Overview of Finance and
Reporting
Equality for Women
Measure 2010-2013
October 2011
Areas to be covered.
1) Roles & Responsibilities - Books & Records
2) Financial returns & Payment Stages
3) Second Instalment (35%) & Final Instalment 15%
4) Budget Changes – Flexibility levels
5) Public Procurement Requirements
6) Audit and Verification Key areas /weakness
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Pobal distributes funding on behalf of many
government departments using the same basic
system.
Dept Justice
And Equality
Pobal – EWM
Funds
EWM
Bank
Acc.
2
Position to date - Year 2.
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• Year 2 Budgets have been agreed and approved.
• Contract addendums up to April 2012 received.
• First Payment of 50% have been issued July/August.
• Second installment of 35% due October/November
2011 will be dependent meeting 50% spend threshold
of first payment by the end of September.
•
Final retrospective payment of 15% due in June/July
2012.
Roles & Responsibilities
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• Contract /Direct relationship exists between the
Grantee and Pobal in connection with reporting on the
grant.
• A nominated finance administrator in place to keep
your books and deal with the returns and any queries
• The Grantee must ensure that there is oversight of
the finances and returns to Pobal at Board Level.
• Grantees responsibility to ensure that Half Yearly
Returns and Drawdown are complete, accurate and
submitted in a timely manner.
Setting up or reviewing your
books and records.
• Set up your EWM books and records (or if
previously funded, review current systems) to
ensure that routinely undertaking the following
accounting functions
• Maintain a separate bank account.
• Maintain a payments journal clearly identifying
expenditure.
• Undertake monthly bank reconciliations; should be
kept on file.
• Group’s responsibility to monitor expenditure
against approved Budget.
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Finance Half Yearly Returns
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Section 5 of the guidelines.
• Returns to be completed and submitted to Pobal within
14 days of the period end.
• Half Yearly Return Template will be sent to you for
completion prior to 31st December
• Drawdown form is used to request funds in between half
year returns. i.e. September 30th 2011
• Total project expenditure should be reported. All
expenditure is governed by the ESF rules & regulations.
What to submit for the Half Year
Return.
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• Completed Return for the period with Declaration
Appropriately signed at Board Level.
• Total Project expenditure to be reported
• Payments Journal for the reporting period.
• Receipts and Lodgements Journal for period
• EWM Bank statements for the designated a/c for the full
reporting period
• Extracts only from relevant bank statements where
EWM expenditure has been paid out
• List of outstanding cheques and lodgements
Common Errors on Returns
• Reimbursements are not eligible expenditure.
Must show the expenditure where it is ultimately
paid out from. i.e. transferred out of other bank
a/c.
• Ensure the columns on Payments Journal clearly
match the Budget lines on Budget Template.
• Ensure that all salary claims show the name of the
relevant staff member.
• Include explanations for any deviations from
budget. i.e. Any over / under spends.
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Payment Stages
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Payments are made in instalments during the lifetime of
the grant. Section 5 of Guidelines.
First Payment 50% : Payment of 50% of the grant
Second Payment 35% : Payment of 35% made in 2011
- paid on receipt and approval of a Drawdown request showing
that at least 50% spend of the 1st payment has been reached.
Final Payment 15% : Retrospective Payment of 15% in 2012
- paid on the receipt of final financial return and end of year
monitoring report showing implementation of project
objectives and actions.
Second Payment of 35% must
be paid by the end of Nov. 2011
• 35% paid on receipt of a drawdown covering spend
for the period July to September 2011.
• Must meet 50% spend threshold of first instalment
example: Grant allocation
€45,000
first payment made (i.e. 50%)
€22,500
50% expected spend = €11,250
• Group’s responsibility to ensure that a complete &
accurate drawdown is submitted in time for the
payment to be issued by November.
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Second Payment of 35%
Important Points to note.
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• Payment must be made to groups prior to the year end
to avoid loss of funds.
• No guarantee that the 35% instalment will be available
in January 2012 to be drawn down.
• Tight Timeframe for issue of payments will not allow
finance to follow up on incomplete information.
• If you have difficulty with meeting the spend threshold
of 50% please alert your development officer.
Final 15% of the grant will be
paid retrospectively.
• Paid on receipt of a Final Financial return and the
end of Year 2 Monitoring report.
• Funds must be in place to cover the retrospective
payment until all documentation has been submitted
and verified.
• Group’s responsibility to ensure the bank account is
managed efficiently and does not go into an
overdrawn position.
• Details in relation to contract conclusion will be
provided by Pobal nearer the project end date.
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Budget Changes
Important Points to note.
See Section 4 of the guidelines.
Flexibility re budget changes.
• Budget changes can be made of up to :
- €500 on Programme Costs budget lines
- €200 on Administration budget lines
without seeking approval from Pobal.
• Anything above these levels requires prior written
approval from Pobal.
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Budget Changes.
Important Points to note cont’d.
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• There will be one opportunity during each project year
to formally request a change to the budget.
• The budget change ‘window’ for year 2 will be in
December 2011. Templates to be submitted with your
expenditure return.
• In April 2012 if exceptional changes are required then
at that stage submit revised budget templates and
detailed explanatory notes with revised apportionment
policy.
• Changes in excess of the agreed amounts must not
be implemented without the prior written approval
from Pobal.
Reporting schedule will look like this
Timeline:
Year 2

