Changes in the project Joint Technical Secretariat Seminar for Beneficiaries and Partners August, 2013 Rezekne, Latvia

Main principles (Section 10 of Practical Guidelines) Changes can take place only when project implementation has already started; Changes should not question project objectives and results; Changes may not be implemented retroactively; Maximum amount of grant may not be increased; Extension of project implementation period is limited to expiry of financial decision and end of the Programme on 31 December 2014; Any change should be discussed in the partnership and communicated to all partners by the Beneficiary. 2

Involved parties-1 3 Actor Role Beneficiary -Takes responsibility for changes and represents Project Partners; -Drafts Notification/ Request for Addendum; -Communicates with the Programme. Joint Technical Secretariat -Provides consultation to the project; -Receives and reviews documents provided; -Provides support to JMA; -Makes decision to approve/disapprove minor changes.

Involved parties-2 4 ActorRole Joint Managing Authority (Contracting Authority) -Reviews requests for changes; -Makes decision to approve/disapprove major changes. Joint Monitoring Committee -Gets involved in decision making in case of serious changes (contentious cases) proposed by the project.

Types of changes (Section 10 of Practical Guidelines, p.40) Minor changes Minor changes (14 days) “…may be implemented without receiving a prior agreement of the Contracting Authority, but the Contracting Authority should be notified about them” Major modifications Major modifications (30 days) “…require a formal Addendum to the contract to be signed by the Contracting Authority and the Beneficiary before their implementation” 5

What are minor changes?-1 Minor changes in project activities without budgetary implications:  Increase/strengthening of project outputs as set in Activity packages;  Extension of project activities as set in Activity packages;  Addition of new project activities and/or outputs, which are clearly linked and coherent with initial project activities;  Change of the Beneficiary’s bank account;  Change of project staff and key experts linked to Budget Heading 1 and Budget Heading 5. 6

What are minor changes?-2 Changes in the budget that do not affect basic purpose of the project and limited to :  Transfer within the Budget Heading;  Transfers between project partners under 10% of the Budget Heading;  Cancellation/introduction of the budget line;  Transfer between the Budget Headings within the variation not exceeding 15% in relation to each Budget Heading considered. 7

Minor changes. How to? 8 Official Notification + Supporting documents (Annex 3, Practical Guidelines) Official Notification + Supporting documents (Annex 3, Practical Guidelines) Beneficiary Project Manager CONSULTATION YES/NOТ about introducing the desired changes before submitting the official Notification. Joint Technical Secretariat -Checks documents -Approves/does not approve the proposed changes Joint Technical Secretariat -Replies to Beneficiary -Informs Contracting Authority Informs Beneficiary on approval of changes in written Informs Beneficiary on rejection of changes in written

What are major modifications? – 1 9  Extension/early closing of the Grant Contract;  Significant changes in activities affecting the basic purpose of the project, but not questioning the grant award decision and not conflicting the equal treatment of the applicants;  Transfer between the Budget Headings, which exceeds 15% in relation to each Budget Heading considered;

10 What are major modifications? – 2  Transfer between project partners exceeding 10% of the Budget Headings;  Adding/deleting of the Budget Heading to/from the project budget;  Use of contingency reserve;  Change of the Auditor by the Beneficiary;  Change in the partnership (drop out, addition, replacement);  Extensive minor changes is under competence of JMA.

Major modifications. How to? 11 Beneficiary Project Manager CONSULTATIONCONSULTATION On possibility to introduce the desired major modifications (Addendum to Grant Contract) YES/NO Request for Addendum to Grant Contract (2+1 copies by post and ) in English Request for Addendum to Grant Contract (2+1 copies by post and ) in English JTS JTS verifies: -Description/details; -justification; -Supporting docs; -calculations. Can request additional explanations Reports to “Contracting Authority” “Contracting Authority” “Contracting Authority”: -checks request for Addendum to GC, supporting docs and JTS’s report; -makes decision; -Prepares and signs Addendum to GC; -Checks calculations. Can request additional explanations In certain cases can involve JMC into decision making Request for Addendum (3 copies) Request for Addendum (3 copies) Notification in written

12 Changing budget-1 Applicable both for minor changes and major modifications; Consolidated table to keep records and to submit together with request for changes throughout the project implementation; For showing calculations use templates in Annex 3 or Annex 4 to Practical Guidelines

Budget HeadingOriginal budget Budget minor changes / Addendum 1 Budget minor changes / Addendum 2 Budget of the last changes Human resources Travel costs Equipment and supplies Direct local office costs Other costs and external services Infrastructure Total eligible costs 13 Changing budget-2

to respect deadlines informing the Programme about the minor changes and major modifications. Section 10 of Practical Guidelines p.41 and p.45; that the Contracting Authority may disapprove minor changes in the project; to submit additional documents required for minor changes and/or major modifications, ibid., p.42 and 44-45; consult with the JTS prior to implementation of any changes; inform the JTS and the Contracting Authority about any changes in the project using templates. 14 Remember…

Joint Technical Secretariat Thank you! 15