Introduction Manual provides practical information and guidance on the procedures (administrative, financial management, monitoring, reporting, accounting and visibility) BUT does not replace the obligations and provisions set out in: Practical Guide to contract procedures for EC external actions 2008, Special Conditions (SC), General Conditions (GC), Grant Contract.

1. Communication with JMA It is the responsibility of the Lead Partner (LP) to: communicate with the JMA and give a regular updated picture of the development of the project. The JMA is the contact point for any required guidance throughout the project implementation process.

2. Project reporting EMOS is used for reporting: Payment request, Narrative Interim and Financial Report, Narrative Final Report Reports inform the JMA on: progress of the project, delivered outputs, achieved results, faced difficulties, spent resources, help it monitor the implementation of the actions. prerequisite to receive further instalments of pre-financing/interim payments and final payments. If the formation delivered in the reports is insufficient, the JMA will ask for further information

2. Project reporting – Interim report(s) Interim report(s) must be submitted to the JMA together with the payment request or at least one time per year. The Interim report includes the following parts: Narrative Interim and Financial report (in EMOS); Expenditure verification report (PraG Annex VII) issued by the auditor must be attached to each interim report in case a payment request is submitted; Examples of the produced material related to the visibility actions; Any other supporting documents required. NOTE: Norwegian Partners do not need an audit report when sending the Interim report. The audit report has to be sent to Norwegian Branch Office (Vadsø) only when sending the Final Report.

2. Project reporting – Final report It has to reach the JMA within three monthsafter the end of the Project The Final report should cover: the whole project implementation period information concerning the implementation of activities, inputs and the results accomplished experiences gained / ‘lessons learnt’ The Final report consists of the following sections: Narrative Final Report (in EMOS) and Financial report; Expenditure verification report issued by the auditor (PraG Annex VII); Examples of the produced material related to the visibility actions; Any other supporting documents required.

2. Project reporting – Project updates Project update has to be submitted: at the request of the JMA or by own initiative of the LP when changes are needed (project plan and/or project budget) Project updates should be done in EMOS and submitted within 15 working days after the JMA’s request.

2. Project reporting – Submission of reports All the reporting required: Interim and Final reports Project updates – must be: submitted to EMOS signed original paper version sent to JMA

2. Project reporting – Reporting formats All reports should be submitted in English and follow the structure of templates. Report should give: detailed picture of project activities and achievements, picture of problems, if any assessment of cooperation between the project and local/regional stakeholders impact assessment of project activities.

2. Project reporting – Indicators In the financing application, indicators of achievement have been given, and the numbers are estimated. In the Interim reports part of EMOS, results concerning the indicators have to be given – realized, as far as possible. give the results achieved during the reporting phase only.

2. Project reporting – Indicators reporting the indicators is part of the reporting! who is responsible in the project organizations for the collecting of indicator data? it can be done as systematically as the rest of the routines that serve reporting

3. Financial reporting requirements - Eligibility of costs Eligible costs are only costs that were recorded to project bookkeeping during the project implementation period NOTE: exceptions to this rule are the costs of final expenditure verification, final evaluation and preparation of the final report. Please note that under EC rules, costs can only be included in financial reports after the actual payment of the invoice is made. actual payment for eligible costs can be made after the end of the project; however payment needs to take place before the submission of the final financial report.

3. Financial reporting requirements - Supporting documents project must keep up of supporting documents for all expenditure (receipts, invoices, bookkeeping records etc.) originals must be kept in the project’s accountancy files for at least 7 years after the receipt of the final balance payment (in case of Norway 10 years) General ledger and specification: Template is available in programme´s web pages has to be used if information of the motive of the cost is not available in the general ledger itself

3. Financial reporting requirements – Supporting documents Supporting documents for purchased equipment include: Tender documentation (according to PraG Annex IV and Guidelines for Grant Applicants): list from whom the offers has been asked, copy of the letter of invitation to tender, list of submitted offers, summary of comparison, basis for the decision; Copy of invoices; Copy of payment documents (cash receipt or payment order); Certificate of Origin (on purchase of more than 5000 euro). NOTE: According to Financing Agreement, Public Russian organizations follow only the Russian national legislation.

