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					    WATERWAYS FORWARD
  Financial and Procedural Handbook



           Laying down general procedures

                          for


Project coordination, Financial management and Internal
                communication system
Document History
Revisions

Version   Status        Date          Changes
0.1       1st Draft     2010 Jan 29
0.2       1st version   12 March
                        2010
0.3
1.0
Contents
 Introduction                                                                                      5
 1 INTERREG IVC PROGRAMME INFORMATION                                                              6
1.1 Presenting the INTERREG IVC Programme ........................................................ 6
   1.1.1        Interregional cooperation for the Europe 27..............................................................6
   1.1.2        A Capitalization Programme: exchanging experience at policy level ..........................6
1.2 Overview of the INTERREG IVC Programme Bodies ............................................ 6
   1.2.1        Monitoring Committee ...............................................................................................7
   1.2.2        Managing Authority (MA)...........................................................................................7
   1.2.3        Certifying Authority (CA) ...........................................................................................7
   1.2.4        Audit Authority (AA) ..................................................................................................7
   1.2.5        Joint Technical Secretariat (JTS) ...............................................................................7
   1.2.6        National Contact Points (NCP) ...................................................................................8
   1.2.7        Information Points (IPs) ...........................................................................................8
 2 REGULATORY FRAMEWORK                                                                                            9
2.1 EU Legislation ............................................................................................... 9
2.2 National Legislation ........................................................................................ 9
   2.2.1        Country specific legislation ........................................................................................9
   2.2.2        Public procurement rules ...........................................................................................9
 3 WATERWAYS FORWARD PROJECT OVERVIEW                                                                         11
3.1 Project Summary ..........................................................................................11
   3.1.1        Background.............................................................................................................. 11
   3.1.2        Objectives ................................................................................................................ 11
   3.1.3        Activities .................................................................................................................. 12
   3.1.4        Project Results & Outputs ........................................................................................ 12
      3.1.4.1 Project Results                                                                                                               12
      3.1.4.2. Project outputs                                                                                                              13
   3.1.5        Project duration ....................................................................................................... 13
3.2 Waterways project partnership .......................................................................13
   3.2.1        Composition ............................................................................................................. 13
   3.2.2        The Partnership Agreement ..................................................................................... 14
   3.2.3        Roles & tasks amongst Partners .............................................................................. 14
 4 PROJECT MANAGEMENT & TECHNICAL COORDINATION                                                           15
4.1 Project Management structure ........................................................................15
   4.1.1        Project Management Team (PMT) ............................................................................ 15
      4.1.1.1           Project Manager (PM)                                                                                                15
      4.1.1.2           Financial Manager (FM)                                                                                              16
      4.1.1.3           Communication Manager (CM)                                                                                          17
   4.1.2        Partner Level Project Management .......................................................................... 17
      4.1.2.1           Partner Project Managers (PPM)                                                                                      17
      4.1.2.2           Partner Financial Managers (PFM)                                                                                    19
      4.1.2.3           Partner Communication Managers (PCM)                                                                                20
   4.1.3        Project Management Bodies .................................................................................... 20
      4.1.3.1           Working Group (WG)                                                                                                  20
      4.1.3.2           Steering Committee (SC)                                                                                             21
   4.1.4        Thematic groups ...................................................................................................... 22
4.2 Project Reporting ..........................................................................................22
   4.2.1        General Principles .................................................................................................... 22
   4.2.2        WF internal monitoring system ................................................................................ 23
   4.2.2        Reporting on partner level ....................................................................................... 23
   4.2.3        First Level Control (FLC) .......................................................................................... 23
      4.2.3.1           FLCs’ tasks                                                                                                         24
      4.2.3.2           Project Partner Control Confirmations                                                                               24
   4.2.4   Progress Reports ........................................................................................................... 25




                                                                   3
      4.2.4.1             Reporting procedures                                                                                           25
      4.2.4.2             Reporting Deadlines                                                                                            25
      4.2.4.3             Reporting and payment overview                                                                                 26
   4.2.5 Dealing with missed deadlines during the progress reporting procedure ...................... 28
   4.2.6 Waterways Project Closure............................................................................................. 28
      4.2.6.1 Final Report                                                                                                               28
      4.2.6.2 Document storage                                                                                                           28
 5 FINANCIAL MANAGEMENT                                                                                  29
5.1. The Waterways Budget ...............................................................................29
   5.1.1 WF overall Project Budget ............................................................................................... 29
   5.1.2 Detailed WF Budget ......................................................................................................... 29
   5.1.3 Eligibility criteria by budget lines .................................................................................... 30
      5.1.3.1         Staff costs                                                                                                        30
      5.1.3.2         Administration                                                                                                     31
      5.1.3.3         Travel and accommodation                                                                                           31
      5.1.3.4         External experts & services                                                                                        31
      5.1.3.5         Equipment                                                                                                          32
5.2 Financial procedures .....................................................................................33
   5.2.1 General Eligibility Requirements ..................................................................................... 33
      5.2.1.2 Eligibility & Ineligibility Rules                                                                                          33
      5.2.1.3 Eligibility Period                                                                                                         34
   5.2.2 Country-specific Eligibility Requirements ........................................................................ 34
   5.2.3 Budget Flexibility............................................................................................................. 34
      5.2.3.1             EUR 20 000 /10 % flexibility rule                                                                              34
      5.2.3.2             20 % budget reallocation                                                                                       35
   5.2.4 Budget Monitoring ........................................................................................................... 35
   5.2.5. Financial reporting ......................................................................................................... 35
      5.2.5.1 Progress Report                                                                                                            36
      5.2.5.2 Reimbursement of Project Partners                                                                                          36
   5.2.6 Accounting for project expenditures................................................................................ 37
      5.2.6.1 Exchange rates                                                                                                             37
      5.2.6.2 Documentation requirements                                                                                                 37
   5.2.7 Risk analysis.................................................................................................................... 37
5.3 Irregularities ................................................................................................38
   5.3.1 Decommitment of the project .......................................................................................... 38
      5.3.1.1 General principles                                                                                                         38
      5.3.1.2 Regulatory Background                                                                                                      39
   5.3.2 Management of irregularities .......................................................................................... 39
      5.3.2.1         Regulatory background                                                                                              39
      5.3.2.2         Detection of irregularities                                                                                        39
      5.3.2.3         Recovery of funds from running operations                                                                          40
      5.4.2.4         Recovery of funds from closed operations                                                                           40
 Annexes                                                                                   41
1. Project Partners National Contact Points (NCPs) ........................................42
2. EU Regulatory Framework ..........................................................................45
3. Simplified Internal Reporting Template ......................................................47
4. First Level Control (FLC) contact points and requirements .........................49
5. INTERREG IVC Partner Control Confirmation ..............................................57
 Glossary                                                                                                                               58




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Introduction



Why do we need guidelines?


Under the lead of the Dutch Recreational Waterways Foundation “Stiching
Recreatietoervaart Nederland” (hereafter referred to as “SRN” or “Lead Partner”)
establishing a cooperation in between 17 European partners, the WF-Waterways Forward
INTERREG IVC Project was officially launched on 1st January 2010 for an implementation
period of 3 years.

In its role as the project’s Lead Partner, SRN is responsible for the overall coordination,
supervision and management of the Project. To ensure a smooth project start-up,
implementation and closure, it is of great importance that cooperating partners play an
active role in project implementation and agree on the project processes and procedures,
acknowledging what their responsibilities and tasks are during the implementation of the
project.

SRN has therefore developed a comprehensive project management framework and
corresponding procedures described in the present Waterways Financial and
Procedural Handbook (FPH).

The purpose of the FPH is to provide practical guidance on the project’s technical and
financial monitoring and follow-up targeted to all partners in the project. Relevant
programme requirements, reporting forms/templates/models/schedules are explained
and presented. The Handbook is aimed at ensuring proper execution of the project
activities by all partners, in accordance with the project description as presented in the
approved Application Form and at securing legitimate spending of available funds in
accordance with the Subsidy Contract, the Structural Funds regulations and the
INTERREG IVC Programme Manual.

The FPH is tailored to the Waterways Project management and should be used as the
first source of information for management schemes and procedures by partner
organizations involved in the Waterways Project. It is strongly recommended to project
partners to read this Handbook carefully and to use it as reference throughout project
implementation.




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1 INTERREG IVC PROGRAMME
  INFORMATION



1.1 Presenting the INTERREG IVC Programme



1.1.1 Interregional cooperation for the Europe 27

INTERREG IVC Programme is part of the European Territorial Cooperation Objective. It is
financed by the European Regional Development Fund (ERDF) and runs from 2007 to
2013 with a budget of 302 million EUR matched with national co-financing (of a 75% or
85% rate). Additional Norwegian funding (2.6 million EUR) for national projects is
available.

The eligible INTERREG IVC cooperation area covers the entire territory of the EU   with its
27 Member States. In addition, Norway and Switzerland are full members             of the
Programme. Partners from other countries, such as EU aspirant countries (e.g.      Serbia)
can participate at their own costs or with the financial help of EU-member         project
partners.




1.1.2 The INTERREG IVC as a Capitalization Programme:
     exchanging experience at policy level

It aims, by means of interregional cooperation, to improve the effectiveness of
regional development policies and instruments in the areas of innovation,
knowledge economy, environment and risk prevention and to contribute to the economic
modernization and increased competitiveness of Europe by:

   * Enabling local and regional actors across the EU to exchange their experiences
and knowledge;
   * Matching regions less experienced in a certain policy field with more advanced
regions;
   * Ensuring the transfer of good practices into Structural Funds mainstream
programmes.

The Programme’s target group is composed of regional and local public authorities, as
these bodies are responsible for regional and local policies.



1.2 Overview of the INTERREG IVC Programme Bodies




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The information below aims at giving project partners an overview of the management
structure of the INTERREG IVC Programme. Please note that the LEAD PARTNER is the
only member of the partnership being in direct contact with the Programme
Management bodies.
The Programme Management is based on the management structure applicable for a
Structural Funds Programme and is specified by the Operational Programme of INTERREG
IVC. It consists of a number of programme bodies:


1.2.1 Monitoring Committee

The Monitoring Committee (MC) is the central decision-making body of the programme.
The MC steers the programme at a strategic level, ensuring its quality and effective
implementation and approves projects for funding. It is composed of representatives of
the Member States and EC representatives of the programme. The Monitoring Committee
members list is available on the INTERREG IVC web site.


1.2.2 Managing Authority (MA)

The Managing Authority is responsible for management and implementation of the
Programme in accordance with the principle of sound financial management and in line
with EU regulations ruling the ERDF funds.




1.2.3 Certifying Authority (CA)

The role of the Certifying Authority is to certify statement of expenditure and applications
for payment before they are sent to the Commission. It is also responsible for ERDF
payments to the project Lead Partner.




1.2.4 Audit Authority (AA)

The Audit Authority ensures the effective management of the Operational Programme by
controlling audits carried out according to internationally accepted audit standards
throughout the programme period of 2007-2013. The AA conducts the second and the
third level control and has no direct involvement with the project level.




1.2.5 Joint Technical Secretariat (JTS)
The JTS is responsible for the day-to-day management of the INTERREG IVC Programme.
It assists the MC in the implementation of their tasks and responsibilities and receives all
project proposals. The Secretariat ensures that projects are approved, delivered and
monitored in accordance with the agreed criteria by:

        Implementing and following-up decisions made by the MC;
        Facilitating and initiating the overall development of INTERREG IVC projects in a
         proactive way, in close co-operation with the National Contact Points;
        Assisting applicants in the project development process (creation of application
         forms, technical and financial guidance documents for project partners)


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        Assisting Lead Partners during project implementation;
        Implementing the communication and publicity strategy approved by the
         Monitoring Committee.




1.2.6 National Contact Points (NCP)

The INTERREG IVC Contact Points represent the Programme in respective Member States
and serve as national coordination and information desks for the Programme
implementation. NCPs complement the activities of the JTS and may initiate and carry
out other specific interregional activities such as:

        assisting in project generation, application and implementation process
        contributing to information and publicity actions within their respective country
        to serve as a contact point for project applicants and partners at the national level

See Annex 1 for the list of WF Project partners National Contact Points.

1.2.7 Information Points (IPs)

4 regional Information Points are in operation to assist potential applicants with their
proposal, depending on the location of the Lead Partner. IPs support the JTS and NCPs in
delivering information and technical advice to applicants, organizing events for the
benefit of partners and helping the JTS in partner search in their respective area. They
are based in Katowice (Poland), Lille (France), Rostock (Germany) and Valencia (Spain).




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2 REGULATORY FRAMEWORK


2.1 EU Legislation


The relevant EU Regulations and EC policies listed in Annex 2, together with the
INTERREG IVC Operational Programme (OP) and its Programme Manual:

      constitute the legal basis of the Subsidy Contract for the implementation of
       the Project and of the Partnership Agreement signed between project
       partners
    and
     govern the project’s technical and financial implementation, the process of
       progress reports and eligibility of expenditures.

Additionally, mutual obligations specific for the Waterways project are stipulated in the
WF Partnership Agreement and shall apply whenever relevant.


In case of amendment of the above legal documents, the latest version shall apply.

These documents can be downloaded from the INTERREG IVC PROGRAMME website
and/or the EU-portal. The most important manuals and guidelines will be available for
Project Partners on the project’s website as well.




2.2 National Legislation
2.2.1 Country specific legislation

Besides adhering to the aforementioned EU legislation, activities carried out by the
Partners have to be in coherence with National laws. National rules vary from one
Member State to another. Project Partners must be familiar with the national and State
legislation relevant to their activities (Tax and Accounting Laws, Public procurement,
etc.).

NOTE: As a general principle, where national standards are more demanding than
community rules, the first one (stricter rules) shall apply. If these rules are not satisfied,
re-payment may be claimed from the partner.



2.2.2 Public procurement rules


The purchase of goods, equipment and services externally, as well as the order for public
works by public services or public bodies is subject to European procurement rules and
the relevant national and internal rules of the Partner responsible for subcontracting.



