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Ārlietu ministrijas dienesta informācija Nr.41/829-6200 Rīgā 2007.gada 10.jūlijā Par starptautisko līgumu spēkā stāšanos Ārlietu ministrija informē, ka 2007.gada 28.jūnijā stājušies spēkā: 1) Granta līgums starp Norvēģijas Karalistes Ārlietu ministriju un Latvijas Republikas Finanšu ministriju par Nevalstisko organizāciju fonda finansēšanu (parakstīts Rīgā 2007.gada 28.jūnijā, apstiprināts ar 2007.gada 26.jūnija Ministru kabineta noteikumiem Nr.454, projekts un tulkojums latviešu valodā publicēts laikrakstā "Latvijas Vēstnesis" Nr.105 (3681) 2007.gada 3.jūlijā); 2) Granta līgums starp Norvēģijas Karalistes Ārlietu ministriju un Latvijas Republikas Finanšu ministriju par Projektu sagatavošanas fonda finansēšanu (parakstīts Rīgā 2007.gada 28.jūnijā, apstiprināts ar 2007.gada 26.jūnija Ministru kabineta noteikumiem Nr.450, projekts un tulkojums latviešu valodā publicēts laikrakstā "Latvijas Vēstnesis" Nr.105 (3681) 2007.gada 3.jūlijā); 3) Granta līgums starp Īslandes, Lihtenšteinas un Norvēģijas izveidoto Eiropas Ekonomikas zonas finanšu instrumenta komiteju un Latvijas Republikas Finanšu ministriju par Nevalstisko organizāciju fonda finansēšanu (parakstīts Rīgā 2007.gada 28.jūnijā, apstiprināts ar 2007.gada 26.jūnija Ministru kabineta noteikumiem Nr.453, projekts un tulkojums latviešu valodā publicēts laikrakstā "Latvijas Vēstnesis" Nr.105 (3681) 2007.gada 3.jūlijā); 4) Granta līgums starp Īslandes, Lihtenšteinas un Norvēģijas izveidoto Eiropas Ekonomikas zonas finanšu instrumenta komiteju un Latvijas Republikas Finanšu ministriju par Projektu sagatavošanas fonda finansēšanu (parakstīts Rīgā 2007.gada 28.jūnijā, apstiprināts ar 2007.gada 26.jūnija Ministru kabineta noteikumiem Nr.449, projekts un tulkojums latviešu valodā publicēts laikrakstā "Latvijas Vēstnesis" Nr.105 (3681) 2007.gada 3.jūlijā). Ārlietu ministrijas Juridiskā departamenta direktora p.i. I.Bīlmane
Norwegian Financial Mechanism 2004-2009 GRANT AGREEMENT between The Royal Norwegian Ministry of Foreign Affairs Hereinafter referred to as the "NMFA" and The Ministry of Finance of the Republic of Latvia, hereinafter referred to as the "Focal Point", representing the Republic of Latvia, hereinafter referred to as the "Beneficiary State" together hereinafter referred to as the "Parties" for the financing of the "NGO fund" hereinafter referred to as the "Fund" Article 1 Scope 1. This Grant Agreement between the NMFA and the Focal Point lays down the rights and obligations of the Parties regarding the implementation of the Fund and the financial contribution from the Norwegian Financial Mechanism 2004-2009 to the Fund. 2. The Terms and Conditions (Annex I) and the Project Implementation Plan (Annex II), and the description of the Fund set-up (Annex III) shall form an integral part of this Grant Agreement. Any reference to the Grant Agreement includes a reference to its annexes. 3. Modifications of the Fund and the Project Implementation Plan can be carried out in accordance with Articles 4.1 and 4.2 of the Terms and Conditions. 4. This Grant Agreement is based on information provided by, through, or on behalf of the Focal Point to the NMFA in the application for the Grant dated 27 July 2006, and on any other written information provided or confirmed by the Focal Point. Article 2 Grant 1. The NMFA shall, subject to the rules stipulated in the legal framework referred to in Article 1.2 of the Terms and Conditions, make available to the Focal Point a financial grant (hereinafter referred to as "the Grant") to be used exclusively to finance the eligible cost of the Fund. The Grant shall not exceed the amount of EUR 2, 486, 566. 2. The estimated eligible cost of the Fund is EUR 5,850,744. 3. The estimated total cost of the Fund is EUR 5,850,744. 4. The grant rate shall not exceed 42.5 percent of the total, final eligible cost for the completed Fund. This grant rate shall not be exceeded at any point during the implementation of the Fund. Further information on the funding is provided in the Project Implementation Plan (Annex II). 5. The management cost of the Intermediary shall not exceed EUR 585,074. Article 3 Description of the Fund The purpose of the Fund is to provide financial support for NGO activities in democracy and civil society development fields, strengthen the capacity of NGOs supporting priorities in the EEA and the Norwegian Financial Mechanism and support NGO initiated projects in the priorities of the EEA and Norwegian Financial Mechanisms, with the overall objective of strengthening civil society in Latvia. Reference is made to the application, dated 27 July 2006, and to correspondence with the Focal point 8 September 2006 and 21 September 2006. The completed Fund shall include the following activities and results: The Fund will support yearly work programmes made by existing NGOs, establishment of new NGOs and specific projects initiated by NGOs. Management activities will focus on preparing and the implementation of the Fund. The Project Promoter is the Society Integration Foundation. The Latvian government shall provide at least 15 percent of the estimated eligible project cost. Further information on activities and results is provided in the Project Implementation Plan (Annex II). Further information on the Fund's set-up is provided in Annex III. Article 4 Eligibility of expenses 1. Unless otherwise agreed by the parties, the Detailed Eligibility Provisions - Expenditures dated 24 May 2006 shall be applicable to the implementation of the Fund. 2. Eligibility of expenditures incurred under sub-projects is stipulated in Annex III. 3. Expenditures incurred before 17 January 2007 are not eligible. 4. Expenditures incurred after 30 April 2011 are not eligible. Article 5 Disbursements 1. The NMFA may retain up to 5 % of the management cost until the Project Completion Report referred to in Article 4.4 of the Terms and Conditions has been approved by the NMFA. 2. Disbursements shall be made in EUR to the following bank account of the Beneficiary State: Account Holder: The Treasury of the Republic of Latvia IBAN: LV96 LACB 0000 0000 11657 Swift/BIC Code: LACBLV2X Bank Name: The Bank of Latvia Bank Address: LV-1050 Riga, Kr.Valdemara Street 3. Provisions on advance payments are stipulated in Annex III to the Grant Agreement. Article 6 Conditions for the awarding of the Grant 1. The grant is awarded under the following general conditions Any interest earned on the account holding the funds for re-granting shall be reported in the final Project Interim Report and reimbursed. 2. The following conditions shall be fulfilled prior to the first disbursement: Not Applicable 3. The following conditions shall be fulfilled before the completion of the Fund: The Focal Point shall the ensure that the Intermediary provides the Financial Mechanism Office with a complete listing of the applications submitted for to the Fund as well as a complete listing of the grants awarded. In the case of the list of grants awarded, this will include information on the end-recipient, the nature and priority area of the sub-project, the type of actions funded under the sub-project, how it addresses the cross-cutting objectives, and the name of any donor state partner included in the sub-project. For this reporting, the FMO statistical reporting template for sub-projects shall be used. 4. The Focal Point shall ensure that the Intermediary takes in a timely manner the necessary steps to fulfill the conditions described above. Article 7 Specific post completion obligations After the completion of the Fund, the Focal Point shall comply with the following specific post completion obligations: Not applicable Article 8 Contact information 1. The addresses of the Parties to this Grant Agreement and other relevant bodies at the time of signing are as follows: Focal Point: Ministry of Finance of the Republic of Latvia Att: Ronalds Fisers Smilšu str. 1 Riga LV-1919 Latvia Telephone: +371 (709) 5535/422 Fax:+371 7095 601 E-mail: Ronalds.Fisers@fm.gov.lv NMFA and the Financial Mechanism Office: The Financial Mechanism Office European Free Trade Association Att.: Director of the Financial Mechanism Office Boulevard du Régent 47-48 B-1000 Brussels Belgium Telephone: +32 (0)2 286 1701 Telefax (general): +32 (0)2 286 1789 E-mail: fmo@efta.int Intermediary: Society Integration Foundation Brivibas iela 40-39 LV-1050 Riga Latvia Telephone: +371 7281 752 Fax: +371 7078 224 Email: info@lsif.lv Disbursement Agent: BBVA Avenue des Arts 43 1040 Brussels Belgium 2. Changes of the above contact information shall be given in writing without undue delay by each party to this Grant Agreement. Article 9 Entry into force and duration 1. This Grant Agreement shall enter into force on the date of the last signature of the Parties. 2. This Grant Agreement shall remain in force until 5 years have elapsed after the date of the acceptance of the Project Completion Report. ******** This Grant Agreement is drawn up in two originals in the English language. Signed in Brussels Signed in Riga on 15.03.2007 on 28.06.2007 For the NMFA For the Focal Point Anders Erdal Irēna Krūmane Deputy Director General State Secretary Annex 1
Terms and Conditions for Funds
(Block Grants, Programmes, Seed Money Facility and NGO
Funds)
Chapter 1 SCOPE, Legal Framework, AND Definitions Article 1.1 Scope These terms and conditions form an integral part of the Grant Agreement and shall apply to the implementation of the Fund. Article 1.2 Legal Framework The Grant Agreement shall be read in conjunction with the following documents which, together with the Grant Agreement, constitute the legal framework of the Norwegian Financial Mechanism 2004-2009: (a) The Agreement of 14 October 2003 between the Kingdom of Norway and the European Community on a Norwegian Financial Mechanism for the period 2004-2009; (b) The Rules and Procedures for the implementation of the Norwegian Financial Mechanism 2004-2009 adopted by the NMFA in accordance with Article 8(2) of the Agreement referred to in litra (a) above, as amended; (c) The Memorandum of Understanding on the Implementation of the Norwegian Financial Mechanism 2004-2009, entered into between the Kingdom of Norway and the Beneficiary State. Article 1.3 Definitions General terms, institutions and documents referred to in the Grant Agreement shall be understood in accordance with the provisions of the legal framework referred to in Article 1.2. Chapter 2 General Principles related to the Implementation of the FUND Article 2.1 Co-operation 1.The Parties shall take all appropriate and necessary measures to ensure fulfilment of the obligations and objectives arising out of the Grant Agreement. 2.The Parties agree to provide all information necessary for the good functioning of the Grant Agreement and to apply the highest degree of transparency and accountability as well as the principles of good governance, sustainable development and gender equality. 3.The Parties shall promptly inform each other of any circumstances that interfere or threaten to interfere with the successful implementation of the Fund. Article 2.2 Representation and communication All communication to the NMFA in regard to the Grant Agreement shall be directed to the Financial Mechanism Office, which generally represents the NMFA towards the Focal Point. Article 2.3 Main responsibilities of the Focal Point 1.The Focal Point is responsible and accountable for the overall management of the Norwegian Financial Mechanism 2004-2009 in the Beneficiary State. 2.The Focal Point shall be responsible for the implementation of the Grant Agreement and shall: (a) ensure that the Fund is implemented in accordance with the Grant Agreement (b) take all necessary steps to ensure that the Intermediary is fully committed and able to implement and manage the Fund (c) ensure that the Grant is used exclusively for the purpose of the Fund and its subprojects and according to the approved Project Implementation Plan and that any necessary financial contributions in addition to the Grant are received in a timely manner (d) ensure that the Intermediary takes appropriate measures to remedy irregularities in sub-projects, including measures to recover misspent funds (e) ensure that all relevant Community, national and local legislation (including, but not limited to legislation on the environment, public procurement and state aid) shall be fully complied with (f) ensure that all assets forming part of the Fund are used only for such purposes as provided for in the Grant Agreement (g) ensure publicity of the Fund in accordance with Article 5.4 of the Rules and Procedures and the Publicity Guidelines (h) ensure that the NMFA is upon request provided with all documents and information related to the implementation of the Fund (i) make all the necessary and appropriate arrangements in order to strengthen or change the way the Fund is managed. Article 2.4 Monitoring and audit by the Focal Point 1.The Focal Point shall be responsible for monitoring of the Fund and its sub-projects. The monitoring shall be thorough enough to enable the Focal Point to certify the information provided by the Intermediary in the reports referred to in the Beneficiary State Reporting and Monitoring Guidelines. 2.The Focal Point shall ensure a complete audit trail in all engaged actors in accordance with Article 6.1 of the Rules and Procedures and sound accounting principles and methods. 3.The Focal Point shall ensure that audit of the Fund and its sub-projects is conducted in accordance with the audit plan provided according to Article 6.2 of the Rules and Procedures. If necessary, the Focal Point shall draw upon services of a reputable and well established audit company. Furthermore, the Fund should be included in the existing control/audit procedures of the Intermediary. 4.The Focal Point shall, in accordance with Article 6.2 of the Rules and Procedures, provide the NMFA with summaries of all audit reports relevant to the Fund and/or its sub-projects. The Focal Point shall upon request provide the Financial Mechanism Office, the NMFA, or the Office of the Auditor General of Norway with any audit report relevant to the Fund and/or its sub-projects, including auditing reports from the Supreme Audit Institution. Article 2.5 Immediate reporting on irregularities and other relevant developments 1.The Focal Point shall ensure efficient and prompt investigation of any suspected and actual cases of fraud and irregularity. The Focal Point shall, in accordance with the Irregularities Guidelines adopted by the NMFA, immediately report to the NMFA all suspected and actual cases of fraud and irregularity as well as all measures related thereto, taken by competent national authorities. 2.The Parties shall immediately inform each other if they become aware of any legal actions initiated or continued against the Fund and/or its sub-projects, including actions or decisions taken by the European Community institutions. Article 2.6 Implementation contract with the Intermediary 1.The Focal Point shall ensure the signing of a contract with the Intermediary on the implementation of the Fund. Such implementation contract shall ensure that the obligations undertaken by the Focal Point in this Agreement are properly delegated to the Intermediary in a manner which ensures enforceability of these obligations. In cases where the Grant, due to provisions in the national legislation, cannot be disbursed to the Intermediary on the basis of an implementation contract, the Beneficiary State may instead issue a legislative or administrative act of similar effect. 2.Delegation of obligations referred to in paragraph 1 of this Article does not in any way affect the obligations and responsibilities of the Focal Point under this Grant Agreement. 3.Prior to the first disbursement, the Focal Point shall have submitted to the NMFA a standard version of such an implementation contract or implementation act. 4.Prior to the first disbursement, the Focal Point shall provide the NMFA with the following information on the contract or act relevant to the Fund: (a) full legal name of the Intermediary; (b) number of application (FMO number) and name of Fund; (c) date of entry into force of the contract or date of issuance of the act, and (d) information as to which standard version of the contract or act is used for the Fund. 5.If the standard version of the contract or the act has already been sent to the NMFA, the reference in paragraph 4(d) of this article is to be considered a fulfilment of paragraph 3. 6.Upon request, the Focal Point shall provide the NMFA with a copy of the implementation agreement or act, accompanied by a translation into English. Article 2.7 Representations and Warranties The Focal Point represents and warrants that the information provided by, through, or on behalf of the Focal Point in connection with the application for funding, and the conclusion and implementation of this Grant Agreement are authentic, accurate and complete. Chapter 3 Disbursement And Eligibility Article 3.1 Eligible Expenditures 1.Only expenses that are eligible according to Article 3.1 of the Rules and Procedures and the Detailed Eligibility Provisions - Expenditures can form the basis for the financing from the Norwegian Financial Mechanism 2004-2009. 2.Final acceptable payment claims must be received within six months of the last date for eligible expenditures referred to in Article 4 of the Grant Agreement. Payment claims received at a later date or deemed not acceptable by the NMFA will not constitute a basis for disbursement. 3.The NMFA can, in accordance with Article 3.1.3 of the Rules and Procedures, extend the period of eligibility. Article 3.2 Disbursement of the Grant 1.Disbursements are made in accordance with the approved Project Implementation Plan based on requests for disbursements submitted by the Paying Authority. 2.Before disbursement can be made, the NMFA shall be provided with a Project Interim Report both in electronic and hard copy, certified by the Focal Point and the Paying Authority in accordance with the Disbursement Guidelines and the Beneficiary State Reporting and Monitoring Guidelines. The Project Interim Report shall cover a period of at least 3 calendar months and be related to expenditures from that period. 3.When the required documents have been provided the NMFA shall verify that they are in the correct form and that the conditions for the disbursement have been met. Unless the NMFA decides to make use of remedies provided in Chapter 6, the NMFA shall as soon as possible and within two months from the receipt of the disbursement request, order its Disbursement Agent to execute the disbursement in question to the Paying Authority. The NMFA shall notify the Paying Authority when such disbursement order has been submitted. 4.In case of an error made in relation to a disbursement resulting in a higher amount paid than required under the Grant Agreement, the Focal Point shall, upon request from the NMFA, reimburse without delay any amount unduly disbursed. Similarly, if an error results in a lower amount paid than required, the NMFA shall, as soon as possible after being made aware of such an error, disburse the missing amount. 