European Commission Directorates General Environment and Climate Action

Transcription

1 European Commission Directorates General Environment and Climate Action Application guide July 2013 NGO operating grants Call for proposals for funding in 2014

2 The guide includes detailed information on the call for proposals and advice on how to prepare applications

3 TABLE OF CONTENTS 1. USEFUL ADDRESSES WHAT IS NGO FUNDING? WHICH ORGANISATIONS CAN BE CO-FINANCED? HOW MUCH WILL THE COMMISSION GRANT? HOW, WHEN AND WHERE TO SUBMIT A PROPOSAL? HOW ARE BENEFICIARIES SELECTED? MAIN FINANCIAL AND MANAGEMENT RULES HOW TO PREPARE AND DRAFT A PROPOSAL KEY REFERENCES AND WHERE TO FIND THEM CHECK LIST AND LIST OF SUPPORTING DOCUMENTS DATA PROTECTION AND MANAGEMENT... 37

4 1. Useful addresses 1. Commission Services NGO Funding is managed by unit E4, LIFE Environment, in the Directorate General Environment (DG ENV). Postal address: EUROPEAN COMMISSION DG Environment Unit E.4, NGO team B-1049 BRUSSELS address: INTERNET: Delivery by hand, at the latest the day of the deadline for the call, no later than 17:00 (Monday-Thursday) and (Friday), is possible at the following address only: European Commission ENV/E/4 Central Mail Service Avenue du Bourget, 1 B 1140 Evere Contact person in the Commission is: SPENS Katharina, Telephone number (+32-2) address: env-ngo@ec.europa.eu 1

5 2. WHAT IS NGO FUNDING? Legal base Regulation (EC) No 614/2007 of the European Parliament and of the Council of 23 May 2007 concerning the Financial Instrument for the Environment (hereinafter referred to as the LIFE+ Regulation) 1 constitutes the legal basis for financial support to European environmental non-governmental organisations (NGOs) in the form of operating grants. In accordance with the multi-annual priorities defined in Annex 2 to the LIFE+ Regulation, one of the principal objectives 2 of the programme is to promote NGOs primarily active in the field of environmental protection and enhancement at a European level in the following priority areas of action: strengthening the participation of NGOs in the dialogue process in environmental policy-making and in its implementation, strengthening the participation of NGOs in the European standardisation process in order to ensure balanced stakeholder representation and the systematic integration of environmental aspects. Objectives Operating grants are intended to provide financial support for the existence and functioning of a body over a period equivalent to its financial year. They cover the normal operating expenses which enable the organisation to have an independent existence and implement its work programme. In view of the nature of the grant, the body's entire budget is involved, unless the body has developed areas of activity that are not connected with the activities for which the Commission wishes to provide financial support. The objective of this call for proposals is to co-finance the operating costs of European environmental NGOs in relation to activities provided for in their annual work programme that involve contributing to the implementation and/or development of EU environmental policy and legislation in Europe. Activities outside of the EU borders are eligible for funding only if they provide direct added value in one or more of the EU Member States for the implementation, updating or development of EU environmental legislation. The main focus of the work programme should relate to the following thematic objectives: To protect, conserve and enhance the Union s natural capital To turn the Union into a resource-efficient, green and competitive low-carbon economy To safeguard the Union s citizens from environment-related pressures and risks to health and wellbeing These thematic objectives are described in detail in the new Environment Action Programme for the EU entitled "Living well, within the limits of our planet, see The EU contribution aims at facilitating the implementation of a work programme, which could not otherwise be implemented without the support of the European Union. The 1 2 OJ L 149, , p.1. Principal objective n 15. 2

6 financial contribution is based on the co-financing principle. It is only a supplementary financial contribution, additional to local, regional, national contribution and/or private contributions obtained for implementing the work programme of the organisation. Available budget The indicative available budget for this call for proposals is EUR This call for proposals is launched pending the approval of the corresponding appropriations by the budgetary authority. As a consequence, the Commission reserves itself the right to abandon this call for proposals or to modify its amount, without the applicants being entitled to claim any compensation. All the applicants will be notified of the related decision. 3

7 3. WHICH ORGANISATIONS CAN BE CO-FINANCED? Consideration will be given only to proposals from organisations: 1. which are independent and non-profit-making, primarily active in the field of environmental protection and enhancement with an environmental objective aimed at the public good and with a view to sustainable development, as demonstrated in particular by their statutes. For an indication of Common characteristics of a non-governmental organisation, see Discussion Paper The Commission and non-governmental organisations: Building a stronger partnership (under point 1.2) at: 2. which are active at a European level either singly or in the form of several coordinated associations with a structure (membership base) and activities covering at least three EU Member States. Activities and membership base should primarily be at a European level and not at an international level. This means that international organisations (with a majority of activities and membership at international level rather than European level) are not eligible, even if they only apply for a grant for the European part of their work. Organisations based on networks must be mandated by their members, through a Management Board or other administrative forum, to represent them at the EU level and to be responsible for the activities of the network. It should be noted that loose co-operation or temporary partnerships are not eligible under this Programme. The membership structure should be fixed and comprise of member organisations. This means that organisations with a membership base consisting only of individual physical persons would not be considered eligible. European environmental organisations that do not have a structure of member organisations as described above should demonstrate that they in other ways structurally cover at least three Member States, for example by having formally established active offices in at least three Member States or by acting as a coordinator of a network of organisations in at least three Member States, as evidenced by their statutes. 3. which are legally established in one of the EU member states; 4. whose activities relate, in particular, to the thematic objectives listed under "objectives" in section which have been legally constituted for more than 2 years and have had its annual statement of accounts for the two preceding years certified by a registered auditor. In cases of exceptional circumstances, the Commission may grant a derogation from these two requirements, provided that this would not compromise the protection of EU financial interests. The Commission may consider as exceptional circumstances the creation within the two preceding years of a new network by experienced NGOs, provided that the annual statements of accounts of the founding members are certified by a registered auditor. There must be documentation from 3 founding members from at least 3 eligible countries. 4 Certification of the annual statement of accounts for the two preceding years should be based on an audit understood as an additional independent control, carried out in

8 accordance with certain fixed and recognised principles 1 by an officially registered auditor. The auditor should carry out a full audit and not a limited review. This should include checks on the underlying documents. The person or company which normally does the book-keeping, cannot be the same as the one carrying out the audit and certification of the annual accounts. Certification of the annual accounts should be accompanied with the auditor s report, including their opinion on whether the information presented in the financial statement is correct and free of material misstatements. Persons responsible for carrying out independent audits of accounting documents may, depending on the law of each Member State, be natural or legal persons or other types of company, firm or partnership. They should be listed in the registers held by Member States of auditors approved by them to carry out statutory audits of accounting documents. 6. whose financial resources are not exclusively made up of subsidies from European Union institutions. Moreover, the budget estimate for the proposed activities must be in balance. This means that the totals presented under eligible expenditure/costs and forecasted revenues in the budget of the application form must match. Only costs incurred by the applicant will be considered as eligible. Member organisations may participate in the implementation of the work programme, but costs incurred by them will not be considered eligible costs. 1 International Auditing Standards and Codes of Ethics. 5

9 4. HOW MUCH WILL THE COMMISSION GRANT? The maximum EU-funding rate is 70 % of the eligible costs of the operating budget of the beneficiary organisation for its 2014 budgetary year. Costs eligible for financing may neither have been incurred before the grant application was lodged nor before the start of the beneficiary's budgetary year. Actions that benefit or will benefit from aid under other EU financial instruments are not eligible under this programme. The work programme and budget should, therefore, exclude activities co-financed by other EU sources. This information should however be presented in form A6 and T2.3. The maximum amount that may be requested and awarded is fixed at EUR For organisations that have been awarded an operating grant under this programme in 2013, the maximum amount that may be requested and awarded is limited to the same amount as the one originally requested for 2013, but shall not exceed EUR As a point of reference, the average grant award is around EUR Payment conditions Following the award of a grant and after the signatures of the grant agreement by both parties, the Commission will pay a maximum of 60 % of its contribution as a prefinancing payment. No further pre-financing or interim payment will be made. The final payment of up to 40 % of the EU grant is subject to the approval of the final activity report and will be made on the basis of the eligible costs of the work programme as calculated by the Commission on the basis of the final financial statement presented using the standard template annexed to the grant agreement. An audit report by an external registered auditor shall accompany the final financial statement for all grants exceeding euros. The audit report should be made using the Standard Audit Certificate form, annexed to the Grant Agreement, certifying that the costs declared there are real, eligible, accurately incurred and recorded, and that all income has been declared, in accordance with the agreement. This statement will also be an essential element for determining the final amount of the grant once it has been established that no profit has been produced by the grant. As this is a specific task normally not foreseen for the auditors, applicants should carefully evaluate the operational and financial implications and allocate the necessary resources in the provisional budget. 6

10 5. HOW, WHEN AND WHERE TO SUBMIT A PROPOSAL? Each complete proposal (application forms A, T and F, and annexes) must be submitted in 1 original bearing original hand-written signatures where requested. The documents should be clearly separated and presented in the order of the checklist in section 10. The checklist should be included and the relevant boxes ticked. 2 CDs with electronic versions of the full application, i.e. forms A, T and F (in format MS Word (.doc) / EXCEL (.xls) 1 ) and annexes must also be attached. Proposals should be sent to the Commission by 15 October The complete proposal must be sent or delivered by post (registered letter), by private courier or by hand by the set deadline to the address indicated on p.1 of the application guide. The postmark, the date of collection by the courier or the acknowledgement of receipt dated and signed by the responsible Commission official will serve as proof of the date of submission of the proposal. Faxes, electronic mail or incomplete applications will not be accepted. 1 If using Office 2007 or 2010, documents should be saved in compatible format, or.doc and.xls instead of DOCX and XLSX. 7

11 6. HOW ARE BENEFICIARIES SELECTED? The applications received are registered by the Commission and an acknowledgement of receipt is transmitted to the applicant. Unit E.4, LIFE Environment, of the Environment Directorate General is responsible for the evaluation procedure. A pre-assessment of applications will be made by external experts, based on which the final evaluation will be carried out by a panel of DG Environment/Climate experts representing the core areas of environmental and climate policy. The panel makes their decision on the evaluation and final scores by consensus. The Selection and Award Process shall take place in five successive phases 1. Verification of applications against admissibility criteria 2. Verification of applications against eligibility criteria 3. Verification of applications against exclusion criteria 4. Verification of applications against selection criteria 5. Assessment of applications against award criteria INDICATIVE SCHEDULE Deadline for sending proposals 15 October 2013 Notification of results January 2014 Negotiation and verification period February 2014 Closure of the selection round and dispatch of grant agreements to successful applicants March/April 2014 Any document sent to the European Commission after the fixed deadline will not be considered for selection purposes unless specifically requested by the Commission. In order to ensure fair treatment of the applications, the Commission will not respond to any request for information regarding the eligibility or quality of proposals during the selection procedure. 8

12 Step 1. ADMISSIBILITY CRITERIA An application received may not be accepted for one or more of the following reasons: A. Application sent to the European Commission after the deadline B. Non-standard forms have been used This does not refer to changes in font, size and layout, but to modifications of the content of the forms as presented in this application file. C. Forms are partly or completely hand-written This obviously does not refer to signatures or other type of information that cannot be typed/printed. D. Forms are missing All forms should be provided. If a specific form is not applicable in view of the content, please mark the form with "N/A" E. Mandatory annexes are missing All documents listed as obligatory documents to be attached to the application in section 8 and 10 of these guidelines must be annexed to the application forms. F. Forms are not signed Where required, the proposal forms should be completed with date and signature whereby status and full name of the signatory is clearly in evidence. G. Application presented by a body acting as an intermediary for a third party. This means that only an application presented by the organisation (legal entity) for which core funding is sought will be considered as admissible. Proposals that do not fully comply with all the above admissibility criteria are declared inadmissible and are eliminated from further evaluation, unless in cases of obvious clerical errors or minor omissions. In such cases, the Commission will send an to the applicant indicating what information is missing. The address of the contact person indicated in form A3 will be used for this and all subsequent contact. Therefore applicants should ensure that it is an account which is valid, active and checked on a daily basis. The applicant will have 5 working days to reply and provide, by , the missing/incomplete documents/forms. Those proposals for which all the requested missing/incomplete documents/forms have not been provided by the deadline indicated in this are declared inadmissible and are eliminated from all further evaluation. Step 2. ELIGIBILITY CRITERIA To be eligible the organisation must: A. be independent and non-profit-making, primarily active in the field of environmental protection and enhancement with an environmental objective aimed at the public good and with a view to sustainable development, as demonstrated in particular by their statutes; For an indication of Common characteristics of a non-governmental organisation, see Discussion Paper The Commission and non-governmental organisations: Building a stronger partnership (under point 1.2) at: 9

13 B. be active at a European level either singly or in the form of several co-ordinated associations with a structure (membership base) and activities covering at least three EU Member States. Activities and membership base should primarily be at a European level and not at an international level. This means that international organisations (with a majority of activities and membership at international level rather than European level) are not eligible, even if they only apply for a grant for the European part of their work. Organisations based on networks must be mandated by their members, through a Management Board or other administrative forum, to represent them at the EU level and to be responsible for the activities of the network; It should be noted that loose co-operation or temporary partnerships are not eligible under this Programme. The membership structure should be fixed and comprise of member organisations. This means that organisations with a membership base consisting only of individual physical persons would not be considered eligible. European environmental organisations that do not have a structure of member organisations as described above should demonstrate that they in other ways structurally cover at least three Member States, for example by having formally established active offices in at least three Member States or by acting as a coordinator of a network of organisations in at least three Member States, as evidenced by their statutes. C. be legally established in one of the EU member states; D. have activities that relate, in particular, to the thematic objectives listed under "objectives" in section 2; E. have been legally constituted for more than 2 years; and have had its annual statement of accounts for the two preceding years certified by a registered auditor. The full audits of the annual accounts are compulsory for the grant application even if they are not required by national legislation. In cases of exceptional circumstances, the Commission may grant a derogation from these two requirements, provided that this would not compromise the protection of EU financial interests. For the requirements relating to the audit report, please see 3.5. The Commission may consider as exceptional circumstances the creation within the two preceding years of a new network by experienced NGOs, provided that the annual statements of accounts of the founding members are certified by a registered auditor. There must be documentation from 3 founding members from at least 3 eligible countries. Only if your proposal complies with all eligibility criteria will it be further assessed. 10

14 Step 3. EXCLUSION CRITERIA A proposal will be excluded if the applicant in this proposal is in any of the situations mentioned below: a) they are bankrupt or being wound up, are having their affairs administered by the courts, have entered into an arrangement with creditors, have suspended business activities, are the subject of proceedings concerning those matters, or are in any analogous situation arising from a similar procedure provided for in national legislation or regulations; b) they or persons having powers of representation, decision making or control over them have been convicted of an offence concerning their professional conduct by a judgment of a competent authority of a Member State which has the force of res judicata; c) they have been guilty of grave professional misconduct proven by any means which the contracting authority can justify including by decisions of the European Investment Bank and international organisations; d) they are not in compliance with their obligations relating to the payment of social security contributions or the payment of taxes in accordance with the legal provisions of the country in which they are established or with those of Kingdom of Belgium or those of the country where the grant agreement is to be performed; e) they or persons having powers of representation, decision making or control over them have been the subject of a judgment which has the force of res judicata for fraud, corruption, involvement in a criminal organisation, money laundering or any other illegal activity, where such an illegal activity is detrimental to the Union's financial interests; f) they are currently subject to an administrative penalty referred to in Article 109(1) of the Financial Regulation 1. A proposal will not be granted financial assistance if, in the course of the grant award procedure, they: g) are subject to a conflict of interest; h) are guilty of misrepresentation in supplying the information required by the Commission as a condition of participation in the grant award procedure or fail to supply this information; i) find themselves in one of the situations of exclusion, referred above. The applicant has to sign a declaration on oath that their organisation is not in any of the situations mentioned above (see form A2). Omitting to sign and date this form will result in the exclusion of the proposal. The Commission may request at any time further evidence for the correctness of that declaration. 1 Regulation (EC, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October

15 Step 4. SELECTION CRITERIA If one of the selection criteria listed hereafter is not fulfilled, organisations are declared not selected and are eliminated from the further evaluation process. 1. Technical soundness of participants A proposal is eliminated on the basis of this criterion if there is strong evidence that the applicant is not reliable from a technical point of view and/or fall under any of the following situations: The applicant has demonstrated weaknesses and shortcomings in the technical performance in previous projects or operating grants under this programme or other EU-financed projects and has given no proof that the necessary initiatives have been taken to avoid similar problems in the future. The applicant has neither the experience nor the expertise necessary for a successful implementation of the proposed work programme. In order to allow an assessment of their operational capacity, organisations must submit, together with their applications: a) the curriculum vitae of the legal representative of the organisation; b) the curricula vitae of the main collaborators (staff members / contact person responsible for the general coordination of the work programme) showing all their relevant professional experience to complete the proposed work programme; c) one or more recent activity report(s) allowing an assessment of the organisation's objectives and activities. 2. Financial soundness of participants A proposal is eliminated on the basis of this selection criterion if there is strong evidence that the applicant is not reliable from a financial point of view, in particular falling under any of the following situations: the results of audits carried out by EU institutions in relation to the applicant have clearly shown their inability to comply with the administrative rules regulating EU grants and in particular those applicable to this programme, the applicant does not possess the financial capacity to cover his share of costs/financing. In order to assess the applicant's financial capacity, the applicant organisation shall submit the following documents with its application: Certified accounts for the last two financial years which consist of the profit and loss accounts of the organisation and the balance sheets (assets and liabilities), and the related notes, if any. These documents must be certified (stamped, dated and signed) by a registered auditor (a person who does not belong to the applying organisation and is not involved in the management of the organisation, see 3.5). Bank identification form duly filled in by the beneficiary and certified by a representative of the bank with original signatures. Financial capacity form F8. 12 Form F8 (Annex Section F) collects financial data based on the applicant's balance-sheet and profit-and-loss account for the last two financial years in a standardised form. A table of equivalence between the different classifications of accounts compared and the Fourth Directive on accounting

16 harmonisation is set out at the end of section 8. This form must be completed carefully. Given its complexity, it should be completed by a professional accountant or an auditor. The data reported will be used to evaluate the financial capacity of the applicant. It is therefore very important that the data reported are accurate. The Commission may wish to cross-check the data with those reported in the official certified accounts (to be submitted as obligatory documents see point above). The amounts must be entered in Euros. For financial statements established in other currencies, refer to the EU InforEuro exchange rates (for the closing date of the statement) available on: Assessment of the financial capacity shall guarantee a selection of beneficiaries with sound and sufficient financial resources. It shall show that the applicant has sources to cover their share of costs estimated in the budget and be able to maintain their activities over the period of the implementation of the work programme. In particular, co-funding structure and / or the applicant's assets shall guarantee a secure and stable flow of money to manage their activity described in the application. In cases where the financial capacity of the applicant is insufficient, or is not adequate to fulfil the requirements of the call, the Commission may seek to safeguard the interest of the European Union by asking for a guarantee from a bank or financial institution. The guarantee shall be equal to the amount of the pre-financing payment and covering the duration of the work programme. The guarantee must be denominated in Euros. In addition, to assess the financial capacity of the applicants, the Commission reserves itself the right to use all the information at its disposal according to Art.108 of Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the Financial Rules applicable to the general budget of the European Union. 13

17 Step 5. AWARD CRITERIA At this stage the Commission will evaluate the overall quality and interest of all proposals that complied with the criteria under steps 1, 2, 3 and 4. The proposal submitted shall demonstrate the way in which the work programme of the applicant will address EU policy in the area of one or more of the thematic objectives below. The grants will be awarded with a view to the successful completion of those work programmes deemed the most suitable. The main focus of the proposed work programme and activities should relate to the following thematic objectives: To protect, conserve and enhance the Union s natural capital To turn the Union into a resource-efficient, green and competitive low-carbon economy To safeguard the Union s citizens from environment-related pressures and risks to health and wellbeing These thematic objectives are described in detail in the new Environment Action Programme for the EU entitled "Living well, within the limits of our planet, see There is no direct link between the number of thematic areas covered and the evaluation result. An applicant with high quality activities in a few areas will get a higher score than an applicant with medium quality activities in many areas. Criterion A (20 points): Policy relevance of the involvement in EU environmental policy implementation and/or development The extent to which the application and, more specifically, the proposed work programme demonstrate policy relevance of involvement in EU environmental and climate policy implementation and/or policy-shaping, in relation to the thematic objectives listed above (EU Environment Action Programme thematic objectives a-c). The evaluation will assess the extent to which: the proposal targets one or more of the thematic objectives; the proposal presents clear links to EU policy initiatives and legislation and is relevant to policy needs; the proposal contains an appropriate background description and problem analysis, which explain the context and justify the proposed activities; objectives are clear, concrete, realistic and appropriate to address the problem; activities are clear, concrete, realistic and appropriate to reach the objectives; the proposal demonstrates a potential to have a real impact: the proposal demonstrates EU added value, i.e. applies to the larger European context. Criterion B (20 points): Relevance and potential to contribute to the enabling framework for environmental and climate policy (EU Environment Action Programme objectives d-g) The extent to which the application and, more specifically, the proposed work programme demonstrate relevance and potential to contribute to maximising the benefits of the Union s environment legislation, improving the evidence base for environment policy, securing investment for environment and climate policy and get the prices right, and improving environmental and climate integration and policy coherence. 14

18 The evaluation will assess the extent to which: the proposal contributes specifically to implementation and enforcement of environmental and climate policy and legislation; the proposal contributes to improving the understanding and knowledge of environmental and climate challenges and ensures fact based action, e.g. through studies and data collection, including the communication and dissemination of such knowledge. Note: pure research activities are not targeted by this call for proposals; the proposal contains elements contributing to the area of investment and prices for environmental and climate policy, e.g. in domains such as environmental externalities, polluter-pays principle, taxation, environmental accounts, beyond GDP, etc; the proposal contains activities contributing to integration of environment and climate action into other policies, e.g. agriculture, energy, transport, cohesion policy etc. Criterion C (5 points): Relevance and potential to contribute to the spatial dimension of environmental and climate policy (EU Environment Action Programme objectives h and i) The extent to which the application and, more specifically, the proposed work programme demonstrate relevance and potential to contribute to sustainable development of urban areas and regional and global environmental and climate challenges. The evaluation will assess the extent to which: the proposal addresses the sustainable development of urban areas and regional and global environmental and climate challenges; the proposal focuses on regions where there are significant impacts of climate change; the proposal presents clear links to EU policy initiatives and relevance to policy needs in these areas. Criterion D (20 points): Effectiveness of NGO contribution to the EU policy process The evaluation will assess the extent to which: the proposal demonstrates and in-depth understanding of the EU policy process; the proposal demonstrates that the applicant has a potential to act as a two way channel between member (grass root) level and EU level, including providing coordinated policy input; the proposal demonstrates transparency and effectiveness of representation of the NGO, and involvement of members in shaping strategic decisions; the proposal demonstrates active involvement of the network in the implementation of the work programme; the proposed awareness raising activities are relevant to policy needs, well designed and well-targeted; and communication and media campaigns are used strategically to promote sound environmental governance; the proposal includes activities aiming at useful coordination with other stakeholders, including other NGOs; the proposal demonstrates that visibility is ensured by appropriate means, including use of online and web based tools. Criterion E (20 points): Technical and financial coherence The evaluation will assess the extent to which : the proposal shows a clear logical link and coherence between context, objectives, activities and results; 15

19 the proposal overall is clearly presented; management and organisation of the work is clearly explained (including how, where, when and by whom it will be undertaken); the implementation of the proposed work programme is realistic and feasible; the use of sub-contractors, if any, is relevant, clearly explained and justified; the expected results and outputs/deliverables are properly described and quantified, whenever possible, concrete and verifiable; appropriate indicators are included to monitor the implementation of the work programme; the proposed budget is appropriate for the activities in terms of overall amount and distribution between cost categories; resources are suitably allocated and cost-efficiency ensured. Criterion F (10 points): Organisational development The evaluation will assess the extent to which: the needs relating to organisational development have been properly analysed and elaborated (background); the proposed activities are appropriate to meet the needs and identified weaknesses/areas for improvement; the proposed activities will contribute to strengthening the organisation and make the applicant a more efficient partner in the policy dialogue (improvement compared to present situation); the proposal contains a description of the fundraising situation and necessary plans or strategies to ensure diversification and sustainability of the organisation. Note: Areas to be addressed under this criterion can be for example: Organisational structure and staffing, strategic approach, financial management, evaluation and reporting, internal communication, technical competence, network enlargement/new members, visibility, network capacity building, through e.g. training and awareness raising on EU policy; partnerships/relations with other stakeholders. Criterion G (5 points): Relevance and potential to contribute to the 2014 annual priorities 1) waste and 2) climate change adaptation and mitigation The evaluation will assess the extent to which: the proposal addresses one or more of the annual priorities for 2014 the proposal demonstrates clear links to EU policy initiatives and relevance to policy needs in these areas. Minimum sufficiency level: Applications must achieve a total score of at least 50 points to be considered for funding. THE AWARD DECISION The Commission will then select, within the limits of the available budget, those applications which get the highest ranking based on the total score. This decision shall include, for selected organisation, the maximum financial amount of the grant and the rate of co-financing granted. Applications which pass the minimum sufficiency level but do not achieve enough points to be selected will constitute a reserve list for consideration in case additional funds become available for the Programme or in case promoters withdraw their (selected) proposals. 16

20 The selection of an application by the Commission does not constitute an undertaking to award a financial contribution equal to the amount requested by the beneficiary. The Commission reserves the right to reduce the grant requested if the proposal includes elements considered too expensive or not eligible. In addition, since there is a limited overall budget for the funding programme, the Commission reserves the right to propose a level of support lower than that requested. The awarding of the grant does not establish an entitlement for subsequent years. Furthermore, under no circumstances can the amount awarded be more than the amount requested. The forecast budget of all applications will be reviewed to delete any cost elements which are judged excessive or ineligible. The Commission may invite applicants to provide clarifications and/or a revised budget to ensure compliance with the rules on eligible costs or where the granted amount is different from the amount requested in the application IN THE CASE YOUR ORGANISATION IS NOT SELECTED The Commission will officially inform each unsuccessful applicant. A letter will be sent after the Commission award decision. 17

21 7. MAIN FINANCIAL AND MANAGEMENT RULES 7.1 How the grant amount will be calculated The Commission calculates the grant amount (EU contribution) as a percentage (maximum 70%) of the total eligible costs of the implementation of the work programme. The selection of an application by the Commission does not constitute an undertaking to award a financial contribution equal to the amount requested by the beneficiary. The Commission reserves the right to reduce the grant amount requested if the proposal includes elements considered too expensive or not eligible. In addition, since there is a limited overall budget for the funding programme, the Commission reserves the right to propose a level of support lower than that requested. The maximum amount that may be requested and awarded is fixed at EUR For organisations that have been awarded an operating grant under this programme in 2013, the maximum amount that may be requested and awarded is limited to the same amount as the one originally requested for 2013, but shall not exceed EUR How the final amount of the grant will be determined The final amount of the grant will be determined after the end of the period of eligibility for funding on the basis of the costs actually incurred by the beneficiary in carrying out the work programme. If the actual expenditure turns out to be lower than the budgeted expenditure, then the actual grant will also be reduced by the percentage contribution that will remain the same. If the actual expenditure turns out to be higher than the budgeted expenditure, then the Commission's grant will not be increased. A mere forecast of expenditure does not give entitlement to a grant. This is why the final grant amount cannot be calculated until the Commission has received the final activity report and the final financial statement of the receipts and expenditure. In order to be accepted as actual costs, the expenditure that is committed to the implementation of the work programme must correspond to payments made by the beneficiary before the final date for reporting as evidenced by invoices (to be kept by the beneficiary) or equivalent supporting documents. It must also relate to actual and not expected costs. EU grants may not have the purpose or effect of producing a profit within the framework of the work programme of the beneficiary. Profit shall be defined as a surplus of the receipts over the eligible costs incurred by the beneficiary, when the request is made for payment of the balance. In this respect, where a profit is made, the Commission shall be entitled to recover the percentage of the profit corresponding to the Union contribution to the eligible costs actually incurred by the beneficiary to carry out the work programme. 7.3 Bank account Pre-financing payment will be made to the beneficiary's bank account or sub-account denominated in Euro. This account or sub-account indicated by the beneficiary must make it possible to identify the funds transferred by the Commission. 7.4 Ex-post audits The beneficiary may be audited by the Commission or by other outside body authorised by the Commission to check that the work programme and the provisions of the agreement are being properly implemented. Such audits may be carried out throughout the period of implementation of the agreement until the balance is paid and for a period of five years from the date of payment of the balance. Where appropriate, the audit findings may lead to recovery decisions by the Commission. The beneficiary shall keep at the Commission's disposal all original documents, especially accounting and tax records, or, in exceptional and duly justified cases, certified copies of original documents 18

22 relating to the agreement for a period of five years from the date of payment of the balance. 7.5 How to construct the estimated budget The budget of the work programme must be balanced and presented in Euro. Beneficiaries established in countries outside the Euro zone should be aware that they fully carry any exchange rate risk. The budget must be balanced: 19 all the items related to the implementation of the work programme must be included, the two totals (Part A, expenditure and Part B, income) must be equal since the available income (including the grant requested from the Commission) will have to finance the planned expenditure. When implementing the work programme the beneficiary may adjust the estimated budget by transfers of eligible costs between budget categories, provided that this adjustment of costs does not affect the implementation of the work programme and the transfer of costs between categories does not exceed 20% of the amount of each category of eligible costs as shown in the estimated budget. Expenditure that is not eligible under the current work programme and corresponding income should be reported under Part C and D of the Estimated Budget Summary (sheet form F0): a) Costs assigned for activities outside the work programme and described in form T2.3, b) Actions financed by other EU sources should be clearly identified and listed in form A6, c) Reserve in case if there is a provision for the creation or increase of a financial reserve, an amount should be specified and mentioned in form T2.3 (activities outside of the work programme) as well as supported by the document providing for the creation or increase of a strategic reserve (decision of the Board or similar). 7.6 What expenditure is eligible for the operating grant? In the estimated budget only expenditure necessary for the implementation of the work programme shall be included. Furthermore, only costs incurred by the beneficiary organisation signing the grant agreement with the Commission will be considered eligible. Member organisations may participate in the implementation of the work programme, but costs incurred by the member organisations or any other third parties will not be considered eligible costs.. In addition to the above rule, eligible costs of the work programme must meet the following criteria: - they are incurred during the duration of the work programme as specified in the grant agreement, with the exception of costs relating to final reports and audit certificates on the financial statements and underlying accounts; - they are connected with the subject of the work programme and they are indicated in the estimated overall budget of the work programme; - they are necessary for the implementation of the work programme which is the subject of the grant; - they are identifiable and verifiable, in particular being recorded in the accounting records of the beneficiary and determined according to the applicable accounting standards of the country where the beneficiary is established and according to the usual cost-accounting practices of the beneficiary; - they comply with the requirements of applicable tax and social legislations; - they are reasonable, justified, and comply with the requirements of sound financial management, in particular regarding economy and efficiency. Beneficiaries must take care to avoid any unnecessary or unnecessarily high expenditure. Expenditure eligible for financing may not have been incurred before the grant application was

