MEMORANDUM OF UNDERSTANDING



XXX [e.g. Lutheran World Federation/Department of World Service - India Field Office (LFW-India)]

hereby agree on the following cooperation arrangements for the purpose of supporting the project:

Project title:                      ........................
Project location:                   .............
Duration of support:                ..................
Amount approved:                    EUR ................
Source of funding:                  [e.g. MFA or EU]

I. FCA agrees:
     1.   to keep the approved amount available for the scheduled duration of support;
     2.   to pay out the approved funds in two instalments each year of the project, subject to receipt of timely and appropriate
          financial and narrative reports;
     3.   not to withdraw its financial support without prior consultation with the project holder, should special circumstances arise.

II. The project holder, XXX, agrees:
      1.   to use the grant and the acquired assets only for the purposes and measures specified in the project proposal accepted
           by FCA;
      2.   to use interest earnings and possible exchange gains for the financing of the approved project;
      3.   to report regularly about the progress and the financial handling of the project according to the guidelines in Appendix 1;
      4.   to inform FCA about the conduct of external evaluations, information/publicity campaigns or other relevant initiatives
           related to the project.

III The parties to this MoU further agree:
      1.   Changes in the measures supported and in the period of support as well as the sale or alterations in the use of fixed
           assets are possible only if mutually agreed and confirmed in writing.
      2.   A subsequent amendment of the cost and financing plan must be notified to FCA.
      3.   Checks and evaluations through FCA staff or third parties on behalf of FCA are possible, provided the project holder is
           notified in writing beforehand.
      4.   Audits through external auditors shall be carried out according to the Ministry for Foreign Affairs of Finland guidelines
           (Appendix 2).
      5.   Continued support for the project is reassessed if there is a major deviation from the original plan in project
           implementation or if reasonable progress in achieving the stated objectives is not reached.
      6.   The attached Administrative Guidelines, Appendix 1, is part of this MoU and has to be signed separately and returned to
      7.   To the extent appropriate, the obligations under Annexes 3 and 4 also apply to this project.

Date and place                                                           Date and place

for FinnChurchAid                                                        for the project holder

Name:...                                                                 Name: ...
Position: ...                                                            Position: ...

Appendix 1: Administrative Guidelines
Appendix 2: MFA Guidelines on Auditing (to be provided in mid-2004)
Appendix 3: Partnership Agreement between MFA and FCA
Appendix 4: Financial Agreement between MFA and FCA

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