27 th of June 2013 GCCA Tanzania:Integrated Approaches for Climate Change Adaptation Information session on the Call for Proposals Contract and budgetary guidelines

Financial and contractual guidelines Grant: Financial donation in order to finance an action (max 80% co-financing under this CfP) Principles: Transparency (wide and accessible publicity of CfP and awarded grants) Equal treatment (grant award process is impartial, using published criteria) Non-cumulation (one grant, one action) Non-retroactivity (eligible costs incurred only after signature) Co-financing (% of the total eligible costs) Non-profit (except low values grants < €) Action: Set of activities Maximum Budget Duration (42 to 54 months under this CfP)

Financial and contractual guidelines Beneficiaries: Entities signing the grant agreement or being notified the grant decision (other are third parties) One of them plays the role of Coordinator Affiliated entities: They are third parties to the contract but benefit partially from beneficiary rights (eligibility of costs) Entities forming part of a beneficiary Their costs are considered costs of the entity to which they are affiliated Entities with a legal or capital link with the beneficiary

Financial and contractual guidelines Applicant / Coordinator: Plays the role of "lead applicant" / "main beneficiary" Gets a mandate from the rest of co-applicant(s) to: Submit the proposal Sign the contract To represent the rest during execution of the contract Assumes the financial responsibility of the contract

Financial and contractual guidelines Value of the grants contract: € ≤ x ≤ € Co-financing: max 80% Duration: 42 months ≤ x ≤ 54 months

Financial and contractual guidelines Eligibility Criteria / Supporting documents

Financial and contractual guidelines Standard composition of a grant contract: Special Conditions (always prevailing on the annexes) Annex I: Description of the Action Annex II: General Conditions (always prevailing on the other annexes) Annex III: Budget Annex IV: Contract award procedures Annex V: Request for payment Annex VI: Reporting Annex VII: Expenditure Verification Annex VIII: Financial guarantees Annex IX: Standard template for Transfer of Asset Ownership

Reporting: INTERIM REPORTS (max 60 days after end of reporting period) Content: narrative + financial + budget forecast + expenditure verification (if required by General conditions) Coordinator to collect, consolidate and present the reports Submitted with the payment request Use templates as in Annex VI Cover the Action as a whole, not by sources of financing Expenditure verification report MUST be attached to the final payment, for all grants > EUR Additional information requested to be answered by 30 days FINAL REPORT (max 3 months after the implementation period, 6 if HQ not in the country) Covers also periods not covered before Include proof of transfers of ownership Financial and contractual guidelines

Beneficiary(ies) shall take all necessary steps to publicise the co-financing of the action by the EU Communication and Visibility Manual: Financial and contractual guidelines Visibility:

Ownership and rights of results belongs to the beneficiary(ies) Right to use results granted to the CA If beneficiary(ies)’s headquarters is outside of the country: copies of the proofs of transfer of any equipments and vehicles of unit purchase cost > € shall be attached to the final report (using Annex IX as template) Financial and contractual guidelines Ownership of results and assets

Contract Modification GC Art. 9 – General rule: any change  signed addendum – Only during execution period – No changes putting in question the award decision – Beneficiary(ies) requests 30 days before change – No retroactivity – Changes of address, bank account or auditor: simple notification by the beneficiary(ies) Financial and contractual guidelines

Budget Modification GC Art. 9 – Max value of contract: no changes permitted – Variation between main items (incl. new item): > 25%: signed contract with new annex III – budget ≤ 25%: notification by the Beneficiary(ies) variations are cumulative not possible for indirect costs, contingency reserve, in-kind contributions and flat-rates Financial and contractual guidelines

Sub-granting: It may not be the main purpose of the action Max € Max 3 sub-grants for a maximum value of € each

Financial and contractual considerations Extension of the action: Coordinator shall ask for extension with all supporting evidence needed Suspension of the action: Exceptional circumstances (force majeure) Coordinator to inform the CA without delay

Financial and contractual considerations Termination of the action: Force majeure Beneficiary(ies) not complying with obligations Beneficiary(ies) bankrupt, guilty of fraud etc. (art GC of the contract) i.e. not eligible anymore