23 lodged or before the start of the beneficiary's budgetary year. The beneficiary's internal accounting and auditing procedures must permit a direct reconciliation of the costs and revenue declared in respect of the work programme with the corresponding accounting statements and supporting documents. 7.7 What expenditure is not eligible? The following expenses are ineligible and not accepted: 1) Contributions in kind: these are contributions that are not invoiced, e.g. voluntary work, or equipment or premises made available free of charge; 2) Expenditure not related to the implementation of the work programme. 3) Expenditure that is not supported by documentary evidence; 4) Expenditure incurred outside the performance period; 5) Cost of purchasing infrastructure equipment including buildings, land and second-hand equipment (except to the amount of the annual depreciation of the equipment purchased); 6) Capital increases and return on capital; 7) Debt and debt service charges, doubtful debts; 8) Provisions; 9) Interest owed; 10) Exchange losses; 11) VAT, unless the beneficiary can show that he/she is unable to recover it; 12) Excessive or reckless expenditure; 13) Costs incurred by the beneficiary but already covered by a specific action receiving an EU grant. Note: indirect costs shall not be eligible under a grant for an action awarded to a beneficiary who already receives an operating grant financed from the Union budget during the period in question. 7.8 What are the categories of eligible costs in the estimated budget? In the estimated operating budget (application forms Section F) there are the following costs categories: a) Personnel Staff assigned to the implementation of the work programme is understood to mean permanent or temporary staff employed by the beneficiary. The cost of staff, comprising actual salaries plus social security charges and other statutory costs included in the remuneration, is eligible. The salary costs should not exceed the average rates corresponding to the beneficiary's usual policy on remuneration. In addition, they should not be higher than the generally accepted rates in the market for the same kind of service. To be eligible, costs have to comply with the requirements of applicable tax and social legislation. Minimum rules for contracts of paid employees are set out in EU legislation see Council Directive 91/533/EEC of 14 October 1991 on an employer's obligation to inform employees of the conditions applicable to the contract or employment relationship 1 and transposed into national law, which may however be stricter. Employment contracts must comply with the above-mentioned rules as transposed into the national law. The place of work should be indicated in the agreement between both parties, but could be other than the actual premises of the organisation, provided that such arrangements are also accepted by national legislation. 1 Official Journal L 288, 18/10/1991 p

24 When submitting the request for a final payment, the beneficiary might be requested to provide pay slips and timesheets justifying the actual staff costs declared. For personnel costs to count as eligible direct costs there must be a real and verifiable transfer of funds from the beneficiary organisation to cover these costs, and the assignment of the staff in question must be genuine, necessary and reasonable in relation to the activity being subsidised and to the duration of the work programme. The cost of eventual work to be performed by external experts by means of subcontracting should not be included in staff costs but under external assistance / subcontracting. b) Travel and subsistence The travel and subsistence costs related to the participation to the events foreseen in the implementation of the work programme are eligible, provided that they are in line with the beneficiary's usual practices on travel costs. Journeys must be carried out by the most direct and economic route. Economy class fares will be used as the benchmark for analysing air travel costs. Rates to the per diems that cover accommodation, meals, local travel within the place of mission and sundry expenses must not exceed the scales set out by the Commission in the following document: c) Rental, equipment and depreciation Only rent and equipment directly linked with implementation of the work programme can be charged as eligible costs. Depreciation for purchase of equipment: the purchase costs of equipment (new or second-hand) is eligible provided that it is written off in accordance with the tax and accounting rules applicable to the beneficiary and generally accepted for items of the same kind. Only the portion of the equipment's depreciation corresponding to the period of eligibility for EU funding covered by the grant agreement may be taken into account by the Commission, except where the nature and/or the context of its use justifies different treatment by the Commission. Rent and charges of equipment and/or premises/offices are eligible for the duration and (for offices) the surface explicitly dedicated to the implementation of the work programme. d) External assistance / sub-contracting These are all the other contracts (except for those for the purchase of equipment or rent) that would have been concluded for the purposes of carrying out the work programme. They include services undertaken by an external party in connection with the implementation of the work programme. Beneficiaries should have the operational capacity to complete the work programme, however, when justified and necessary, parts of the programme may be subcontracted to another person or organisation. In this case, the beneficiary shall ensure that some of the terms applicable to itself under the agreement are also applicable to the subcontractors 1. The total expenditure related to sub-contracting may not exceed 30 % of the total eligible costs. Higher percentages may be considered only in exceptional and well justified cases. It must be clearly specified in the work programme which tasks it is intended to subcontract and why this subcontracting is necessary. Contracts as referred to above may be awarded only in the following cases: 1 The terms related to liability, conflict of interests, confidentiality, publicity, evaluation, assignment and checks and audits. 21