EC payments, reports and audits Horizon 2020 Legal and finance training 2nd 3rd November 2015
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1 EC payments, reports and audits Horizon 2020 Legal and finance training 2nd 3rd November 2015 Melanie Büscher DASTI, NCP Academy Partner
2 Or in other words how much bureaucracy is there really?? And when do I get my money.
3 EC payments
4 Payments - Terminology Pre-financing Interim payment(s) Payment of the balance Article 21 GA (Payments and payment arrangements) Distributed by the coordinator
5 Cash Flow Prefinancing 1. report 1.payment payment of balance 1. periode 2. periode 3. periode
6 Guarantee Fund Guarantee Fund belongs to the beneficiaries who have to contribute to it it is a separate bank account managed by the Commission protects against financial losses due to defaulting beneficiaries
7 Guarantee Fund how? 5% of total EU contribution per project go to and come back at the end. In the mean time, they generate interest which can be used for projects in trouble
8 Reporting Internal reporting Continuous reporting Periodic reporting Final reporting Article 20 GA (Reporting) Participant Portal (PP) To be delivered by the coordinator
9 Reporting Why but why? Checking project progress against work plan Checking adequacy of resources used Checking eligibility of costs Data gathering for key programme indicators (publications, patents, innovations, gender, socio-economic impact, ) And to give you your money
10 Reporting schedule Periodic Final
11 Periodic reporting Two parts to be completed: Periodic technical report contains: Explanation of the work, overview of the progress, summary for publication, questionnaire Periodic financial report contains: Individual financial statement (Annex 4), an explanation on the use of resources, Periodic summary financial statement (= request for interim payment) Must be submitted within 60 days after the end of a reporting period!
12 Individual Financial Statement
13 Individual Financial Statement filled out by each beneficiary individually via Participant Portal shows costs per budget category all costs (even if more than budgetted with)
14 Final reporting Two parts to be completed: Final technical report Final financial report Final summary report and (if relevant) a Certificates on the financial statements (Annex 5) Must be submitted within 60 days after the end of a project!
15 Who is going to check?
16 Audits - Terminology Checks Reviews 1 st level audit = Certificate on the financial statement (CFS) Certificate on the methodology 2 nd level audit = external audits of the COM Investigation by OLAF Checks and audits by the European Court of Auditors H2020 audit strategy: Fewer Certificates on Financial Statements and fewer but targeted audits
17 Checks The most common form of control Any aspect of the project Usually performed by the project officer Usually remote Example: After receiving the report COM checks explanation of the work carried out, overview of the progress, explanation of the use of resources,
18 Reviews In-depth examination of the progress of the action Focused on technical and scientific aspects COM usually uses independent external experts Up to two years after the payment of the balance May include on-the-spot visit Example: Assessment of the degree to which the work plan has been carried out and whether all deliverables were complete
19 Certificates on the Financial Statement
20 1 st Level audit: Certificate on the Financial Statement Certifying that costs claimed under a project by respective beneficiary meet the eligibility requirements established by the Grant Agreement Issued by the competent auditor Agreed upon procedure (Annex 5 GA) Factual findings report Drafted in the language of the GA To be submitted with the final financial report
21 CFS: Eligible auditors External auditor (usually) chosen by the beneficiary Independent from the beneficiary Qualified to carry out statutory audits of accounting documents (in accordance with national legislation implementing the Directive on statutory audits of annual accounts and consolidated accounts) Beneficiary is free to choose the external auditor Independent public officer Specific case for public bodies
22 Next level: EU audit
23 Examination on site Source: EC
24 L/F NCPs always have the EU Auditor in mind when advising clients
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