Questions and Answers
Eastern Partnership Territorial Cooperation Programmes - Territorial Cooperation Programme Moldova-Ukraine
To ensure equal treatment of applicants, the Contracting Authority cannot give a prior opinion on the eligibility of applicants, affiliated entity(ies), an action or specific activities.
Questions that may be relevant to other applicants, together with the answers, will be published on the Programme web page It is therefore advisable to consult the abovementioned website regularly in order to be informed of the questions and answers published.
Questions gathered during and after the training session held in Chisinau, Moldova (30.01-03.02.2017) are presented in the following table:
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Question / AnswerGeneral Questions
1 / Суточные расходы не должны превышать ставки, установленные GIZ.
Does per-diems rate applied within the project activity not exceed official GIZ rates? / According to art 7.2.4 from S.C.and by way of derogation from Article 14.2 b):
Travel and subsistence costs for staff and other persons taking part in the Action provided they do not exceed those normally borne by the beneficiary(ies) according to its national legal framework or GIZ (applicable only for Ukranian beneficiaries/co-beneficiaries).
2 / Grant amount shall be kept in euro and exchange into national currency at the day of payment? / According to art 15.9 of the G.C.Costs incurred in other currencies than the one used in the Beneficiary(ies)'s accounts shall be converted using the monthly Inforeuro on the date of payment or according to its usual accounting practices if so provided for in the Special Conditions.
In case of public institutions,where the conversion of currency received from the Programme is mandatory,please take into account that exchange rate losses are not eligible costs within EaPTC Programe according to GC art.14.9 e).
3 / Длявсехзакупокприменятьдоговора, составленныепошаблону, предусмотренномуPRAG (
Should we use for contracts compliance, according to samples presented in PRAG? / According to art. 10.1 of the G.C.If the Beneficiary(ies) have to conclude implementation contracts with contractors inorder to carry out the Action, these may only cover a limited portion of the Action andshall respect the contract-award procedures and rules of nationality and origin set out inAnnex IV of the Contract. In Annex IV of the SC are described all Procurement procedures to be made by grant Beneficiaries in the context of European Union external actions.
It has to be mentioned that according to Annex IV
•The tender documents must be drafted in accordance with best international practice
•Partners may use the models published on EC’s website relating to external actions (PraG Chapters 2, 3, 4 and related annexes) as best international practice.
4 / Проведение тендерной процедуры для закупок на сумму от 1000,00евро (вместо 2500,00евро согласно PRAG).
Should we proceed with tender procedure for procurement in amount of 1000,00 euro (instead of 2500,00 euro). / EaPTC Programme follows the rules of EC, in this case it should proceed to procurement for amount of 2.500 euro and bigger, as stated in PRAG conditions.
5 / At the procurement stage the only supplier existing on the Market impose a condition of 100 % advance payment, can the contract be signed in such circumstances? / As general rule, payment conditions are stipulated in the contract. As basic rule the payments can be as pre-financing, interim payments and final payments.
The sound financial management approach does not allowed the use of a 100% advance payment for any kind of procurements. The payment could be made only in case the service acceptance is provided.
6 / Подтверждение конкурентной цены для всех закупок вне зависимости от суммы закупки (скриншот и т.д.).
Should we have confirmation of competitive price for all procurements regardless procurement amount? / According to Annex IV of the G.C.:
Contracts must be awarded in accordance with procurement rules and procedures:
a)ensuring sufficient transparency, fair competition and adequate ex-ante publicity;
b)ensuring equal treatment, proportionality and non-discrimination;
c)avoiding conflicts of interests throughout the entire procurement procedure.
When the equipment and supplies are not purchased through an open tender, it is essential to keep documentation proving what the market rates are at the time of purchase. Please take into account that the prices indicated on web sites have to be printed as they may not be available, or may have changed, when the expenditure is being verified by the auditor or programme bodies.
For very small amounts this requirement does not apply.
7 / Крометого, просимпояснитьотносительно cheking the compilation of the consolidated financial report by auditor.
Согласно AnnexVIItoGrantContract в редакции PRAGversion 2016.0 отсутствуют следующие документы:
- «Listing of specific procedures to be performed for checking the compilation of the consolidated financial report (2С)»;
- «Model report for checking the compilation of the consolidated financial report (3B)».
Отсутствиевышеуказанныхдокументовв Annex VII to Grant Contract свидетельствуетотом, чтоаудиторомнедолжнапроводитсяcheckingthe compilation of the consolidated financial report. Правильно ли мы понимаем ситуацию по данному вопросу?
Учитывая, что данные требования не регламентированы GrantContract, просим предоставить документ, на основании которого указанные требования необходимо применять в рамках программы Украина-Молдова (EaPTC).
We kind request a detailed explanation on “checking the compilation of the consolidated financial report by auditor”.
According to Annex VII to Grant Contract, PRAG version 2016, the following documents are missing:
“Listing of specific procedures to be performed for checking the compilation of the consolidated financial report (2С) »;
- «Model report for checking the compilation of the consolidated financial report (3B) ».
Lack of documents mentioned in Annex VII of Grant Contract can be considered that audit company should not proceed with “checking the compilation of the consolidated financial report”. Didweunderstandcorrectlythesituation?
Taking into consideration that these requirements are not mentioned in Grant Contract , we are kindly asking for official document that specifies all requirements in the frame Moldova - Ukraine (EaPTC) Programme. / According to art.2.1 of the GC, theCoordinator shall collect all the necessary information and draw up consolidated interimand final reports.
These reports shall:
a) cover the Action as a whole, regardless of which part of it is financed by theContracting Authority;
b) consist of a narrative and a financial report drafted using the templates provided in
Annex VI;
c) provide a full account of all aspects of the Action's implementation for the period
covered, including in case of simplified cost options the qualitative and quantitativeinformation needed to demonstrate the fulfilment of the conditions for reimbursement
established in this Contract ;
d) be drafted in the currency and language of this Contract;
e) include any update on the Communication plan as provided by Article 6.2;
f) include any relevant reports, publications, press releases and updates related to the
Action;
Moreover, in annex VII of the SC is presented terms of reference for expenditure verification of the Grant Contract and models of the expenditure verification report.
It is worth reminding that the Applicant/ Beneficiary is responsible for monitoring the correct implementation of the Contract and for verifying and consolidating the informationthat will be provided to the Contracting Authority; therefore, the Applicant/ Beneficiary should also make sure that the conditions for the eligibility of costs are met, through accurate supervision of the co-Beneficiaries and the affiliated entities, and appropriate internal arrangements.
8 / Запрашиваемый документ необходим для корректной имплементации проекта, а также аудиторам для оценки приемлемости расходов.
We are requesting necessary documents for correct project implementation and audit eligible costs assessment. / All documents and information needed for project implementation are detailed within the General and Special Conditions and all annexes to it.
At the same time, all inputs, outputs, objectives and activities described in the application form, logical matrix and budget and its justification should be followed and reported.
Indicative lists of supporting documents are provided in each chapter of the Project Implementing Manual of the EaPTC MD-UA Programme.
As for example:
Indicative list of supporting documents for Travel and Subsistence costs
Invoice from travel agency (or hotel, etc.) including proof of payment
Original transportation tickets ( train, bus)
Meeting or event related documents such as mission reports, agendas, lists of participants, materials, photographs, etc.
Reimbursement sheets in case of payment directly to the relevant personsfor the use of a private car or other means of transportation, including proof of payment
Reimbursement sheet or salary slip for subsistence costs, including proof of payment to the relevant person
Please note that this is an indicative list of documents and the MA reserves the right to ask any additional justification document in case of doubts.
9 / Request for clarification of Art 14.2 of Annex II, General Conditions related to “Eligible direct costs”, present an instruction containing detailed and an exhaustive list of categories of eligible expenses. / A detailed list regarding Cost eligible criteria are described in the GC art. 14.
Cost eligibility criteria
14.1. Eligible costs are actual costs incurred by the Beneficiary(ies) which meet all the
following criteria:
a) they are incurred during the implementation of the Action as specified in Article 2 of
the Special Conditions. In particular:
(i) Costs relating to services and works shall relate to activities performed during
the implementation period. Costs relating to supplies shall relate to deliveryand installation of items during the implementation period. Signature of acontract, placing of an order, or entering into any commitment for expenditurewithin the implementation period for future delivery of services, works orsupplies after expiry of the implementation period do not meet thisrequirement. Cash transfers between the Coordinator and/or the otherBeneficiary(ies) and/or affiliated entity(ies) may not be considered as costsincurred;
(ii) Costs incurred should be paid before the submission of the final reports. They
may be paid afterwards, provided they are listed in the final report together
with the estimated date of payment;
(iii) An exception is made for costs relating to final reports, including expenditure
verification, audit and final evaluation of the Action, which may be incurredafter the implementation period of the Action;
(iv) Procedures to award contracts, as referred to in Article 10, may have beeninitiated and contracts may be concluded by the Beneficiary(ies) before thestart of the implementation period of the Action, provided the provisions ofAnnex IV have been respected.
b) they are indicated in the estimated overall budget for the Action;
c) they are necessary for the implementation of the Action;
d) they are identifiable and verifiable, in particular being recorded in the accounting
records of the Beneficiary(ies) and determined according to the accounting standards
and the usual cost accounting practices applicable to the Beneficiary(ies);
e) they comply with the requirements of applicable tax and social legislation;
f) they are reasonable, justified and comply with the requirements of sound financial
management, in particular regarding economy and efficiency.
10 / Could you please provide us an official interpretation of budget line 8 - “indirect costs” (accepted by the Programme). / According to art. 14.7 of GC, those costs which may not be identified as specific costs directly linked to the implementation of the Action and may not be booked to it directly according to the conditions of eligibility in art. 14.1. However, they are incurred by the Beneficiary(ies) in connection with the eligible direct costs for the Action.
They may not include ineligible costs as referred to in Article 14.9 or costs already
declared under another costs item or heading of the budget of this Contract.
Direct eligible costs v. indirect eligible costs . As regards Action Grants, a distinction is made between direct and indirect eligible costs:
- Direct eligible costs: Direct costs are action specific costs directly linked to the performance of the Action and which can therefore be booked to it directly. Direct costs are identifiable and verifiable costs, for which concrete supporting documents can be submitted as evidence. They are expenses strictly related to the implementation of the Action, and exist only by consequence of its implementation. The eligibility of direct costs is mainly defined in Article 14.1: the listed criteria have to be respected at all times for all costs.
- Indirect eligible costs: these are not identifiable as specific costs directly linked to the performance of the Action. However, the Beneficiaries should be able to justify them using their accounting system as having been incurred in connection with the eligible direct costs for the Action. Indirect Costs may not include any eligible direct costs included in other headings of the Budget. They mainly represent a small proportion of the Beneficiary's overheads. Overheads are all the structural and support costs of an administrative, technical and logistical nature which are cross cutting for the operation of the Beneficiary body's various activities and cannot therefore be booked in full to the Action for which the Contract is awarded because this Action is only one part of the
Beneficiary's activities.
11 / Procurement procedure applicable in the frame of the Programme , what version of Practical Guide for Procurement and Grants for European Union external actions should be used by project Beneficiaries. / EC Regulation No 951/2007 of 9 August 2007 laying down implementing rules for cross-border cooperation programmes within ENPI, art. 23: ‘The procedures and related standard documents and contract templates to be used shall be those included in the Practical Guide to contract procedures for EC external actions with annexes in force at the time of the launching of procurement procedures or calls for proposals’
In order to avoid any further interpretation we strongly recommend for the secondary procurements done by the beneficiaries/co-beneficiaries the use of templates (annexes )in force at the time of the launching of call for proposal of the Moldova – Ukraine Programme (PRAG2014)
12 / What kind of supporting documents should be presented: Original vs Copies? / According to 7.1.3 of the SC, all supporting documents shall be submitted to the Contracting Authority as photocopy in the national language and in English translation (if necessary).
At the same time, according to art. 16.8 of the GC. All the supporting documents shall be available in the original form (for record keeping and available for audit and monitoring visits), including inelectronic form.
The Beneficiaries must maintain information systems and accounts and accounting records, and keep all supporting documents, bothfinancial and technical, relating to the Action.
Records, and accounting and supportingdocuments, must be available in documentary form, whether paper, electronic or anothermedium (e.g. a written record of a meeting is
more reliable than an oral presentation of thematters discussed).
Electronic documents can be accepted onlywhere:
- the documentation was first received or created(e.g. an order form or confirmation) by theBeneficiaries in electronic form; or
- the auditor is satisfied that the Beneficiary usesan electronic archiving system which meetsestablished standards (e.g. a certified systemwhich complies with national law).
13 / Should we scan all documents within the tenders (Procurement)? / According to art. 16.8 of the GC, all the supporting documents shall be available in the original form, including in electronic form, and art. 16.9 b) proof of procurement procedures such as tendering documents, bids from tenderersand evaluation reports;
All paperwork related to procurementundertaken for all work, supply and service
contracts have to be available toverify that all the purchases have been donefollowing the applicable procurement rules.
The Beneficiaries shall keep sufficient andappropriate documentation with regard to the
procedures applied and which justify thedecision on the pre-selection of tenderers (wherean open tender procedure is not used) and theaward decision.
14 / В каком объёме необходимо переводить документы на английском язык?
What are the main documents / main parts of documents that weshould translate in English? / According to art. 7.1.3 of the SC all supporting documents shall be submitted to the Contracting Authority as photocopy in the national language and in English translation (if necessary).The reports need to be presented in the languagein which the Contract was drawn up.
Nevertheless, the intelligibility andtranslation of key parts of relevant documentsshould be envisaged to ensure comprehensiveinternal control and supervision at Commissionheadquarters or coordination level, as the casemay be.The translation should give clear and detailed understanding of the details of the original document.
15 / Могут ли штатные работники, которые участвуют в проекте, быть привлечены как эксперты для реализации робот предусмотренных в бюджетной линии 5 – externalexperts?
Can the staff of the legal person (beneficiary or partners), be hired as external experts specified in the budget line 5? / This is not recommended because the legal person should bring all resources for project implementation, including Human resources. With staff of the legal person should be signed only Labor Contracts, and reported in the budget line 1. Human Resources.
This situation can be easily interpreted as conflict of Interest, and according to art. 4 of the G.C. the Beneficiary(ies) shall take all necessary measures to prevent or end any situation thatcould compromise the impartial and objective performance of this Contract. Such conflictof interests may arise in particular as a result of economic interest, political or nationalaffinity, family or emotional ties, or any other relevant connection or shared interest.
16 / Если со штатным сотрудником договор не составлен, будет ли достаточно приказа с указанном обязанностей и источника финансированием?
If there is no contract with project staff, will be correct to use ORDER with all responsibilities and source of funding? / In case, it is not possible to conclude another working contract with the project team member for the activities to be undertaken within the Project, an Addendum to the existing contract is recommended. The Addendum should clearly specify salary, social changes, timetable, holidays, financing Grant Contract, exact start and end date of the action, rate per month and total sum to be paid during the action, activities/responsibilities to be performed, is not in conflict with national legislation
The ORDER (Ordin) is an additional document to existing HR contract that can be interpreted as Addendum to the existing contract.
17 / В случае если привлечённый по договору эксперт не является субъектом предпринимательской деятельности, по законодательству Украины юридическое лицо – наниматели такого физлица обязан начислить и уплачивать в бюджет Единый социальный взнос на общегосударственный пенсионное страхование по ставке 22% (фактически, как и по трудовому договору)? Возможно ли включать эти начисление в расходы на экспертов и пр. консультантов?
In case the external expert is not subject to entrepreneurship activity, according to Ukrainian legislation, should the employer pay social tax of 22% (de facto as for labor contracts) ? Can we include this tax in the sum mentioned in contract with external expert / consultant? / According to art 14.2 Eligible direct costs of the G.C.: Subject to Article 14.1 and, where relevant, to the provisions of Annex IV beingrespected, the following direct costs of the Beneficiary(ies) shall be eligible: