HERCULE II

Training in the area of the fight against fraud

Grant Programme 2012

Call for Proposals

DEADLINE: Tuesday, 25thSeptember 2012

ELIGIBILITY PERIOD FOR ACTIVITIES:

17December 2012 - 31 August 2013

TABLE OF CONTENTS

1.INTRODUCTION

1.1.European Anti-Fraud Office (OLAF)

1.2.Hercule II Programme - Call for Proposals 2012

2.TYPES OF TRAINING ACTIVITIES SUPPORTED

2.1.Purpose of the Call

2.2.Specific results expected from EU funding

2.3.Objectives of Proposed Activities

3.EVALUATION COMMITTEE

4.ELIGIBILITY AND EXCLUSION CRITERIA

4.1.Eligibility Criteria

4.2.Exclusion Criteria

5.SELECTION CRITERIA

5.1.Financial Capacity

5.2.Technical (Operational) Capacity

6.AWARD CRITERIA

7.EXPECTED RESULTS

8.FINANCIAL CONDITIONS

8.1.Available Budget for 2012

8.2.Financial provisions

8.3.Eligible Expenditure (See guidelines for further details)

8.4.Non-Eligible Costs

9.NOTIFICATION AND GRANT PAYMENT PROCEDURE

9.1.Notification of Award

9.2.Grant payment procedure

10.AMENDMENTS TO THE GRANT AGREEMENT

11.FINAL REPORT

12.GRANT APPLICATION FORMS

13.START AND DURATION OF ACTIVITIES

14.HOW TO SUBMIT AN APPLICATION

15.PUBLICATION AND COMMUNICATION STRATEGY

16.EX-POST PUBLICITY

17.DATA PROTECTION

18.EARLY WARNING SYSTEM AND CENTRAL EXCLUSION DATABASE

19.FURTHER INFORMATION

20.COMPLAINTS TO THE EUROPEAN OMBUDSMAN

21.DOCUMENT CHECKLIST

1.INTRODUCTION

1.1.European Anti-Fraud Office (OLAF)

The mission of the European Anti-Fraud Office (OLAF) is threefold: it protects the financial interests of the European Union by combating fraud, corruption and any other illegal activities; it protects the reputation of the European Institutions by investigating serious misconduct by their staff that could result in disciplinary proceedings; and it supports the European Commission in the development and implementation of fraud prevention and detection policies.

1.2.Hercule II Programme - Call for Proposals 2012

The Hercule II Programme is an EU action programme designed to promote activities for protecting the EU's financial interests in the field of revenues and expenditure for the period 2007-2013. The basic legal act is Decision No 878/2007/EC of the European Parliament and of the Council of 23 July 2007[1].

The Call for Proposals 2012is an expression of OLAF's willingness to support training activities contributing in a preventative and/or operational way to combating fraud and corruption which is or may be detrimental to the financial interests of the European Union,namely the EU's revenue, expenditure and assets.

This Call for Proposals relates to line 24.02.01 of the General Budget of the European Union for 2012, subject to availability of appropriations.

Interested parties are invited to submit applications, through this call for proposals, in accordance with the procedures set out hereafter.

2.TYPES OF TRAINING ACTIVITIESSUPPORTED

Please find below a non-exhaustive list of training activities supported:

-Training in the form of conferences, seminars, colloquia, meetings, symposia, e-learning, round tables and staff exchanges;

-Exchanges of best practices (including on fraud risk assessment).

These activities must relate to a project starting on or after 17December 2012 at the earliest, and finishing on or before 31 August 2013 at the latest.

Only one proposal per applicant will be accepted.

2.1.Purpose of the Call

The measures supported by OLAF through the award of grants are intended to contribute to fighting fraud and corruption detrimental to the European Union's financial interests, including the fight against cigarette smuggling and counterfeiting. These activities should encourage the exchange of experience between MemberStateauthorities and the dissemination of general and operational knowledge in the fields concerned.

