Part-financed by the European Union

Cost sharing

Joint Technical Secretariat

Information Seminar for Latvian Project PartnersRiga, 29 April 2009

2Information Seminar for Latvian Project Partners, Riga, 29 April 2009

Content

• Definition

• Procedure and documents

3Information Seminar for Latvian Project Partners, Riga, 29 April 2009

Definition

• Dividing part of total expenditure between > 2 project partners

• Transparent and equitable method

• Joint activities benefiting several project partners

• Actors:– Implementing partner (ImP)

– Paying partner (PayP)

– Lead partner (LP)

• Not contracting between project partners against invoices!!

+ First level controllers

4Information Seminar for Latvian Project Partners, Riga, 29 April 2009

Procedure

1. Cost sharing agreement

2. Project data form

3. Optional: Advance payment

4. Realisation of activities

5. Payment and accounting

6. Settlement

7. Reporting

5Information Seminar for Latvian Project Partners, Riga, 29 April 2009

Procedure

1. Cost sharing agreement

2. Project data form

3. Optional: Advance payment

4. Realisation of activities

5. Payment and accounting

6. Settlement

7. Reporting

6Information Seminar for Latvian Project Partners, Riga, 29 April 2009

1 Cost sharing relations

Implementingpartner

Payingpartner

1

Payingpartner

2

Payingpartner

n

Lead partner

Information

Cost sharing agreement

7Information Seminar for Latvian Project Partners, Riga, 29 April 2009

Procedure

1. Cost sharing agreement

2. Project data form

3. Optional: Advance payment

4. Realisation of activities

5. Payment and accounting

6. Settlement

7. Reporting

8Information Seminar for Latvian Project Partners, Riga, 29 April 2009

2. Project data form

• Partner shares to be included in partner budgets

• Indication of cost sharing for BLs 2 and 4

1 2 3 4 5 6 71

Value of the contract

Project co-ordination 100,000.00

1

External service corresponding WP Cost sharing

Contracting partner

9Information Seminar for Latvian Project Partners, Riga, 29 April 2009

Procedure

1. Cost sharing agreement

2. Project data form

3. Optional: Advance payment

4. Realisation of activities

5. Payment and accounting

6. Settlement

7. Reporting

10Information Seminar for Latvian Project Partners, Riga, 29 April 2009

3. Advance payment

• Optional

a) Implementing partner submits advance payment invoice

b) Paying partner makes advance payment

Implementingpartner

Paying partner

(a) Invoice

(b) Payment

11Information Seminar for Latvian Project Partners, Riga, 29 April 2009

Procedure

1. Cost sharing agreement

2. Project data form

3. Optional: Advance payment

4. Realisation of activities

5. Payment and accounting

6. Settlement

7. Reporting

12Information Seminar for Latvian Project Partners, Riga, 29 April 2009

4. Realisation of activities

• Contracting all external suppliers, and/or carrying out own work

• Ensuring compliance with eligibility rules

Implementingpartner

e.g. Project Manager

Employment contract

e.g. External researcher

Service contract

etc.

13Information Seminar for Latvian Project Partners, Riga, 29 April 2009

Procedure

1. Cost sharing agreement

2. Project data form

3. Optional: Advance payment

4. Realisation of activities

5. Payment and accounting

6. Settlement

7. Reporting

14Information Seminar for Latvian Project Partners, Riga, 29 April 2009

5a. Paying and accounting all expenditure

Implementingpartner

e.g. External researcher

(a) Invoice

(b) Payment

Accounting

15Information Seminar for Latvian Project Partners, Riga, 29 April 2009

5b. Overviews and validation

• Cost sharing overviews for LP and Paying partners

• Validation of expenditure by first level controller

17Information Seminar for Latvian Project Partners, Riga, 29 April 2009

Procedure

1. Cost sharing agreement

2. Project data form

3. Optional: Advance payment

4. Realisation of activities

5. Payment and accounting

6. Settlement

7. Reporting

18Information Seminar for Latvian Project Partners, Riga, 29 April 2009

6. Settlement of shared costs

• Different ways of payment of costs by Paying partners

a. Direct payment

b. Deduction from grant re-imbursement

c. Advance payment

23Information Seminar for Latvian Project Partners, Riga, 29 April 2009

Procedure

1. Cost sharing agreement

2. Project data form

3. Optional: Advance payment

4. Realisation of activities

5. Payment and accounting

6. Settlement

7. Reporting

24Information Seminar for Latvian Project Partners, Riga, 29 April 2009

7. Reporting procedure

a) Implementing partner submits cost sharing overview to LP

b) Partners submit partner reports: WITHOUT cost shares!

c) Progress report: LP adds cost shares to each partner’s expenditure

Risk of double-reporting!

25Information Seminar for Latvian Project Partners, Riga, 29 April 2009

7. Partner reporting

Implementingpartner

Lead Partner

(b) Partner report without cost shares

Payingpartner

(b) Partner report without cost shares

(a) OverviewFLC

validation

FLC validation

26Information Seminar for Latvian Project Partners, Riga, 29 April 2009

7. Project reporting and grant payment

Lead Partner

Programme

(c) Project progress report including all

cost shares

(d) Grant

Implementingpartner

Payingpartner

Part-financed by the European Union

Cost sharing

Rostislav ZatloukalAdviser for Audit and Control, Joint Technical Secretariat

Information Seminar for Latvian Project PartnersRiga, 29 April 2009