grant implementation workshop belgrade, 4 th june, 2014

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Republic of SerbiaMinistry of Labour, Employment,

Veteran and Social Affairs Republic of SerbiaMinistry of Health

Enhancing the position of Residents in Residential Care Institutions for Persons with Mental Disability and Mental Illness and creation of Conditions for their Social Inclusion in the Local Community

Project funded bythe European Union

Grant Implementation Workshop

Belgrade, 4th June, 2014

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Contents• The PMU role and structure • Presentation of the general rules of EU grant

actions• Reporting requirements • Financial management of grants and

Procurement • Monitoring and risk management• Visibility requirements

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THE PMU ROLE AND STRUCTURE

(Grant Scheme Team within the Open Arms project)

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• 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

Role of the PMU (“Grant Scheme Team”)

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PMU Structure

Senior Grant Scheme Expert

Monitoring Expert Financial and Procurement expert Visibility Expert

Junior Grant Scheme Experts

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• Use email address: [email protected], 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: [email protected].

• In case of any questions or needs for consultations, the answer should be provided within 3 days maximum.

Communication

mailto:[email protected]



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How are the tasks conducted

Daily basis

•Day to Day Consultation re grant implementation and visibility materials

Monthly

•Submission of pre-monitoring reports

•Submission of Activity reports

•Submission of Visibility Calendar

Six months terms

•Regular Monitoring visits

•Evaluation meetings (based on monitoring reports)

Ad hoc

•Ad hoc visits•Support to preparation of reports to the CA

•Workshops (Finance and Procurement)

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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.

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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.

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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.

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GENERAL RULES OF EU GRANT ACTIONS

- Grant contract and its Annexes and Contract modification.

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- 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

Grant Contract

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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.

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Contract modifications

TARGETIMPORTANCE OF THE MODIFICATIONSIGNIFICANT

MODIFICATIONSMINOR

MODIFICATIONSApplicant legal status account/contact dataBeneficiaries withdrawal/addition legal statusActivities with budget changes no budget changesTimetable with duration changes no duration changesBudget transfers > 25% transfers 25%Personnel project team experts

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Steps to followBeneficiary 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

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Tool to Consult• Tool 1 – Contract Modification.

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REPORTING REQUIREMENTSInterim and Final reports

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Referential document/sections:• ANNEX II: GENERAL CONDITIONS

APPLICABLE TO EUROPEAN UNION-FINANCED GRANT CONTRACTS FOR EXTERNAL ACTIONS ARTICLES 2, 15 (except 15.7; 15.9)

• STANDARD GRANT CONTRACT • ARTICLE 7.3 - modification to the General

Conditions: 15.7; 15.9 and article 16• Option 1 and 2 of payment.

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Actions with an implementation period of more than 12 months and grant of

more than EUR 100 000

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Actions bellow 12 months• No interim report.

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

Contract

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Project funded bythe European Union Final report

• The Beneficiary submits a Final report on project implementation consisting of narrative and financial parts.

• Within 3 months 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,

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Templates to be used• Templates can be downloaded athttp://www.europa.rs/sw4i/download/files/article/Annexes%20to%20Guidelines.ZIP?id=1102

• Templates will be published on

otvorenizagrljaj.rs.

http://www.europa.rs/sw4i/download/files/article/Annexes%20to%20Guidelines.ZIP?id=1102



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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.

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Tool to consult• Tool 2 - Reporting

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FINANCIAL PROVISION

- Payment procedure- Eligibility of costs

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Documentary proofs on project implementation

1. 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.

2. Financial documentation of the project- The supporting documents evidencing the costs actually incurred under the project differ by type of expenditure.

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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.

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Payment procedureThe 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.

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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

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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.

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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

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PROCUREMENT

General principlesRules for procurementCommon procurement procedures

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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

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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

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Procurement – rulesBeneficiary’s role in procurementActs 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 documentsMust 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 deadlinesMust be long enough to allow interested parties a reasonable and appropriate period to prepare and submit their tenders.Evaluation committeeAll tenders declared as satisfying the requirements must be evaluated and ranked by an evaluation committee with an odd number of members, at least three.

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Common procurement proceduresService contracts

>= 300.000International restricted

<300.000 but >20.000Framework/ Competitive negotiated

<= 20.000Single tender

Supply contracts

>= 300.000International open

<300.000 but >=100.000Framework/ Local open

<100.000 but >20.000Framework/ Competitive negotiated

Works contracts

>= 5.000.000 International restricted/open

<5.000.000 but >=300.000Local open

<300.000 but >20.000Competitive negotiated

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Common procurement proceduresInviting 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.

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Minimum content of the TDALL 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 noticeService tendersTerms of Reference (ToR)Supplies and Works tendersTechnical specification / Bill of quantityOpen and Restricted tender proceduresPublished Procurement noticeRestricted tender proceduresShort list of invited tenderers: min.4 – max.8Negotiated and Single tender procedureLetter of invitation to tender: Negotiated – min.3; Single – min.1

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Selection process• Selection criteria

• Administrative compliance check• Technical compliance of tenders• Financial offer evaluation

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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.

