Grant Implementation Manual for Grant Beneficiaries
This Programme is funded by
the European Union / / .
CFCU is the Contracting Authority
of this Programme
GRANT IMPLEMENTATION MANUAL FOR GRANT BENEFICIARIES
CFCU-2009
Table of contents
1. INTRODUCTION 4
1.1 Scope 4
1.2 Legal basis 4
1.3 Programme information 4
1.4 Institutional Framework 5
1.4.1 Bodies Involved 5
1.4.2 Responsibilities of Support Unit from Grant Beneficiaries perspective 5
2. THE GRANT CONTRACT BETWEEN THE CFCU AND BENEFICIARY 6
2.1 Characteristics and General Principles of the standard grant contract 6
2.2 Major parts of the grant contract 7
2.3 Modifying grant contracts 7
2.1.1 Notifications to Contract: Minor Modifications 8
2.1.2 Addendum: Major Changes 10
2.1.3 Preparing an addendum 10
2.4 Eligible costs 11
2.4.1 Exchange Rates 13
2.5 Project documentation and accountancy 14
2.5.1 Financial documentation 14
2.5.2 Technical documentation 15
2.5.3 Accounting requirements 15
2.6 Reporting requirements 16
2.6.1 Interim and Final Narrative Reports 16
2.6.2 Financial Report 17
2.6.3 Bi-monthly Reports 17
2.7 Payment procedures 18
3. PROCUREMENT (TENDERING) 19
3.1 Procurement plan and principles of good procurement 19
3.1.1 No discrimination 20
3.1.2 Fair competition 20
3.1.3 Clear specifications 20
3.1.4 Effective publicity (announcement) 20
3.1.5 Adequate timescales 20
3.1.6 Use of relevant objective criteria 20
3.1.7 Adequate records 21
3.2 Basic rules for service, supply, works contracts 21
3.2.1 Overview 21
3.2.2 Eligibility criteria and other essentials 21
3.2.3 Grounds for exclusion 22
3.2.4 Administrative and financial penalties 22
3.2.5 Visibility 23
3.2.6 Other essentials points 23
3.3 Selection criteria 24
3.3.1 General principles 24
3.3.2 Verification of the financial and economic capacities of tenderers or candidates 24
3.3.3 Verification of technical and professional capacities of tenderers, candidates and their managerial staff 25
3.3.4 Award criteria 26
3.3.5 Cancellation of procurement procedures 26
3.3.6 Ethics clauses 26
3.3.7 Appeals 28
3.4 Terms of reference and technical specifications 28
3.5 The Evaluation Committee 29
3.5.1 Composition of the Evaluation Committee 29
3.5.2 Impartiality and confidentiality 30
3.5.3 Responsibilities of the Evaluation Committee members 30
3.5.4 Period of validity 31
3.6 Award of the contract 31
3.6.1 Notifying the successful tenderer 31
3.6.2 Contract preparation and signature 31
3.6.3 Publicising the award of the contract 32
3.7 Modifying contracts 32
3.7.1 General principles 32
3.7.2 Preparing an Addendum for Procurement Contract 33
4. MONITORING AND SUPPORT ACTIVITIES 34
4.1 Monitoring Framework 34
4.2 Monitoring Tools 34
4.3 Responsibilities of the Grant Beneficiary in Monitoring 34
4.4 Support activities 36
4.5 Manuals 36
4.6 Web-pages 36
4.7 Information and training sessions 36
CFCU-2009 23/37
Grant Implementation Manual for Grant Beneficiaries
1. INTRODUCTION
1.1 Scope
This Guide explains the contracting and implementation procedures applying to all sub-contracts concluded by Grant Beneficiaries and contractual obligations of the beneficiaries, monitoring framework of implementation of grant projects in Turkey.
The purpose of this manual is to provide all Grant Beneficiaries with all information necessary to undertake a grant procedure from the very first steps to the award of contracts. In other words, this document also provides information on how to manage the grant contract, signed between the CFCU and the Grant Beneficiaries (see Chapter 2), from the award of the contract until the final report and payment.
Further separate guidelines are available for the different procurement procedures for works, services and supplies.
Please note that:
Grant Beneficiaries of the programme are obliged to use procedures and documents complying EU PRAG rules in all procurement procedures (supplies, services and works).
1.2 Legal basis
This Guide has been prepared by considering the relevant provisions of the “Practical Guide to contract procedures for EC external actions (EU PRAG), 2007”. The full version of EU PRAG (including relevant annexes to PRAG) can be found on the webpage:
http://ec.europa.eu/europeaid/work/procedures/implementation/practical_guide/index_en.htm
Article 3/c of the Turkish Public Procurement Law (No: 4734) permits to apply other procurement rules for the procurement activities to be realised with foreign financing pursuant to international agreements. Also, the Law (No: 5303) on the Approval of Framework Agreement that Determines the General Framework for the Financial Cooperation between Turkey and the EU states that EU rules will be used in the EU co-funded projects.
1.3 Programme information
The overall objective of the Civil Society Dialogue - EU-Turkish Chambers Forum- EU-Turkey Chambers Partnership Grant Scheme (ETCF) will be to strengthen the dialogue and co-operation between the Turkish Chambers and their counterparts in the EU as members of civil society; thus promoting the integration of EU and Turkish business communities. This integration process will be realised through the establishment of long term partnerships between EU and Turkish Chambers of Commerce and Industry with the financial assistance of the National Pre-Accession Financial Assistance Programme 2006 for Turkey, thus facilitating the effective implementation of business-related acquis in Turkey.
The grant scheme proposed under this project aims at addressing the Turkish Chambers’ needs of enhancing the service capacity of the Chambers by benchmarking with their European counterparts and benefiting from their know-how on serving the industry.
The institutional framework of the Grant Scheme includes the Union of Chambers and Commodity Exchanges of Turkey (TOBB) and the Association of European Chambers of Commerce and Industry (EUROCHAMBRES) and the Central Finance and Contracts Unit (CFCU) of the Republic of Turkey. TOBB and EUROCHAMBRES are responsible for the technical implementation of the ETCF programme and will also co-ordinate the monitoring and evaluation of the grants awarded. The CFCU is the Contracting Authority[1] for the programme, and is responsible for the administrative and financial implementation of the Grant Scheme. The CFCU has the ultimate responsibility for the correct use of Grant funds and is responsible for the tendering, contracting and payments to the Grant Beneficiaries.
Moreover, a Support Unit (hereinafter SU) has been set up by TOBB and EUROCHAMBRES and will be exclusively responsible for the effective implementation of the grant schemes on local level, programme promotion and extension of support to Grant Beneficiaries.
1.4 Institutional Framework
1.4.1 Bodies Involved
Central Finance and Contracts Unit (CFCU): The Contracting authority for the grant contract with the Grant Beneficiary is the CFCU.
TOBB and EUROCHAMBRES: TOBB and EUROCHAMBRES are the Beneficiary of the Programme and is responsible for the coordination of the technical implementation of the programme and will also co-ordinate the monitoring of the grants programme.
The Delegation of the European Commission to Turkey: The Delegation of the European Commission to Turkey has the responsibility for ex-ante approval of the overall activities under the projects financed by the European Community in the course of co-operation with the Pre-Accession Financial Assistance Programme for Turkey. Activities under the grant projects are not subject to ex-ante approval of the Delegation
Support Unit (SU): SU which the ETCF team within TOBB & EUROCHAMBRES is responsible for the implementation of the programme on a daily basis, provision of coordination with Grant Beneficiaries, information dissemination and publicity of the programme, monitoring of the projects and making on-the-spot checks on the projects.
1.4.2 Responsibilities of Support Unit from Grant Beneficiaries perspective
Support Unit (SU) is established within TOBB and Eurochambres. It is responsible for introduction of the programme at local level, the organisation of the activities, and monitoring of all the grant projects in the region. SU acts as principal contact point for the Grant Beneficiaries during the implementation of their projects.
2. THE GRANT CONTRACT BETWEEN THE CFCU AND BENEFICIARY
2.1 Characteristics and General Principles of the standard grant contract
The grant contract between your organisation and the CFCU is the main document that defines responsibilities of different parties, reporting, eligibility of costs, accounting, payments, etc.
· The Grant Beneficiary can make transfers between budget items which do not result in a change of more than 15% to any budget heading by notifying CFCU through SU.
· The first pre-financing payment, which covers 80% of the grant amount, is paid within 45 days after both parties have signed the contract and the Contracting Authority has received the documents referred in Item 15.1 of the General Conditions from the beneficiary.
· The Community finances a specific percentage of the total eligible costs rather than a particular part of the action. If at the end of the action, the actual eligible cost is lower than anticipated, the grant will be reduced proportionately.
· In awarding any procurement contracts required for the purposes of the action, the Beneficiary must comply with the rules set out in Annex IV to the contract. Details about the application of these rules are given in Procurement Manuals.
· Beneficiaries must take necessary measures to ensure the visibility of the EU financing or contribution to the financing. Such measures must be in accordance with the applicable rules on the visibility of external actions are set out in the EU visibility guidelines for external actions, available from the following Internet address: http://ec.europa.eu/europeaid/work/visibility/documents/communication_and_visibility_manual_en.pdf
Furthermore, the Grant Beneficiary has to consider during the implementation the following points which are notified to all Grant Beneficiaries via an official letter by the CFCU;
1- One of the parties of the agreement is CFCU and the other party is your Institution. The correspondences and view exchanges with third parties regarding contract implementation will not be binding the CFCU.
2- The procedures and expenditures related to project’s execution will be recorded and filed as hard copies together with relevant documents (invoice, payment etc.) and will be kept in a special file to be inspected when needed.
3- In no way, advance payment can be paid from the project budget, without prior approval of the CFCU and bank guarantee.
4- All of the contracts that are related to procurements for carrying out the project will be implemented in accordance with the principles of transparency, confidentiality competition and equal treatment by following the instructions in the manuals prepared for this grant programme.
5- No transfer will be realized from the project account to any other one (apart from parties involved in the project such as project personnel, suppliers, service providers, contractors etc.).
6- From the project budget’s bank account, in no way cash payment will be made, all the payments will be made through transfer from one bank account to another one, except payments up to 600 EUR per month.
7- The regulations related to agreement’s EU visibility rules will be followed very carefully, the EU support in the project will be realized through proper implementation tools (all published documents and audio-visual outputs).
8- All kinds of support will be provided to the CFCU, TOBB and EUROCHAMBRES, European Commission Delegation to Turkey and SU in monitoring and auditing visits.
The documents published in the CFCU web pages for administrative expenditures and human resources have to be applied regarding the expenditures for the related budget headings (see the annexes).
2.2 Major parts of the grant contract
The Grant Contract has several sections, which are compulsory and may not be changed without a written agreement with the CFCU.
· The Special Conditions(Grant Contract): It specifies the project duration, total project cost and the grant amount, reporting and payment schedule.
· Annex I of Grant Contract: “Description of the action” contains the description of your project. Signing the contract you commit yourself to implement all activities described in Annex I and to deliver the stated outputs and results.
Any modifications of the activities and expected results stated in Annex I should be communicated in writing in the project progress reports or notification letters. Significant modifications of activities may need an Addendum to the contract.· Annex II of Grant Contract: “General Conditions” specify the general obligations and financial provisions under the contract. This Annex describes all your obligations on reporting, provision of information, visibility, accounts and technical and financial checks.
· Annex III of Grant Contract: “Budget for the action” includes the breakdown of project costs as well as expected sources of funding.
Any modifications of the budget should be communicated in writing. Significant modifications of budget require an Addendum to the Contract.· Annex IV of Grant Contract: “Contract Award Procedures” describes the procedures that you have to follow in case of awarding contracts for services, supplies and works to external organisations.
· Annex V of Grant Contract: This annex contains standard templates that you have to use when applying to the CFCU for payment request. These documents are Request for Payment and Financial Identification Form.
· Annex VI of Grant Contract: This annex contains standard forms for Interim, Final narratives and Financial Reports.
· Annex VII of Grant Contract: This annex contains Model report of factual findings and terms of reference for an expenditure verification of an EU funded grant contract for external actions (Model of Expenditure Verification Report). For Grants exceeding €50.000 it is obligatory to obtain an Independent Audit Report before requesting the final payment.
2.3 Modifying grant contracts
Grant Beneficiaries should try to implement the project as originally planned. Nevertheless situations may arise where there is a need to make some changes in the activities or budget, or replace some experts. In such situations, they will have to apply for an amendment to the contract.
The procedures for amendment of the grant contract are divided into two groups depending on the type of change that should be made. Minor changes in the contract may be implemented without receiving a prior agreement of the CFCU, but should be notified. Major modifications in the contract require a formal Addendum to the contract to be signed CFCU and Grant Beneficiary before their implementation. In case of major modifications of the Contract, an Addendum should be prepared before making the change.
If you plan to make minor or major change in your contract, it is strongly recommended to consult SU before submitting your request.The following general principles must always apply: