Understand the New Lump Sum Budgeting
Impact on Financial Reporting
Overview of Changes:
The final report assessment of a lump-sum project focuses on outputs, quality, achievement of indicators, impact, and sustainability. Each work package is evaluated separately based on grant agreement criteria, and the overall project score is a weighted average of these scores. The budget payment percentage for each work package is calculated separately.
The Project Management Work Package is not scored, as it has no concrete outputs or specific indicators. Its results are reflected in the achievement levels of other work packages. The total project score (weighted average) indicates the overall quality of project management.
Each work package evaluation score contributes to the overall project score, calculated automatically as the weighted average of individual scores and budget shares, rounded to the nearest integer.
In the above example: WA = [(50*25)+(80*25)+(70*30)]/80 = 66,875 => 67
Scoring and Funding Implications:
- Based on the overall project score, a proportionate reduction may be applied to the whole grant, in accordance with a standard scale.
- Projects scoring below 70 face funding reductions, while those scoring 70+ receive full funding for most WPs.
- If the overall project score is sufficient (i.e. higher than 70), but the score of one or more work packages is not sufficient (i.e. lower than 70), a specific grant reduction shall be applied only to those work packages, based on the same scale.
- The management WP is not directly scored. The total project score (weighted average) indicates the overall quality of project management.
Adhering to these rules requires meticulous organisation and documentation, which the Task File simplifies.
Learn to Set Up the Budget Tab in the Task File Part 1
This unit guides you through the initial setup of the Budget tab in your Task File, covering budget summary transfer, payment scheme definition, payment tracking, staff category identification, and partner-specific rate configuration.
1. Transfer Budget Summary
Go to the Budget Summary in your application and transfer the numbers into the first table in the BUDGET tab. These numbers should exactly match your approved application budget, showing the distribution per partner and work package.
2. Enter Payment Scheme
Enter your chosen payment scheme (e.g., 40/40/20). This typically follows the partnership agreement and considers pre-financing needs of partners. The standard structure is: First payment: 40% Second payment: 40% Final payment: 20%
3. Mark Completed Payments
When you make a payment, tick the checkbox and the cells will automatically turn green. This provides a clear visual tracker of completed payments and helps monitor financial progress.
4. Review Staff Categories
Check in your project how many categories of staff you have. The information is in the WP's budget box. Possible categories include: Manager Researcher/Teacher/Trainer Technical staff Administrative staff
5. Setup Tab Configuration
Go to the SETUP tab and enter the data per partner and category. Input the specific daily rates for each staff category per partner based on your approved application.
Learn to Set Up the Budget Tab in the Task File Part 2
6. Hide Unused Categories
Hide the categories of staff you don't have in your project. This simplifies the view and reduces potential confusion. Only keep visible the categories that are actively used in your project.
7. Enter Working Days
Fill in the yellow part with the mandays per partner/WP in the respective category. These numbers should match your application's approved amounts.
8. Reference Working Days
The information for the mandays per partner per WP is in the budget sections of each of the WPs of your application. Use these as your reference point when filling in the data.
9. Set Reporting Periods
At the end, you have to fill in the reporting period for each of the reports. This typically follows a six-month cycle, but can be adjusted based on your project's needs.
10. Configure Document Requirements
Color code the document requirements: Blue: Documents not required for this period Yellow: Documents partners need to provide This helps partners quickly identify what documentation they need to submit
How It Works
The budget system operates through a streamlined process where partners input their data, automatic calculations are performed, comprehensive reports are generated, and information is integrated across multiple tables with visual indicators for monitoring.
Partner Input Process
All partners fill in their information for the reporting period that the applicant has set. This includes costs for:
- Management
- Project meetings
- LTTAs
- Mobilities
- Multiplier events
- Mandays spent per category and per WP
Automatic Calculations
When the information is provided by the partners, the table automatically performs all calculations. No manual calculation is needed from partners or coordinators.
Report Calculations
At the end of the table for the corresponding report, you have automatic calculations for:
- The whole report by partner
- Total amounts
- Budget utilization percentages
Data Integration
The data entered in each report automatically transfers to:
- "Spent budget" table
- "Working days & Budget per WP/Partner" table Both tables include color coding functions for easy monitoring.
Color-Coded Features and Automation for Efficient Financial Management
The Budget Tab combines color-coded indicators, automation, and integrated data tracking to simplify financial management, improve accuracy, and provide real-time oversight across work packages and partners.
Colour Coding
- The system uses intuitive colour coding to signal financial states:
- Green: On track or completed.
- Yellow: Requires attention.
- Pink: Indicates discrepancies or overspending.
Automation: Pre-built formulas and calculations in the Task File remove the need for manual computations, reducing errors and saving time.
Tracking Across Reports: Data from individual reports is consolidated, allowing for an at-a-glance view of spending and remaining budgets by WPs.
Benefits of Using the Budget Tab
Streamlined Financial Management:
- By consolidating all budget-related data in one place, the Budget Tab simplifies tracking and ensures transparency among partners.
Improved Accuracy:
- Automation reduces the risk of manual errors, ensuring reliable financial reporting and compliance with National Agency requirements.
Real-Time Oversight:
- Coordinators can monitor spending across all WPs and partners instantly, identifying issues early to maintain financial health.
Compliance Ready:
- The structured data format and visual indicators make it easy to prepare for audits and evaluations.
Checklist Tab for Audits
The Checklist Tab offers a comprehensive system for tracking and organizing audit-related documentation, featuring document status indicators and direct storage access to ensure compliance throughout the project lifecycle.
Purpose:
- The Checklist Tab is designed to simplify document tracking for audits, ensuring that all necessary paperwork is both collected and properly organised throughout the project's lifecycle.
- By providing a clear overview of required documentation, it minimises the risk of missing critical files during evaluations.
Functionality:
- Mark Missing Documents:
The tab includes dropdown menus to indicate which documents are missing or need follow-up. Examples include:
- Invoices: For project expenses like travel or event organisation.
- Signatures: From participants or attendees of project activities.
- Evaluation Reports: Detailing outcomes of workshops, events, or training sessions.
- Direct Links to Storage Folders:
Coordinators can link to specific storage folders for each type of document, enabling quick access during audits or internal reviews.
