IMPLEMENTATION OF GRANT CONTRACTS UNDER CARDS 2004 PART I

1. IMPLEMENTATION OF GRANT CONTRACTS UNDER CARDS 2004 PART I • “Social Service Delivery by the non- profit sector“ • "Support to Civil Society Organizationsactive in the Field of Environment Protection and Sustainable Development”

2. Topic 1.Monitoring 2.Visibility requirements 3. Final Publication  Questions & answers

3. Decentralised Implementation System Central Finance and Contracting Unit (CFCU) Succesfull applicant • GRANT CONTRACT • roles and responsibilities • of each contractual side Ex ante control Monitoring of grant scheme Monitoring & Support Government office for co-operation with NGOs Delegation of the European Comission

4. Decentralised Implementation System CFCU = CA (Contracting Authority)  Signs contract  Carries out payments Monitors implementation – financial side  Provides guidance and supervision DELEGATION OF EUROPEAN COMMISSION  Performs ex-ante control  Provides guidance and supervision towards CFCU GOVERNMENT OFFICE FOR CO-OPERATION WITH NGOs (Project Implementation Unit) Monitors implementation – technical side  Provides guidance andsupervision

5. Monitoring & Reporting • Monitoring performed by  1st level monitoring- GOfNGOs ■ GOfNGOs checks reports (quarterly, interim and final) and verifies them in relation to CFCU ■ GOfNGOs visits all projects at least once during the lifetime and checks “on the spot” project mangement and financial management  Final approval- CFCU ■ checks financial side of reports, based on verification of narrative part by GOfNGOs

6. GRANT BENEFICIARY  Signs contract with the CFCU • Implements Action in the following manner: ■So that results are delivered as specified ■ Efficiently and effectively with respect to financial, material and human resources ■ According to set rules and procedures  Reports to the CA and GOfNGOs  Responsible for carrying out the action and sound financial management (also for the partner’s part)

7. Visibility Beneficiary must publicise EU financing  Visibility measures must comply with visibility rules – see Guidelines at: http://europa.eu.int/comm/europeaid/visibility/index_en.htm  Any project output will be promoted by using appropriate Communication tools as described in Guidelines

8. Visibility EC Communication Tools • Press releases • Press conferences • Leaflets and brochures • Newsletter • Web page • Display panels • Commemorative plaques • Banners • Vehicle panels • Promotional items

9. Press release Leafleat

10. Report / brochure Newsletter

11. Studies and reports Visibility Use report template available in the Visibility Guidelines  Insert disclaimer:"This publication has been produced with the financial assistance of the European Union. The contents of this document are the sole responsibility of <name of the author/contractor/implementing partner> and can under no circumstances be regarded as reflecting the position of the European Union.“ Issue at least one press release

12. Supplies and equipment Visibility Any supplies or equipment must visiblycarry the EU logo and the mention“Provided with the support of the EU” in English and in Croatian.  Issue at least one press release • Infrastructure • Use display panels & commemorative plaques in accordance with EC Visibility guidelines to publicize any infrastructure works (roads, bridges, building, houses, etc.) Issue at least one press release

13. Visibility Events  Those attending EU-funded training courses, conferences, seminars, fairs, exhibitions and workshops mustbe made aware that the EU is financing the event  Invite CFCU and GOfNGOs  Use EU logo on any documents  Display EU flags and/or banners  Use display panels  Issue at least one press release

14. Introduction; About the Programme List of all co-financed projects Basic information of the Beneficiary (Address, Phone, Fax, e-mail, Project Leader, Project Value, Total Project Costs, Amount of Grant, own contribution, Website) Partners Purpose, Objectives, Problem issues Target Groups Results and added value Impact of the partnership Cross border impact (if applicable) Sustainability FINAL PUBLICATION

15. THANK YOU FOR YOUR ATTENTION Contact: CARDS2004.pitanja@uzuvrh.hr

16. Workshop for Successful Applicants PART II Grant Schemes “CARDS 2004” Social Service Delivery by the Non-Profit Sector” and “CARDS 2004 “Support to Civil Society Organisations active in the Field of Environment Protection and Sustainable Development” July 2007

17. Project implementation and narrativereporting • Principles for successful project implementation • Reporting on project implementation • Narrative reports • Amending contracts • Q&A

18. 1. PRINCIPLES FOR SUCCESSFUL PROJECT IMPLEMENTATION • Time management • Human resource management • Communication • Quality control and quality assurance • Risk management • Financial management • USE THE AVAILABLE ASSISTANCE – Monitoring Experts and GOfNGOs

19. 1. Principles for successful project implementationTime management(1) • Meeting project schedule gives a good chance of staying within their project budget • Frequent problems encountered: • Lack of resources (time,people) to complete the tasks sequentially • Overlapped tasks - several happen at the same time • Recomendations: • Identify the tasks with some flexibility from those with zero flexibility concerning the start and finish date • The Project Manager's key time management task is to manage those without flexibility.

