1. South East Europe Transnational Cooperation Programme APP4INNO Kick Off Meeting Pecs, Hungary, 24 th October 2012 Simona Ene SEE Joint Technical Secretariat

2. Where we are The project implementation Reporting Reimbursement Monitoring and audit Project changes (partnership, budget, content) Decommitment IPA integration Content

3. The 1 st Call for proposal Open Call – Bottom-up approach – 76M€ 820 Expressions of Interest (EoI) 40 Projects approved The 2 nd Call for proposal Targeted restricted – GAP filling – 43M€ 550 Expressions of Interest (EoI) 26 Projects approved The SEE Programme until today The 4th Call for proposal Open Call – Bottom-up approach 341 Application Forms 37 Projects approved Strategic Call 44 Expressions of Interest (EoI) 8 Projects approved The 3rd Call for proposal

4. High interest in all 16 Partner States: –342 Applications filled in and delivered –231 eligible 37 Projects (16% of eligible applications) approved for funding. 4 th call conclusions

5. P1 P 2 P3P4TOTAL AFs Submitt ed Approv ed Submit ted Appr oved Submitt ed App rov ed Submitte d Appr oved Submitte d Appro ved 1131011710371075734237 The submitted versus approved The submitted versus approved

6. APP4INNO What the programme expects from APP4INNO? 1.High expectation for an effective transnational cooperation and visible results. 2. Capitalization is a must do! Don’t duplicate, avoid spending time and resources in entering dead-end streets. 3. Be synergic with all other initiatives that could affect your results (mainstream programmes, national and regional policies…).

7. Contracting – signing of the Subsidy Contract The procedure for signing the subsidy contract between the Lead Partner and the Joint Technical Secretariat (JTS) on behalf of the Managing Authority (MA) has started on the 1 st of October and it is estimated to close in mid November. Projects approved with conditions were asked – before signing the Subsidy Contract – to resubmit project’s documents that have changed (addendum of the Partnership Agreement if needed, revised Application Form, new Declaration and Co-financing Statements – if the case). The project implementation

8. Starting up the projects The eligibility of expenditure for project implementation started on 28 th September 2012 for ERDF PPs (the day of final approval of the project by the MC) The project implementation starts, after the approval of the project by the Monitoring Committee, on the starting date included in the AF (1 October 2012) Important: Starting date & end date of the project are fixed in the subsidy contract Expenditure of the IPA-I partners are eligible only from the date of signature of the IPA-I Financing Agreement (by now only republic of Serbia and Montenegro signed the Financing Agreement) The project implementation

9. Transnational project and financial management Rules of Procedures for the Steering Committee, including decision making process within the partnershipThe partnership should agree on the Rules of Procedures for the Steering Committee, including decision making process within the partnership Communication activities Communication planCommunication plan must be submitted to the JTS together with the first progress report (deadline 1 July 2012) For facilitating the internal communication inside the partnership: -Clear rules should be established regarding the communication flow to and from the Lead Partner/ WP Leaders and project partner -Internal procedures for the development and finalization of the project documents should be developed The project implementation

10. Reporting The Lead Partner should give account of the general progress of the whole project in a Progress Report. The progress report focuses on the following: The activity report – gives account on the general progress of the project, what has been achieved and delivered. The description of the activities and outputs should justify the reported expenditures of the different project partners. The financial report – presents the expenditures incurred, paid and validated by the ERDF and IPA-I project partners during the reporting period in relation to the reported activities of the project. The SEE Programme will reimburse the requested ERDF and IPA contributions to the LP only in case its connected progress report is approved by the JTS.

11. Reporting: LP’s role LPs responsibilities & verifications before submission of the AfR The expenditure declared by the PPs has been incurred only for the Project purposes and corresponds to the activities of the approved AF The expenditure declared by the PPs and included in the AfR had been validated by the designated controllers at national level All declaration on validation of expenditure presented in the AfR are attached in original paper version officially signed by the designated controllers The expenditure declared in the AfR has not been included in any other previous AfR The information included in the AfR, the related Progress Report and its Annexes are true and correct

12. Reporting: LP’s role Further rules: In case the declarations on validation of expenditure are not received from each project partner for a given reporting period, the LP shall submit the application for reimbursement on the basis of the declarations on validation of expenditure available for the reporting deadline. The expenditure of the project partners not validated for the given reporting period within the deadline can be requested only for the following reporting deadline to the reporting period concerned. To be submitted within 15 days after the electronic submission: Application for reimbursement: 2 originals signed and stamped Declarations on validation: 1 original signed and stamped

