So close-up it looks a bit rougher, I'm thinking of adding a ribbon or tape to hide the seams between the papers. I tried a couple of ways to put the paper around the clip. I think pushing the lower paper flush with the clip worked well. Then to do the top I lay the paper on top (before the mod podge) and traced the edge of the clip with the edge of my fingernail. If you have a bone folder that would work better, then I cut out the curve. This looked the most tidy. If the metal on your clip is more flexible you could bend it a bit and slide the paper underneath, but this didn't work so well for me - It kind of munched the paper. If anyone has a better way, please share it! Thanks Ruby for the question.
Susan and others new to the wonders of Mod Podge... it is basically a glue that dries clear and seals project. You use it under and over what you would want to adhere and it works on most surfaces to add fabric, paper, etc. It has different kind of finishes available - Matte, shine, and even sparkle. The collage craft using this is called decoupage.