Interreg V B ADRIATIC-IONIAN COOPERATION PROGRAMME ADRION

Transcription

1 Interreg V B ADRIATIC-IONIAN COOPERATION PROGRAMME ADRION Prgramme Manual Pririty Axis 4 Versin 1.0 April

2 Disclaimer: The present manual intends t prvide useful infrmatin fr applicants. It des nt replace r verrule the fficial EU Regulatins and Adriatic Inian Cperatin Prgramme. List f acrnyms ADRION INTERREG V-B Adriatic-Inian Transnatinal Cperatin Prgramme AF CP ESI FUNDS ERDF ETC EUSAIR ERDF Partner States IP IPA IPA Partner States JS MA MC NCP PA Partner States PRAG SO TO applicatin frm cperatin prgramme Eurpean Investment and Structural Funds Eurpean Reginal Develpment Fund Eurpean Territrial Cperatin Eurpean Unin Strategy fr Adriatic and Inian Regin Cratia, Greece, Italy, Slvenia investment pririty Instrument fr Pre-Accessin Assistance Albania, Bsnia and Herzegvina, Mntenegr, Serbia jint secretariat managing authrity mnitring cmmittee natinal cntact pint pririty axis Albania, Bsnia and Herzegvina, Cratia, Greece, Italy, Mntenegr, Serbia, Slvenia Practical Guide t Cntract Prcedures fr EU External Actins specific bjective thematic bjective Lead partner, lead beneficiary and lead applicant have been used as synnyms Prject partner and prject beneficiary have been used as synnyms Operatin and prject have been used as synnyms 2

3 Table f cntents GENERAL INFORMATION ON THE ADRIATIC-IONIAN PROGRAMME Intrductin Legal and strategic framewrk ADRION prgramme in a nutshell Prgramme eligible area ADRION prgramme budget ADRION Cperatin Prgramme structure Gals and bjective f the Pririty Axis N Key prject milestnes and perfrmance indicatrs Financial allcatin t Pririty Axis N Strategic prject key principles Hrizntal principles Equality between men and wmen and nn-discriminatin Sustainable develpment State Aid discipline Hw t deal with State Aid The Prgramme language...17 THE TERMS OF REFERENCE OF THE STRATEGIC PROJECT: KEY ELEMENTS The strategic prject Terms f Reference Prject partnership Eligible partners...19 Assimilated partners...19 Other indicatins regarding the eligibility f partners Lead applicant Partners bligatins Lead partner respnsibility Prject partner respnsibility Exclusin criteria Exclusin frm participatin Exclusin frm subsidy Ways f cperatin within a prject prpsal Prject duratin Funding methd Prject budget Use f Eur Hierarchy f rules n eligibility f expenditure General eligibility requirements Prject budget lines Staff csts Office and administrative expenditure Travel and accmmdatin csts External expertise and services csts Equipment expenditure PROCEDURE FOR SUBMISSION AND SELECTION OF THE STRATEGIC PROJECT The Applicatin Package Submissin f the strategic prject Structure f the Applicatin Frm Prject wrk packages Prject management and crdinatin f activities Cmmunicatin activities Prject implementatin Nn-cmpulsry wrk packages Reprting perids Assessment f the applicatins Admissibility and eligibility check Quality assessment

4 18.3 State Aid check Anti-fraud checks Finalizatin f the prject assessment grid Decisin making and Cmmunicatin t the lead applicant Cntractual prvisins Advance payment Publicity by the Prgramme Cmplaints prcedure Data Prtectin Cntacts...50 Annex 1 Pririty Axis 4 interventin lgic...51 Annex 2 Admissibility and Eligibility Criteria...53 Annex 3 Quality Criteria

5 GENERAL INFORMATION ON THE ADRIATIC-IONIAN PROGRAMME 5

6 1 Intrductin This Prgramme Manual is based n the legal framewrk establishing the ESI Funds, the Interreg Adriatic- Inian V B (ADRION) Cperatin Prgramme and the decisins adpted by the ADRION MC. The Manual intends t give guidance t the submissin f the applicatin f the strategic prject within Pririty Axis 4, aimed at supprting the crdinatin and implementatin f the Eurpean Unin Strategy fr Adriatic and Inian Regin (EUSAIR). The present dcument des nt replace the legal framewrk upn which the Prgramme has been drafted: applicants are warmly advised t carefully read the Cperatin Prgramme (CP) and the ther legal dcuments mentined in the fllwing pages. Further guidelines and infrmatin n the submissin f the prject prpsal are available n the ADRION web site 6

7 2 Legal and strategic framewrk The legal framewrk supprting the ADRION Prgramme is the fllwing: Prgramme dcuments The Interreg V B Adriatic Inian ADRION - Cperatin Prgramme dcument adpted by the Eurpean Cmmissin n 20 Octber 2015, Decisin C(2015)7147; The Interreg ADRION Prgramme Strategic Envirnmental Assessment; The Ex - ante evaluatin f the Adriatic-Inian Cperatin Prgramme Eurpean Structural and Investment Funds : Key regulatins Regulatin (EU) N 1303/2013 f the Eurpean Parliament and f the Cuncil f 17 December 2013 n cmmn prvisins n the Eurpean Reginal Develpment Fund, the Eurpean Scial Fund, the Chesin Fund, the Eurpean Agricultural Fund fr Rural Develpment and the Eurpean Maritime and Fisheries Fund and n general prvisins n the Eurpean Reginal Develpment Fund, the Eurpean Scial Fund, the Chesin Fund and the Eurpean Maritime and Fisheries Fund and repealing Cuncil Regulatin (EC) N 1083/2006; Regulatin (EU) N 1301/2013 f the Eurpean Parliament and f the Cuncil f 17 December 2013 n the Eurpean Reginal Develpment Fund and n specific prvisins cncerning the Investment fr grwth and jbs gal and repealing Regulatin (EC) N 1080/2006; Regulatin (EU) N 1299/2013 f the Eurpean Parliament and f the Cuncil f 17 December 2013 n specific prvisins fr the supprt frm the Eurpean Reginal Develpment Fund t the Eurpean territrial cperatin gal; Regulatin (EU, Euratm) N 966/2012 f the Eurpean Parliament and f the Cuncil f 25 Octber 2012 n the financial rules applicable t the general budget f the Unin and repealing Cuncil Regulatin (EC, Euratm) N 1605/2002; Cmmissin implementing decisin f 16 June 2014 setting up the list f regins and areas eligible fr funding frm the Eurpean Reginal Develpment Fund under the crss-brder and transnatinal cmpnents f the Eurpean territrial cperatin gal fr the perid 2014 t 2020; Regulatin (EU) N 1302/2013 f the Eurpean Parliament and f the Cuncil f 17 December 2013 amending Regulatin(EC) N 1082/2006 n a Eurpean gruping f territrial cperatin(egtc) as regards the clarificatin, simplificatin and imprvement f the establishment and functining f such grupings; Regulatin (EU) N 1407/2013 n the applicatin f Articles 107 and 108 f the Treaty n the Functining f the Eurpean Unin t de minimis aid; Cmmissin Delegated Regulatin (EU) N 481/2014 f 4 March 2014 supplementing Regulatin N 1299/2013 f the Eurpean Parliament and f the Cuncil with regard t specific rules n eligibility f expenditure fr cperatin prgrammes; Directives and rules n public prcurement. Strategic framewrk EUROPE 2020: A strategy fr smart, sustainable and inclusive grwth, Cmmunicatin frm the Cmmissin, COM(2010)2020 final; Territrial Agenda f the Eurpean Unin 2020: Twards an Inclusive, Smart and Sustainable Eurpe f Diverse Regins, Gödöllö, May 2011; 7

8 Sixth Reprt n Ecnmic, Scial and Territrial Chesin: Investment fr jbs and grwth. Prmting develpment and gd gvernance in EU regins and cities, Eurpean Cmmissin, July Macr-reginal strategy Endrsement f the Eurpean Unin Strategy fr the Adriatic and Inian Regin (EUSAIR), Eurpean Cuncil, Brussels, Octber 2014; Cuncil cnclusins n the Eurpean Unin Strategy fr the Adriatic and Inian Regin (EUSAIR) - General Affairs Cuncil meeting - Brussels, 29 September 2014; Cmmunicatin frm the Cmmissin t the Eurpean Parliament, the Cuncil, the Eurpean Ecnmic and Scial Cmmittee and the Cmmittee f the Regins cncerning the Eurpean Unin Strategy fr the Adriatic and Inian Regin COM(2014) 357 final; Cmmissin staff wrking dcument - Actin Plan - Accmpanying the dcument - Cmmunicatin frm the Cmmissin t the Eurpean Parliament, the Cuncil, the Eurpean Ecnmic and Scial Cmmittee and the Cmmittee f the Regins cncerning the Eurpean Unin Strategy fr the Adriatic and Inian Regin cncerning the Eurpean Unin Strategy fr the Adriatic and Inian Regin SWD(2014) 190 final; Reprt frm the Cmmissin t the Eurpean Parliament, the Cuncil, the Eurpean Ecnmic and Scial Cmmittee and the Cmmittee f the Regins cncerning the gvernance f macr-reginal strategies COM(2014) 284 final; Jint statement f the representatives f the cuntries participating in the EU Strategy fr the Adriatic and Inian regin n a gvernance and management system, set up in partnership with the Eurpean Cmmissin, fr the implementatin f the strategy. Brussels, 18 Nvember Kindly nte that the abve list is nt exhaustive and it nly includes the mst relevant legislatin. Additinal dcuments The present Prgramme Manual; Other publicatins (e.g.: manuals and fact sheets) published n the prgramme web site. Fr reference and further dcumentatin please cnsult the fllwing websites:

9 3 ADRION prgramme in a nutshell The ADRION verall bjective is t act as a plicy driver and gvernance innvatr fstering Eurpean integratin amng Partner States (Albania, Bsnia and Herzegvina, Cratia, Greece, Italy, Mntenegr, Serbia, Slvenia), taking advantage frm the rich natural, cultural and human resurces surrunding the Adriatic and Inian seas and enhancing ecnmic, scial and territrial chesin in the Prgramme area. ADRION intends t cntribute t the harmnius develpment f the Unin s territry ( ) and t strengthen cperatin by means f actins cnducive t integrated territrial develpment linked t the Unin s chesin plicy pririties 1 thrugh the funding f prject prpsals aimed at psitively cntributing t the needs and challenges f the living cnditins in the ADRION area (ecnmic activities, quality f the envirnment, safety, etc.), rather than highlighting n the needs f a limited number f partners. 3.1 Prgramme eligible area The ADRION Prgramme includes a wide transnatinal area with mre than 70 millin inhabitants, and has distinct physical, envirnmental, sci-ecnmic and cultural characteristics. Hence, it addresses all three dimensins f sustainability, including scial, ecnmic and envirnmental aspects but als institutinal elements. The Prgramme eligible area invlves 8 Partner States primarily surrunding the Adriatic and Inian Sea basin and cvering an imprtant terrestrial surface as well. Fur cuntries are EU Member States, whereas the ther fur are candidate r ptential candidate cuntries. EU Partner States: Cratia (NUTS regins: Jadranska Hrvatsk; Kntinentalna Hrvatska); Greece (NUTS regins: Anatliki Makednia, Thraki; Kentriki Makednia; Dytiki Makednia; Thessalia; Ipeirs; Inia Nisia; Dytiki Ellada; Sterea Ellada; Pelpnniss; Attiki; Vrei Aigai; Nti Aigai; Kriti); Italy (NUTS regins: Abruzz, Basilicata, Calabria, Emilia-Rmagna, Friuli-Venezia Giulia, Lmbardia, Marche, Mlise, Prvincia Autnma di Blzan, Prvincia Autnma di Trent, Puglia, Sicilia, Umbria, Venet); Slvenia: (NUTS regins: Vzhdna Slvenija; Zahdna Slvenija). Nn-EU Partner States: Albania; Bsnia and Herzegvina; Mntenegr; Serbia. 1 Recitals N 4 and 6 f Regulatin (EU) N 1299/

10 The EU Member States benefit frm ERDF funds (hereinafter: ERDF Partner States), whereas the thers frm IPA II (IPA) cntributin (hereinafter: IPA Partner States). 3.2 ADRION prgramme budget The verall prgramme budget amunts t EUR , ut f which EUR f EU public resurces (EUR ERDF and EUR IPA funds). 3.3 ADRION Cperatin Prgramme structure As all the Cperatin Prgrammes apprved in the prgramming perid, ADRION is based n a result riented apprach t, and fllws a prgramme interventin lgic aimed at defining its structure and gals in accrdance with the Regulatin (EU) N 1299/2013. The result riented apprach is based n: a) Result rientatin f the prgramme; b) Prgramme mnitring thrugh indicatrs; c) Definitin f a perfrmance framewrk whse targets must be reached in 2018; d) Evaluatin and reprting. The prgramme interventin lgic is the theretical framewrk that structures and visualises the entire lgical and sequential prcess adpted by the prgramme t define its thematic and specific bjectives aimed at cntributing in reaching the expected change within the prgramme area. The prgramme structure is characterised by Pririty Axes, Specific Objectives, actins t be supprted, utputs and results each ther clsely interlinked. 10

11 In accrdance with what abve and with specific reference t the Pririty Axis N 4 subject f the present manual: The pririty axis crrespnds t the thematic bjective N 11 as described in art. 9 f the Regulatin (EU) N 1303/2013 and t the relative investment pririty as described in art. 5 f Regulatin (EU) N 1301/2013; The pririty axis includes ne specific bjective and ne expected result related t the specific bjective; It cntains a descriptin f the type and examples f actins t be supprted under the investment pririty and its expected cntributin t the specific bjective; It has ne utput indicatr characterised by a quantified target value expected t cntribute t the specific bjective result (number f events and meetings f the EUSAIR gvernance structures); One result indicatr related t the specific bjective f the Pririty Axis. It refers t the effects n direct beneficiaries. It prvides infrmatin n changes t, fr example, the behaviur, r the capacity r perfrmance f beneficiaries (the status f management capacities f EUSAIR gvernance structures t effectively implement the EUSAIR and its Actin plan, achieving their bjectives and targets) r financial (e.g.: amunt f reimbursed expenditure). 3.4 Gals and bjective f the Pririty Axis N 4 The Specific Objective f the Pririty Axis N 4 is t Facilitate the crdinatin and implementatin f the EUSAIR by enhancing the institutinal capacity f public administratins and key stakehlders and by assisting the prgress f implementatin f jint pririties. The expected result is devted t the supprt crdinatin and implementatin - f the macr reginal strategy EUSAIR; mre specifically, it is aimed at building up the capacity f the gvernance actrs and stakehlders t effectively implement the macr reginal strategy EUSAIR. As reprted in the Cperatin Prgramme, the peratinal supprt t the EUSAIR gvernance actrs and stakehlders in their respective rles may include the fllwing indicative activities: 11

12 Prviding day-t-day peratinal and lgistic supprt t the Gverning Bard (GB) and the Thematic Steering Grups (TSG); Assisting the TSGs in match making' activities, bringing tgether prject prmters and financiers; Prviding assistance in develping prject cncepts (seed mney, pilt actins, preparatry actins, etc.); Supprting preparatin f macr-reginal actins/prjects, in crdinatin with the TSGs; Supprting the TSGs in mnitring, reprting and evaluatin; Facilitating the develpment and functining f a stakehlders platfrm; Facilitating visibility thrugh prmtin f an Adriatic Inian prfile, as well as awareness-raising, including management f a EUSAIR website and the staging f events (incl. the annual EUSAIR Frum); Assisting the GB in the preparatin f the annual EUSAIR Frum; Supprting the building f the knwledge base, including cllectin f reliable and cmparable data fr establishing sund baselines and develping relevant, evidence-based result indicatrs and plausible targets; Facilitating dialgue with bdies in charge f the implementatin f prgrammes/financial instruments regarding hw best t mbilise funding fr actins under the different pillars Key prject milestnes and perfrmance indicatrs Accrding t the Cperatin Prgramme the strategic prject has t deliver the fllwing utputs and cntribute t the realizatin f the fllwing utcme (result): Year Output indicatr Result indicatr Institutin in charge f implementatin/verificatins 2017 Imprvement f the status f management capacities f EUSAIR gvernance structures t effectively implement the EUSAIR and its Actin Plan, achieving their bjectives and targets Realizatin f at least 12 events and meetings f the EUSAIR gvernance structure 2019 (cumulative quantificatin) Certificatin f expenditure f at least EUR (ERDF+IPA) 2020 Imprvement f the status f management capacities f EUSAIR gvernance structures t effectively implement the EUSAIR and its Actin Plan, achieving their bjectives and targets 2021 MA/JS Strategic prject partners MA/JS 2 Measured thrugh surveys (questinnaires) addressed t the members f EUSAIR GB and TSGs. 12

13 Imprvement f the status f management capacities f EUSAIR gvernance structures t effectively implement the EUSAIR and its Actin Plan, achieving their bjectives and targets 2023 Realizatin f at least 120 events and meetings f the EUSAIR gvernance structure MA/JS Strategic prject (cumulative quantificatin) The Pririty Axis N 4 interventin lgic is prvided in Annex 1. In additin t what abve, the Prgramme has elabrated a sub-set f utput indicatrs t be realized within the end f the prject implementatin: Output indicatr N. f strategic macr reginal prject cncepts/actins 10 accmpanied 3 N. financial dialgues 4 5 Quantificatin 3.5 Financial allcatin t Pririty Axis N 4 The Pririty Axis N 4 ttal funding amunts t EUR ,00 ut f which EUR ,00 f ERDF funds and EUR ,00 f IPA II funds (85% f the ttal): ERDF IPA II Natinal cunterpart Ttal funding Pririty Axis , , , ,00 EU prject partners frm Cratia, Greece, Italy and Slvenia shall benefit frm ERDF funds, prject partners frm Albania, Bsnia and Herzegvina, Mntenegr and Serbia shall benefit frm IPA funds. Shuld the strategic prject spend mre than what apprved by the MC, the EU cntributin shall nt be increased accrdingly. The availability f IPA funds is subject t the signature f the Financing Agreement between the ADRION Prgramme MA, the Eurpean Cmmissin and each ne f the cncerned IPA Partner State. 3 An actin is t be understd accrding t the definitin prvided in the EUSAIR Actin Plan: the interventin which cuntries and stakehlders carry ut in rder t address the different tpics. It can be a new apprach, an increased crdinatin in plicy making, plicy review, supprt t a prcess already engaged, a netwrking initiative, etc. An actin may nt necessarily require financing. All actins shuld be understd withut prejudice t existing EU cmpetences and requirements f the EU acquis. 4 Each EUSAIR Pillar will be engaged in financial dialgue prcesses with the MAs f several prgrammes r with financial institutins. Financial dialgues may include e.g.: meetings, cnferences, wrkshps, frums. 13

14 3.6 Strategic prject key principles The implementatin f the Pririty Axis N 4 shall be dne thrugh a strategic prject perating until 31 December The decisin f supprting EUSAIR thrugh a strategic prject implies that it has t fllw the rules applicable t standard peratins (funded under Pririty Axes 1-3), bth with regard t the submissin f the prject prpsal (present in this manual) and its further implementatin, in particular: a) The respect f the prgramme rules, in particular eligibility f expenditure and reprting rules; b) The lead partner principle; c) The setting in place f an adequate audit trail regarding expenditure incurred and payments made and recrded and stred an cmmnly accepted data carriers; d) The liabilities f the partners in case irregularities are detected. Prject implementatin rules shall be included in the Implementing Manual. The strategic prject is t be cnsidered a capacity building prject in its entirety: the rules as in art. 20 f Regulatin (EU) 1299/2013 d nt apply t the prject (i.e.: n limitatins t the implementatin f activities f the EU partners utside the EU Prgramme area; the activities must hwever be planned befrehand r be cmmunicated t the MA/JS in advance). As far as the activities t be implemented are cncerned, they must take in due accunt thse tls and/r services already present n the territry r ffered by the Eurpean Cmmissin in rder t ptimise the efficient use f public resurces. Existing tls and/r services can be adjusted accrding t the needs f the macr regin and the creatin f new tls duplicating what already available shuld be avided (e.g.: databases n financial surces, tls fr partners identificatin etc.). Additinally, special attentin shuld be paid in planning thse activities supprting the EUSAIR Gverning Bard and the Thematic Steering Grups meetings t ptimise travel and accmmdatin csts (e.g.: ne travel t attend mre than ne meeting when pssible). Finally, the strategic prject shall nt direct grant prjects. 4 Hrizntal principles 4.1 Equality between men and wmen and nn-discriminatin The strategic prject must respect the fllwing hrizntal aspects highlighted in EU regulatins and in the ADRION Cperatin Prgramme, namely: Equal pprtunities and nn-discriminatin: The strategic prject has t ensure that the activities implemented d nt generate sex discriminatin f any kind (sex, racial r ethnic rigin, religin r belief, disability, age r sexual rientatin) and t explain hw the equal pprtunity principle is rted in the prject design and implementatin. The prject is encuraged t fresee measures r actins t prmte equal pprtunities and preventing any discriminatin. Equality between men and wmen: 14

15 The strategic prject has t ensure that the activities implemented are in line with the principle f equality between men and wmen and t demnstrate hw this principle is rted in the prject design and implementatin. In additin t what abve, the fllwing crss-cutting issues must be addressed: Wide-spread take-up and use f Infrmatin and Cmmunicatin Technlgies (ICT); Scial chesin and scial innvatin; Prmtin f data availability and knwledge management accrding t the pen data principle; The strategic prject shall practically demnstrate its cntributin nt nly t the expected result and specific bjective, but shuld als be cnceived, designed and implemented t ensure that the afrementined principles are actually prmted and practically implemented (see Sectin 1 and Sectin 8 f the CP). 4.2 Sustainable develpment The ADRION prgramme invites t prmte ec-innvatin, i.e.: aiming t make a mre sustainable use f natural resurces. The implementatin f specific measures t reduce the envirnmental impact can, indicatively, include: Use f vide cnferencing t reduce travelling; Publicatins n FSC certified paper; Use f green public prcurement prcedures and innvative public prcurement where apprpriate; Use f shrt supply chains in the implementatin f prjects activities; Raising awareness f partners, beneficiaries and target grups n sustainability issues; Prmtin f activities with limited use f energy and natural resurces. 5 State Aid discipline Any public supprt granted by public funds must respect the State Aid discipline applicable at the pint f time when the public supprt is granted. Accrding t Article 107 (ex. Article 87) f the Treaty n the Functining f the Eurpean Unin, State Aid is defined as any aid granted by a Member State r thrugh State resurces in any frm whatsever which distrts r threatens t distrt cmpetitin by favuring certain undertakings r the prductin f certain gds. In relatin t the abve, the presence f State Aid can be cnfirmed nly if all the fllwing 5 pints (cumulative criteria) are fulfilled: 1) The measure must cnfer a benefit r advantage n the recipient which it wuld nt therwise have received (which is always the case fr any Interreg prgramme); 2) It must be granted by a EU Member State r thrugh State resurces (which is always the case fr any Interreg prgramme); 15

16 3) It must selectively favur certain undertakings r the prductin f certain gds; 4) It must distrt r threaten t distrt cmpetitin; 5) It must affect trade between EU Member States. State Aid discipline applies t undertaking, i.e.: an entity engaged in an ecnmic nature and which ffers gds and services in cmpetitin (actual r ptential) with ther peratrs active in the market, carrying ut activities f an ecnmic nature, devted t the prductin and marketing f gds and services in the market. The cncept f undertaking is very wide and als includes all private and public firms and the entirety f what they prduce. Activities carried ut within the framewrk f statutry tasks nrmally perfrmed by public authrities d nt fall within the cncept f an undertaking, in view f their nnbusiness purpses and prcedures. In the evaluatin f the existence f a ptential State Aid issue, the nature f the beneficiary is therefre nt relevant since, as said, even a nt-prfit rganisatin can be engaged in ecnmic activities. The main element t take int accunt is the nature f the activities that the partner institutin and the prject intend t implement thrugh the public funding 5. Due t the specificities f the ADRION Prgramme and t ensure equal treatment amng all beneficiaries, the State Aid discipline shall apply bth t ERDF and IPA prject partners. Applicants are invited t check the ADRION prgramme web site fr further infrmatin and may als cnsult the relevant natinal authrities t btain mre specific infrmatin n rules and limitatins cncerning State Aid. 5.1 Hw t deal with State Aid The ADRION Prgramme shall treat State Aid relevant activities in accrdance with the de minimis Regulatin 6 which fresees: The ceiling fr the aid cvered by the de minimis rule is EUR (cash grant equivalent) ver any three tax year perid; The ceiling applies per EU Member State; in the case f ADRION Prgramme the aid will be cnsidered as granted by Italy (lcatin f the MA) and will nt cumulate with State Aid under de minimis regime granted by anther EU Member States; The ceiling will apply t the ttal f all public assistance cnsidered t be de minimis aid. The ceiling applies t aid f all kinds, irrespective f the frm it takes r the bjective pursued. The regulatin nly applies t transparent frms f aid, which means aid fr which it is pssible t determine in advance the grss grant equivalent withut needing t undertake a risk assessment. 5 Further infrmatin n State Aid can be fund n the Eurpean Cmmissin s DG Cmpetitin website: where als cmprehensive guidelines n the ntin f State aid are available. The INTERACT prgramme has als summarised a list f questins and answers n this tpic: 6 Regulatin (EU) N 1407/2013 n the applicatin f Articles 107 and 108 f the Treaty n the Functining f the Eurpean Unin t de minimis aid. 16

17 In rder t allw the necessary verificatins, all applicants shall fill-in the State Aid declaratin which is part f the Applicatin Package. Hwever, in case the grant wuld distrt r threaten cmpetitin by favuring sme prject partners, the Prgramme shall identify pssible measures and cnditins the prject will have t apply in rder t minimize r annulling the State Aid relevance f the identified prject activities/utputs. If this is nt pssible, the Prgramme shall adpt measures t ensure the respect f the de minimis rule. 6 The Prgramme language The fficial language f the ADRION Prgramme is English. All deliveries, dcuments, tls and cmmunicatin activities f the Prgramme management bdies will be in English; this language will als be used in all cmmunicatin with the applicants and beneficiaries and amng the prject beneficiaries themselves. Ptential beneficiaries can receive infrmatin in their natinal language by the crrespnding Natinal Cntact Pints (NCPs), wh, if they deem it relevant, can als translate the Prgramme dcumentatin in their wn language. English versin f dcumentatin and crrespndence is hwever the nly binding ne. 17

18 THE TERMS OF REFERENCE OF THE STRATEGIC PROJECT: KEY ELEMENTS 18

19 7 The strategic prject Terms f Reference The ADRION prgramme shall allcate the verall amunt devted t the Pririty Axis N 4 (see paragraph 3.5) fr the implementatin f a strategic prject which shall supprt the implementatin f the EUSAIR strategy. The related Terms f Reference and Applicatin Package shall be submitted t the ADRION MC fr apprval; it will nt be subject t publicatin. After the MC apprval, the MA/JS shall send the applicatin package t the appinted lead applicant f the strategic prject (see paragraph 8.2). 8 Prject partnership The prject prpsal must invlve partners lcated in the Prgramme gegraphical area (see paragraph 3.1) previusly identified by the Wrking Grup TO11. The minimum eligible partnership cmprises at least ne financing partner per Partner States invlved in the Prgramme. 8.1 Eligible partners Eligible partners shall be natinal, reginal and lcal public authrities previusly identified by the Wrking Grup Thematic Objective 11 (TO11) appinted by the Prgramme Task Frce (in charge f the drafting the ADRION Prgramme): Gvernment Office fr Develpment and Eurpean Chesin Plicy - Slvenia (Lead Applicant); Ministry f the Freign Affairs f Albania (Prject Partner); Directrate fr Eurpean Integratin f Cuncil f Ministers f Bsnia and Herzegvina (Prject Partner); Ministry f Turism (Cratia) (Prject Partner); Special Service fr Strategy, Planning and Evaluatin Ministry f Ecnmy, Develpment and Turism (Greece) (Prject Partner); Ministry f Freign Affairs and Eurpean Integratin (Mntenegr) (Prject Partner); Ministry f Freign Affairs f the Republic f Serbia (Serbia) (Prject Partner); Public institute fr entrepreneurship prmtin and prject develpment f the Municipality f Izla (Slvenia); Marche Regin (Italy) (Prject Partner). They must have their fficial seat and the seat f peratins in the cuntry/part f the cuntry included in the Prgramme area (with the exceptins reprted under the sub-paragraph Assimilated partners ). Assimilated partners In rder t vercme t the Prgramme gegraphical cnstraints applying t Italy, thse Italian public natinal authrities which are cmpetent in their scpe f actin fr certain parts f the eligible area but 19

20 which are lcated utside f it (i.e.: Ministries) are cnsidered as assimilated partners, with equal rights and bligatins t applicants lcated within the prgramme area. Other indicatins regarding the eligibility f partners All partners must ensure that: They have adequate human and technical resurces t ensure a sund prject implementatin and management; Their administrative invlvement in the prject des nt undermine their daily activities; Their financial cmmitment within the prject is adequate t their size and capacity; They have the capacity f advancing payments fr the implementatin f prject activities and eventual delays in reimbursement f EU cntributins will nt undermine their capacity f implementing the freseen activities within the prject. Only the legal entities eligible fr funding and listed in the Applicatin Frm (AF) may reprt their csts. In rder t ensure a prper audit trail the MA needs t knw which rganisatins receive prgramme funding and whether they are eligible accrding t the prgramme rules. Assciated partners The ADRION Prgramme fresees the invlvement f assciated partners, i.e.: thse bdies willing t be invlved in a prject with an bserver r assciated status withut financially cntributing t the prject. The assciated institutins d nt accunt fr the partnership minimum requirements; all expenditure incurred by these bdies shall be finally brne by any f the institutins acting as financing partners in rder t be cnsidered as eligible. The assciated institutins must nt act as service prviders in rder nt t enter in cnflict with public prcurement rules. The partnership must demnstrate the benefits that the invlved assciated partner shall bring t the prject and its fllw up. Expenditure incurred by these bdies shall be limited t the reimbursement f travel and accmmdatin csts related t their participatin in prject meetings. Assciated partners can als be lcated utside the Prgramme area. 8.2 Lead applicant Accrding t art. 13 f the Regulatin (EU) N 1299/2013 where there are (tw r) mre beneficiaries f an peratin in a cperatin prgramme, ne f them shall be designed by all the beneficiaries as lead beneficiary (lead partner principle). 9 Partners bligatins Eligible partners shall be directly respnsible fr preparatin and implementatin f their share f prject s activities within the partnership. 20

21 9.1 Lead partner respnsibility The partner designated by all partners t act as lead partner (art. 13 f Regulatin (EU) N 1299/2014) assumes the fllwing respnsibilities: a) Is respnsible fr the crdinatin f the drafting f the prject applicatin and f its submissin n behalf f the entire partnership. In case clarificatins are necessary during the assessment phase, the JS will address t it; b) Signs a subsidy cntract n behalf f the entire partnership with the MA; c) Ensures arrangements with the ther partners cmprising prvisins able t guarantee the sund financial management f the funds allcated t the prject and arrangements fr recvering the amunts unduly paid (a template f the subsidy cntract and partnership agreement shall be elabrated by the Prgramme and dwnladable frm the Prgramme web site); d) Assumes the respnsibility fr ensuring the implementatin f the entire peratin; in this respect it sets the crdinatin structure thrugh the appintment f key figures (e.g.: a prject crdinatr, a financial crdinatr and a cmmunicatin manager) perating fr the entire partnership; e) Ensures that expenditure presented by all partners has been incurred in implementing the peratin and crrespnds t the activities agreed between all the beneficiaries, and is in accrdance with the subsidy cntract; f) Ensures that the expenditure presented by all partners has been verified by the cntrllers appinted by the cuntry where the partner is lcated accrding t the specificities f the natinal system; g) Ensures that the prmised utputs as in the apprved applicatin are delivered in accrdance with the set timeline; h) Receives the reimbursed amunt frm the Prgramme n behalf f the entire partnership and transfers the due amunts t its partners as sn as pssible withut deducting any amunt r specific charge; i) Guarantees the reimbursement f amunts unduly paid t the MA upn receiving a recvery rder fllwing the detectin f an irregularity n behalf f the affected partner(s) (itself r prject partner); j) Ensures that all prject dcumentatin (e.g.: prgress reprt etc.) shall be kept available fr a perid f tw years frm 31 December fllwing the submissin f the payment request f the MA t the Eurpean Cmmissin including the final expenditure f the cmpleted prjects r therwise required by the specific legislatin (e.g.: State Aid). The time perid referred t shall be interrupted either in the case f legal prceedings r by a duly justified request f the Cmmissin; k) Crdinates the cmmunicatin flw twards the MA/JS with regard t the timely submissin f the prgress reprts and requests fr reimbursement; l) Is respnsible f the cmmunicatin flw between the partnership and the Prgramme (mainly with the JS and the MA), it is in charge f spreading cmmunicatin and infrmatin received by the Prgramme t its prject partners, including the annuncements t participate t seminars rganized by the Prgramme; m) Ensures prmpt slutins f management prblems (e.g.: change f partners, requests fr revisin f activities etc.). 21

22 9.2 Prject partner respnsibility Each prject partner carries ut activities planned in the apprved AF within the deadline agreed at Prgramme and partnership level. Each prject partner shall: a) Assume respnsibility twards the lead partner f repaying the received undue amunt and it assumes its respnsibility in case f irregularities in the expenditure it has declared; b) Carry ut infrmatin and cmmunicatin measures fr the public abut the prject activities; c) Ensure that all prject dcumentatin (e.g.: prgress reprt etc.) shall be kept available fr a perid f tw years frm 31 December fllwing the submissin f the payment request f the MA t the Eurpean Cmmissin including the final expenditure f the cmpleted prjects r therwise required by the specific legislatin (e.g.: State Aid). The time perid referred t shall be interrupted either in the case f legal prceedings r by a duly justified request f the Cmmissin. Obligatins f the lead partner and prject partners are laid dwn in the Subsidy Cntract and in the Partnership Agreement respectively. The Subsidy Cntract determines the rights and respnsibilities f the lead partner accrding t the lead partner principle -, the cnditins fr the prject implementatin, requirements fr reprting, financial cntrls, litigatin etc. The Partnership Agreement transfers rights and respnsibilities frm the lead partner t the prject partners. Detailed infrmatin n these tw legal dcuments shall be prvided n the ADRION web site. 10 Exclusin criteria 10.1 Exclusin frm participatin Accrding t art. 106 f Regulatin (EU) N 966/2012, ptential beneficiaries might be excluded if any f the fllwing cnditins apply: They are bankrupt r being wund up, are having their affairs administered by the curts, have entered int an arrangement with creditrs, have suspended business activities, are the subject f prceedings cncerning thse matters, r are in any analgus situatin arising frm a similar prcedure prvided fr in natinal legislatin r regulatins; They r persns having pwers f representatin, decisin making r cntrl ver them have been cnvicted f an ffence cncerning their prfessinal cnduct by a judgment f a cmpetent authrity f a Partner State which has the frce f res judicata; They have been guilty f grave prfessinal miscnduct prven by any means which the cntracting authrity can justify, including by decisins f the Eurpean Investment Bank and internatinal rganisatins; They are nt in cmpliance with their bligatins relating t the payment f scial security cntributins r the payment f taxes in accrdance with the legal prvisins f the cuntry in which they are established r with thse f the cuntry f the cntracting authrity r thse f the cuntry where the cntract is t be perfrmed; They - r persns having pwers f representatin, decisin making r cntrl ver them - have been the subject f a judgment which has the frce f res judicata fr fraud, crruptin, 22

23 invlvement in a criminal rganisatin, mney laundering r any ther illegal activity, where such illegal activity is detrimental t the Unin's financial interests; They are subject t an administrative penalty impsed by any cntracting authrity fr behaviurs mentined abve Exclusin frm subsidy Accrding t art. 107 f Regulatin (EU) N 966/2012 applicants will nt be granted financial assistance if, in the curse f the grant award prcedure, they: Are subject t a cnflict f interests; Are guilty f misrepresentatin in supplying the infrmatin required by the Prgramme as a cnditin f participatin in the grant award prcedure r fail t supply this infrmatin; Find themselves in ne f the situatins f exclusin, referred t in the previus paragraph. 11 Ways f cperatin within a prject prpsal The cperatin amng partners shall be cmpulsrily characterised by the fllwing elements (art 12.4 f Regulatin (EU) N 1299/2013): Develpment f the peratin; Implementatin f the peratin. Additinally, ADRION requires that als financing f peratin is t be cnsidered as cmpulsry. The partners can als cperate in staffing the peratin (ptinal). 23

24 While the presence/absence f the first three dimensins f cperatin is cnsidered as a cnditin f eligibility f prject prpsals, their actual shaping in prject prpsals will be als qualitatively assessed, whereas the furth dimensin (jint staffing) will be evaluated nly as a quality element. 12 Prject duratin The strategic prject shall be finalized within 31 December The lead applicant shall indicate the start and end date in the AF, taking int accunt the necessary time fr the evaluatin prcess and cntracting prcedures. The apprved peratin will be ffered the pssibility f mdifying its starting date and prject duratin as reprted in the AF befre the signature f the subsidy cntract. 24

25 The preparatry phase fr the elabratin f the prject prpsal and the time needed fr prject administrative and financial clsure shall be separately cnsidered, i.e. added t the implementatin perid. The preparatry phase can start as frm 1 st January 2014 and ends the day befre the submissin f the prject prpsal; it can be financially supprted by the Prgramme nly in case f prject apprval. Any preparatin csts incurred by the partnership shall be indicated in the AF, under the specific budget line(s) cncerned and included under the budget f the affected partners. The preparatin csts shall have the frm f a lump sum reimbursement: this means that in case f prject apprval, preparatin csts shall be reimbursed t partners with n need t present invices r ther administrative justificatin fr the incurred csts. Details n the preparatin csts are prvided in the paragraph The implementatin phase starts with the date f signature f the subsidy cntract r with an earlier date if the prject s decides: in this latter case the partnership decides, at its wn risk, t start the prject implementatin irrespective the decisin fr funding f the MC. Planned activities shall be implemented within the indicated prject start and end date. The prject clsure phase refers t the finalizatin f all the legal and administrative bligatins related t the granted activities and t the incurred expenditure. It includes the preparatin f the last prgress reprt, the final reprt and the recnciliatin with the initial granted amunt, if necessary. These activities take place after the prject fficial finalizatin f activities reprted in the AF and can last nt mre than 3 mnths. Details n hw t structure the prject activities are prvided in paragraph 17.1 prject wrk packages. 13 Funding methd ADRION cntributin is limited t a c-financing rate up t 85% f eligible csts fr all partners (i.e.: bth benefitting frm ERDF and IPA cntributin). The share f expenditure (at least 15%) nt cvered by ERDF r IPA funds shall be ensured by natinal cfinancing surces, i.e.: public funding prvided by central, reginal r lcal public authrities, btained either thrugh specific-c-financing schemes established at Partner State level r directly prvided by the public bdy invlved in the prjects7; 7 In the Applicatin Frm, lead partner and prject partners declaratin public funding is disentangled in Autmatic public cntributin and Other public cntributin. 25

26 Each financing partner invlved in the strategic prject prpsal, shall declare the nature f its c-financing while submitting the AF (see paragraph 17) in the frm f a declaratin. A general verview n the natinal c-financing systems f the ADRION Partner States is available n the Prgramme website. 14 Prject budget The system f financing is a budget-based grant (eligible csts). The grant is financed thrugh the reimbursement f eligible csts and will be calculated n the basis f a detailed estimated budget, indicating clearly the csts that are eligible fr ERDF/IPA funding. The invlved partners shall ensure stable and sufficient surces f finance t ensure bth prject implementatin and the cntinuity f the rganisatin activities thrughut the lifespan f the prject. The EU grant may nt have the purpse r effect f prducing a prfit fr the beneficiaries (prfit is defined as a surplus f receipts ver eligible csts incurred by the beneficiaries). The budget f the prject must be drafted fllwing the real cst principle 8, fully accmplishing the principles f adequacy f csts and sund financial management. As prvided under chapter 7 f the Regulatin (EU, Euratm) N 966/2012 the principle f sund financial management builds n the fllwing three principles: The principle f ecnmy: it requires that the resurces used by the beneficiary in the pursuit f its activities shall be made available in due time, in apprpriate quantity and quality and at the best price; The principle f efficiency: it cncerns the best relatinship between resurces emplyed and results achieved; The principle f effectiveness: it cncerns the attainment f the specific bjectives set and the achievement f the intended results Use f Eur The budget must be drawn up in Eur. The prject applicants nt based in the Eur zne are advised t draft their budget share using the mnthly fficial exchange rate f the mnth f apprval f the Terms f Reference by the MC, keeping in mind that reimbursement - based n actually incurred expenditure - will have t be cnverted int Eur by the beneficiaries using the mnthly accunting exchange rate f the Cmmissin in the mnth during which such expenditure will be submitted fr verificatin t the natinal cntrller. The exchange rate used fr accunting expenditure might be different frm the ne used fr the purpse f drafting the budget. Csts related t fluctuatin f freign exchange rate are nt eligible. 8 Except fr preparatin csts and when simplified cst ptins (flat rate) are used fr calculating csts under staff and ffice and administrative expenditure. 26

27 14.2 Hierarchy f rules n eligibility f expenditure Three levels f rules apply t the eligibility f expenditure in the framewrk f all Interreg prgrammes, including ADRION. The fllwing list expressly refers t the hierarchy f rules t be respected as far as the financial rules are cncerned and it is applicable bth t ERDF and IPA prject partners. EU Regulatins: Regulatin (EU, Euratm) N 966/2012 (Financial regulatin) n the financial rules applicable t the general budget f the Unin; Regulatin (EU) N 1303/2013 laying dwn cmmn prvisins; Regulatin (EU) N 1301/2013 n the Eurpean Reginal Develpment Fund (its art 3 refers t the scpe f supprt frm the ERDF); Regulatin (EU) N 1299/2013 n specific prvisins fr the supprt frm the Eurpean Reginal Develpment Fund t the Eurpean territrial cperatin gal (reference t articles N 18, 19, 20, 27 and 28); Cmmissin Delegated Regulatin (EU) N 481/2014 f 4 March 2014 supplementing Regulatin N 1299/2013 f the Eurpean Parliament and f the Cuncil with regard t specific rules n eligibility f expenditure fr cperatin prgrammes; Regulatin (EU) N 236/2014 (Cmmn implementing regulatin) laying dwn cmmn rules and prcedures fr the implementatin f the Unin's instruments fr financing external actin as far as the applicatin f public prcurement is cncerned. Prgramme rules ADRION Cperatin Prgramme; Prgramme Manual and ther Prgramme guidance dcuments t prjects issued by the MA/MC/JS (e.g.: Guidance n cmmunicatin, Implementatin Manual). Only in case there are n EU level and/r Prgramme level prvisins r they d nt ffer detailed prvisins, natinal, reginal r lcal legislatin and institutinal rules apply. Natinal rules Natinal legislatin; Lcal and/r reginal legislatin; Institutinal rules and regulatins. Natinal rules cannt prejudice r restrict the rules established at a higher level (EU and prgramme rules). Stricter prgramme and natinal rules may apply nly in areas that are nt precisely regulated at the EU level r where EU Regulatins prvide the Partner States with a discretinary pwer t set such rules. Whenever different sets f rules apply t ERDF and IPA beneficiaries, these are expressly indicated in the paragraphs and sub-paragraphs belw. 27

28 14.3 General eligibility requirements In the fllwing paragraphs a set f financial rules are presented: they are applicable bth t ERDF and IPA partners. As a general rule, expenditure is eligible fr funding if it fulfils all the fllwing general eligibility requirements: It has ccurred in the eligible perid defined by the Prgramme and within the eligible perid related t the duratin f the prject (with the exceptin f preparatin csts and prject clsure csts); It refers t csts ccurred fr the implementatin f the prject and in accrdance with the prpsal apprved by the MC r its subsequent revisins apprved by the Prgramme implementing bdies, if any; It is essential fr the implementatin f the prject and it wuld nt be incurred if the prject is nt carried ut; It relates t a prduct r service freseen in the apprved prject prpsal and that has been delivered and cmplies with publicity and infrmatin requirements; It is brne directly by the beneficiary and supprted by accunting dcuments justifying incurred expenses/payments (invices, pay rlls ) except fr csts calculated as flat rates and lump sums; It relates t an activity which has nt benefitted frm financial supprt by anther public surce (duble funding); It cmplies with the principle f sund financial management referred t abve (efficiency, effectiveness and ecnmy); It cmplies, if required, t the public prcurement rules applicable in that Partner State; It is registered in the beneficiary s accunts thrugh a separate accunting system r an adequate accunting cde set in place specifically fr the prject; It is nt in cntradictin with specific Prgramme rules; It has been validated by an authrised natinal cntrller. In accrdance with the scpe f supprt f the Regulatin (EU) N 1301/2014 the fllwing activities shall nt be supprted: a) The decmmissining r the cnstructin f nuclear pwer statins; b) Investment t achieve the reductin f greenhuse gas emissins frm activities listed in Annex I t Directive 2003/87/EC; c) The manufacturing, prcessing and marketing f tbacc and tbacc prducts; d) Undertakings in difficulty, as defined under Unin State aid rules 9 ; e) Investment in airprt infrastructure unless related t envirnmental prtectin r accmpanied by investment necessary t mitigate r reduce its negative envirnmental impact. Withut prejudice t the specific Prgramme rules defined in the specific paragraph, the fllwing expenditure is cnsidered as nt eligible (reference t art. 69 f Regulatin (EU) N 1303/2014 and art. 2 f Delegated Regulatin (EU) N 481/2014): 9 Guidelines n State aid fr rescuing and restructuring nn-financial undertakings in difficulty (OJ C 249, ). 28

29 In kind cntributins (in the frm f prvisin f wrks, gds, services, land and real estate fr which n cash payment supprted by invices, r dcuments f equivalent prbative value, has been made); Interest n debt; Purchase f land; Recverable value added tax (VAT), except where it is nt recverable under natinal VAT legislatin; Fines, financial penalties and expenditure n legal disputes and litigatin; Csts fr gifts, except thse nt exceeding EUR 50 per gift where related t prmtin, cmmunicatin, publicity r infrmatin; Csts related t fluctuatin f freign exchange rate; Charges fr natinal financial transactins. The Prgramme als cnsiders as nt eligible the fllwing expenditure: Under travel and accmmdatin budget line, the cst f taxis shall nt be reimbursed, except when (i) it can be demnstrated that n public transprt was available at the time and place needed r (ii) lcal transprtatin is cvered with a daily allwance prvided fr by the internal rules f the cncerned partner; Csts fr alchlic beverages; Heavy investments, infrastructures and wrks, as described by the Directive 2014/24/EU (annex II). Additinally, revenues, i.e.: cash in-flws directly paid by users fr the gds and/r services prvided by the prject, such as charges brne directly by users fr the use f infrastructure, sale r rent f land r buildings, r payments fr services shall reduce the eligible expenditure and cnsequently the granted amunt. Further infrmatin shall be prvided in the Implementatin Manual. Finally, the practice f shared csts shall nt be allwed, i.e.: the csts incurred fr activities carried ut by ne partner - r under its respnsibility by a sub-cntractr and cvered by mre than ne prject partner (the practice f splitting cst items paid by ne partner amng prject partners), even in cases where such activity is fr the benefit f the whle prject partnership. The budget allcated t a prject partner shall fully reflect the activities actually implemented by that partner Prject budget lines Prject budgets submitted t ADRION must be structured accrding t the fllwing budget lines: (as prvided fr by the Delegated Regulatin (EU) N 481/2014: a) Staff csts; b) Office and administrative expenditure; c) Travel and accmmdatin csts; d) External expertise and services csts; e) Equipment expenditure. 29

30 Please nte that these budget lines d nt apply t all wrk packages as described in paragraph The infrmatin prvided herewith is intended t help applicants t prperly allcate csts t each budget line during the applicatin phase. Detailed guidance n hw t reprt such csts, tgether with specific infrmatin n the natinal first level cntrl systems in place in each Partner State, will be prvided in the Implementatin Manual, expected t be published after the apprval fr funding f the strategic prject Staff csts They refer t the grss emplyment csts f staff emplyed by the beneficiary institutin (lead partner r prject partner) fr implementing the prject. Staff can either be already emplyed by the beneficiary r cntracted specifically fr the prject. Staff csts shall be budgeted and reimbursed accrding t ne f tw ptins: 1. real csts; 2. flat rate f 20% f direct csts ther than staff csts 10. The chice is made at partner level and cannt be changed during the prject implementatin. Staff csts reimbursed based n real csts Eligible expenditure under this budget line is limited t: Salary payments related t the activities which the entity wuld nt carry ut if the peratin cncerned was nt undertaken, fixed in an emplyment dcument (emplyment cntract r appintment decisin) r by law, relating t respnsibilities specified in the jb descriptin f the staff member cncerned. Payments t natural persns wrking fr the beneficiary under a cntract ther than an emplyment/wrk cntract may be assimilated t salary payments and such csts are eligible under staff csts nly when the fllwing cnditins are met: The persn wrks under the beneficiary s instructins and, unless therwise agreed with the beneficiary, n the beneficiary s premises; The result f the wrk carried ut belngs t the beneficiary; The csts are nt significantly different frm thse fr persnnel perfrming similar tasks under an emplyment cntract with the beneficiary. If thse cnditins are nt met, this expenditure must be allcated under budget line External expertise and services csts. Any ther csts directly linked t salary payments incurred and paid by the emplyer (such as emplyment taxes and scial security including pensins) as cvered by Regulatin (EC) N 883/2004 prvided that they are: Fixed in an emplyment dcument r by law; In accrdance with the legislatin referred t in the emplyment dcument and with standard practices in the cuntry and/r institutin where the individual staff member is wrking; 10 Direct csts ther than staff csts are: travel and accmmdatin csts; external expertise and services csts; equipment expenditure. 30

31 Nt recverable by the emplyer. Methds fr calculating the eligible staff cst vary accrding t the type f assignment t any individual staff member, as specified belw: 1. full time: an emplyee dedicated 100% f his/her wrking time t the prject. The full-time assignment t the prject must be included in the emplyment/wrk cntract r in a specific statement/rder issued by the partner structure. N registratin f the wrking time (e.g. time sheets) is required. In such cases the ttal f the grss emplyment cst is eligible. 2. part-time with a fixed percentage f time wrked per mnth: an emplyee dedicated t the prject by a fixed percentage f his/her wrking time. This percentage is set ut in a dcument issued by the partner at the beginning f the prject, and/r in the same emplyment/wrk cntract. N registratin f the wrking time (e.g. time sheets) is required. In such cases the fixed percentage f the grss emplyment cst is eligible. 3. part-time with a flexible number f hurs wrked per mnth: an emplyee dedicated t the prject by a flexible percentage f his/her wrking time. In such case the hurly rate shall be calculated accrding t the fllwing: hurly rate = latest dcumented annual grss emplyment cst/1720 (standard annual wrking time fixed by Regulatin (EU) N 481/2014). Eligible staff cst shall result by multiplying the hurly rate by the number f hurs actually wrked n the prject by each cncerned staff, as resulting frm the wrking time registratin system (e.g. time sheets) cvering 100% f the actual wrking time f the individual cncerned. 4. cntracted n an hurly basis: an emplyee is cntracted n an hurly basis and dedicates a certain number f hurs t wrk n the prject. The staff csts are calculated n the basis f the hurly rate fixed in the emplyment/wrk cntract. Data frm the wrking time registratin system (e.g. time sheets) prviding infrmatin n the number f hurs spent per mnth n the prject are required. Eligible staff cst shall result by multiplying the hurly rate by the number f hurs actually wrked n the prject by each cncerned individual. Staff csts reimbursed accrding t the flat rate Staff csts f any beneficiary chsing this ptin will be reimbursed fr an amunt equal t 20% f the sum f csts under all ther budget lines, except staff csts and ffice and administrative expenditure, withut the need f submitting any emplyment/wrk cntract, any invice r dcument having equivalent value nr any prf f payment; The fllwing table intends t supprt the chice between staff csts based n real csts and flat rate highlighting prs and cns: Staff csts reimbursed based n real csts Partnership can decide, in principle, the extent f invlvement f their staff; Prject appraisal shall be aimed at verifying whether the staff csts are prprtined with the prpsed activities and in accrdance with average persnnel csts expenditure within the prgramme area; Prject elabratin Staff csts reimbursed base n flat rate (20% f the direct csts ther than staff csts) Ceiling fr staff csts; Prject appraisal shall be aimed at verifying whether the staff csts are in accrdance with the prpsed activities; 31

32 Prject implementatin Adequate audit trail f the necessary dcumentatin shall be kept in accrdance with the rules set abve t get the reimbursement f staff csts; Staff csts expenditure shall be prir validated by the natinal cntrller t be reimbursed; Staff csts can be revised (increased r decreased) during the prject implementatin. N accuntancy is freseen (i.e.: n prvisin f supprting dcumentatin shall be prvided t first level cntrllers); When reprting staff csts, the distributin f csts between wrk packages shall reflect the distributin between wrk packages f the respective direct csts (e.g. csts fr external experts and equipment amunt t 40% f wrk package 1 and 60% f wrk package 2; thus 40% f staff csts shall be allcated t wrk package 1 and 60% t wrk package 2); Staff csts shall nt be subject t the validatin f natinal cntrllers t get reimbursed; Flat rate ptin must be kept alng the entire prject implementatin; Staff csts are autmatically generated in the wrk package if csts under ne r mre f the fllwing budget lines: travel and accmmdatin, external experts and services, and equipment are budgeted Office and administrative expenditure It cvers perating and administrative expenditure incurred by the beneficiary rganisatin that supprts the delivery f prject activities. Cst items cmprised in the budget line are the fllwing (exhaustive list): Office rent; Insurance and taxes related t the buildings where the staff is lcated and t the equipment f the ffice (e.g. fire, theft insurances); Utilities (e.g. electricity, heating, water); Office supplies; General accunting prvided inside the beneficiary rganisatin; Archives; Maintenance, cleaning and repairs; Security; IT systems; Cmmunicatin (e.g. telephne, fax, internet, pstal services, business cards); Bank charges fr pening and administering the accunt r accunts where the implementatin f an peratin requires a separate accunt t be pened; Charges fr transnatinal financial transactins. Office and administrative expenditure shall be reimbursed by the Prgramme accrding t a flat rate f 10% f eligible staff csts. N detailed budget needs t be planned fr this budget line since the expenditure shall be autmatically calculated by the n line system fr the applicatins submissin (e-ms), bth in the applicatin phase and when submitting financial prgress reprts. This expenditure will be reimbursed withut the need f submitting any invice r dcument having equivalent value r any prf f payment. 32

33 Travel and accmmdatin csts Expenditure under this budget line refers t the csts incurred by the partner rganisatin fr travels and accmmdatin f its wn staff necessary fr the delivery f the prject. The fllwing items are eligible under this budget line: Travel csts (e.g. tickets, travel and car insurance, fuel, car mileage, tll, and parking fees); Meals csts; Accmmdatin csts; Visa csts; Daily allwances. The fllwing principles apply: 1. Travel and accmmdatin csts must clearly link t any prject s activities and be essential fr their effective delivery; 2. Csts must be definitely brne by the beneficiary rganisatin (direct payment by a staff member f the partner rganisatin must be supprted by a prf f reimbursement frm the emplyer); 3. The principle f sund financial management shuld guide t the chice f transprt and accmmdatin. In line with the result-riented plicy apprach, effectiveness shuld be the leading principle. In the secnd instance, cst-efficiency shuld be ensured, taking int accunt the entire cst f the missin (travel cst, staff csts related t the travel, etc.). In particular: Beneficiaries must always chse the mst ecnmical mdes f transprt. Exceptins frm this principle must be duly justified in each case; Accmmdatin csts can be accepted if they are in the middle price range, while higher price ranges must be duly justified in each case; Beneficiaries must respect either their rdinary internal rules fr travel and accmmdatin csts (if any), r respect any maximum ceiling fr travel and htel csts established at natinal level, whichever is stricter; In the absence f internal and/r natinal rules, maximum ceilings fr travel and accmmdatin established by the Cmmissin and applicable thrughut the prgramme area shall apply. They shall be cnsidered as maximum ceilings 11. The amunts exceeding such values shall be in any case cnsidered nt eligible; 4. Any expenditure item defined as travel csts, accmmdatin csts, csts f meals r visa csts that is already cvered by a daily allwance, cannt be accunted fr and reimbursed in additin t the daily allwance, i.e. n duble funding is allwed (ref: Article f Regulatin (EU) N 1303/2013). Beneficiaries shall chse the accunting methd (daily allwance r direct csts) which is clser t their rdinary practice and/r internal rules. Travel and accmmdatin csts f:

34 a) External experts and service prviders including speakers, chairpersns, teachers, etc. shall be reimbursed under the external expertise and services budget line; the same applies t travel and accmmdatin csts; b) Assciated partners can nly be claimed under the external expertise and services budget line. The Assciated partners shall be requested t indicate in their Declaratin (see paragraph 16) which financing partner shall fund their travel and accmmdatin expenditure. In case f apprval f prject prpsals, csts fr travel and accmmdatin fr attending prgramme r natinal authrities meetings and events shall be cnsidered as eligible: it is advisable that sme additinal budget is allcated t attend these events External expertise and services csts This budget line cvers csts paid by beneficiaries t external experts and service prviders n the basis f cntracts r written agreements and against invices r requests fr reimbursement. Sub-cntracting between beneficiaries inside the same prject partnership is nt allwed. Beneficiaries can sub-cntract t external experts and service prviders nly tasks r activities which are essential fr the implementatin f the prject. When awarding external expertise and service cntracts all prject partners must ensure that EU and natinal rules n public prcurement are respected, in accrdance with the amunt f the cntract. All cntracts must cmply with the basic principles f transparency, nn-discriminatin and equal treatment as defined in the EC Treaty and the Cmmissin Interpretative Cmmunicatin n the Cmmunity law applicable t cntract awards belw the EU threshlds 12. In particular: EU beneficiaries shall respect EU Directives and their respective natinal legislatin n public prcurement, depending n the amunt cncerned. Furthermre, whenever public bdies have defined internal rules fr the purchase f gds and service belw the minimum threshlds set by natinal laws, such internal rules must be respected. IPA beneficiaries shall refer t Article 45 Prcurement f the Regulatin (EU) N 447/2014 n the specific rules fr implementing Regulatin (EU) N 231/2014 establishing an Instrument fr Pre-accessin assistance (IPA II) says that Fr the award f service, supply and wrk cntracts, by beneficiaries the prcurement prcedures shall fllw the prvisins f Chapter 3 f Title IV f Part Tw f Regulatin (EU, Euratm) N 966/2012 and f Chapter 3 f Title II f Part Tw f Delegated Regulatin (EU) N 1268/2012 which apply in the whle prgramme area, bth n the Member State and n the IPA II beneficiary/ies' territry. This means that the EU External Actin prcurement rules are t be used (PRAG) with regard t services, supplies and wrks cntracts awarded thrugh transnatinal grant ( 13 Infrmatin n the Practical Guide t Cntract Prcedures fr EU External Actins (PRAG) can be fund in: pplicable+t+external+actins+financed+frm+the+general+budget+f+the+eu+and+frm+the+11th+edf&header_ke ywrds=eprag%2c+eurpa 34

35 In case f prcurements f gds and/r services f an amunt fr which natinal legislatins r internal rules f beneficiaries allw direct granting f cntracts and fr private beneficiaries the fllwing Prgramme rules shall be respected: Cntracts belw EUR (plus VAT): beneficiaries must perfrm and dcument the executin f adequate market researches (e.g. thrugh cllecting bids, using centralised e-prcurement services, etc.) frm at least three independent external prviders. Cntracts f mre than EUR (plus VAT): beneficiaries must perfrm and dcument the executin f adequate market researches (e.g. thrugh cllecting bids, using centralised e-prcurement services, etc.) frm at least frm five independent external prviders. Cntracts shall be awarded t the bidders ffering best value fr mney, i.e. the ecnmically mst advantageus bid. Dcumentary evidence f the cmpetitive prcedure carried ut shall be submitted t natinal First Level Cntrl, including evidence f cmparative evaluatin f bids and evaluatin criteria applied fr awarding the cntract. Detailed infrmatin shall be prvided in the Implementatin Manual. Expenditure f external expertise and service csts shall be limited t the fllwing: a) Studies r surveys (e.g. evaluatins, strategies, cncept ntes, design plans, handbks); b) Training (e.g. venue and trainers); c) Translatins; d) IT systems, mdificatins and updates (e.g. setting-up and/r update f a prject IT system); e) Prmtin, cmmunicatin, publicity r infrmatin; f) Financial management; g) Services related t the rganisatin and implementatin f events r meetings (including rent, catering r interpretatin); h) Participatin in events (e.g. registratin fees); i) Legal cnsultancy and ntarial services, technical and financial expertise, ther cnsultancy and accuntancy services; j) Intellectual prperty rights; k) Verificatin and validatin f expenditure carried ut by authrized natinal cntrllers; l) Prvisin f guarantees by a bank r ther financial institutin where required by the prgramme; m) Travel and accmmdatin fr external experts, speakers, chairpersns f meetings and service prviders; n) Other specific expertise and services needed fr the prject. Eventual csts fr prmtinal material (e.g.: gadgets) must be allcated under this budget line and will be cnsidered as eligible nly if it is demnstrated its efficacy in reaching ne r mre target grups. It is recmmended that its expenditure will nt be higher than 0.5% f the ttal eligible budget unless duly justified. External expertise and services have t be duly specified in the AF by describing at least the nature and quantity f the expertise/service, the link t the relevant deliverable r utput as listed in the wrk plan and the related budget f the cncerned prject partner. 35

36 Csts referring t prject-related tasks sub-cntracted by the beneficiary t in-huse bdies are eligible under external expertise and service budget line n cnditin that the fllwing is met: Csts incurred by the in-huse bdy are charged n a real csts basis withut any prfit margin; The sub-cntracting t the in-huse bdy f prject related tasks cmplies with natinal and institutinal public prcurement prvisins in frce Equipment expenditure This budget line cvers csts related t equipment purchased, rented r leased by a beneficiary which is essential fr the implementatin f the prject and fr carrying ut prject activities. Cst f equipment is nly eligible if freseen in the apprved AF. During prject implementatin, purchase f any equipment nt explicitly mentined in the AF will have t be subject t prir apprval by the MA/JS. Eligible cst items under this budget line are: Office equipment; IT hardware and sftware; Furniture and fittings; Labratry equipment; Machines and instruments, Tls r devices; Vehicles; Other specific equipment needed fr the prject. In principle, the abve mentined equipment items can be gruped int the fllwing categries: (i) Equipment necessary fr the prject implementatin: i.e.: a tl r device used t carry ut prject activities and necessary fr the delivery f the prject utputs and, therefre, used fr that scpe. Under this categry there is, fr example, the equipment fr general ffice use as cmputers, ffice furniture, printers, cameras, etc. upn cnditin that it is fr the exclusive use fr the prject and it can be demnstrated. When the exclusive use fr prject purpses and activities cannt be demnstrated, such csts are deemed t be cvered under the ffice and administratin budget line; (ii) Equipment cnsidered as functinal t the implementatin f pilt actins. It can be a tl r a device that remains in use by the target grup after the cmpletin f the prject. Cst items accunted under the equipment budget line cannt be reimbursed under any ther budget line. Csts f ffice equipment already in pssessin f the beneficiary rganisatin and used t carry ut prject activities are nt eligible under this budget line, as such csts are already cvered under the budget line ffice and administratin. 36

37 Depreciatin csts f equipment shuld be charged t the time perid when the equipment is used fr the prject purpses. The full cst f equipment is nly eligible when the fllwing cnditins are cumulatively satisfied: Equipment item is exclusively used fr the prject implementatin; The depreciatin perid is shrter than the time lap between the purchase f the equipment and the end f the prject; Equipment item is nt depreciable (e.g. lw value asset) accrding t the natinal legislatin f the cncerned partner. Mrever, the equipment cannt be sld (i.e.: change f wner) fr at least 5 years after the prject end date. The selectin f the suppliers fr the purchasing, rental and/r leasing f any equipment item shall cmply with the relevant EU and natinal public prcurement law in frce, and in case f the IPA partners, with the PRAG rules in line with the prvisins f the Financial Regulatin. In case f prcurement f equipment f an amunt fr which natinal legislatin r internal rules f beneficiaries allw direct granting f cntracts and fr private beneficiaries the fllwing Prgramme rules apply: Cntracts belw EUR (plus VAT): beneficiaries must perfrm and dcument the executin f adequate market researches (e.g. thrugh cllecting bids, using centralised e-prcurement services, etc.) frm at least three independent external prviders. Cntracts f mre than EUR (plus VAT): beneficiaries must perfrm and dcument the executin f adequate market researches (e.g. thrugh cllecting bids, using centralised e-prcurement services, etc.) frm at least frm five independent external prviders. Cntracts shall be awarded t the bidders ffering best value fr mney, i.e. the ecnmically mst advantageus bid. Dcumentary evidence f the cmpetitive prcedure carried ut shall be submitted t natinal First Level Cntrl, including evidence f cmparative evaluatin f bids and evaluatin criteria applied fr awarding the cntract. Cntracts shall be awarded t the bidders ffering best value fr mney, i.e. the ecnmically mst advantageus bid. Dcumentary evidence f the cmpetitive prcedure carried ut shall be submitted t natinal cntrllers, including evidence f cmparative evaluatin f bids and evaluatin criteria applied fr awarding the cntract. Detailed infrmatin shall be prvided in the Implementatin Manual. 37

38 PROCEDURE FOR SUBMISSION AND SELECTION OF THE STRATEGIC PROJECT 38

39 15 The Applicatin Package As reprted in paragraph 7, the Terms f Reference and the Applicatin Package fr the submissin f the strategic prject are apprved by the MC. The apprved dcumentatin shall be sent by the MA/JS t the lead applicant, which shall frward t the prject partners. The Applicatin Package cntains: The present manual; The ADRION Cperatin Prgramme; The ff-line Applicatin Frm (AF); The cmpulsry annexes (templates) t be filled in and attached t the AF: Lead Applicant and State aid declaratins; Prject partner and State aid declaratins; Declaratin f interest by each assciated partners (if any). Declaratins must be dated, stamped, signed in blue ink by the legal representative (r his/her authrized delegated persn), and n headed paper and scanned and upladed t the prgramme n line system while submitting the applicatin frm. Declaratins signed by the legal representative/delegated persn must be accmpanied by a dcument attesting that he/she hlds the pwer f signature and representatin and by a valid identity dcument (e.g. identity card, passprt). 16 Submissin f the strategic prject The prject applicatin must be submitted thrugh the nline applicatin system (e-ms) available n the prgramme web site www. interregadrin.eu (guidelines fr the use f the e-ms are available in the prgramme web site). The lead applicant needs t be registered t get an ID and passwrd n the e-ms system t be able t create and submit valid applicatin frms n behalf f the entire partnership. The applicatin must be drawn up in English, using the nline frm specifically designed fr this purpse. It must be submitted by the deadline (date and CET time) mentined in the Terms f Reference, using the nline AF. N ther methd f submissin f an applicatin will be accepted. If the applicatin is submitted in any ther way it cannt be received. The prject prpsal shall: Be submitted by the lead applicant n behalf f the entire partnership; Be submitted using the credentials f the lead applicant; Lead applicant s credentials (e.g.: address) must cincide with the address f the legal representative as reprted in the sectin B f the applicatin frm. Generic addresses (e.g.: inf@xxx.xx shall nt be accepted). The lead applicant shall ensure t have fficially submitted its electrnic AF and t have received an acknwledging receipt f their submissin. The lead applicant shall regularly infrm the ther prject partners n the cmmunicatins received by the MA/JS. 39

40 At the stage f electrnic submissin f prject prpsal, n paper dcuments shuld be sent t the Prgramme MA/JS. Declaratins in riginal shall be asked t the applicants nly after the prject prpsal has been apprved fr funding. 17 Structure f the Applicatin Frm The Applicatin Frm is structured accrding t the fllwing: 1. Prject summary; 2. Partnership; 3. Prject descriptin; 4. Wrk plan, structured accrding t wrk packages; 5. Prject budget verview; 6. Partners budget; 7. Attachments. The submitted prject prpsal needs t demnstrate: What it wants t change and why; What it needs t deliver t btain the change; Hw it will d it and what resurces it needs fr it. Its interventin lgic can be visualized as fllws: The submitted prject prpsal must shw a direct link t the prgramme interventin lgic (see paragraph 3.3 and Annex 1) and its cntributin t the prgramme bjectives achievement: The prject main verall bjective cntributes t the prgramme pririty specific bjective; the prject verall bjective describes the general, strategic and lng term change the prject intends t supprt fr the benefit f the identified target grup(s); The prject specific bjective describes the specific and immediate effects f the prject that can be realistically achieved within the prject life-time; The prject result cntributes t prgramme result, even if prject results will nt be directly aggregated n prgramme level, as prgramme result indicatr measures the change in the whle prgramme area; The prject utputs cntribute t the achievement f prgramme utputs s they can be aggregated at prgramme level. 40

41 17.1 Prject wrk packages Prject activities within the frame f the ADRION Prgramme shall be rganised arund wrk packages, i.e.: a grup f related prject activities necessary t prduce prject deliverables and utputs. The rganisatin f the activities in wrk packages ensures a shared knwledge abut the prject s structure and bjectives amng all partners; additinally, it increases the capacities f the ADRION Prgramme MA/JS t fllw up the implementatin f the expected activities and facilitates the prcedures fr reprting and accunting f expenditure. Each wrk package, structured in activities, shall prvide infrmatin n the partners invlved, the descriptin f the related deliverables and expected utputs, and the related budget. Mre specifically, each wrk package is cmpsed f defined activities and related deliverables and expected utputs: An activity is a specific task perfrmed fr which resurces are used; the prpsed activities shall have a lgical sequence and fr the direct benefit f the area cncerned by the authrities invlved in the prject; A deliverable is a tangible r intangible bject prduced as a side-prduct f the prject that cntributes t the achievement f a prject utput. Mre than ne deliverables can be necessary t prduce ne utput; An utput is what has actually been prduced as a result f the funding given t the prject. It shall be captured by an utput indicatr and directly cntributes t the achievement f prject result(s). The partnership can structure its prject prpsal accrding t a maximum number wrk packages; sme f them are, hwever, cmpulsry: 41

42 a) Prject management and crdinatin f activities; b) Cmmunicatin; c) Prject implementatin which can be disentangled in further 6 wrk packages Prject management and crdinatin f activities In this wrk package the activities aim at ensuring a sund management and crdinatin f the prject cncerning bth the verall prject management and all aspects linked t the financial management must be described. It shall als prvide prf n hw the wrk between the partners invlved by building a strng cllabrative relatinship is rganized and distributed. The crdinatin (e.g.: regular prject steering cmmittees, prject crdinatin unit) and management activities shall result in the successful implementatin f the prject as well as in the prductin and submissin f the administrative dcuments fr accunting f expenditure and reprting n the activities implemented. Structure, respnsibilities, and prcedures fr the day-t-day management and crdinatin (including whether it is freseen the externalizatin f the management), the reprting and evaluatin prcedures, if freseen, risk and quality management shall be included in this wrk package. The reprting shall take int accunt the reprting perids as described in the paragraph and cnsists f the submissin t the MA/JS f the request fr reimbursement nt later than 2 mnths after the end f the reprting perid in subject. The wrk package shall als include the activities related t the prject clsure that have t be finalized within 3 mnths after the fficial end date f the prject: they include the submissin f the required final administrative dcuments - the final prgress reprt the final payment claim and the eventual recnciliatin with the initial granted amunt, if necessary Cmmunicatin activities The cmmunicatin wrk package shall include the strategic planning f activities and clear indicatin f the target grup(s) t address. Cmmunicatin bjectives (frm the starting pint t the mst ambitius gal: Raise awareness, Influence attitude, Increase knwledge, Change behavir) must be specified and measurable. The fllwing elements shall be cnsidered: Identificatin and definitin f the bjective, message, apprach/tactics chsen and target grup the prject intends t achieve; Integratin with the verall prject strategy and prject specific bjectives; Quantificatin f the cmmunicatin prducts (target values), detailed planning f their realizatin and estimated budget; Specificatin between internal (management) and external cmmunicatin; Definitin f the related budget; Interactin f the partners (e.g.: activities implemented at partner level, disseminatin f results); Measurement f the efficiency f the planned cmmunicatin activities; Prvisins fr feedback mechanisms and evaluatin measures fr the cmmunicatin activities; Insurance f adequate capitalizatin f the prject achievements (capturing knwledge prduced by the prject and drawing lessns n an nging basis). 42

43 Cmpulsry deliverables are the elabratin f a EUSAIR cmmunicatin strategy, the EUSAIR web site, and publicatins (either addressed t the wide public r t the EUSAIR Gverning Bard/Thematic Steering Grups). In rder t ensure a shared and cnsistent brand identity f the ADRION prgramme a cmmn brand identity has been develped. The strategic prject shall be required t use an integrated prject lg (template t be prvided by the ADRION prgramme). Additinally, in rder t ensure accessibility, durability and cnsistency f the infrmatin, the strategic prject will have its wn dedicated page n the prgramme website, shwcasing the prject t a wide audience. The prject page(s) will include a pre-filled infrmatin field cmpleted by the prgramme, and dynamic infrmatin t be filled-in by prjects. Targeted infrmatin n these last aspects shall be prvided in the Implementatin Manual Prject implementatin The prject implementatin is the heart f the prject and describes what the partnership intends t implement t reach the freseen gals. One up t six wrk packages can be devted t describe the prject implementatin; it refers t a grup f related prject activities necessary fr the realizatin f the described prject utputs and gals. The realizatin f pilt actins (e.g. demnstratin activities, if freseen) shall be included in ne f these wrk packages Nn-cmpulsry wrk packages Preparatin csts The apprved prjects which have successfully signed the Subsidy Cntract and the Partnership Agreement with the MA are entitled t receive reimbursement f their preparatin csts in the frm f a lump-sum f max EUR f ttal eligible expenditure per prject 14. That means that in case prjects implement activities related t the preparatin f the prject prpsal in the AF (the lump sum is nt autmatic), they will be reimbursed with n need t present invices r ther supprting dcuments fr the incurred csts. The reimbursement f preparatin csts will fllw the principles specified hereunder: Any preparatry csts incurred by the partnership must be indicated in the AF, under the specific budget line(s) cncerned and included under the budget f the cncerned partners; The frmal request fr reimbursement f the preparatry csts can be submitted by the lead partner nly after the signature f the Subsidy Cntract and Partnership Agreement; The amunt f actual reimbursement will result frm applying the c-financing rate applicable (up t 85%) t the respective preparatry cst budget f the cncerned partners (e.g. t which the lump sum is allcated), as indicated in the AF; 14 Reimbursement shall take place if funds are available; if nt they will be reimbursed tgether with the first request fr reimbursement sent by the prjects. 43

44 The lump sum will be reimbursed t the lead partner; it will be its duty t transfer t its partners their respective shares, accrding t the apprved preparatry csts; Any csts incurred by the prject between the date f submissin f the AF and the date f signature f the subsidy cntract (between the end f the preparatin perid and the start f the implementatin perid) fr negtiating/satisfying specific cnditins fr apprval cannt be claimed as they are nt cnsidered part f the preparatin csts; In case the prject is nt implemented r even started, the MA will recver the amunts f EU funds already reimbursed based n this lump-sum. Under the Wrk Package Preparatin csts all budget lines but equipment can be budgeted Reprting perids The budget is structured accrding t six mnthly perids as frm the prject start date; they are used t measure the advancement f the prject implementatin and t ask fr reimbursement t the Prgramme. The six-mnths reprting perid mirrrs the amunts that will be spent and paid during that perid; as a cnsequence f that, it partly reflects all the activities related budget planned in that perid. If, fr example, an activity is finalized at the end f its reprting perid, its payment may take place in the fllwing perid (and related csts as well). 18 Assessment f the applicatins The assessment f the applicatin is crdinated by the MA and perfrmed by the JS, with the supprt f the NCPs. In rder t ensure equal, fair and transparent apprach, the prject prpsal is assessed accrding t a set f criteria and sub-criteria previusly elabrated by the Prgramme, apprved by the MC and specified in the Annexes 2 and 3. The results f the assessment are reprted in a prject assessment grid t be prepared fr the supprting the MC decisin. The MC is in charge f the final decisin n the apprval fr funding. Only the infrmatin prvided in the applicatin frm shall be subject t the assessment Admissibility and eligibility check The prject prpsal is examined against the admissibility and eligibility requirements as listed in Annex 2. The verificatin f the presence f all the requirements is perfrmed by the JS in cperatin with the NCPs when necessary. The lead applicant and partners can be cntacted by their NCPs fr the submissin f further dcumentatin if deemed as necessary. In case the MA/JS detects lack f the admissibility/eligibility requirements r the presence f ther frmal mistakes ther than thse listed in Annex 2, the lead applicant shall be duly infrmed by the JS t crrect them; the crrectin may imply the resubmissin f the prject prpsal and/r f its attachments. 44

45 18.2 Quality assessment The quality assessment shall be perfrmed by the JS. The quality assessment intends t prvide the MC with an verall picture cntaining relevant infrmatin t allw its decisin fr funding. It des nt fcus n thse elements - relevance, quality f partnership - already ensured by the Wrking Grup TO11 during its elabratin; indeed, it analyses thse elements like cherence, apprach, quality f management, cmmunicatin, wrk plan and budged aimed at ensuring an efficient and effective supprt t EUSAIR. The assessment is perfrmed accrding t a list f criteria and sub-criteria and their fulfilment by the prject prpsal. The quality assessment criteria fcus n strategic and peratinal elements: Strategic assessment criteria - whse main aim is t determine the cherence and cntributin f the prject prpsal t the EUSAIR gvernance; Operatinal assessment criteria - whse main aim is t assess the viability and the feasibility f the prpsed activities, as well as their value fr mney in terms f resurces used vs. freseen achievements. Strategic criteria Prject s cntext (cherence and apprach) Cperatin character Prject s cntributin t prgramme s bjectives, expected results and utputs Partnership cntributin t EUSAIR Operatinal criteria Management Cmmunicatin Wrk plan Budget Each assessment criterin is cmpsed f sub-criteria are listed in Annex 3. Mrever, each sub-criterin will be attributed a scre ranging frm 1 t 5 accrding t the fllwing grid: 5 Excellent the sectin f the applicatin analysed in accrdance with the requirement f the criterin is f excellent quality and prvides clear and cherent infrmatin 4 Gd the sectin f the applicatin analysed in accrdance with the requirement f the criterin is clear and cntain minr shrtcmings 3 Adequate -the sectin f the applicatin analysed in accrdance with the requirement f the criterin is sufficiently clear and requires further clarificatin frm the applicant 2 Sufficient - the sectin f the applicatin analysed in accrdance with the requirement f the criterin is f lw quality 1 Pr- the sectin f the applicatin analysed in accrdance with the requirement f the criterin des nt meet the requirement/the infrmatin is nt present 45

46 The ttal scre f each criterin is the sum f the scres attributed t each sub-criterin. The prject prpsal must reach at least an verall scre f 75 ut f 125 (i.e.: 60% f the verall maximum scre). In case the assessment reveals weaknesses, the lead applicant will be asked fr revising the prject prpsal until it has reached a satisfactry quality s t ensure a future adequate prject implementatin. Cnditins fr apprval (see paragraph 19) can nevertheless be prpsed either by the JS r prpsed by the MC itself State Aid check The State Aid check will be perfrmed during the prject evaluatin and will be based n the examinatin f the AF and the lead applicant and prject partners declaratins. The check is perfrmed by external experts; in case f clarificatins, the lead applicant may be cntacted by the JS n behalf f the expert. The analysis shall bring t ne f the fllwing utcmes: a) The prject activities are nt State Aid relevant; b) Sme prject activities are State Aid relevant (list shall be prvided) but the applicatin f the State Aid discipline (de minimis) can be avided if specific cuntermeasures apply (list shall be prvided); c) The applicatin f the State Aid discipline fr sme activities cannt be avided, bringing t the respect f the de minimis threshld t thse specific activities and partners (list shall be prvided). In case letter b), r c) r bth apply, references shall be included in the cnditins fr imprvement and then in the Subsidy Cntract in rder t ensure their respect; additinally, they will be regularly checked by the MA/JS during the prject implementatin Anti-fraud checks The anti-fraud checks shall cnsist f the verificatin f the presence f fraudulent behaviurs r ther fraudulent practices by the partners invlved in the prject prpsal. The checks will be dne at Partner State level by the relevant natinal authrities with the supprt f the NCPs and with the use f tls and practices currently in use (e.g.: crss checks with the natinal authrities administering ther funds, knwledge f previus fraudulent applicatins and ther fraudulent practice; use f EU databases) Finalizatin f the prject assessment grid The results f the assessment shall be reprted in a prject assessment grid t be submitted t the MC in charge f the funding decisin. 46

47 19 Decisin making and Cmmunicatin t the lead applicant The decisin fr funding is adpted by the MC by cnsensus. The prject prpsal can be: a) Apprved: the prpsal is cnsidered ready t start, fulfilling the requested quality level and respnding t the selectin criteria; b) Apprved under cnditins: the prpsal is cnsidered apprved prvided that the lead partner and/r the prject partners satisfy specific cnditins within a given deadline. If the prject prpsal is funded under cnditins, the latter are apprved by the MC t; cnditins can address t the number r type f actins (e.g.: increased/reductin r change) vis-à-vis the prject budget. The lead partner shall be ntified by MA/JS in written frm abut the MC decisin. It shall immediately infrm all the partners accrdingly. The picture belw summarizes the assessment prcess: Additinally: Under n circumstances the amunt awarded may exceed the amunt requested; The grant awarding des nt establish an entitlement fr subsequent years; In case additinal funding frm ther surces is available, it will supprt additinal activities than thse funded by the Prgramme. The apprved peratin shall be asked t deliver the MA/JS within the set deadline the riginals f the partners declaratins upladed t the e-ms when submitting the applicatin and/r their updated versin if any element therein has been mdified as a cnsequence f the negtiatin prcess between MA/JS and the lead partner. 20 Cntractual prvisins Update f the de minimis declaratin 47