Financial Management Practical Aspects_Anania
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8/14/2019 Financial Management Practical Aspects_Anania
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Speaker: Cristina Anania
Legal&Financial NCP
International Cooperation Department
Ministry of National Education
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Understanding of the financial rules is very important
A beneficiary should use the same cost basis in all
contracts with the Commission within FP7 and maintain
it for all its participation in FP7 Grants
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Read the financial rules
When financial monitoring will be done by the economic
department check if the European Commisson requirements are
correctly implemented (http://ec.europa.eu/research/participants/portal/page/fp7_documents )
Check twice the eligbility of any costs before commiting it
Do not perform other expenses than those propose in Grant
Preparation Form and approved in ECGA
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All the costs reported must be real not
estimated, they must be actually paid
Implement within your institution a monitoringsistem for all expendinture of the FP7 projects
(excel, access) = easier to report
Ensure periodic monitoring, preferably and
more easier to report = monthly monitoring
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...... If
you have doubts, questions or you need an
advice you can always contact the project
officer or the representative L&F NCP from your
country (http://www.cordis.europa.eu/fp7/get-support_en.html )
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..........to remember
Transfer of budget between activities and
beneficiaries is allowed without the need for an
amendment of the ECGA, a condition for this is
that the work be carried out as foreseen in Annex Ito ECGA
If the transfer has a significant impact on the DoW
(Annex I), an amendment is however needed
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............ATTENTIONThe coordinator should verify this on a case-
by-case basis, but in practical terms,
coordinators are encouraged, where a transfer
with a potential impact on the DoW arises
(most cases), to check this (i.e. by e-mail)with the Project Officer
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**For beneficiaries that are non profit public bodies, secondary and higher education establishments, researchorganizations and SMEs
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Estimation of eligible costs of the project must
be shown in detail in the provisional budget
included in the Grant Preparation Forms (GPF)and subsequently in the Description of Work
(Annex I to ECGA).
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In order to be considered for reimbursement,
costs incurred by the beneficiaries in the course
of the project, must satisfy the eligibility criterialaid down by the ECGA.
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The Commission which takes the final decision on
the nature and amount of the costs to be
considered eligible, either when analysing
proposals for the establishment of the estimated
budget to be annexed to the ECGA or when
examining financial statements for the purposes of
determining the EU contribution
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Essentially the forms are used to identify the
beneficiaries that will sign/accede to the grant
agreement, to determine the eligible costs and
Community contribution and to electronically
capture structured information on work
packages, efforts, milestones and deliverables.
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Milestones Deliverables
Efforts
Work Packages
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The project is divided into reporting periods of the following duration:
- P1: from month 1 to month X
- P2: from month X+1 to month Y
- P3: from month Y+1 to month Z
- (…)
- [final]: from month [N+1] to the last month of the project
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After 01/01/2013 = electronictransmission of Form C = thesubmission of paper forms isabolished
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Following the modification of the Grant Agreement adopted on 14.12.2012,
at the end of each reporting period, the Commission shall evaluate and
approve project reports and deliverables and disburse the corresponding
payments as follows:
for reporting periods ending before 31/12/2012 (including), within 105
days from the day
of receipt of project reports and deliverables.
for reporting periods ending as from 1/1/2013, within 90 days from the
day of receipt of project reports and deliverables.
The new time limit of 90 days applies to all grant agreements, includinggrants signed before 31/12/2012, for which the reporting period is due
after 1/1/2013.
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Accounting records
The accounting records include, among others:
Accounting entries:
- Accounting journal
- General ledger
- Cash book
- Inventory register
- Fixed assets register
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Other documents:
- Rules applied for depreciation
- Method of allocation of indirect costs
- Internal rules for reimbursement of travel
expenses
-
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PROJECT ACCOUNTS
Normally project accounts for FP7 projects aremanagement account codes allocated solely toindividual FP7 projects which are integrated inthe double entry accounting system of the
beneficiary
This integration with the double entry system
reduces the likelihood of double counting andmakes it easier to reconcile the costs with theaccounting records
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Thus the invoices (say for travel) which are
allocated to the project are posted via double entryto the individual project accounts, so that the travel
costs incurred for a particular project in a particular
period can be correctly identified
Other forms of recording project expenditure (e.g.
spreadsheets) are not considered as reliable as
management accounting directly linked to the
double-entry accounting system
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To be considered eligible costs must be
Determined according to the usual accounting
and management principles and practices of the
beneficiary identifiable and verifiable
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Costs must be determined according to the
applicable accounting rules of the country where
the beneficiary is established and "according to the
usual accounting and management principles and
practices of the beneficiary"
However, this principle is not absolute; it must be
considered together with the other eligibility
criteria, and therefore could not be invoked in order
to deviate from other provisions of the ECGA (e.g.
VAT)
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Supporting documents proving occurrence, the
bookkeeping and the payment of the costs by
the beneficiaries must be kept for all costs and
for up to five years after the end of the project.
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CONCLUSIONS:
Read and understand the financial rules for FP7
projects
Comply with both national and european legislationCollaborates with other departments within your
institution (especially financial and juridic
departments)
In case of doubt, ..............ASK
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Thank you for your attention
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