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Tender evaluation reports- Single tender report- Negotiation report- Narrative interim and final report

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Tool to consult• Tool 3 Procurement (plus tender dossier

templates)

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VAT RULES

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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

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VAT Exemption – Basic rules

- No payments before the exemption is approved

- Services

- Delivery of original VAT Exemption Forms

- Corrections

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Tool to consult• Tool 3 – VAT exemption

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ARCHIVE AND FINANCIAL REPORTING

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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

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Financial reportingAnnex II: General conditions, Article 2 and Article 15

• Interim report• Final report• Detailed breakdown of Expenditures• Monthly pre-monitoring financial report

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Monthly pre-monitoring financial reportAnnex II: General conditions, Article 15.7 • Detailed breakdown of Expenditures• Monthly pre-monitoring financial report• The detailed breakdown of expenditure should provide the following

information: amount of the entry or transaction, accounting reference (e.g. ledger, journal or other relevant reference) description of the entry or transaction (detailing the nature of the expenditure) and reference to underlying documents (e.g. invoice number, salary slip or other relevant reference)

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Tool and Template to consult• Financial pre-monitoring template• Again Tool 2 - Reporting

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MONITORING

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Key issues • Purpose, methodology and dynamic of

monitoring process • Indicators and sources of verification • Key Program challenges

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Purpose of monitoring • To enable harmonization of projects with Program goals; • Purpose is to identify current status of the grant action progress in terms of

efficiency, effectiveness and impact production, as per predefined indicators. • To support project teams to timely overcome the challenges during project

implementation to document progress and results of project• To provide the necessary information to Management for timely decision

taking and corrective action (if necessary)• Monitoring visits is not inspection, policing, controlling and/or capacity

building.

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Dynamic and methodology of monitoring • Project team• Pre-monitoring monthly

reports submitted by project manager to PMU, no later than 5th in the month for previous month

• PMU • 4 Regularly monitoring field

visits during project duration• I round – 1st month • II round – 5th month• III round – 12th month • IV round – 17th month • Ad hoc monitoring visits if

necessary

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Pre Monitoring TemplateKey issues of assessment: 1. Time table 2. Budget 3. Indicators and sources of verifications: - Process and Impact indicators defined on Program level - Indicators defined on Project level (specific, not covered by Program level

indicators)4. Secondary procurement 5. Visibility activities 6. Issues to be brought to the attention of the PMU• List any issues, risks, or challenges that require the attention of the PMU. • List any question related to the project implementation you wish to ask the

PMU.

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Quality areas monitoredKey issues of assessment: 1. Overall progress of project activities and project

management2. Financial management of the project 3. Partnership and communication 4. Sustainability of the project on policy,

institutional and financial level 5. Visibility of the project

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What are the obligations of Project team? • To timely submit monitoring reports before;• To actively participate on regular and ad hoc monitoring

visits and to present project achievements, products, as well as to enable insight in project documentation;

• To provide support in organizing monitoring visits - to enable presence of project partners representatives, meeting with LSG representatives, meeting with direct service providers as well as services beneficiaries and other relevant stakeholders, if needed.

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INDICATORS AND SOURCES OF VERIFICATION

Monitoring = How are we doing? Indicators = How do we know? Source of verification = How we will prove that we know

what we are doing?

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Impact indicators

Number of beneficiaries to be deinstitutionalized

Number of people being prepared for

deinstitutionalization

Number of people from the community to receive

services

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Project funded bythe European Union Process indicators

• 1.1. Legal sustainability ensured - number and structure of relevant decisions adopted • 1.2. Financial sustainability ensured - Value of financial resources allocated for providing

established services

Indicator 1. Institutional sustainability of the service established

• 2.1. Number of prefabricated houses that are procured and functional for service providing and their surface.

• 2.2 Other structural standards will be monitored by Inspection

Indicator 2. Infrastructural capacities established

• 3.1. Number of professionals educated within the project• 3.2. Number of professionals engaged within the established services • 3.3. Number of PMD and PID empowered durign the activities realized within the project

Indicator 3. Human resources capacities enhanced

• 4.1. Number of promotional events • 4.2. Number of participants on promotional events • 4.3. Number of promo materials printed

Indicator 4The level of understanding the needs and problems of person with mental illness and mental disabilities in local communities increased

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Key challenges • Policy sustainability - Commitment of relevant

national and local institutions/organizations in achieving project and program goals;

• Institutional sustainability of established services;

• Financial sustainability of established services; • Stigmatization – general public

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Templates to consult• Pre-Monitoring Template

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VISIBILITY

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Why is visibility important?Basic Principles of Communication and Visibility: In order to be successful in communicating widely results achieved beneficiaries have to:

