EEA Financial Mechanism 2009‐2014

7/28/2019 EEA Financial Mechanism 20092014

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EEAFinancialMechanism20092014

ProgrammeArea

Funds

for

Non

Governmental

Organisations

GuidelineforNGOprogrammes

Adoptedon25May2011


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ProgrammeAreaFundsforNonGovernmentalOrganisations

GuidelineforNGOProgrammes

3

Index

1. GENERALPROVISIONS ..................................................................................................... 41.1 PurposeoftheGuideline.................................................................................................................. 4

1.2 Legalframework...............................................................................................................................4

1.3 Overallfinancialframework ............................................................................................................. 5

2. NGOPROGRAMMEPRINCIPLESANDOBJECTIVE ............................................................ 52.1 Generalprinciples.............................................................................................................................5

2.2 OverallobjectiveoftheNGOprogrammes ......................................................................................5

2.3 Eligibleapplicants ............................................................................................................................. 6

2.4 Expectedoutcomes .......................................................................................................................... 7

2.5 Coreareasofsupport ....................................................................................................................... 8

2.6 Additionaleligibleareasofsupport..................................................................................................8

2.7 Eligibleactivities ............................................................................................................................... 9

2.8 Crosscuttingissues......................................................................................................................... 10

2.9 Bilateralrelations............................................................................................................................ 10

2.10 Crossbordercooperation .............................................................................................................. 10

3. SETTINGUP

OF

NGO

PROGRAMMES............................................................................. 11

3.1 Generalprinciples...........................................................................................................................11

3.2 AppointmentofanOperator..........................................................................................................11

3.3 ContractingofaProgrammeOperator........................................................................................... 11

3.4 NGOProgrammeOperatorcharacteristics..................................................................................... 12

3.5 ProgrammeApplication..................................................................................................................13

3.6 ResponsibilitiesoftheProgrammeOperator................................................................................. 13

3.7 ManagementcostsoftheProgrammeOperator ...........................................................................14

3.8 Bilateralfunds................................................................................................................................. 15

3.9 Complementaryactions.................................................................................................................. 15

4. PROGRAMMEANDPROJECTIMPLEMENTATION .......................................................... 164.1 Opencallsandavailabilityoffunds ................................................................................................ 16

4.2 Processingofapplications .............................................................................................................. 174.3 Selectioncriteria.............................................................................................................................18

4.4 Projectlevelpartnership ................................................................................................................18

4.5 Grantsizeandrateatprojectlevel ................................................................................................ 19

4.6 Durationofprojects........................................................................................................................ 20

4.7 Predefinedprojects ........................................................................................................................20

4.8 Programmelevelreporting ............................................................................................................ 20

4.9 Projectlevelreporting ....................................................................................................................20

4.10 Monitoringandevaluation.............................................................................................................21

4.11 Complianceassessmentandaudits................................................................................................21

4.12 VisibilityandPublicity.....................................................................................................................21

5. FINANCIALMANAGEMENT ............................................................................................ 22

5.1

Eligibility

of

expenditure................................................................................................................. 22

5.2 PaymentstoProgrammeOperator ................................................................................................23

5.3 Paymentstoprojects......................................................................................................................2 4

5.4 Financialcorrectionandsuspensionofpayments .........................................................................24


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4

1. GENERALPROVISIONSSupporttocivilsociety isoneofthekeyprioritiesoftheEEAFinancialMechanism (FM)20092014.

This commitment particularly reflects recognition of the role of NonGovernmental Organisations

(NGOs) as a fundamental building block in the development of fair, democratic and sustainable

societiesinEurope.

In both the EEA and Norwegian Financial Mechanisms for the period 200914, funding is made

available through a wide range of programme areas in which NGOs are eligible applicants.

Nonetheless,aspecificprogrammeareaexclusivelyinsupportofNGOshasbeenearmarkedunderthe

EEAFM.TheaimistoprovideflexibleandaccessiblefundingtoeligibleNGOs,whichshallcontribute

tofosteranenablingenvironmentforthesector,strengthenitscapacityandenhanceitscontribution

to

social

justice,

democracy

and

sustainable

development.

1.1 PurposeoftheGuidelineThepurposeofthepresentGuidelineistoclarifyspecificreferencesintheRegulationrelevanttothe

programme area Funds for Nongovernmental Organisations and provide guidance to Focal Points

andProgrammeOperatorsonspecificsectorrelated issues inthedevelopmentand implementation

ofNGOprogrammesintheBeneficiaryStates.InthecaseofProgrammesentrustedtotheFMO,who

willcontractafundoperator,theRegulationshallnotapply.Insuchcasesonlysectorspecific issues

referredto inthisGuidelineshallapplyandwillbereflectedinthefundoperatortermsofreference

andintheimplementationagreementwiththeselectedoperator.

ThisGuidelineisbasedontheFMlegalframework,findingsfromtheEvaluationoftheNGOFunds

20042009andinputfromtheNGOandBeneficiaryStateonlineconsultationonproposalsforfuture

supporttocivilsocietyopenfrom10Septemberto5November2010.

1.2 LegalframeworkThe following documents constitute the legally binding framework which applies to and is not

replacedbythepresentGuideline:

- Protocol38boftheEEAAgreementestablishinganEEAFinancialMechanism;

-The

Memorandum

of

Understanding

(MoU)

on

the

EEA

Financial

Mechanism

signed

between

the

DonorStatesandBeneficiaryState.

- Regulation on the implementation of the European EconomicArea FinancialMechanism 2009

2014andAnnexes;

- ThedescriptionforProgrammeArea10 FundsforNongovernmentalOrganisations (Fundsfor

NGOs)undertheprioritysectorCivilSocietyoftheEEAFinancialMechanism.


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5

TheGuidelinecontainsreferencestorelevantarticlesoftheRegulation,whicharereferredto

eitherexplicitlyorinbracketsthroughoutthetext.Thisdoesnotdispensetheuserfromhavingto

refertotheRegulation,whichwillapplyinthecaseofinconsistency.Specialnoteshouldbetaken

ofAnnex9totheRegulation,theProgrammeOperatorsManual(POM)whichshouldbereadin

parallelwiththisGuideline.

TheGuidelinehasbeenadoptedinaccordancewithArticle1.4.1(d)oftheRegulation.

1.3 OverallfinancialframeworkAtleast10%oftheEEAFinancialMechanismallocationperBeneficiaryStateistobesetasideforthe

prioritysectorCivilSocietyaccordingtoProtocol38b.Thisprioritysectorincludesonlytheprogramme

AreaFundsforNonGovernmentalOrganisations,whichwillbereflectedinNGOprogrammes.Inall

BeneficiaryStates,supporttocivilsocietyshallmeetthisrequirement.

2. NGOPROGRAMMEPRINCIPLESANDOBJECTIVE2.1 GeneralprinciplesNGO programmes shall be established in all Beneficiary States of the EEA Financial Mechanism. At

nationallevelthesemaybereferredtoasNGOFund.

