Project Steering Group

First Meeting

St. Petersburg, Russia

26November 2013

Title / Minutes from the 1st Meeting of HIV Prevention Project Steering Group
Submitted by / NDPHS Secretariat (Lead Partner)
Summary/Note / This document outlines the main discussion points and decisions made during the 1st meeting of the PSG.
List of Annexes / Annex 1 – List of documents submitted to the meeting
Annex 2 – List of participants

1. Opening of the meeting and welcome

Mr. Marek Maciejowski, Director of the NDPHS Secretariat, opened and chaired the meeting.

The Host,the Regional Public Organization of Social Projects in Sphere of Population’s Well-Being “Stellit”, welcomed the participants.

The Project Partners briefly introduced themselves.

2.Adoption of the agenda

The Meeting adopted the Provisional agenda (submitted as document PSG 1/2/1).

3. Project Steering Group ToR

With the reference to the document PSG 1/3/1, the Chairintroduced Terms of reference for the Project Steering Group.

Ms. OutiKarvonenasked to consider Ms. SirjeVaittinen, which is also employed at the project, as a member of the Project Steering Group, due to the fact that Ms. Outi may not be able to participate in all meetings.

Ms. InessaVyshemirskaya asked for the same privileges for Mrs. Victoria Osipenko.

Dr.Olga Kolpakovanoted that taking into account an increased number of PSG members, a possibility of participation of all PSG members during the next meetings will depend on a budget’s availability.

Ms.EvijaDompalma - Linužaasked to correct her surname.

The Meeting adopted the ToRwith the requested changes included.

4. Project partners’ duties and responsibilities arising from the Grant Contract

4.1Technical

With reference to document PSG 1/4.1/Info 1, the Chair introduced selected main technical requirements as imposed by the Project Grant Contract, Annex II General Conditions.During introduction especially the following issues were highlighted:

Firstly, the Chairemphasized that the responsibility for the project is shared by all Project Partners are required to get acquainted with and follow all requirements imposed on them by the Grant Contract.Further, he recalled that the NDPHS Secretariat is responsible for the overall coordination including the issues related to the management, implementation of the contract from the legal and financial perspectives, while the main responsibility for the substance-related issues falls on the shoulders of the “Stellit.”

Secondly, the Chair drew Project Partners’ attention to the fact that in case any substantial changes regarding the Grant Contract and relating to legal, financial or organizational issues occurred, the Project Partners must inform the NDPHS Secretariat, which, in turn, will report about these changes to the Contracting Authority.

Thirdly, the Chairaccentuated that it is essential to follow the requirements posed by the EU and added that, in case a Project Partnerdoes not follow the Grant Contract requirements, there is a threat of the contract termination with the Project Partner(s) by the Contracting Authority or the Coordinator (the NDPHS Secretariat).

The Project Partners confirmed their understanding of the presented information and requirements.

4.2Financial

With reference to document PSG 1/4.2/Info 1, the Chairintroduced selected main financial requirements as imposed by the Project Grant Contract Special Conditions and Annex II General Conditions. During introduction especially the following issues were highlighted:

The Secretariat suggested that the Project Partners agree to use a centralized budget approach, meaning that the Secretariat would hold a budget and make necessary transfers and payments from its account. This means that the Secretariat would transfer to the Project Partners’ accounts only the pre-payments for (i) salary costs and (ii) costs included in the project budget under the “simplified cost options” scheme. The Chair noted that centralized budget is beneficial to all the parties, as it would require less effort from the Project Partners in running financial matters, as well as it has a potential to reduce the project costs (a cheaper audit/verification of costs), and make the collection of the necessary information for the financial reports much easier. What is more, the Secretariat would be able to control the progress in spending of the project money and to identify at early stages where shifts should be made.

The Chairrecalled the earlier sent information that the first pre-payments will be made to the Project Partners as soon as the bilateral agreements are signed and the required documents submitted by them. Furthermore, he noted the Project Partners are obliged to submit the timesheets and salary costs every 3 months, in case this obligation is not fulfilled, the following pre-payment will be withhold until all the required documents are submitted. He also pointed out that the reporting on the project will be made twice:(1) by producing an interim report after the first 12 months and (2)the final report. Timely submitted reports would ensure getting the second pre-payment and the final balance from the Contracting Authority in time.

Further, the Chairencouraged the Project Partners to collect information needed for financial reports gradually, so that no important issues would be missed/forgottenwhen the time to report to the Contracting Authority comes. He also mentioned that it is essential to make sure that project expenditures fulfill the cost eligibility criteria -- if they do not, they will not be reimbursed and therefore would have to be covered by the given Project Partner.

The Chairalso noted that salaries and other staff-related costs must be in line with own/internal remuneration policies of the given Project Partner. Moreover, if the organization is able to recover certain taxes, they cannot be considered as eligible costs and thus covered by the project. Consequently, as long as it is not possible to recover taxes paid from the salaries, they are considered as eligible costs.

The Chair also pointed out that those benefiting from the EU changed approach regarding simplified cost option should keep in mind provisions stated in Article 14.4.

Thirdly, the Chairencouraged Project Partners’ accountants to pay additional attention to the Article 16 and Article 16.9 C-K, and to follow the stated requirements very closely. Finally, he emphasized that all the supporting documents should be presented in both an original and electronic format. According to the project’s Auditor notification,transfers proving that money left organization should be provided, the bank statements are best proof to that end.

The Project Partners confirmedtheir understanding of the presented information and requirements.

5. Implementation of the Project Work Packages

5.1Introduction and overview

With reference to document PSG 1/5.1/Info 1, the Chairintroduced the template of a proposed bilateral agreement and explained that the purpose to sign such an agreement is to better explain certain responsibilities including but not limited to the issue of co-financing.

The Chair provided the Project Partners with explanation on how to interpret an issue of project costs and co-financing and informed that – in the proposed bilateral agreements (to be discussed in item 5.1) – the approach taken is that the Project Partners would provide their own co-financing to the project by covering project staff salary costs in the amount equivalent to their own co-financing as specified in the Grant Contract budget. He noted that required documents showing the costs should be provided proving that the given organization spentgiven amount of money in accordance with the Grant Contract. Only then the organization will be eligible for the EU co-financing in accordance with the project budget.

The Project Partners confirmed their understanding of the presented information and requirements as well as their agreement to provide their own co-financing to the project by covering project staff salary costs in the amount equivalent to their own co-financing as specified in the Grant Contract budget.

5.2WP 1 Project management

a)Timesheets

With reference to document PSG 1/5.2/Info 1 and PSG 1/5.2/Info 2, the Chair informed the Project Partners that in the sent timesheets the holiday days are included applicable to organizations located in Sweden, therefore each other Project Partners must adjust them to their own countries’ circumstances. The amount of vacations should be equivalent to the percentage of the employment time by the project, and the sick leave will not be taken into account. The Chair also noted that the definition of “normal time” means 8 hours. He encouraged the Project Partners while filling in timesheets to describe briefly what they have actually done and to put the actual amount of time spent on the project during a given month, not just theoretical figures, as the workload will most likely vary from one month to another month. Importantly, however, the total amount of time worked for the project should, preferably, be not less than to total foreseen amount. If it is, the amount of the EU co-financing will be lowered accordingly (unless there is an increase in the salary costs compensating the difference).

The Chair pointed out that the first timesheets should be presented in December, first in an electronic format (for the Secretariat to check), and after the Secretariat confirms they are fine, the signed hard copies should be send to the NDPHS Secretariat by post. Project Partners may choose to mail their timesheets every six months to save on mailing costs.

The Project Partners confirmed their understanding of the presented information and requirements as well as their agreement to provide their timesheets, as required.

b)Financial issues relating to the employment of the project staff

The Chair introduced financial issues relating to the employment of the project staff and, with reference to document PSG 1/5.2/Info 3, informing the Project Partners about the requirements concerning filling out and submission of calculation of daily rate of a project staff cost. He explained that this information can be seen as indicative only considering the currency fluctuations, possible change in salaries and/or taxes, etc. The Secretariat will use these figures to have an approximate idea of the progress in the consumption of project funds for salaries. However, as discussed in agenda item 4.2, it will be the proofs of the employment costs that will be inserted in the financial report for the Contracting Authority.

Mrs. Aleksandra Skonieczna asked about the way the project employment costs should be reported.

The Chairnoted that, as mentioned in agenda item 4.2 the Secretariat needs a document proving that the salaries were paid, it should be statement from the bank with a seal and signature from an organization confirming that that is a copy of original.According to the project’s Auditor notification, the proof needed to verify that money has been paid out to the employed staff of the Project Partners is two-fold. First there are calculations of the monthly payments, the payroll, and second there is a notice from the bank that shows the payment. If submitting a print out from the internet, a Project Partner’s CEO or Chair of the Board should sign and seal it before it can be submitted to the NDPHS Secretariat.

Ms. Olga Kolpakovaasked how the fluctuation of the currency rate would affect payment of the salary.

The Chair pointed out that in certain cases the fluctuation might affect the total amount of paid money, however, that is an issue with which organizations should deal with themselves.

The Project Partners confirmed their understanding of the presented information and requirements as well as their agreement to provide financial documents relating to the employment of the project staff, as required.

c)Financial issues relating to the project budget

With reference to document PSG 1/5.2/Info 4, The Chairmentioned that the requirements concerning prepayment of funds were covered while the previous agenda items were discussed.

The Project Partners confirmed their understanding of the presented information and requirements.

d)Financial and administrative issues relating to the invoicing and the reimbursement of costs

With reference to document PSG 1/5.2/Info 5,the Chairintroduced the template which should be used for expert services invoice. This form should be used then the costs of a certain service/product are foreseen in the budget but they are not a lump sum. It is preferable that the Secretariat would pay such expenses directly from its account, thus a service provider should fill in the mentioned form and send it directly to the Secretariat. In case it is impossible, and the costs were paid by an organization or an individual, the template for the request of reimbursement of cost of services and products (presented in PSG 1/5.2/Info 6) should be used.

The Project Partners confirmed their understanding of the presented information and requirements.

e)Financial and administrative issues relating to the organization of and participation in project events

With reference to document PSG 1/5.2/Info 7 and PSG 1/5.2/Info 8,the Chairintroduced the NDPHS Travel Claims System and the Guidelines for travel claims.He noted that the Project Partners should register in the Account System at the NDPHS website, and then they will be able to use the Travel Claims System, through which it would be possible to submit claims for reimbursement of travel costs which were not pre-paid by the Secretariat, as well as to receive per diems.

The Chair pointed out that the costs pre-paid by the Secretariat include flight/train tickets and accommodation (hotel). If possible and not included in the budget as lump sums, the Secretariat will also pay directly to the service providers for the costs of coffee and lunch breaks and meeting rooms, etc. However, the Secretariat is not able to pre-pay other travel costs, such as trip from home to the airport or from the airport to a meeting venue, etc. Therefore, these costs should be claimed through the NDPHS Travel Claims System to be reimbursed.

The Chair emphasized that it is important that a traveler would collect all the invoices and boarding passes from his/her trip. He stressed, that it is crucial to insert a project number (stated in the bilateral agreement: 2013/313-700) on the 1st page when filling out the travel claim. The costs claimed for reimbursement should be numbered and the invoices proving occurred expenses should be glued to the A4 format paper following the respective number sequence and attached (uploaded) to the claim as a scanned document. After the claim is electronically submitted, the Secretariat will verify it, after the verification procedure is positive, a person would be asked to print out and sign the claim and send it to the Secretariat by post. Only after the hard copy claim is received, the Secretariat will transfer money.

In response to a question about the difference between claims for international trips and domestic trips,the Chairexplained that the claim for domestic trips is designed in a way allowing a person to insert data in accordance with his/her organization’s travel cost reimbursement policy, while the claim template for international travel is based on the European Union’s requirements.

The Chairrequested the Project Partners to fill out the claim forms for the PSG 1 meeting within the coming two weeks.

The Project Partners confirmed their understanding of the presented information and requirements.

5.3WP 2 Dissemination of project results

The Chair accentuated that the dissemination of the project results is an important aspect, as it is directly connected with a project’s visibility for the target groups and all the relevant stakeholders as well as the project’s broader impact.

With reference to document PSG 1/5.3/1, the Chair introduced the main aspects of the Communication plan developed in accordance with the requirements posed in the Grant Contract. The project results dissemination will be conducted both internally (among Project Partners and the NDPHS) and externally (to other stakeholders in the region). He noted that as regards the internal dissemination within the NDPHS, an important target group will be the NDPHS Expert Group on HIV/AIDS and Associated Infections, and the Regional Organization“Stellit”together with National Institute of Health and Welfare will be responsible for ensuring proper dissemination within it.The dissemination will also be performed during the NDPHS CSR and the NDPHS PAC events, as well as through the NDPHS Database and e-Newsletter.

The proposed Communication plan was endorsedfor submission to the Contracting Authority.

5.4WP 3 Project evaluation

The Chair pointed out that one of the requirements of the Contracting Authority is an auditing of the project finances by an external auditor. The Secretariat has come to agreement with PwC, which will audit the project. The audit will be done in steps: (1)the auditor will ask to provide all required documents;(2) the verification in the Secretariat’s premises of the project documents; and, possibly, (3) auditing of project documents in the premises of selected Project Partners. As the auditor will ask questions about money spent by the Project Partners, thus it is strongly advised to properly keep the track of all expenditures the organizations will haveand have in place all documents that may be required.