Direct eligible costs: Incurred (=committed=signed) in the implementation period of the contract (except: exp. verification, final reports and final evaluations) Identified in the budget and necessary for the action Identifiable in the accounts of the beneficiary Reasonable, justified and complying with sound financial management (economy, efficiency, effectiveness) Staff costs of the action, travel, per diem, purchase/rental of equipment/supplies for the action, consumables, dissemination events, seminars, audit, evaluation, translation, etc. Financial and contractual guidelines

Simplified Cost Options (unit costs, lump-sums, flat rate financing) Unit costs: covering all or certain specific categories of eligible costs. Clearly identified in advance by reference to an amount per unit Lump sums: covering in global terms all or certain specific categories of eligible costs. Clearly identified in advance Flat-rate financing: covering specific categories of eligible costs. Clearly identified in advance by applying a percentage fixed ex ante Maximum amount for simplified cost option: € per beneficiary (excl, of the 7% of indirect costs) Proposed by the beneficiary and approved by the Contracting Authority during the contracting phase The amounts of unit costs, lump sums and/or flat-rates are fixed (Per diems are not considered a simplified cost)

Financial and contractual guidelines Simplified Cost Options (lump-sums, unit costs, flat rate financing) Per each of the corresponding budget item or heading the applicants must: Describe the information and methods used to establish the amounts of unit costs, lump sums and/or flat-rates and which costs they refer to. Clearly explain the formulas for calculation of the final eligible amount, using the Guidelines provided for in Annex K Identify the beneficiary who will use the simplified cost option in order to verify the maximum amount per each beneficiary

Financial and contractual guidelines Simplified Cost Options (lump-sums, unit costs, flat rate financing) The methods used by the Beneficiary(ies) to determine the simplified cost options must be clearly described in Annex III (justification sheet of the budget). Can be based on: -Statistical data or other external data as appropiate -Certified or auditatble historical data of the Beneficiary(ies) -Actual accounting or cost accounting data of the Beneficiary(ies)

Other allowed costs: Contingency reserve = max 5% of direct eligible cost use subject to prior authorization Indirect eligible cost = max 7% of direct eligible cost (to cover admin overheads) TOTAL BUDGET = direct cost + contingency + indirect cost Contributions in kind are not considered actual expenditure and are not eligible costs. How can the use of applicant’s or partners’ premises and services be accounted for? An example: how do we cover the cost of electricity, lighting etc when using premises from a partner? Can these be claimed as well as the 7% administration fee. Financial and contractual guidelines

Costs NOT eligible: debts and debt service charges Taxes, including VAT are not eligible. EXCEPTION: when the Beneficiary can prove they cannot be exempted by the authorities (i.e. TRA) provisions for losses or potential future liabilities interest owed costs declared by the Beneficiary and covered by another action or work program purchases of land or buildings, except where necessary for the direct implementation of the Action, in which case ownership must be transferred to the final beneficiaries and/or local partners, at the latest at the end of the Action currency exchange losses credit to third parties Financial and contractual guidelines

Financial and contractual considerations Payment Schedule: Pre-financing: EC contribution of first year budget excl. contingencies (Contract signature) Further (yearly) installments of pre-financing: EC contribution of following year estimated budget (reporting + new year budget) subject to min 70% use of previous payment and 100% of previous payments Final payment: balance

Financial and contractual considerations Payment request: Annex V – Standard form accompanied by: Narrative and financial report Forecast budget Expenditure verification report interim payments for grants of > 5M € and final payment for grants > €

Financial and contractual guidelines Rules for currency conversion Reporting: same as CA's contribution UGXEGPKSH Accounting: monthly Inforeuro

Financial and contractual guidelines Annex IV – Contract-award procedures

Keeping records Beneficiary must give full access to EC, CoA, OLAF or auditors as to allow verifications of the action and/or to audit. Record keeping by the beneficiary (from the final payment): - 5 years in general - 3 years for low value grants (without prejudice to on-going audits, appeals, litigation or pursuit of claims) Same periods for the right of audit All the supporting documents shall be available in the original form, including in electronic form Financial and contractual guidelines

PRAG Practical Guide to contract procedures for European Union external action

Financial and contractual guidelines