A further aim of these activities should be to introduce OLAF to the widest possible audience and thereby improve cooperation at both national and international levels via a better understanding of the relationship between the European Union and national bodies.

Such activities shouldalsohelp to create networks between MemberStates, acceding countries, candidate countries and third countries and thus facilitate the exchange of information, experience and best practices, while respecting the different traditions of the Member States.

2.2.Specific results expected from EU funding

In the context of effective and efficient use of the funds provided, the following results are expected:

  • Enhanced cooperation and exchange of information between the various partners at national, international and EU level;
  • Improved knowledge of OLAF and its working methods in the Member States, acceding countries and candidate countries;
  • Identification of shortcomings in the systems for preventing and combating fraud, with a view to rectifying them;
  • Improvement of the expertise of those involved in the prevention and detection of fraud;
  • Optimal dissemination of the results among a broader public.

2.3.Objectives of Proposed Activities

OLAF is particularly interested in putting forward proposals covering the areas on which its own investigations are focused, such as structural measures, direct expenditure, external aid, customs and agriculture. This can be achieved by:

  • Creating a forum for the exchange of experience, information and best practices between competent national authorities, including exchanges of personnel;
  • Providing opportunities to facilitate, encourage and develop cooperation between the various partners in the fight against fraud, including cigarette smuggling and counterfeiting, and combating corruption;
  • Encouraging joint activities organised by national authorities;
  • Developing common methods of preventing fraud and corruption and promoting better knowledge of these areas;
  • Facilitating analysis and exchange of information in the field of protection of the European Union's financial interests, including the fight against cigarette smuggling and counterfeiting;
  • Promoting and supporting over time a vigorous and vigilant approach to the design of measures to prevent and combat fraud and corruption.

Events which fulfil some or all of the above criteria are eligible and those focusingparticularly on the fight against cigarette smuggling and cigarette counterfeiting are encouraged and will be especially welcomed.

3.EVALUATION COMMITTEE

The European Anti-Fraud Office will establish an evaluation committee for the purpose of analysing and evaluating the projects according to Article 116 of the Financial Regulation[2] and Article 178 of the Implementing Rulesapplicable to the general budget of the European Union[3].

Only applications that are sent on or before the deadline ofTuesday,25thSeptember 2012(as evidenced by a postmark or by courier service as evidenced by the date of the deposit slip) will be valid.

The assessment of each proposal will be based on the information provided by the applicants in the proposal submitted in response to this call for proposals.All the information will be assessed in the light of the exclusion, eligibility, selection and award criteria set out in the call for proposals.

The evaluation committee may ask an applicant to provide additional information or to clarify the supporting documents submitted in connection with the application, in particular in the case of manifestmaterial errors.

Upon completion of its work, the evaluation committee will draw up a list of proposals recommended for funding which will be submitted to the designated authorising officer. On the basis of this list, the authorising officer adopts a final list for allocation of the grants.

4.ELIGIBILITY AND EXCLUSION CRITERIA

4.1.Eligibility Criteria

The Programme targets the following beneficiaries, as identified in the basic legal act (Article 2a):

  • All national or regional administrations of a MemberState or in a country outside the Union[4]which promote the strengthening of Union action to protect its financial interests;
  • All research and education institutes that have had legal personality for at least one year, are established and operating in a Member State or in a country outside the Union4, as defined in Article 3 of the basic legal act, and promote the strengthening of Union action to protect its financial interests;
  • All non-profit-making bodies that have had legal personality for at least one year, are legally established in a Member State or in a country outside the Union4, as defined in Article 3 of the basic legal act, and promote the strengthening of Union action to protect its financial interests.

4.2.Exclusion Criteria

Applicants will be excluded from this Call for Proposals if:

  • They are in one or more of the situations listed in Articles 93(1), 94 and 96(2)(a)[5] of the Financial Regulation applicable to the general budget of the European Union[6];
  • They submit the grant application after the deadline mentioned in section 14 of the call for proposals (evidenced as being posted on or before the deadlines);
  • They do not use the appropriate form provided and do not accompany it with the requisite supporting documents;
  • They alter, amend or delete some parts of the application form.

