WATERWAYS FORWARD
Financial and Procedural Handbook
Laying down general procedures
for
Project coordination, Financial management and Internal communication system
1
Document History
Revisions
Version / Status / Date / Changes0.1 / 1st Draft / 2010 Jan 29
0.2 / 1st version / 12 March 2010
0.3
1.0
Contents
Introduction
1INTERREG IVC Programme Information
1.1Presenting the INTERREG IVC Programme
1.1.1Interregional cooperation for the Europe 27
1.1.2A Capitalization Programme: exchanging experience at policy level
1.2Overview of the INTERREG IVC Programme Bodies
1.2.1Monitoring Committee
1.2.2Managing Authority (MA)
1.2.3Certifying Authority (CA)
1.2.4Audit Authority (AA)
1.2.5Joint Technical Secretariat (JTS)
1.2.6National Contact Points (NCP)
1.2.7Information Points (IPs)
2Regulatory Framework
2.1EU Legislation
2.2National Legislation
2.2.1Country specific legislation
2.2.2Public procurement rules
3Waterways Forward Project Overview
3.1Project Summary
3.1.1Background
3.1.2Objectives
3.1.3Activities
3.1.4Project Results & Outputs
3.1.4.1 Project Results
3.1.4.2. Project outputs
3.1.5Project duration
3.2Waterways project partnership
3.2.1Composition
3.2.2The Partnership Agreement
3.2.3Roles & tasks amongst Partners
4Project Management & Technical Coordination
4.1Project Management structure
4.1.1Project Management Team (PMT)
4.1.1.1Project Manager (PM)
4.1.1.2Financial Manager (FM)
4.1.1.3Communication Manager (CM)
4.1.2Partner Level Project Management
4.1.2.1Partner Project Managers (PPM)
4.1.2.2Partner Financial Managers (PFM)
4.1.2.3Partner Communication Managers (PCM)
4.1.3Project Management Bodies
4.1.3.1Working Group (WG)
4.1.3.2Steering Committee (SC)
4.1.4Thematic groups
4.2Project Reporting
4.2.1General Principles
4.2.2WF internal monitoring system
4.2.2Reporting on partner level
4.2.3First Level Control (FLC)
4.2.3.1FLCs’ tasks
4.2.3.2Project Partner Control Confirmations
4.2.4 Progress Reports
4.2.4.1Reporting procedures
4.2.4.2Reporting Deadlines
4.2.4.3Reporting and payment overview
4.2.5 Dealing with missed deadlines during the progress reporting procedure
4.2.6 Waterways Project Closure
4.2.6.1 Final Report
4.2.6.2 Document storage
5FINANCIAL MANAGEMENT
5.1. The Waterways Budget
5.1.1 WF overall Project Budget
5.1.2 Detailed WF Budget
5.1.3 Eligibility criteria by budget lines
5.1.3.1 Staff costs
5.1.3.2 Administration
5.1.3.3 Travel and accommodation
5.1.3.4 External experts & services
5.1.3.5 Equipment
5.2 Financial procedures
5.2.1 General Eligibility Requirements
5.2.1.2 Eligibility & Ineligibility Rules
5.2.1.3 Eligibility Period
5.2.2 Country-specific Eligibility Requirements
5.2.3 Budget Flexibility
5.2.3.1 EUR 20 000 /10 % flexibility rule
5.2.3.2 20 % budget reallocation
5.2.4 Budget Monitoring
5.2.5. Financial reporting
5.2.5.1 Progress Report
5.2.5.2 Reimbursement of Project Partners
5.2.6 Accounting for project expenditures
5.2.6.1 Exchange rates
5.2.6.2 Documentation requirements
5.2.7 Risk analysis
5.3 Irregularities
5.3.1 Decommitment of the project
5.3.1.1 General principles
5.3.1.2 Regulatory Background
5.3.2 Management of irregularities
5.3.2.1 Regulatory background
5.3.2.2 Detection of irregularities
5.3.2.3 Recovery of funds from running operations
5.4.2.4 Recovery of funds from closed operations
Annexes
1. Project Partners National Contact Points (NCPs)
2. EU Regulatory Framework
3. Simplified Internal Reporting Template
4. First Level Control (FLC) contact points and requirements
5. INTERREG IVC Partner Control Confirmation
Glossary
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Waterways Financial and Procedural Handbookv.01. 2010-01-12
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 ForwardINTERREG 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 describedin the presentWaterwaysFinancial and Procedural Handbook (FPH).
The purpose of the FPHis to provide practical guidance on the project’s technical and financial monitoring and follow-up targeted to all partnersin the project. Relevant programme requirements, reporting forms/templates/models/schedules are explained and presented.The Handbookis aimed atensuring 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 IVCProgrammeManual.
TheFPHis tailored to the WaterwaysProject 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 projectimplementation.
1INTERREG IVC Programme Information
1.1Presenting the INTERREG IVC Programme
1.1.1Interregional 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 instrumentsin 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.
1.2Overview of the INTERREG IVC Programme Bodies
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 ofprogramme bodies:
1.2.1Monitoring 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 MemberStatesand EC representatives of the programme. The Monitoring Committee members list is available on the INTERREG IVCweb site.
1.2.2Managing 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.
1.2.3Certifying 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.
1.2.4Audit 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.
1.2.5Joint 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)
- Assisting Lead Partners during project implementation;
- Implementing the communication and publicity strategy approved by the Monitoring Committee.
1.2.6National 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:
- assistingin 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 1for the list of WF Project partners National Contact Points.
1.2.7Information 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 andtechnical 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).
2Regulatory Framework
2.1EU 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 PROGRAMMEwebsite and/or the EU-portal. The most important manuals and guidelines will be available for Project Partners on the project’s website as well.
2.2National Legislation
2.2.1Country 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 MemberState 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 procurementrules
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.
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.
3Waterways Forward Project Overview
3.1Project 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 whileusing 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 countriesrealized 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 objectiveis 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 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 horizontalthemesgovernanceenvironment 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 themeswill 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 matchbetween regions with more knowledge in one theme and regions with less knowledge in the sametheme.
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.
3.1.4Project 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 developmentpotentialsare 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
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);
- 13regionalized 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.
3.1.5Project duration
The WF project starts on 01/01/2010and lasts until31/12/ 2012 (36 months).
3.2Waterways project partnership
3.2.1Composition
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 authoritiesas follows:
Lead Partner: SRN (Netherlands)
PP2: SouthTipperaryCounty Council (Ireland)
PP3: Waterways Ireland (UK)
PP4: British Waterways (UK)
PP5: Association Regio Water (Netherlands)
PP6: TelemarkCounty 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)