NGO

programmes

shall

be

established

based

on

a

Results

based

management

approach

(see

Annex

9

oftheRegulation,ProgrammeOperatorsManual POM)andwillsetclearobjectivesandoutcomes

thatfocusontheresultsoftheinterventionsonpeopleandsystems,andindicatorswithtargetsand

baselines,usedtoassessmeasurableprogresstowardsdesiredresults/impact.

In order to ensure a common approach, an overall objective has been established for the NGO

programmesandasetofexpectedoutcomeshave beendefined,uponwhichnationalprogrammes

shallbebased.

2.2 OverallobjectiveoftheNGOprogrammesThe

objective

of

all

NGO

programmes

shall

be

to

achieve

a

strengthened

civil

society

development

and

enhancedcontributiontosocialjustice,democracyandsustainabledevelopment.

TheNGOprogrammesshallmoreoversupporttheoverallobjectivesoftheFinancialMechanismsto

contributetothereductionofeconomicandsocialdisparitiesintheEuropeanEconomicAreaandto

strengthenbilateralrelationsbetweentheDonorState(s)andtheBeneficiaryStates.


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2.3 EligibleapplicantsAneligibleapplicant isdefinedasaNongovernmentalorganisation (NGO): anonprofitvoluntary

organisation established as a legal entity, having a noncommercial purpose, independent of local,

regional and central government, public entities, political parties and commercial organisations.

ReligiousinstitutionsandpoliticalpartiesarenotconsideredNGOs(Art.1.5.m).

ProgrammeOperatorsshallapplytheabovedefinitionandprovide forspecificconcerns in linewith

thepresentGuidelineandinconsultationwiththeFMC.ItisrecognisedthattheregistrationofNGOs,

and therefore their establishment as legal entities, differs nonetheless from country to country.

EligibleapplicantsforfundingundertheNGOprogrammesshallnonethelessbeorganisationsusually

meetingthefollowinggeneralprinciples:

- arenonprofit,beingorganisationsthathavenotbeencreatednoroperatetogeneratepersonal

profit.Althoughtheymayhavepaidstaffandmayengageinrevenuegeneratingactivitiestheydo

not distribute profits to their members nor to their board. Where revenuegenerating activities

areundertaken,

these

should

not

represent

the

purpose

of

the

NGO

but

should

be

solely

ameans

tosupportitsmissionandvalues;

- havememberswhodonothaveanydirectcommercialinterestintheoutcomeoftheworkofthe

organisationorofitscommercialactivitiesandshouldnotpursuethecommercialorprofessional

interests of their members. This requirement therefore excludes trade and professional

associations,wheretheaimsandpurposesoftheassociationistofurtherthespecificinterestsof

itsmembersonly;

- are voluntary in nature, formed voluntarily by groups or individuals and usually involving an

elementofvoluntaryparticipationintheorganisation;

- actinthepublicarenaandforthepublicgoodonconcernsandissuesrelatedtothewellbeingof

people,

groups

or

society

as

a

whole;

- havesomedegreeofformalorinstitutionalexistence,unlikeinformaloradhocgroups,involving

formalstatutesorothergoverningdocumentsdefiningtheirmission,objectivesandscope;

- are membershipbased, with transparent structures and elected chair / board, and are

accountabletotheirmembersanddonors;

- areindependentoflocal,regionalandnationalgovernmentandotherpublicauthorities,

- areindependentofpoliticalpartiesandcommercialorganisations.

Politicalparties,religious institutions1assuch,socialpartners2orprofitdistributingcooperativesare

not considered NGOs. Social enterprises3, foundations4, faithbased organisations5 and the national

RedCrosssocietiesareconsideredeligibleNGOsiftheyfulfiltheaboveprinciples.

1Religiousinstitutionsdonotincludefaithbasedorganisationsasdescribedbelow,whichareeligible.

2Socialpartnersaredefinedastradesunionsandemployersnegotiatingbodies,asdefinedbytheEU.

3Itisrecognisedthatinmanycountries,socialenterprisesarenotdefinedwithincurrentlegislation. Wheresocialenterprises

canmeettheothercriteriagiveninthissection,theymaybeconsideredforsupport,4Itisrecognisedthatmostfoundationsarenotmembershiporganisations. Foundationsarenonethelesseligibleforsupport,

if independent from political party or governmental control or from the control of a small group that derive any personal

benefitsfromthefoundation. Theywillbeexpectedtobefoundationsthataresetupprimarilyforpublicbenefit.


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7

InordertofacilitatethewidestpossibledevelopmentoftheNGOsectortorespondtoneedsineach

country, NGOs that are eligible for funding according to these principles will be enabled to partner

withcertaintypesoforganisationsthatarenototherwiseeligibleasapplicantsforfundinginlinewith

section4.4ofthepresentGuideline.

2.4 ExpectedoutcomesNGOprogrammesareexpectedtoidentifyandcontributetoseveraloftheoutcomesidentifiedbelow

andincludedinthePOM:

Activecitizenshipfostered

Increased involvementofNGOs inpolicyanddecisionmakingprocesseswith local,regionaland

nationalgovernments

Crosssectoral partnerships developed, particularly with government organisations at local,

regionaland/or

national

level

Democraticvalues,includinghumanrights,promoted

Advocacyandwatchdogroledeveloped

DevelopednetworksandcoalitionsofNGOsworkinginpartnership

StrengthenedcapacityofNGOsandanenablingenvironmentforthesectorpromoted

Increasedcontributiontosustainabledevelopmentachieved

Provisionofwelfareandbasicservicestodefinedtargetgroupsincreased

Empowermentofvulnerablegroups

Theexpectedoutcomesidentifiedabovereflectontheimportanceofsupportingprocessesthatlead

tochange

and

embed

such

change

in

future

approaches,

thus

contributing

to

sustainability.

Focusing

the NGO programmes on changes in processes is expected to increase NGOs role in promoting

appropriate democratic responses to societal issues, demonstrate how new approaches can bring

widersocietalbenefits,andraiseawarenessofissuesofconcern.

Thisapproachshallenabletheprogrammestocontributetowards:

@ changed thinking, through methodologies and processes, which demonstrate different ways of

engagingpeopleinresponsestotheneedsintheircommunities;

@ opening up space for wider discourse and action on responses to the needs of marginalised

groupsandcommunities;

@ demonstrating how services can be provided more effectively, how local communities can be

developed,andissuesofconcernbeaddressed.

Moreover,theabovementionedsuggestedoutcomesshalladdressthefollowingneedsandconcerns:

5Faithbasedorganisationsareeligibleiftheymeettheprinciplesidentifiedinsection2.3andifthefundedactivitiesdo

notdirectlyor indirectlypromoteareligiousdoctrine,missionorproselytismrelatedtothebeliefsofaparticularfaith

(beyondbasicreligious/culturalawarenessraising).


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@ to increase citizen engagement, in relation to both advocacy (citizen engagement in decision

making)anddevelopingvolunteerism;

@ toincreaseunderstandingbetweenNGOsandgovernmentandtolookforcommonapproachesto

solutionsforsocietalproblems(social,economic,environmental);

@

to

strengthen

coalition

building

and

partnership

working

between

NGOs

(including

skills

and

experiencetransferfromlarger,strongerNGOstosmaller,newerandregional/localNGOs);

@ to increase focus on advocacy and watchdog roles of NGOs, particularly in relation to the

transparencyandaccountabilityofstateinstitutions;

@ totacklepersistentconcerns intermsofaddressingdiscrimination,exclusion, inequality,respect

ofhumanrightsanddemocraticprinciplesandprocesses;

@ to address longerterm capacity of NGOs, and not just focus on immediate and shortterm

problemsolving.