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Public procurement rules aim at securing transparent and fair conditions for competition
within the common market. They have to be considered by project partners when it
comes to the implementation of the project or when hiring consultants or external
experts for the project.

Public procurement rules may vary from one country to another. It will be the
responsibility of the First Level Controllers to ensure compliance with the relevant
national legislation. Documents relevant to Public procurement procedures must be
available for financial control and audit purposes.




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3 WATERWAYS FORWARD PROJECT
  OVERVIEW


3.1 Project Summary


3.1.1 Background


The increased multifunctional use of regional inland waterways (recreation and living
along river, canal and lake shores, freight transport) represents a growing opportunity to
boost the economic performance of regions and towns bordering these inland waterways
but can have negative impacts on the quality of the environment (pollution and waste
water problems affecting aquatic ecology, protected natural areas & drinking water
resources). In addition, climate change requires specific policies and approaches to
manage regional waterways to tackle problems linked to periodic surplus and shortage of
water.

Ensuring a genuine improvement of the socio-economic benefits for regions adjacent to
smaller inland waterways while using regional waterways a sustainable way requires an
integrated management embedded in a tailored made governance structure which is
balanced, efficient and that takes into account the requirements of the EU Water
Framework Directive (WDF) on river basin management.

Partners from 11 EU countries realized that they are facing common problems which are
also a challenge for the European Union as a whole, and they decided to commit
themselves to develop common and country specific recommendations to promote a joint
definition of regional policies and governance models for future implementation.




3.1.2 Objectives


The main objective of the project is to improve the management of regional inland
waterways and the regions adjacent to them by promoting an integrated, sustainable and
participatory approach.

The project’s strategic objective is to develop recommendations for improved and state
of the art governance models that are creating a sound basis for more integrated
regional policies to boost the socio-economic development of inland waterways and
adjacent areas in a balanced way, while respecting nature and environment. To reach
this objective, the project has the following sub-objectives:

        improved governance by creating better structures and models to streamline
         national and regional regulations, to organize a more integrated approach
         between the various policy sectors and to have a balanced structure of




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         responsibilities for the management of regional inland waterways resulting in a
         jointly defined best governance model for regional waterways

        creating a balance between strengthening the multifunctional use of regional
         inland waterways and potential negative effects on nature and the environment
         taking into account WFD policies for river basins and the effects of climate change
         on these waterways.




3.1.3 Activities

Focusing on the 2 horizontal themes governance & environment and climate
change, the project activities will be organized in three phases:

        Phase 1: systematic analyses of the experiences in each partner region
         resulting in regional reports
        Phase 2: a) selection of good practices in a so called "Demo Toolbox"; and b)
         intensified knowledge exchange
        Phase 3: policy recommendations and regional action plans.

In phase 1, analysis report resulting in a Demo Toolbox of Good Practices on the 2
horizontal themes will serve as a basis for further specification of the expertise available
to be transferred amongst partner countries and for decision upon research needs.

In phase 2, intensified transfer of knowledge activities will take place supported by extra
research needed on selected items that are crucial for the final policy recommendations
and knowledge transfer visits. A matrix structure for knowledge sharing is to be set up as
to achieve the perfect match between regions with more knowledge in one theme and
regions with less knowledge in the same theme.

In phase 3, the project focuses on knowledge exchange on regional policies using MC
results, supported by an online knowledge exchange.


For a detailed description of the project’s activities please consult the WF Project
Implementation Plan.


3.1.4         Project Results & Outputs

3.1.4.1 Project Results

The WF project will result in raising awareness throughout the EU on the sustainable
development potentials of regional inland waterways and adjacent regions and the
impacts of climate change on these developments at all policy levels. As for the partners,
it raises the need for a clear overview and action plan that needs to be adopted to
provide funding for investment activities.

On a longer term, the project is likely to have an impact on future regional policies in
order that the above development potentials are taken into account. Consequently,
improved governance models ready to be implemented will be set up. Also, relevant EU
Programme promoting sustainable multifunctional use of regional inland waterways is
foreseen




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3.1.4.2. Project outputs

On the WF Project management level, an average of 2 Steering Committee (SC)
meetings will be organized per year.

Communication and information dissemination component of WF project includes outputs
such as:
    14 press releases disseminated
    3 brochures produced and 3000 copies of brochure disseminated
    7 newsletters created and 7000 copies of newsletters disseminated
    2 dissemination events organized and participation in 13 other events
    1 website created
    2 online advisory tool and CD Rom developed
    10 media tools developed
    31 press conferences (project level + regional)
    15 Regional PR actions and exhibitions
    28 articles/publications in press and media
    Estimation of 900 participants in project events
    400 average visits per month on project website


WF Project thematic component which resides in the identification and transfer of good
practices and drawing local / regional development policy recommendations and action
plans for implementation based on these, will produce:

        27 interregional events (seminars, workshops, study visits, etc.) organized by the
         project to exchange experience involving 230 participants
        26 good practices identified;
        26 reports on intensified technology transfer;
        1 Demo Toolbox (good practice guide);
        13 transfer visits (study trips, traditional benchmarks or targeted trainings);
        13 regionalized policy recommendations and funding schemes;
        13 regional governance assessments including recommendations, education and
         training programmes; recommendations for EU and national policies to be
         improved as required to support the regional policies.


3.1.5          Project duration

The WF project starts on 01/01/2010 and lasts until 31/12/ 2012 (36 months).



3.2 Waterways project partnership


3.2.1 Composition

The Waterways partnership includes 17 partners from 11 countries. Partners come from
the EU 27 and from Norway and Serbia. Partners include local and regional governments,
territorial planning and waterways managing authorities as follows:
Lead Partner:          SRN (Netherlands)
PP2:                   South Tipperary County Council (Ireland)
PP3:                   Waterways Ireland (UK)
PP4:                   British Waterways (UK)


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PP5:                        Association Regio Water (Netherlands)
PP6:                        Telemark County Council (Norway)
PP7:                        County Administrative Board of Värmland (Sweden)
PP8:                        Savolinna Regio Federation of Municipalities (Finland)
PP9:                        Central Directorate for Water and Environment (Hungary)
PP10:                       Province of Ferrara (Italy)
PP11:                       Navigli Lombardi s.c.a.r.l. (Italy)
PP12:                       French Waterways (France)
PP13:                       SIRGA (Spain)
PP14:                       PWMC Vode Vojvodine Office for European Affairs (Serbia)
PP15:                       Vidzeme Planning Region (Latvia)
PP16:                       Municipality of Brzeg Dolny (Poland)
PP17:                       Municipality of Dunaújváros (Hungary)


3.2.2 The Partnership Agreement
As to ensure efficient and coordinated implementation of the project between partners to
the WF project, a Partnership Agreement (PA) was signed between all Partners
on [date].
The PA is a legally-binding document clearly defines project responsibilities, liabilities,
management procedures and disputes regarding each partner and within the project as a
whole by laying down the principles of the partnership between organizations involved in
the Waterways Project.



3.2.3 Roles & tasks amongst Partners
The roles and tasks of Project Partners are described in the WF Project Work Plan
including the division of roles amongst partners for the whole Project duration as well as
the details for the operations by periods of 6-months (Jan-June and July-December), the
tasks/activities to be carried out by partners and appointing the responsible partners to
perform those.
The WF Project Work Plan has been elaborated based on the below meeting schedule
table in which all important project events are included:
                      Partner
 Meetings table       no.        Partner        Date        Date          SC   Place           Amount     CP
   Internal
   administrative                                           11-12 Feb
1 KO meeting          P5         VRW            month 2     2010               Delft           6 002,0    CP1

    Launching                                               11-12 March
2   event             LP         SRN            month 3     2010          SC   The Hague       14 000,0   CP2
    2nd
    interregional
3   meeting           P10,P11    Navigli,Ferr   month 9     Sept 2010          Italy           30 004,0   CP3
    3rd
    interregional
4   meeting           P13        SIRGA          month 13    Jan 2011           Spain           15 002,0   CP3
    4th
    interregional
5   meeting           P3         Ww IE          month 21    Sept 2011     SC   Ireland         20 000,0   CP3
    5th
    interregional
6   meeting           P9         VKKI           month 25    Jan 2012           Budapest        17 503,0   CP3
    6th
    interregional                               month 33     Sept 2012
7   meeting           P6         Telemark       (?)         (?)           SC   NO              20 000,0   CP3
    Final
8   Conference        P12        VNF            month 35    Nov 2012           Bxl             30 000,0   CP2




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4 PROJECT MANAGEMENT & TECHNICAL
  COORDINATION


4.1 Project Management structure


              Overview: The overall project management responsibility lies with
              the Project Management Team of the Lead Partner assisted by
              professionals. Each partner has, in addition, set up a Partner
              Level Project Management structure to deal with partner level
              management tasks. Decision-making at strategic (political) level is
              supervised by the Steering Committee. The operative
              implementation of the project is led by the Working Group.




4.1.1 Project Management Team (PMT)

The LP is responsible for overall coordination, supervision and management of the
project and has thus set up a Project Management Team (PMT) composed of a:

        Project Manager (PM)
        Financial manager (FM)
        Communication Manager (CM)


The PMT is responsible for the daily management of the project, ensuring smooth
implementation of the project in line with the approved Application Form and the
provisions of the INTERREG IVC Programme. It is in charge of the submission of the
interim and final progress reports to the Joint Technical Secretariat (JTS). The PMT has
an important role in implementing, monitoring and budgetary control over financial and
administrative procedures of the Waterways Project, including internal and external
communication.

The PMT is coordinated by the Project Manager.


4.1.1.1           Project Manager (PM)

A Project Manager (PM) has been appointed by the Lead Partner. His work will be
supported by an external project manager, provided by the company giving professional
external assistance.

The PM is responsible for the overall coordination and direction of the Waterways project.
The PM is the key contact with the INTERREG IVC JTS.

Regular tasks of the PM include:




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        Coordinating the overall interregional project activities and supporting the
         implementation of those activities
        Day to day administration
        Regular contacts with the JTS, including submission progress reports
        Daily contacts with Partners and members of the Working Group (WG)
        Preparing Steering Committee (SC) and WG meetings and decisions
        Coordinating the organisation of interregional events
        Monitoring the project and the proper implementation according to the approved
         AF and the WF workplan in terms of activities, products and outputs, time
         schedule and financial progress
        Appointing other professional staff as may be necessary for the efficient
         management of the Project
        Drawing up progress reports and managing the progress reporting process;
        Monitoring the proper implementation of the information and publicity measures
         as set out in the approved Project Communications Plan
        Coordinating the Project Partners
        Keeping under control the rights and duties of all partners involved, as described
         in the approved Application Form and Partnership Agreement
        Key contact for all project partners and assisting partners with their
         problems/questions
        Providing appropriate documentation of the project in a separated project room
        Participating on programme events organised by the SEE Programme representing
         the project


Internal Project Manager:                      External Project Manager:

Drs. Nico van Lamsweerde                       External Project Coordinator :
Phone (office): 0031343524757                  Mr Hen Gerritse
Mobile : 0031622210290                         0031 6 5239 5677
Fax: 0031343524758                             Email : hengerritse@grantseurope.eu
Email: nvanlamsweerde@srn.nl
                                               External manager responsible for project
                                               management and finances :
                                               Ms Eszter Héjj
                                               0036-20-344-88-84
                                               Email : hejj.eszter@hbhe.hu

                                               External project assistant :
                                               Ms Borbála Bodzsár
                                               0036-1-319-17-90
                                               Email : bodzsar.borbala@hbhe.hu




4.1.1.2           Financial Manager (FM)

An internal Financial Manager (PM) has been appointed by the Lead Partner who is
responsible for assisting the Project Manager with the overall financial management and
overall financial control of the project. Her work will be supported by an external financial
manager, provided by the company giving professional external assistance.

Regular tasks of the FM include:

        Develop & implement general financial procedures (reporting and book-keeping
         procedures, checklists for compliance with eligibility rules, manuals, guidelines,



                                              16
     Waterways Financial and Procedural Handbook                           v.01. 2010-01-12



              time registration sheets, etc) of the internal control system following Programme
              requirements
             Check partners’ national requirements for certification & procurement (first
              partners contact their first level control bodies upon project approval)
             Regular contact and advice to partner’s financial managers
             Join WG meetings and present financial progress of project implementation,
              report regularly to WG
             Coordinate distribution & transfer of funds to project partners upon receipts of
              funds from the Certifying Authority
             Prepare and co-ordinate bi-annual claims: collect and check partner claims and
              forecasts and put together the financial report
             harmonize project activity progress with financial claims


     Internal Financial Manager:                          External Financial Manager:
     BSc Manon van Meer                                   External manager responsible for
     Phone (office): 0031343524757                        project management and finances :
     Fax: 0031343524758                                   Ms Eszter Héjj
     Email: nvanlamsweerde@srn.nl                         0036-20-344-88-84
                                                          Email : hejj.eszter@hbhe.hu




     4.1.1.3           Communication Manager (CM)

     A Communication Manager (CM) is appointed by Project Partner 4 (British Waterways)
     responsible for Cp2 and is supervised by the PM .The CM is in charge of the overall
     communication tasks and dissemination of project outputs.

     Internal Communication Manager:                       External           Communication
                                                           Manager:
     PP4: British Waterways
     64 Clarendon Road
     WD17 1DA, Watford, UK
     Phone: 00-44-1923-201356
     Mobile: 00-44-7703-316926
     Fax: 00-44 1923 201300
     Contact person: Glenn Millar
     Email: glenn.millar@britishwaterways.co.uk
     Contact person: Christopher Barnett
     Email:Christopher.Barnett@britishwaterways.co.uk
     Web: www.britishwaterways.co.uk

     Further details related to the CMs’ tasks in the Waterways Project Communication Plan.


     4.1.2 Partner Level Project Management


4.1.2.1         Partner Project Managers (PPM)

The Partner Project Manager of each project partner is responsible for providing an efficient
link between their regional activities and the project as a whole. Each partner has appointed
one PPM.



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Waterways Financial and Procedural Handbook                                            v.01. 2010-01-12




The tasks of the PPMs include:

   Daily management of the implementation of the project activities on partner level
   Monitoring progress of the project’s implementation on partner level in line with the
    approved AF and the Waterways Work plan in terms of activities, time and spending
    schedules and coordinating the delivery of project products at a partner level (products,
    outputs and results)
   Fulfilling reporting obligations (both progress and financial) according to national,
    Programme and project-level requirements
   Having partner level reports validated by First Level Control (FLC) following the end of each
    6-month reporting period
   Active participation at interregional project meetings
   In case of any deviation from the originally set up activity or budget frames, immediately
    inform the LP and take steps to overcome the irregularities
   Providing appropriate partner level project documentation in a secured (separated) place


Name and contact details of Waterways PPMs (to be confirmed):


 Partner             Project manager                                                 tel                  mobile
                                              e-mail
                     Nico VAN
 LP - SRN
                     LAMSWEERDE               wf@srn.nl                              0031622210290        0031343524757
 P2 - South
                     Labhaoise                                                       00-35-387-411-
 Tipperary
                     MCKENNA                  labhaoise.mckenna@southtippcoco.ie     0592
 P3 - Ww
 Ireland
                     John MCKEOWN             john.mckeown@waterwaysireland.org
 P4 - British
                                                                                     0044 1923201356      00447703316926
 Waterways
                     Glenn MILLAR             glenn.millar@britishwaterways.co.uk
                     M. H. WELLE
                     DONKER
 P5 - VRW
                     (will be replaced
                     after summer by                                                 0031 (0)15 8200
                     Manita KOOP)             dir.project@waterwegwijzer.nl          200
 P6 - Telemark       Thrond KJELLEVOLD        thrond.kjellevold@t-fk.no
                     Sture
                     HERMANSSON

 P7 - Värmland       (will be replaced
                     after summer by
                     Katarina
                     NORDMARK)                Sture.Hermansson@lansstyrelsen.se
 P8 -                Juha TURTIAINEN          juha.turtiainen@savonlinnaseutu.fi      00358-44-571-
 Savonlinna                                                                          5853
                                                                                      0036-1-
 P9 - VKKI                                                                           2254436; fax:
                     András MAGYARICS         magyarics.andras@vkki.hu               0036-1-2120778       0036-30-2790608
                                                                                     0039
 P10 - Ferrara       Roberto                                                         (0)532/299643
                     RICCI MINGANI            roberto.riccimingani@provincia.fe.it   fax: 0532/299632     328/1507062
 P11 - Navigli
 Lombardi
                     Claudio REPOSSI          claudio.repossi@naviglilombardi.it
 P12 - VNF           Véronique VERGÉS         veronique.verges@vnf.fr
                     Outsorced
                     Contact person:
 P13 - SIRGA
                     Marién DELGADO                                                  0034 91 441 31
                     Martínez                 mdelgado@idcfederacion.org             25



                                                            18
Waterways Financial and Procedural Handbook                                          v.01. 2010-01-12




 P14 -
 Vojvodine
                     Mr. Drazen LOVRIC        drazen.m.lovric@gmail.com             00381-63503489
 P15 -
 Vidzemes LV
                     Ineta PURIŊA             ineta.purina@vidzeme.lv                00371-26382820
                                                                                    0048 071 319 51
 P16 - Brzeg
                                                                                    17 (internal
 Dolny
                     Monika KAPLON            fundusze@brzegdolny.pl                number: 216)
                                                                                     0036/25/412-
 P17 -
                                              sz.ver@pmh.dunanet.hu                 211/357;             0036/20/9289-
 Dunaújváros
                      Szilveszter VÉR                                               0036/25/406-341     749




4.1.2.2           Partner Financial Managers (PFM)

The Partner Financial Manager (PFM) of the project partners is responsible for the eligibility of
their regional activities, and the partner’s financial issues. Each partner appoints one PFM.


The tasks of the PFMs include:

        Keeping under control the project’s spending on partner level and keeping it in line with
         partner budget as it is in the Application Form (AF) and the detailed WF budget;
        Setting up and operating an accurate financial administration system (opening project
         account, keeping separate project accounting, paper-based and electronic financial
         documentation, etc.)
        Fulfilling the requirements of the Waterways internal financial monitoring system:
         reporting monthly to the PMT (listing actual spending of the given month and
         forecasting for the upcoming month) according to the simplified internal reporting
         template provided by the LP (see Annex 3);
        Preparing half-yearly Partner level reports according to the format provided by the JTS
         in due time based on the requirements set up by the First Level Controller (it is highly
         recommended to carefully read the FLC instructions regarding reporting and to get in
         direct contact with the competent person of the FLC to gain an excellent understanding
         of the administrative and eligibility criteria to be met);
        Having the report certified by the First Level Control body in time
        Early reporting to the LP of any changes or deviations in the real spending structure
         compared to that of the AF’s timeline and the detailed WF budget in order to avoid
         over- or substantial underspendings resulting in acute financial deviations or
         irregularities

Name and contact details of Waterways PFMs (to be confirmed):



                  Financial
 Partner                                                                      tel                    mobile
                  manager
                                    e-mail
                  Manon VAN
 LP - SRN
                  MEER              wf@srn.nl
 P2 - South
                  Deirdre
 Tipperary
                  FLANNERY          deirdre.flannery@southtippcoco.ie
                                                                               0044-2866-
 P3 - Ww                                                                      346252; fax:
 Ireland          Caroline                                                    0044-2866-              0044-7984-
                  MCCARROLL         caroline.mccarroll@waterwaysireland.org   346257                 457104




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Waterways Financial and Procedural Handbook                                           v.01. 2010-01-12




 P4 - British
                  Chris
 Waterways
                  BARNETT           Christopher.Barnett@britishwaterways.co.uk
                  M. H. Welle                                                     0031 (0)15 8200
 P5 - VRW
                  DONKER            dir.project@waterwegwijzer.nl                200
 P6 -             Dawn
 Telemark         SYVERTSEN         dawn.syvertsen@t-fk.no

 P7 -
 Värmland         Jurga
                  JOHANSSON         Jurga.Johansson@lansstyrelsen.se
 P8 -              Heli                                                           00358-44-417-
 Savonlinna       JÄRVELÄINEN       heli.jarvelainen@savonlinna.fi               4031
                                                                                  0036-1-
 P9 - VKKI        Ferenc                                                         2254400; fax:        0036-30-
                  SZIGETI           szigeti.ferenc@vkki.hu                       0036-1-2120778      8662821
 P10 -            Emma                                                            0039 (0)532
 Ferrara          BARBONI            emma.barboni@provincia.fe.it                299229626
 P11 -
 Navigli          Rosalia
 Lombardi         RUSSO             rosalia.russo@naviglilombardi.it
                   Benoit
 P12 - VNF
                  DESCHODT           benoit.deschodt@vnf.fr
 P13 - SIRGA      Outsorced
 P14 -
                  Ms. Mirjana       mzivkovic@vodevojvodine.com
 Vojvodine
                  ZIVKOVIC                                                       00381-63332457
 P15 -
 Vidzemes LV
                  Lolita NOVIKA      lolitanovika@inbox.lv
                                                                                  0048 071 319 51
                                                                                 17 (internal
 P16 - Brzeg
                                                                                 number is 135);
 Dolny
                  Ewelina                                                        fax 0048 071
                  HALCZUK            ewelina.halczuk@poczta.fm                   319 56 83
                                                                                  0036/25/412-
 P17 -
                   Szilveszter       sz.ver@pmh.dunanet.hu                       211/357;             0036/20/9289-
 Dunaújváros
                  VÉR                                                            0036/25/406-341     749




4.1.2.3           Partner Communication Managers (PCM)

Each partner appoints a Partner Communication Manager (PCM) responsible for carrying out
partner level communication and dissemination tasks.

PPs appoint a contact person (PCM) within their own structure/administration responsible for
communication activities related to the Project at Partner’s level.

Further details related to the PCMs’ tasks in the Waterways Project Communication Plan.




4.1.3 Project Management Bodies


4.1.3.1 Working Group (WG)


        Composition & Tasks




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Waterways Financial and Procedural Handbook                              v.01. 2010-01-12



The Working Group consists of the members of the PMT, supplemented by the Partner
Project Managers (PPM) representing each partner.

The WG is the overall operative, decision preparatory body of WF technical management,
serving as a basis for the whole implementation of the project. It is responsible for a truly joint
implementation of the WF project in accordance with the approved project Application Form,
the work plan approved by the Steering Committee (SC), and the jointly established Financial
and Procedural Handbook and the Communication Plan also agreed on by the SC.

The specific objective of the WG is to prepare a strong professional and political support and
basis for the implementation of WF and to encourage the SC to support further implementation
of WF results e.g. by using other EU and/or national funding sources.

        Responsibilities of the WG include:

             responsibility for sound and quality implementation of the WF project;
             advising the SC on strategic project decisions and documents, required budget
              modifications, the decisions on the mid term evaluation and the final report.


In its work, the WG is supported by the Project Management Team which prepares, organizes,
takes the minutes, handles follow-up work for its meetings and ensures the information
exchange between SC and Working Group. The WG meets regularly (in average twice a year).


The detailed tasks and operational rules of the WG are listed in its Rules of Procedures that
it approves at its first official meeting.

4.1.3.2        Steering Committee (SC)


        Responsibilities

The SC is the supreme decision-making body of the Waterways Project. It groups decision
makers from Project Partners representing political, decision-making level of the partner
organizations.
The specific objective of the SC is to establish a strong political support and basis for the
implementation of Waterways and to ensure that the results of the project are taken further
e.g. by using other EU and/or national funding sources.


        Composition & Meetings

SC groups one representative per Project partner and is chaired by the LP and is established at
the outset of the project. It meets three times during the implementation of the project.


        Tasks

The SC guides and monitors the implementation of the project, to ensure a sound
implementation in line with the approved Application Form and the Subsidy Contract in terms
of activities, time and financial progress and according to the rules and regulations of the
INTERREG IVC Programme. It takes the necessary steps in case any intervention is needed.

   Approval and monitoring of strategic project documents, objectives and the “Project
    Implementation Work Plan” and its amendments



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Waterways Financial and Procedural Handbook                             v.01. 2010-01-12



   Decision-making at strategic points of the implementation including fundamental changes
    in the project approach/budget
   Oversee and approval of the work of the PMT and of the WG
   Approval of the Project Communication Plan
   Ensures and oversees the project’s mid-term and final evaluations to asses overall project
    direction to date

The detailed tasks and operational rules of the SC are listed in its Rules of Procedures that it
approves at its first official meeting.




4.1.4 Thematic groups

Thematic Groups ensure the implementation of the WF project at an operative/
thematic level.

The core of the interregional knowledge exchange will take place during meetings of the TGs
and through Master Classes (MC). In order to raise the quality and impact of the knowledge
exchange, TGs are composed of partners' experts on the issues at stake. The results of these
working groups’ debates will feed decisions concerning the running of the project on operative
level.

Two (2) thematic groups are set up and composed of (1 or) 2 experts per partner throughout a
series of 10 meetings. TGs tasks involve:

        discussing and agreeing on the methodology for the regional analyses
        assisting LP in compiling the 13 regional analyses into a joint interregional analysis
        drawing conclusions from the knowledge exchanges and the results of the RSP
         meetings
        participation in the preparation of the 2 interregional Master classes (MC)
        drafting policy recommendations, supporting the drafting of the regional action plans
         and governance models; preparing synthesis report on those and on regional debates
         for the purpose of creating a joint action plan and a final governance model



4.2 Project Reporting


4.2.1 General Principles

According to the Subsidy Contract signed between the MA and the Lead Partner, one of the
Lead Partner’s key obligations is regular reporting to the JTS on the progress of the WF
project. Reporting is based on the submission of a joint Progress Report that is fed by the
Partners’ individual reports on the project’s activities carried out and on spending on a 6
monthly basis.

Regular reporting by partners on their respective activities and spending are the basis of the
internal monitoring and assessment of the Waterways Project to ensure that activities are
progressing according to plan and identify areas where corrective action can/should be taken.
Progress Reports monitor also the country/partner level activities within the Project and allow
project partners and the JTS to monitor expenditure and to ensure that regular payments are
made.



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The additional purpose of these documents is to foresee and overcome potential difficulties and
delays in the implementation process.

This chapter explains the general reporting process also applicable to financial reporting;
however, specific rules and procedures governing financial procedures are detailed in section
5.3.5. Though activity and financial reporting require different templates; both are prepared in
the same time for the same reporting period and submitted to the Programme.


4.2.2 WF internal monitoring system

In order to ensure the smooth management of the WF project in line with the Subsidy Contract
and the approved Application Form, an internal electronic (Microsoft Excel based)
monitoring system has been developed and will be operated by the PMT during the whole
project duration. The aim of such an IT based monitoring system is the provision of
continuous, up-to-date information on Project Partners’ progress with their partner level
activities and their related financial status concerning actual spending in the past 2 months
and in the next 2 months.

By receiving this bi-monthly information the following project aims can be fulfilled:
    up-to-date overview on the whole project in terms of progress of activities and related
       spending, helping the PMT to manage any deviations or problems, over- or
       underspendings right in time;
    based on this information easy and fast management of Progress Reporting tasks by
       the end of each 6 month period;
    with the use of the above, having the opportunity to prepare overall project
       modifications in terms of activities, timing or budget if needed.

In order to manage and process the incoming PPs’ inputs uniformly, all PPs are asked to send
their completed internal reports by the 10th of each twice- month. The template to be used
for this internal monthly reporting is included in Annex 3.

Taking into consideration that the collection, checking and processing of these financial data is
a very time consuming and thorough procedure that needs absolute correctness, all PPs are
asked to fill in the internal report providing all necessary amount of detail and in time.


4.2.2 Reporting on partner level


           4.2.3            First Level Control (FLC)


In order to validate the expenditures of Project Partners in each 6-month reporting period, a
partner level report has to be submitted by each Project Partner to their First Level Control
(FLC) body. The partner level report contains adequate information concerning the activities
and financial progress of Partners’ project parts in the given reporting period.

The main aim of the controls is to provide a guarantee for the Managing Authority, the
Certifying Authority and, importantly, to the project itself that costs co-financed under the
INTERREG IVC Programme are accounted for and claimed in accordance with the legal and
financial provisions of the subsidy contract (especially the approved Application Form, the
approval decision of the Monitoring Committee, the INTERREG IVC Programme rules, national
rules and EC regulations). It ensures that problems are spotted and dealt with before they get
too important.


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Waterways Financial and Procedural Handbook                             v.01. 2010-01-12




4.2.3.1 FLCs’ tasks

FLC verifies that the expenditure reported by the project partner in their partner level report
fulfils the following conditions:
      the costs are eligible,
      the conditions of the INTERREG IVC Programme, approved Application Form and
         Subsidy Contract have been observed and followed,
      the invoices and payments are correctly recorded and sufficiently supported,
      the related activities, sub-contracted supplies and services are in progress or have been
         delivered or carried out
      the community rules have been respected especially with regard to information and
         publicity and public procurement.

Please find country-specific requirements and FLC details in Annex 4.

Please note that changes in these systems may occur so please check regularly the INTERREG
IVC website regarding your country specific information.



4.2.3.2 Project Partner Control Confirmations

As mentioned above, the rules and conditions of submission of a partner level report vary from
country to country. Some of the Member States define a concrete deadline for submission, in
other countries such a date is not stated officially and is up to the Project Partner when they
wish to submit the report. However, the later the partner level report is submitted, the later
the Control Confirmation is released. Thus all Project Partners without a compulsory deadline
for submission are asked to prepare and submit their partner level reports to the FLC as soon
as possible after the end of each reporting period, i.e. within 15 days the most.

The preparation of the partner level report requires special and joint efforts by the PPMs and
PFMs. However, the regular and right operation of the internal monitoring system can be a
great help for the fulfillment of this task considering that the necessary documents, data and
information should be available because of having provided them already monthly within the
internal system.

According to previous experiences, the collection of all expected and necessary supporting
documents (as required by the FLC) requires even more effort and is a much more time
consuming task than filling in the report itself. Therefore it is suggested to read the Guidelines
or Manuals provided by the FLC carefully, in order to be prepared for the
acquisition/preparation of all kinds of documentation.

We advise PPs to request a well structured and targeted consultation with their FLC before
submission of their (first) partner level report for control. In the course of such a consultation,
the special requirements, incidental new tasks and other expectations of the FLC can be
identified. In case any problems, deviations or modification needs might occur, these can be
pro-actively discussed with the FLC, so that the evaluation and validation process shall be
smooth and fast.

As a result of the verification process by the FLC, a Project Partner Control Confirmation
will be released for the given project partner in which the FLC confirms the amount of the
reported and justified costs. The Project Partner Control confirmation must be sent to the LP as
to contribute to the compilation of the ensuing joint Progress Report – by 15 days before the
joint Progress Report is due (i.e. by 15 Sept and 15 March respectively).



                                                24
Waterways Financial and Procedural Handbook                             v.01. 2010-01-12




Please find a Project Partner Control Confirmation template (to be completed by the FLC
following each reporting period) in Annex 5.




4.2.4       Progress Reports

As included in the Subsidy Contract, the Lead Partner has to submit regular Progress Reports
in which they report on the implementation of the project in accordance with the approved
Application Form.

The Progress Report must contain the detailed presentation of the activities carried out, the
outputs and results delivered and related spending. Besides, it involves all expenditures
validated by the Partners’ FLCs in the given reporting period.

The language of the Progress Report is English and is done on the base of pre-filled forms (PR
template including list of documents to be annexed) provided by the JTS after the end of each
reporting period.


4.2.4.1 Reporting procedures

        Waterways Project Partners have to submit an internal partner level progress report to
         the Lead Partner twice a year. This means completing a template (the simplified
         version of the project level progress report) that reports in the necessary detail on the
         progress of their partner level operations.
         The internal progress reports have to be sent to the PMT 20 days following the end of
         each reporting period, that is:
            - by 20 July
            - by 20 January
         each year.

        The Lead Partner will report to the JTS within 3 months after the end of each 6
         month-period by submitting a joint Progress Report. The joint Progress Report is
         compiled based on information and data received from the PPs via:
            o the completed internal partner level progress reports
            o the Partner Control Confirmations released by each PPs’ FLCs

        Due to the shortness of available time, Project Partners have 2,5 months to:
            1) prepare their Partner level reports and
            2) have them validated by their respective FLC and
            3) send the Project Partner Control Confirmation to the PMT

        Following the compilation of the Progress Report and collection of each PPs’ Control
         Confirmations the LP has to have the Progress Report verified by its own FLC.


4.2.4.2 Reporting Deadlines

During its implementation, Waterways has to submit biannual progress reports respecting the
following reporting periods and deadlines:

              Progress                Reporting period       Deadline for
               Report                                      submission of the



                                                    25
Waterways Financial and Procedural Handbook                                          v.01. 2010-01-12



                  Nr.                                                     Progress Report
                                                                              to the JTS
                   1.        01.   01.   2010.   –   30.   06.   2010    1st October 2010
                   2.        01.   07.   2010.   –   31.   12.   2010.   1st April 2011.
                   3.        01.   01.   2011.   –   30.   06.   2011.   1st October 2011.
                   4.        01.   07.   2011.   –   31.   12.   2011.   1st April 2012.
                   5.        01.   01.   2012.   –   30.   06.   2012.   1st October 2012.
                   6.        01.   07.   2012.   –   31.   12.   2012.   1st April 2013.
                 final       01.   01.   2010.   –   31.   12.   2012.   1st April 2013.
                report




4.2.4.3 Reporting and payment overview




                                                                 26
Waterways Financial and Procedural Handbook                                                       v.01. 2010-01-12



The full process and deadlines of the complete reporting process of the WF project can
be summarized in the following flow table:


                     Step     Project Partners                                by the 10th of each twice
                      1       Partners twice-monthly internal reports to      month
                              the PMT


                     Step     Project Partners and Lead Partner:              Send to FLC by:
                      2       At the end of each 6-month-period Partners      15th July 2010 (incl.
                              send their Partner level reports to the         preparation costs)
                              appropriate FLC body for approbation as         15th January 2011
                              soon as possible                                15th July 2011
                                                                              15th January 2012
                                                                              15th July 2012
                                                                              15th January 2013

                     Step     Project Partners                                Send to LP by:
                      3       within 20 days after the end of each            20th July 2010
                              reporting period PPs send an internal           20th January 2011
                              partner level progress report (the simplified   20th July 2011
                              version of the Progress Report) to the LP       20th January 2012
                                                                              20th July 2012
                                                                              20th January 2013

                     Step     Lead Partner:
                      4       Lead Partner starts to compile the Progress
                              Report based on information received from
                              the PPs – if necessary, asks for further
                              clarification or data from partners



                     Step     Project Partners and Lead Partner:              Send to LP By:
                      5       Partners send the original of their Project     15th September 2010
                              Partner Control Confirmation released by        15th March 2011
                              their FLC to the LP                             15th September 2011
                                                                              15th March 2012
                                                                              15th September 2012
                                                                              15th March 2013
                     Step     Lead Partner                                    Send to LP’s FLC by:
                      6       The LP puts together the consolidated           15 September 2010
                              Progress Report and together with PPs’          15 March 2011
                              Control Confirmations submits it to its FLC     15 September 2011
                              body for control                                15 March 2012
                                                                              15 September 2012
                                                                              15 March 2013

                              Lead Partner:                                   Send to JTS by:
                     Step     The LP submits the joint WF Progress            1st October 2010 (incl
                      7       Report to the JTS (electronic and paper         preparation costs)
                              versions)                                       1st April 2011
                                                                              1st October 2011
                                                                              1st April 2012
                                                                              1st October 2012
                                                                              1st April 2013

                     Step     JTS:
                      7*      JTS checks WF Progress Report and asks for
                              further clarifications if needed
                     Step     JTS:
                      8*      JTS approves payment of the INTERREG
                              IVC funding to the LP and authorizes the CA
                              to pay the funds to the LP
                     Step     Lead Partner:
                      9*      LP receives the funds from JTS and
                              immediately delivers payments to Project
                              Partners




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4.2.5 Dealing with missed deadlines during the progress reporting
procedure

The deadline for submission of progress reports is 3 months after the end of each
reporting period.

This deadline must be understood as the latest possible date, meaning that if WF is ready to
submit the joint Progress Report before the date set, it can actually do so.

However, in case a Project Partner does not send its Partner level report Control Confirmation
in time to the LP, its expenditure will have to be left out of the Progress Report, meaning that
reimbursement for its costs will either be postponed to the next reporting period or will be lost
definitely.




4.2.6 Waterways Project Closure

4.2.6.1 Final Report

The WF projects ends on 31st December 2012. After finalization of the operation, and in
addition to the Progress Report for the last implementation period, the WF Project submits a
Final Report to the JTS no later than 1st April 2013.

This report will provide an overview of WF activities and achievements. It will also highlight
how interregional cooperation has contributed to obtain the expected results and will include a
detailed description of the measures foreseen in order to ensure their durability.


4.2.6.2 Document storage

The LP must ensure that all partners store documents related to the project in a safe and
orderly manner for a minimum period of 3 years after the payment of the final balance by the
European Commission to the INTERREG IVC Programme for financial control and audit
purposes. This balance will only be transferred in an as yet unspecified period of time after
2015 when the programme implementation is finalized. Other possibly longer statutory
retention periods, as might be stated by national law, remain unaffected.

Partners archive the documents either as originals or as certified copies on commonly used
data media, in compliance with national regulations. Follow-up of the amounts of expenditure
in the context of the project must exist in computerized form as well.




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5 FINANCIAL MANAGEMENT

5.1. The Waterways Budget


5.1.1 WF overall Project Budget


 1.8 Project budget (in EUR) (based on the partner budget described in Section 5)
                                                                                             Amount
                                    ERDF Funding                                                              2 043 171,33 €
                       National Public Co-financing                                                             616 290,00 €
                    Total budget eligible to ERDF                                                             2 659 461,33 €
                                Norwegian Funding                                                                70 375,00 €
                           Norwegian Co-financing                                                                70 375,00 €
                            Total Budget Norway                                                                 140 750,00 €
                         INTERREG IVC BUDGET                                                                  2 800 211,33 €
                                      Other funding                                                              10 000,00 €
                                 TOTAL BUDGET                                                                 2 810 211,33 €


5.1.2 Detailed WF Budget

The Waterways total budget as stated above has been agreed upon by the JTS as set out and
fixed in the WF Application Form approved upon fulfillment of all Conditions set as prerequisite
for the Subsidy Contract. The ERDF rate of co-financing in the Waterways project is 75% or
85% of the total eligible costs varying from country to country as laid down in the INTERREG
IVC Programme Manual. The remaining costs must be covered by match funding by all WF
Partners as stated in the Co-financing Statement of each Partner (partially state co-financed,
partially own contribution).

The INTERREG IVC Programme Application Form provides for a sub-division of the budget into
components and into budget lines:
                  Preparation CP1   CP2        CP3          CP4    CP5           TOTAL
                  activities
                                                                             per budget line
                                        Management     Communication   Exchange        of
                                        and            and             experiences
                                        coordination   dissemination   dedicated to the
                                                                       identification and                     EUR          %
                                                                       analysis of good
                                                                       practices
Staff                            0,00   225 357,83       170 920,00        785 056,25       0,00    0,00    1 181 334,08   42,19
Administration                   0,00     6 400,00           800,00          5 000,00       0,00    0,00       12 200,00    0,44
Travel and
accommodation                8 081,00     43 600,00      155 200,00        250 150,00       0,00    0,00     457 031,00    16,32
External expertise and
services                   21 919,00    242 113,75       343 831,50        541 782,00       0,00    0,00    1 149 646,25   41,06
Equipment                       0,00          0,00             0,00              0,00       0,00    0,00            0,00    0,00
Sub-projects                                                                                0,00    0,00            0,00    0,00
TOTAL        EUR           30 000,00    517 471,58       670 751,50      1 581 988,25       0,00    0,00    2 800 211,33     100
per CP       %                1,07 %      18,48 %          23,95 %           56,50 %                                         100




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The following components are to be implemented by the partnership:

CP0      Project preparation
CP1      Management and coordination
CP2      Communication and dissemination
CP3      Exchange of experience

Costs are reimbursed according to the following budget lines:

   Staff costs
   Administration
   Travel and accommodation
   External experts & services
   Equipment

These budget lines are common to all components.




5.1.3 Eligibility criteria by budget lines


5.1.3.1 Staff costs

In this budget line all expected personnel costs (including salary, personal/individual income
tax, affixes paid by employees and/or employers; related social charges transferred to national
social & tax authorities, etc. according to national legislation) for staff directly employed by the
project partners are to be included. These costs must be calculated on the basis of the actual
salary rates stated in the regular employment contracts and paid to staff members in the given
month. Even if in most cases partner institutions will involve, specific staff members who are
already included in their pay-roll into the project, they may decide to recruit ad-hoc staff as
well who will work exclusively in the implementation of the project. In the first case the
expected involvement is subject to calculation (as a rate, e.g. 50% of the employee’s working
time), in the second case costs will be charged in full to the project. (Should this be in line with
national requirements, if performed by an internal independent auditor audit costs of the
partners’ expenditure shall also be included in this budget line.)

Although the list of expected supporting documents can be different according to the various
national regulations and are to be announced by the relevant National Controllers of each
project partner, there are some basic documents that must serve as supporting
documents for the reimbursement of staff costs:

   Work contracts of the staff members employed by the project partner institution
   Assignment stating the exact position / tasks to be fulfilled by the staff member within the
    project, pre-calculated extent of involvement
   Presentation of the calculation method of the hourly rates of employees working on the
    project
   Time sheets including the total number of working days / working hours in the given month
    and the actual time (number of working hours) spent on the project by the staff member
    (signed both by employee and employer)
   Proofs of payments including bank statements / cash payment proofs in reference to the
    paying out of salaries and related taxes, social charges

Please note that the applied calculation method of hourly rates can be different as well and has
to be clarified/negotiated with the FLCs.


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5.1.3.2 Administration

In this budget line all administration/office costs can be reimbursed that are indispensable for
the successful implementation of the project. Overheads include the following: rental fees,
electricity, heating, water and service charges. Administrative costs as telephone, mailing, fax,
internet, photocopying are also eligible in this budget line.

Administration can be calculated and documented by two methods:

         a) Directly allocated administration costs – justified by received invoices or other
         accountancy documents.
         b) Proportionally allocated administration costs – calculated from the total overhead
         costs of the given institution based on the possible calculation methods provided by the
         National Controllers. These costs must be clearly justified by received total invoices
         attached with the detailed presentation of the applied calculation methods.

In case of proportionally allocated administration the applicable calculation methods
are the following:

         a) Number of staff working for the project / number of total staff of the given institution
         b) Number of working hours worked on the project / number of total working hours
         worked in the institution
         c) Ratio of the surface used by the project (m2) / total surface of the institution.


5.1.3.3 Travel and accommodation

This cost category refers to the travel and accommodation costs and subsistence allowances of
employees of project partner institutions related to their participation in meetings, seminars
and conferences taking place in the program area within the framework of the WF project. As a
general expectation of the program, the most economical way of transport should be used in
each case.

The travel costs of any external expert participating in project activities and to be financed by
the project have to be budgeted under “External expertise”. The same applies to travel and
accommodation costs of institutions acting as associated institutions / observers.

The possible supporting documents for travel & accommodation costs are the following:
      -       Invoice of flight/train/bus tickets
      -       Boarding cards / tickets validated
      -       Invoice issued by accommodation provider
      -       Commission letter including per diems applied by the employer
      -       Travel diaries
      -       Proof of payments of invoices, per diems
      -       Documents describing the content of the event: invitation, registration form,
      confirmation of registration, agenda, list of attendances, minutes of the event, photo
      documentation, etc.



5.1.3.4 External experts & services

External expertise includes costs paid on the basis of contracts or written agreements and
against invoices or requests of reimbursement to external service providers who are sub-



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contracted to carry out certain tasks of the project (e.g. studies, researches and surveys,
translation, coordination, experts for project and financial management and assistance,
technical and financial experts, accountancy or audit costs of the project if sub-contracted and
in line with relevant national requirements).
Public procurement rules must be observed in selecting a company or individual to provide
external expertise. There are no fixed rates or ceilings established by the Program for
budgeting external expertise. In this respect, normal, reasonable market rates resulting from
public procurement procedures and national and EU procurement regulations apply.

Please note again that the travel costs of any external expert participating in project activities
and to be financed by the project have to be budgeted under this budget line. The same
applies to travel & accommodation costs of institutions acting as associated institutions /
observers.

The possible supporting documents for external expertise costs are the following:
- Documentation of the public procurement procedure or the procurement procedure applied
according to
-      the national legislation (Public Procurement Law in force)
-      the thresholds to be considered
-      the special requirements by FLC
-      the value of the procurement.
-      Contract / agreement / order form made with the service provider
-      Invoice
-      Delivery statement / Proof of acceptance
-      Concrete output of the service provided (study prepared, brochure elaborated, etc.) in
       electronic and/or in paper form
-      Proof of payments

5.1.3.5 Equipment

This budget line refers to the purchase of IT equipment – including software – necessary for
successfully running the project. These purchases have to respect public procurement rules.
The most economic type of equipment should be chosen and the equipment features/functions
should be in line with the actual context of use. Where strictly necessary, office equipment is
considered as eligible expenditure and should also be charged to this budget line.

In the Application Form and accordingly in the Subsidy Contract, the description of the
equipment, the responsible partner, the quantity and the related costs are indicated.
Therefore, during implementation, purchase of any equipment not explicitly mentioned in the
above documents must be agreed on with the LP before purchase, clearly justified and
explained in the relevant progress reports. The purchased equipments must be used
exclusively for the project implementation.

Being depreciable assets, their full cost can only be charged to the project’s budget (i.e. full
purchase price + depreciation) if the total economic life and depreciation period is shorter or
equal to the project duration. Otherwise, only the portion of the equipment’s depreciation
corresponding to the rate of actual use for the purpose of the project may be taken into
account. For this reason, partners are advised to purchase any needed equipment as early
stage as possible and, in any case, well before project closure.

The possible supporting documents for equipment costs are the following:
      -       Documentation of the public procurement procedure or the procurement
      procedure applied according to
      -       the national legislation (Public Procurement Law in force)
      -       the thresholds to be considered
      -       the special requirements by the FLC



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         -        the value of the procurement.
         -        Contract / agreement / order form made with the equipment provider
         -        Invoice
         -        Delivery statement / Proof of acceptance
         -        Concrete output of the service provided (study prepared, brochure elaborated,
                  etc.) in electronic and/or in paper form
         -        Proof of payments



5.2 Financial procedures


5.2.1 General Eligibility Requirements

5.2.1.2 Eligibility & Ineligibility Rules

The following considerations have to be taken into account as regards eligibility requirements:

    a) expenditure already supported by other EU or other national/regional
       subsidies

If a budget item is already co-financed by another EU-funding source, or fully supported
by another national or regional subsidy, it is not eligible in the context of the WF project,
as it would mean double-financing. In the case of partial subsidy by national or regional
sources, the cost can be considered as eligible only if the national or regional subsidy does not
exceed the national co-financing share for that expenditure (25% for partners from France and
Spain and 15% for all other partners). In such a case the national or regional funding
institution should also be notified to ensure compatibility.

    b) VAT

VAT does not constitute eligible expenditure unless it is genuinely and definitively borne
by the partner. VAT which is recoverable by whatever means cannot be considered as eligible
even if it is not actually recovered by the partner. In other words, VAT can only be accounted if
it is borne by the given partner and they cannot and do not recover it.

    c) Financial charges

Charges for interregional financial transactions are eligible costs. If the implementation
of the project requires a separate account to be opened, the bank charges for opening and
administering the account are eligible as well. Interest on debt, fines, financial penalties,
expenditure on legal disputes and foreign exchange losses are not eligible in WF.

    d) In-kind contributions

Contributions in-kind (e.g. voluntary unpaid work) are not eligible in the INTERREG IVC
Programme. Staff costs for personnel working in one of the partners institutions on the basis of
an employment contract and receiving a regular salary do not count as in-kind contribution but
as a cash contribution, since staff costs are actually paid by the partner institution.

    e) Revenue

Should WF generate any revenues during its implementation (for example through services
offered or conference participation fees), these must be deducted from eligible costs in full or



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on a pro-rata basis depending on whether it was generated entirely or only partly by the
project. The final amount of ERDF funding will be calculated on the basis of the total cost after
deduction of any revenue.

5.2.1.3 Eligibility Period

Expenditures in the framework of the INTERREG IVC Programme are eligible as follows:

a)     Preparation costs are only eligible if they relate exclusively to preparation
activities carried out between 1 January 2008 and 31 January 2009, the date of
submission of the project to the JTS and must be paid out before the end of the first reporting
period, i.e. 30th June 2010.

Preparation costs for the whole project cannot exceed 30,000 EUR.

b)      Expenditures related to the project’s implementation are eligible from the
approval letter on the project by the Monitoring Committee, i.e. from 11 November 2009
until the end date of the project duration i.e. until 31st December 2012, as specified in the
Subsidy Contract.

All payments have to be made before the end date in order to be eligible (including
payment for the financial control of the last progress report).

c)     Expenditures related to project closure (e.g. preparation of final reports and, where
applicable, related audit costs) are eligible until the deadline for submission of final
report that is set in the Subsidy Contract, i.e. until 1 April 2013.


5.2.2 Country-specific Eligibility Requirements

In all cases, if there is national legislation regarding eligibility of expenditure, project
beneficiaries must follow the national legislation of their country as well. National legislation
applies also whenever stricter than the corresponding EU legislation, and vice versa.

Project Partners are responsible in clarifying which relevant national legislation of their
respective country may apply when implementing the project.




5.2.3 Budget Flexibility

By its nature, any increase of budget of a budget line, work package or partner on one side
leads to a reduction of budget of other budget line(s), work package(s) or partner(s) on the
other side. Since, any budget modification has to be carefully prepared by involving all
partners, in order to avoid any conflict of interest among partners, partners need to inform in
due time the LP Financial Manager on their eventual reallocation or modification needs. LP will
decide – based on consultation with the other concerned partners – whether the request can
be fully or partly accepted.


5.2.3.1           EUR 20 000 /10 % flexibility rule

without prior notification to the JTS, the LP is entitled to deviate from / to exceed the original
amount in the budget line, the work packages budget and/or the budget of partners as stated
in the approved application:



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- if the original amount in the Application Form (at the level of the overall budget of the
project) is lower than EUR 200,000, it can be exceeded by a maximum of EUR 20,000;
- if the original amount in the application form is higher than EUR 200,000, it can be
exceeded by a maximum of 10 %.


5.2.3.2           20 % budget reallocation


If the project needs to deviate from the original budget by more than what is allowed by
the EUR 20 000 /10% flexibility rule, then the Lead Partner should ask for a budget
reallocation.

Only once during the lifetime of a project, the LP is entitled to reallocate amounts between
budget lines, between components and/or between partners. Such reallocation requires an
application to the MA via the JTS. It will enter into force only after approval of the MA.

In the case of a budget reallocation, the shifts allowed to increase components, budget lines
and partners budgets (using the underspending of other budget lines/components/partners)
are of a maximum of 20 % of the total budget of the project, for each change.




5.2.4 Budget Monitoring

The efficient operation of the WF internal monitoring system ensures keeping the project’s
spending under control and within the frame of the originally approved budget. With the help
of such a system the PMT can maintain an effective financial management over the project,
minimalising changes and unavoidable deviations thus avoiding loss of funding on project or
partner level. The Lead Partner will report to the partners about the financial progress of the
Project and inform them if there is a risk of over/under spending on Partner/budget
line/component level, offering also proposals to efficiently handle the given situation.

In order to be able to closely monitor spending on project and partner level and to ensure that
the spending structure corresponds as much as possible to the original allocations, the LP
needs a regular feedback (monthly internal financial report, as described above in section
4.2.2) from the partners on their respective financial status and thus an early warning in case
of deviations or irregularities.

In any unexpected situation (e.g.: changes in the activities, changes in the partnership, etc.)
the PMT works out proposals for solutions based on consultations with the JTS.

Furthermore, following each half yearly progress report the PMT checks the overall budget and
if necessary elaborates proposals for correction. Before the budget modification the PMT has to
inform the partners and prepare the decision to the Steering Committee who will finally decide
on the extent and way of modification.




5.2.5. Financial reporting


The applicable reporting systems and procedures are detailed in section 4.2.4.3 on Reporting
in general. Here only details specifically related to financial procedures are described.



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5.2.5.1 Progress Report

The expenditure paid out by all partners during the reference reporting period is included in
the Progress Report. Only expenditure which has been certified as eligible by the relevant FLC
can be included in the report.

As a general rule, expenditure reported will correspond to payments actually made during the
given reporting period. However, expenditure paid during previous period(s) can be included in
exceptional cases if:

         •       it refers to full expenditure of the previous period(s), if the certification from the
         FLC was received after the monitoring of the previous progress report(s) was
         concluded;
         •       if it refers to specific items of expenditure from previous period(s) for which the
         certification as eligible was pending the resolution of contradictory processes between
         the partner and its controller.

In the Progress Report all certified expenditure will be presented divided:

         a)       per component,
         b)       per budget line,
         c)       per partner.

Specific sections provide detailed information on specific budget lines, such as external
expertise and equipment. The Progress Report also includes a payment request in which the
Lead partner guarantees that the expenditure reported has been incurred by members of the
WF partnership for the purpose of implementing the operation and that it corresponds to the
activities laid down in the approved Application Form.

Even if primarily a Lead Partner responsibility, the JTS will also verify that the expenditure has
been certified by the relevant FLC bodies according to the system adopted in each Member
State. For this purpose, original copies of all partners’ Control Confirmations of expenditures
must be delivered together with each Progress Report.


5.2.5.2 Reimbursement of Project Partners

Timeframes of the reporting & reimbursement procedure:




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The chart above shows that there is a pre-financing schedule of 6-12 months required from
partners, depending on the actual time of payments made and the length of the completion of
the progress reporting process.




5.2.6 Accounting for project expenditures

5.2.6.1 Exchange rates

Financial reporting from the Lead Partner to the Joint Technical Secretariat will be made in
Euros.

As laid down in the WF Partnership Agreement, partners have chosen the following method for
converting expenses to Euros in the case of partners located outside the Euro zone:

The average monthly exchange rate set by the Commission of the last month of the
reporting period is used

Conversion into Euro has to take place at each partner’s level. This method has to remain
unchanged for the entire lifetime of the project. The monthly exchange rates of the
Commission are available at the following website: INFOEURO


5.2.6.2       Documentation requirements

All partners will store all financial information and supporting documents related to the project
funding at least until 31 December 2020 (i.e. a period of three years following the closure of
the Programme for audit purposes. Other possibly longer statutory retention periods, as might
be stated by national law, remain unaffected. This applies also to all information and
supporting documents regarding a grant under the de minimis aid scheme.

5.2.7 Risk analysis

The main risks concerning the execution of the WF project are:
      •       Spending expenditure is not in compliance with conditions and regulations
      (ineligible expenditure), which can occur by any of the partners or / as a result on
      project level
      •       Delays in reporting expenditure to the JTS: incurred expenditure is not
      accounted for in time, because of control confirmations which are not sent in time.
      •       Loss of funds due to payments not requested in time and in full.
      •       Inadequate registration of hours worked (staff costs) and inadequate calculation
      of corresponding fees (not based on real salary costs).