20. 1. Principles for successful project implementationTime management(2) • Also: • Use an activity tracker, based on the activity planner, which supports the report • Use a finance tracker, based on the finance planner, which supports the report • Use an objective tracker - for use at project reports

21. 1. Principles for successful project implementationHuman resourcemanagement • Managing the people resources means: • Having the right people, with the right skills and the proper tools, in the right quantity at the right time. • For the project purpose: • Hold at least once at week regular narrower project team meeting (project manager, assistant, activity leaders, book keeper…) • Ensure that they know what needs to be done, when, and how. • Motivate them to take ownership in the project too. • Keep personnel time sheet tracking (working hours, travels…) • Hold at least once at month meeting with partners (subcontractors, collaborators, stakeholders…) • Maintain good communication

22. 1. Principles for successful project implementationCommunication • Within the organization - clear responsibilities, decision making process and established communication channels are important for successfulproject implementation • Among the partners and partner organizations • Possible problems in partnership cooperation: • Different opinions • Only declarative participation • Partnership as a way of realization own goals • To avoid misunderstandings use all means of communication : • Telephone, fax , mail; Formal and informal meetings; Common documentation exchange / creation ; Common appearance in media; Common visiting beneficiaries; …

23. 1. Principles for successful project implementationQuality control (1) • Each project has to fulfill specific quality task. • The most important elements of that task are: • Quality assurance: • Refers to the process used to create the deliverables • Project auditors can perform a quality assurance review on your project • Quality control: • Used to verify that deliverables are of acceptable quality and that they are complete and correct • Refers to project indicators • Can be tested through theevaluation

24. 1. Principles for successful project implementationQuality control (2) • Evaluation: • External and Internal • Internal measure • Quantity: • Activities – comparing with plan from contracting document and expressed in % (obligatory in quarterly report) • Number of beneficiaries - (standard documentation as statistics, list of participants, numberof web site visitors, registration forms…) • Quality: • Evaluation forms, beneficiaries feed back, press clipping…

25. 1. Principles for successful project implementationRisk management(1) Risks could be defined on two ways: • Cause of the situation: 1.1. External • Project assumptions are not accomplished • Influence of not included solution strategies • Money problems … 1.2. Internal • Staff changes • Low service quality • Lack of volunteers … • Consequence : • Budget will be exceeded • Goals not achieved • Time limits will be

26. 1. Principles for successful project implementationRisk management(2) Four things for risk response: • Avoid the risk. Do something to remove it. Use another contractor or collaborator for example. • Transfer the risk. Perhaps a partner can be made responsible for a particularly risky part of the project. • Diminish the risk. Take actions to reduce the impact or chance of the risk occurring. If you need to add or change some activities for example, you can start the procedure for set up the contract addendum(only if really necessary) • Accept the risk. The risk might be so small the effort to do anything is not worth while.

27. 1. Principles for successful project implementationFinancial management • In this case covers the policies and practices regarding accounting, reporting, auditing, organizational management and personnel of a project • Important : • Strictly respect all book-keeping rules and low in force • Have separate expenditure tables form other donors • Manage with care and keep well all documentation as bills, treasury book, payment and pay-in receipts, authoring and work contracts, belonging calculations… all will be the subjects of control (Art.16 GC) • Use attached templates as: • Time sheet; • Project participant’s payment review; • Statement of expenditure on actual work; • Information on procurement; • Mid term / Final progress report; • Traveling expenses form

28. Reporting on project implementationReports: • Quarterly, Interim, Final Report • Narrative and financial section • Cover action as a whole, regardless of which partis financed by EC • In English; signed by person responsible for project • No need to attach bills and receipts. They will be subject of “on the spot” control • Approved if no written reply within 45 days • CFCU any time may request additional information; tobe supplied within 30 days

29. 2. Reporting on project implementation:Narrative Reports • The Report must be completed and signed by the Contract person; • The information must correspond to the financial information that appears in the Financial Report; • The Contracting Authority will reject any incomplete or badly completed reports; • The answer to all questions must cover the reporting period. • Names of actions and activities (nomenclature) should be consistent with those in project contract.

30. Reporting on project implementation:Quarterly Reports • Every three months • Deadline: in 30 days after exceeding the period • Only narrative (with indication of amount spent) • Short description of activities undertaken and planned • Presentation of changes in budget headings • Send by e-mail to: • GOfNGOsinfo@uzuvrh.hr • DEK (rima.joujou@ec.europa.eu ) • CFCU (ivan.serdarusic@mfin.hr ) • After applied corrections, to return by e-mail

31. 2. Reporting on project implementation:Interim Report • After 12 monthsor unless other specified* (Art. 4.1. SC) • Deadline: 30 days after exceeding the period • Narrative and financial section • Shall include a work-plan for the next phase of the Action’s implementation • Must accompany every request for payment • It has to be approved. • Sendby e-mail to: • GOfNGOs info@uzuvrh.hr • DEK (rima.joujou@ec.europa.eu ) • CFCU (ivan.serdarusic@mfin.hr ) + hard copy • After applied corrections, send again by e-mail and signed hard copy by post to CFCU

