Tacis Grant Contract and

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Tacis Grant Contract and Eligibility of
Expenditure BSR INTERREG III B Joint
Secretariat, Riga.
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Key Contractual Issues

• Contract Structure
• Responsibility for the Action
• Start implementation period
• Payments reporting
• Visibility
• Contract amendment

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Structure of the Tacis Grant Contract

• Special Conditions (SC)
• Annex I - Description of the Action
• Annex II - General Conditions (GC)
• Annex III - Budget for the Action
• Annex IV - Contract award Procedures
• Annex V - Request for Payment Financial ID
• Annex VI - Model audit certificate
• Annex VII Model Financial Guarantee (if
  applicable).

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Responsibility for the Action

• The Lead Partner (Beneficiary) signs the
  contract is fully responsible for the action
• EC Contracting Authority
• EC has no contractual relationship towards
  partners or sub-contractors
• Partners are bound by the Partnership Declaration
  with Principles of Good Partnership Practice
  All changes, including change of activities or
  partners, must be by agreement.

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SC, Art 2 Start and Implementation Period

• Sets clock ticking for eligibility of expenditure
  under Art. 14.1 GC
• Art. 2 SC Implementation of the Action shall
  begin on the day following that on which the last
  of the 2 Parties signs or on any other date.
• Implementation period shall run no longer than
  end of the year 2008.

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SC, Art 3 Financing of the Action

• The total cost of the action is based on the
  actual eligible cost incurred by the Beneficiary.
  
• The EC finances a specific of the total
  eligible costs incurred within the maximum amount
  stipulated in the contract. If at the end of the
  action, the actual eligible costs are lower than
  anticipated, the EC financing is reduced
  proportionally.

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SC Art 4, GC Art 15.1 Payments and Reporting
12 months OR EUR 100,000
gt12 months AND gt EUR 100,000

• Contract signed request for payment (fin
  guarantee)
• gt Pre-financing of 80
• Request for payment (audit report)Final report
  approved
• gt Balance

Contract signed request for payment (fin
guarantee) gt Initial pre-financing of 80 of
1st year forecast budget Request for payment
interim report (fin guarantee) gt Interim
payments Request for payment Audit report
Final report approved gt Balance

• Not more then 90 of
• EC contribution

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SC, Art 5 Contacts

• For the Contracting Authority
• Contact person The Project Manager
• Payment requests reports Head of FC Section
• For the Beneficiary you

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GC, Art. 6 - Visibility

• Art. 6.1 GC Beneficiary must publicise EU (co-)
  financing!
• Art. 6.3 GC Use the disclaimer on all
  publications (including internet)
• This document has been produced with the
  financial assistance of the European Union. The
  contents of this document are the sole
  responsibility of lt the beneficiarygt and under no
  circumstances can be regarded as reflecting the
  position of the European Union
• Check out the web site
• http//europa.eu.int/comm/europeaid/visibility/in
  dex_en.htm

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GC, Art. 9 - Contract Amendment

• 1) By Notification
• Transfer within the same budget heading
• Transfer between budget headings involving less
  than 15 variation in each heading
• No prior approval but ask EC advice!
• 2) By Addendum
• Major changes e.g. budget change gt 15
• Prior approval NOT retroactive!!!
• At least 30 days notice required

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Eligibility of Expenditure. Overview.

• Eligible Costs.
• Staff assigned to the action (clear indication of
  positions in CVs)
• Travel costs
• Purchase of equipment (new or used)
• Subcontracting
• Other costs dissemination, evaluation, audit ,
  translation, etc
• With Final Report if Tacis part gt 100,000

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• Ineligible Costs.
• Debts and provisions for losses of debts
• Interest owed
• Items financed in another framework
• Purchases of lands or buildings
• Currency exchanges losses
• Taxes, including VAT
• only APs are subject to registration, not the
  projects registration nb of the AP is to be
  used. However, the Action Programme CBC 2005 has
  not been signed yet. 

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Useful links

• Practical Guide
• http//europa.eu.int/comm/europeaid/
• tender/gestion/index_en.htm
• Visibility Guidelines
• http//europa.eu.int/comm/europeaid/visibility/ind
  ex_en.htm
• Per diems
• http//europa.eu.int/comm/europeaid/perdiem/index_
  en.htm
• Exchanges rates
• http//europa.eu.int/comm/budget/inforeuro/
• en/index.htm

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• Thank you very much for your attention!