Annex 3

Financial Guidelines for Grant Agreements

1.Introduction

The following regulations apply if the Grant Agreement does not contain a different contractual agreement. Articles referred to in the following explanations are those of the Grant Agreement / contract.

For all correspondence and/ or reporting for the contract as well as calls for disbursement, we kindly ask you to refer to the Project number and contract number. You will find it on the front page of the Grant Agreement.

For financial documents related to your Grant Agreement with GIZ we ask you to use the forms given in annex 3 of the contract.

You may, of course, use your letter-head or make up your own calls for disbursement or financial reports, provided that they contain all the information asked for in the forms.

Since we cannot accept faxes or emailed/ scanned calls for disbursement or financial statements, we kindly ask you to always send us original documents.

2.Call for disbursement

How to make up a call for disbursement

Advance payments shall be requested according to article 3.2 of the Grant Agreement.

Please use the Form „Call for disbursement“for this purpose (annex 3c)

Schedule of financial requirements

With the first call for disbursement, we ask you to include the schedule of financial requirements for the entire period of the contract according to article 3.1. We kindly ask you to use the attached format for this purpose (annex 3b).

Special bank account

Please submit evidence of having opened a special bank account for all payments from the GIZ grant before the first disbursement is made (cf. 3.5 and 3.10).

Call for disbursement and financial statements

After the second instalment any further claim for disbursement must be accompanied by a financial statement proving the use of the payment before the foregoing disbursement (cf.3.7 and the following explanations in these guidelines).

Due to the fact that verification and processing of these financial statements may add up to 45 days (cf. art. 3.7), the financial statement together with the claim for disbursements should reach GIZ 45 days before funds are actually needed. We therefore ask you to always hand in financial statements as early as possible in order not to delay the next disbursment.

Funds remaining from the previous instalment shall be debited.

Please inform us of the amount that has been credited in the currency of account once the funds have arrived or at the latest with the next financial statement (cf. 3.10).

3.Financial Statements

General

According to article 3.7 financial statements need to be submitted regularly. Disbursements depend on financial statements being handed in.

In case of cofinancing, the financial statement shall contain a detailed list of all expenditures for the Project including those to be financed by the Recipient and/or third parties.

Only expenditures effected during the contractually agreed period (cf. 1.3) will be accepeted.

How to make up a financial statement

The expenditures shall be categorised chronologically and broken down according to expenditure categories or measures pursuant to the Schedule of Estimated Expenditures (annex 1 to the Grant Agreement).

For making up the financial statement, we kindly ask you to use the model forms provided, i.e. (in order of filling the forms in):

-Breakdown per category

-Totals per category

-inventory and handing over of equipment

-financial statement covering note

Breakdown of expenditures per category – annex 3f

This is the first form you will need when making up a financial statement. Please list all individual expenditures belonging to one cost category and the respective period (as per annex 1 of the Grant Agreement, Schedule of Estimated Expenditures) in this form.

If the Grant Agreement requests that the financial statement shall be accompanied by copies of supporting documents, please number these supporting documents and attach them to the respective breakdown of expenditures.

The totals of these breakdowns are to be transferred to the form “Totals per category”.

Totals per category – annex 3e

Please transfer the totals per expenditure category to this form in order to get the total amount for your financial statement.

Please reduce the total amount by interest earned according to article 3.5.

Inventory (if applicable)

If equipment is financed form the grant, current inventories have to be handed in at the end of each year with the financial statement (cf. 4.4).

All items financed from the GIZ grant whose purchase or manufacturing cost exceeds EUR400.00 must be inventoried.

Handing over of equipment – annex 3g

On completion of the Project, ownership of the items procured or produced for the Project shall be transferred according to article 4.5. The transfer of ownership shall be noted in the financial statement and the relevant documentation shall be submitted.

Financial Statement covering note – annex 3d

This page is the summary of your financial statement, stating the period and amount of the financial statement as well as listing the relevant documents that need to be attached.

It also contains the declaration on cofinancing according to article 1.6 (please insert cofinancing party and amount) and the declaration that expenditures have not been financed from tother subsidies according to article 1.5.

Please also fill in all your details (name, address, bank details, invoice number) on top of the page as well as the amount in the currency of the Grant Agreement.

How to determine the correct exchange rate

If the currency of account is different from the currency of the contract, the exchange rate will be the result of the disbursement in the currency of the contract and the amount credited to your account. Please see article 3.10 for further details.

Audit reports

If according to the Grant Agreement audits have to be carried through, we kindly ask you to hand these in on the dates specified in the contract.

If article 3.12 say so, please make sure, the auditor’s report confirms the application of funds according to the provisions of the grant agreement (cf. 3.12).

4.General

All documents belonging to annex 3 are also available in electronic form of our homepage Please download the documents under following link:

In the interest of faster processing procedures please make sure that you send your financial statements and calls for disbursement clearly separated from other reports. This will enable us to forward these documents immeadiately to the invoice verification section along the fastest route possible.

Never address financial statements, calls for disbursements and invoices to a particular staff member, but always as follows:

DEUTSCHE GESELLSCHAFT FÜR

INTERNATIONALE ZUSAMMENARBEIT

(GIZ) GmbH

Postfach 51 80

65726 Eschborn

Germany

annex 3bschedule of financial requirements

annex 3ccall for disbursement

annex 3dfinancial statement covering note

annex 3etotals per expenditure category

annex 3fbreakdown of expenditures per category

annex 3ghanding over of equipment

en-Grant-3a-GIZ-Financial-Guidelines.docx, 01/20111