Twinning Manual 2009 – New Twinning Manual 2009 – New procedures, new templates, preparing procedures, new templates, preparing

and amending Twinning Contractsand amending Twinning Contracts

DG Enlargement – Unit D4DG Enlargement – Unit D4

February 2010February 2010

Application of Manual 2009

• Applies for all the Twinning Projects whose notification of the selection was done after the 15th of September 2009.

TW Manual 2009 – Main ChangesNew definition of geographical areas for the authorisation of a possible third assignment for RTA's: art 2.2

The geographical areas for the authorisation of a possible third assignment for RTA's, in case the conditions are met, are redefined, reflecting the changed situation in the Enlargement context. There are now five different areas: (i) 12 countries of the 5th Enlargement,ii) Candidate countries, (ii) Potential candidate countries(iii) Southern Mediterranean region and (iv) Newly independent States

Approval of the contract under ENPI: art 3.9.2 The approval of the contract has been delegated to four countries in the South: Morocco, Tunisia, Jordan and Egypt and to one country in the East: Ukraine.

New terminology used for "legal duration": art 4.2 and Annex A "Special conditions" of the Twinning Manual.

To be in line with the "Special conditions" of a grant contract as outlined in the Practical Guide, the "legal duration" is defined as the "execution period" and the duration of the work plan is defined as the "implementation period of the Action".

Harmonisation of the rule for study visits by BC officials to MS under IPA: art 5.7.2

Costs for travel by BC officials from their capitals to a MS or between MS under IPA costs have to be carried by the BC administration as co-financing.

Uplift of the ceiling for supply of services has been incorporated in the manual: art 7.6

The uplift of the ceiling for the supply of services under a Twinning contract to € 10.000 per budget item has been incorporated in the Twinning Manual.

Twinning Review Missions: art 9.2.2 The objective of these Twinning Review Missions are the assessment of the sustainability of the Twinning project's results and the long term impact on the project's objectives and dissemination of good practice via a database of Twinning Review Mission reports.

Uplift of the ceiling for visibility costs: art 9.4 The ceilings for visibility costs in Twinning projects have been raised to € 5000 for projects up to € 1.000.000 and to € 10.000 for projects over € 1.000.000.

Model Expenditure Verification Report: Annex A6 of the Twinning Manual.

To be in line with the "Model Expenditure Verification Report" of a grant contract as outlined in the Practical Guide, Annex A6 has been thoroughly reviewed.

Selection fact Sheet for IPA has been refined: Annex C 7 In order to improve the quality of the feedback to successful and non-successful bidders, the selection Fact Sheet for selections under IPA has been modified. A proposal can now receive the score "adequate", "partly adequate" or "non adequate" for each of the different criteria, and there is more room for comments.

Templates for Side Letters and Addenda: Annexes C 12, C13 and C 14

Following several requests from Twinning partners and other users of the Manual, optional templates for side letters and addenda to Twinning contracts and instructions for their preparations have been added in new annexes to the manual.

Special Conditions

New terminology used for "legal duration": art 4.2 and Annex A "Special conditions" of the Twinning Manual.

To be in line with the "Special conditions" of a grant contract as outlined in the Practical Guide, the "legal duration" is defined as the "execution period" and the duration of the work plan is defined as the "implementation period of the Action".

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Study Visits

Harmonisation of the rule for study visits by BC officials to MS under IPA: art 5.7.2

Costs for travel by BC officials from their capitals to a MS or between MS under IPA costs have to be carried by the BC administration as co-financing.

Ceiling for supply of servicesUplift of the ceiling for supply of services has been incorporated in the manual: art 7.6

The uplift of the ceiling for the supply of services under a Twinning contract to € 10.000 per budget item has been incorporated in the Twinning Manual.

Ceiling under Manual 2007 was updated by Letter

Twinning Review MissionsTwinning Review Missions: art 9.2.2 The objective of these Twinning Review Missions are the assessment of the sustainability of the

Twinning project's results and the long term impact on the project's objectives and dissemination of good practice via a database of Twinning Review Mission reports.

TEST TO BE DONE !!!

Ceilings for visibility costsUplift of the ceiling for visibility costs: art 9.4 The ceilings for visibility costs in Twinning projects have been raised to € 5000 for projects up

to € 1.000.000 and to € 10.000 for projects over € 1.000.000.

Model Expenditure Verification Report

Model Expenditure Verification Report: Annex A6 of the Twinning Manual.

To be in line with the "Model Expenditure Verification Report" of a grant contract as outlined in the Practical Guide, Annex A6 has been thoroughly reviewed.