Applicants must also sign the declaration in Section V of the grant application Form certifying that they are not in any of the situations referred to in Articles 93(1), 94 and 96(2)(a) of the Financial Regulation.In accordance with Articles 93 to 96 of the Financial Regulation, administrative and financial penalties may be imposed on applicant organisations who are guilty of misrepresentation or are found to have seriously failed to meet their contractual obligations under a previous contract or award procedure2.

5.SELECTION CRITERIA

Only proposals which have complied with the requirements of the eligibility and exclusion criteria will be considered for further evaluation.

5.1.Financial Capacity

The assessment of financial capacity will not apply to public bodies[7].

The applicant's financial capacity enabling it to perform the tasks involved in this project (stable and sufficient source of funding to maintain activity for the duration of the project), as demonstrated by the annual accounts (balance and profit and loss accounts) for the last financial year for which accounts have been closed and other financial information provided in the grant application form.

The ratio of annual income (as shown in the annual profit and loss account) to total expenditure (as indicated in the budget form) cannot be below 0.70.

5.2.Technical (Operational) Capacity

The applicant must demonstrate that it has the operational resources (technical, management) and the professional skills and qualifications needed to successfully implement the proposed action.The applicant must have a strong track record of competence and experience in the field and in particular in the type of action proposed.

This needs to be demonstrated by:

-The CVs (max 2 pages) of the persons responsible for carrying out the action, showing all relevant professional experience.

The Commission strongly recommends that these be presented in the Europass[8] CV format. Any CV should be detailed enough to allow assessment of whether the person is qualified for the proposed position and sufficiently experienced in the subject/role.

-Members of the team responsible for implementing the action should have preferably three years of experience with similar tasks.Moreover, the project manager should preferably have at least three years of experience in (project) management and in an internationaland multi-disciplinary environment.

-A list of projects carried out by the applicant related to the objective of the Hercule II Programme.

6.AWARD CRITERIA

Only projects which have satisfied the requirements of the eligibility, exclusion and selection criteria will be considered for further evaluation by the evaluation committee on the basis of the award criteria.

Grants will be awarded from the available budget, in order of priority and on the basis of the following criteria:

  • Consistency of the proposed activity with the objectives of the Hercule II programme;
  • Transnational character and European Union added value;
  • Degree of preparation and organisation of the project, and the clarity and precision of its objectives, design (including timetable) and planning;
  • Proportionality between the proposed activity's costs and benefits;
  • Feasibility of the proposed activity, i.e. the practical prospects of carrying it out using the proposed resources;
  • Cost-effectiveness: the project's costs should be consistent with its objectives. Its cross-sector and cross-border aspects will be taken into consideration;
  • Complementaritybetween the proposed activity and the other activities for which grants are awarded;
  • Compatibility with the work carried out or planned in connection with the European Union's policy priorities for preventing fraud against the EU budget (especiallythe fight against corruption, enlargement of the Union);
  • Possibility that the results can be used (e.g. through targeted distribution) to enhance cooperation and effectiveness in the field of fraud prevention.

In the evaluation of a project for which EU funding is requested, special attention will be paid to the clarity and precision of the budget estimate submitted, the transnational character of the activity and the level of detail of the programme. If several projects have equal merit in the light of these award criteria, OLAF will:

–endeavour to ensure a fair geographical distribution of all the projects;

–give priority to applicants who have not already received a grant from OLAF in previous years for a similar measure (subject, target audience);

–give priority to measures relating to the various sectors of investigation most frequently covered by OLAF's operations (structural funds, direct expenditure, external aid, customs and agriculture).

7.EXPECTED RESULTS

In the context of effective and efficient use of the funds provided, the following results are expected:

–enhanced cooperation and exchange of information between the various partners at national, international and EU level;

–improved knowledge of OLAF and its working methods in the Member States, accession countries and candidate countries;

–identification of shortcomings in the systems for preventing and combating fraud, with a view to rectifying them;

–improvement of the expertise of those involved in the prevention and detection of fraud;

–optimal dissemination of the results among a broader public.

8.FINANCIAL CONDITIONS

8.1.Available Budget for 2012

Indicative budget envisaged for grant awards: € 1000000.

8.2.Financial provisions

  • Co-financing shall require that part of the costs of an action be borne by the beneficiary of a grant, or by contributions other than the EU contribution[9]. The projects must not be financed entirely out of EU funds[10].
  • Sources of financing other than any EU grant may take the following forms (see guidelines: budgeted income): applicant's contribution, other external resources, direct receipts from the action.
  • OLAF's financial contribution in the form of a grant will not exceed 80% of the total eligible cost of the project. The applicant must guarantee a minimum of 20% of the financing.

This same percentage will be used when calculating the actual grant to be paid. If the final expenditure turns out to be lower than the expenditure budgeted, the Commission's contribution will be calculated on the basis of the percentage shown in the grant agreement.

If the final expenditure turns out to be higher than the expenditure budgeted, the actual grant cannot be increased, and will be limited to the maximum amount set out in the grant agreement.

  • Contributions in kind will not be accepted[11].
  • The grants are awarded for specific actions and confer no automatic right to financing in subsequent years. They cover only the period during which the project is carried out. A grant cannot be awarded retrospectively.
  • Before awarding a grant, the European Commission carries out a number of checks on the budget proposed in the application. These checks can lead to a revision of the budget and sometimes to a reduction of the maximum eligible costs of a project.

Applicants might therefore not necessarily be awarded the full amount requested in the application. Where the Commission contacts an applicant, this does not in any way constitute or indicate a pre-selection of the proposal on the part of the Commission.

  • European Union grants are incentives to carry out projects that would not be feasible without the European Union's financial support, and that are based on the principle of co-financing. They complement the applicant's own financial input and other external resources obtained to implement the action.

8.3.Eligible Expenditure (See guidelines for further details)

The eligible direct costs of the activity are those which comply with the following general criteria, i.e. they:

–relate directly to the subject of the agreement and are provided for in the summary budget annexed to the agreement;

–are necessary for carrying out the activity specified in the agreement;

–are reasonable and justified, and satisfy the principles of sound financial management, particularly in respect of economy and cost/efficiency ratio[12];

–are generated during the course of the activity as defined in the agreement;

–are justifiably incurred by the beneficiary and recorded in the beneficiary's accounts or tax returns;

–are identifiable and verifiable.

The following direct costs are eligible:

  • The cost of staff assigned to the activity;
  • Travel and subsistence allowances for staff taking part in the activity and participants of the co-financed event;
  • The cost of interpreters[13];
  • Depreciation costs of equipment;
  • Cost arising directly from requirements imposed by the agreement (dissemination of information, specific evaluation of the activity, audits, translations, printing, production costs…);
  • Extra costs associated with the participation of people with disabilities,such as may be required to cover the use of special means of transport, personal assistants or sign language interpreters, or for conversion of webdocuments to alternative accessible formats.
  • Any expenditure in connection with the participation of representatives of :

-The Balkan countries forming part of the Stabilisation and Association Process (SAP) for countries of south-eastern Europe[14]

-The Russian Federation;

-The countries covered by the European Neighbourhood Policy[15]

-Certain countries with which the European Union has concluded an agreement for mutual assistance in customs matters[16].

Please note that the participation of the above countries is particularly encouraged.

  • Subcontracting: costs generated by contracts awarded by the beneficiary must only account for a limited part of the project for specific tasks of a specific duration (see guidelines (page 11, 12) and draft grant agreement (page 8, article II.9).

The beneficiary's internal accounting and auditing procedures must enable the costs and revenue declared in respect of the project to be directly reconciled with the corresponding accounting statements and supporting documents.