Project Changes. Lead Partner Seminar 4th Call for Proposal Budapest 10th December 2012

Transcription

1 Project Changes Lead Partner Seminar 4th Call for Proposal Budapest 10th December 2012

2 Content Fundamental principles Main categories of project change Single types of project change

3 Fundamental principles The partnership is committed to implement the project on the basis of the originally approved Application Form If project changes are necessary, LP and PPs should be prepared (sound knowledge of section 3 Implementation Manual) If needs / problems which might require a project change occur, the JTS shall be contacted immediately

4 Fundamental principles Essential that the project maintains: The general character of the original project as outlined in the Application Form (objectives & results) Its transnational character Fundamental eligibility criteria Partners / Activities / Expenditures / Timeframe / Area

5 Main categories of project changes Project changes can be grouped in two main categories: Category / Procedure Main differences Minor* Change Substantial change Procedure - Notification of JTS - Approval in Progress Report - Clarification with JTS (involvement of SCPs?) - Approval by MA or MC Effects on SC - None - Amendment of SC Consequences for LP / PPs - Proper justification and documentation needed but relatively limited bureaucratic burden - Longer procedure, set of documents to be elaborated (Annex II, AF, budget change table, co-fi statements,...) - Eligibility of costs from date of letter of comittment (in case of MA/MC approval) - Reporting of costs only after signature of SC amendment Further - Can be requested repeatetly and during entire project lifetime - Certain changes only possible 1+1 time - Last change 2 months before project end * Less significant changes according to IM

6 Main categories of project changes Main categories and related procedures: Steps Category / Procedure Minor* Change Substantial change Notification - LP informs JTS, describing and justifying the planned changes - LP informs JTS, describing and justifying the planned changes. JTS informs SCP (in case) Clarification - JTS requests further / more detailed explanations - JTS signals support for the change - JTS requests further / more detailed explanations Elaboration of documents Approval - LP prepares documents needed for MA/MC approval and submits to them to the JTS - LP reports the change in the PR - Change is officially approved with the approval of this PR SC amendment * Less significant changes according to IM - JTS submits documents (including JTS recommendation) to MA/MC - MA/MC Decision - JTS informs LP about MA/MC decision and requests all documents needed for SC amd. - LP provides all documents, JTS elaborates Addendum to the SC - Signature of Addendum to the SC

7 Type of project changes I. Type of project change Category Minor Change Partnership change Project content change Budget reallocation among Project Partners Substantial change Always needs MA / MC decision - In case of minor content changes - Content change related to the 10% ERDF flexibility Significant content change always needs MC decision - Budget reallocation among ERDF PPs / among IPA-I PPs from different countries decided by MC - Other cases need MA decision; - Can be requested only times if not connected to partner change, or sponsoring an Associated Strategic Partner

8 Type of project changes II. Type of project change Work package/ budget line budget reallocation Category Minor Change - Cumulated amount of reallocation(s) are below 10% of ERDF (and IPA-I) PPs project budget; - JTS to be informed in Progress Report - Cumulated amount of reallocation(s) exceed 10% of ERDF (and IPA-I) PPs project budget; - Need MC decision - Can be requested only times - Need MA, or MC decision - Can be requested only times Extension of project duration Administrative changes Substantial change JTS to be informed (in Progress Report)

9

10 Project change Minor change Previous approval of MA / MC not needed No Subsidy Contract Modification Confirmation by the JTS Significant / Substantial change Approval of MA / MC needed Modification of the Subsidy Contract required Can be implemented & costs eligible only after MA / MC approval Certain changes can be requested only times Last request for modification 2 months before project end date

11 General procedure Amendment of Subsidy Contract LP should inform the JTS in case of significant problems JTS defines the procedure and requests submission of necessary documents in e-version (depending on type of project change) Respective National SCP involved (in case necessary) Completion and correction round (in case necessary) JTS forwards request for project modification to MA/MC for decision Following decision modification documents in original requested Addendum to Subsidy Contract prepared and signed Standardised documents Request for project modification (Annex 2 of SEE Implementation Manual) Budget change table (Annex 6) Declaration of Withdrawal from the partnership (Annex 7) Declaration of Commitment to join the partnership (Annex 8)

12 Change in the partnership Change should not affect minimum requirements for transnational partnership!!! Withdrawing ERDF / IPA-I PP Date of withdrawal PP remains responsible and liable for activities and outputs up till that date Expenditures valid, if incurred and paid until that date Withdrawing ASP (10% Partner, EU Associated 20%, EU Associated) In case no new ASP introduced respective budget part of sponsoring ERDF PP deducted

13 Change in the partnership New ERDF / IPA-I PP Eligible - equally relevant competent - with sufficient capacities From same country as withdrawing PP in specific case from other ERDF / IPA country of SEE Programme area ERDF PP only by ERDF PP; IPA-I PP only by IPA-I PP can be replaced Date of new PP entry activities and costs eligible from that date New 20% ERDF PP Only from the same country as withdrawing PP In case original activity, output cannot be delivered: Respective budget part deducted New activity - if equivalent value for the whole project guaranteed

14 Change in the partnership Decision making always needs approval of MA / MC!!! MC decision is necessary in case: budget reallocation among ERDF PPs, or among IPA-I PPs from different countries change of Lead Partner change of the 20% ERDF Partner partner change affects general character (objectives, outputs, results) of the original project

15 Change in the content Minor content change Changes not affecting original objectives and results locations, time plan, minor equipments serving same purpose, etc. 10% ERDF flexibility (content related not ASP sponsoring) Significant content change Changes affecting original objectives and results Always needs MC decision In case original activity, output cannot be delivered: Respective budget part deducted New activity - if equivalent value for the whole project guaranteed

16 Budget change Budget reallocation among ERDF PPs, or among IPA-I PPs a) Without partnership change b) In case not affecting original objectives and results Can be requested only times Due to partnership change distributing activities and related budget among PPs c) Sponsoring of ASP shifted from one ERDF PP to another ERDF PP Principles: Always needs MA / MC decision Funds of different sources (ERDF / IPA) cannot be mixed In case original activity, output cannot be delivered: Respective budget part deducted New activity- if equivalent value for the whole project guaranteed

17 Budget change Budget reallocation among work packages and budget lines Cannot result that the affected WP lose its relevance Budget part not used in WP0 cannot be reallocated to other WP Reducing certain BL cannot alter the relevance of PP, or affect core deliverable: Extreme reduction of staff costs / external expertise Considerable reduction of equipment / small scale investments type cost Procedure: Reallocation below 10% limit No previous approval of MA /MC needed, no change of Subsidy Contract Reallocations to be reported and justified in following progress report Reallocation above 10% limit Always needs MC approval and change of Subsidy Contract Can be requested only times separately for WP and for BL reallocation

18 Budget change Budget reallocation among WPs and BLs 10% limit calculation 10% limit considered cumulatively on project level Reference base - division of expenditure among WPs and BLs of original, or latest approved budget Difference between cumulated real costs of a WP / BL and originally planned budget of the same WP / BL is calculated Positive (+) differences summed up and compared to total project budget of ERDF (+ IPA-I) partners Budget reallocations due to other project changes not considered

19 Budget change Budget reallocation among WPs and BLs 10% limit calculation Example Total project budget of ERDF and IPA-I PPs WP1 WP2 WP3 Total planned reported planned reported planned reported planned reported BL1 1,500 1,600 1,000 1,000 1,500 2,000 4,000 4, BL2 1, , , ,000 2, BL3 1,000 1,100 1, ,000 1,200 3,000 3, Total 3,500 3,600 3,000 2,500 3,500 3,900 10,000 10,000 Diff. 100 WP overspending = 5.00% = , BL overspending = 7.00% = ,000 Difference

20 Budget change Budget reallocation among WPs and BLs - monitoring Responsibility of the Lead Partner Monitoring plans of PPs on WP / BL budget reallocations in advance Confirm for Controller of PPs that budget shift is within the 10% reallocation limit on project level Responsibility of project partners Timely inform the LP whenever they intend to reallocate budget among WPs or BLs Monitoring tools in SEE Front Office IMIS Status of differences of WP and BL spending indicated (%) Report - Financial progress per project partners deviations at project partner and total project level amount still available for WP / BL budget reallocation Based on reported expenditures

21 Project change Revision of the spending forecast Fixed in Subsidy Contract Modification can be requested only in relation to: Other project changes affecting the project budget Prolongation of the project duration Prolongation of project duration Can be requested only times Project activities must be completed before end of 2014

22 Project change Other changes Administrative changes don t require MA / MC approval LP should inform JTS in written form as soon as possible Legal succession of the Lead Partner Administrative change JTS notifies MA Legal act proves: New entity taking fully on duties and obligations of previous entity New entity fulfils partner eligibility criteria of SEE Programme

23 Practical Information Documents: Downloads section Project management documents: SEE Implementation Manual Questions: Contact the JTS