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 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
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 BiH 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
Purchase price is 100% eligible if (cont’d):
period
between purchase date until end of project is
shorter than the normal depreciation method but:
- equipment is used for the same purpose for
at least 5 years after project completion
- equipment is part of a specific goal of the
project (e.g. office furniture of goal of project is to establish
a bureau which will provide services for the target group
also after project completion)
Note: in these cases the Beneficiary needs to submit a
declaration
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
EXAMPLE CALCULATION OF ELIGIBLE COSTS OF
COMPUTER IN CASE OF DEPRECIATION
Purchase cost (a)
Depreciation period (b)
Monthly depreciation
cost (c=a/b)
No. of months reported
in PR (d)
Total eligible cost
(e=c*d)
KM 1,500
24 months
KM 62.50
6
KM 375.00 (to be
reported as €
191.73)
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
INVESTMENTS
Refers to small scale investments with a
demonstrated transnational impact and can
include costs related to construction works
(either from scratch or adaptation of
something existing i.e. renovation /
reconstruction or expansion) or the purchase
of land (up to a limit 10% of the total project
budget)
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
INVESTMENTS
SOME BASIC RULES



/
should not have been already financed by
other subsidies (EU, national or regional)
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 Joint Technical Secretariat (JTS)
Managing Authority (MA) and / or Joint
Monitoring Committee (JMC) beforehand
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
INVESTMENTS
TWO OPTIONS:
(i)
the construction will be used exclusively for
project purposes and will remain in use for at
least 5 years after project completion without
any substantial modification
Full cost of the construction is 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
INVESTMENTS
(ii) the construction will be not be used
exclusively for project purposes
Only share of the actual cost can be
allocated pro-rata to the project and this share
has to be calculated according to a fair, justified
and equitable 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
INVESTMENTS
PURCHASE OF LAND - 4 CONDITIONS:
 direct link between the land purchase and the
project’s objectives
 cost cannot exceed 10% of the total project budget
 certification
from an independent qualified
assessor or authorised official body confirming that
price does not exceed market value
 copy of draft sales contract showing that the land
is free of any burden (to be submitted before signing
the IPA Subsidy 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
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
Charges related to a bank account NOT
specifically opened for the purposes of the project
(e.g. where the Beneficiary has decided to use an
existing account) cannot be charged against this
budget line but should be reported under the
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
FINANCIAL CHARGES AND GUARANTEE COSTS
Eligible bank charges:
 periodical
fees
 costs
for cash dispenser management
 bank
statement/communication despatch costs
 costs
for closing the account
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
Thank you!
The project is co-funded by the European Union,
Instrument for Pre-Accession Assistance