First payment; 50% of Year 2 Allocation

July/August 2011

Second payment; 35% of Year 2 Allocation

Based on Drawdown due in by 14th October 2011

December 2011 Financial return to be submitted;
To cover period 1st July – 31st December 2011

Due in by 20th January 2012

Request for Changes to Year 2 Budget to be
submitted

Due in by 20th January 2012

ESF/HCIOP Annual Progress Report for 2011 to
be submitted

Due in February 2012 (template will be issued in late
2011)

Final Year 2 Financial return to be submitted; To
cover period

Due in by 14th May 2012
1st January 2012 – 30th April 2012

End of Year 2 Monitoring report

Due in by 14th May 2012

End of Year 2 - 15% payment made
retrospectively

Payment made after approval of: Final Expenditure
return and End of Year 2 Monitoring Report
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Public Procurement
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Section 7.14 of Guidelines
• Adhere to Pobal’s /Dept of Finance Public Procurement
Requirements. Declaration now signed. Guidelines on
the website www.pobal e.g. value for money etc.
• Keep all original Quotes on–site.
Under €5,000 - One Quote
Between €5,000 and €50,000 – Three written quotes
These will be checked during Verification Team visits
Importance of Audit and
Verification.
Section 9 of Guidelines.
• Rights of Access
• Key Areas of a Verification Visit.
• Transparent audit trail (paper trail /direct link) from
your books and records to supporting documentation
and to reported expenditure.
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Possible Verification / Audit visit
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Section 9 Guidelines.
 Pobal is required to ensure that all grant monies paid to
beneficiaries has been spent and reported in accordance with the
grant approval.
 The Department of Justice and Equality, the Comptroller and
Auditor General, the European Court of Auditors and officials of
the European Commission all have right of access at all
reasonable times.
Key areas of a Verification Visit
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 Verifying the eligibility and the reality of returns submitted to Pobal
corresponding backup e.g. invoices, payroll records, public
procurement, ESF rules & regulations etc.
 Reviewing your internal controls, e.g.
- Internal financial procedures documents
- Electronic banking controls
- Board approvals
- Disclosure of interests
- Authorisation for payments – invoices stamped paid.
- Procedures for ordering goods/services, Cheque Requisitions.
- Insurance indemnifying Pobal , Department and EU
Commission.
Common Audit Issues/Weakness
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• Payments not supported by original invoices.
• Discrepancies between salaries claimed and
group’s payroll records.
• Claiming expenditure twice
• Participant details not maintained i.e. copies of
certificates awarded & participant lists.
• Income/Fees generated not netted off against
project expenditure.
• Timesheets not appropriately certified or
sufficiently detailed.
Other Audit Findings
• Public Procurement rules not adhered to
• Apportionment Policies not implemented
or sufficiently documented.
• Outstanding cheques not monitored.
• Back dating & Frontloading expenditure
• Internal Control risks – electronic
banking /EFT
• Internal Financial Procedures not
satisfactorily documented.
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Equality finance team contact
details are on the website.
• Any additional
questions?
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