5.The principle of pro rata financing of costs incurred shall apply, meaning that the grant rate referred to in Article 2 of the Grant Agreement shall not be exceeded at any time during the implementation of the Project. This is without prejudice to Article 3.4. 6.When the disbursement has been made, and received by the Paying Authority in full, the NMFA has fulfilled its obligations relating to that disbursement. 7. If any of the conditions justifying suspension of disbursements or reimbursement of funds under Articles 6.1.1 or 6.2.1 apply, the NMFA may instruct the Focal Point, that disbursed funds may not be used for any or all of the subprojects to which such conditions apply, and/or for management cost if the conditions relate to the role of the Intermediary. The Focal Point shall ensure that the Intermediary will act in compliance with such an instruction. Article 3.3 Transfer and Use of the Grant 1.The Focal Point shall ensure that the Paying Authority, within fifteen working days of receipt of the disbursement, transfers the disbursement to the Intermediary. The NMFA shall be notified by e-mail before the 15th of each month of the transfers made in the previous month. Such notification shall contain the amount transferred, the name of the recipient, the FMO Fund number, and the date of the transfer. 2.The Focal Point shall ensure that the Intermediary will establish two accounts, one for management costs and one for re-granting. Article 3.4 Increased cost If the cost of the management of the Fund should exceed the management cost stipulated in Article 2 paragraph 5 of the Grant Agreement, the Focal Point shall ensure that the Intermediary obtains or provides any such additional funds so as to ensure the full implementation of the Fund. Chapter 4 Obligations related to the Implementation of the FUND Article 4.1 Modification of the Fund 1. The following modification of the Fund is subject to the NMFA's prior written approval: (a) modification of the scope, objectives, purpose, or results of the Fund, (b) modification of the conditions for grants to end-recipients, (c) transfer between activities beyond 15% of the total amount of the Fund, (d) modification of any of the items described in Annex III to the Grant Agreement. 2. Before submitting the proposed modifications, the Focal Point shall approve them and confirm that they are necessary and/or suitable for the effectiveness of the Fund. 3. If there is a doubt as to whether the proposed modifications require approval by the NMFA, in particular when the modifications relate to issues described in Annex III to the Grant Agreement, the Focal Point shall consult the Financial Mechanism Office before such modification takes effect. 4. Modifications under paragraph 1 may require a new appraisal prior to being accepted or rejected. Article 4.2 Revision of the Project Implementation Plan The Focal Point must submit a revised Project Implementation Plan to the NMFA when: (a) proposing modification which requires an approval by the NMFA according to Article 4.1, provided that such modification affects the Project Implementation Plan, (b) any of the reporting periods for the Project Interim Reports scheduled in the Project Implementation Plan are changed; a revised Project Implementation Plan shall be submitted no later than 60 days before the end of the first affected reporting period, or, (c) the NMFA requests an updated Project Implementation Plan; a revised Project Implementation Plan shall be submitted no later than 30 days after such request is sent. Article 4.3 Special provisions on procurement and awarding of contracts 1.The Focal Point shall ensure that public procurement principles and procedures following from national and Community legislation are applied at any level in the implementation of the Grant Agreement. 2.In cases where contracts concluded as part of the implementation of the Fund fall below the national or Community thresholds set for public procurement or outside the scope of the applicable public procurement laws, the Focal Point shall ensure that the awarding of such contracts (including the procedures prior to the awarding) and the terms and conditions of such contracts comply with best economic practices, including accountability, allow a full and fair competition between potential providers, and ensure the optimal use of resources from the Norwegian Financial Mechanism 2004-2009. 3.The Focal Point shall ensure that the highest ethic standards are observed during the procurement and execution of contracts, and shall ensure the application of adequate and effective means to prevent illegal or corrupt practices. No offer, gifts, payments or benefit of any kind, which would or could, either directly or indirectly, be construed as an illegal or corrupt practice, e.g. as an inducement or reward for the award or execution of procurement contracts, shall be accepted. 4.The Focal Point shall ensure that records of the awarding and execution of contracts are kept and provided upon request to the NMFA. Article 4.4 Reporting The Focal Point shall provide Project Interim Reports, Annual Project Progress Reports and the Project Completion Report in accordance with the Beneficiary State Monitoring and Reporting Guidelines. Chapter 5 External Monitoring and Audit Article 5.1 Monitoring by the NMFA The NMFA may monitor the implementation and the progress of the Fund and/or its sub-projects in order to ensure that it is in compliance with the Grant Agreement. Article 5.2 Audit by the NMFA In accordance with Article 6.4 of the Rules and Procedures, the NMFA may at any time arrange its own audits and inspections of the Fund and/or its sub-project at all relevant locations. Article 5.3 Audit by Office of the Auditor General of Norway In accordance with Article 6.3 of the Rules and Procedures, the Office of the Auditor General of Norway may at any time conduct audits of the Fund and/or its sub-projects at all relevant locations. Article 5.4 Access 1.The Focal Point shall ensure that the NMFA and the Financial Mechanism Office or anyone mandated to perform tasks on their behalf, and the Office of the Auditor General of Norway, have upon request, prompt, full, and unimpeded access to all information, documents, persons, locations and facilities, public or private, relevant to the implementation of the Grant Agreement. Such access is subject to the applicable limitation under the national legislation of Beneficiary State. 2.The Focal Point shall, upon request, ensure that the above mentioned authorised representatives are accompanied by relevant personnel and provide them with the necessary assistance. Request under this paragraph shall be sent at least two weeks before the planned visit. Article 5.5 Responsibility The external monitoring and audit referred to in this chapter shall not in any way relieve the Focal Point of its obligations under the Grant Agreement regarding monitoring of the Fund and/or its sub-project, financial control and audit. Chapter 6 Suspension and reimbursements Article 6.1 Suspension of Disbursements 1.The NMFA may decide to suspend disbursements of the Grant if: (a) the conditions for disbursement in accordance with Article 3.2 have not been met, (b) credible information indicates that the implementation or the progress of the Project does not correspond to the Project Implementation Plan or is not in compliance with the Grant Agreement, (c) reports referred to in Article 4.4 or any other information requested has not been provided or include incomplete information, (d) access required under Chapter 5 is restricted, (e) the financial management of the Fund has not been in accordance with internationally recognised accounting principles, (f) it becomes aware of suspected or actual cases of irregularities or fraud, or if such cases have not been adequately reported, investigated or remedied, (g) the implementation of the Fund is deemed to be in violation of Community law, (h) a fundamental change of circumstances occurs and said circumstances constitute an essential basis for the Grant Agreement or the contribution from the Norwegian Financial Mechanism 2004-2009 to the Project, (i) it becomes aware of any misrepresentation of facts in any information given by or on behalf of the Focal Point affecting, directly or indirectly the implementation of the Grant Agreement, (j) interests generated on the designated bank account of the Paying Authority have not been accounted for according to Article 3.2 of the Disbursement Guidelines, (k) an adjustment of the Grant is required in order to comply with the grant rate referred to in the Grant Agreement or the requirements referred to in Article 3.2 of the Rules and Procedures, or (l) any other obligation stipulated in the Grant Agreement is not complied with by the Focal Point. 2. The NMFA may suspend payments if any of the conditions in littera (b), (e), or (g) applies to any of the sub-projects and the Intermediary has not complied with requests from the Focal Point and/or the NMFA to take the appropriate and necessary measures to remedy such deficiencies and prevent further loss of funds. Suspension due to deficiencies in sub-projects shall be proportionate to the scope and extent of the breach. 3. If possible, the Focal Point shall be given an opportunity to provide its views before the NMFA takes a decision to suspend disbursements. The decision to suspend disbursements shall be reasoned and immediately effective. The Focal Point shall be notified as soon as possible but no later than 7 workings days from the date of the decision. 4.The Focal Point can at any time present documents or other evidence showing that the conditions in paragraph 1 (a) to (l) no longer apply or do not justify suspension of disbursements, and request that the NMFA reviews its decision to suspend payments. 5.When the NMFA finds that the conditions described in paragraph 1 (a) to (l) above no longer apply or justify suspension of disbursements, it shall take a decision to continue disbursements. Article 6.2 Reimbursement 1.In case of serious non-compliance with the Grant Agreement, or if suspension of payments is not feasible or likely to be sufficient, the NMFA may, after having consulted the Focal Point with a view to reaching a solution, decide to demand reimbursement if any of the conditions referred to in littera (b) to (l) of Article 6.1.1, apply; or if Article 6.1.2 applies, demand reimbursement of funds intended or paid to end-recipients, subject to paragraph 2 of this article. 2.The NMFA shall not demand reimbursement of funds that were lost due to irregularities or misuse of funds in a sub-project, if the Focal Point shows that such a loss or its late detection is not due to a negligent or non performance of its or the Intermediary's duties, and the Focal Point and the Intermediary have taken all reasonable measures to recover such funds. 3. Prior to making a decision referred to in paragraph 1 of this article, the NMFA shall notify the Focal Point of its intention to demand reimbursement. The notification shall outline the reason for the proposed measures. The Focal Point can within 45 working days from the date of the notification provide any documents relevant to the decision. 4.At any time prior to the decision to demand reimbursement, the Focal Point and the NMFA can enter into a dialogue with a view to ensure that the said decision is based on accurate and correct facts. 5.The Focal Point shall be notified of a decision referred to in paragraph 1 of this article as soon as possible but no later than 7 workings days from the date of the decision. The notification shall outline the reason for the decision. 6.Within three months from the decision of the NMFA referred to in paragraph 1 of this article, the Focal Point shall, with the exception stipulated in paragraph 8 of this article, reimburse the NMFA the amount requested, subject to the specifications detailed in the decision. 7.Reimbursement from the Focal Point to the NMFA is not contingent upon reimbursement from the Intermediary or the end-recipient. 8.If the Intermediary is a private entity and the Focal Point shows that it has and is taking appropriate measures to recover the funds from the Intermediary, the NMFA can decide to give the Focal Point up to one year to reimburse the requested funds. In such a case, the NMFA can also decide to contribute up to 50% of reasonable legal fees related to the recovery of the funds from the Intermediary. 9. If a demand for reimbursement to the NMFA is not complied with by the Focal Point, or a dispute related to a demand for reimbursement arises that cannot be solved in accordance with Article 7.1, the Parties may bring the dispute before Oslo Tingrett in accordance with Article 1.7 of the Rules and Procedures. Article 6.3 General suspension of disbursements 1.The NMFA may, after having consulted the Focal Point with a view to reaching a solution, suspend payments if: (a) information or documents obtained by or provided to the NMFA indicate the presence of systemic or widespread shortcomings regarding the management of the financial contribution from the Norwegian Financial Mechanism 2004-2009 in the Beneficiary State, or (b) a demand for reimbursement related to any type of project assistance in the Beneficiary State financed by the Norwegian Financial Mechanism 2004-2009 has not been complied with by the Focal Point. 2.The procedures referred to in paragraphs 3 to 5 of Article 6.2 shall apply mutatis mutandis to suspension of disbursements under this article. 3.If the situation referred to in paragraph 1(a) of this article relate directly to this Fund, the NMFA can apply the procedures under Article 6.1. Chapter 7 Final provisions Article 7.1 Dispute settlement The Parties waive their rights to bring any dispute related to the Grant Agreement before any national or international court, and agree to settle such a dispute in an amicable manner. This article shall be without prejudice to paragraph 9 of Article 6.2. Article 7.2 Waiver of Responsibility 1.Any appraisal of the Fund undertaken before or after its approval by the NMFA, does not in any way diminish the responsibility of the Focal Point to verify and confirm the correctness of the documents and information forming the basis of the Grant Agreement. 2.Nothing contained in the Grant Agreement shall be construed as imposing upon the NMFA or the Financial Mechanism Office any responsibility of any kind for the supervision, execution, completion, or operation of the Fund or its sub-projects. 3.The NMFA does not assume any risk or responsibility whatsoever for any damages, injuries, or other possible adverse effects caused by the Fund or its sub-projects, including, but not limited to inconsistencies in the planning of the Fund, its sub-projects, other project(s) that might affect it or that it might affect, or public discontent. It is the full and sole responsibility of the Focal Point to satisfactorily address such issues. 4.Neither the Focal Point, nor the Intermediary, nor the end-recipients or any other party shall have recourse to the NMFA for further financial support or assistance to the Fund in whatsoever form over and above what has been provided for in the Grant Agreement. 5.Neither the European Free Trade Association, its Secretariat, including the Financial Mechanism Office, its officials or employees, nor the NMFA, its members or alternate members, nor the Kingdom of Norway, can be held liable for any damages or injuries of whatever nature sustained by the Focal Point or the Beneficiary State, the Intermediary, end-recipients or any other third person, in connection, be it direct or indirect, with the Grant Agreement. Article 7.3 Language 1.All communications shall take place in the English language. 2.To the extent that original documents are not available in the English language, the documents shall be accompanied by full and accurate translations into English. 3.The Focal Point shall bear the responsibility for the accuracy of the translation and the possible consequences that might arise from any inaccurate translations. Annex 2
Annex 3
EEA Financial Mechanism 2004-2009 Norwegian Financial Mechanism 2004-2009 Fund set-up 1. Description of sub projects 1.1 Eligible activities (sub-measures if any): The Fund shall provide financial support for activities carried out by non-governmental organizations in the priorities and sub-priorities set out in the EEA and Norwegian Financial Mechanisms. The Fund shall support activities within a framework based on three measures: - NGO activity support measure, providing support for regular NGO activities in accordance with NGO long term action plans and annual work programmes; - NGO capacity strengthening measure, providing support for new organizations or such organizations which want to start their activity in a new field and need a financial push forward; - NGO project measure, providing support for implementation of projects in priority fields of the EEA Financial Mechanism and Norwegian Financial Mechanism. 1.2 Eligible applicants: Eligible applicants must be NGOs - societies, foundations and social partners. Applicants must be registered in the Republic of Latvia. Eligible applicants must fulfil the following conditions; voluntary organizations (established on a voluntary basis and voluntary participation); independent legal body; act in the interest for a wider societal benefit on a nonprofit basis; employers organizations registered in Latvia as society or foundation; trade unions acting in Latvia in compliance with the law on trade unions. 1.3 Minimum and maximum grant amount per sub project: Measure 1
