Sn

1
HUSKROUA/1001/028
Foresters towards life-long learning for the
better forest management
Administrative requirements and procedures
Lesya Loyko FORZA NGO head, Project Manager July
4, 2012 Velky Saris, Slovakia
2
Start of implementation

• Distinguish between
• When the contract takes effect date of last
  signature MAY 30, 2012
• When the Action starts as specified in art. 2.2
  of the special conditions JUNE 1, 2012
• Costs are eligible only after Action start date!
• Procedures to award sub-contracts for goods,
  services or works may be initiated before but
  sub-contracts may NOT be concluded by the
  Beneficiary or its partners before Action start
  date

3
Implementation period

• Distinguish between
• When the implementation period ends 24 months
  after Action start date (art. 2.3 Special
  conditions)
• MAY 31, 2014
• - When the execution period of the
  contract ends
• When final payment is paid by JMA OR
• In any case at the latest 18 months after the end
  of implementation period
• Costs are eligible only during implementation
  period
• Except costs relating to final reports,
  expenditure verification and evaluation of the
  Action

4
C O M M U N I C A T I O N

• Regular meetings (in person and via skype)
• Make minutes of those meetings and use them as
  working documents!
• efficient external communication and both of them
  should be in line with each other
• Ensures everyone speaks with one voice
• To JTS(VATI) only through FORZA

5
V I S I B I L I T Y

• Visibility - art. 6 General conditions and 7.1.8
  Special Conditions
• Is a contractual obligation!
• Art. 6.1 the Beneficiary must take all necessary
  steps to publicise the fact that the EU has
  financed or co-financed the Action. Such measures
  must comply with the Communication and Visibility
  Manual for EU External Actions and with the
  provisions of the Hungary-Slovakia-Romania-Ukraine
  Cross-border Cooperation Programme 2007-2013
• Art. 6.2 In particular, the Beneficiary shall
  mention the Action and the EUs contribution in
  information given to the final recipients of the
  Action, in its internal and annual reports, and
  in any dealings with the media. It shall display
  the EU logo wherever appropriate

6
V I S I B I L I T Y

• All material purchased, project outputs
  (materials produced) and results, including
  investments, as well as information and
  communication material (letters, publications)
  must have clear reference to EU contribution and
  to the Programme (logo, statements) regardless
  of the source of financing. Projects must display
  the EU Programme logo at all events. The use of
  Programme slogan is voluntary.
• Publications must include a disclaimer This
  publication has been produced with the assistance
  of the European Union. The contents of this
  publication are the sole responsibility of ltname
  of the author/contractor/implementing
  partner/international organisationgt and can in no
  way be taken to reflect the views of the European
  Union.

7
Guidelines for visibility

• Programme Communication Guidelines include logos
  and templates in the 4 languages!

8
Communication guidelines and manual

• http//www.huskroua-cbc.net/en/useful-information/
  communication-guidelines-for-projects/154
• Download and use
• Programme communication guidelines
• EC communication and visibility manual

9
C O N T R A C T

• Grant contract special conditions and general
  conditions and Annexes should be well studied and
  followed
• The provisions of the Special Conditions take
  precedence over ALL the Annexes check art. 7 for
  additions/derogations!
• Annex II (General Conditions applicable to
  European Community-financed grant contracts for
  external Actions) takes precedence over the other
  annexes
• Beneficiary statement on conditions
• Project modification requests

10
Modification of the Action

• General Conditions Art 9.1
• Any amendment to the contract, including the
  annexes, must be set out in writing in an
  addendum
• Contract can be modified only during its
  execution period
• Beneficiary must submit a request to the JMA one
  month before the date on which the amendment
  should enter into force, unless there are special
  circumstances duly substantiated by the
  Beneficiary and accepted by JMA
• The maximum grant amount referred to in article
  3.2. of Special Conditions may not be increased
  (nor amount nor !)

11
Limited amendments

• General Conditions Art. 9.2 Beneficiary may
  amend the budget and inform JMA in writing
  without delay
• When financial transfer between items within the
  same budget heading, including cancellation or
  introduction of an item
• When financial transfer between budget headings
  involving a variation of 15 or less of the
  original amount (or as modified by addendum) in
  relation of each concerned headings
• Amendment should not affect the basic purpose of
  the Action
• This method cannot be used to amend the headings
  for administrative costs or the contingency
  reserve

12
Limited amendments - example

• Contact your JTS programme manager in case of
  doubt and to keep him/her informed in any case!

