NCF Tenders2011

In general In the basic program all those private foundings and

civil organisations are entitled to gain support from the Fund, who are registered in Hungary and operated effectively at least for one year. (In 2011 NCF assistance can be given only for foundings and civil organisations that are registered by court before 31st December 2009.)

The newness of NCF system is the decisionmaking progress without political influence executed by the civil organisations.

In 2010 there were 18 647 applications for 7 billion Forints.

In 2011 the available support of the Fund is 3,6 billion Forints. (reduced almost by 50%!)

The government edict 259/2010. (XI.16) about the legal status of budgetary authorities entered into force on 27th November 2010. In the framework of this edict the Supportmanagement Directorate of Ministry of Education and Culture (previously operated under the Ministry of Education and Culture) will continue its operation as „Wekerle Sándor Fund Management„.

According to the principle of the national cooperation the Wekerle Sándor Fund Management’s most important task is to manage an effective tender system that ensures the transparent, fast and efficient utilization of the national budgetary recources and the implementation of the best projects.

EPER – this is an abbreviation of the System of Electronic Tendermanagement and Cooperation in Hungarian– is suitable for monitoring the whole process starting with submitting the applications through internet, ending with closing the winner’s applications, as well as for registering and storing data concerning the application and the applicant organisation.

www.wekerle.gov.hu: on this webpage under the NCF label we can click on the „EPER” label, or we can reach it through the page http://www.eper.hu/webeper/PALY/PalyBelep.aspx .

Submission of the application : we must complete our application within 30 days from its appearance on the website

The NCF system is prefinanced which means that the organisation gets the support after the contracting, and the report about its utilization is required when the project has already expired.

Implementation: this is the period when we have to materialize the obligations of the winning application.

Report: we have to make professional and financial reports about the utilization of the support. The decision-making bodies (Kollégium) decide upon their acknowledgement.

The calling for tender There are two groups of calling for tender in

the NCF system: Operational calling for tender – its aim is to

contribute to the organisations’ operation in the field of equipments, infrastructure and human resources as well. This promotes the organisations’ development.

Professional calling for tender – in this case the purpose is to support those public benefit activities that promote development of the civil organisations and which are defined by the professional Kollégiums.

NCF South Great Plain Regional Kollégium‘s calling for tender

The grantable sum is: 286 995 000 HUF

The submission date: 3rd March 2011, 24.00 o’clock

The period and the form of support: every operational cost and the purchase of tangible assets related to operation and emerged from 1st June 2011 to 30th September 2011 is supported by non-refundable assistance

Attention! In the case of operational tenders the beneficiary

must ensure its own contribution equals at least 10% of the demanded sum.

The own contribution can be: Cash or non-cash, provided from own recources

(personal contribution– social work, ensurance of the conditions or services)

The own contribution can NOT come from support granted by other supporters!

At the realisation of the contract we have to make a statement about the available own contribution in cash and attest its availability. Furthermore: due to reporting obligation we should account for it.

Calculating the available assistance in operational tenders

In 2011 the following band-system is valid:

Bands Annual adjusted costs

Available assistance (max.)

1.band 0- 500,000 HUF 300,000 HUF

2.band 500,001 – 3 M HUF 300,000 HUF + 16% of the sum above

500,000 HUF

3.band 3,000,001 – 10 M HUF700,000 HUF

+ 15% of the sum above 3 M HUF

4.band 10,000,001 HUF -1,750 M HUF

+ 12% of the sum above 10 M HUF,

max. 3 M HUF

The point of band-system is that the support is limited on the basis of the data of the previous year’s annual adjusted costs.

To calculate the available assistance, we need the data of the previous year’s annual adjusted costs.– Previous year: we consider that year as „previous” in

which the particular accounting report is available and should be available, as by law enacted. (That means if the organisation already has an accepted accounting report for the year 2011 at the time of the application’s submission, the organisation has to attach it as well. If it is not the case, we can also submit the accounting report of the year 2009.

If we have the the data of the previous year’s adjusted costs

A) The total costs of the basic activity in the previous year: 3 475 000 HUF

B) The provided grant to other organisations or people in the previous year: 500 000 HUF

C) The total sum of previous year’s adjusted costs (C=A-B) 2 975 000 HUF

D) In this tender the available support: The result of the point „D” is determined by the point ”C”.

In other words:

The total adjusted costs of point „C” is 2 975 000 HUF, so it falls into the band 500,000 HUF-3 M HUF. The max. available assistance: 300,000 HUF + the 16% of the sum above 500,000 HUF.

In this example it equals 2,475,000 HUF 300,000 HUF + 396,000 HUF (2 475 000 x

16%)= 696 000 HUF. So the max. available support is 696 thousand HUF. We can demand only this amount or less than this.

It is important to mention that the grantable sum of the different bands can be reduced by the Kollégiums, which means that the most assistance gratned by a Kollégium would not be 3 M HUF, but less than this.

For this reason!!- we should always calculate with the values of the actual calling for tender!

Supportable expences Guidance page 22. The National Civil Fund supports the operational

expences and activities like the followings: Fundamental operational and administrative costs and

developments Development of Human Recources and

capacities Fundraising, management Internal and external communication Marketing, service development Administration, costs of office, meeting legal

requirements

The costs of the ensurance and development of conditions neccessary for pursuing the target activities, if it is not connected to the program directly. Development of Human Recources, capacities of

target activities Internal and external communication of target

activities Marketing of target activities Ensurance of technical, logistical conditions of

target activities Meeting legal requirements of pursuing target

activities

In the regulation there are three large groups of expenditures:

A./ Material expendituresB./ Costs of employment and human resourcesC./ Acquisition of tangible and intangible assets

These are the main sections in the budget of the application that can be devided into subsections.

Non-eligible costs Non-eligible cost are expenditures that do not

serve the operation of the organisation (e.g. program costs), or serve the pursuit of activities that are not included in the deed of foundation.

Further non-eligible cost is the refundable, pre-charged Value Added Tax. Thus in the report we use the net prices without the refundable VAT.

When we demand operational support, we have to give detailed, exact reasons! (page 28)

Changes compared to 2010 At the point „Calculation of resources and costs relating to the utilization of assistance” we are obliged to plan the revenues and expendutures of the particular support period.

We must ensure own contribution amounted to at least 10%. This can be: cash, payment in kind coming from own resources as well as voluntary work. We should account for the expected own contribution due to the reporting obligation!

Expenses

The own contribution of the organisation (own contribution plus support deriving from other assistance) should presented at the expenditures in the column of „costs paid from other sources”.

Important: There should be an equalibrium between the total income and the total cost at the bottom line of the balance sheet.

In case of getting support the applicant need to make a budget plan with the contract, which corresponds with the amount of the financial assistance. This will be an annex of the support contract. (Of course it is advised to be done at the submission of our application, so we can plan according to this.)

Divergence from the planed budget

We can diverge from our planned total sum downwards without any restriction – thus the applicant will account for less expences thus the applicant will forgo the remainder money and transfer it back.

The applicant can rearrange money between the subsections of the particular main sections, but the particular main section’s total value can not exceed the original value by more than 20%.

In our example (HUF): A./ Material expenditures: 300 000

B./ Costs of employment and human resources: 200 000C./ Acquisition of tangible and intangible assets: 196 000

For instance if the organisation planned to purchase a printer for 100 000 HUF – which it did not buy eventually, for this subsection the organisation will account for 96 000 HUF, thus in the C main section the divergence is 51%. But the remaining money can be used without modification to contract as the followings:

A./ Material expenditures:360 000 HUF (300 000 HUF + 20% = 120%)

B./ Costs of employment and human resources: 240 000 HUF (200 000 HUF + 20%= 120%)

C./ Acquisition of tangible and intangible assets: 96 000 HUF (48,98%)

If you would like to use it differently, you have to modify the contract.

In case of professional tenders

• We should receive at least 75% of the assistance adjudged by the competent Kollégium (changes in 2011)! Thus a realistic budget planning is crucial

• In some cases the Kollégium is curious for the organisation’s non-cash own distribution, thus we should fill out a sort of„free-of-charge contribution” table. Here we should mention the material and personal non-cash contributions that assisted the tender’s implemention

• For the program a detailed cost accounting is neccessary (page 41.)

• The Kollégiums can define the amount of the compulsory own contribution, which must be presented in the application form at the „Planned resource calculations of the program” (Revenues) in the line „Own resources”.

Report on public benefit activity

• In case of professional tenders the report on public benefit activity is an annex of the project. (organisations registered as a public benefit organisation /PBO/ before 31st Decemeber 2010 have to write a report on their public benefit activities together with the approval of the Disclosure Statement, ruled by the Act CLVI of 1997 on Public Benefit Organisations

Substantive elements:

• Accounting report• Utilization of the budgetary assistance.• Report on the appropriation of the assets• Report on the target grants (grants by particular targets)• The amount of the assistance granted by the central budget

authority, the separated state fund, the local governments, the local governments of minority groups’ settlements, the local government associations

• The amount of allowance grated to the executive officers of the PBO• A brief substantive report on the public benefit activities (of the

actual fiscal year)

In the report on public benefit activity we should provide information about all mentioned points. (the negative answer should be included as well)

The monitoring of the assistance’s utilization

• Within 30 days after the support period the organization is obliged to submit a financial and a professional report about the utilization of the assistance.

• In the framework of the financial report the beneficiaries have to submit the bills of costs, the financial fulfillment (payment) documents of economic events that were realized during the period assigned by the support contract, and also an annex with all the invoices

Financial report – change!

• A szociális és munkaügyi miniszter 6/2010. (III.12.) SZMM rendelet 19.§ (4) bekezdése alapján a korábbi évekhez képest módosult a pénzügyi elszámolás részeként benyújtandó dokumentumok, bizonylatok köre. Ennek értelmében a teljes jóváhagyott támogatási összeg legfeljebb 20 %-ának mértékéig nem kell benyújtani a pénzügyi elszámolás részeként az egyenként tízezer forint bruttó összeget meg nem haladó támogatás tartalmú számviteli bizonylatok, az ahhoz kapcsolódó kifizetést igazoló bizonylatok és dokumentumok hitelesített másolatait.

Thank you for your attention!Good luck for your application!

Terhes Tiborné tzsuzsi@t-online.hu

http://www.eunet.site40.net/