• Promote the project and the results achieved; promote the impact of the OPEN ARMS project and the support provided by the European Union

• General conditions applicable to EU financed grant contracts are placed in COMMUNICATION AND VISIBILITY MANUAL FOR EU EXTERNAL ACTIONS (2010)

http://ec.europa.eu/europeaid/work/visibility/documents/communication_and_visibility_manual_en.pdf




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Communication and Visibility Manual

Rules for EU brending • The Manual covers the written and visual identity of the EU. It sets out

requirements and guidelines for briefings, written material, press conferences, presentations, invitations, signs, commemorative plaques and all other tools used to highlight EU participation. In addition, it offers tools designed to enable the development of a dynamic communication strategy that will highlight the achievements of EU support.

• This manual contains compulsory requirements for all contractors and implementing partners under contracts and financing agreements which specifically refer to them, whether signed by the European Commission or by any other Contracting Authority.

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EU graphic identity (1)All projects should recpect the EU graphic identity. On all information materials and tools produced under the project there

should be the:• EU flag, and title: Project funded by the European Union (Annex 2). The flag

should be large enough to be clearly visible, and displayed at the same size as the logos of any other partners;

• All publications and other information tools (leaflets, broschures, websites) should contain contact information about OPEN ARMS project and EU Delegation in Serbia (www.europa.rs);

• DISCLAIMER (Annex 3) must be applied in all printed and electronic publications

(leaflets, broschures, newsletters, website). It should be displayed prominently on the inside cover or second page as appropriate, according to the layout.

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EU graphic identity (2)Disclaimer: Štampanje ove publikacije [... ovog lifleta/ove brošure...] pomogla je

Evropska unija. Sadržaj publikacije je isključivo odgovornost [... naziv odgovorne organizacije] i ne predstavlja nužno stavove Evropske unije.

This publication [or leaflet/or brochure...] has been produced with the assistance of the European Union. The contents of this publication are the sole responsibility of [name of the author/ contractor/ implementing partner] and can in no way be taken to reflect the views of the European Union.

www.otvorenizagrljaj.rs

http://www.otvorenizagrljaj.rs/

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Project promotion on social media• You are encourage to use social media for project promotion (FB, TW, Youtube)

• EU funds have to be mentioned

• With FB profile or page insert EU flag

• Inform project team about this activity

• Project team will provide support and establish link with EUIC website www.euic.rs and social media

http://www.euic.rs/

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Participation of DEU representatives on project event

During the project implementation grant beneficiaries are encouraged to invite to landmark events representatives of the Delegation of the European Union to the Republic of Serbia (press conferences, conferences, round tables, etc.)

If the grant beneficiary plans to invite high representatives of the DEU to participate in an event, it is necessary to send the written invitation at least 4 weeks in advance to the Project team:Project OPEN ARMSRuzveltova 61 11 000 Belgrade Тel: +381 11 27 66 178E-mail: [email protected]


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Useful links for visibility (Q&A) •http://ec.europa.eu/europeaid/work/visibility/index_en.htm•http://europa.eu/about-eu/basic-information/symbols/flag/index_en.htm •http://ec.europa.eu/europeaid/work/visibility/faq-contractual-obligations_en.htm

• http://ec.europa.eu/europeaid/work/visibility/faq-final-product_en.htm

http://ec.europa.eu/europeaid/work/visibility/index_en.htm



http://europa.eu/about-eu/basic-information/symbols/flag/index_en.htm




http://ec.europa.eu/europeaid/work/visibility/faq-contractual-obligations_en.htm

http://ec.europa.eu/europeaid/work/visibility/faq-contractual-obligations_en.htm

http://ec.europa.eu/europeaid/work/visibility/faq-final-product_en.htm




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Project team support• provide support in promotion of your activities

• establish coordination with all Grant Beneficiariesin order to coordinate visibility activities

• to obtain approval for all visibility materials from DEU (all materials - printed, audio and visual should be sent to the project team for checking EU visibility reqiurements on e-mail [email protected])


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Tool to Consult• Tool 5 – Visibility and Communication• Template - Monthly Visibility Calendar

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SUMMARY

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Templates• Pre-monitoring report• Pre monitoring financial report• Visibility calendar • All to be submitted on the 5th of the month

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Tools to be used• Tool 1 – Contract Modification (includes template for contract

modification request)• Tool 2 – Reporting (includes templates for Interim and Final report)• Tool 3 – Procurement (includes tender dossier for information)• Tool 4 - VAT (includes steps to take when requesting VAT

exemption)• Tool 5 - Visibility

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Steps• Read Contract!!!• Review project, request changes if needed• Take steps to start VAT exemption• Prepare procurement plan• Ask questions in case of need• Prepare yourself for the first monitoring visit.

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QUESTIONS?

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We wish you sucessful projects!

Thank you

grant implementation workshop belgrade, 4 th june, 2014

Documents