2.5 CoreareasofsupportAtleastonethirdoftheregrantingallocationtotheprogrammeshallbefocusedonthecoreareasof

support identified below, as critical areas where NGOs can play a specific role and foster positive

change:

Democracy

Humanrightsincludingminoritiesrights(ethnic,religious,linguisticandsexualorientation)

Goodgovernanceandtransparency

Participatorydemocracy

Combatracismandxenophobia

Antidiscrimination

Socialinequalities,povertyandexclusion,includinginruralareas

Genderequality

Genderbasedviolence

At least10%ofthetotalallocationtoaprogrammeshallbeallocatedtochildren andyouthdriven

organisationsand/oractivitiestargetingchildrenandyouth.

Whilethemainfocusandspecificconcernsintheprogrammeareamightbedefinedinbroadtermsin

theeachMemorandumofUnderstanding(MoU),furtherfocusandareasspecificallyrelevanttocivil

society in individual Beneficiary States will be defined in the programme Proposal, to the greatest

extentpossibleinconsultationwiththesector.

2.6 AdditionaleligibleareasofsupportInadditiontothecoreareas,thefollowingareasandactivitiesarealsoeligibleforsupport:


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Protectionoftheenvironmentandclimatechange:

Awarenessraisingandcivicparticipation

Developumbrellaorganisationsand/ornewnetworksonbiodiversity/climatechange

NGOinvolvementinnationalactionplansrelatedtobiodiversityand/orclimatechange

Mobilisinglocal

involvement

to

protect

biodiversity

Environmentaleducationalactivitiesandtrainingforteachers

Provisionofwelfareandbasicservices:

Provision of key services to vulnerable groups: children and youth at risk, people affected by

HIV/AIDS, children with disabilities and/or mental disorders and their families, victims of

trafficking and genderbased violence and/or domestic violence, where such services are not

otherwiseornotadequatelyprovidedbygovernmentalinstitutions.

2.7 EligibleactivitiesThe NGO programmes aim to strengthen the sector, and its contribution to key challenges. In this

respect,thefollowingactivitiesareproposedaseligibleforsupportundertheNGOprogrammes:

Fosteringactivecitizenshipandparticipatorydemocracy,includinggrassroots/locallevel

Advocacy,watchdogandmonitoringactivities

Awarenessraisingactivities

Multiculturaldialogueactivities

Participationinpolicyanddecisionmakingprocesses

CapacitybuildingandorganisationalsupporttoNGOs

Strengtheninggovernance

in

membership

based

NGOs

Networkandcoalitionbuilding

Mutuallearninganddissemination

Educationandtrainingactivities

Culturalinitiativestopromotekeyareasofsupportasmentionedabove

Provisionofwelfareandbasicservices

Theprovisionofwelfareandbasicservicesshallbesupportedwheresuchservicesarenototherwise

or not adequately provided by governmental institutions, where NGOs can provide the most

appropriate, affordable or accessible service, or where they can establish innovative or essential

servicesthat

are

not

currently

being

provided.

Such

activities

should,

where

possible,

be

combined

with support to soft measures such as promotion of volunteerism, advocacy, empowerment and

participationoftargetgroups,capacitybuildingetc.

Programmes are expected to support capacity building and organisational developmentper se, or

include this in the framework of a project application. Capacity building may also be linked to the

future development of bilateral partnerships and the sharing of learning about good practice


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10

processes in relation to the areas of support and expected outcomes outlined in the suggested

programmes.

2.8 CrosscuttingissuesTheprinciplesofgoodgovernance,sustainabledevelopment,genderequalityandequalopportunities

shallbeappliedinallimplementationphases(Art.1.6).Guidelinesareprovidedonhowtoeffectively

ensurethatsuchcrosscuttingissuesaretakenonboardintheprogrammedesignandatprojectlevel

(section2.7ofthePOM).Guidelinesforapplicantsatnationallevelareexpectedtoclarifyhowthese

issueswillbeaddressedinprojects.

2.9 BilateralrelationsBilateral relations between Beneficiary and Donor States shall be encouraged through the NGO

programmes,in

line

with

the

overall

objective

of

the

EEA

Financial

Mechanism.

The

practical

tools

and

implementationofbilateralpartnershipsaredetailedinsection3.8ofthepresentGuideline.

NGO programmes shall usually not be Donor Partnership programmes. Bilateral cooperation shall

ratherincludeoutreach,networkingandexchangeofknowledgeatProgrammeOperatorleveloutside

aprogramme partnership agreement and/or be reflected in the development andestablishment of

cooperation atproject level both within donor partnership projectsand on a moread hoc basis by

projectswithoutaformalpartnershipagreementthroughexchangeactivities.

Infacilitatingcooperation,theProgrammeOperatorshallconsiderthefollowing:

- encouragebilateralrelationsthatcanactivelycontributetotheexpectedobjectiveandoutcomes

oftheNGOprogramme;

-encourage

cooperation

that

is

mutually

beneficial

and

based

on

common

interests.

- make use of Donor State information tools and channels available to facilitate bilateral

cooperation. InthecaseofNorway, theNorwegianHelsinkiCommitteeshallactas facilitator in

buildingbilateralcontacts,includingthroughthewebsitewww.ngonorway.org.

Moreover,infacilitatingconcretepartnershipbuildingtheOperatorshall:

- allowforadequatetimeframesforpartnershipdevelopment;

- allowforadequateinformationopportunitiesonpartnershipbuilding;

- identifylegalbarrierstopartnershipsandexplorehowtoovercomethese.

2.10 CrossbordercooperationAnNGOprogrammemayberelevantforcooperationbetweenentitiesinaBeneficiaryStateandina

countryoutsidetheEEAthathasacommonborderwiththerespectiveBeneficiaryState.Crossborder

projects are therefore eligible, if they contribute to the NGO programme outcomes identified in

section2.4oftheGuideline.


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3. SETTINGUPOFNGOPROGRAMMES3.1 GeneralprinciplesTheprogrammesshallapplythehighestdegreeoftransparency,accountabilityandcostefficiencyas

well as the principles of good governance, sustainable development, gender equality and equal

opportunities in all implementation phases. The Donor States exercise zerotolerance towards

corruption(Art.1.6).

DuringtheMoUnegotiationbetweenDonorStatesandBeneficiaryState,theallocationfortheNGO

programmeshallbeset.

3.2 AppointmentofanOperatorThe

management

of

the

NGO

programme

shall

be

of

the

responsibility

of

an

Operator,

whose

appointmentprocedureshallbedefinedintheMoU.UnlessanentityisalreadyidentifiedintheMoU,

thefollowingoptionsmaybeproposed:

appointment of a Programme Operator by the Focal Point in consultation with the FMC (Art.

4.2.4);

the NFP, with the consent of the FMC, entrusts the FMO as Programme Operator who shall

appointandcontractafundoperatortoensureimplementationoftheprogramme(Art.5.13).

IndesignatingtheProgrammeOperatorforNGOprogrammesand/or inpreparingtenderingorsuch

documentationasisnecessarytoappointtheOperator,theFocalPointshallconsultwiththeFMCon

thecriteriaandduringtheselectionprocedureofsuchanOperator.

IntheeventofappointmentoftheFMOasProgrammeOperator,theprovisionsoftheRegulationdo

not apply, and the present Guideline is also not directly applicable. Nonetheless, in such cases the

fund operator terms of reference and implementation agreement shall be broadly based on the

provisionsofboththeRegulationandthepresentGuideline.

WhenaprogrammeisbeingoperatedbytheFMOorotherinternationalentities,theBeneficiaryState

bears no responsibility for the implementation of the programme, financially or otherwise (Art.

5.13.5).

Aprogrammemaybeoperatedbyaconsortiumofseveralentities,eachhavingspecificcompetences,

experienceandknowledgewhichtogetherwillstrengthenthemanagementcapacity/expertiseofthe

Operator.Theprogrammeproposalshouldspecifytheaddedvalueofsuchaconsortiumandtheset

upofthepartnershipthisentails.

3.3 ContractingofaProgrammeOperatorThe Programme Operator shall enter into a programme implementation agreement with the Focal

Pointfortheoperationoftheprogramme(Art.5.8).InthecaseofprogrammesoperatedbytheFMO,

animplementationagreementshallbeestablishedbetweentheFMOandthefundoperator.


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3.4 NGOProgrammeOperatorcharacteristicsTheProgrammeOperatorshallhavestrongtiestotheNGOsector.TheProgrammeOperatorshallbe

autonomous of national, regional and local governmental institutions. Should such an autonomous

ProgrammeOperatorbeunattainable,theFMCmay inexceptionalcaseswaivethisrequirementbut

onlytotheextentnecessary(Art.4.2.4).

Moreover,thefollowingcharacteristicswouldbeexpectedofanNGOProgrammeOperator:

Knowledge:

@ beknowledgeableabout theNGOsector in theBeneficiaryState, fullyunderstand theneedsof

the sector, and be capable of responding to these needs with active and trusting relationships.

Knowledge should extend to all parts of the NGO sector, including grass roots, regional and

nationalgroups;

Understanding

@ seek clear evidence of needs in developing an NGO programme proposal, engaging the NGO

sectorintheprocess;

@ haveapartnershipapproachtoworkingwithNGOsandgovernment.

@ work flexibly to takeaccount of project ideas (including in the trainingof the assessors), rather

thanconsideringonlytheskillofanNGOinsubmittingawellwordedproposal;

Independence

@ beindependentof governmentatalllevels;

@ ensurethatgrantsareallocatedaccordingtothefocusoftheNGOprogrammeitselfratherthan

anydirectorindirectpoliticalconsiderations;

Managementcapacity

@have

experience

/

understanding

in

running

programmes

that

involve

regranting,

detailed

proposalswithtargetsandoutcomes,andunderstandingofnational laws,rulesandprocedures

thatapplytothemanagementofpublicmoney;

@ ensurecleartransparentassessmentprocessesforgrants;

@ haveexperienceofdevelopingmanualsandaccountingsystemsthatreflectthesizeofthegrant

andyetprotectsmallNGOsfromunreasonabledemands;

@ havesystemsforimplementinggoodcommunicationandpublicitytoolsandeventsetc.;

@ ensureefficientreporting,financialmonitoringandpaymentsystems;

@ ensure monitoring and evaluation procedures that focus on outcomes not just targets and

outputs,andencourageselfevaluationinendbeneficiaries;

@ ensurethatsmallerNGOswithoutaccesstoadditionalresourcesarenotdisadvantagedbyslow

paymentmechanisms;

Capacitybuilding

@ provideongoingoutreachworkandsupport toprojects throughout the projectcycle, including

trainingonapplicationwritingandsubmission, implementation,reporting,andopportunities for

experience sharing between funded projects as well as monitoring. This will be particularly

importantinencouraginglearningtransferandcontributingtostrengtheningthesectoritself.


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13

3.5 ProgrammeApplicationThe Programme Operator shall submit through the Focal Point a formal proposal for an NGO

programme within eight months of the date of its designation as Operator, and no later than 31

January 2013. Guidelines for completing the programme proposal are provided in Chapter 3 of the

POM.

InordertoensureconsistencywiththeRegulation,withthepresentGuidelineandwiththeobjectives

and expected outcomes of the programme area, the FMO may be consulted for advice during the

preparationoftheprogrammeproposal(Art.5.1.4).

The Programme Operator shall ensure that the proposal provides an effective contribution to the

overallobjectiveoftheProgrammeandtakesdueaccountofspecificconcernsreferredtointheMoU,

and to specific challenges in the sector. Where NGO stakeholder meetings and other consultations

havebeenheldintheBeneficiarystate,theoutcomeofsuchprocessesshallbeconsideredindefining

thescopeoftheproposal.Costsforpreparationofprogrammesmaybecovered(Art.7.9).Thesemay

includeamong

others

studies

of

or

public

consultation

with

the

sector

which

may

assist

in

defining

the

focusandsetupoftheprogramme.

Inpreparingtheprogrammeproposal,theOperatorshallidentifytheappropriateexpectedoutcomes,

activitiesandareasofsupportasreferredtoinChapter2ofthisGuidelinewhichwillbestcontribute

to achieving the overall objective of the NGO programme in their country. Expected outputs and

objectivelyidentifiableindicatorsshallalsobedefinedforeachexpectedoutcome(section2.8ofthe

POM).Indicatorsarenotrequiredforobjectivelevel.

Operatorsarerequestedtodrawfromthestandardised listof indicators(section2.8.1ofthePOM),

consisting of quantitative indicators in drawing up their list of relevant measurement indicators.

However,

in

order

to

assess

outcomes

or

outputs,

Operators

are

asked

to

also

include

more

programmespecificquantitativeandqualitativeindicators.

The FMC shall appraise and approve the programme proposal within four months of receiving all

relevant documents / information (Art. 5.3); and subsequent changes in the approved programme

proposalshallbetreatedasperArticle5.9oftheRegulation.

TheProgrammeproposalshallbesenttotheEuropeanCommissionforscreening(Art.5.10).

3.6 ResponsibilitiesoftheProgrammeOperatorThe

Programme

Operator

is

responsible

for

managing

the

programme

(Art.

4.7).

In

the

case

of

an

NGO

programme,thePOshallspecifically:

@ ensure that the NGO programme proposal, set up and implementation contribute to

strengthening civil society development and enhance the sectors contribution to socialjustice,

democracyandsustainabledevelopment,asoutlined in theoverallobjectiveof theprogramme

area.


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14

@ provide capacitybuilding, mentoring, support and learning transfer opportunities to projects

throughout the application and project cycle in connection with the identified overall objective

andexpectedoutcomes.Thisincludesbutisnotlimitedto,respondingtoquestionsfrompotential

applicants,conductingseminars/workshopsforNGOsandpublishinginstructionsandguidelines

forapplicants;

@ organise calls for proposals that take into account the specific needs of the sector in terms of

geographical spread, capacity etc. and propose adequate application forms, procedures and

supportwhichwillcaterfordifferentneedswithinthesector;

@ setupanindependentevaluationteamandaSelectionCommittee,includingrelevantNGOsector

experts(Art.6.4);

@ implementinformationandcommunicationactivitieswhichreachouttothesector;

@ facilitateandencouragebilateralexchangeatprogrammeandprojectlevelwhichwillbemutually

beneficialandcontributetotheobjectiveoftheprogramme;

@ defineadministrativeproceduresandmanagethefundsforbilateralrelationsatprogrammelevel

inawaythatwillfacilitatesuchexchanges;

@ensure

financial

flows

and

fund

transfers

that

will

not

put

projects

at

risk

and

ensure

adequate

financialcontrol;

@ ensureproportionaterequirementsinmanagement,reportingandcontrol.

The Programme Operator and FMO may have direct contact during the programming and

implementationphase.

3.7 ManagementcostsoftheProgrammeOperatorThe maximum management cost of a programme shall be calculated as a percentage of the total

eligibleexpenditures

of

the

programme.

It

shall

be

the

sum

of

the

following

amounts

(Art.

7.10.2):

(a) 10%ofthefirst10million;

(b) 7%ofthenext40million;

(c) 5%ofthenext50million;

(d) 4%oftheremainingtotaleligibleexpendituresoftheprogramme.

NGOProgrammeOperatorsmaysuggest intheirproposalahigherceilingforthemanagementcosts

butnevermorethan30%abovetheceilingstipulatedabove, inordertomeetobligationsrelatedto

capacitybuildingofthesector.Suchaceiling,ifapprovedbytheFMC,shallbeexplicitlystipulatedin

theprogrammeagreement.Theceilingformanagementcostsandcomplementaryaction(seesection

3.8

of

the

present

Guideline)

combined

shall

not

exceed

15%

of

the

total

eligible

cost

of

theprogramme(Art.7.10.4).

Eligibleactivities includekeyprogrammemanagementtasksbutalsocapacitybuildingactivitiessuch

astrainingpotentialNGOapplicantsandProjectPromotersincomplyingwiththerequirementssetby

the Programme Operator for project applications and/or project implementation (Art. 7.10.3.b).

Capacitybuilding activities at Programme level are essential in strengthening NGO applicant and

individual Project Promoters own capacity, including in further applying for and implementing

projects.


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3.8 BilateralfundsBilateralrelationswithDonorStatepartnersshallbeencouragedthroughtheNGOprogrammesand

specificfundingshallbesetasideasfollowstosupportsuchcooperation:

FundingforProgrammelevelactivities:

a) Funds at national level for bilateral relations (Art. 3.5): These funds represent 0.5% of the

Beneficiary States total allocation and are intended to facilitate outreach and networking

betweentheProgrammeOperatorsandpotentialprojectpartnersfromtheDonorStatespriorto

or during the preparation of a programme proposal and during the implementation of the

programme.TheNationalFocalPointshallmanagetheuseofthefunds.Thefirstdateofeligibility

forthesefundsisthedateofthelastsignatureoftheMoUwiththerespectiveBeneficiaryState.

b) Complementaryactionsfunding(seesection3.9oftheGuideline)

Fundingforprojectlevelactivities:

a.

Seedmoney

Funds

for

project

applicants

to

facilitate

bilateral

cooperation

(Art.

3.6)

through

supporttothefollowing:

(i) thesearchforprojectpartnersfromtheDonorStatespriortoorduringthepreparation

ofaprojectapplication;

(ii) thedevelopmentofsuchpartnerships;and

(iii) thepreparationofanapplicationforadonorpartnershipproject.

b. Fundsforapprovedprojects,tofacilitatebilateralcooperationbetweenPromotersandDonor

State entities,whetherornot theyareprojectpartners, to facilitatenetworking,exchange,

sharing and transfer of knowledge, technology, experience and best practices within the

programmesapprovedprojects(Art.3.6.3).

Thecombinedallocationtothe fundsreferredtoa)andb)aboveshallnotbe lessthan1.5%ofthe

eligibleexpenditureoftheprogramme.

Eligibilitycriteriaofsuchcostsaredetailed inArticle7.7oftheRegulation. TheFMCcan injustified

caseswaivetherequirementforeitherofthefundsavailableatprojectlevel.

The applicable rules on state aid and public procurement shall be complied with (Art. 3.6.6). The

selection procedures and criteria for awarding support from these funds, the grant rate and the

maximum grant amount shall be suggested in the programme proposal and set in the programme

agreement.TheOperatorshouldalsodefineproportionateproceduresforreportingonsuchcosts.

3.9 ComplementaryactionsAs well as specific managementrelated activities, the NGO Programme Operators may undertake

complementary actions (Art. 7.11). These relate to targeted, mutually enhancing peertopeer

exchangesofpracticesbothwithotherOperatorswithintheBeneficiarystatesandalsowithsimilar

entitiesintheDonorStates.

Suchactionsaimat:


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@ strengthening cooperation between the Programme Operators and similar entities within the

BeneficiaryStatesandDonorStates;

@ exchangingexperiencesandbestpracticesrelatedtotheimplementationoftheprogramme.

A specific allocation shall be set aside to support such actions. The following categories of

complementaryactionmaybeeligible,providedthattheexpenditureisproportionateandnecessary:

@ costsofevents,suchasrentof facilities, interpretation,travelcosts,subsistenceallowance,and

publicitycostsdirectlyrelatedtotheconference;and

@ salaries,travelcostsandsubsistenceallowanceofpersonnelofentitiesotherthantheProgramme

Operator that are directly involved in the complementary action, and of personnel of the

Programme Operator when such cost can be clearly separated from costs related to the

managementoftheprogramme.

CostsofcomplementaryactionmayinthecaseofNGOprogrammesbeofanamountequalto30%of

managementcostsandon topof these,subject toacombinedmaximumceiling (managementplus

complementaryaction)notexceeding15%ofthetotaleligiblecostoftheprogramme.

CostsforcomplementaryactionmustbeexplicitlyapprovedbytheFMCandspecifiedinthedetailed

budgetoftheprogramme,annexedtotheprogrammeagreement.

4. PROGRAMMEANDPROJECTIMPLEMENTATION4.1 OpencallsandavailabilityoffundsTheProgrammeOperatorshallberesponsibletolaunchopencalls(Art.6.3).Thefollowingprinciples

shouldbetakenintoaccountinthecaseofNGOprogrammes:

- eligibilitycriteriaandfocusofthecallshouldbeclearlydefined;

- thenumberofcallsforproposalsshouldbeappropriatelyplanned;

- the number of calls should be reduced to a minimum necessary to allow for sufficient time to

providedevelopmentsupportforprojects.Nonetheless,itshouldalsoreflecttheneedtoprovide

foropportunitiestoreapply,wherefurthertimeisneededfordetailingproposals,orforpossible

dissemination or followup of innovative projects; where programme proposals allow for

resubmission;

- preannouncementofthecallsisencouragedinordertofacilitateapplicantspreparationforthe

upcomingcall,

and

taking

into

account

regional

outreach,

language

needs

etc.;

- where appropriate, definitions of size and scales of funding available (for example micro/

small/medium/large)shouldbeprovided,takingaccountofthesizeanddiversityoftheNGO

sectorinthecountryandinanefforttoensurealevelplayingfieldforallapplicants;

- callsshouldclearlyhighlightwhereaspecifictypeoffocuswouldberelevantandcouldbeunder

representede.g.ruralareas,specifictargetgroups,etc.;


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17

- appropriate application forms should be prepared: the principle of proportionality should be

appliedandOperatorsshouldconsidersimplifiedproceduresforsmallergrants;

- applicationformsshouldguidealessexperiencedapplicantthroughtherequirementsofaproject

proposal,withguidelinesforapplicantsthatareclearandindicateclearlywhatisrequiredineach

sectionofanapplicationform;

- the introduction of a twostage application process, with an outline proposal and full proposal

development for those outlines passing the initial stage assessment may be envisaged where

appropriate,includingwheretheNGOprogrammesupportsthedevelopmentofinnovativeideas

orforlargerscaleapplications;

- workshops or other kinds of support at the preapplication stage shall be organised as ongoing

mentoringandsupportthroughtheapplicationprocess,toprovidedetailedguidanceonwhatwill

belookedforintheproposalforfunding;

- partnership/coalitionapplications,particularlywheretheNGOsectorisverycompetitive,should

be encouraged, as should coalitions between experienced and less experienced NGOs, where

directorindirectcapacitybuildingcanbeachieved;

-

encourage

andfacilitate

reach

out

to

Donor

State

organisations,

including

information

on

seed

moneyforbilateralpartnershipbuilding.

4.2 ProcessingofapplicationsThe Programme Operator shall establish a Selection Committee consisting of at least three persons

possessingtherelevantsectorexpertiseandexperienceofworkingon/withcivilsociety.Atleastone

ofthemshallbeexternaltotheProgrammeOperator(Art.6.4).

TheFMC and the NFP shallbe invited to participate in themeetingsof the Selection Committeeas

observers.

SelectionproceduresshouldbedefinedbytheProgrammeOperator inaccordancewithArticles6.4

and6.5oftheRegulation.TheProgrammeOperatorshall review theapplications foradministrative

andeligibilitycriteriacompliance, informrejectedapplicantsandgrantappealtime.TheProgramme

Operatorshallappoint independentand impartialexternalexpertstoscoreprojectsaccordingtothe

selection criteria. Such experts shall have no direct or indirect interests that are or appear to be

incompatiblewiththe impartialexerciseoftheirfunction(Art.6.5).Applicationsshallbeassessedby

twoexperts,andwherethedifferenceinexpertsscoresisabove30%,athirdexpertshallassessthe

application.

Experts can be selected either through an open call for tender, or invited on the basis of previous

experience,eitherinNGOfundingworkorrelevantworkwithregrantingagencies,ministriesorother

fundinginstitutions.

TheProgrammeOperatorisresponsibleforensuringaclearandtransparentselectionprocedureand

takingappropriatemeasuresinthecasethataconflictofinterestsituationarises.

TheProgrammeOperatorshallsubmitthe listofrankedprojectstotheSelectioncommittee,and in

EnglishtotheFMC.TheSelectioncommitteeshallmakedecisionsontheapplicationsaccordingtothe

procedureoutlined(Art.6.5).


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TheProgrammeOperatordecidesontheprojectstobesupportedbasedontheSelectioncommittees

recommendation. Modifications to the recommendations of the Selection committee shall be

justified.

Both successful and unsuccessful project applicants shall be informed of the outcome of their

application.

Unsuccessful

applicants

will

be

provided

with

feedback

on

why

their

projects

were

not

approvedforfundingorwhatriskswere identifiedthatpreventedfunding,andprovisionsforappeal

willbeestablished.

4.3 SelectioncriteriaSelectioncriteriashallbespecifiedintheProgrammeProposalandintheopencalls.Criteriashallbe

defined by the Programme Operator and will be linked to scoring in the assessment of the

applications. It shall relate to how the project contributes to the programmes objective, expected

outcomesandoutputs,andshallincludebutnotbelimitedtothefollowing:

- Relevanceoftheproject

- Methodology

- Coherencebetweentheobjectives,activities,outputsandresults

- Experienceandcapacityoftheapplicant

- Sustainability

- Innovativeness

- Capacitybuildingpotential

- Impactoncrosscuttingissues

- Communicationplan

- Valueformoney

A

minimum

required

score

for

key

criteria,

such

as

relevance

of

the

project

to

the

NGO

programme

objectiveandoutcomescouldbeset,aswellasaminimumtotalscoreforaproject.

TowidenaccesstoNGOprogrammes,assessmentcriteriamayuseweightingwherespecifictypesof

projectsareunderrepresentede.g.ruralareas,specifictargetgroups,minoritiesetc.Thisshouldbe

integratedaspartofatransparentprocesse.g.throughthepublicationofselectioncriteria.

4.4 ProjectlevelpartnershipPartners in projects are public or private entities, commercial or noncommercial, as well as non

governmentalorganisations,allofwhoseprimarylocationsareeitherintheDonorStates,Beneficiary

States

or

a

country

outside

the

European

Economic

Area

that

has

a

common

border

with

the

respective Beneficiary State, or any intergovernmental organisation, actively involved in, and

effectively contributing to, the implementation of a project. It shares with the Project Promoter a

commoneconomicorsocialgoalwhich istoberealisedthroughthe implementationofthatproject

(Art.1.5.1w).

Project partnership shall conform to national legislation on public procurement and state aid.

Partnershipscanbebothbilateral,involvingDonorStateprojectpartners,asdescribedinsection2.9


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of the Guideline, or involve Beneficiary state partners. Some examples from the above, beyond

partnershipswithotherNGOs,mayinclude:

thinktanksandacademicinstitutionswheretheywillcontributeexpertisetoaproject,particularly

whereaprojectisinnovativeinnatureandwhereresearchintotheoutcomes/resultsofaproject

wouldbevaluableforwiderlearning,disseminationandreplication.

statutorybodiesandagencies(localgovernments,nationalgovernmentagenciesetc),inbuilding

crosssectoralpartnerships.

Projectpartnershipsshallbeestablishedthroughpartnershipagreementswiththepartnersandbein

Englishinthecaseofdonorpartnerships.Partnershipagreementstemplatesshallbeproposedbythe

ProgrammeOperatorandreflecttheneedforproportionality(Art.6.8).

Cooperation is also possible with local informal, ad hoc and selfhelp organisations that are not

registeredlegalentitiesinthecountry. Suchorganisationsmusthowevermeettherequirementsthat

theyarenotforpersonalprofit,actforpublicgood,arevoluntaryandnondiscriminatory innature,

aremembershipbasedandentirelyindependentoflocal,regionalandnationalgovernmentandother

publicauthorities,

and

are

independent

of

political

parties

and

commercial

organisations.