13
B U D G E T

• Total -373 682,08 EUR
• EU financing 336 313,86 EUR (90)
• UA- 198 501,05 EUR(co-financing 10)
• SK 171 181,03 EUR(co-financing 55)
• 1st installment (80 of 90) 147 986,50 EUR
• SK 69 620,22 EUR
• 70 threshold 48 734,15 EUR request for fin.
  verification

14
B U D G E T

• Co-financing UA -10, SK-5
• Suggested make the co-financing equally during
  the whole period of project implementation
• Keep the record of co-financing
• Use of HUSKROUA website as the source of
  documents

15
Types of eligible costs

• The types of costs considered as eligible,
  defined in Article 14 of the General Conditions
  are
• Eligible direct costs
• Costs must comply with the provisions of Article
  14.1 14.2
• Contingency reserve
• Not exceeding 5 of the direct eligible costs.
  It may be used only with the prior authorisation
  of the contracting authority.
• Eligible indirect costs (overheads)
• Flat-rate funding set at not more than 7 of the
  total eligible direct costs.

16
Staff costs

• The cost of staff assigned to the Action, not
  exceeding those normally borne by the
  organisation in question, corresponding to gross
  salaries and including social security costs and
  other remuneration-related costs.
• Supporting documents
• Salary slip and proof of payment
• Social charges
• Contract
• Timesheet
• Calculation of the hourly/daily/monthly cost

17
Human resources

• Involvement of human resources use the procedure
  in the organization
• TORs!
• Project staff directory/contacts
• Time sheets all human resources, timely,
  accurately (see example - involvement in other
  projects)

18
Staff costs

• Preparation of monthly timesheet
• The eligible cost is the cost of the time devoted
  to the project therefore, the timesheet is the
  key document to ensure the proof of the
  necessity of the claimed expense and that the
  right amount is included in the accounting. It is
  also essential in case of control.
• Only paid hours may be
• includes (no un-paid extra hours)

19
Costs

• Cost incurred by staff or any other person taking
  part in the project
• Costs may not exceed those normally borne by the
  Beneficiary or partner
• Any flat-rate for the subsistence costs must not
  exceed the rates (per diems) set out in the
  scales published by the European Commission at
  the time of signing the contract
• KEEP ALL the receipts as confimation

20
Subsistence costs

• Supporting documents
• Take care to have information and documentation
  proving for each travel
• Number of participants
• Number of nights
• Total cost of subsistence costs for the travel
• The supporting documents needed are
• Invoice of the travel agency for accommodation,
  including proof of payment
• Reimbursement sheet or salary slip
• Meeting or event related documents, as in the
  case of travels

21
Equipment and supplies

• According to article 14.2, the purchase or rental
  of equipment and supplies (new or used) is
  eligible if it is specifically for the purposes
  of the project.
• The cost of related services, such as
  transportation or installation is also eligible.
  The costs have to correspond to market rates.

22
Equipment and supplies

• Supporting documents
• Documents related to the award procedure,
  including a contract and a purchase order (see
  presentation on procedure). They have to give
  evidence of the market rates.
• Proof of delivery
• Invoice from contractor and proof of payment
• Proof of origin for equipment and supplies of a
  unit cost on purchase on more than 5.000 ,
  according to section 2.2. of annex IV of grant
  contract (procurement by grant beneficiaries)

23
Other costs, services

• includes the subcontracting expenditure and other
  costs deriving directly from the requirements of
  the contract, as described in article 14.2 of the
  General Conditions.
• Supporting documents
• Documents related to the award procedure (see
  presentation on procedure).
• Invoices from contractors and proof of payment
• Proof of delivery of services
• Any materials published
• Proof of respect of the rules for visibility
  http//ec.europa.eu/europeaid/work/visibility/inde
  x_en.htm
• In case of events, the related document, as in
  case of travel

24
Contingency reserve

• The contingency reserve can only be used in case
  of unforeseeable circumstances and with prior
  approval by JTS.
• The request for its use has to indicate which
  categories of expenditure (1 to 6) will need
  extra resources.
• The reallocation will be shown in the financial
  report and no accounting entries will be found
  under this category

25
Administrative costs

• (category 10)
• These costs are claimed as indirect costs and
• They are calculated as a fixed rate of the total
  amount of direct eligible costs (categories 1 to
  6).
• The flat rate does not need to be supported by
  accounting documents
• It is incompatible with the receipt of an
  operating grant from EC by the beneficiary or
  partners, that is, if the beneficiary or partner
  is receiving a grant to finance its regular
  operating costs, no additional administrative
  costs can be accepted as eligible, as it would be
  double funding

26
Ineligible costs

• Debts and provisions for losses or debts
• Interest owed
• Items already financed in another framework
• Purchases of land or buildings, except where
  necessary for the direct implementation of the
  action
• Currency exchange losses
• Taxes, including VAT, unless the beneficiary (or
  the beneficiarys partners) cannot reclaim them
  and the applicable regulations do not forbid
  coverage of taxes
• Loans to third parties.

27
Controls

• Article 16.2 of the General Conditions indicate
  that the Beneficiary and its partners shall allow
  EC, European Anti-Fraud Office (OLAF), European
  Court of Auditors and any external auditor sent
  by JMA/JTS carrying out verifications, including
• Examining documents
• On-the-spot checks
• Examining accounting
• These inspection may take place up to 7 years
  after payment of the balance.
• JMA/JTS will conduct a yearly audit plan for
  projects on a sample of the ones having submitted
  reports with payment claims.

28
2. Eligibility Nationality rule
Tenderers must state, in the tender, the country
of which they are nationals by presenting the
usual proof of nationality under their national
legislation. This rule does not apply to experts
proposed by service providers taking part in
tender procedures or service contracts financed
by the grant. All countries mentioned in
previous slide are acceptable, REGARDLESS OF THE
PROGRAMME ELIGIBLE AREA!
29
2. Eligibility Rule of origin

• ENPI Regulation 1638/2006 art. 21.6 ALL supplies
  and materials purchased under contracts financed
  shall originate in a EU Member State or ENPI,
  IPA, EEA country (Cf list in previous slide)
• Includes the materials to be used for the
  construction
• Does not apply to Contractors equipment to be
  used during the construction
• Contractors must present proof of origin no later
  than when the first invoice is presented, for
  equipment and vehicles of a unit cost on purchase
  of more than 5 000.
• The certificate of origin must be made out by the
  competent authorities of the country of origin of
  the supplies (Chamber of commerce) and must
  comply with the rules laid down by the relevant
  EC legislation (see next slide).

30
2. Eligibility Rule of origin, customs

• The term origin is the economic nationality
  of goods in international trade and is defined in
  the relevant EC legislation on rules of origin
  for customs purposes (Customs Code, Council
  Regulation 2913/1992)
• Goods originating in a country shall be those
  wholly obtained or produced in that country (art.
  23)
• Goods whose production involved more than one
  country shall be deemed to originate in the
  country where they underwent their last,
  substantial, economically justified processing or
  working in an undertaking equipped for that
  purpose and resulting in the manufacture of a new
  product or representing an important stage of
  manufacture (art. 24)
• http//ec.europa.eu/taxation_customs/customs/custo
  ms_duties/rules_origin/index_en.htm

31
2. Nationality and origin, exceptions

• Exceptions may be justifyed by
• Unavailability of products and services in the
  markets of the countries concerned
• For reasons of extreme urgency
• If the eligibility rule were to make the
  realisation of a project, a programme or an
  action impossible or exceedingly difficult
• NOT applicable just because a product of
  ineligible origin is cheaper than the EU or local
  product!
• By derogation only (request to JTS/JMA) before
  launching the tender!

32
3. Rules common to all tender procedures

• The tender documents must be drafted in
  accordance with best international practice
• If they do not have their own documents,
  Beneficiary/partners may use the models published
  on EC website relating to external actions (PraG
  Chapters 2, 3, 4 and related annexes)
• http//ec.europa.eu/europeaid/work/procedures/impl
  ementation/practical_guide/index_en.htm
• The time-limits for receipt of tenders and
  requests to participate must be long enough to
  allow interested parties a reasonable and
  appropriate period to prepare and submit their
  tenders. (eg PraG 60 days for Supplies and 90
  days for Works in international tenders, 30 for
  Supplies and 60 for Works in local tenders)

33
3. Rules common to all tender procedures

• All requests to participate and tenders declared
  as satisfying the requirements must be evaluated
  and ranked by an evaluation committee on the
  basis of the exclusion, selection and award
  criteria announced in advance.
• This committee must have an odd number of
  members, at least three, with all the technical
  and administrative capacities necessary to give
  an informed opinion on the tenders.

34
Confirming docs of action

• Written materials Internal memos, meeting notes,
  progress reports etc.
• Prove of activities conducted invitations, list
  of participants with signatures, meeting minutes,
  photos
• Filing (printed and electronic)
• Required to collect samples of all information
  and communication materials as well as all media
  materials produced about the project. A copy of
  those materials should be sent to the JTS
  together with Interim Reports. In addition, the
  JTS should be notified about every event
  organized in the frame of the project.

35
REPORTING

• Interim report (consisting of both narrative and
  financial section) conforming to the model in
  Annex VI must
• Be submitted no later than 3 months after the end
  of each six month (in the absence of request for
  payment)
• Covers June-November 2012
• To be submitted by end of February 2013
• Accompany every request for payment
• Final report shall be forwarded no later than 3
  months after the implementation period
• Report covers the Action as a whole