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

2. 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 Start of implementation

3. 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 Implementation period

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

5. 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 EU’s 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 V I S I B I L I T Y

6. 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 and can in no way be taken to reflect the views of the European Union.’ V I S I B I L I T Y

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. 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 C O N T R A C T

10. 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 %!) Modification of the Action

11. 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 Limited amendments

12. Limited amendments - example ➙ Contact your JTS programme manager in case of doubt and to keep him/her informed in any case!

13. 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 5%+5%) 1 st installment (80% of 90%) – 147 986,50 EUR SK – 69 620,22 EUR 70% threshold – 48 734,15 EUR –request for fin. verification B U D G E T

14. 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 B U D G E T

15. 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. 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. 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) Human resources

18. 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) Identification data Short description of daily tasks # of daily hours in project Calculation of monthly cost and amount of time in “unit rate” Signatures

19. 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 Costs

20. 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. 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. 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. 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/index_en.htm http://ec.europa.eu/europeaid/work/visibility/index_en.htm In case of events, the related document, as in case of travel

24. 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. 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. 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 beneficiary’s 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 Contractor’s 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/customs_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/implementation/pract ical_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. 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. Confirming docs of action

35. 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 REPORTING