4.5 GrantsizeandrateatprojectlevelTheprojectgrantratemaybeupto90%ofeligibleexpenditureoftheprojectinthecaseofprojects

within NGO programmes (Art. 5.4.3). The maximum project grant rate shall be proposed in the

programme proposal and determined in the programme agreement. It shall take into account the

need to ensure the Project Promoters commitment and ownership, as well as sustainability of the

project.

Theco

financing

shall

be

provided

in

the

form

of

cash

or

in

kind

contribution.

In

kind

contribution

in

theformofvoluntaryworkmayconstituteupto50%ofthecofinancingrequiredbytheprogramme

fortheproject(Art.5.4.5).Theprogrammeproposalshallspecifytheappropriateunitpricesforthe

voluntaryworkwhichshallbeinaccordancewithanormallypaidsalaryforsuchworkinthecountry,

includingtherequiredsocialsecuritycontributions.Thepricesmayvarydependingontheregion in

which the work is performed or the type of voluntary work, and may be adjusted during the

implementationoftheprogrammeinordertotakeintoaccountchangesinsalaries.

Maximum and minimum grant ceilings need to be determined by knowledge of the absorptive

capacityoftheNGOsectorintheBeneficiarystate,howfarthegrantsshouldreachtosmallerNGOs

withlesscapacitytomanagelargegrantsandprojects,andshouldreflecttheoutcomesandfocusset

fortheNGOprogrammeineachBeneficiaryState.

Differentiation of funding schemes, between micro / small / medium and large grants shall be

introduced as appropriate to cater for differing levels of experience, size and projectrelated

requirements. Smaller scale funding should be made available, particularly for less experienced

organisations, or for capacity building and organisational support. A lower maximum size of grants

shouldbecoupledwithsimplifiedandproportionateproceduresforsmallergrants.


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4.6 DurationofprojectsTheneedforflexibleprojectdurationshouldbetakenintoaccountbytheProgrammeOperatorinthe

development of the programme proposal. Longerterm project funding, for example where pilots /

innovation are being developed, for projects which are focused on changed processes and

development of new methodologies, or where operational costs and capacity building are beingdevelopedshouldbeconsidered.Longertermfundingmayalsobeneededforlargerscaleprojects.

ThelatestdateofeligibilityofexpenseswithinprojectsunderNGOProgrammesshallbe30April2016

(31December2015 inthecaseofSpain) (Art.7.14).TheProgrammeOperatorshallensurethatthe

grantsarecommittedintimeforadequateimplementationoftheprojectactivities.

4.7 PredefinedprojectsPredefined projects may be proposed by the Programme Operator in exceptional cases (Art. 5.5).

Predefinedprojects

within

NGO

programmes

should

be

limited

and

encouraged

to

focus

on

activities

thatwillbenefitthesectorasawhole,andcontributeto theoverallobjectiveoftheprogrammeor

anyofthedefinedoutcomesforexamplestudies,mappingsofthesector,etc.

4.8 ProgrammelevelreportingTheNGOProgrammeOperatorshallsubmitthefollowingreports:

@ theannualprogrammereport:includinginformationonprogressinimplementationoverthepast

period, achievements in meeting the objectives, including bilateral cooperation, challenges and

irregularities.Thereportingperiodsfortheannualprogrammereportsshallbethecalendaryear,

and

reports

shall

be

submitted

not

later

than

15

February

each

year

(Art.

5.11);

@ thefinalprogrammereportshallmainlyfocusonachievementofobjectives,expectedoutcome(s)

andoutputs,aswellasfinancialinformation(Art.5.11);

@ interimfinancialreportsshallbesubmittedinaccordancewithArticle8.3oftheRegulation(more

detailscanbefoundundersection5ofthisGuideline);

@ irregularitiesshallbereportedinaccordancewithArticle11.5oftheRegulation;

@ reportingoninterestearnedinaccordancewithArticle8.7oftheRegulation.

TheannualprogrammereportandfinalprogrammereportshallbesubmittedtotheFMCthroughthe

NationalFocalPoint.

ThereportswillbesubmittedthroughthewebbasedsystemestablishedbytheFMO.

4.9 ProjectlevelreportingInorder toallow fordataaggregation atproject level, the NGO ProgrammeOperatorsshallsubmit

standardisedinformationrelatedtoeachproject.AwebbasedsystemwillbedevelopedbytheFMO

into which the Programme Operators will be requested to upload and regularly update project

informationinastructuredmanner(Art.4.7.p).


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Programme Operators shall provide Project Promoters with the necessary reporting tools and offer

guidanceonhowtheyshouldbeused.Simplifiedprojectreportingrequirementsshallbeproposedin

caseofmicroorsmallscalegrants.

4.10 MonitoringandevaluationEvaluationandmonitoringofprogrammesshallbeinitiatedbytheNationalFocalPoint.Evaluationof

programmes may also be carried out by the FMC in consultation with the NFP. Monitoring and

evaluationofprojectsshallbedevelopedbytheOperator(Art.4.3.7,Chapter9andChapter10).

TheongoingprojectmonitoringfunctionsarecarriedoutbytheNGOProgrammeOperatorwhoshall

alsoundertakeannualmonitoringofasampleofprojects (Art.4.7.f). Amonitoringandevaluation

planshallbesubmittedwith theprogrammeproposal, in linewiththereportingrequirements.This

planshouldincludementoringandsupporttothefundedprojects,aswellasregularprojectvisitsfor

monitoringpurposes.

Monitoring

visits

should

be

seen

as

supportive

instruments

and

not

solely

as

toolsforauditpurposes. Supportedprojectsmayalsobeencouragedtoincludeselfevaluationwithin

their proposals and where appropriate, capacity building support in selfevaluation methods and

approachesmaybeprovidedbytheProgrammeOperators.

4.11 ComplianceassessmentandauditsA detailed description of the management and control systems of the Programme Operator,

accompaniedwithanauditreportandopinionshallbesubmittedtotheFMCwithinsixmonthsfrom

submissionofthefirstinterimfinancialreport(Art.4.8).

Theprogrammeshallbeauditedat leastoncebythenationalAuditAuthoritytoverifytheeffectivefunctioning of management and control systems, and audits at project shall be performed by the

OperatorandbytheAuditAuthorityonasamplebasis.

4.12 VisibilityandPublicityCommunicationandinformationareimportantelementsinensuringoutreach,visibility,transparency

and learning in the development and implementation of NGO Programmes. It is expected that the

overallactivitiesoftheNGOprogrammearemadevisibleandcommunicatedinatransparentwayto

society, inordertohighlightresultsandtheir impactongeneralissuesofconcernwithincivilsociety

assuch.

NGOProgrammeOperatorsare requested toproactivelypromoteclear,consistent,comprehensive

andeasilyavailableinformationonbothProgrammeandprojects.Appropriateandwidevisibilityand

disseminationofresultsshallalsobeensuredatProgrammeandprojectlevel. ProgrammeOperators

and project promoters shall provide and implement appropriate Communication strategies and

Publicityplans in linewiththe InformationandPublicityrequirements inAnnex4oftheRegulation.