Measure 2: Minimal amount of grant is 5,000 EUR. Maximal amount of grant is 30,000 EUR. Measure 3: Minimal amount of grant is 8,000 EUR. Maximal amount of grant is 100,000 EUR. 1.4 Duration of sub projects: Measure 1: Minimum: 1 year Maximum 3,2 years (38 months) Measure 2: Minimum: No limitation Maximum 1,5 years (18 months) Measure 3: Minimum: No limitation Maximum: 2 years 1.5 Co-financing: A grant from the Fund shall not exceed 90 percent of total eligible costs of the sub-project. The remaining cost of the sub-project shall be provided or obtained by the end-recipient from other sources. 1.6 Eligibility of costs, including in-kind: Costs are eligible if they are justified, necessary and appropriate, related to the sub-project's long term effects and planned results. Further, eligible costs must be duly explained and in line with the Detailed eligibility provisions - expenditure guideline. Eligible costs vary between the three measures due the different focus each of the measures. Eligible costs in measure 1 are concentrated on day-to-day activities. Eligible costs in measure 2 are concentrated on strengthening of organisational capacity including limited infrastructure improvements. Eligible costs in measure 3 are concentrated on project related activities such travel & subsistence and external expertise. In-kind contributions that fall within Article 2.2 of the Detailed Eligibility Provisions - Expenditure are eligible. In-kind contribution can constitute up to 5 percent of the total eligible cost of the sub-project. 2. Selection of sub projects 2.1 Institutional set-up: The SIF Council, which is appointed and approved by the Cabinet of Ministers, shall act as the Steering Committee for the operation and is responsible for administrative, financial and technical implementation of the Fund. The SIF Council takes decisions with regard to approval or rejection of each proposal. The Evaluation Committee, appointed by the SIF Council, will carry out the quality assessment of applications for grants. The Evaluation Committee consists of 5 voting members selected on the basis of open competition, including the NGO community, and a non-voting chairman representing the Intermediary. The Evaluation Committee reports to the SIF Council. The Director of SIF has the signatory powers of the Fund and functions as the executer of State budget allocated for Fund. The grant contract with the end-recipient shall be signed by the Director of SIF. 2.2 Selection process and procedures: The availability of grants from the Fund shall be announced in an open call. Applications shall be submitted to the Intermediary, which shall conduct the administrative and eligibility check of applications and sub-projects. The eligible applications shall be forwarded the Evaluation Committee for quality and financial assessment. External assessors may be involved in the appraisal of the sub-projects. The Evaluation Committee shall provide a ranked list of projects for approval by the SIF Council. The Intermediary shall inform applicants whose applications are rejected about the reasons for the rejection. Applicant whose application is rejected due to non-compliance with administrative or eligibility criteria can request the Intermediary to review its decision. The applicant shall submit such a request within 10 days from being notified about the rejection and shall provide reasons for why the decision should be overturned. 2.3 Selection criteria: All applications are subject to administrative and eligibility checks described in all three activity support measures (annex 2, 3 & 4 to the application). Separate selection criteria for quality assessment have been developed for each measure reflecting the main objectives (sub criteria are developed under each main criterion): Measure 1: A set of evaluation criteria are developed covering the following subjects (sub criteria are developed under each main criteria); applicant's previous activities; annual work program; activity long-term program. Measure 2: A set of evaluation criteria are developed covering the following subjects (sub criteria are developed under each main criteria); necessity for capacity building; long-term action plan; relevance and nature of sub-projects; applicants' implementation capacity. Measure 3: A set of evaluation criteria are developed covering the following subjects (sub criteria are developed under each main criteria); budget and cost-effectiveness; relevance; methodology; sustainability; financial and operational capacity. Scoring (for all measures): The evaluation criteria are divided into sections and subsections. Each subsection must be given a score between 1 and 5 in accordance with the following guidelines: 1=very poor; 2=poor; 3=adequate; 4=good; 5=very good. The applications with the highest scores shall be given priority when grants are awarded. The maximum score is 100. 2.4 Open calls and availability of funds (including number of calls, duration of calls, and estimated size): Measure 1: Total indicative amount that is available for measure 1 is 40% of total grant amount, that is 2,106,268 EUR. The Intermediary shall organise four calls for measure 1. The first call shall be opened as soon as possible after the Grant Agreement enters into force. The second call shall be opened no later than 1 October 2007, the third no later than 1 October 2008, and the last one no later than 1 October 2009. Each call shall be open for at least two months. The division between the calls are as follows; 45% for the first call in 2007, 31% for the second call in 2007, 16% for the call in 2008 and 8% for the call in 2009. Measure 2: Total indicative amount that is available within the framework of this program is 20 % of the total grant amount, or 1,053,134 EUR. The Intermediary shall organise four calls for measure 2. The division between the calls are as follows; 40% for the first call in 2007, 30 % for the second call in 2007, 20 % for the call in 2008 and 10 % for the call in 2009. Measure 3 Total indicative amount that is available within the framework of this program is 40% of total grant amount, or 2,106,268 EUR. The Intermediary shall organise four calls for measure 3. The division between the calls are as follows; 30% for the first call in 2007, 30 % for the second call in 2007, 20 % for the call in 2008 and 20 % for the call in 2009. 3. Arrangement by Intermediary for monitoring and receiving reports from end-recipients The monitoring unit of the Intermediary shall be responsible for monitoring and controlling implementation of the supported sub-projects (regular communication with end-recipients on relevant issues and monitoring visits, checking payment requests, progress, technical and financial reports.) The financial control unit of the Intermediary shall be responsible for providing consultations on financial and accounting issues to the programme unit, which is the secretariat to the SIF Council. The financial control unit shall throughout the life-cycle of sub projects conduct relevant double checks (grant contracts, financial reports, and payment requests). The internal audit unit of the Intermediary shall perform audits to a number of selected end-recipients during or after implementation of sub projects Reports shall be prepared according to the format provided in the contract between the end recipients and the Intermediary. End-recipients shall submit quarterly interim reports and a completion report. The interim report shall include information on progress and payments made. The completion report shall include documentation of activities and payments. 4. Reporting from Intermediary to Focal Point The Intermediary shall submit quarterly Project Interim Reports to the Focal point. The reports shall be prepared and submitted in accordance with the Beneficiary State Reporting and Monitoring Guideline and the Disbursement Guideline. 5. Disbursements to Intermediary (management costs) 5.1 Advance payment scheme: 20 percent of the management costs will be disbursed as an advance payment, to be set off when 80 percent of the management cost has been disbursed. 5.2 Subsequent disbursements: Disbursement of incurred costs will be made following acceptance of Project Interim Reports. Final disbursement of the balance of the incurred management costs will be made following acceptance of the Project Completion Report. 6. Disbursement to Intermediary (funds for re-granting) 6.1 Advance payment scheme: Disbursements of the funds for re-granting will be made as advance payment in a manner to be set out in the Project Implementation Plan and requested through the Project Interim Reports. It shall ensure that sufficient funds are available for a timely transfer of funds to the end-recipients, whether advance payments, subsequent instalments, or final payments. 6.2 Subsequent disbursements: N/A 7. Disbursements to end-recipients 7.1 First date of eligibility: Costs in sub-projects become eligible at the date of the grant decision by the Intermediary. 7.2 Advance payments and disbursements: Sub-project applications may qualify for an initial advance payment of up to 25 percent of the total grant which shall be paid at the time of the signing of the agreement between the Intermediary and the end-recipient. An additional 55 percent of the grant may be paid as advance instalments, in equal shares for each quarter of the scheduled implementation, after submission of a quarterly interim report. The remaining 20 percent of the grant shall be paid when the completion report has been approved by the Intermediary. If the sub-project lasts three months or less, no interim report is necessary, initial advance payment is 80% and the remaining amount of the grant will be paid after the approval of the final report. 8. Publicity 8.1 Intermediary level: The publicity measures shall be in accordance with the Publicity Guidelines and the submitted publicity plan. They shall ensure transparency by providing possible applicants with adequate and high quality information about EEA Grants in general, as well as be designed to raise public awareness and disseminate information about the Fund. In the first year of implementation the focus of the publicity measures shall be on informing the broader public about opportunities provided under the Financial Mechanisms and encourage development of project ideas to be submitted to the Fund. Activities in this period include: advertisements, electronic leaflet, booklet and seminars and development of a website. Information and publicity activities shall continue throughout the operation in order to raise awareness of the available funds. Before and during the call launch, advertisements shall be made in national newspapers of the Republic of Latvia (in Latvian and Russian). The call shall take into account the principles of the Open Calls Guide. In the subsequent years, follow-up advertisements shall be published at least once a year. An electronic leaflet informing about the launch of the Fund and informing about seminars shall be developed. The Intermediary shall organise one to three information seminars in Riga, depending on number of participants, and at least one seminar in each of the regions. A list of approved grant applications shall be published and regularly updated on the websites of the Intermediary and the Focal Point. 8.2 Sub project level: The end-recipient must ensure that appropriate visibility and credit is given to EEA Financial Mechanism and Norwegian Financial Mechanism. This should be done in reports and publications stemming from the sub projects, or during public events associated with the sub project. Norwegian Financial Mechanism 2004-2009 GRANT AGREEMENT between The Royal Norwegian Ministry of Foreign Affairs Hereinafter referred to as the "NMFA" and The Ministry of Finance of the Republic of Latvia, hereinafter referred to as the "Focal Point", representing the Republic of Latvia, hereinafter referred to as the
"Beneficiary State" Article 1 Scope 1. This Grant Agreement between the NMFA and the Focal Point lays down the rights and obligations of the Parties regarding the implementation of the Fund and the financial contribution from the Norwegian Financial Mechanism 2004-2009 to the Fund. 2. The Terms and Conditions (Annex I), the Project Implementation Plan (Annex II), and the description of the Fund set-up (Annex III) shall form an integral part of this Grant Agreement. Any reference to the Grant Agreement includes a reference to its annexes. 3. Modifications of the Fund and the Project Implementation Plan can be carried out in accordance with Articles 4.1 and 4.2 of the Terms and Conditions. 4. This Grant Agreement is based on information provided by, through, or on behalf of the Focal Point to the NMFA in the application for the Grant dated 24 July 2006, and on any other written information provided or confirmed by the Focal Point. Article 2 Grant 1. The NMFA shall, subject to the rules stipulated in the legal framework referred to in Article 1.2 of the Terms and Conditions, make available to the Focal Point a financial grant (hereinafter referred to as "the Grant") to be used exclusively to finance the eligible cost of the Fund. The Grant shall not exceed the amount of EUR 248,656. 2. The estimated eligible cost of the Fund is EUR 585,074. 3. The estimated total cost of the Fund is EUR 585,074. 4. The grant rate shall not exceed 42.5 percent of the total, final eligible cost for the Fund. This grant rate shall not be exceeded at any point during the implementation of the Fund. Further information on the funding is provided in the Project Implementation Plan (Annex II). 5. The management cost of the Intermediary shall not exceed EUR 58,507. Article 3 Description of the Fund The purpose of the Fund is to support development of individual projects ideas in the priority areas of the EEA Financial Mechanism and the Norwegian Financial Mechanism and to establish new partnerships for the purpose of designing new projects, with the overall objective of strenghtening the quality of project application within the priority areas and facilitating access to the funds provided by the mechanisms. Reference is made to the application, dated 24 July 2006, and correspondence with the Focal Point on 4 September 2006 and 19 September 2006. The completed Fund shall include the following activities and results: Administering the re-granting of funds, including monitoring and financial control. Publicity measures aimed at increasing public awareness about opportunities to apply for funds from EEA Grants. The Intermediary is the Society Integration Foundation. The Latvian government shall provide at least 15 percent of the estimated eligible project cost. Further information on activities and results is provided in the Project Implementation Plan (Annex II). Further information on the Fund's set-up is provided in Annex III. Article 4 Eligibility of expenses 1. Unless otherwise agreed by the parties, the Detailed Eligibility Provisions - Expenditures dated 24 May 2006 shall be applicable to the implementation of the Fund. 2. Eligibility of expenditures incurred under sub-projects is stipulated in Annex III. 3 Expenditures incurred before 9 January 2007 are not eligible. 4. Expenditures incurred after 9 July 2010 are not eligible. Article 5 Disbursements 1. The NMFA may retain up to 2.5 % of the management cost until the Project Completion Report referred to in Article 4.4 of the Terms and Conditions has been approved by the NMFA. 2. Disbursements shall be made in EUR to the following bank account of the Beneficiary State: Account Holder: The Treasury of the Republic of Latvia IBAN: LV96 LACB 0000 0000 11657 Swift/BIC Code: LACBLV2X Bank Name: The Bank of Latvia Bank Address: LV-1050 Riga, Kr.Valdemara Street 3. Provisions on advance payments are stipulated in Annex III to the Grant Agreement. Article 6 Conditions for the awarding of the Grant 1. The grant is awarded under the following general conditions Any interest earned on the account holding the funds for re-granting shall be reported in the final payment claim and reimbursed. 2. The following conditions shall be fulfilled prior to the first disbursement: Not Applicable 3. The following conditions shall be fulfilled before the completion of the Fund: Not Applicable 4. The Focal Point shall ensure that the Intermediary takes in a timely manner the necessary steps to fulfill the conditions described above. Article 7 Specific post completion obligations After the completion of the Fund, the Focal Point shall comply with the following specific post completion obligations: Not applicable Article 8 Contact information 1. The addresses of the Parties to this Grant Agreement and other relevant bodies at the time of signing are as follows: Focal Point: Ministry of Finance of the Republic of Latvia Att: Ronalds Fisers Smilšu str. 1 Riga LV-1919 Latvia Telephone: +371 7095 535/422 Fax: 371 7095 601 E-mail: Ronalds.Fisers@fm.gov.lv NMFA and the Financial Mechanism Office: The Financial Mechanism Office European Free Trade Association Att.: Director of the Financial Mechanism Office Boulevard du Régent 47-48 B-1000 Brussels Belgium Telephone: +32 (0)2 286 1701 Telefax (general): +32 (0)2 286 1789 E-mail: fmo@efta.int Intermediary: Society Integration Foundation Brivibas iela 40-39 LV-1050 Riga Latvia Telephone: +371 7281 752 Fax: +371 7078 224 Email: info@lsif.lv Disbursement Agent: BBVA Avenue des Arts 43 1040 Brussels Belgium 2. Changes of the above contact information shall be given in writing without undue delay by each party to this Grant Agreement. Article 9 Entry into force and duration 1. This Grant Agreement shall enter into force on the date of the last signature of the Parties. 2. This Grant Agreement shall remain in force until 5 years have elapsed after the date of the acceptance of the Project Completion Report. ******** This Grant Agreement is drawn up in two originals in the English language. Signed in Brussels Signed in Riga on 15.03.2007 on 28.06.2007 For the NMFA For the Focal Point Anders Erdal Irēna Krūmane Deputy Director General State Secretary Annex 1
Terms and Conditions for Funds
(Block Grants,
Chapter 1 SCOPE, Legal
Framework, Article 1.1 Scope These terms and conditions form an integral part of the Grant Agreement and shall apply to the implementation of the Fund. Article 1.2 Legal Framework The Grant Agreement shall be read in conjunction with the following documents which, together with the Grant Agreement, constitute the legal framework of the Norwegian Financial Mechanism 2004-2009: (a) The Agreement of 14 October 2003 between the Kingdom of Norway and the European Community on a Norwegian Financial Mechanism for the period 2004-2009; (b) The Rules and Procedures for the implementation of the Norwegian Financial Mechanism 2004-2009 adopted by the NMFA in accordance with Article 8(2) of the Agreement referred to in litra (a) above, as amended; (c) The Memorandum of Understanding on the Implementation of the Norwegian Financial Mechanism 2004-2009, entered into between the Kingdom of Norway and the Beneficiary State. Article 1.3 Definitions General terms, institutions and documents referred to in the Grant Agreement shall be understood in accordance with the provisions of the legal framework referred to in Article 1.2. Chapter 2 General Principles related to the Implementation of the FUND Article 2.1 Co-operation 1. The Parties shall take all appropriate and necessary measures to ensure fulfilment of the obligations and objectives arising out of the Grant Agreement. 2. The Parties agree to provide all information necessary for the good functioning of the Grant Agreement and to apply the highest degree of transparency and accountability as well as the principles of good governance, sustainable development and gender equality. 3. The Parties shall promptly inform each other of any circumstances that interfere or threaten to interfere with the successful implementation of the Fund. Article 2.2 Representation and communication All communication to the NMFA in regard to the Grant Agreement shall be directed to the Financial Mechanism Office, which generally represents the NMFA towards the Focal Point. Article 2.3 Main responsibilities of the Focal Point 1. The Focal Point is responsible and accountable for the overall management of the EEA Financial Mechanism 2004-2009 in the Beneficiary State. 2. The Focal Point shall be responsible for the implementation of the Grant Agreement and shall: (a) ensure that the Fund is implemented in accordance with the Grant Agreement (b) take all necessary steps to ensure that the Intermediary is fully committed and able to implement and manage the Fund (c) ensure that the Grant is used exclusively for the purpose of the Fund and its subprojects and according to the approved Project Implementation Plan and that any necessary financial contributions in addition to the Grant are received in a timely manner (d) ensure that the Intermediary takes appropriate measures to remedy irregularities in sub-projects, including measures to recover misspent funds (e) ensure that all relevant Community, national and local legislation (including, but not limited to legislation on the environment, public procurement and state aid) shall be fully complied with (f) ensure that all assets forming part of the Fund are used only for such purposes as provided for in the Grant Agreement (g) ensure publicity of the Fund in accordance with Article 5.4 of the Rules and Procedures and the Publicity Guidelines (h) ensure that the NMFA is upon request provided with all documents and information related to the implementation of the Fund (i) make all the necessary and appropriate arrangements in order to strengthen or change the way the Fund is managed. Article 2.4 Monitoring and audit by the Focal Point 1. The Focal Point shall be responsible for monitoring of the Fund and its sub-projects. The monitoring shall be thorough enough to enable the Focal Point to certify the information provided by the Intermediary in the reports referred to in the Beneficiary State Reporting and Monitoring Guidelines. 2. The Focal Point shall ensure a complete audit trail in all engaged actors in accordance with Article 6.1 of the Rules and Procedures and sound accounting principles and methods. 3. The Focal Point shall ensure that audit of the Fund and its sub-projects is conducted in accordance with the audit plan provided according to Article 6.2 of the Rules and Procedures. If necessary, the Focal Point shall draw upon services of a reputable and well established audit company. Furthermore, the Fund should be included in the existing control/audit procedures of the Intermediary. 4. The Focal Point shall, in accordance with Article 6.2 of the Rules and Procedures, provide the NMFA with summaries of all audit reports relevant to the Fund and/or its sub-projects. The Focal Point shall upon request provide the Financial Mechanism Office, the NMFA, or the Office of the Auditor General of Norway with any audit report relevant to the Fund and/or its sub-projects, including auditing reports from the Supreme Audit Institution. Article 2.5 Immediate reporting on irregularities and other relevant developments 1. The Focal Point shall ensure efficient and prompt investigation of any suspected and actual cases of fraud and irregularity. The Focal Point shall, in accordance with the Irregularities Guidelines adopted by the NMFA, immediately report to the NMFA all suspected and actual cases of fraud and irregularity as well as all measures related thereto, taken by competent national authorities. 2. The Parties shall immediately inform each other if they become aware of any legal actions initiated or continued against the Fund and/or its sub-projects, including actions or decisions taken by the European Community institutions. Article 2.6 Implementation contract with the Intermediary 1. The Focal Point shall ensure the signing of a contract with the Intermediary on the implementation of the Fund. Such implementation contract shall ensure that the obligations undertaken by the Focal Point in this Agreement are properly delegated to the Intermediary in a manner which ensures enforceability of these obligations. In cases where the Grant, due to provisions in the national legislation, cannot be disbursed to the Intermediary on the basis of an implementation contract, the Beneficiary State may instead issue a legislative or administrative act of similar effect. 2. Delegation of obligations referred to in paragraph 1 of this Article does not in any way affect the obligations and responsibilities of the Focal Point under this Grant Agreement. 3. Prior to the first disbursement, the Focal Point shall have submitted to the NMFA a standard version of such an implementation contract or implementation act. 4. Prior to the first disbursement, the Focal Point shall provide the NMFA with the following information on the contract or act relevant to the Fund: (a) full legal name of the Intermediary; (b) number of application (FMO number) and name of Fund; (c) date of entry into force of the contract or date of issuance of the act, and (d) information as to which standard version of the contract or act is used for the Fund. 5. If the standard version of the contract or the act has already been sent to the NMFA, the reference in paragraph 4(d) of this article is to be considered a fulfilment of paragraph 3. 6. Upon request, the Focal Point shall provide the NMFA with a copy of the implementation agreement or act, accompanied by a translation into English. Article 2.7 Representations and Warranties The Focal Point represents and warrants that the information provided by, through, or on behalf of the Focal Point in connection with the application for funding, and the conclusion and implementation of this Grant Agreement are authentic, accurate and complete. Chapter 3 Disbursement And Eligibility Article 3.1 Eligible Expenditures 1. Only expenses that are eligible according to Article 3.1 of the Rules and Procedures and the Detailed Eligibility Provisions - Expenditures can form the basis for the financing from the Norwegian Financial Mechanism 2004-2009. 2. Final acceptable payment claims must be received within six months of the last date for eligible expenditures referred to in Article 4 of the Grant Agreement. Payment claims received at a later date or deemed not acceptable by the NMFA will not constitute a basis for disbursement. 3. The NMFA can, in accordance with Article 3.1.3 of the Rules and Procedures, extend the period of eligibility. Article 3.2 Disbursement of the Grant 1. Disbursements are made in accordance with the approved Project Implementation Plan based on requests for disbursements submitted by the Paying Authority. 2. Before disbursement can be made, the NMFA shall be provided with a Project Interim Report both in electronic and hard copy, certified by the Focal Point and the Paying Authority in accordance with the Disbursement Guidelines and the Beneficiary State Reporting and Monitoring Guidelines. The Project Interim Report shall cover a period of at least 3 calendar months and be related to expenditures from that period. 3. When the required documents have been provided the NMFA shall verify that they are in the correct form and that the conditions for the disbursement have been met. Unless the NMFA decides to make use of remedies provided in Chapter 6, the Financial Mechanism Committee shall as soon as possible and within two months from the receipt of the disbursement request, order its Disbursement Agent to execute the disbursement in question to the Paying Authority. The NMFA shall notify the Paying Authority when such disbursement order has been submitted. 4. In case of an error made in relation to a disbursement resulting in a higher amount paid than required under the Grant Agreement, the Focal Point shall, upon request from the NMFA, reimburse without delay any amount unduly disbursed. Similarly, if an error results in a lower amount paid than required, the NMFA shall, as soon as possible after being made aware of such an error, disburse the missing amount. 5. The principle of pro rata financing of costs incurred shall apply, meaning that the grant rate referred to in Article 2 of the Grant Agreement shall not be exceeded at any time during the implementation of the Project. This is without prejudice to Article 3.4. 6. When the disbursement has been made, and received by the Paying Authority in full, the NMFA has fulfilled its obligations relating to that disbursement. 7. If any of the conditions justifying suspension of disbursements or reimbursement of funds under Articles 6.1.1 or 6.2.1 apply, the NMFA may instruct the Focal Point, that disbursed funds may not be used for any or all of the subprojects to which such conditions apply, and/or for management cost if the conditions relate to the role of the Intermediary. The Focal Point shall ensure that the Intermediary will act in compliance with such an instruction. Article 3.3 Transfer and Use of the Grant 1. The Focal Point shall ensure that the Paying Authority, within fifteen working days of receipt of the disbursement, transfers the disbursement to the Intermediary. The NMFA shall be notified by e-mail before the 15th of each month of the transfers made in the previous month. Such notification shall contain the amount transferred, the name of the recipient, the FMO project number, and the date of the transfer. 2. The Focal Point shall ensure that the Intermediary will establish two accounts, one for management costs and one for re-granting. Article 3.4 Increased cost If the cost of the management of the Fund should exceed the management cost stipulated in Article 2 paragraph 5 of the Grant Agreement, the Focal Point shall ensure that the Intermediary obtains or provides any such additional funds so as to ensure the full implementation of the fund. Chapter 4 Obligations related to the Implementation of the FUND Article 4.1 Modification of the Fund 1. The following modification of the Fund is subject to the NMFA's prior written approval: (a) modification of the scope, objectives, purpose, or results of the Fund, (b) modification of the conditions for grants to end-recipients, (c) transfer between activities beyond 15% of the total amount of the Fund, (d) modification of any of the items described in Annex III to the Grant Agreement. 2. Before submitting the proposed modifications, the Focal Point shall approve them and confirm that they are necessary and/or suitable for the effectiveness of the Fund. 3. If there is a doubt as to whether the proposed modifications require approval by the NMFA, in particular when the modifications relate to issues described in Annex III to the Grant Agreement, the Focal Point shall consult the Financial Mechanism Office before such modification takes effect. 4. Modifications under paragraph 1 may require a new appraisal prior to being accepted or rejected. Article 4.2 Revision of the Project Implementation Plan The Focal Point must submit a revised Project Implementation Plan to the NMFA when: (a) proposing modification which requires an approval by the NMFA according to Article 4.1, provided that such modification affects the project Implementation Plan, (b) any of the reporting periods for the Project Interim Reports scheduled in the Project Implementation Plan are changed; a revised Project Implementation Plan shall be submitted no later than 60 days before the end of the first affected reporting period, or, (c) the NMFA requests an updated Project Implementation Plan; a revised Project Implementation Plan shall be submitted no later than 30 days after such request is sent. Article 4.3 Special provisions on procurement and awarding of contracts 1. The Focal Point shall ensure that public procurement principles and procedures following from national and Community legislation are applied at any level in the implementation of the Grant Agreement. 2. In cases where contracts concluded as part of the implementation of the Fund fall below the national or Community thresholds set for public procurement or outside the scope of the applicable public procurement laws, the Focal Point shall ensure that the awarding of such contracts (including the procedures prior to the awarding) and the terms and conditions of such contracts comply with best economic practices, including accountability, allow a full and fair competition between potential providers, and ensure the optimal use of resources from the Norwegian Financial Mechanism 2004-2009. 3. The Focal Point shall ensure that the highest ethic standards are observed during the procurement and execution of contracts, and shall ensure the application of adequate and effective means to prevent illegal or corrupt practices. No offer, gifts, payments or benefit of any kind, which would or could, either directly or indirectly, be construed as an illegal or corrupt practice, e.g. as an inducement or reward for the award or execution of procurement contracts, shall be accepted. 4. The Focal Point shall ensure that records of the awarding and execution of contracts are kept and provided upon request to the NMFA. Article 4.4 Reporting The Focal Point shall provide Project Interim Reports, Annual Project Progress Reports and the Project Completion Report in accordance with the Beneficiary State Monitoring and Reporting Guidelines. Chapter 5 External Monitoring and Audit Article 5.1 Monitoring by the NMFA The NMFA may monitor the implementation and the progress of the Fund and/or its sub-projects in order to ensure that it is in compliance with the Grant Agreement. Article 5.2 Audit by the NMFA In accordance with Article 6.4 of the Rules and Procedures, the NMFA may at any time arrange its own audits and inspections of the Fund and/or its sub-project at all relevant locations. Article 5.3 Audit by Office of the Auditor General of Norway In accordance with Article 6.3 of the Rules and Procedures, the Office of the Auditor General of Norway may at any time conduct audits of the Fund and/or its sub-projects at all relevant locations. Article 5.4 Access 1. The Focal Point shall ensure that the NMFA and the Financial Mechanism Office or anyone mandated to perform tasks on their behalf, and the the Office of the Auditor General of Norway, have upon request, prompt, full, and unimpeded access to all information, documents, persons, locations and facilities, public or private, relevant to the implementation of the Grant Agreement. Such access is subject to the applicable limitation under the national legislation of Beneficiary State. 2. The Focal Point shall, upon request, ensure that the above mentioned authorised representatives are accompanied by relevant personnel and provide them with the necessary assistance. Request under this paragraph shall be sent at least two weeks before the planned visit. Article 5.5 Responsibility The external monitoring and audit referred to in this chapter shall not in any way relieve the Focal Point of its obligations under the Grant Agreement regarding monitoring of the Fund and/or its sub-project, financial control and audit. Chapter 6 Suspension and reimbursements Article 6.1 Suspension of Disbursements 1. The NMFA may decide to suspend disbursements of the Grant if: (a) the conditions for disbursement in accordance with Article 3.2 have not been met, (b) credible information indicates that the implementation or the progress of the Project does not correspond to the Project Implementation Plan or is not in compliance with the Grant Agreement, (c) reports referred to in Article 4.4 or any other information requested has not been provided or include incomplete information, (d) access required under Chapter 5 is restricted, (e) the financial management of the Fund has not been in accordance with internationally recognised accounting principles, (f) it becomes aware of suspected or actual cases of irregularities or fraud, or if such cases have not been adequately reported, investigated or remedied, (g) the implementation of the Fund is deemed to be in violation of Community law, (h) a fundamental change of circumstances occurs and said circumstances constitute an essential basis for the Grant Agreement or the contribution from the Norwegian Financial Mechanism 2004-2009 to the Project, (i) it becomes aware of any misrepresentation of facts in any information given by or on behalf of the Focal Point affecting, directly or indirectly the implementation of the Grant Agreement, (j) interests generated on the designated bank account of the Paying Authority have not been accounted for according to Article 3.2 of the Disbursement Guidelines, (k) an adjustment of the Grant is required in order to comply with the grant rate referred to in the Grant Agreement or the requirements referred to in Article 3.2 of the Rules and Procedures, or (l) any other obligation stipulated in the Grant Agreement is not complied with by the Focal Point. 2. The NMFA may suspend payments if any of the conditions in littera (b), (e), or (g) applies to any of the sub-projects and the Intermediary has not complied with requests from the Focal Point and/or the NMFA to take the appropriate and necessary measures to remedy such deficiencies and prevent further loss of funds. Suspension due to deficiencies in sub-projects shall be proportionate to the scope and extent of the breach. 3. If possible, the Focal Point shall be given an opportunity to provide its views before the NMFA takes a decision to suspend disbursements. The decision to suspend disbursements shall be reasoned and immediately effective. The Focal Point shall be notified as soon as possible but no later than 7 workings days from the date of the decision. 4. The Focal Point can at any time present documents or other evidence showing that the conditions in paragraph 1 (a) to (l) no longer apply or do not justify suspension of disbursements, and request that the NMFA reviews its decision to suspend payments. 5. When the NMFA finds that the conditions described in paragraph 1 (a) to (l) above no longer apply or justify suspension of disbursements, it shall take a decision to continue disbursements. Article 6.2 Reimbursement 1. In case of serious non-compliance with the Grant Agreement, or if suspension of payments is not feasible or likely to be sufficient, the NMFA may, after having consulted the Focal Point with a view to reaching a solution, decide to demand reimbursement if any of the conditions referred to in littera (b) to (l) of Article 6.1.1, apply; or if Article 6.1.2 applies, demand reimbursement of funds intended or paid to end-recipients, subject to paragraph 2 of this article. 2. The NMFA shall not demand reimbursement of funds that were lost due to irregularities or misuse of funds in a sub-project, if the Focal Point shows that such a loss or its late detection is not due to a negligent or non performance of its or the Intermediary's duties, and the Focal Point and the Intermediary have taken all reasonable measures to recover such funds. 3. Prior to making a decision referred to in paragraph 1 of this article, the NMFA shall notify the Focal Point of its intention to demand reimbursement. The notification shall outline the reason for the proposed measures. The Focal Point can within 45 working days from the date of the notification provide any documents relevant to the decision. 4. At any time prior to the decision to demand reimbursement, the Focal Point and the NMFA can enter into a dialogue with a view to ensure that the said decision is based on accurate and correct facts. 5. The Focal Point shall be notified of a decision referred to in paragraph 1 of this article as soon as possible but no later than 7 workings days from the date of the decision. The notification shall outline the reason for the decision. 6. Within three months from the decision of the NMFA referred to in paragraph 1 of this article, the Focal Point shall, with the exception stipulated in paragraph 8 of this article, reimburse the NMFA the amount requested, subject to the specifications detailed in the decision. 7. Reimbursement from the Focal Point to the NMFA is not contingent upon reimbursement from the Intermediary or the end-recipient. 8. If the Intermediary is a private entity and the Focal Point shows that it has and is taking appropriate measures to recover the funds from the Intermediary, the NMFA can decide to give the Focal Point up to one year to reimburse the requested funds. In such a case, the NMFA can also decide to contribute up to 50% of reasonable legal fees related to the recovery of the funds from the Intermediary. 9. If a demand for reimbursement to the NMFA is not complied with by the Focal Point, or a dispute related to a demand for reimbursement arises that cannot be solved in accordance with Article 7.1, the Parties may bring the dispute before Oslo Tingrett in accordance with Article 1.7 of the Rules and Procedures. Article 6.3 General suspension of disbursements 1. The NMFA may, after having consulted the Focal Point with a view to reaching a solution, suspend payments if: (a) information or documents obtained by or provided to the NMFA indicate the presence of systemic or widespread shortcomings regarding the management of the financial contribution from the Norwegian Financial Mechanism 2004-2009 in the Beneficiary State, or (b) a demand for reimbursement related to any type of project assistance in the Beneficiary State financed by the Norwegian Financial Mechanism 2004-2009 has not been complied with by the Focal Point. 2. The procedures referred to in paragraphs 3 to 5 of Article 6.2 shall apply mutatis mutandis to suspension of disbursements under this article. 3. If the situation referred to in paragraph 1(a) of this article relate directly to this Fund, the NMFA can apply the procedures under Article 6.1. Chapter 7 Final provisions Article 7.1 Dispute settlement The Parties waive their rights to bring any dispute related to the Grant Agreement before any national or international court, and agree to settle such a dispute in an amicable manner. This article shall be without prejudice to paragraph 9 of Article 6.2. Article 7.2 Waiver of Responsibility 1. Any appraisal of the Fund undertaken before or after its approval by the NMFA, does not in any way diminish the responsibility of the Focal Point to verify and confirm the correctness of the documents and information forming the basis of the Grant Agreement. 2. Nothing contained in the Grant Agreement shall be construed as imposing upon the NMFA or the Financial Mechanism Office any responsibility of any kind for the supervision, execution, completion, or operation of the Fund or its sub-projects. 3. The NMFA does not assume any risk or responsibility whatsoever for any damages, injuries, or other possible adverse effects caused by the Fund or its sub-projects, including, but not limited to inconsistencies in the planning of the Fund, its sub-projects, other project(s) that might affect it or that it might affect, or public discontent. It is the full and sole responsibility of the Focal Point to satisfactorily address such issues. 4. Neither the Focal Point, nor the Intermediary, nor the end-recipients or any other party shall have recourse to the NMFA for further financial support or assistance to the Fund in whatsoever form over and above what has been provided for in the Grant Agreement. 5. Neither the European Free Trade Association, its Secretariat, including the Financial Mechanism Office, its officials or employees, nor the NMFA, its officials or employees, nor the Kingdom of Norway, can be held liable for any damages or injuries of whatever nature sustained by the Focal Point or the Beneficiary State, the Intermediary, end-recipients or any other third person, in connection, be it direct or indirect, with the Grant Agreement. Article 7.3 Language 1. All communications shall take place in the English language. 2. To the extent that original documents are not available in the English language, the documents shall be accompanied by full and accurate translations into English. 3. The Focal Point shall bear the responsibility for the accuracy of the translation and the possible consequences that might arise from any inaccurate translations. Annex 2
Annex 3 EEA Financial Mechanism 2004-2009 Norwegian Financial Mechanism 2004-2009 Fund set-up 1. Description of sub-projects 1.1 Eligible activities (sub-measures if any): The Fund will support the preparation of individual projects in all priority areas and their respective focus areas of the EEA and Norwegian Financial Mechanisms (except for the Schengen priority area) in the Republic of Latvia. The Fund shall especially support; development of innovative ideas in use of EEA and Norwegian Financial Mechanisms; development of complex project themes and preparation of complex projects and establishment of new partnerships with intention to prepare project applications. 1.2 Eligible applicants: Eligible applicants are public administrations or municipal bodies and affiliated institutions/agencies; educational institution established by the State or a municipality; State scientific institutions; State agencies; societies; foundations or enterprises that are established and registered as legal entities in the Republic of Latvia. 1.3 Minimum and maximum grant amount per sub project: Minimum amount of grant is € 5,000. Maximum amount of grant is € 20,000. 1.4 Duration of sub-projects: There are no restrictions on the minimum duration of sub-projects. The implementation of a sub-project shall be concluded no later than on the date of the closing of the second open call in Latvia. 1.5 Co-financing: A grant from the Fund shall not exceed 90 percent of total eligible costs of the sub-project. The remaining cost of the sub-project shall be provided or obtained by the end-recipient from other sources. 1.6 Eligibility of costs, including in-kind: Costs are eligible if they are justified, necessary and appropriate, and related to the subproject's long term effects and planned results. Further, eligible costs must be duly explained and in line with the Detailed Eligibility Provisions - Expenditure. The main types of eligible costs are salaries, travel & subsistence, external expertise and administration costs. In-kind contributions that fall within Article 2.2 of the Detailed Eligibility Provisions - Expenditure are eligible. In-kind contribution can constitute up to 5% of the total eligible cost of the sub-project. 2. Selection of sub projects 2.1 Institutional set-up: The SIF Council shall act as a Steering Committee for the operation and shall approve or reject applications. The SIF Council is appointed and approved by the Cabinet of Ministers and consists of representatives from line ministries, regional authorities and from the NGO community in Latvia. The Chairman of the Council is selected by its members. The Evaluation Committee, appointed by the SIF Council, will carry out the quality assessment of applications for grants. The Evaluation Committee consists of members from the Intermediary and external experts. The application form and standard grant contract with annexes shall be approved by the Director of SIF. The Director of SIF has the signatory powers of the Fund and functions as the executer of State budget allocated for Fund. The grant contract with the end-recipient shall be signed by the Director of SIF. 2.2 Selection process and procedures: The availability of grants from the Fund shall be announced in an open call. All applications shall be examined and evaluated by the Intermediary in accordance with the administrative and eligibility criteria. The qualitative and financial evaluation of the applications shall be carried out by the Evaluation Committee. The Evaluation Committee may involve external experts in the evaluation of applications' quality and financial aspects. The Evaluation Committee shall provide a ranked list of projects for approval by the SIF Council. The Intermediary shall inform applicants whose applications are rejected about the reasons for the rejection. Applicant whose application is rejected due to non-compliance with administrative or eligibility criteria can request the Intermediary to review its decision. The applicant shall submit such a request within 10 days from being notified about the rejection and shall provide reasons for why the decision should be overturned. 2.3 Selection criteria: Selection and evaluation criteria involve administrative, eligibility, qualitative and financial checklists where scores are given to each criterion. The qualitative and financial evaluation criteria focus on the applicants' capacity to implement the project, the level of complexity/innovativeness, relevance and the economic feasibility of the project. During the review of the administrative and eligibility criteria, the Intermediary may ask the applicant to provide additional information or clarification. The evaluation of the quality of applications, including the proposed budget, shall be carried out in accordance with the evaluation criteria set out in the evaluation grid. The Evaluation Committee evaluates projects grouping them to two months periods according to the time of submission. 2.4 Open calls and availability of funds (including number of calls, duration of calls, and estimated size): Grants from the Fund shall be made available for preparation of individual projects to be submitted during the second open call in Latvia. The Intermediary shall organise one call for applications for sub-projects. The duration of the call shall not be less than two months. 3. Arrangement by Intermediary for monitoring and receiving reports from endrecipients The monitoring unit of the Intermediary shall be responsible for monitoring and controlling implementation of the supported sub-projects (regular communication with end-recipients on relevant issues and monitoring visits, checking payment requests, progress, technical and financial reports). The financial control unit of the Intermediary shall be responsible for providing consultations on financial and accounting issues to the programme unit, which is the secretariat to the SIF Council. The financial control unit will throughout the life-cycle of sub-projects conduct relevant double checks (grant contracts, financial reports, and payment requests) The internal audit unit of the Intermediary shall perform audits to a number of selected end-recipients during or after implementation of the sub-projects. Reports from the end-recipient shall be prepared according to the format provided in the contract. The end-recipient shall submit quarterly progress reports and a final report. The quarterly report shall include information on progress and payments made. The final report shall include documentation of activities and payments. 4. Reporting from Intermediary to Focal Point The Intermediary will submit quarterly Project Interim Reports to the Focal point. The accounting unit of the Intermediary shall be responsible for preparing the part of the Project Interim Report relevant to the payment claim on the basis of the signed contracts or approved reports and submitting them to the Paying Authority. 5. Disbursements to Intermediary (management costs) 5.1 Advance payment scheme: 10% of the management costs will be paid as an advance payment, to be set off when 80% of the amount for management cost has been disbursed. 5.2 Subsequent disbursements: Disbursement of incurred costs will be made following acceptance of Project Interim Reports. Final disbursement of the balance of the incurred management costs will be made following acceptance of the Project Completion Report. 6. Disbursement to Intermediary (funds for re-granting) 6.1 Advance payment scheme: 80% of the funds for re-granting announced in the open call shall be disbursed to the Intermediary 10 working days after the closing of the call. Disbursements of subsequent funds for re-granting shall be made as advance payment in a manner to be set out in the Project Implementation Plan and requested through the Project Interim Reports. The payment scheme shall ensure that sufficient funds are available for a timely transfer of funds to the end-recipients, whether advance payments, subsequent instalments, or final payments. 6.2 Subsequent disbursements: N/A 7. Disbursements to end-recipients 7.1 First date of eligibility: Costs in sub-projects become eligible at the date of grant decision by the Intermediary. 7.2 Advance payments and disbursements: End-recipients shall receive the first advance payment (25% of the grant) after the signature of the contract. An additional 55 percent of the grant may be paid as advance instalments, in equal shares for each quarter of the scheduled implementation, after submission of a quarterly interim report. The balance payment (20% of the grant) shall be paid after approval by the Intermediary of the final report. If the sub-project lasts three months or less, no interim report is necessary, initial advance payment may be up to 80% and the remaining amount of the grant will be paid after the approval of the final report. 8. Publicity 8.1 Intermediary level: The publicity measures shall be in accordance with the Publicity Guidelines and the submitted publicity plan. They shall ensure transparency by providing possible applicants with adequate and high quality information about EEA Grants in general, as well as be designed to raise public awareness and disseminate information about the Fund. The focus of the publicity measures shall be on informing the broader public about opportunities provided under the Financial Mechanisms and encourage development of project ideas. Activities in this period include: advertisements, electronic leaflet, booklet, website and seminars. Information and publicity activities shall continue throughout the operation in order to raise awareness of the available funds. Before and during the call launch, advertisements shall be made in national newspapers of the Republic of Latvia (in Latvian and Russian). The call shall take into account the principles of the Open Calls Guide. An electronic leaflet informing about the launch of the Fund and informing about seminars shall be developed. The Intermediary shall organise one to three information seminars in Riga, depending on number of participants, and at least one seminar in each of the regions. A list of approved grant applications shall be published and regularly updated on the websites of the Intermediary and the Focal Point. 8.2 Sub project level: The end-recipients must ensure that appropriate visibility and credit is given to the EEA Financial Mechanism and Norwegian Financial Mechanism. Such publicity measures should be included in reports and publications stemming from the sub-projects and in public events associated with the sub-projects. EEA Financial Mechanism 2004-2009 GRANT AGREEMENT between The FINANCIAL MECHANISM COMMITTEE established by Iceland, The Ministry of Finance of the Republic of Latvia, hereinafter referred to as the "Focal Point", representing the Republic of Latvia, hereinafter referred to as the "Beneficiary State" together hereinafter referred to as the "Parties" for the financing of the "NGO fund" hereinafter referred to as the "Fund" Article 1 Scope 1. This Grant Agreement between the Financial Mechanism Committee and the Focal Point lays down the rights and obligations of the Parties regarding the implementation of the Fund and the financial contribution from the EEA Financial Mechanism 2004-2009 to the Fund. 2. The Terms and Conditions (Annex I) and the Project Implementation Plan (Annex II), and the description of the Fund set-up (Annex III) shall form an integral part of this Grant Agreement. Any reference to the Grant Agreement includes a reference to its annexes. 3. Modifications of the Fund and the Project Implementation Plan can be carried out in accordance with Articles 4.1 and 4.2 of the Terms and Conditions. 4. This Grant Agreement is based on information provided by, through, or on behalf of the Focal Point to the Financial Mechanism Committee in the application for the Grant dated 27 July 2006, and on any other written information provided or confirmed by the Focal Point. Article 2 Grant 1. The Financial Mechanism Committee shall, subject to the rules stipulated in the legal framework referred to in Article 1.2 of the Terms and Conditions, make available to the Focal Point a financial grant (hereinafter referred to as "the Grant") to be used exclusively to finance the eligible cost of the Fund. The Grant shall not exceed the amount of EUR 2,486, 566. 2. The estimated eligible cost of the Fund is EUR 5,850,744. 3. The estimated total cost of the Fund is EUR 5,850,744. 4. The grant rate shall not exceed 42.5 percent of the total, final eligible cost for the completed Fund. This grant rate shall not be exceeded at any point during the implementation of the Fund. Further information on the funding is provided in the Project Implementation Plan (Annex II). 5. The management cost of the Intermediary shall not exceed EUR 585,074. Article 3 Description of the Fund The purpose of the Fund is to provide financial support for NGO activities in democracy and civil society development fields, strengthen the capacity of NGOs supporting priorities in the EEA and the Norwegian Financial Mechanism and support NGO initiated projects in the priorities of the EEA and Norwegian Financial Mechanisms, with the overall objective of strengthening civil society in Latvia. Reference is made to the application, dated 27 July 2006, and to correspondence with the Focal point 8 September 2006 and 21 September 2006. The completed Fund shall include the following activities and results: The Fund will support yearly work programmes made by existing NGOs, establishment of new NGOs and specific projects initiated by NGOs. Management activities will focus on preparing and the implementation of the Fund. The Project Promoter is the Society Integration Foundation. The Latvian government shall provide at least 15 percent of the estimated eligible project cost. Further information on activities and results is provided in the Project Implementation Plan (Annex II). Further information on the Fund's set-up is provided in Annex III. Article 4 Eligibility of expenses 1. Unless otherwise agreed by the parties, the Detailed Eligibility Provisions - Expenditures dated 24 May 2006 shall be applicable to the implementation of the Fund. 2. Eligibility of expenditures incurred under sub-projects is stipulated in Annex III. 3. Expenditures incurred before 17 January 2007 are not eligible. 4. Expenditures incurred after 30 April 2011 are not eligible. Article 5 Disbursements 1. The Financial Mechanism Committee may retain up to 5 % of the management cost until the Project Completion Report referred to in Article 4.4 of the Terms and Conditions has been approved by the Financial Mechanism Committee. 2. Disbursements shall be made in EUR to the following bank account of the Beneficiary State: Account Holder: The Treasury of the Republic of Latvia IBAN: LV96 LACB 0000 0000 11657 Swift/BIC Code: LACBLV2X Bank Name: The Bank of Latvia Bank Address: LV-1050 Riga, Kr.Valdemara Street 3. Provisions on advance payments are stipulated in Annex III to the Grant Agreement. Article 6 Conditions for the awarding of the Grant 1. The grant is awarded under the following general conditions Any interest earned on the account holding the funds for re-granting shall be reported in the final Project Interim Report and reimbursed. 2. The following conditions shall be fulfilled prior to the first disbursement: Not Applicable 3. The following conditions shall be fulfilled before the completion of the Fund: The Focal Point shall the ensure that the Intermediary provides the Financial Mechanism Office with a complete listing of the applications submitted for to the Fund as well as a complete listing of the grants awarded. In the case of the list of grants awarded, this will include information on the end-recipient, the nature and priority area of the sub-project, the type of actions funded under the sub-project, how it addresses the cross-cutting objectives, and the name of any donor state partner included in the sub-project. For this reporting, the FMO statistical reporting template for sub-projects shall be used. 4. The Focal Point shall ensure that the Intermediary takes in a timely manner the necessary steps to fulfill the conditions described above. Article 7 Post completion obligations After the completion of the Fund, the Focal Point shall comply with the following specific post completion obligations: Not applicable Article 8 Contact information 1. The addresses of the Parties to this Grant Agreement and other relevant bodies at the time of signing are as follows: Focal Point: Ministry of Finance of the Republic of Latvia Att: Ronalds Fisers Smilšu str. 1 Riga LV-1919 Latvia Telephone: +371 7095 535/422 Fax: +371 7095 601 E-mail: Ronalds.Fisers@fm.gov.lv Financial Mechanism Committee and the Financial Mechanism Office: The Financial Mechanism Office European Free Trade Association Att.: Director of the Financial Mechanism Office Boulevard du Régent 47-48 B-1000 Brussels Belgium Telephone: +32 (0)2 286 1701 Telefax (general): +32 (0)2 286 1789 E-mail: fmo@efta.int Intermediary: Society Integration Foundation Brivibas iela 40-39 LV-1050 Riga Latvia Telephone: +371 7281 752 Fax: +371 7078 224 Email: info@lsif.lv Disbursement Agent: BBVA Avenue des Arts 43 1040 Brussels Belgium 2. Changes of the above contact information shall be given in writing without undue delay by each party to this Grant Agreement. Article 9 Entry into force and duration 1. This Grant Agreement shall enter into force on the date of the last signature of the Parties. 2. This Grant Agreement shall remain in force until 5 years have elapsed after the date of the acceptance of the Project Completion Report. ******** This Grant Agreement is drawn up in two originals in the English language. Signed in Brussels Signed in Riga on 15.03.2007 on 28.06.2007 For the NMFA For the Focal Point Anders Erdal Irēna Krūmane Chairman State Secretary Annex 1
Terms and Conditions for
Funds Money Facility and NGO Funds)
financed Chapter 1 SCOPE, Legal
Framework, Article 1.1 Scope These terms and conditions form an integral part of the Grant Agreement and shall apply to the implementation of the Fund. Article 1.2 Legal Framework The Grant Agreement shall be read in conjunction with the following documents which, together with the Grant Agreement, constitute the legal framework of the EEA Financial Mechanism 2004-2009: (a) Protocol 38a to the EEA Agreement, establishing the EEA Financial Mechanism 2004-2009; (b) The Rules and Procedures for the implementation of the EEA Financial Mechanism 2004-2009 adopted by the EFTA States in accordance with Article 8(2) of Protocol 38a, as amended; (c) The Memorandum of Understanding on the Implementation of the EEA Financial Mechanism 2004-2009, entered into between the EFTA States and the Beneficiary State. Article 1.3 Definitions General terms, institutions and documents referred to in the Grant Agreement shall be understood in accordance with the provisions of the legal framework referred to in Article 1.2. Chapter 2 General Principles related to the Implementation of the FUND Article 2.1 Co-operation 1. The Parties shall take all appropriate and necessary measures to ensure fulfilment of the obligations and objectives arising out of the Grant Agreement. 2. The Parties agree to provide all information necessary for the good functioning of the Grant Agreement and to apply the highest degree of transparency and accountability as well as the principles of good governance, sustainable development and gender equality. 3. The Parties shall promptly inform each other of any circumstances that interfere or threaten to interfere with the successful implementation of the Fund. Article 2.2 Representation and communication All communication to the Financial Mechanism Committee in regard to the Grant Agreement shall be directed to the Financial Mechanism Office, which generally represents the Financial Mechanism Committee towards the Focal Point. Article 2.3 Main responsibilities of the Focal Point 1. The Focal Point is responsible and accountable for the overall management of the EEA Financial Mechanism 2004-2009 in the Beneficiary State. 2. The Focal Point shall be responsible for the implementation of the Grant Agreement and shall: (a) ensure that the Fund is implemented in accordance with the Grant Agreement (b) take all necessary steps to ensure that the Intermediary is fully committed and able to implement and manage the Fund (c) ensure that the Grant is used exclusively for the purpose of the Fund and its subprojects and according to the approved Project Implementation Plan and that any necessary financial contributions in addition to the Grant are received in a timely manner (d) ensure that all relevant Community, national and local legislation (including, but not limited to legislation on the environment, public procurement and state aid) shall be fully complied with (e) ensure that all assets forming part of the Fund are used only for such purposes as provided for in the Grant Agreement (f) ensure publicity of the Fund in accordance with Article 5.4 of the Rules and Procedures and the Publicity Guidelines (g) ensure that the Financial Mechanism Committee is upon request provided with all documents and information related to the implementation of the Fund (h) make all the necessary and appropriate arrangements in order to strengthen or change the way the Fund is managed. Article 2.4 Monitoring and audit by the Focal Point 1. The Focal Point shall be responsible for monitoring of the Fund and its sub-projects. The monitoring shall be thorough enough to enable the Focal Point to certify the information provided by the Intermediary in the reports referred to in the Beneficiary State Reporting and Monitoring Guidelines. 2. The Focal Point shall ensure a complete audit trail in all engaged actors in accordance with Article 6.1 of the Rules and Procedures and sound accounting principles and methods. 3. The Focal Point shall ensure that audit of the Fund and its sub-projects is conducted in accordance with the audit plan provided according to Article 6.2 of the Rules and Procedures. If necessary, the Focal Point shall draw upon services of a reputable and well established audit company. Furthermore, the Fund should be included in the existing control/audit procedures of the Intermediary. 4. The Focal Point shall, in accordance with Article 6.2 of the Rules and Procedures, provide the Financial Mechanism Committee with summaries of all audit reports relevant to the Fund and/or its sub-projects. The Focal Point shall upon request provide the Financial Mechanism Office, the Financial Mechanism Committee, or the EFTA Board of Auditors with any audit report relevant to the Fund and/or its sub-projects, including auditing reports from the Supreme Audit Institution. Article 2.5 Immediate reporting on irregularities and other relevant developments 1. The Focal Point shall ensure efficient and prompt investigation of any suspected and actual cases of fraud and irregularity. The Focal Point shall, in accordance with the Irregularities Guidelines adopted by the Financial Mechanism Committee, immediately report to the Financial Mechanism Committee all suspected and actual cases of fraud and irregularity as well as all measures related thereto, taken by competent national authorities. 2. The Parties shall immediately inform each other if they become aware of any legal actions initiated or continued against the Fund and/or its sub-projects, including actions or decisions taken by the European Community institutions. Article 2.6 Implementation contract with the Intermediary 1. The Focal Point shall ensure the signing of a contract with the Intermediary on the implementation of the Fund. Such implementation contract shall ensure that the obligations undertaken by the Focal Point in this Agreement are properly delegated to the Intermediary in a manner which ensures enforceability of these obligations. In cases where the Grant, due to provisions in the national legislation, cannot be disbursed to the Intermediary on the basis of an implementation contract, the Beneficiary State may instead issue a legislative or administrative act of similar effect. 2. Delegation of obligations referred to in paragraph 1 of this Article does not in any way affect the obligations and responsibilities of the Focal Point under this Grant Agreement. 3. Prior to the first disbursement, the Focal Point shall have submitted to the Financial Mechanism Committee a standard version of such an implementation contract or implementation act. 4. Prior to the first disbursement, the Focal Point shall provide the Financial Mechanism Committee with the following information on the contract or act relevant to the Fund: (a) full legal name of the Intermediary; (b) number of application (FMO number) and name of Fund; (c) date of entry into force of the contract or date of issuance of the act, and (d) information as to which standard version of the contract or act is used for the Fund. 5. If the standard version of the contract or the act has already been sent to the Financial Mechanism Committee, the reference in paragraph 4(d) of this article is to be considered a fulfilment of paragraph 3. 6. Upon request, the Focal Point shall provide the Financial Mechanism Committee with a copy of the implementation agreement or act, accompanied by a translation into English. Article 2.7 Representations and Warranties The Focal Point represents and warrants that the information provided by, through, or on behalf of the Focal Point in connection with the application for funding, and the conclusion and implementation of this Grant Agreement are authentic, accurate and complete. Chapter 3 disbursement And Eligibility Article 3.1 Eligible Expenditures 1. Only expenses that are eligible according to Article 3.1 of the Rules and Procedures and the Detailed Eligibility Provisions - Expenditures can form the basis for the financing from the EEA Financial Mechanism 2004-2009. 2. Final acceptable payment claims must be received within six months of the last date for eligible expenditures referred to in Article 4 of the Grant Agreement. Payment claims received at a later date or deemed not acceptable by the Financial Mechanism Committee will not constitute a basis for disbursement. 3. The Financial Mechanism Committee can, in accordance with Article 3.1.3 of the Rules and Procedures, extend the period of eligibility. Article 3.2 Disbursement of the Grant 1. Disbursements are made in accordance with the approved Project Implementation Plan based on requests for disbursements submitted by the Paying Authority. 2. Before disbursement can be made, the Financial Mechanism Committee shall be provided with a Project Interim Report both in electronic and hard copy, certified by the Focal Point and the Paying Authority in accordance with the Disbursement Guidelines and the Beneficiary State Reporting and Monitoring Guidelines. The Project Interim Report shall cover a period of at least 3 calendar months and be related to expenditures from that period. 3. When the required documents have been provided the Financial Mechanism Committee shall verify that they are in the correct form and that the conditions for the disbursement have been met. Unless the Financial Mechanism Committee decides to make use of remedies provided in Chapter 6, the Financial Mechanism Committee shall as soon as possible and within two months from the receipt of the disbursement request, order its Disbursement Agent to execute the disbursement in question to the Paying Authority. The Financial Mechanism Committee shall notify the Paying Authority when such disbursement order has been submitted. 4. In case of an error made in relation to a disbursement resulting in a higher amount paid than required under the Grant Agreement, the Focal Point shall, upon request from the Financial Mechanism Committee, reimburse without delay any amount unduly disbursed. Similarly, if an error results in a lower amount paid than required, the Financial Mechanism Committee shall, as soon as possible after being made aware of such an error, disburse the missing amount. 5. The principle of pro rata financing of costs incurred shall apply, meaning that the grant rate referred to in Article 2 of the Grant Agreement shall not be exceeded at any time during the implementation of the Project. This is without prejudice to Article 3.4. 6. When the disbursement has been made, and received by the Paying Authority in full, the Financial Mechanism Committee has fulfilled its obligations relating to that disbursement. 7. If any of the conditions justifying suspension of disbursements or reimbursement of funds under Articles 6.1.1 or 6.2.1 apply, the Financial Mechanism Committee may instruct the Focal Point, that disbursed funds may not be used for any or all of the subprojects to which such conditions apply, and/or for management cost if the conditions relate to the role of the Intermediary. The Focal Point shall ensure that the Intermediary will act in compliance with such an instruction. Article 3.3 Transfer and Use of the Grant 1. The Focal Point shall ensure that the Paying Authority, within fifteen working days of receipt of the disbursement, transfers the disbursement to the Intermediary. The Financial Mechanism Committee shall be notified by e-mail before the 15th of each month of the transfers made in the previous month. Such notification shall contain the amount transferred, the name of the recipient, the FMO project number, and the date of the transfer. 2. The Focal Point shall ensure that the Intermediary will establish two accounts, one for management costs and one for re-granting. Article 3.4 Increased cost If the cost of the management of the Fund should exceed the management cost stipulated in Article 2 paragraph 5 of the Grant Agreement, the Focal Point shall ensure that the Intermediary obtains or provides any such additional funds so as to ensure the full implementation of the fund. Chapter 4 Obligations related to the Implementation of the FUND Article 4.1 Modification of the Fund 1. The following modification of the Fund is subject to the Financial Mechanism Committee's prior written approval: (a) modification of the scope, objectives, purpose, or results of the Fund, (b) modification of the conditions for grants to end-recipients, (c) transfer between activities beyond 15% of the total amount of the Fund, (d) modification of any of the items described in Annex III to the Grant Agreement. 2. Before submitting the proposed modifications, the Focal Point shall approve them and confirm that they are necessary and/or suitable for the effectiveness of the Fund. 3. If there is a doubt as to whether the proposed modifications require approval by the Financial Mechanism Committee, in particular when the modifications relate to issues described in Annex III to the Grant Agreement, the Focal Point shall consult the Financial Mechanism Office before such modification takes effect. 4. Modifications under paragraph 1 may require a new appraisal prior to being accepted or rejected. Article 4.2 Revision of the Project Implementation Plan The Focal Point must submit a revised Project Implementation Plan to the Financial Mechanism Committee when: (a) proposing modification which requires an approval by the Financial Mechanism Committee according to Article 4.1, (b) any of the reporting periods for the Project Interim Reports scheduled in the Project Implementation Plan are changed; a revised Project Implementation Plan shall be submitted no later than 60 days before the end of the first affected reporting period, or, (c) the Financial Mechanism Committee requests an updated Project Implementation Plan; a revised Project Implementation Plan shall be submitted no later than 30 days after such request is sent. Article 4.3 Special provisions on procurement and awarding of contracts 1. The Focal Point shall ensure that public procurement principles and procedures following from national and Community legislation are applied at any level in the implementation of the Grant Agreement. 2. In cases where contracts concluded as part of the implementation of the Fund fall below the national or Community thresholds set for public procurement or outside the scope of the applicable public procurement laws, the Focal Point shall ensure that the awarding of such contracts (including the procedures prior to the awarding) and the terms and conditions of such contracts comply with best economic practices, including accountability, allow a full and fair competition between potential providers, and ensure the optimal use of resources from the EEA Financial Mechanism 2004-2009. 3. The Focal Point shall ensure that the highest ethic standards are observed during the procurement and execution of contracts, and shall ensure the application of adequate and effective means to prevent illegal or corrupt practices. No offer, gifts, payments or benefit of any kind, which would or could, either directly or indirectly, be construed as an illegal or corrupt practice, e.g. as an inducement or reward for the award or execution of procurement contracts, shall be accepted. 4. The Focal Point shall ensure that records of the awarding and execution of contracts are kept and provided upon request to the Financial Mechanism Committee. Article 4.4 Reporting The Focal Point shall provide Project Interim Reports, Annual Project Progress Reports and the Project Completion Report in accordance with the Beneficiary State Monitoring and Reporting Guidelines. Chapter 5 External Monitoring and Audit Article 5.1 Monitoring by the Financial Mechanism Committee The Financial Mechanism Committee may monitor the implementation and the progress of the Fund and/or its sub-projects in order to ensure that it is in compliance with the Grant Agreement. Article 5.2 Audit by the Financial Mechanism Committee In accordance with Article 6.4 of the Rules and Procedures, the Financial Mechanism Committee may at any time arrange its own audits and inspections of the Fund and/or its sub-project at all relevant locations. Article 5.3 Audit by EFTA Board of Auditors In accordance with Article 6.3 of the Rules and Procedures, the EFTA Board of Auditors may at any time conduct audits of the Fund and/or its sub-projects at all relevant locations. Article 5.4 Access 1. The Focal Point shall ensure that the Financial Mechanism Committee and the Financial Mechanism Office or anyone mandated to perform tasks on their behalf, and the EFTA Board of Auditors, have upon request, prompt, full, and unimpeded access to all information, documents, persons, locations and facilities, public or private, relevant to the implementation of the Grant Agreement. Such access is subject to the applicable limitation under the national legislation of Beneficiary State. 