Grant Implementation Workshop Belgrade, 4 th June, 2014

1. Grant Implementation WorkshopBelgrade, 4thJune, 2014

2. Contents • The PMU role and structure • Presentation of the general rules of EUgrant actions • Reporting requirements • Financial management of grants and Procurement • Monitoring and risk management • Visibility requirements

3. (Grant Scheme Team within the Open Arms project) The PMU role and structure

4. Role of the PMU (“Grant Scheme Team”) • To provide assistance to the EUD and Beneficiary institutions (MoLSP, MoH) in implementation and monitoring of the Project • To support awarded grant beneficiaries in technical and financial reporting on implementation of selected actions • To contribute to Project information sharing and promotion

5. PMU Structure

6. Communication • Use email address: pmu.office@otvorenizagrljaj.rs, no individual emails to individual team members. • Copy number of your contract is all correspondence (CRIS number). • Emails will be forwarded to staff members in charge. • SGSE always copied. • English as primary language of correspondence. • For submission of visibility materials: pr@otvorenizagrljaj.rs. • In case of any questions or needs for consultations, the answer should be provided within 3 days maximum.

7. How are the tasks conducted

8. Where can you find info? • Produce periodical FAQ on grant implementation, based on your questions, available on the website of the project. • All tools on implementation (Contract modification, Procurement, VAT, Visibility, additional, if needed) – also on the website of the project. • All templates (Activity report, Pre-monitoring report, Visibility Calendar) – also on the website of the project.

9. Important note • PMU is not the Contracting Authority! Reports we will be requesting are in line with Article 2.4 of the GC. You are still obliged to produce mandatory reports, as per SC. • PMU only intermediates between you, as the grant beneficiary and the Contracting Authority.

10. Important note II • PMU is one segment of the Open Arms project, tasked with Grant Scheme implementation. • Other activities of the Open Arms project are not covered by this presentation.

11. -Grant contract and its Annexes and Contract modification. GENERAL RULES OF EU GRANT ACTIONS

12. Grant Contract - Special Conditions- Annex I: Description of the action- Annex II: General conditions- Annex III: Budget of the action- Annex IV: Contract-award procedures- Annex V: Request for payment- Annex VI: Final narrative and financial reports- In the event of conflict between the provisions of the Annexes and the Special Conditions, the provisions of the Special Conditions shall take precedence- In the event of conflict between the provisions of Annex II: General Conditions and those of the other annexes, those of Annex II General Conditions shall take precedence

13. Contract modifications • Any amendment to this Contract, including the annexes thereto, shall be set out in writing. This Contract can be modified only during its execution period. • The amendment may not have the purpose or the effect of making changes to this Contract that would call into question the grant award decision or be contrary to the equal treatment of applicants.

14. Contract modifications

15. Steps to follow Beneficiary prepares a Request for Contract Modification- Detail description and reasoning, copy of the respective part of the Contract revised and documents evidencing the necessity of the change, request for modifying the Budget Beneficiary submits Request for Contract Modification to the PMU- Beneficiary’s Request for Addendum must be submitted to the PMU at latest one month before the date on which the amendment should enter into force, but not later than two months before the deadline for implementation of the action.Checking the eligibility and substantiation of the Request- PMU checks the eligibility of the request, prepares justified proposal and forwards to the CA the Request for AddendumDecision on the Request- CA examines the Request and the proposal of the PMU and initiates addendum, if all requirements are metSigning the Addendum- The CA prepares an Addendum to the Contract and submitts the addendum tto the Grant Beneficiary

16. Tool to Consult • Tool 1 – Contract Modification.

17. Interim and Final reports Reporting requirements

18. Referential document/sections: • ANNEX II: GENERAL CONDITIONS APPLICABLE TO EUROPEAN UNION-FINANCED GRANT CONTRACTS FOR EXTERNAL ACTIONSARTICLES 2, 15 (except 15.7; 15.9) • STANDARD GRANT CONTRACT • ARTICLE 7.3 - modification to the GeneralConditions: 15.7; 15.9 and article 16 • Option 1 and 2 of payment.

19. Actions with an implementation period of more than 12 months and grant of more than EUR 100 000

20. Actions bellow 12 months • No interim report.

21. Interim report • Narrative and financial • templates in Annex VI of the Grant Contract

22. Final report • The Beneficiary submits a Final report on project implementation consisting of narrative and financial parts. • Within 3months after the implementation period (as defined in Article 2 of the Special Conditions) • extended to 6 months where the Coordinator does not have its headquarters in the country where the Action is implemented. • using the templates in Annex VI of the Grant Contract,

23. Templates to be used • Templates can be downloaded at http://www.europa.rs/sw4i/download/files/article/Annexes%20to%20Guidelines.ZIP?id=1102 • Templates will be published on otvorenizagrljaj.rs.

24. Important Note • PMU is planning to organize a session on reporting, similar to this one, in September(November) 2014. • Prior to submission of reports to the CA, you will submit the report to the PMU, for consultations, 1 month before the reporting deadline.

25. Tool to consult • Tool 2 - Reporting

26. - Payment procedure- Eligibility of costs FINANCIAL PROVISION

27. Documentary proofs on project implementation • Proofs for activities implemented - The technical project documentation being detailed enough to evidence not only the reality of the respective costs incurred, but also that the value for money principle is respected. • Financial documentationof the project - The supporting documents evidencing the costs actually incurred under the project differ by type of expenditure.

28. Verification of expenditures • referred to in Article 15.7 of Annex II • carried out by the Contracting Authority or any external body authorised by the Contracting Authority.

29. Payment procedure The payment procedure is set out in Article 4.1 of the Special Conditions and regulated by Article 15 of Annex II: General Conditions. Payment of the grant will be executed in three tranches:- Initial pre-finance- amounting to 100 % of the part of the estimated budget financed by the CA for the first reporting period within 30 days after signature of the Contract by both parties;- Further pre-finance payment amounting to 100 % of the part of the estimated budget financed by the CA for the following reporting period within 60 days of receipt of the payment request by the Contracting Authority;- Balance payment – within 60 days of the CA approving the final narrative and financial reports, accompanied by a request for payment of the balance.

30. Payment procedure - If at the end of the reporting period the part of the expenditure actually incurred which is financed by the Contracting Authority is less than 70 % of the previous payment (and 100 % of any previous payments), the further pre-financing payment shall be reduced by the amount corresponding to the difference between the 70 % of the previous pre-financing payment and the part of the expenditure actually incurred which is financed by the Contracting Authority

31. Eligibility of Costs • They are incurred during the implementation of the Action as specified in Article 2 of the Special Conditions; • they are indicated in the estimated overall budget for the Action; • they are necessary for the implementation of the Action; • they are identifiable and verifiable; • they comply with the requirements of applicable tax and social legislation; • they are reasonable, justified and comply with the requirements of sound financial management.

32. Eligibility of Costs • the cost of staff assigned to the Action, corresponding to actual gross salaries • travel and subsistence costs for staff and other persons taking part in the Action • purchase costs for equipment and supplies • costs of consumables • costs entailed by contracts awarded by the Beneficiary(ies) for the purposes of the Action • costs deriving directly from the requirements of the Contract (dissemination of information, evaluation specific to the Action, translation, reproduction, insurance, etc.) • Indirect eligible costs – administrative costs

33. General principles Rules for procurement Common procurement procedures Procurement

34. Procurement – general principles - The procurement procedures are set out in Article 10 of the Annex II: General Conditions and Annex IV: Contract-award procedures. - Equal treatment- Non-discrimination- Transparency- Fair competition - No artificial split of procurement threshold

35. Procurement – rules - Eligibility criteria – nationality and origin- Grounds for exclusion- Administrative penalties - Reports on the procurement procedure - No retro activity- Standards documents used- Record keeping

