EU-TURKEY CHAMBER FORUM II GRANT SCHEME PROJECT FINANCIAL REPORTING 2 July 2013

This programme is co-financed by the European Union and the Republic of Turkey

1

EU-TURKEY CHAMBER FORUM II EU-TURKEY CHAMBER FORUM II GRANT SCHEME GRANT SCHEME

PROJECT FINANCIAL REPORTINGPROJECT FINANCIAL REPORTING

2 July 20132 July 2013

Burcu Atılgan-Grant ExpertBurcu Atılgan-Grant ExpertTOBB EU DepartmentTOBB EU Department


2

Content

• Project Documentation and Accountancy

• Reporting Requirements

• Monitoring and Support Activities


3

PROJECT PROJECT DOCUMENTATION AND DOCUMENTATION AND

ACCOUNTANCYACCOUNTANCY


4

DOCUMENTATION AND ACCOUNTANCYFinancial documentation

Expenditure Documents

All expenditure

Proof of purchase such as invoices and receipts

Proof of payment such as bank statements, debit notices, proof of settlement by the contractor

Proof of delivery of services such as approved reports, proof of attending seminars, conferences and training courses (including relevant documentation and material obtained, list of attendees, certificates), etc

The Beneficiary Accounting records (computerised or manual) such as general ledger, sub ledgers and payroll accounts, fixed assets registers and other relevant accounting information


5


Human Resources

CVs of all experts,Contracts, Staff and payroll records, Salary statements,Monthly time-sheets (prepared in detail, signed by the experts and the representative of the Grant Beneficiary) of all project staff, Bank statements/receipts for payments,Per diem ledgers.Board Decision if the staff of the Beneficiary and/or Partners assigned to the Action


6

Travel

Public transport: Transport tickets (including boarding passes in case of travel by air)

Rented transport: Invoice from supplier and summary list of distance covered

Car: For fuel and oil expenses, a summary list of the distance covered, the average fuel consumption of the vehicles used, fuel costs.



7


Expenditure Documents

Subcontracted supplies or services

Proof of procurement procedures such as tendering documents, bids from tenderers and evaluation reports, Proof of commitments such as contracts and order forms, Proof of receipt of goods such as delivery slips from suppliers, Certificate of origin, Pictures and/or video records of the events, Attendance sheets, etc.


8

Technical documentation

• Examples of project documents for some of the project activities.Surveys /studies • ReportsPublications • Copies of publicationsSeminars, conferences, working meetings • Programme • List of presentations / conference reports• Handouts• List of participants• List of speakers• Minutes (if applicable)• Press clippings• Feed-back questionnaires (if applicable)


9

• Technical documentationTraining • A detailed description of the training – training modules, training

hours per subject, methods, etc.• Training schedule• List of participants /Attendance sheets• List of trainers / lecturers• Feed-back questionnaires• Training evaluation reportExperts• Timesheets• Copies of the outputs • Activities reports


10

Accounting requirements Aappropriate accounting and double-entry book-

keeping system Accounts and expenditure should be • easily identifiable and verifiable separate

accounts for the action • a simple accounts ledger together with other

useful templates.


11

DOCUMENTATION AND ACCOUNTANCY

Accounting requirements

The Financial Report should be properly and easily reconciled to the Grant Beneficiaries accounting and bookkeeping system.


12

REPORTING REQUIREMENTS


13

REPORTS

•Final narrative and financial report •Expenditure verification report


14

FINAL NARRATIVE REPORT • Narrative section: Project activities/management,

participation of partners, relations with key stakeholders, visibility, progress on performance indicators, assessment of the project and notifications about minor contract changes and addenda

• Templates for the final narrative report is provided in

www.etcf.org.tr


15

FINAL NARRATIVE REPORT

• You should prepare the final report in 4 hard copies an 4 CD:

- 2 copies to SU

- 1 copy to EUD

- 1 copy for their records

• SU will send one copy of the reports to the CFCU

with a cover letter and the checklist


16

Within 1 month following the completion of the project the GB should send it to the SU for checks.

• Within 3 months following the completion of the project the report should reach the CFCU.