2. The Focal Point shall, upon request, ensure that the above mentioned authorised representatives are accompanied by relevant personnel and provide them with the necessary assistance. Request under this paragraph shall be sent at least two weeks before the planned visit. Article 5.5 Responsibility The external monitoring and audit referred to in this chapter shall not in any way relieve the Focal Point of its obligations under the Grant Agreement regarding monitoring of the Fund and/or its sub-project, financial control and audit. Chapter 6 Suspension and reimbursements Article 6.1 Suspension of Disbursements 1. The Financial Mechanism Committee may decide to suspend disbursements of the Grant if: (a) the conditions for disbursement in accordance with Article 3.2 have not been met, (b) credible information indicates that the implementation or the progress of the Project does not correspond to the Project Implementation Plan or is not in compliance with the Grant Agreement, (c) reports referred to in Article 4.4 or any other information requested has not been provided or include incomplete information, (d) access required under Chapter 5 is restricted, (e) the financial management of the Fund has not been in accordance with internationally recognised accounting principles, (f) it becomes aware of suspected or actual cases of irregularities or fraud, or if such cases have not been adequately reported, investigated or remedied, (g) the implementation of the Fund is deemed to be in violation of Community law, (h) a fundamental change of circumstances occurs and said circumstances constitute an essential basis for the Grant Agreement or the contribution from the EEA Financial Mechanism 2004-2009 to the Project, (i) it becomes aware of any misrepresentation of facts in any information given by or on behalf of the Focal Point affecting, directly or indirectly the implementation of the Grant Agreement, (j) interests generated on the designated bank account of the Paying Authority have not been accounted for according to Article 3.2 of the Disbursement Guidelines, (k) an adjustment of the Grant is required in order to comply with the grant rate referred to in the Grant Agreement or the requirements referred to in Article 3.2 of the Rules and Procedures, or (l) any other obligation stipulated in the Grant Agreement is not complied with by the Focal Point. 2. The Financial Mechanism Committee may suspend payments if any of the conditions in littera (b), (e), or (g) applies to any of the sub-projects and the Intermediary has not complied with requests from the Focal Point and/or the Financial Mechanism Committee to take the appropriate and necessary measures to remedy such deficiencies and prevent further loss of funds. Suspension due to deficiencies in sub-projects shall be proportionate to the scope and extent of the breach. 3. If possible, the Focal Point shall be given an opportunity to provide its views before the Financial Mechanism Committee takes a decision to suspend disbursements. The decision to suspend disbursements shall be reasoned and immediately effective. The Focal Point shall be notified as soon as possible but no later than 7 workings days from the date of the decision. 4. The Focal Point can at any time present documents or other evidence showing that the conditions in paragraph 1 (a) to (l) no longer apply or do not justify suspension of disbursements, and request that the Financial Mechanism Committee reviews its decision to suspend payments. 5. When the Financial Mechanism Committee finds that the conditions described in paragraph 1 (a) to (l) above no longer apply or justify suspension of disbursements, it shall take a decision to continue disbursements. Article 6.2 Reimbursement 1. In case of serious non-compliance with the Grant Agreement, or if suspension of payments is not feasible or likely to be sufficient, the Financial Mechanism Committee may, after having consulted the Focal Point with a view to reaching a solution, decide to demand reimbursement if any of the conditions referred to in littera (b) to (l) of Article 6.1.1, apply; or if Article 6.1.2 applies, demand reimbursement of funds intended or paid to end-recipients, subject to paragraph 2 of this article. 2. The Financial Mechanism Committee shall not demand reimbursement of funds that were lost due to irregularities or misuse of funds in a sub-project, if the Focal Point shows that such a loss or its late detection is not due to a negligent or non performance of its or the Intermediary's duties, and the Focal Point and the Intermediary have taken all reasonable measures to recover such funds. 3. Prior to making a decision referred to in paragraph 1 of this article, the Financial Mechanism Committee shall notify the Focal Point of its intention to demand reimbursement. The notification shall outline the reason for the proposed measures. The Focal Point can within 45 working days from the date of the notification provide any documents relevant to the decision. 4. At any time prior to the decision to demand reimbursement, the Focal Point and the Financial Mechanism Committee can enter into a dialogue with a view to ensure that the said decision is based on accurate and correct facts. 5. The Focal Point shall be notified of a decision referred to in paragraph 1 of this article as soon as possible but no later than 7 workings days from the date of the decision. The notification shall outline the reason for the decision. 6. Within three months from the decision of the Financial Mechanism Committee referred to in paragraph 1 of this article, the Focal Point shall, with the exception stipulated in paragraph 8 of this article, reimburse the Financial Mechanism Committee the amount requested, subject to the specifications detailed in the decision. 7. Reimbursement from the Focal Point to the Financial Mechanism Committee is not contingent upon reimbursement from the Intermediary or the end-recipient. 8. If the Intermediary is a private entity and the Focal Point shows that it has and is taking appropriate measures to recover the funds from the Intermediary, the Financial Mechanism Committee can decide to give the Focal Point up to one year to reimburse the requested funds. In such a case, the Financial Mechanism Committee can also decide to contribute up to 50% of reasonable legal fees related to the recovery of the funds from the Intermediary. 9. If a demand for reimbursement to the Financial Mechanism Committee is not complied with by the Focal Point, or a dispute related to a demand for reimbursement arises that cannot be solved in accordance with Article 7.1, the Parties may bring the dispute before Oslo Tingrett in accordance with Article 1.7 of the Rules and Procedures. Article 6.3 General suspension of disbursements 1. The Financial Mechanism Committee may, after having consulted the Focal Point with a view to reaching a solution, suspend payments if: (a) information or documents obtained by or provided to the Financial Mechanism Committee indicate the presence of systemic or widespread shortcomings regarding the management of the financial contribution from the EEA Financial Mechanism 2004-2009 in the Beneficiary State, or (b) a demand for reimbursement related to any type of project assistance in the Beneficiary State financed by the EEA Financial Mechanism 2004-2009 has not been complied with by the Focal Point. 2. The procedures referred to in paragraphs 3 to 5 of Article 6.2 shall apply mutatis mutandis to suspension of disbursements under this article. 3. If the situation referred to in paragraph 1(a) of this article relate directly to this Fund, the Financial Mechanism Committee can apply the procedures under Article 6.1. Chapter 7 Final provisions Article 7.1 Dispute settlement The Parties waive their rights to bring any dispute related to the Grant Agreement before any national or international court, and agree to settle such a dispute in an amicable manner. This article shall be without prejudice to paragraph 9 of Article 6.2. Article 7.2 Waiver of Responsibility 1. Any appraisal of the Fund undertaken before or after its approval by the Financial Mechanism Committee, does not in any way diminish the responsibility of the Focal Point to verify and confirm the correctness of the documents and information forming the basis of the Grant Agreement. 2. Nothing contained in the Grant Agreement shall be construed as imposing upon the Financial Mechanism Committee or the Financial Mechanism Office any responsibility of any kind for the supervision, execution, completion, or operation of the Fund or its sub-projects. 3. The Financial Mechanism Committee does not assume any risk or responsibility whatsoever for any damages, injuries, or other possible adverse effects caused by the Fund or its sub-projects, including, but not limited to inconsistencies in the planning of the Fund, its sub-projects, other project(s) that might affect it or that it might affect, or public discontent. It is the full and sole responsibility of the Focal Point to satisfactorily address such issues. 4. Neither the Focal Point, nor the Intermediary, nor the end-recipients or any other party shall have recourse to the Financial Mechanism Committee for further financial support or assistance to the Fund in whatsoever form over and above what has been provided for in the Grant Agreement. 5. Neither the European Free Trade Association, its Secretariat, including the Financial Mechanism Office, its officials or employees, nor the Financial Mechanism Committee, its members or alternate members, nor the EFTA States, can be held liable for any damages or injuries of whatever nature sustained by the Focal Point or the Beneficiary State, the Intermediary, end-recipients or any other third person, in connection, be it direct or indirect, with the Grant Agreement. Article 7.3 Language 1. All communications shall take place in the English language. 2. To the extent that original documents are not available in the English language, the documents shall be accompanied by full and accurate translations into English. 3. The Focal Point shall bear the responsibility for the accuracy of the translation and the possible consequences that might arise from any inaccurate translations. Annex 2
Annex 3
EEA Financial Mechanism 2004-2009 Norwegian Financial Mechanism 2004-2009 Fund set-up 1. Description of sub projects 1.1 Eligible activities (sub-measures if any): The Fund shall provide financial support for activities carried out by non-governmental organizations in the priorities and sub-priorities set out in the EEA and Norwegian Financial Mechanisms. The Fund shall support activities within a framework based on three measures: - NGO activity support measure, providing support for regular NGO activities in accordance with NGO long term action plans and annual work programmes; - NGO capacity strengthening measure, providing support for new organizations or such organizations which want to start their activity in a new field and need a financial push forward; - NGO project measure, providing support for implementation of projects in priority fields of the EEA Financial Mechanism and Norwegian Financial Mechanism. 1.2 Eligible applicants: Eligible applicants must be NGOs - societies, foundations and social partners. Applicants must be registered in the Republic of Latvia. Eligible applicants must fulfil the following conditions; voluntary organizations (established on a voluntary basis and voluntary participation); independent legal body; act in the interest for a wider societal benefit on a nonprofit basis; employers organizations registered in Latvia as society or foundation; trade unions acting in Latvia in compliance with the law on trade unions. 1.3 Minimum and maximum grant amount per sub project: Measure 1
Measure 2: Minimal amount of grant is 5,000 EUR. Maximal amount of grant is 30,000 EUR. Measure 3: Minimal amount of grant is 8,000 EUR. Maximal amount of grant is 100,000 EUR. 1.4 Duration of sub projects: Measure 1: Minimum: 1 year Maximum 3,2 years (38 months) Measure 2: Minimum: No limitation Maximum 1,5 years (18 months) Measure 3: Minimum: No limitation Maximum: 2 years 1.5 Co-financing: A grant from the Fund shall not exceed 90 percent of total eligible costs of the sub-project. The remaining cost of the sub-project shall be provided or obtained by the end-recipient from other sources. 1.6 Eligibility of costs, including in-kind: Costs are eligible if they are justified, necessary and appropriate, related to the sub-project's long term effects and planned results. Further, eligible costs must be duly explained and in line with the Detailed eligibility provisions - expenditure guideline. Eligible costs vary between the three measures due the different focus each of the measures. Eligible costs in measure 1 are concentrated on day-to-day activities. Eligible costs in measure 2 are concentrated on strengthening of organisational capacity including limited infrastructure improvements. Eligible costs in measure 3 are concentrated on project related activities such travel & subsistence and external expertise. In-kind contributions that fall within Article 2.2 of the Detailed Eligibility Provisions - Expenditure are eligible. In-kind contribution can constitute up to 5 percent of the total eligible cost of the sub-project. 2. Selection of sub projects 2.1 Institutional set-up: The SIF Council, which is appointed and approved by the Cabinet of Ministers, shall act as the Steering Committee for the operation and is responsible for administrative, financial and technical implementation of the Fund. The SIF Council takes decisions with regard to approval or rejection of each proposal. The Evaluation Committee, appointed by the SIF Council, will carry out the quality assessment of applications for grants. The Evaluation Committee consists of 5 voting members selected on the basis of open competition, including the NGO community, and a non-voting chairman representing the Intermediary. The Evaluation Committee reports to the SIF Council. The Director of SIF has the signatory powers of the Fund and functions as the executer of State budget allocated for Fund. The grant contract with the end-recipient shall be signed by the Director of SIF. 2.2 Selection process and procedures: The availability of grants from the Fund shall be announced in an open call. Applications shall be submitted to the Intermediary, which shall conduct the administrative and eligibility check of applications and sub-projects. The eligible applications shall be forwarded the Evaluation Committee for quality and financial assessment. External assessors may be involved in the appraisal of the sub-projects. The Evaluation Committee shall provide a ranked list of projects for approval by the SIF Council. The Intermediary shall inform applicants whose applications are rejected about the reasons for the rejection. Applicant whose application is rejected due to non-compliance with administrative or eligibility criteria can request the Intermediary to review its decision. The applicant shall submit such a request within 10 days from being notified about the rejection and shall provide reasons for why the decision should be overturned. 2.3 Selection criteria: All applications are subject to administrative and eligibility checks described in all three activity support measures (annex 2, 3 & 4 to the application). Separate selection criteria for quality assessment have been developed for each measure reflecting the main objectives (sub criteria are developed under each main criterion): Measure 1: A set of evaluation criteria are developed covering the following subjects (sub criteria are developed under each main criteria); applicant's previous activities; annual work program; activity long-term program. Measure 2: A set of evaluation criteria are developed covering the following subjects (sub criteria are developed under each main criteria); necessity for capacity building; long-term action plan; relevance and nature of sub-projects; applicants' implementation capacity. Measure 3: A set of evaluation criteria are developed covering the following subjects (sub criteria are developed under each main criteria); budget and cost-effectiveness; relevance; methodology; sustainability; financial and operational capacity. Scoring (for all measures): The evaluation criteria are
divided into sections and subsections. Each subsection must be
given a score between 1 and 5 in accordance with the following
