Project accounting requirements
For non-state organisations, the following legal requirements apply:
Resolution of the Ministry of Finance No. 17, 24 February 2006 approving the Specification “On the accounting procedures for gratuitous income (assets)”.
For both state-financed and non-state organisations, the following legal requirements apply:
Ordinance of the Ministry of Finance of the Republic of Belarus No. 51, 26 April 2010 approving Specification “On the accounting procedures of the international technical assistance financial means by state bodies”.
General rules and accounting procedures for grant bookkeeping are described in the above-mentioned Specifications.
Belarusian Beneficiaries/Partners are recommended to provide two types of bookkeeping:
Regular bookkeeping in their own accounting system according to national requirements
Project financial management in accordance with ENPI CBC Programme rules, with project managerial accounting in accordance with project budget lines and positions
The first type of bookkeeping implies that all expenses in the framework of the project must be borne by Beneficiaries and Partners and reflected in their internal bookkeeping system, as is required by the Grant contract stipulating the criteria for eligible costs. For the project financial management purposes, separate project managerial accounting should be elaborated, based on the corresponding positions of the project budget. All relevant contracts, invoices and bills should contain a clear reference to the project and remark “Within the framework of the Project (project name) registered in the database of international technical assistance programmes and projects of the Ministry of Economy of the Republic of Belarus on (date of registration) under No. (registration number)”. Proper invoicing and relation of internal bookkeeping to the project managerial accounting will help to separate financial documents related to the project from all other documents of the Beneficiary/Partner
Calculating and accounting for Beneficiary or Partner human resources
Calculating and accounting of human resources used on project activities is to be made in accordance with Belarusian national legislation, which does not provide for specific rules for the international assistance projects. Please note nonetheless that each ENPI CBC programme may impose specific additional requirements; please check those carefully with your programme.
Generally, the Beneficiary (Lead Partner) should provide the following documents to the auditor and the Joint Managing Authority on request (if requested, the Partner must provide them to the Beneficiary):
Staffing table and internal orders on employment (if relevant)
Independent contractor agreements with acts on work completion (if relevant)
Salary payroll registers for staff working on the project
Payment documents for human resource costs of staff working on the project (payment orders to a bank for payment of salary, social, security funds, and insurance fees, etc.)
Account sheet (Accounts “Salary” and “Social security funds”, etc.)
Account analysis (Accounts “Salary” and “Social security funds”, etc.)
Registers (records) in the Ledger concerning salary payments
Internal time sheet according to Belarusian requirements. The time sheet should reflect in sufficient details the tasks worked on the EU-funded project
The calculation of human resources for the Joint Managing Authority should reflect not only the salary received, but also all obligatory payments by the employee or employer related to the salary, i.e. social security payments, work insurance, payments to the Pension Fund, income tax etc. (for that part of their time they are working on the project).
To make salary calculations easier for the project bookkeeping, you might want to draw up the annual labour cost statement for each staff person working on the project with indication of the following positions:
Sum of payroll calculations
Sum of deductions to the Pension Fund
Sum of income tax (in case the salaries of experts are paid from own sources of the Beneficiary/Partner and part of the co-financing to the project)
Sum of salary to be paid (transferred to the account of the expert)
Sum of deductions to the Fund for Social Protection of Population
Sum of deductions to Belgosstrakh
Sum of total labour costs of the expert
The statement has to be signed by the head of the Partner organisation and the organisation’s chief accountant, as well as by the bank officer confirming the amount of salary paid to the expert. While providing the data, be sure to indicate mandatory deductions, such as alimony payments and union fees. Such deductions from the amount to be paid out to the employee/expert after taxes, are included into labour costs.
To calculate human resources costs, the following method may be used:
1st step is to calculate labour costs per day (LCD):
annual labour costs
(ac. to calculation above)
official working days per year
(e.g. in 2009 – 255 working days)
Labour costs per day = total sum of the annual labour costs (according to the calculation described above) divided to the number of the official working days per year (according to the working calendar, e.g. in 2009 – 255 working days).
2nd step is to calculate labour costs for the period (monthly (LCM) or annual (LVA) figures):
LCM = LCD x number of days worked for the project in this month according to the time sheet, or
LCA = LCD x number of days worked for the project in this year according to the time sheets or summary of timesheets per year.
The daily labour costs rate serves as a basis for the staff cost calculation according to the monthly timesheets or summary of time sheets per year.
Please note that there may be other calculations required by your ENPI CBC programme, please check your programme specific requirements.
Timesheets reported within the project should be congruent with the employee timesheets of the Belarusian Beneficiary/Partner.