Causes of these risks are many, amongst others lack of knowledge of applicable rules, unclear
responsibilities, administrative barriers.

Risks and Control Measures:

 Risk                                         Control measures
 Ineligible expenditure                       -     Checklists for approval of expenditure
                                              -     Financial regulations provided by the
                                                    JTS in the Programme Manual and
                                                    financial guidelines provided by the



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                                                      First Level Control Authorities on
                                                      national level
                                                -     WF Project Financial & Procedural
                                                      Handbook explaining and clarifying
                                                      expectations and rules to be followed in
                                                      detail and setting internal rules
                                                -     Monthly simplified reports by the
                                                      Partners sent to the Financial Manager
                                                      to enable her to continuous budget
                                                      monitoring
                                                -     On-site visits by the Financial manager
                                                      for eligibility checks, advice and
                                                      helpdesk to the partners
                                                -     Overview of eligible and ineligible
                                                      expenditure
 Loss of funds due to payments not              -     Strengthening the reporting procedure
 requested in time and in full                        and discipline, prevention, early
                                                      warning by the Financial Manager to
                                                      meet time schedule
                                                -     Regular forecasts of expenditure on
                                                      project and partner level
                                                -     Strict budgetary control by the LP
 Inadequate registration of hours and           -     Audits on each report
 inadequate calculation of corresponding        -     Clear instructions to partners
 fees




5.3 Irregularities


5.3.1 Decommitment of the project

5.3.1.1 General principles

Without undermining the complexity of the management of territorial cooperation projects, the
programming bodies share the idea that minimum standards of financial performance
should be ensured by the operations at the latest when they are halfway through their
implementation and that such performance should gradually improve from this moment until
the finalization date. In any case, the experience from different cooperation programmes
shows that final financial performance by projects quite often does not exceed 90% of the
approved budget.

In order to provide further stimulation of budget absorption, the subsidy contract foresees that
payments not requested in time and in full may be lost. As presented in the Application
Manual, in order to avoid losing funds it is important that:

         •        Approved operations are ready to start implementation quickly after approval
         •        Financial managers monitor these aspects effectively during implementation and
         •        All partners ensure regular, timely and full reporting.

The payment forecast included in the final version of the approved Application Form and laid
down in the subsidy contract will serve as a basis, among other parameters, to measure the
financial performance of approved projects.


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5.3.1.2 Regulatory Background

According to the Structural Funds Regulation, programmes may have funds decommitted by
the European Commission in case the allocations set in the financial tables of the Operational
Programme are not translated into effective requests for payment within the set timeframe.

Should this loss of funds actually take place, the Programme may decide to cover it from
different sources:

         a)       Funds not yet allocated;
         b)       Unspent funds from closed projects;
         c)       Funds from projects showing substantial underspending.

The following paragraphs present the conditions and procedure for the implementation of the
last option. For these cases, it is important to note that the Monitoring Committee may decide
as well to apply this reduction even if the Programme itself has not been decommitted. Such
liberated funds will be then used for financing further projects, thus allowing the possibility of
cooperation to a larger number of regional and local actors.


5.3.2 Management of irregularities

5.3.2.1 Regulatory background

According to Article 2 of the Structural Funds General Regulation, an irregularity means any
infringement of a provision of Community law resulting from an act or omission by an
economic operator which has, or would have, the effect of prejudicing the general budget of
the European Union by charging an unjustified item of expenditure to the general budget.

Overall, the management of irregularities is laid down in Articles 27 to 36 of the Implementing
Regulation on the basis of which it is transferred to the Subsidy contract signed between the
Managing Authority of the Programme and the Lead Partners of approved operations. The
template of the Partnership Agreement also stipulates the obligations for the entire partnership
in this respect.


5.3.2.2 Detection of irregularities

Both during project implementation as well as after project closure it cannot be excluded that
as a result of an on-the-spot check (both for first level and second level control purposes) or
due to the availability of information not previously existing, controllers or auditors consider
that some of the expenditure previously certified, included in closed Progress Reports and
subsequently paid out by the Certifying Authority might be declared finally as non-eligible
according to national or Community rules or according to the INTERREG IVC Programme
requirements.

This correction can also be made under the initiative of the Lead partner or its FLC controller,
regarding the expenditure incurred by other partners if enough evidence is gathered that the
expenditure was not incurred for the purpose of implementing the operation or it does not
correspond to the activities agreed among the partners.

In cases of expenditure unduly paid out to beneficiaries, these funds must be recovered
by the Programme bodies according to one of the following two options:



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         a) For running operations, the amounts must be deducted from the next payment claim
         due;
         b) For closed operations, a recovery procedure towards the Lead Partner must be
         launched.

5.3.2.3 Recovery of funds from running operations

As stated above, where irregularities are detected in running operations, all unduly paid out
funds must be deducted from the next payment claim due or, where applicable, from payment
claims which are still under examination by the Programme bodies.

Depending on how the irregularity has been detected, different requirements must be met:

         a)     In cases where the irregularity has been detected by the first level controller of
         the Lead partner or a partner (e.g., during on-the-spot checks), such controller must
         provide the necessary information to the JTS. Being a judgement on its own previous
         work, irregularity proceedings initiated by a first level controller do not require the
         agreement of the concerned partner(s);
         b)     In cases where the irregularity has been detected by second level auditors, and
         after approval by the relevant national authority, the JTS will provide the necessary
         forms to the Lead partner who shall compile them on behalf of the concerned
         partner(s). The agreement by the relevant national authority rules out any
         disagreement on the audit results by the concerned partner(s);
         c)     In cases where the irregularity has been detected by the Lead partner or its
         controller on the certified expenditure of other partners, the JTS must be notified.

Irrespective the initiation method, the JTS will be in charge of ensuring that information flows
adequately between all involved parties.

5.4.2.4 Recovery of funds from closed operations

For cases in which the operation has already received the last ERDF installment, the Certifying
Authority in close cooperation with the MA shall demand from the Lead Partner repayment of
subsidy in whole or in part.

In case the irregularity refers to a project partner, it will be up to the concerned partner to
repay the Lead Partner any amounts unduly paid in accordance with the agreement existing
between them. The rate of the late interest applied to the amount to be recovered will be
calculated in accordance with Article 102(2) of the General Regulation.




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                                              Annexes




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1. Project Partners National Contact Points (NCPs)

FINLAND

                                                                                                                  Regional Development Unit
    Ministry of                                  petri.haapalainen@t
                                                                          +358          +358          +358         Mikonkatu 4, P.O.Box 32
 Employment and      HAAPALAINEN         Petri           em.fi
                                                                        106064922     405922667     106047027     GOVERNMENT/Helsinki00
  the Economy
                                                                                                                             023
  Association of                                                                                                       Toinen linja 14,
                                                 annukka.makinen@
  Finnish Local                                                        +358 (9) 771                +358 (9) 771        Helsinki00530
                       Mäkinen         Annukka      kuntaliitto.fi                       N/A
  and Regional                                                            2530                        2535
 Authorities; The


FRANCE

 French national
  coordination                                   mjbernard@regionp                                                     Mission Europe
                                        Marie-                             +33           +33           +33
   Interreg IIIC      BERNARD                          aca.fr                                                       27 place Jules Guesde
                                        José                            491575196     603137940     491575505
 South- Conseil                                                                                                         Marseille13481
 Régional PACA
                                                                                                                      Direction Europe
                                                                                                                     Service Coopération
                                                 s.gerbaud@nordpas
Région Nord-Pas                                                            +33                         +33            Transnationale et
                      GERBAUD         Stéphane        decalais.fr                        N/A
   de Calais                                                            328827091                   328827055           Interrégionale
                                                                                                                       151 Bd Hoover
                                                                                                                          Lille59555


HUNGARY

    INTERREG                                      hegyesi@vati.hu                        +36           +36           Gellérthegy út 30-32
                       Hegyesi           Béla                          +36 12243274
 Directorate, VÁTI                                                                    304758573      12243291          Budapest 1016


IRELAND

  BMW Regional           FINN           Gerry    gfinn@bmwassembl         +353          +353          +353               The square
    Assembly                                            y.ie            949862970     876370207     949862973         Ballaghaderreen,
                                                                                                                   Co. RoscommonIreland
  Southern &            BLAIR          Stephen   SBlair@seregassem        +353                                       Southern & Eastern
Eastern Regional                                        bly.ie          51860700                                      Assembly House
   Assembly                                                                                                          31, O'Connell Street
                                                                                                                    IRL- WaterfordIreland




                                                                                       42
Waterways Financial and Procedural Handbook                                                v.01. 2010-01-12



  Department of        O'Keeffe          Paul                                 +353           +353              00 353         EU Policy Section -
    Finance                                       Paul.OKeeffe@finan        16045420       872484527          16318274    INTERREG and North/South
                                                       ce.gov.ie                                                                 Coordination
                                                                                                                               7-9 Merrion Row
                                                                                                                                   Dublin 2




ITALY

                                                                                                                            Piazza di Campitelli, 3
     Regione                                      interregivc@regcal.it      +32 (2)        +32 (4)            +32 (2)
                       Amoruso        Giuseppe                                                                                  RomaRegione
     Calabria                                                               2346262        77325572           2346279
                                                                                                                               Calabria00186


LATVIA

   Ministry of
    Regional                                      julija.jakovleva@rapl                                                          Lacplesa 27
                                                                              +371           +371               +371
  Development        JAKOVLEVA          Julija            m.gov.lv                                                                Riga1011
                                                                            67770416       29373421           67770479
    and Local
  Governments
   Ministry of
    Regional                                      arina.andreicika@ra
                                                                              +371                              +371           Lacplesa iela 27
  Development        ANDREICIKA         Arina          plm.gov.lv                             N/A
                                                                            67770424                          67770479            Riga1011
    and Local
  Governments
     Latvian
  Association of
                                                   zane.duze@lps.lv       +3716750853     +3712655315        +371672122       1, Maza Pils Street
    Local and            Duze           Zane
                                                                               6               3                 41               Riga1050
    Regional
  Governments
     Latvian
  Association of                                                                                                               Maza Pils iela 1
                                                  ilze.ciganska@lps.lv        +371                              +371
    Local and          Ciganska          Ilze                                                 N/A                               RigaLV-1050
                                                                            67508534                          67212241
    Regional
  Governments


POLAND

   Ministry of                                                                                                            Department of INTERREG
                                                  stanislaw.bielanski         +48
    Regional                                                                                                                      Initiative
                       Bielanski      Stanislaw      @mrr.gov.pl          322539008 ext                N/A
 Development of                                                                                                              ul. Mickiewicza 15
                                                                               12
     Poland                                                                                                                  Katowice, 40-951


SPAIN

                                                                                            43
Waterways Financial and Procedural Handbook                                                        v.01. 2010-01-12




                                                                                                                                       DG FONDOS
 MINISTERIO DE                                         MPaya@sgpg.meh.
                                                                                   +34                                +34             COMUNITARIOS
  ECONOMIA Y              Paya           Mariano             es                                       N/A
                                                                                915835553                          915837317       PASEO CASTELLANA 162
   HACIENDA
                                                                                                                                       Madrid 28071
                                                                                                                                       DG FONDOS
 MINISTERIO DE                                        ABurgos@sgpg.meh
                                                                                   +34                                +34             COMUNITARIOS
  ECONOMIA Y             Burgos            Ana               .es                                      N/A
                                                                                915835339                          915837317       PASEO CASTELLANA 162
   HACIENDA
                                                                                                                                       Madrid 28071


SWEDEN

     Swedish
                                                       hakan.ottoson@skl.                                                                Hornsgatan 20
  Association of                                                                                     +46             +46
                       OTTOSON            Håkan                se              +46 84527817                                             Stockholm 11882
 Local Authorities                                                                                705566077        84527050
   and Regions
  Tillväxtverket,
                                                       birgitta.notstam@till                                                               Box 3034
 Swedish Agency                                                                                  +4670604683      +466351323
                        Notstam           Birgitta         vaxtverket.se       +4686819118                                            östersundSE 831 03
for economic and                                                                                      5               0
 regional growth


UNITED KINGDOM

For general information on the programme, please contact the Information Point West in the JTS in Lille. For eligibility questions and queries that cannot be
handled by the Information Point West please contact the persons below:
European Policy
and Programmes
                                                       miranda.abrey@co                                                              Zone 3/A1 Eland House
    Division;
                                                      mmunities.gsi.gov.u    +4402079443                           +44 (0) 20           Bressenden Place
 COMMUNITIES              Abrey          Miranda                                                   N/A
                                                               k                 911                               7944 3809            LondonSW1E 5DU
  AND LOCAL
GOVERNMEME
       NT




                                                                                                    44
Waterways Financial and Procedural Handbook                               v.01. 2010-01-12




2. EU Regulatory Framework


Main sources

The INTERREG IVC Programme is co-financed by the European Union through the European
Regional Development Fund (ERDF). The EU Regulations governing the principles of the
functioning of the ERDF are:

 Council Regulation (EC) No 1083/2006 of 11 July 2006 & corrigenda and Amendment
 2009-284 laying down general provisions on the European Regional Development Fund, the European
 Social Fund and the Cohesion Fund and repealing regulation (EC) No 1260/1999

 Regulation (EC) No 1080/2006 of the European Parliament and of the Council of 5 July 2006
 and Amendment 2009-397 on the European Regional Development Fund and repealing Regulation
 (EC) No 1783/1999

 Commission Regulation (EC) No 1828/2006 of 8 December 2006 and Amendment 2009-
 846 setting out rules for the implementation of Council Regulation (EC) No 1083/2006 laying down
 general provisions on the European Regional Development Fund, the European Social Fund and the
 Cohesion Fund and of Regulation (EC) No 1080/2006 of the European Parliament and of the Council on
 the European Regional Development Fund




Additional relevant Community Regulations and applicable rules


 Commission Regulation (EC) No 1998/2006 of 15 December 2006 on the
 application of Articles 87 and 88 of the Treaty to de minimis aid

 Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 and its
 amendments on the financial regulation applicable to the general budget of the
 European Communities

 Directive 2004/18/EC of the European Parliament and of the Council of 31
 March 2004 on the coordination of procedures for the award of public works contracts,
 public supply contracts and public service contracts, as well as its amendments and
 related implementation provisions at national level

 Community legislation regarding the EC horizontal policies in the fields of
 Competition, Market entry, Environment protection, Equal opportunities between men
 and women and Public procurements


Programme specific rules

 The principles and regulations for projects developed within the Programme are laid
 down in the European Territorial Cooperation INTERREG IVC Operational Programme (EC
 Decision C (2007) 4222 of 11 September 2007).

 Programme-specific guidance laid down in the INTERREG IVC Programme Manual.




                                                 45
Waterways Financial and Procedural Handbook                             v.01. 2010-01-12



Financial Regulations

Below you’ll find a list of financial provisions of the EU legislation governing the project’s
financial management such as eligibility, verification of expenditures, public procurements,
revenue-generation and durability of financial operations:

    Article 7 and 13 Regulation (EC) No 1080/2006
    Article 2(5) and article 52, 53, 54, 55, 56, 57 of Regulation (EC) No 1083/2006
    Article 24 (d) and Article 48 to Article 53 of Regulation (EC) No 1828/2006
    of Regulation (EC) No 1828/2006
    Article 48 (2) Regulation (EC, Euratom) No 1605/2002




                                                46
Waterways Financial and Procedural Handbook                                                                                         v.01. 2010-01-12




3. Simplified Internal Reporting Template

Summary paid worksheet
        Please don't fill in figures, cells and columns will be automatically filled by the inputs of the monthly worksheets!
   Component 1                                          07.2009-12.2009.                                         Paid
                 Specification                Planned                Total Paid    July         August    September October November December
 1 Staff costs                                                                0,00        0,00      0,00        0,00    0,00    0,00      0,00
 2 Administrative costs                                                       0,00        0,00      0,00        0,00    0,00    0,00      0,00
 3 Travel and accommodation                                                   0,00        0,00      0,00        0,00    0,00    0,00      0,00
 4 External expertise and services                                            0,00        0,00      0,00        0,00    0,00    0,00      0,00
 5 Equipment                                                                  0,00        0,00      0,00        0,00    0,00    0,00      0,00
                      Total                                     0,00          0,00         0,00      0,00        0,00    0,00    0,00      0,00




   Component 2                                          07.2009-12.2009.                                          Paid
                 Specification                Planned                Total Paid    July           August   September October November December
 1 Staff costs                                                                0,00        0,00        0,00       0,00    0,00    0,00      0,00
 2 Administrative costs                                                       0,00        0,00        0,00       0,00    0,00    0,00      0,00
 3 Travel and accommodation                                                   0,00        0,00        0,00       0,00    0,00    0,00      0,00
 4 External expertise and services                                            0,00        0,00        0,00       0,00    0,00    0,00      0,00
 5 Equipment                                                                  0,00        0,00        0,00       0,00    0,00    0,00      0,00
                      Total                                     0,00          0,00        0,00        0,00       0,00    0,00    0,00      0,00




   Component 3                                          07.2009-12.2009.                                          Paid
                 Specification                Planned                Total Paid    July           August   September October November December
 1 Staff costs                                                                0,00        0,00        0,00       0,00    0,00    0,00      0,00
 2 Administrative costs                                                       0,00        0,00        0,00       0,00    0,00    0,00      0,00
 3 Travel and accommodation                                                   0,00        0,00        0,00       0,00    0,00    0,00      0,00
 4 External expertise and services                                            0,00        0,00        0,00       0,00    0,00    0,00      0,00
 5 Equipment                                                                  0,00        0,00        0,00       0,00    0,00    0,00      0,00
                      Total                                     0,00          0,00        0,00        0,00       0,00    0,00    0,00      0,00


   GRAND TOTAL                                              0,00           0,00               0         0           0      0             0         0

Summary forecast worksheet
         Please don't fill in figures, cells and columns will be automatically filled by the inputs of the monthly worksheets!
            Component 1                                   07.2009-12.2009.                                       Foreseen
                         Specification              Target       Foreseen    July             August       September October       November December
          1 Staff costs                                                 0,00                                                           0,00     0,00
          2 Administrative costs                                        0,00                                                           0,00     0,00
          3 Travel and accommodation                                    0,00                                                           0,00     0,00
          4 External expertise and services                             0,00                                                           0,00     0,00
          5 Equipment                                                   0,00                                                           0,00     0,00
                              Total                            0        0,00                                                            0,00     0,00




            Component 2                                   07.2009-12.2009.                                       Foreseen
                         Specification              Target       Foreseen    July             August       September October       November December
          1 Staff costs                                                 0,00                                                           0,00     0,00
          2 Administrative costs                                        0,00                                                           0,00     0,00
          3 Travel and accommodation                                    0,00                                                           0,00     0,00
          4 External expertise and services                             0,00                                                           0,00     0,00
          5 Equipment                                                   0,00                                                           0,00     0,00
                              Total                         0,00        0,00                                                            0,00     0,00




            Component 3                                   07.2009-12.2009.                                       Foreseen
                         Specification              Target       Foreseen    July             August       September October       November December
          1 Staff costs                                                 0,00                                                           0,00     0,00
          2 Administrative costs                                        0,00                                                           0,00     0,00
          3 Travel and accommodation                                    0,00                                                           0,00     0,00
          4 External expertise and services                             0,00                                                           0,00     0,00
          5 Equipment                                                   0,00                                                           0,00     0,00
                              Total                         0,00        0,00                                                            0,00     0,00


            GRAND TOTAL                                        0              0           0            0           0           0          0        0




                                                                                          47
Waterways Financial and Procedural Handbook                                                        v.01. 2010-01-12



Monthly worksheet

Project number:
Project acronym:                              WF
Name of partner:
Reporting period:                                                            01/07/09 - 31/12/09
                                                      PAID COSTS - JULY
              Description of activity          Date of Invoice  Date of payment      Total amount charged to the project (EUR)

Component 1
Staff                                                                                                  0,00



Administration                                                                                         0,00



Travel and accommodation                                                                               0,00



External expertise and services                                                                        0,00



Equipment                                                                                              0,00



                                                                                                       0,00


              Description of activity          Date of Invoice   Date of payment     Total amount charged to the project (EUR)

Component 2
Staff                                                                                                  0,00



Administration                                                                                         0,00



Travel and accommodation                                                                               0,00



External expertise and services                                                                        0,00



Equipment                                                                                              0,00



                                                                                                       0,00


              Description of activity          Date of Invoice   Date of payment     Total amount charged to the project (EUR)

Component 3
Staff                                                                                                  0,00



Administration                                                                                         0,00



Travel and accommodation                                                                               0,00



External expertise and services                                                                        0,00



Equipment                                                                                              0,00



                                                                                                       0,00


Please report any serious difficulties or problems that you foresee that can significantly influence your activities and
budget! Please specify the related budget line and amount!




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Waterways Financial and Procedural Handbook                              v.01. 2010-01-12




4. First Level Control (FLC) contact points and requirements


Finland:

Finland has opted for a decentralised control system. The beneficiaries will have to propose an
independent external controller to the following body:

Ministry of Employment and the Economy
P.O. Box 32
00023 Government
Finland
Mr Pekka Järviö
Tel: + 358 10 60 64924
Fax: + 358 10 60 47027
E-mail: pekka.jarvio@tem.fi

This body will authorise the controller proposed by the project partner after having checked
that the controller is sufficiently independent from project activities and finances and qualified
to carry out the control of an INTERREG IVC project. The controller has to be officially
authorised before the first expenditure can be reported and confirmed. A contract will have to
be made between the beneficiary and the controller detailing the cost base for controls. The
costs resulting from the control can be reported as eligible costs in compliance with the
relevant EU-regulations and programme rules. Instructions on certification of first level
controllers can be found from the following internet address:
www.tem.fi/eay/valvonta


France:

France has chosen a decentralised control system. The beneficiaries will have to propose an
independent controller (internal or external) to the following body:

Région Nord-Pas de Calais
Direction Europe
Mr Christophe Uliasz
Hôtel de Région – Centre Rihour- 59555 LILLE CEDEX
Tel : +33 (0)3 28 82 70 77
Fax: + 33 (0)3 28 82 70 55
e-mail: c.uliasz@nordpasdecalais.fr

This body will authorise the controller proposed by the project partner after having checked
that the controller is sufficiently independent from project activities and finances and qualified
to carry out the control of an INTERREG IVC project. Should an external controller be selected,
the project partner will have to abide by the public procurement rules. In that case, the MS
body will propose a terms of reference model to the project partners to facilitate the tender
procedure. The controller has to be officially authorised before the first expenditure can be
reported and confirmed. Both in the case of a public and private controller, a contract will have
to be made between the beneficiary and his controller detailing the cost base for controls. This
contract will be based on the template terms of reference provided by the MS Body.
The costs resulting from the control (staff costs in case of an internal controller, external
expertise costs in case of an external controller) can be reported as eligible costs in compliance
with the relevant EU-regulations and programme rules.




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Hungary:

Hungary will set up a centralized control system. Expenditure of project partners from Hungary
will thus have to be checked and confirmed by the following body:

VÁTI Hungarian Nonprofit Company for Regional Development and Town Planning
Central Control Unit
Gellérthegy u. 30-32.
Hungary – 1016 Budapest

Contact persons:
Ms. Andrea Krämer
Tel.: +36 1 224 3234
e-mail: akramer@vati.hu

Ms. Márta Gordos
Tel: + 36 1 224 32 10
Fax: + 36 1 224 32 91
e-mail: mgordos@vati.hu

The above-mentioned body will perform the first level control free of charge to Hungarian
project partners.


Ireland:

Ireland has chosen a centralised control system. Expenditure of project partners from Ireland
will thus have to be checked and confirmed by one of the following body:

Control Body 1 (Southern & Eastern Region)
Southern & Eastern Regional Assembly
Assembly House,
Michael Buckley
O’Connell Street,
Waterford,
Tel: +353-51-860700
Fax: +353-51-879887
Email mbuckley@seregassembly.ie

Control Body 2 (Border Midland & Western Region)
Border Midland & Western Regional Assembly
Joe Flynn
The Square,
Ballaghaderreen,
Co. Roscommon,
Ireland.
Tel: +353-94-9862970
Fax: +353-94-9862973
Email: jflynn@bmwassembly.ie

Project Partners will be controlled by the Regional Assembly from the region in which they are
located. Project partners will be invoiced by the Regional Assemblies for the actual costs of
carrying out the First Level Control. The cost will be calculated based on a per diem rate based
on the salaries of the two officers, together with appropriate travel and subsistence rates
applying to the Regional Assemblies in Ireland. The costs resulting from the control can be
reported as eligible project costs in compliance with the relevant EU-regulations and



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Waterways Financial and Procedural Handbook                              v.01. 2010-01-12



programme rules. Each applicant is advised to allow for €500 per payment claim and an
additional €750 for one control visit during the lifetime of the project. [For example if a project
has twice yearly payment claims over a three year cycle, the applicant would be advised to
provide for control costs of €3750 (€500 x 2 claims x 3 years +€750)].


Italy:

Italy has chosen a decentralised control system. The beneficiaries will have to submit their
requests for the approbation of an internal or external controller to the following person:

Giuseppe Amoruso
Regione Calabria
Piazza di Campitelli, 3
00186 Roma,
Italy
Tel: +32 (0) 2 2346262
Fax: +32 (2) 2346279
Email: interregivc@regcal.it

Two options are foreseen for selecting the first level controllers:
1. Italian partners having the legal status of public authority/control activities can entrust
internal control offices, provided that the separation of functions with the offices responsible
for implementing the operations is ensured.
2. Bodies governed by public law or public authorities that have not opted for the first option,
can appoint independent bodies having specific requirements in terms of professionalism,
honourability and independence, registered for at least three years, in the Register of
Economist and Accounting Experts or in the Auditors Register as provided for in the Legislative
Decree of 27 January 1991, No88.

The partners will then propose their first level control to the contact person indicated above.
The approval will be done by an ad-hoc Committee. This Committee hosted by the Ministry of
Economic Development will ensure the approbation of the first level controller on the basis of
the duly filled-in checklist “Criteria for Approbation of first level controllers” provided by the
programme. This Committee will officially authorise the controller proposed by the project
partner after having checked that the controller is sufficiently independent from project
activities and finances and qualified to carry out the control of an INTERREG IVC project.
Should an external controller be selected, the project partner will have to abide by the public
procurement rules. The controller has to be officially authorised before the first expenditure
can be reported and confirmed. The costs resulting from the control carried out by an external
controller can be reported as eligible costs in compliance with the relevant EU-regulations and
programme rules. In case an internal controller is appointed to carry out the control, the
related costs cannot be reported as eligible expenditure.

Important: The formal settlement of the ad-hoc Committee for the approval of first
level controllers in Italy has been delayed. Therefore, the submission deadlines of
progress reports for Italian Partners were postponed several times. Partners from
Italy therefore are called to check the actual status of the First Level Control system
and submit their progress reports accordingly!


Latvia:

Latvia has opted for a centralised first level control system. Expenditure of project partners
from Latvia will thus have to be checked and confirmed by the following body:




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Waterways Financial and Procedural Handbook                             v.01. 2010-01-12



State Regional Development Agency
Territorial Cooperation Project Control department
Elizabetes iela 19, Riga, LV 1010 Latvia
Phone: +37167350632,
Fax: +37167079001
E-mail: tspkd@vraa.gov.lv
Web: http://www.vraa.gov.lv/lv/intterreg_1_limene_fin_kontrole/

Contact person:
Mrs. Aija Romanovska
Acting Director of Territorial Cooperation Project Control Department
Phone: +371 6703506393838282882+++=55563
Fax: +371 67079001
E-mail: Aija.Romanovska@vraa.gov.lv

The above-mentioned body will perform the first level control free of charge to Latvian project
partners.

National Responsible Authority:
Ministry of Regional Development and Local Governments
Lacplesa iela 27, Riga, LV 1011 Latvia
Phone: +371 67770424
Fax: + 371 67770479
Web: http://www.raplm.gov.lv/pub/index.php?id=71


Netherlands:

The Netherlands has chosen a decentralized control system. The project partner will have to
propose an independent controller (internal or external), to the following body:

Ministry of Housing, Spatial Planning and the Environment (VROM)
International Affairs Directorate
Unit North West (NW) INTERREG (ipc 670)
Mr F.H.R. Beijersbergen van Henegouwen
Posbus 30940
2500 GX Den Haag
Telephone: +31 70 339 44 39
Telefax: +31 70 339 13 06
E-mail : frank.beijersbergen@minvrom.nl

This body will authorize the controller proposed by the project partner
     if the internal management and control system is considered to be reliable
     if the controller is considered to be sufficiently independent from project activities and
       finances and qualified to carry out the control of an INTERREG IVC project.

The controller has to be officially authorized before the first expenditure can be reported and
confirmed.

The costs resulting from the control (staff costs in case of an internal controller, external
expertise costs in case of an external controller) can be reported as eligible costs in compliance
with the relevant EU-regulations and programme rules.


Norway:



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Waterways Financial and Procedural Handbook                             v.01. 2010-01-12



Norway has opted for a decentralised control system. The beneficiaries will have to propose an
independent controller from a list of public control bodies to be found under this link
http://www.nkrf.no/bedriftsmedlemmer/cms/28 to the following body:

Ministry of Local Government and Regional Development
Department of Regional Development
Att: Jo Egil Aalerud
Post box 8112 Dep, NO-0032 Oslo, Norway
Phone: + 47 22 24 70 41
E-Mail: jo-egil.aalerud@krd.dep.no

This body will authorise the controller proposed by the project partner after having checked
that the controller is sufficiently independent from project activities and finances and qualified
to carry out the control of an INTERREG IVC project.

The controller has to be officially authorised before the first expenditure can be reported and
confirmed.

The costs resulting from the control can be reported as eligible costs in compliance with the
relevant EU-regulations and programme rules.

Poland:

Poland has opted for a mixed system depending on the status of the Polish partners.

1. Project partners from the Marshall Offices, Voivodes, Ministries and Central Offices
If Marshall Offices, Voivodes, Ministries and Central offices are project partners, a
decentralised control system is implemented. In this case, these bodies propose their
independent internal controller, to the following body:

Ministry of Regional Development
Territorial Cooperation Department
Wspolna 2-4
00-926 Warsaw
Contact person:
Marcin Lata
e-mail: (secretariat) dwt@mrr.gov.pl
Tel: +48 22 501 51 05
Fax: +48 22 501 51 56

This body will authorize the internal controller proposed by the project partner if the controller
is considered to be sufficiently independent from project activities and finances and qualified to
carry out the control of an INTERREG IVC project. The controller has to be officially authorized
before the first expenditure can be reported and confirmed. Project partners from the above
mentioned body can also ask to the Implementing Authority for European Programmes to carry
out the first level control. The role of the Implementing Authority for European Programmes is
described below. The control will be free of charge for beneficiaries.

2. Project partners from other organisations
In all other cases, a centralised control system is applied. Expenditure of Polish project
partners will thus have to be checked and confirmed by the following body:

Implementing Authority for European Programmes
Wspolna 2/4, IV Floor
00-926 Warsawa
Tel: +48 22 461 87 39/+48 22 461 86 58



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Waterways Financial and Procedural Handbook                              v.01. 2010-01-12



Fax: +48 22 461 87 22

Contact person:
Ms. Sylwia Tyszko
Tel : + 48 22 461 88 04
Email : sylwia.tyszko@wwpe.gov.pl

If partners mentioned under point 1 do not opt for an independent internal controller, they can
use the above-mentioned body. This Body will perform the first level control free of charge to
Polish project partners.

Further information on how to submit application to the central approbation body is available
under the
following link: http://www.ewt.gov.pl


Spain:

Spain has chosen a decentralized control system. The beneficiaries from Spain will have to
propose an independent controller who is
- either registered in the official register of Auditors or
- from an independent control unit doing controls for other European programmes,

The project partners from Spain will have to propose their controller to the following body:

Ministrerio de Economia y Hacienda
Dirección General de Fondos Comunitarios
Subdirección General de fondos de cohesion y cooperacion territorial europea
P° de la Castellana, 162
Floor 20, Room 2026
28046 Madrid, Spain
Tel : + 34 91 583 55 53
Fax : +34 91 583 73 17

Contact person:
Mr.Mariano Paya
Vocal Asesor
Email : mpaya@sgpg.meh.es

This body will authorize the controller proposed by the project partner after having checked
that the controller is sufficiently independent from project activities and finances and qualified
to carry out the control of an INTERREG IVC project:

The controller has to be officially authorized before the first expenditure can be reported and
confirmed. Once the approved controller has checked and confirmed the reported expenditure,
the signed partner control confirmation has to be validated by the body mentioned above
(Ministerio de Economía y Hacienda). Only partner control confirmations validated by the
Ministry by its signature and stamp can be accepted.

Only in case of an external controller, the costs resulting from the control can be reported as
eligible costs (external expertise) in compliance with the relevant EU-regulations and
programme rules. Internal controllers’ expenses (“Interventores”) are not eligible.


Sweden:



                                                54
Waterways Financial and Procedural Handbook                              v.01. 2010-01-12



Sweden has chosen a centralised control system. Expenditure of project partners from Sweden
will thus have to be checked and confirmed by the following body:

Tillväxtverket
Joint Unit for Regional Structural Fund programmes
Visiting address: Fyrvallavägen 1
SE-831 43 ÖSTERSUND
www.tillvaxtverket.se

Contact:
Tommy Anjevall (manager)
Tillväxtverket
Box 3034
SE-831 03 Östersund
Tel: +46 8 681 96 16
fax: +46 63 51 32 30
e-mail: tommy.anjevall@tillvaxtverket.se

Håkan Flykt (controller)
Tillväxtverket
Box 3034
SE-831 03 Östersund
Tel: +46 8 681 91 66
e-mail: hakan.flykt@tillvaxtverket.se

The above-mentioned body will perform the first level control free of charge to Swedish project
partners.


United Kingdom:

        ENGLAND, SCOTLAND and WALES

The UK has opted for a decentralised control system for England, Scotland and Wales (for
Northern Ireland see below). The beneficiaries will propose an independent controller, who is
then authorised at national level – on the basis of a list of approved professional bodies -
before the first expenditure is reported and certified. The controller can be internal as well as
external as long as s/he is qualified and from a unit independent of the project’s activities and
financial management. The beneficiaries have to propose an independent controller to the
following body:

COMMUNITIES AND LOCAL GOVERNMEMENT
European Policy and Programmes Division
3rd Floor Eland House
Bressenden Place
London
SW1E 5DU
 Contact:
Darren Wilding
First Level Control Approbation Manager
E-mail: darren.wilding@communities.gsi.gov.uk
Tel: 0303 4442710
Fax: 020 7 944 3809

This body will authorize the controller proposed by the project partner after having checked
that the controller is sufficiently independent from project activities and finances and qualified



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Waterways Financial and Procedural Handbook                             v.01. 2010-01-12



to carry out the control of an INTERREG IVC project. All approved first level controllers must
be qualified members of the following professional organizations:
- Institute of Chartered Accountants in England and Wales;
- Institute of Chartered Accountants in Scotland;
- Association of Certified Accountants;
- Chartered Institute of Public Finance and Accountancy;
- Institute of Chartered Accountants in Ireland; and
- any other body of accountants established in the UK and for the time being approved by the
Secretary of State for this section.

The controller has to be officially authorised before the first expenditure can be reported and
confirmed. The control costs will be borne by the beneficiary. They can be reported as eligible
costs in compliance with the relevant EU-regulations and programme rules.

        NORTHERN IRELAND

The UK has opted for a centralised control system for Northern Ireland. In Northern Ireland
the SPECIAL EU PROGRAMMES BODY will carry out first level controls:

Contact:
Helen Clarke
Programme Officer
Special EU Programmes Body
6 Cromac Place
BELFAST
BT7 2JB
Tel: +44 (0) 23 9026 6685
E-mail Helen.clark@seupb.eu

For beneficiaries from Northern Ireland the control will be offered free of charge.




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Waterways Financial and Procedural Handbook                                                v.01. 2010-01-12




5. INTERREG IVC Partner Control Confirmation

Name of the partner:
Name of the project:
Number of the control confirmation:
 [The confirmation has to be accompanied by a financial report indicating the name of the project,
                                                                                            1
project partner, the reporting period, the amount per budget line and component. The confirmation
has to be signed by each project partner controller in the partnership (incl. the Lead Partner
controller for the Lead Partner’s own expenditure) and sent to the Lead Partner for each progress
report. A copy of the partner control confirmations (without annexes) also has to be submitted to the
                             2
JTS via the Lead Partner ]
Based on our examination, we confirm the following:
                                                                                   3
1. For this report the total paid and confirmed expenditure amounts to EUR .
2. The rules listed in the subsidy contract have been observed, including, but not limited to rules governing
    the eligibility of expenditure (Article 56 of Regulation (EC) No 1083/2006, Article 7 of Regulation (EC) No
    1080/2006, Article 48 to 53 of Regulation (EC) No 1828/2006, relevant national and internal regulations
    of the partner and rules laid down in the latest version of the INTERREG IVC programme manual).
3. The costs reported in this report refer to activities paid from the date of approval by the Monitoring
    Committee to the end of the reporting period. Costs reported under the component ‘preparation activities’
    were incurred between 1 January 2007 and the date on which the first version of the application form
    approved by the Monitoring Committee has been submitted. They were paid out by the end date of the
    first reporting period.
4. Receipts and payments are accurately recorded in the project’s accounting system, expenditure in
    another currency other than the euro was correctly converted, assets are properly recorded and amounts
    are correctly reflected in demands for payment. Any revenues generated were deducted from the eligible
    expenditure. The necessary audit trail exists for all activities, providing evidence in the form of contracts,
    invoices and payment records. In case of staff costs, administration costs, the necessary evidence exists
    in a form of timesheets, listings of costs or formula descriptions and cost calculations.
5. Services, supplies and works have been procured on the basis of proper call for tenders in compliance
    with European, national, internal or other relevant rules, sound controls have been exerted over the
    opening of the tenders and all tenders have been fully evaluated before the final decision has been
    made on service provider, supplier or works contractor
6. Progress made has been fully and fairly reflected in the report. There is evidence that the reported
    activities have taken place, delivery of services and goods, and works are in progress or have been
    completed. The expenditure exclusively refers to activities listed in the latest approved version of the
    application form and completed at the latest by the end of the approved finalisation month.
7. The partner has complied with Community rules and policies including publicity, information, equal
    opportunities, protection of environment, state aid, competition and public procurement.
8. The control work has been documented in a control report (incl. a control checklist), which is based on
    the INTERREG IVC template serving as minimum requirements.
I hereby confirm that I / the company is independent from the project’s activities and financial management
and authorized to carry out the control in respect of the control requirements valid in the EU-Member
State/Norway on whose territory the partner is located.

Place,                                        Date,

Name,                                         Signature of the controller,
               4
Official stamp

1
  The confirmation includes the partner’s share of common costs in case the partnership decided to share certain
expenditures.
2
  For partners from countries with a decentralised first level control system with a MS approbation body, the partner
confirmation has to be accompanied for the first progress report by the first level control Approbation Certificate issued
by the MS approbation body.
3
  The partners and the Lead Partners have to make sure that the amount of reported expenditure indicated for the
partner in the progress report and the amounts indicated in the partner control confirmation correspond.
4
  If exists


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Waterways Financial and Procedural Handbook                                              v.01. 2010-01-12




Glossary


        Name               Abbreviation                                    Meaning
Application Form                 AF           Project Plan, based on which ERDF was applied for under the
                                              INTERREG IV C Programme for this specific project.
Subsidy Contract                SCt           Contract signed between Lead Partner and the JTS behalf of
                                              the Managing Authority
Partnership                      PA           Agreement between the Waterways Forward Project
Agreement                                     Partnership.
Lead Partner                     LP           Principal Project Partner, responsible for the implementation
                                              and (financial) management of the project
Project Partner                  PP           Participating Project Partners signing the Partnership
                                              Agreement and responsible for the implementation of their
                                              own project parts
Project Management              PMT           Operative body in the top of the organisation structure of the
Team                                          project responsible for the daily management of the project,
                                              including ensuring smooth implementation of the project
Working Group                   WG            The overall operative, decision preparatory body of the
                                              project, serving as a base for the whole implementation of the
                                              project.
Steering Committee               SC           The supreme decision-making body of the project involving
                                              decision makers of project partners and representing a
                                              political, decision making level.
Project Manager                  PM           Person appointed by the Lead Partner who is responsible for
                                              the overall coordination and direction of the project and is the
                                              key contact with the JTS.
Financial Manager                FM           Person appointed by the Lead Partner who is responsible for
                                              the overall financial coordination and management of the
                                              project.
Partner Project                 PPM           Person appointed by each project partner: responsible for
Managers                                      providing an efficient link between their regional activities and
                                              the project as a whole.
Partner Financial               PFM           Person appointed by each project partner: responsible for the
Managers                                      eligibility for their regional activities and the partner’s financial
                                              issues.
Communication                    CM           Ensures overall dissemination the project results and outputs
Manager                                       an of project publicity
Progress Report                  PR           A half yearly Report submitted to the JTS by the LP on
                                              activities carried out and expenditure incurred.
Joint Technical                 JTS           Responsible body for the day-to-day management of the
Secretariat                                   INTERREG IVC Programme, receives all project
                                              proposals.
First Level Control             FLC           Independent controller set up by each Member State in
                                              compliance with the country specific requirements.
                                              Control Partners Progress Report and expenditures.
Partner level report             PR           A half yearly Report submitted by each Project Partner to their
                                              FLC body on activities carried out and expenditure incurred.




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