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Selection Fact SheetsSelection fact Sheet for IPA has been refined: Annex C 7

In order to improve the quality of the feedback to successful and non-successful bidders, the selection Fact Sheet for selections under IPA has been modified. A proposal can now receive the score "adequate", "partly adequate" or "non adequate" for each of the different criteria, and there is more room for comments.

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Addenda / Side Letter Templates

Templates for Side Letters and Addenda: Annexes C 12, C13 and C 14

Following several requests from Twinning partners and other users of the Manual, optional templates for side letters and addenda to Twinning contracts and instructions for their preparations have been added in new annexes to the manual.

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Lisbon Treaty

• As a consequence of the Lisbon Treaty, some denominations will have to be changed in some templates.

TWINNING CONTRACT

TWINNING CONTRACT

• The formal commitment made by a MS will be in the form of a ‘Twinning Contract’. This constitutes the contractual framework for implementing the Twinning project and specifies the obligations of both administrations in the MS and the BC

• Twinning contract is a Grant contract

COMPOSITION OF THE CONTRACT

Special Conditions Annex I: Description of the Action + Work PlanAnnex II: General Conditions for EC financed grant

contracts for external actionsAnnex III: Budget for the ActionAnnex IV: Contract – award proceduresAnnex V: Standard request for payment and FIF Annex VI: Model Expenditure Verification ReportAnnex VII: Special Financial Annex Annex VIII: Mandates (if consortium + intra

consortium agreement)

CONTRACTING AUTHORITY (CA)

• Twinning partners should always refer to the Contracting Authority for financial and contractual issues

• The CA can be either the Commission (for centralized programmes) or the CFCU (DIS)

CONTRACT SPECIAL CONDITIONS

• Article 2 – Execution and Implementation period of the Action (legal and work plan duration)

• Article 4 - Technical and financial reporting and payment arrangements

ANNEX I Description of the Action + WP

• Detailed work plan with clear benchmarks to allow for close monitoring of progress towards the final results

• Drafting Twinning contract and work plan must be a joint MS/BC exercise

• A work plan consists of a sequence of activities which together constitute a strategy aimed at achieving the results

ARTICLE 3 MANDATORY RESULTS (OUTPUTS)

• Concrete operational results

• ‘mandatory results’ should be limited, well-defined, measurable and precise institutional targets

• Achievements of mandatory results should be maintained after the end of implementation, disseminated and consolidated

MANDATORY RESULTS (OUTPUTS)

Intervention logic

Benchmarks

Sources of information

Assumptions

(external to project)

Overall Objective

Project Purpose

Mandatory Results

(Components)

Activities

ARTICLE 4. TASKS (INPUTS)

Method- Brief description of activity (What will happen: MS STE mission, study visit, training, consultation, etc), how will it be implemented, by whom (clear share of responsibility MS/BC) and when

Resources- MS Human Resources (Number of experts and man / days)- Beneficiary Administration Human Resources (No. of people and their home institutions)- Other resources (translation, interpretation, training materials)

ARTICLE 5. RISKS

Internal conditions related to the project that must be fulfilled in order to guarantee its success

ARTICLE 6. SCHEDULE

Project Month 1 2 3 4 5 6 7 8 9 10 11 12

Component 1

Activity 1.1

Activity 1.2

Activity 1.3

Component 2

Activity 2.1

Activity 2.2

Activity 2.3

ARTICLE 7 RESOURCES

• 7.1. Human Resources– 7.1.1. Member State(s)– 7.1.2. BC– 7.1.3. Curricula Vitae

• 7.2. Material Resources

• 7.3. Indicative Budget

ARTICLE 8 MANAGEMENT AND MONITORING

• 8.1. Language

• 8.2. Project Steering Committee

• 8.3. Reporting

ARTICLE 9 Twinning Review Missions

• Each project can be followed, 6 to 12 months after its finalisation, by a Twinning Review Mission

• This mission aims at reporting whether sustainable impacts or spin offs have been observed after Twinning project finalisation.

• Twinning Review Missions are organized and financed by TAIEX instrument

ANNEX A3 BUDGET

• The Twinning budget is presented in the format of an activity based budget apart from the RTA related expenditure and other general budget items.

• Expenditures listed in the budget must correspond to the activities listed in the work plan

• The budget is signed and initialed by both MS and BC Project Leaders

ELIGIBLE COSTS

• RTA salary, allowances (as per chapter 5.3 and Annex B), training, Assistant

• Project preparation (chapter 5.2.1)

• Project Leader (fees, travel, visibility costs and audit certificate (chapter 5.4)

• Experts per activity (fees, travel, per diem, local travel)

ELIGIBLE COSTS (2)

• “Management Costs”: 150% on all fees

• Translation – Interpretation

• Training in BC – Training in MS

Expenditure verification report costs (for instance 4000-6000 €)

Procurement of Supplies / Services

• Contingencies (2,5%)

NON-ELIGIBLE COSTS

• Costs of STE/PL working in the MS and backstopping costs are covered by project management costs

• Travels to MS for BC officials• Large scale equipment• Operational costs of BC (Office space,

telephone, fax, photocopiers, secretarial support, etc.)

• MS STEs monitoring visits • VAT

Salary, benefits, allowance

Salary and non-wage labour costs 6% of salary and non-wage costs Subsistence allowance (50% of rate for days spent in BC) Health insurance RTA + spouse (max. €200 / €100 children)

Accommodation

Per diem allowance for first 30 days (RTA + spouse/children) Accommodation Estate agent fees (max 2 months’ rent – one month sufficient)

RTARTA COSTSCOSTS

Travel

Travel to and from place of duty Removal and storage + annual trip home for RTA +

spouse/childrenOR: monthly return trips home for RTA

Other RTA costs

School fees (max. €12,000 p.a.) RTA training in Brussels (3 per diems plus return flight to

Brussels) Assistant (max. per BC)

RTARTA--RELATED COSTSRELATED COSTS

PROJECT LEADER COSTS

The Project Leader is required to spend at least 3 days in BC every quarter

Project leader fees and 150% management costs Airfares Per diems Translation of reports etc. Interpretation Final audit costs

Management of Logistics and Accounting are provided by the MS administration (and Partner MS) and covered out of the Management Costs (no additional cost to the contract)

CONTRACT PREPARATION COSTS

Refundable upon endorsement of Contract for trips during the period up to 6 months following notification of selection

Projects < 1 M€

Project Leader and RTA

6 flights

20 per diems

20 fees

Flat rate 150%

Projects > 1 M€

Project Leader and RTA

9 flights

30 per diems

30 fees

Flat rate 150%

VISIBILITY COSTS

Funds for the printing of posters, banners and other items promoting the activities and acknowledging the funding source (EU)

Projects > 1 M€10 000 euro

Projects < 1 M€5 000 euro

The funding source (EU) must be acknowledged on all documents, products and at events within the project.

As a minimum, the EU logo should be displayed

OTHER COSTS IN BC

Fees of short-term experts Management costs (150% of fees)Per diems for STEs (per night, no halves)Airfare (economy)Local travel (max. €50)Translation (for instance €15 - €45 per page)Interpretation (for instance max. €300 per day)Interpretation away (for instance max. €400 per day)

COSTS COVERED BY BC

Office space for RTA and assistant Telecommunications (phone, fax) Computer, including e-mail access, printer Office supplies Secretarial assistance Meeting and seminar venues International travel for BC staff BC experts

COSTS IN MS

Per diems for BC participants

Interpretation (for instance max. €300 per day)

Incidental fee 10€ per MS participant

NB: Hiring a BC interpreter is recommended if the cost for per diems and travel is lower than the cost of hiring a local interpreter

SHORT TERM EXPERTS FEES

PUBLIC ADMINISTRATIONCivil servants € 250

MANDATED BODY

Class 1 expert € 250(Minimum 3 years of relevant experience)

Class 2 expert € 350(Minimum 8 years of experience, work in non-EU countries)

Class 3 expert € 450(Minimum 15 years of experience, high-level staff)

PRIVATE SECTOR INPUTS

• Supply of Goods: Limited to € 5000 for each TW project

• Supply of Services: Limited to € 10000,

• In both cases a single tender procedure is managed by a MS PL.

Seminars, Training, Traineeships and workshops

In the Beneficiary Country

• TW mainly provides for experts from MS, possibly also documentation, interpretation and transport for on-site visits

• Facilities, equipment, transport of BC staff, refreshments should be provided by the BC

In the Member State

• BC covers transport costs of staff from BC to MS, per diems for BC trainees are allowed. Costs for MS expert fees cannot be added, (they are deemed to be included in the TW management costs)

• Small incidental costs can be charged with a lump sum (max 10 EUR per trainee/day)

• Special rules for traineeships, fees for training

IMPLEMENTATION AND REPORTING

REPORTING REQUIREMENTS

• Interim Quarterly Reports

• Final Report

REPORTING REQUIREMENTS

• Reports shall consist of a content section and a

financial section

• RTA is responsible for submitting them to the

concerned authority

• The BC Project Leader is fully involved in this

process and should be given adequate time to

put forward comments. S/he must also co-sign

each report

INTERIM QUARTERLY REPORTS

• Describe progress in the implementation making direct reference to the timetables and benchmarks

• Update on the general environment, assumption and risks

• Make an overall evaluation of the progress achieved

• document the actual expenditure in relation to budgeted expenditure

• Provide recommendations

FINAL REPORT

• Executive summary of the project

• Background information

• Listing of objectives, purpose and mandatory results

• Implementation process

• Achievement of mandatory results

FINAL REPORT (II)

• Analysis of the long-term impact of the project, its sustainable results and identification of potential relevant follow-up actions

• Information on visibility of EU financing

• Conclusions, recommendations, including lessons to be learned for future Twinning projects

FINAL REPORT (III)

• Proof of transfers of ownership (if applicable) and a final statement of all eligible costs of the Twinning project plus a full summary statement of the Twinning project’s income and expenditure and payments received

• Template to be used in ANNEX C5

• Expenditure verification report from a recognized, independent auditor

CHANGES TO TWINNING CONTRACTS

CHANGES TO TWINNING CONTRACTS

• Changes can only be made within the execution period of the contract (legal duration)

• Changes cannot be retroactive

• There should be no changes to the mandatory results defined in the work plan; the means of achieving these may be adapted to circumstances

CHANGES TO TWINNING CONTRACTS

Two procedures shall apply:

• AddendaSubstantial changes to the Twinning Contract formalized in a formal written addendum to the contract signed by both MS administration and BC administration require prior approval

• Side lettersMinor changes are notified to the CA through a side letter signed by both PLs. The notifications must be made by a secure means of communication, so that dispatch can be proven in the event of dispute.

ADDENDA (1)

• Acquis Communautaire related to the project (Article 2 of the Work plan)

• Definition of the mandatory results and the benchmarks

to be achieved (Articles 3 and 4 of the Work plan)

• MS administration involved in the Twinning project (Article 5 of the Contract)

• The period of execution (Art 2 of the Contract)Microsoft Word

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ADDENDA (2)

• Identity of the MS and BC Project Leaders, the

RTA and the main MS short-term experts (Article

6 of the Work plan)

• Interruption or termination before completion

• Major reallocations beyond 15% of the total

Budget

• Template to be used in ANNEX C12

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SIDE LETTERS

• Changes not affecting basic purpose (means used for implementation, time schedule and dates, identity of non-key MS’ short term experts)

• Reallocations below 15% of the total Twinning budget

• Template to be used in ANNEX C13

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BUDGET CHANGES

• The overall budget of a project cannot be increased

• The unit costs (fees, daily allowances, etc.) must respect the rates set in the manual;

• Introduction of a new activity must be justified by showing that it will be of real use in achieving the mandatory results targeted by the Twinning Contract; the mere availability of funds is not sufficient to justify the financing of new activities.

• Costs for changes notified or approved after their implementation cannot be reimbursed

BUDGET CHANGES (2)

As long as the budgetary reallocations of appropriations remain under 15% of the total budget for the Twinning project, the changes are effected trough a side letter

All budgetary changes through side letters are summed until the threshold of 15% of the total Twinning budget is reached. As from this moment, all budget modifications require an addendum

PAYMENTS

PAYMENT PROCEDURE

• Article 15 of the General Conditions:

• A pre-financing of 80% of the budget for the first 12 months of execution period within 45 days of receipt of:

• - the Twinning Contract signed by both parties

• - a request for payment (Annex A5)

PAYMENT PROCEDURE

• Further pre-financing: when the MS Twinning partner can demonstrate that more than 70% of the cumulated pre-financing has been consumed, a subsequent pre-financing payment may be requested

• Payment should take place within 45 days of receipt of the request further to the endorsement by the Beneficiary of services rendered

PAYMENT PROCEDURE

Prior to final payment/settlement, the accumulated payment of the initial prefinancing and the successive pre-financing payments may not exceed 90% of the total budget

• Final payment: Upon completion of the Twinning project, and subject to approval of the final project report demonstrating that the mandatory result has been achieved, the MS Twinning partner may submit its request for final payment together with the final global financial report accompanied by the expenditure verification report

EXPENDITURE VERIFICATION REPORT

• An auditor must certify that all transactions invoiced by the MS Twinning partner were duly justified in accordance with the established rules and arose solely as a result of the Twinning Contract. Veracity as well as eligibility of the transactions must be audited

• The expenditure verification report dispenses MS implementing bodies from submitting original documentary evidence to the contracting authority when requesting payment

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DOCUMENTATION IN SUPPORT OF INVOICES

• The MS is obliged to keep full accurate and systematic record and accounts of the activities implemented

• Records must be kept for a 7-year period after the last payment made by the BC and the MS

• These documents comprise any documentation concerning income and expenditure, inventory necessary for the checking of supporting documents, mission/timesheets, transport tickets, pay slips for experts and other invoices

Thanks for your attention

Twinning Coordination TeamPaolo Gozzi

Jordi Rodríguez RuizBirgit Persson

Elarg Twinning Mail: Elarg-twinning@ec.europa.eu