13. Reporting: PP’s role Technical progress of the project: The ERDF and IPA-I Project Partners should help the LP in the preparation of the regular progress report by filling in and forwarding their Partner Report to the LP on time activities outputsThe Partner Report is a tool which must provide clear and concise information regarding the performance of the activities and delivering of the outputs by the Project Partners in a given reporting period

14. Reporting: PP’s role Financial progress of the project: expendituresProject Partners collect documentation proving their expenditures, and get them validated according to the national control system Each ERDF PP should prepare and submit for validation the progress report to the national First Level Control (that will be the basis also for the Declaration of their expenditures that will be part of the LP’s application for reimbursement of project costs) Only validated expenditure can be reported by the Lead Partner to the JTS! ! Every single Project Partner must contribute to the compilation of each Progress Report. This is valid also for Project Partners without financial contribution and Project Partners from non-EU member states. As a recommendation for the LP as well as PPs: build up your own monitoring and evaluation system in order to regularly check how the project proceed! In this respect the Partner Report can also be a useful tool for that.

15. Reporting: Partner report Partner Report Project Partners collect documentation proving their expenditures, and get them validated according to the national control system Excel document provided by the JTS and customised by the LP and technical project manager. Before submitting it to the National Controller you might ask the LP for support Partner Report will be validated by the National Controller. Declaration on Validation of Expenditure (DoV) in original and the copy of the whole report (electronic version) have to be sent to the LP. Directions for partner report preparation: –Users Project Partners’ Guideline for SEE Partner Report (JTS)

16. Reporting: Partner Report Activity report - description of the activities fulfilled by the partner in the given period: summary respecting the time frame spending targets description of each activity and location description of outputs and results public procurement output and result indicators Financial report - expenditure incurred and paid in the given period: financial progress by WPs and budget lines expenditure by 10 % flexibility rule list of all invoices and supporting documents per WP and budget line

17. Reporting: Partner Report Partner Report Each project partner is responsible separately for having its expenditure validated by the designated Controller Additionally to the deadlines set by the JTS, national controllers in some countries might define national submission deadlines for the Partner Reports Consider also APP4INNO additional management deadlines IMPORTANT: Contact your National Controllers about additional deadlines and requested documents Keep the controllers’ set deadlines Keep LP informed about national situations

18. Reporting: documents Documents to be submitted with the PR No.Type of the documentForm of submission a)through SEE FO b)electronic (e-mail, CD, DVD, other) c)original paper version 1Progress reportSEE FO 2Application for reimbursement SEE FO and 2 originals, officially signed by the LP 3Declaration on validation of expenditure SEE FO (scanned version of the original) 1 original, officially signed by FLC 4 Bank statements confirming the reimbursed amounts transferred SEE FO (scanned version of the original) 5Project deliverables, outputs (English version)SEE FO and/or electronic/original hard copy 6 Project communication plan with the first progress report SEE FO and/or electronic/original hard copy

19. As a general rule, the Lead Partner has to submit the progress report and the application for reimbursement twice a year, on a six-month basis (period 2 is an exception). The reporting periods are fixed in the subsidy contract. The first PR and AfR have to cover preparation costs and project expenditure incurred and paid within the first reporting period. –End of first reporting period: 31 st March 2012 –First deadline for submission: 1 st July 2012 Reporting: deadlines

20. Periods Reporting Period Deadline for submission Period 11 October 2012 – 31 March 20131 July 2013 Period 21 April 2013 – 31 June 20131 October 2013 Period 31 July 2013 – 31 December 20131 April 2014 Period 41 January 2014 – 30 June 20141 October 2014 Period 51 July 2014 – 30 September 20141 January 2015

21. Financial management: steps 3.LP prepares Progress report and AfR and submits to the JTS 2.LP verifies that the expenditures presented has been validated by the controllers 4.JTS Verifies the Progress reports and Application for reimbursement + Declarations of the Controllers 6.Reimbursement of ERDF and IPA contribution to the LP by the Financial Transfer Unit 1.ERDF and IPA-I Project Partners collect documentation proving their expenditures, and get them validated according to the national control system 7.LP transfers ERDF and IPA contribution to Project Partners LP Deadline: 3 months from the end of the reporting period! Approval + reimbursement procedure: circa 3 months ! 5.Initiation of the reimbursement process by submitting the verified AfRs to the FTU

22. The LP Reimbursement of ERDF and IPA Funds to the LP LP submits the Progress Report and the Application for Reimbursement to the JTS for the deadlines given in the Subsidy Contract. JTS verifies and approves the Progress Report and Application for Reimbursement. After verification process by the JTS, reimbursement of ERDF and IPA contribution will be authorised by the Certifying Authority. Reimbursement of ERDF and IPA contribution to the EUR bank account of the LP indicated in the Subsidy contract. LP responsible to transfer the ERDF and IPA contribution of each project partner Bank statements on the project bank account have to be presented to the JTS with each Application for Reimbursement. Reimbursement