17

• Minor /major change requests and CFCU’s approval letters• Copy of the printed materials• Contracts (supply/service), invitation letters, tender offers

(applications), letters to unsuccessful tenderers, evaluation reports• Visibility material samples • “Performance Indicators Documents”• Training/conference/visit programmes, reports, participants list

(Annex3)• For the external experts -Training/conference reports, presentations,

surveys• Copy of the “transfer of title of equipments”( Ekipman Mülkiyet Devri

Belgesinin kopyası)(Before the approval of the notariate) (Annex 4)


18

FINAL FINANCIAL REPORT

•The bank letter indicating that no interest rate has been applied to the project account and account summary that indicates that the account covers only the project implementation period.

•“Project Expenditure Summary” and “Account Ledger”


19

Human Resources Expenditure List For every project expert: • CVs of all experts, • Contracts, • Staff and payroll records, • Salary statements, • Monthly time-sheets (prepared in detail, signed by the experts and the

representative of the Grant Beneficiary) of all project staff, • Bank statements/receipts for payments, • Per diem ledgers. • Board Decision if the staff of the Beneficiary and/or Partners assigned to the Action


20

Travel and perdiems Expenditure List • Transport tickets (including boarding passes in case of

travel by air)• Related with per diems: Hotel invoices or the copy of

the documents that indicates the round trip dates• The copy of the document indicating that the per diems

payments are made


21

Equipment Expenditures List

For every equipment in a separate dossier:

Invoice or the document that indicates the payment is

made to buy the equipment.

Certificate of the Origin, Contract, market survey document


22

Local Office Expenditure List

Copies of the invoices of vehicle costs, office rent, consumables - office supplies, other services (tel/fax, electricity/heating, maintenance), contract or payment document


23

Other costs, services expenditure list:

Expenditures documents (invoices and an explanation letter indicating the aim of the contract) for :

PublicationsSurveysExpenditure verificationTranslation serviceConference exp.Visibility actions


24

Expenditure Verification Report by

External Auditor


25

EXPENDITURE VERIFICATION REPORT

Consist of:

• TOR for an Expenditure Verification of a EC financed Grant Contract for External Actions- should be completed by the (Grant) Beneficiary and be agreed with the Auditor

Annex 1: Information about the Subject of the Expenditure Verification

Annex 2: Scope of Work – Procedures to be performed• 2. Report of Factual Findings for an Expenditure Verification of an

EC financed Grant Contract for External Actions-should be provided by the Auditor

The template can be found at www.etcf.org.tr


26

PAYMENT PROCEDURES

• Pre-financing: %80 of the sum is paid within 45 days of receipt of the Request for Payment (by CFCU)

• Final payment: CFCU’s 45 day approval procedure of the final narrative and financial reports, Expenditure Verification Report and the Request for Payment


27

MONITORING MONITORING AND SUPPORT AND SUPPORT

ACTIVITIESACTIVITIES


28

MONITORING FRAMEWORKMONITORING FRAMEWORK

In Procedures,• Compliance with procurement rules• Eligibility of costs• Compliance with publicity and visibility rules• Documentation and Archiving• Bookkeeping and Accountancy• Reporting obligations• Contract Modifications• Non-Compliances and IrregularitiesIn Progress,• Financial and Technical progress • Performance indicatorsand Problems And Needs of the beneficiaries


29

MONITORING FRAMEWORKMONITORING FRAMEWORK

Monitoring tools: Monitoring visits, declaration reports and final report.

Monitoring visits will be conducted by SU using checklists, monitoring reports etc.

SU experts will review and give advice on draft notification letters, addendum requests and final report.

Monitoring and/or Spot visits by CFCU


30

MONITORING RESPONSIBILITIES OF GBsMONITORING RESPONSIBILITIES OF GBs

To make key staff of project be present.To provide up-to-date informationTo define performance indicatorsTo define needsTo clarify major dates in procurementTo inform SU in case of unavailabilityTo archive all documents for 7 years


31

MONITORINGMONITORINGThe following information will be monitored by SU

• Project Management

• Adequacy of Documentation

• Progress of Activities

• Risks and Problems

• Project Indicators

• Procurement Matters and Records

• Visibility of the Project


32

Thank you for your attention

BURCU ATILGAN