Signing of the project contract
If as a result of the assessment the application for co-financing is qualified for support, a project contract awarding the grant will be concluded between the Programme Operator (PO) and the Project Promoter. The whole procedure will be carried out in the manner specified by the relevant PO.
The project contract sets out the terms and conditions of grant assistance as well as the roles and responsibilities of the parties. It describes i.e. the project implementation schedule and its budget. The contract sets out that the implementation of the project should be carried in accordance with the grant application which will become an annex to the contract. Any possible changes will require approval by the PO.
Eligibility of expenditures
When implementing the project it should be remembered that not all expenses related to it can be co-financed. Only expenditure set out in chapter 8 of Regulation on the implementation of the European Economic Area (EEA) and Financial Mechanism 2014-2021 can be financed. Other costs are covered by the beneficiary's own resources.
The catalogue of eligible direct and indirect expenditures is set out respectively in Chapter 8.3 and 8.5 of Regulation on the implementation of EEA and FM 2014-2021.
Acceptance of the grant means a commitment to bear all expenses in accordance with the principles of fair competition, efficiency, openness and transparency and to make every effort to avoid conflicts of interest. Entities obliged by law to apply public procurement law select their contractors in accordance with these provisions. Entities that are not required to apply public procurement law on a daily basis must apply the purchasing rules for beneficiaries not legally required to apply public procurement law, which are set out in detail in the Programme guidelines and regulations.
Durability of projects
Completion of the project does not mean that all obligations have been met and fulfilled. As part of the Norwegian and EEA Funds durability of projects is foreseen. The durability of project it is time in which the project effects achieved and declared in the grant application should be kept unchanged.
The durability period of investment projects had to last at least for five years from the approval of the final report on project implementation by the PO. For other projects, the minimum duration time after the end of the project will be set by the PO (in the call for proposals and in the project contract).
After the project is completed the Project Promoter is still obliged to keep full documentation for the indicated in the project contract time period. The place of archiving should be the headquarters of the entity that has implemented the project. During this period there is also an obligation to provide access to all project documentation for representatives of the institution that has awarded the grant, the National Focal Point, as well as representatives of donors - if necessary.
Control systems/audits/monitoring
The audit accompanies the implementation of each project that has been supported by Norwegian and EEA funds.
The project will be subject to the following controls:
- verification of payment applications by the PO - each submitted payment application will be checked in terms of formalities and accounting; in addition, it will be assessed whether the expenditure included in the application for reimbursement or financial settlement are eligible;
- control/monitoring at the place of its implementation or at the headquarters by the PO - it may be conducted during the implementation of the project, at its completion or after its completion; the documentation and material scope of the implemented project will be the subject to control;
- control carried out on the basis of separate provisions - by the EFTA Board of Auditors, Financial Mechanism Committee, National Focal Point, President of the Public Procurement Office, Audit Authority or Supreme Audit Office.
Reporting, project settlement and documentation
During the whole project implementation period the PO should be regularly informed about the progress. Reports should be prepared on a form provided by the PO. The frequency of their submission is specified in the project contract - most often quarterly reports or reports related to the rate of expenditure are required. The reports provide information on taken actions, achieved effects and incurred expenses - all in relation to the assumptions from the grant application.
Progress reports on project implementation are usually an integral part of the payment application. As a rule it stands as the basis for payment of the awarded grant. Depending on the specifics of the Programme, payments may take the form of advance payments, interim payments and final payments.
Project implementation reports are verified in terms of compliance with the assumptions presented in the application for grant and the correctness of expenses incurred. If it contains errors or ambiguities, the application must be supplemented or corrected. Funding may be withdrawn if it turns out that the project is implemented contrary to the assumptions from the application form or if the intended goal has not been achieved. All or part of the grant should be reimbursed if procedures related to, for example, the selection of suppliers or service providers are not followed.
During the implementation of the project it is very important to collect all related documents. As a rule they are presented together with the payment application to receive the payment of the awarded grant. All documents confirming the purchase and installation of fixed assets or using the services provided in the project are necessary. Primarily invoices and confirmation of transfers are required, but also protocols for the transfer of goods, receipt of ordered works or performance of services. If employees were employed under the project - regardless of whether their remuneration was subsidized - full documentation confirming the objective recruitment process, conclusion of contracts and fulfilment of obligations towards employees, Social Security and State Treasury should be available. The method of project settlement is determined by the PO.
Each accounting document should be marked in a way that assigns it explicitly to a specific project - e.g. a stamp containing such information. This is to prevent the same document from being used for reimbursement in more than one project.
All documents related to the implemented project should be booked in a way enabling their quick, easy and unambiguous identification. The so-called separate accounting records may mean the introduction of uniform marking of co-financed items or their inclusion in specially created accounts.
For transparency of accounts it is recommended that payments in the project take place via a separate bank account indicated in the project contract.
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