23. Financial management principles in the IPA integrated phase The application for reimbursement for ERDF and for IPA can not be submitted by the LP separately by funds The application for reimbursement for ERDF and for IPA can not be approved by the JTS separately by funds The ERDF and IPA contributions might be transferred separately by the Financial Transfer Unit, in case the requests of funds for ERDF and IPA are not authorized at the same time by the Certifying Authority, or the balance of the programme single bank account for the ERDF or IPA funding is not covering the amount to be reimbursed Reimbursement

24. The LP and the project partners have to consider the timeframe of the reimbursement of Funds (when setting the payment deadlines of contracts, mainly!) Reimbursement: timeframe

25. Ways of monitoring and audit: –Monitoring visits by the JTS –First level audit = validation of project expenditure at each reporting period –Second level audit = sample checking at the LP/PP location based on approved DoV Who can be audited: –Lead Partner –Project partners, 10 % partner List of documents that have to be retained UNTIL 31. 12. 2022 Monitoring and audit

27. During project implementation changes of provisions indicated in the AF might be needed Whenever a change is foreseen/needed, the JTS must be contacted immediately! Substantial changes: affecting the AF and SC, to be approved by the MA/MC Less significant changes: administrative changes, minor budget reallocation, the LP needs a prior confirmation of the JTS Special changes to be requested only once: budget reallocation between partners, budget reallocation among WP/BL exceeding the limit, prolongation of project duration Project changes

28. Substantial changes: -Partnership structure -Project objectives, activities, outputs, results -Budget reallocation among WP/BL exceeding the 10% limit -Budget reallocation between partners -Project duration LP shall immediately contact the JTS for support and for receiving information on the procedure / steps to take After all requested documents are submitted to the JTS, MA or MC will take a decision An Addendum to the SC will be signed between the JTS (on behalf of the MA) and the LP Project changes

29. Less significant changes: -Administrative changes -Minor budget reallocation between WP/BL below the 10% limit -Minor changes in the content (change of location of a certain event, changes in the time plan, etc.) LP shall immediately contact the JTS for support and for receiving information on the procedure / steps to take The LP needs a prior confirmation of the JTS No involvement of the MA/MC Changes to be reported in the Progress Report of the given reporting period Project changes

30. Special changes to be requested only once: -budget reallocation between partners (not linked with partnership change) -budget reallocation among WP/BL exceeding the 10% limit -prolongation of project duration LP shall immediately contact the JTS for support and for receiving information on the procedure / steps to take After all requested documents are submitted to the JTS, MA or MC will take a decision An Addendum to the SC will be signed between the JTS (on behalf of the MA) and the LP Project changes

31. Budget reallocation between WP/BL: 10% limit -Calculated cumulatively on project (not on partner) level -The original budget allocation as defined in the AF is kept as reference -First the difference between the cumulated real costs (validated and reported) of a WP/BL and the originally planned ones are calculated -Then the positive differences are summed up and compared to the total project budget of ERDF and IPA PPs Tools: A report can be generated from the IMIS FO (Financial progress per project partner) indicating the deviation at PP and at project level An excel table with pre-defined formulas has been prepared by the JTS for supporting LPs Project changes: 10% limit

32. LP has to ensure that each PP strictly follows its spending forecast according to the AF (and SC) Deviation from spending forecast are possible BUT in case of underspending the MA is entitled to decommit the project by reducing the original project budget and Community contribution (ERDF and IPA funds), unilaterally or as a consequence of a Programme decommitment from the EC Decommitment

33. Financing Agreement Signed by all the parties: Serbia and Montenegro Signed by the EC and MA: Albania, Croatia, Bosnia and Herzegovina, Former Yugoslav Republic of Macedonia Timeframe IPA FAs should be signed by respective IPA National body by late autumn IPA Integration

34. IMPORTANT: No pre-financing of the project (as it was the case in the 1 st and 2 nd CfPs) 85% of the validated costs shall be reimbursed to the IPA – I PPs Keep the internal deadline set by the LP for submission of the documents in order to enable the LP to submit the Application for Reimbursement along with your Declaration on validation on time The expenditure of the project partners not validated for the given reporting period within the deadline can be requested only for the next reporting deadline to the reporting period concerned IPA Integration

35. Important SEE Programme documents: SEE Operational Programme SEE Programme Manual v. 3.2 SEE Implementation Manual v. 4.0 SEE Control Guidelines v. 4.0 User’s Guide for Reporting v. 1.0 SEE website: www.southeast-europe.netwww.southeast-europe.net Internal project documents Best wishes for a successful partnership and project implementation!