3. Financial reporting requirements - Audit–Expenditure Verification The payment requests should be supported with a Report of Factual Findings (Expenditure Verification). Expenditures should be verified as actually incurred, accurate and eligible. Each beneficiary has to designate a competent auditor (approved by the JMA) who verifies at least 65% of the total expenditure Each partner is required to submit to the LP the expenditure verification report for its part. Procurement rules has to be obeyed also when choosing the auditor. If the organization has already the external auditor who fulfils the criteria, it can be used. Projects can be also a subject to an audit verification by the European Commission or JMA´s auditor

3. Financial reporting requirements - Use of EUR Payments will be made in Euro only. NOTE: The Norwegian financing is paid in Norwegian crone (NOK). Any amount originally invoiced in other currency than Euro must be converted into Euro (InforEuro) NOTE: any currency exchange losses are not eligible costs!

4. Payment schedule Fixed timetables are not stated to the project in the beginning Reporting depends on the use pre-payments When 70 % of pre-payments has been used in project level, LP can submit interim report If the report has been made earlier, the unused pre-payment is deducted from the next pre-payment If more than pre-payment is used, exceed can be paid according to real costs. Project can also use fixed reporting timetables, if it´s more practical. The 70% rule should fullfil in these cases. Fixed timetable must be agreed by JMA.

5. Contract amendments Grant contracts can be modified for duly justified reasons if the circumstances of project implementation have changed significantly. When changes are being proposed, NOTE the following: grant contract can be modified only within the execution period of the contract; no modifications can be made retroactively; maximum grant amount of the Grant contract cannot be increased; request for changes must be submitted to JMA at least one month before the required changes have to enter into force.

5. Contract amendments - through an addendum Contract amendments in the form of an addendum are used for: Modification of budget headings exceeding 15%; Changes of the planned activities, if allowed by the JMA; Change of partner(s), if allowed by the JMA; Extension of the contract period. Signed by both contracting parties.

5. Contract amendments - without contract addendum Budget reallocations: change may be agreed by an exchange of letters (Project update) with JMA when the requested changes do not affect the basic purpose of the project and where the financial impact is limited to reallocations between budget sub-headings. NOTE: This method does not concern budget headings Contingency reserve Administrative costs. The Contingency reserve can never be used without prior written approval from JMA. Changes of project staff just notified to the JMA with a justification Changes of project address, bank account/name of organisation just notified in writing and provide a new, original Financial ID form or Legal Entity Form.

6. Visibility Detailed presentation by Senior Advisor Marjaana Lahdenranta

7. Closure of the project All actions should close the activities within the time frame indicated in the Grant contract. Final report has to be submitted to the JMA withinthree months after the end of the Project’s duration The Lead Partner must appoint a contact person for at least six months after the project’s end to enable a smooth closure of the project and communication with the JMA. The Programme rules on information and publicity must be respected for all products produced with the assistance from the Programme including the time after the closure of the project.

7. Closure of the project - Transfer of Ownership the equipment, vehicle and supplies purchased by the partner outside Programme’s eligible area must be transferred to the beneficiary and/or any partners located inside the Programme’s eligible area, at the latest by the end of the implementation of the Action. for equipment and vehicles of a unit cost of more than 5000 EUR at purchase, please fill in and sign the Transfer of Ownership and attach it in original to the final financial report.

7. Closure of the project - Interest accrued Only for final report: a statement by the bank on the amount of interest accrued on the balance of EC pre-financing payments should be submitted If the Beneficiary is a part of the administration of EU Member State any interest accrued from pre-financing remains the property of the Beneficiary and does not reduce the final amount to be received from the Contacting Authority. In case of the Russian Beneficiary, received interest is deducted from the final balance payment

Thank you for your attention!

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