Theresultsbasedmanagementsystemandrelevantwebbasedreportingsystemtoolsinplaceshould


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becompliedwithandusedtoensureadequateandefficientinformationflowsontheimplementation

oftheNGOprogrammesandsupportedprojectsacrosstheBeneficiarystates.

5. FINANCIALMANAGEMENTTheNGOProgrammeOperatorshallberesponsibleforthefinancialmanagementoftheprogramme

inlinewithChapters7and8oftheRegulation.

The principle ofproportionality shall be applied in the assessmentof programme management and

control system requirements (Art. 4.8.3). The NGO Programme Operator shall apply the

proportionalityprinciplealsoatprojectlevel,implyingthatthelevelofcontrolshallbereasonableand

appropriatetothesizeandtypeofprojectssupported.Themanagementandreportingrequirements

shallbe

adapted

to

ensure

the

project

objectives

are

achieved

in

the

most

effective

and

efficient

way.

AbudgetfortheNGOprogrammeshallbeprovidedbytheProgrammeOperatorwiththeprogramme

proposal.

Thebudgetshallbestructuredintobudgetheadingsandfollowthetemplatesprovidedinsection3.15

ofthePOM.Thebudgetshouldincludeinformationon:

- management costs. In cases where the NGO Programme Operator is appointed through a

competitivetenderingprocedure,theFMCcandecidethatthecontractvalueshallbeacceptedas

management costs instead of actually incurred expenses, within the ceilings for management

costsestablished;

- contributionforregrantingtoprojects:thisheadingshallbebrokendownperexpectedoutcome;

- other additional headings (funds for bilateral relations, complementary actions; preparation of

programmeproposal,reserveetc).

5.1 EligibilityofexpenditureEligibleexpenditureofaprogrammeincludes:

(a) managementcostsoftheProgrammeOperator inaccordancewiththedetailedbudgetannexed

totheprogrammeagreement;

(b) payments to projects within the programme in line with the programme agreement and the

projectcontract;

(c) expenditureoffundsforbilateralrelations;

(d) complementaryactionoftheProgrammeOperator;

(e) expenditurerelatedtothepreparationofaprogrammeproposal(Art.7.9).Themaximumamount

of eligible costs under this category shall be set in the programme agreement and not exceed

0.5% of the total eligible costs of the programme or 100,000, whichever is lower. It can be

claimedwiththefirstInterimFinancialReport;


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(f) expenditurerelatedtothemitigationofexchange raterisksexplicitlyapprovedbytheFMCand

notexceeding1%ofthetotaleligibleexpenseoftheprogramme(Art.8.6.5).

Expenditureatprojectleveliseligibleifjustified,necessary,appropriate,anddirectlyrelatedtothe

projectslongtermeffectsandplannedresults(Chapter7).Overheadscanbebasedeitheronactual

costs

or

on

a

flat

rate

up

to

20%

of

total

direct

eligible

costs.

ProofofexpenditureshallcomplywithprovisionsinArticle7.13.

5.2 PaymentstoProgrammeOperatorPayments to NGO programmes shall take the form of advance payment, interim payment, and

paymentofthefinalbalance.Disbursementoffunds issubjecttothefulfilmentoftherequirements

relatedtoregularupdatingofinformation(Art.12.1).

A request for advance payment shall be part of the programme proposal (Articles 8.3 and 8.4).

Disbursementof

funds

is

subject

to

the

fulfilment

of

the

requirements

related

to

regular

updating

of

information(Art.12.1).

IncaseofcofinancedNGOprogrammes,theprincipleofproratafinancingshallapply,meaningthat

thepaymentsofthegrantsshouldbematchedwiththecofinancingamount.Thecofinancingshall

bepaidwithinonemonthafterthepaymentofthegrant.

Arequestforadvancepaymentshallbepartoftheprogrammeproposal.Theadvancepaymentshall

not exceed thejustified estimated expenditure for maximum two full reporting periods (up to 8

monthsfromthefirstdateofeligibilityoftheprogramme).Theadvancepaymentrequestedshallbe

broken down per budget heading and ajustification shall be provided. Approval of the advance

payment

will

be

part

of

the

programme

decision

of

the

FMC

and

will

be

set

in

the

programme

agreement(Art.8.2).TheadvancepaymenttotheNGOProgrammeOperatorshallbedisbursedafter

thesignatureoftheprogrammeagreementassoonasanyprogrammespecificgrantconditionsare

fulfilled.

Forinterimpayments,theunderlyingprincipleofthefinancialflowispaymentofadvanceinstalments

based on Interim financial reports certified by the Certifying Authority and approved by the FMC

(Annex11)duringthe implementationperiod inordertocoverestimatedfutureexpenditure,andat

the same time reporting on the use of previously received funds to cover actually incurred

expenditure.ThissystemshallensurethatProgrammeOperatorshaveapositivecashflowthroughout

thewholeimplementationperiod.

Thepredefinedfrequencyofthereportsubmissioncoverstheperiods1January30April;1May

31August;and1September31Decemberwithadeadlineforsubmissionofthecertifiedreportsto

theFMCby15March,15Julyand15Novemberrespectively(Art.8.3).

TheFMCwilldisbursethegrantpartoftheproposedexpenditure,unlesstheproposedexpenditureis

consideredineligible.Alsotheamountofanypreviouslydisbursedbutunusedfundswillbetakeninto

considerationwhenapproving theclaim.Thepaymentshallbeapproved in linewithconditionsset

outintheRegulationandtheProgrammeAgreement.


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Reporting on incurred expenditure as well as on proposed expenditure shall be broken down per

budgetheadingassetoutintheProgrammeAgreement.

The FMC may retain up to 10% of the management cost portion of every advance and interim

paymentto

the

programme.

The

retained

amount

shall

not

be

paid

until

the

final

programme

report

hasbeenapprovedbytheFMC(Art.8.1.4).

Thecalculationofthefinalbalancemaybesubjecttopossibledeductions,suchasinterestearnedbut

not yet reimbursed, or any funds reimbursed from Project Promoters not yet reimbursed by the

ProgrammeOperatortotheFMC(Art.8.4).

5.3 PaymentstoprojectsPayments from the Programme Operator to the Project Promoters shall take the form of advance

payments,interim

payments

and

payments

of

the

final

balance.

Thelevelofadvancepaymentsandtheiroffsetmechanismshallbeproposedintheprogramme

proposalandsetintheprogrammeagreement.Thelevelofadvancepaymentshallbeadequateand

shallensureregularfinancialflowatprojectlevel.

Thefrequencyandtimingofpaymentsshallbesetoutinawaythatapositivecashflowisensuredto

ProjectPromotersduringprojectimplementation.Interimpaymentsmaybebasedeitheronthe

principleofprefinancingorontheprincipleofreimbursementofincurredexpenditure,whicheveris

foundmoreappropriatebytheProgrammeOperator.

5.4 FinancialcorrectionandsuspensionofpaymentsFinancialcorrectionsorsuspensionofpaymentsmaybeappliedincasesreferredtoinChapter12of

theRegulation.

EEA Financial Mechanism 2009‐2014

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