Financial Guidelines and Modalities. March 2013. Transitory Measures. Transitory Measures. On-going contracts on 1 J an 2013: no changes, use version of the PRAG under which the contract was signed.
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Direct centralised & decentralised management (ex ante and ex post)
Work programme adopted by the Commission
Published no later than March 31st of each year
Work Programmes / Annual Action Plans
Concept of ‘Affiliate’ entity launched with the 2013 PRAG.
Applicants, co-applicants and affiliates:
Must all be registered in PADOR
Fulfil call rules on eligibility
Signature of Grant Contract: form e3H1 (and special conditions)
* LEF: legal entity file
Likely that people will continue to use the co-applicant procedure
Applicant with co applicants
Applicant with affiliates
Applicant with co-applicants and affiliates
No direct award of grants ≤ €10,000 in decentralised management
Prospect (electronic applications)
Proof of co-financing is no longer required at budgeting stage
No more degressivity for operating grants
May also be constituted by:
The accepted cost system has to be introduced in the Cf
* Non eligible taxes may remain in countries where there is a financing agreement that makes taxes non eligible.
Maximum 6-months from deadline of submission of proposals to results shared with applicants
Maximum 3-months from information to applicants to contract signing
Timelines in specific grants may differ but these are the maximum timelines.
Maximum timelines may be exceed in complex action e.g. multi beneficiary contracts.
These might also be shorter as seen in the Lebanon support to refugees call.
Sub-granting can now be the main aim of the action, need to provide information on:
See Article 10 of the General Conditions
This links with the multi beneficiary approach of financial support to 3rd parties.
May also have specific reference in call guidelines (which may set its own ceiling)
€60,000 sub grant limit if not the main aim of the action
Will not be challenged by ex-post controls
Auditors will therefore not check all supporting documents to establish actual costs incurred
Not possible to amend the lump sum units
Might work well where:
Lump sums, unit costs, flat-rate financing
Control of the generating event (the output)
Amounts of lump sums, unit costs, flat rates not challenged ex post (checked at evaluation / contracting phase)
General conditions: no grant may give rise to profits (i.e. must be balance of income and expenditure), unless there is a specific profit objective.
If there is a profit, the EC will recover pro-rata of their contribution
Current exceptions: training scholarships paid to natural persons, prizes awarded following contests.
Additional exceptions foreseen:
Direct support to natural persons most in need, such as unemployed persons and refugees
Grants of < €60,000 are exempt from the no profit rule.
New approach for the evaluation of financial and operational capacity
Yes / No approach
Must be ‘yes’ in all categories to proceed
Call evaluation now based on 80% (as the 20% financial capacity element has been removed)
Margin of discretion left for evaluators
1-3 cumulative criteria (includes co-applicants and affiliates)
4 – applicant only (as they bear all of the risk)
There is no objective criteria for assessing capacity
Capacity information should be made explicit in the application form
Low value grants ≤ € 60,000
Clarification introduced in PRAG on how to use reserve lists depending on funds available:
Procedure for signing additional contracts:
Under no circumstances will applicants be requested to reduce or amend their actions (apart from the possible corrections and clarifications explained in this chapter) in order to make them fit the available EU financing, since this would entail a negotiation and an alteration of the proposal.
This procedure may lead to situations where lower ranked proposals are finally given a contract instead of higher ranked ones.
Guarantee on Pre-Financing
Grants ≤ € 60,000
Grants > 60,000
Interest on Pre-financing
Exchange rate @ the rate that the money was received from the EU (infoeuro rate for accounting purposes)
Calculated per-instalment rather than an average
NGOs can request own procedures which would be included in the special conditions (derogation request per contract made to the delegations) – to use bank rate rather than infoeuro for your own currency.
Not to be used to modify:
Updated according to new thresholds
Articles adapted to the multi-beneficiary contract
New clauses of termination
Force majeure: EU decision to suspend cooperation: