Chapter 2: Mastering the Reporting Process
Continuous vs. Periodic Reporting: Understanding the Difference
EU-funded projects involve two primary types of reporting: continuous and periodic. Understanding the differences between these reporting types is crucial for effective project management and compliance with grant agreement requirements.
1. Continuous Reporting: This type of reporting is ongoing throughout the project lifecycle and is managed through the European Commission's project management platform, SyGMa (System for Grant Management). It includes:
- Submission of deliverables
- Updates on researchers involved in the project
- Communication and dissemination activities
- Project results and achievements
Best Practice: Consult the SyGMa platform at the beginning of your project to familiarize yourself with the new sections and information requested for Horizon Europe projects.
2. Periodic Reporting: Periodic reporting typically occurs every 12-18 months and provides comprehensive technical and financial overviews. It consists of:
- Technical reports describing the work carried out during the reporting period
- Detailed financial statements
- Explanation of work performed and progress overview
- Updates on objectives, exploitable results, and potential impact
- Deviations from the work plan and corrective actions taken
- Dissemination and exploitation activities
- Gender dimension in research activities
Periodic reports are subject to review by the European Commission and external experts.
Financial Reporting: Tips for Success
Accurate and timely financial reporting is essential for ensuring compliance with grant agreements and maintaining a healthy cash flow for your project. Here are some key tips for successful financial reporting:
1. Maintain Detailed Records: Keep comprehensive records of all project-related expenses, including personnel costs, travel expenses, and equipment purchases. Ensure that all costs align with the grant agreement and are incurred within the project period.
2. Use EC Online Tools: Utilize the European Commission's online tools, such as the Funding & Tenders Portal, for financial reporting. These tools streamline the reporting process and ensure consistency across all project partners.
3. Prepare for Audits: Be prepared for potential audits by keeping all supporting documents for at least five years after the final payment. This includes timesheets, invoices, and receipts.
4. Collaborate with Project Partners: Work closely with project partners to ensure that all financial data is collected and reported accurately and on time. Establish clear communication channels and deadlines for financial reporting.
5. Utilize Financial Management Software: Consider using financial management software, such as EMDESK, to facilitate the collection of time and expenses throughout the reporting periods. This allows the coordinator to review spending and identify irregularities well before the official reporting to the EC takes place.
The Periodic Reporting Process: Step by Step
The periodic reporting process consists of several key phases:
1. Notification: Log in to the Funding & Tenders Portal when you receive a notification that the periodic reporting is available.
2. Financial Statements: Each beneficiary completes their Financial Statement (and the financial report of their Affiliated Entity, if any) and electronically signs and submits it to the coordinator.
3. Technical Report: All beneficiaries contribute to the Technical Part of the Periodic Report, which is common for the entire project.
4. Coordinator Review: The coordinator reviews and approves the elements of the Periodic Report, including the Financial Statements and Technical Report. The coordinator can reject a Financial Statement back to a beneficiary for further editing or approve it for inclusion in the Periodic Report.
5. Submission to the EU: Once all elements of the Periodic Report are approved, the coordinator submits the entire report (Financial Statements and Technical Report) to the European Commission in a single submission.
6. EU Assessment: The European Commission assesses the Periodic Report and performs the Interim Payment.