Transcript Document

Development of integrated
project and financial
management tools in conformity
with the 2003 FPA
General Condition
Rapid outlook
In collaboration with
Setting
The General Conditions:
 Are an integral part of the Grant Agreement which
is stipulated between the Humanitarian
Organisation and ECHO for each single operation
 Establish the rules which govern the humanitarian
operations
 Are organised in 19 articles as follows:
 General and Administrative provisions (1 – 14)
 Financial provisions (15 – 19)
In particular
The GC define
General obligations
Priority of ECHO on type of intervention
Obligations and rights of the Parties
General provisions on defining the Budget
General provisions on transferring funds
GC: Highlights
Article1: General Obligations
highlights
 The proposal shall be in accordance
with the standard forms annexed to
the FPA
 The HO may act in partnership or
contract parts (not all) of the operation
 The HO is fully responsible for the
execution of contracted activities
GC: highlights
Article 2: Information and financial & narrative reports
Highlights
 The HO shall provide the EC with full information on
the implementations of the operation [particularly
it shall report on the indicators specified in the
proposal] [2.1.]
 The reports (on ECHO forms and in same language
as GA) shall allow comparison of the objectives,
results and budget expected and/or obtained
[2.2./2.3.]
 The HO shall send ECHO additional information on
request within 30 days of the request [2.5.]
 Failure to fulfill terms of reporting may be the
cause for termination of the GA (reiterative failure
may be the cause of suspension of FPA) [2.6.]
GC: Highlights
Article 3/4/5: Liability, Conflict of interest,
Confidentiality
Highlights
 The HO shall have sole responsability towards third
Parties (ECHO is discharged of all liability) [3.1., 3.3.]
 The HO shall take all precautions to avoid conflict of
interests for any person under its responsability
 The confidentiality of reports and other documents
classified as “confidential” is the responsability of the
Parties for a minimum of 5 years
GC:Highlights
Article 6: Visibility
highlights
 The HO shall contribute to the visibility of the operations
financed by the EC, provided that this does not harm its
mandate or the safety of its staff
 The HO should present a visibility plan within the
framework of the operations [6.2.]
 Communications or publications by the HO shall display
the EU logo and shall quote EC contributions (% of the
contribution) with the note:
“this document has been produced with the financial assistance
of the European Community. The views expressed herein should not
taken, in any way, to reflect the official opinion of the European
Community”
GC:Highlights
Article 7: Ownership and use of Results and
assets
highlights
 Unless otherwise specified in the Special Conditions the
equipment, vehicles and supplies purchased in the
framework of an Operation shall be transferred to local
authorities, partners or final recipients (excluding
commercial contractors) [7.3.]
 The HO shall submit one month before the end of the
implementation period an inventory with a proposal
concerning the use of these stocks and equipment (the
EC shall respond within 15 days)
 The HO shall give an account of the actual destination of
these stocks and equipment with documentary proof of
any transfer
 In the event of failure to comply with the above
provisions, relevant costs shall not be eligible for funding
GC:Highlights
Article 8: Evaluation of the operation
Highlights
 Representatives of the EC shall be invited to participate
in the main monitoring and evaluation missions
 Evaluation missions by representatives of the EC shall be
object of mutual discussions and shall be planned in a
collaborative manner by the HO staff and EC
representatives
 If provided with a resonable deadline, the EC will annex
the HO’s comments to the final report
GC:Highlights
Article 9: Signature of Agreements
Highlights
 The EC shall draft the Grant Agreement according to the
standard format and in conformity with the proposal
agreed by the EC shall send two signed originals (by
registered mail) to the HO
 The HO shall notify in writing its acceptance within 15
days of receipt, and may not introduce changes in the
agreement
 The GA shall be considered concluded and shall enter
into force on the date of reception by the EC of one
original signed and sent by registered letter
GC:Highlights
Article 10: Amendment of Agreements
Highlights
 Any modification of agreement shall be set out in writing in an
amendment and shall be submitted one month before the end
of the implementation period of the agreement [10.1.]
 By way of exception, the HO, when the financial impact is
limited to a transfer within a single budget title or a transfer
between budget titles involving a variation of 15% or less of
the amount originally entered of total direct costs, shall
INFORM the EC in writing (modification must not affect the
general terms of operation)
 In case of change of bank account and use of contingency
reserve, the HO shall present a duly substantiated request
 Any amendment to articles 2 and 3 of the Special Conditions
shall be subject of a supplementary agreement
 In any case the original object of the agreement shall not be
modified
GC:Highlights
Article 11: Award of contracts
Highlights
 Contracting arrangements will be as specified
in the proposal. The EC will also be informed of
changes in these arrangements and in any case
detailed information will be provided in the
final report
 Procurement of goods, works, or services shall
be carried out in accordance with rules adopted
by the EC established in Annex V
 In the event of failure to comply with above
provisions relevant costs shall NOT be eligible
for funding
GC:Highlights
Article 12/13: implementation period, suspension and
termination of agreement
Highlights
 The implementation period of the GA shall be
as set out in article 2.2 of the Special
Conditions
 Various causes for suspension and termination
of the operation are defined
 Time periods regarding these aspects are
defined
 Terms are set out in the Provisions and General
Conditions for the case of advanced
termination
GC:Highlights
Article 14: Disputes
Highlights
 Parties shall communicate their positions to each other
in writing
 A Party MUST reply within 30 days
 If an amicable settlement has not been reached within
90 days, each Party may notify the other that it considers
the procedure to have “failed” and take the dispute
before the Court of First Instance of the EC
GC:Highlights
Article 15: Eligible costs
Highlights
 The costs must be: NECESSARY, ACTUALLY BEEN
INCURRED in the implementation period and RECORDED
in verifible documents
 Eligible costs are::
 Staff (salaries and identifiable personnel costs at HQ level)
 Expenditure related to constitution of stocks shall also be
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eligible when incurred before the date of submission of the
proposal
Travel and subsistence costs for staff
Purchase costs for equipment (new and old)
Cost directly arising out of accepting or distributing
contributions in kind
Costs of consumables and supplies
Purchase costs for goods and services
Expenditure n contracting
Field office costs that correspond to amount of activity
attributable to Operation
Costs deriving from training, evaluation and documentation
Art 15 Continued
Highlights
 Non eligible costs are those “standard” for EC
projects, such as:
 Purchase of land or buildings
 Taxes, duties (unless the HO is not able to reclaim
them)
 Currency exchange losses
 Etc.
Art 15 Continued
Highlights
 Indirect costs are forfeited (max 7% of
total direct eligible costs = Title 01 +
Title 02)
 A contingency reserve may be
exceptionally included in the budget and
shall not be higher than 5% of the direct
eligible costs (Title 01 + Title 02)
GC: Highlights
Article 16: Payments
Highlights
 Are defined in articles 5 and 6 of the GA
 Pre-financing shall be set at a level between 50% and
80% (>50% in special cases) of the sum referred to in
Article 3(2) of the Special Conditions less contingencies
 The level of pre-financing will be set taking into account
the past record of the HO, as regards timely submission
of final report, budget execution rate and risk profile
 Payment will be made within 45 days after receipt of GA
signed by HO
 If interests represent a significant amount they shall be
reimbursed to the Commission
 The EC will pay the final ammount within 45 days after
receipt of the final reports and narrative
 If the EC does not deem the report correct or complete it
shall request additional information within a second 45
day period (intital deadline shall be suspended)
 The HO may demand interest within two months of
receiving a late payment by the EC (rate supplied by
ECB)
GC: Highlights
Article 17: accounts and financial checks
Highlights
 The HO shall keep all original documents (in exceptional
cases certified copies shall be allowed)
 The HO agrees that the EC may have an audit to verify
appropriate use of funds by the HO and contractors (ECA
and OLAF shall enjoy the same rights)
GC: Highlights
Articles 18/19: final amount of Community financing and Recovery
Highlights
 The total amount to be paid by the EC may not exceed
the maximum contribution established by the Special
Conditions
 If co-financed, the % of funding will remain invariable
even in the case of a reduction in funding by the other
donor
 Financial contribution of the EC may not in any
circumstance result in a profit for the HO
 Where the operation is not carried out properly, in full,
the EC may reduce the grant pro-rata
 Where recovery is justified, the HO undertakes to repay
the EC any amounts paid in excess within 45 days
The end