36. Procurement – rules Beneficiary’s role in procurement Acts as contracting authority and is responsible for issuing invitations to tender, receiving offers, chairing tender evaluation committee, deciding on the results of the tender procedure, awarding to and signing the contract with the successful tenderer. Tender documents Must be drafted in accordance with best international practice. If they do not have their own documents, Beneficiaries may use the models published on the European Commission’s web site relating to external actions. Tender submission deadlines Must be long enough to allow interested parties a reasonable and appropriate period to prepare and submit their tenders. Evaluation committee All tenders declared as satisfying the requirements must be evaluated and ranked by an evaluation committee with an odd number of members, at least three.

37. Common procurement procedures

38. Common procurement procedures Inviting tenderers • Open and Restricted tender procedures at international and local level - Publishing the procurement notice on beneficiary’s website and in all appropriate media and specialised periodicals • Negotiated and Single tender procedures - Sending individual letters of invitation to potential tenderers identified by the Beneficiary to at least three tenderers Award criteria • The contract must be awarded to the most economically advantageous tender (i.e., the tender offering the best price-quality ratio), which is identified in an evaluation process of quantifying the degree to which a supplier’s quotation offers the best value for money over other offers received. The criteria considered may include factors such as price, delivery date, compliance to specification, account management etc.

39. Minimum content of the TD ALL tender procedures - Instruction to tenderers - Tender submission form - Declaration referred to in p. 7 of the Tender submission form (each consortium member)!!! - Administrative/Evaluation grid (to be used in evaluating the offers) - Draft contract with all annexes (to be used for sub-contracting the successful tenderer) - The language of the grant contract shall be the language of the tender dossier English - Procurement notice Service tenders Terms of Reference (ToR) Supplies and Works tenders Technical specification/ Bill of quantity Open and Restricted tender procedures Published Procurement notice Restricted tender procedures Short list of invited tenderers: min.4 – max.8 Negotiated and Single tender procedure Letter of invitation to tender: Negotiated – min.3; Single – min.1

40. Selection process • Selection criteria • Administrative compliance check • Technical compliance of tenders • Financial offer evaluation

41. Selection process - Conclusion • Award the contract to the tenderer which has submitted a tender: • which complies with the formal requirements and the eligibility rules; • whose total budget is within the maximum budget available for the project; • which meets the minimum technical requirements specified in the tender dossier; and • Service contracts • which is the best value for money (satisfying all of the above conditions). • Supply and Works contracts • which is the least expensive tender (satisfying all of the above conditions). • Cancel the tender procedure in case: • no qualitatively or financially worthwhile tender has been received or there is no valid response at all; • all technically compliant tenders exceed the financial resources available; • there have been irregularities in the procedure, in particular where these have prevented fair competition, etc.

42. Tender evaluation reports • Single tender report • Negotiation report • Narrative interim and final report

43. Tool to consult • Tool 3 Procurement (plus tender dossier templates)

44. VAT rules

45. VAT Exemption – steps to follow - Prepare a Copy of the Contract between the Beneficiary and the EUD- Prepare a Specimen of Signatures- Request a Pro Forma Invoice- Fill out a PPO-PDV Form (3 copies)- Submitting VAT forms to supplier/ service provider

46. VAT Exemption – Basic rules - No payments before the exemption is approved- Services- Delivery of original VAT Exemption Forms - Corrections

47. Tool to consult • Tool 3 – VAT exemption

48. Archive and financial reporting

49. Project archive • Annex II: General conditions Articles 16.7-16.9 • The Beneficiary(ies) shall keep all records, accounting and supporting documents related to this Contract for five years following the payment of the balance- Financial documentation- Proves for activities implemented

50. Financial reporting Annex II: General conditions, Article 2 and Article 15 • Interim report • Final report • Detailed breakdown of Expenditures • Monthly pre-monitoring financial report