FINANCIAL UPDATE Report to partners on financial/administrative project features
PRESENTATION SUMMARY 1. MAIN FINANCIAL CHANGES NEEDED BY THE PROJECT 2. MAJOR CHANGE 3. PR 5 4. SECOND LEVEL CONTROL
MMOVE financial analysis: latest steps
PRESENTATION SUMMARY 1. MAIN FINANCIAL CHANGES NEEDED BY THE PROJECT 2. MAJOR CHANGE 3. PR 5 4. SECOND LEVEL CONTROL
FINANCIAL ALLOCATIONS: CHANGES
Abolition of shared costs Every partner budget has been reduced
• ERDF has been considered as fixed variable – the total changes accordingly Budget item
Initial amount ERDF 75% (total)
ERDF 85%
ERDF
Communication plan
12.000,00
6.000,00
3.400,00
9.400,00
Website design / maintenance; translation of toolbox in html Promotional material Design & print) Project video
30.000,00
15.000,00
8.500,00
23.500,00
13.500,00
6.750,00
3.825,00
10.575,00
12.000,00
6.000,00
3.400,00
9.400,00
67.500,00
33.750,00
19.125,00
52.875,00
TOTAL
• Total value attributed to Volos Euro 62.205,88
Budget item Final event
Budget item External evaluator
Initial amount (total) 35.000,00
ERDF 75%
ERDF 85%
17.500,00
Initial amount (total) 27.000,00
ERDF
9.916,66
ERDF 75%
27.416,65
ERDF 85% 13.500,00
ERDF 7.650,00
21.150,00
Cp3 coordination change
CP 3 toolbox definition KAVALA ( proposed option in Nov 2010) accepted responsibility for toolbox definition – Beware of very short notice for procurement procedures – Procurement should start as soon as the new budget is formally accepted
Control of PPs spending capacity • Implemented by sending a clear analysis of the budget still to be spent to each PP with the request to review it and ask for possible changes • P12 had claimed very little sofar- specific request to review their spending capacity • Forecast a budget reduction of € 14.034,08 ( ERDF € 11.928,97) due to limited possibility of claiming staff costs
to be agreed how it will be allocated
Other changes Other minor shifts have been considered (needed by PP for the project smooth management) among these: 1) 2) 3)
4)
facilitation of SC and SV events ( hospitality costs); review of travel expenditures based on actual rates; analysis of EE and staff costs (i.e. not all personnel assigned to the project has been certified as staff. existing contracts with individuals have been considered as EE rather than staff) ‌.many other justifications!!!!
We are happy to say that: All partners have understood the need to review and better design their budget allocation (each one has submitted at least two reviews) All requests have been processed and accepted!!!
BUT….. In order to draft the proposal of major change…..partners MUST decide rapidly How we should we allocate the underspending of 14.000 euros (equal to a ERDF value of € 11.928,9)? • to be agreed in Volos • We present one possible solution
Possible re-allocation
PRESENTATION SUMMARY 1. MAIN FINANCIAL CHANGES NEEDED BY THE PROJECT 2. MAJOR CHANGE 3. PR 5 4. SECOND LEVEL CONTROL
Following all the above mentioned changes the LP has redesigned the main project budget considering the respect of the rules set in the programme manual: – Changes within the limit of 20% of the total project value – CP1<= 20% – EE<= 50%
In the eyes of the JTS the overall picture is analyzed
New budget per component / item NEW BUDGET ALLOCATION AFTER MAJOR CHANGE
PA
CP1
Preparation activities
CP2
managemnt and coordination
CP3
Commincation and dissemination
Exchange f Experiences
TOTAL per budget line
EUR
DELTA
Changes percentages
20% margin permitted
%
Staff
6.659,47
187.220,75
77.272,93
0,00
6.274,86
2.053,75
0,00
29.343,53
26.135,00
1.358,64
145.303,36
230.133,41
0,00
1.500,00
0,00
425.618,75 696.771,90
37,63% -27.249,33
-4%
371.864,25
-8.436,59
-45%
371.864,25
157.994,91 213.473,44
11,53% -40.786,56
-16%
371.864,25
552.416,53 929.211,94
50,19%
79.111,94
9%
371.864,25
0,08% -10.500,00
-88%
371.864,25
Administration
2.174,80
10.503,41
0,57%
Travel and accommodation External expertise and services (see 4.3) Equipment (see 4.4)
0,00
1.500,00
Sub-projects
0,00 0,00% 1.851.460,6 1.138.204,99 9 100,00%
8.018,11
369.642,50
335.595,09
0,43%
19,96%
18,13%
61,48%
100,00%
delta
-14.847,08
14.151,43
-38.200,92
31.036,02
-7.860,54
20% margin of flexibility permitted
371.864,25
371.864,25
371.864,25
371.864,25
-65%
4%
-10%
3%
TOTAL per CP
EUR %
changes percenta ges
0%
-7.860,54
New budget per partner TOTAL initial BUDGET
TOTAL NEW BUDGET
ERDF
ERDF
REGGIO
507.726,73
€ 380.795,05
€ 588.610,52
€ 441.457,89
REG.MARCHE
€ 62.697,98
€ 47.023,49
€ 62.658,38
€ 46.993,79
B&H
124.661,82
€ 93.496,37
€ 110.870,16
GIRONA
130.868,05
€ 98.151,04
MOLNDAL
119.965,83
VARBERG
DELTA ON % TOTAL BUDGET change DELTA ON ERDF € 80.883,79 15,93% -0,06%
-29,70
€ 83.152,62
-€ 13.791,66 -11,06%
-10.343,75
€ 120.076,40
€ 90.057,30
-€ 10.791,65
-8,25%
-8.093,74
€ 89.974,37
€ 109.174,17
€ 81.880,63
-€ 10.791,66
-9,00%
-8.093,75
125.015,83
€ 93.761,87
€ 111.224,17
€ 83.418,13
-€ 13.791,66 -11,03%
-10.343,75
ULM
123.789,83
€ 92.842,37
€ 112.998,17
€ 84.748,63
-€ 10.791,66
VOLOS
117.911,83
€ 100.225,06
€ 172.767,23
RAZLOG
105.751,83
€ 89.889,06
KAVALA
105.751,83
BRASOV SVIM
TOTAL
-€ 39,60
60.662,84
-8,72%
-8.093,75
€ 146.852,15
€ 54.855,40 46,52%
46.627,09
€ 94.960,17
€ 80.716,14
-€ 10.791,66 -10,20%
-9.172,91
€ 89.889,06
€ 145.170,73
€ 123.395,12
€ 39.418,90 37,27%
33.506,07
105.751,83
€ 89.889,06
€ 80.926,09
€ 68.787,17
-€ 24.825,75 -23,48%
-21.101,88
229.427,84
€ 172.070,88
€ 142.024,50
€ 106.518,38
-€ 87.403,34 -38,10%
-65.552,51
1.859.321,23 € 1.438.007,65 1.851.460,69 € 1.437.977,94
-€ 7.860,55
-29,72
MAJOR CHANGE REQUEST • First concirn of financial officers: to verify if sem 5 allowed claimig within the set flexibility limits or required the presentation of a substantial change) Possible shift of major change to sem 6 !!! • Definition of new budget (Jan 2011) • Request for major change form (end Jan 2011 • Meeting in Lille (23rd Feb 2011)
MAJOR CHANGE ELEMENTS It includes request for three different kind of substantial changes: a. The new budget allocation b. The request for project extension c. The change of one partner
â&#x20AC;˘ Validity from sem 6 onwards â&#x20AC;˘ It includes a request for change form (justifying the need for change) + revised AF (will be changed only in the Budget part / duration / coordinator of CP3 / new partner)
New budget allocation: JTS Comments (1) JTS confirms that the new budget seems in line with possible changes Main remark : levels of EE are considered quite high. ď&#x192;ź ď&#x192;ź
The set limit to EE of 50% has been slightly exceeded : at present we are at 50,19%. It needs to be duly justified in order to be accepted (prove that this amount is necessary , clearly explaining how it is composed)
We need strong collaboration from all PPs to highlight how the EE is used
New budget allocation: JTS Comments (2) Clear description is to be provided: • Through the new Application form – section details of EE in order to fill in this part all partners should clarify how they will use the EE available in their budget ( eg. in some cases partners have an allocation for EE on CP1 Nevertheless do not have Ext Consultants - How will this be used? ) • Through an annexed word document illustrating EE • Through the excel spread sheet analyzing the situation of each partner.
New budget allocation: JTS Comments (3) Beware!! Timing on the presentation of the major change request depends on the time that each partner will require to provide the explanations Provide details within one week We need strong collaboration from all PPs to highlight how the EE is used
New budget allocation: JTS Comments (3) LP P8 ( or new P14) and P11 need to provide new cofinancing statements . Timing on the presentation of the major change request depends on the time that each partner will require to provide the statement
Project extension: JTS Comments • JTS can not say it will accept it but has understood the need ( and the problems connected to Cp3 coordination) • Must be duly justified • Suggestion to ask for 3 months extension ( this is the set maximum extension they allow): the project would end Jan 2012 PLEASE NOTE!!!! Even though the project is extended payments should be done by Dec 2012 & possible the FLC already contacted
Partner change: JTS Comments • LP has been informed that DEMEKAV has ceased its activities. Its European project branch has been given to ANEVO a new development company established by the Municipality of Volos. (it is a body governed by public law). • Between DEMEKAV and ANEVO there is a continuation in their status • ANEVO needs to fill in the new partnership statement • This new agency will sign a cofinancing statement based on the new major change
Timing on the presentation of the major change request depends on the time that the new partner will require to provide the details
PRESENTATION SUMMARY 1. MAIN FINANCIAL CHANGES NEEDED BY THE PROJECT 2. MAJOR CHANGE 3. PR 5 4. SECOND LEVEL CONTROL
Progress report 5 : forecast 1. Based on Project partner’s forecast, the estimated level of expenditure amounts to € 310.272,45 2. In the previous progress report the total paid and confirmed expenditure amount was € 234.740,37. 3. Overall the project has spent € 888.251,76 (47,77% of the total budget) – PROBLEM!!!
Total expenditure in PR5 shows thatâ&#x20AC;Ś Total budget
Previous reports
Current report
accumulated %
1.859.321,23
577.949,11
310.272,45
887.802,43
47,75%
Final Claim and flexibility rule REPORTED EXPENDITURE TO 31/12/2010 PA
CP1
Preparation activities
CP2
managemnt and coordination
CP3
Commincation and dissemination
Exchange f Experiences
TOTAL per budget line EUR
Staff
External expertise and services (see 4.3)
125.384,52
52.902,50
220.323,2 1
405.269,70
0,46 %
-318.751,53
0,00
1.997,27
1.736,64
1.698,20
5.432,11
0,01 %
-13.507,89 -148.046,73
0,00
9.823,40
4.069,64
92.320,23
106.213,27
0,12 %
1.358,64
117.538,24
72.805,60
179.184,9 3
370.887,41
0,42 %
-479.212,59
0,00
0,00
0,00
0,00
0,00 %
-12.000,00
0,00
0,00 % 100 %
Equipment (see 4.4) Sub-projects
TOTAL per CP
EUR %
%
6.659,47 Administration Travel and accommodation
DELTA (REMAINING )
8.018,11
254.743,43
131.514,38
493.526,5 7
887.802,49
0,01 %
0,29 %
0,15 %
0,56 %
100 %
Analysis of claims per partner TOTAL BUDGET REGGIO 507.726,73 REG.M ARCHE 62.697,98 B&H 124.661,82 GIRONA 130.868,05 M OLNDAL 119.965,83 VARBERG 125.015,83 ULM 123.789,83 VOLOS 117.911,83 RAZLOG 105.751,83 KAVALA 105.751,83 BRASOV 105.751,83 SVIM 229.427,84
TOTAL
1.859.321,23
PREVIOUS EXPD. from 1-07REPORTS 2010 to 31-12(to 30-06-2010) 2010 ACCUM ULATED % SPENT 204.455,32 115.819,62 320.274,94 60.554,28 1.769,10 62.323,38 36.008,95 17.435,33 53.444,28 33.835,87 17.867,85 51.703,72 31.148,65 9.433,78 40.582,43 36.180,53 14.200,43 50.380,96 38.643,45 12.827,34 51.470,79 75.924,75 27.723,29 103.648,04 16.896,17 33.790,82 50.686,99 38.953,00 9.634,64 48.587,64 5.348,14 5.419,53 10.767,67 43.931,59 43.931,59
577.949,11
309.853,32
887.802,43
REM AINING 63,08% 187.451,79 99,40% 374,60 42,87% 71.217,54 39,51% 79.164,33 33,83% 79.383,40 40,30% 74.634,87 41,58% 72.319,04 87,90% 14.263,79 47,93% 55.064,84 45,94% 57.164,19 10,18% 94.984,16 19,15% 185.496,25 971.518,80 47,75%
Sem 5 spending capacity SPENDINGCAPACITY BYCP DATAFROM PROGRESSREPORT5 TEMPLATE PERCENTAGESCALCULATEDONINITIALGIVENBUDGET
REGGIO REG.MARCHE B&H GIRONA MOLNDAL VARBERG ULM VOLOS RAZLOG KAVALA BRASOV SVIM
TOTAL
CP1 claimed % 137.595,87 13.120,79 17.003,28 12.482,55 11.213,54 8.840,22 25.561,92 8.901,83 7.228,88 8.118,64 2.612,49 2.063,42
254.743,43
CP2 claimed % 85% 57.876,26 50% 1.620,32 108% 501,14 46% 9.911,45 46% 5.367,91 53% 6.617,28 100% 2.330,26 35% 34.095,10 50% 2.012,33 56% 9.582,75 18% 390,28 15% 1.209,30
51% 131.514,38
CP3 claimed % 42% 117.867,39 7% 47.582,27 2% 35.939,88 41% 28.227,04 22% 24.000,99 28% 34.923,47 10% 23.578,61 147% 60.651,11 9% 41.445,79 41% 30.886,25 2% 7.764,90 5% 40.658,87
27% 493.526,57
62% 20% 43% 36% 33% 41% 32% 76% 61% 45% 11% 21%
37%
Highlights on spending capacity • Each partner should analyze it’s own capacity of spending • Each partner has been given a detailed analysis of the remaining budget and has been asked to validate the capacity of spending the money in line with the given allocation • The major change request should allow all partners to have properly allocated their remaining budget
Initial Forecast for semester 5 Partner
Payments forecast SEM5 (*subsidy contract)
Reggio
90.186,50
Marche Region
51.939,57
Brighton
22.164,87
Girona
23.268,34
Molndal
21.329,82
Varberg
22.227,81
Ulm
22.009,83
Volos
20.964,72
Razlog
18.802,68
Kavala
18.802,68
Brasov
18.802,68
Total reported expenditure
330.500,00
Underspending on sem 5 • Claimed euro 310.271,45 • Expected euro 330.500,00 • Capacity of claiming 93,75% this semester with reference to the sem 5 initial forecast • We are catching up with the underspending but we are not performing well!!! • Overall the claim represents only 79,50% of the forecast
Partner
Payment Forecast SEM5 (*subsidy contract)
Reggio
90.186,50
Marche Region
51.939,97
Brighton
22.164,87
Girona
23.268,34
Molndal
21.329,92
Varberg
22.227,81
Ulm
22.009,83
Volos
20.964,72
Razlog
18.802,68
Kavala
18.802,68
Brasov
18.802,68
Total reported expenditure
330.500,00
It is relevant to remind the following details:
Cumulated claim Specificati on
TOTAL BUDGET
PREVIOU S REPORTS
CURRENT REPORT
ACCUMUL ATED
%
REMAININ G
STAFF
724.021,23
256.935,06
148.334,60
405.269,66
55,97%
318.751,57
ADMIN.
18.940,00
3.879,15
1.552,96
5.432,11
28,68%
13.507,89
TRAVEL
254.260,00
78.608,59
27.604,11
106.212,70
41,77%
148.046,76
370.887,42
43,63%
479.212,58
0
0%
12.000
EXT.EXP. 850.100,00 238.526,31 132.361.11 EQUIPM ENT
12.000,00
0
0
Common mistakes • • • • •
The numbers of the control confirmations of some partners wrongly numbered; The partner control confirmation doesn’t correspond to the template; No explanation to how conterbalance the underspending /overspending . No explanation of deviation for items which were not planned Not much detailed explanation of the correction of expenses made by the FLC.
PRESENTATION SUMMARY 1. MAIN FINANCIAL CHANGES NEEDED BY THE PROJECT 2. MAJOR CHANGE 3. PR 5 4. SECOND LEVEL CONTROL
Second level control (1) MMOVE has been randomly selected to undergo a second level control • LP and P10 Razlog will receive the programme consultants for an on site second level audit • LP audited on claim PR3 • P10 audited on Claim PR2+PR3 Auditing consultants : Ernst & Young Paris They will implement the on site control through their country offices Two / three days on site contol to review the correctness of the PR
Second level control (2) Auditing consultants : Ernst & Young - Paris They will check:
Official project document + relevant correspondence Original invoices Procurement contracts / procedures Staff costs calculation Over heads calculation
Second level control (3) Partners experiencing the control should: 1. Organize their files in the most logic and easily readable way 2. Advise all departments within the municipality of the audit given that they could be asked to provide further details 3. Provide the controllers with the facilities requested 4. Participate to the initial session and the final briefing 5. Facilitate contact with FLC 6. Be ready to reply to the consultants remarks 7. Be patient / proactive in the contact with the controllers
GOOD LUCK TO ALL OF US!!!!
Timetable of the Main Next Financial steps
Timeline for the 20% budget reallocation Action
Deadline
1. MAJOR CHANGE - each partner should send to the LP details on EE
March 10th
2. MAJOR CHANGE – new cofinancing statements collected
March 10th
3. MAJOR CHANGE – P14 fills in all requests for details
March 10th
4. MAJOR CHANGE – request filled in and submitted .
March 14th
Timeline for PR5 – financial part Action
Deadline
6. PR5 – all forecast ( presented exp list) are sent to the LP
Immediatly! ( we are still laking many exp list!!) – March 7°
7. PR5 – all certificates are sent to the LP
Only 4 certified copies have been received March 15th (at the latest!)
8. PR5 –LP reviews all expenditures with its own FLC
Between March 15° - April 1°
Please remember â&#x20AC;Ś. That Sara Manfredini together with Serena Foracchia are substituting Pamela as financial officer. You should continue to address all your questions to: mmove.finance@municipio.re.it and we are both available to schedule skype meetings to provide one to one assistance to your fianncial management!!! TANK YOU !!!!!