32. 2. Reporting on project implementation:Final Report • No later than 3 months after the implementation period • Narrative and financial section • Annex with proof of transfer of ownership • Audit report - attached to Final report (and request for payment of balance), if grant > €100.000 • To be sent: • GOfNGOs info@uzuvrh.hr • DEK (rima.joujou@ec.europa.eu ) • CFCU (ivan.serdarusic@mfin.hr ) + hard copy • After applied corrections, send again by e-mail and signed hard copy by post to CFCU

33. 2. Reporting on project implementation Audit Report • Attached to Final report (and request for payment of balance), if grant > €100.000 • By approved auditor – a member of an internationally recognized supervisory body for statutory auditing (or a member of Croatian Audit Chamber) • Auditor examines whether declared costs are real, exact and eligible

34. Amending contracts • Any change to Action/budget must be set out in writing in a Addendum to the contract(PRAG E10) • Request to CFCU at least 1 month before it will enter into force, preferably 2 months before • Request must be substantially justified! • Maximum grant amount cannot be increased • Request cannot cause change of initial competition conditions • Addendum has to be signed by both parties and endorsed by ECD before entry into force

35. Amending contracts • No retroactive modifications! • Reallocation between Administrative costs and other budget headings not allowed • Addendum not necessary if: • Basic purpose of the Action not affected • Financial impact is transfer within same main budget heading or between main budget headings involving variation of <=15% of the original amount of the heading • Still: prior consultation with CFCU via e mail!

36. THANK YOU FOR YOUR ATTENTION! questions, GOfNGOs CARDS2004.pitanja@uzuvrh.hr

37. PART IIIProject implementation • Financial Provisions • Financial Reporting • VAT exemption • Procurement by Grant beneficiaries (Annex IV of the Contract)  Questions & answers

38. OPTION 1. – Actions with an implementation project < 12 months Project Start – Pre-financing: 80% of budget within 45 days of receipt by CFCU of: Signed contract by both parties Request for payment (Contract Annex V) Project End – the balance (20%) within 45 days of CFCU approving the final report Final Report Request for payment (Contract Annex V) OPTION 2. – Actions with an implementation period > 12 months Project Start – Pre-financing: 80% of budget within 45 days of receipt by CFCU of: Signed contract by both parties Request for payment (Annex V) End of Year 1 - Further pre-financing: 12-months budget within 45 days of receipt by CFCU of: Interim Report Request for payment (Annex V Project End – the balance (20%) within 45 days of CFCU approving the final report Final Report Request for payment (Contract Annex V) I. Financial provisions - Payment procedure

39. Financial provisions • Further pre-financing only if 70% of previous payment has been spent!!! • If request inadmissible (no supporting docs, amount not due..), CFCU may suspend 45-days time limit • In case of late payments – beneficiary can claim interest • Payments made to separate bank account

40. Financial provisions • Payments made in HRK to Croatian entities/ in EUR to foreign entities • Interests on pre-financing – mentioned in reports and refunded! • In case of late refund – CFCU can claim interest!

41. Financial provisions -Accounting and Financial Management REMINDER - Eligible costs are: • Necessary (connected to activity!) • Stipulated in the Budget • Cost-effective • Recorded in accounts, identifiable, verifiable and backed by originals

42. Financial provisions: Accounting • According to Croatian accounting rulesand Practical Guid to Contract Procedures for EC External Actions (PRAG), but: double-entry book keeping, either as part of regular system or as separate system!!! • Beneficiary as well as partners!!! • Clear and easy reconciliation between: activity  original supporting documents  accounts financial reports Refer to the recommendations in the Financial Management part

43. VAT (PDV) exemption • CARDS grant contracts are exempt from Value Added Tax (VAT) and customs charges • VAT is not eligible cost, unless the Beneficiary (or, where applicable, his partners) cannot reclaim it and the applicable regulations authorise coverage of taxes • Grant beneficiaries must obtain VAT & customs exemption certificate from CFCU, based on the pro-forma invoice of the subcontractor WITHOUT VAT and custom charges • The beneficiary sends theVAT exemption form(3 originals) with the Pro-forma invoice (VAT = 0) to CFCU • Make a reference to Budget item that the cost relates to!!

44. II. Financial Reporting • Forecast budget and follow-up • Interim Financial Report • Final Financial Report • Supporting forms

45. Forecast budget and follow-up • CFCU– in contract, for information purposes only: it allows the follow-up by operational and financial services. • It concerns forecasts and also allows to observe adaptation capacity in revising forecasts and their implementation.

47. Interim/Final Financial Report Expenses: for each currency in which the budget has been implemented during the specific reporting period (including the € where the exchange Fx rate into € will be = 1 ) the report will: establish the exchange rates (local currency > €) to be used by having, for the period, the simple arithmetical average of the InforEuro exchange rate InforEuro is freely available at: http://europa.eu.int/comm/budget/inforeuro/index.cfm?language=en

50. Supporting Forms INVOICES BY BUDGET HEADING • Support for monitoring of expenses by budget headings in align with the project budget and interim/final financial report • Excel file on the CD ROM