guidelines: 2.4 Open calls and availability of funds (including number of calls, duration of calls, and estimated size): Measure 1: Total indicative amount that is available for measure 1 is 40% of total grant amount, that is 2,106,268 EUR. The Intermediary shall organise four calls for measure 1. The first call shall be opened as soon as possible after the Grant Agreement enters into force. The second call shall be opened no later than 1 October 2007, the third no later than 1 October 2008, and the last one no later than 1 October 2009. Each call shall be open for at least two months. The division between the calls are as follows; 45% for the first call in 2007, 31% for the second call in 2007, 16% for the call in 2008 and 8% for the call in 2009. Measure 2: Total indicative amount that is available within the framework of this program is 20 % of the total grant amount, or 1,053,134 EUR. The Intermediary shall organise four calls for measure 2. The division between the calls are as follows; 40% for the first call in 2007, 30 % for the second call in 2007, 20 % for the call in 2008 and 10 % for the call in 2009. Measure 3 Total indicative amount that is available within the framework of this program is 40% of total grant amount, or 2,106,268 EUR. The Intermediary shall organise four calls for measure 3. The division between the calls are as follows; 30% for the first call in 2007, 30 % for the second call in 2007, 20 % for the call in 2008 and 20 % for the call in 2009. 3. Arrangement by Intermediary for monitoring and receiving reports from end-recipients The monitoring unit of the Intermediary shall be responsible for monitoring and controlling implementation of the supported sub-projects (regular communication with end-recipients on relevant issues and monitoring visits, checking payment requests, progress, technical and financial reports.) The financial control unit of the Intermediary shall be responsible for providing consultations on financial and accounting issues to the programme unit, which is the secretariat to the SIF Council. The financial control unit shall throughout the life-cycle of sub projects conduct relevant double checks (grant contracts, financial reports, and payment requests). The internal audit unit of the Intermediary shall perform audits to a number of selected end-recipients during or after implementation of sub projects Reports shall be prepared according to the format provided in the contract between the end recipients and the Intermediary. End-recipients shall submit quarterly interim reports and a completion report. The interim report shall include information on progress and payments made. The completion report shall include documentation of activities and payments. 4. Reporting from Intermediary to Focal Point The Intermediary shall submit quarterly Project Interim Reports to the Focal point. The reports shall be prepared and submitted in accordance with the Beneficiary State Reporting and Monitoring Guideline and the Disbursement Guideline. 5. Disbursements to Intermediary (management costs) 5.1 Advance payment scheme: 20 percent of the management costs will be disbursed as an advance payment, to be set off when 80 percent of the management cost has been disbursed. 5.2 Subsequent disbursements: Disbursement of incurred costs will be made following acceptance of Project Interim Reports. Final disbursement of the balance of the incurred management costs will be made following acceptance of the Project Completion Report. 6. Disbursement to Intermediary (funds for re-granting) 6.1 Advance payment scheme: Disbursements of the funds for re-granting will be made as advance payment in a manner to be set out in the Project Implementation Plan and requested through the Project Interim Reports. It shall ensure that sufficient funds are available for a timely transfer of funds to the end-recipients, whether advance payments, subsequent instalments, or final payments. 6.2 Subsequent disbursements: N/A 7. Disbursements to end-recipients 7.1 First date of eligibility: Costs in sub-projects become eligible at the date of the grant decision by the Intermediary. 7.2 Advance payments and disbursements: Sub-project applications may qualify for an initial advance payment of up to 25 percent of the total grant which shall be paid at the time of the signing of the agreement between the Intermediary and the end-recipient. An additional 55 percent of the grant may be paid as advance instalments, in equal shares for each quarter of the scheduled implementation, after submission of a quarterly interim report. The remaining 20 percent of the grant shall be paid when the completion report has been approved by the Intermediary. If the sub-project lasts three months or less, no interim report is necessary, initial advance payment is 80% and the remaining amount of the grant will be paid after the approval of the final report. 8. Publicity 8.1 Intermediary level: The publicity measures shall be in accordance with the Publicity Guidelines and the submitted publicity plan. They shall ensure transparency by providing possible applicants with adequate and high quality information about EEA Grants in general, as well as be designed to raise public awareness and disseminate information about the Fund. In the first year of implementation the focus of the publicity measures shall be on informing the broader public about opportunities provided under the Financial Mechanisms and encourage development of project ideas to be submitted to the Fund. Activities in this period include: advertisements, electronic leaflet, booklet and seminars and development of a website. Information and publicity activities shall continue throughout the operation in order to raise awareness of the available funds. Before and during the call launch, advertisements shall be made in national newspapers of the Republic of Latvia (in Latvian and Russian). The call shall take into account the principles of the Open Calls Guide. In the subsequent years, follow-up advertisements shall be published at least once a year. An electronic leaflet informing about the launch of the Fund and informing about seminars shall be developed. The Intermediary shall organise one to three information seminars in Riga, depending on number of participants, and at least one seminar in each of the regions. A list of approved grant applications shall be published and regularly updated on the websites of the Intermediary and the Focal Point. 8.2 Sub project level: The end-recipient must ensure that appropriate visibility and credit is given to EEA Financial Mechanism and Norwegian Financial Mechanism. This should be done in reports and publications stemming from the sub projects, or during public events associated with the sub project. EEA Financial Mechanism 2004-2009 GRANT AGREEMENT between The FINANCIAL MECHANISM COMMITTEE established by Iceland, hereinafter referred to as the "Focal Point", representing the Republic of Latvia, hereinafter referred to as the "Beneficiary State" together hereinafter referred to as the "Parties" for the financing of the "Seed Money Facility"" hereinafter referred to as the "Fund" Article 1 Scope 1. This Grant Agreement between the Financial Mechanism Committee and the Focal Point lays down the rights and obligations of the Parties regarding the implementation of the Fund and the financial contribution from the EEA Financial Mechanism 2004-2009 to the Fund. 2. The Terms and Conditions (Annex I) and the Project Implementation Plan (Annex II), and the description of the Fund set-up (Annex III) shall form an integral part of this Grant Agreement. Any reference to the Grant Agreement includes a reference to its annexes. 3. Modifications of the Fund and the Project Implementation Plan can be carried out in accordance with Articles 4.1 and 4.2 of the Terms and Conditions. 4. This Grant Agreement is based on information provided by, through, or on behalf of the Focal Point to the Financial Mechanism Committee in the application for the Grant dated 24 July 2006, and on any other written information provided or confirmed by the Focal Point. Article 2 Grant 1. The Financial Mechanism Committee shall, subject to the rules stipulated in the legal framework referred to in Article 1.2 of the Terms and Conditions, make available to the Focal Point a financial grant (hereinafter referred to as "the Grant") to be used exclusively to finance the eligible cost of the Fund. The Grant shall not exceed the amount of EUR 248,657. 2. The estimated eligible cost of the Fund is EUR 585,074. 3. The estimated total cost of the Fund is EUR 585,074. 4. The grant rate shall not exceed 42.5 percent of the total, final eligible cost for the completed Fund. This grant rate shall not be exceeded at any point during the implementation of the Fund. Further information on the funding is provided in the Project Implementation Plan (Annex II). 5. The management cost of the Intermediary shall not exceed EUR 58,507. Article 3 Description of the Fund The purpose of the Fund is to support development of individual projects ideas in the priority areas of the EEA Financial Mechanism and the Norwegian Financial Mechanism and to establish new partnerships for the purpose of designing new projects, with the overall objective of strenghtening the quality of project application within the priority areas and facilitating access to the funds provided by the mechanisms. Reference is made to the application, dated 24 July 2006, and correspondence with the Focal Point on 4 September 2006 and 19 September 2006. The completed Fund shall include the following activities and results: Administering the re-granting of funds, including monitoring and financial control. Publicity measures aimed at increasing public awareness about opportunities to apply for funds from EEA Grants. The Intermediary is the Society Integration Foundation. The Latvian government shall provide at least 15 percent of the estimated eligible project cost. Further information on activities and results is provided in the Project Implementation Plan (Annex II). Further information on the Fund's set-up is provided in Annex III. Article 4 Eligibility of expenses 1. Unless otherwise agreed by the parties, the Detailed Eligibility Provisions - Expenditures dated 24 May 2006 shall be applicable to the implementation of the Fund. 2. Eligibility of expenditures incurred under sub-projects is stipulated in Annex III. 3. Expenditures incurred before 9 January 2007 are not eligible. 4. Expenditures incurred after 9 July 2010 are not eligible. Article 5 Disbursements 1. The Financial Mechanism Committee may retain up to 2,5 % of the management cost until the Project Completion Report referred to in Article 4.4 of the Terms and Conditions has been approved by the Financial Mechanism Committee. 2. Disbursements shall be made in EUR to the following bank account of the Beneficiary State: Account Holder: The Treasury of the Republic of Latvia IBAN: LV96 LACB 0000 0000 11657 Swift/BIC Code: LACBLV2X Bank Name: The Bank of Latvia Bank Address: LV-1050 Riga, Kr.Valdemara Street 3. Provisions on advance payments are stipulated in Annex III to the Grant Agreement. Article 6 Conditions for the awarding of the Grant 1. The grant is awarded under the following general conditions Any interest earned on the account holding the funds for re-granting shall be reported in the final payment claim and reimbursed. 2. The following conditions shall be fulfilled prior to the first disbursement: Not Applicable 3. The following conditions shall be fulfilled before the completion of the Fund: Not Applicable 4. The Focal Point shall ensure that the Intermediary takes in a timely manner the necessary steps to fulfill the conditions described above. Article 7 Post completion obligations After the completion of the Fund, the Focal Point shall comply with the following specific post completion obligations: Not applicable Article 8 Contact information 1. The addresses of the Parties to this Grant Agreement and other relevant bodies at the time of signing are as follows: Focal Point: Ministry of Finance of the Republic of Latvia Att: Ronalds Fisers Smilšu str. 1 Riga LV-1919 Latvia Telephone: +371 7095 535/422 Fax: 371 7095 601 E-mail: Ronalds.Fisers@fm.gov.lv Financial Mechanism Committee and the Financial Mechanism Office: The Financial Mechanism Office European Free Trade Association Att.: Director of the Financial Mechanism Office Boulevard du Régent 47-48 B-1000 Brussels Belgium Telephone: +32 (0)2 286 1701 Telefax (general): +32 (0)2 286 1789 E-mail: fmo@efta.int Intermediary: Society Integration Foundation Brivibas iela 40-39 LV-1050 Riga Latvia Telephone: +371 7281 752 Fax: +371 7078 224 Email: info@lsif.lv Disbursement Agent: BBVA Avenue des Arts 43 1040 Brussels Belgium 2. Changes of the above contact information shall be given in writing without undue delay by each party to this Grant Agreement. Article 9 Entry into force and duration 1. This Grant Agreement shall enter into force on the date of the last signature of the Parties. 2. This Grant Agreement shall remain in force until 5 years have elapsed after the date of the acceptance of the Project Completion Report. ******** This Grant Agreement is drawn up in two originals in the English language. Signed in Brussels Signed in Riga on 15.03.2007 on 28.06.2007 For the Financial For the Focal Point Mechanism Committee Anders Erdal Irēna Krūmane Chairman State Secretary Annex 1
Terms and Conditions for
Funds Money Facility and NGO
Funds) Chapter 1 Scope, Legal
Framework, Article 1.1 Scope These terms and conditions form an integral part of the Grant Agreement and shall apply to the implementation of the Fund. Article 1.2 Legal Framework The Grant Agreement shall be read in conjunction with the following documents which, together with the Grant Agreement, constitute the legal framework of the EEA Financial Mechanism 2004-2009: (a) Protocol 38a to the EEA Agreement, establishing the EEA Financial Mechanism 2004-2009; (b) The Rules and Procedures for the implementation of the EEA Financial Mechanism 2004-2009 adopted by the EFTA States in accordance with Article 8(2) of Protocol 38a, as amended; (c) The Memorandum of Understanding on the Implementation of the EEA Financial Mechanism 2004-2009, entered into between the EFTA States and the Beneficiary State. Article 1.3 Definitions General terms, institutions and documents referred to in the Grant Agreement shall be understood in accordance with the provisions of the legal framework referred to in Article 1.2. Chapter 2 General Principles related to the Implementation of the fund Article 2.1 Co-operation 1. The Parties shall take all appropriate and necessary measures to ensure fulfilment of the obligations and objectives arising out of the Grant Agreement. 2. The Parties agree to provide all information necessary for the good functioning of the Grant Agreement and to apply the highest degree of transparency and accountability as well as the principles of good governance, sustainable development and gender equality. 3. The Parties shall promptly inform each other of any circumstances that interfere or threaten to interfere with the successful implementation of the Fund. Article 2.2 Representation and communication All communication to the Financial Mechanism Committee in regard to the Grant Agreement shall be directed to the Financial Mechanism Office, which generally represents the Financial Mechanism Committee towards the Focal Point. Article 2.3 Main responsibilities of the Focal Point 1. The Focal Point is responsible and accountable for the overall management of the EEA Financial Mechanism 2004-2009 in the Beneficiary State. 2. The Focal Point shall be responsible for the implementation of the Grant Agreement and shall: (a) ensure that the Fund is implemented in accordance with the Grant Agreement (b) take all necessary steps to ensure that the Intermediary is fully committed and able to implement and manage the Fund (c) ensure that the Grant is used exclusively for the purpose of the Fund and its subprojects and according to the approved Project Implementation Plan and that any necessary financial contributions in addition to the Grant are received in a timely manner (d) ensure that all relevant Community, national and local legislation (including, but not limited to legislation on the environment, public procurement and state aid) shall be fully complied with (e) ensure that all assets forming part of the Fund are used only for such purposes as provided for in the Grant Agreement (f) ensure publicity of the Fund in accordance with Article 5.4 of the Rules and Procedures and the Publicity Guidelines (g) ensure that the Financial Mechanism Committee is upon request provided with all documents and information related to the implementation of the Fund (h) make all the necessary and appropriate arrangements in order to strengthen or change the way the Fund is managed. Article 2.4 Monitoring and audit by the Focal Point 1. The Focal Point shall be responsible for monitoring of the Fund and its sub-projects. The monitoring shall be thorough enough to enable the Focal Point to certify the information provided by the Intermediary in the reports referred to in the Beneficiary State Reporting and Monitoring Guidelines. 2. The Focal Point shall ensure a complete audit trail in all engaged actors in accordance with Article 6.1 of the Rules and Procedures and sound accounting principles and methods. 3. The Focal Point shall ensure that audit of the Fund and its sub-projects is conducted in accordance with the audit plan provided according to Article 6.2 of the Rules and Procedures. If necessary, the Focal Point shall draw upon services of a reputable and well established audit company. Furthermore, the Fund should be included in the existing control/audit procedures of the Intermediary. 4. The Focal Point shall, in accordance with Article 6.2 of the Rules and Procedures, provide the Financial Mechanism Committee with summaries of all audit reports relevant to the Fund and/or its sub-projects. The Focal Point shall upon request provide the Financial Mechanism Office, the Financial Mechanism Committee, or the EFTA Board of Auditors with any audit report relevant to the Fund and/or its sub-projects, including auditing reports from the Supreme Audit Institution. Article 2.5 Immediate reporting on irregularities and other relevant developments 1. The Focal Point shall ensure efficient and prompt investigation of any suspected and actual cases of fraud and irregularity. The Focal Point shall, in accordance with the Irregularities Guidelines adopted by the Financial Mechanism Committee, immediately report to the Financial Mechanism Committee all suspected and actual cases of fraud and irregularity as well as all measures related thereto, taken by competent national authorities. 2. The Parties shall immediately inform each other if they become aware of any legal actions initiated or continued against the Fund and/or its sub-projects, including actions or decisions taken by the European Community institutions. Article 2.6 Implementation contract with the Intermediary 1. The Focal Point shall ensure the signing of a contract with the Intermediary on the implementation of the Fund. Such implementation contract shall ensure that the obligations undertaken by the Focal Point in this Agreement are properly delegated to the Intermediary in a manner which ensures enforceability of these obligations. In cases where the Grant, due to provisions in the national legislation, cannot be disbursed to the Intermediary on the basis of an implementation contract, the Beneficiary State may instead issue a legislative or administrative act of similar effect. 2. Delegation of obligations referred to in paragraph 1 of this Article does not in any way affect the obligations and responsibilities of the Focal Point under this Grant Agreement. 3. Prior to the first disbursement, the Focal Point shall have submitted to the Financial Mechanism Committee a standard version of such an implementation contract or implementation act. 4. Prior to the first disbursement, the Focal Point shall provide the Financial Mechanism Committee with the following information on the contract or act relevant to the Fund: (a) full legal name of the Intermediary; (b) number of application (FMO number) and name of Fund; (c) date of entry into force of the contract or date of issuance of the act, and (d) information as to which standard version of the contract or act is used for the Fund. 5. If the standard version of the contract or the act has already been sent to the Financial Mechanism Committee, the reference in paragraph 4(d) of this article is to be considered a fulfilment of paragraph 3. 6. Upon request, the Focal Point shall provide the Financial Mechanism Committee with a copy of the implementation agreement or act, accompanied by a translation into English. Article 2.7 Representations and Warranties The Focal Point represents and warrants that the information provided by, through, or on behalf of the Focal Point in connection with the application for funding, and the conclusion and implementation of this Grant Agreement are authentic, accurate and complete. Chapter 3 Disbursement and Eligibility Article 3.1 Eligible Expenditures 1. Only expenses that are eligible according to Article 3.1 of the Rules and Procedures and the Detailed Eligibility Provisions - Expenditures can form the basis for the financing from the EEA Financial Mechanism 2004-2009. 2. Final acceptable payment claims must be received within six months of the last date for eligible expenditures referred to in Article 4 of the Grant Agreement. Payment claims received at a later date or deemed not acceptable by the Financial Mechanism Committee will not constitute a basis for disbursement. 3. The Financial Mechanism Committee can, in accordance with Article 3.1.3 of the Rules and Procedures, extend the period of eligibility. Article 3.2 Disbursement of the Grant 1. Disbursements are made in accordance with the approved Project Implementation Plan based on requests for disbursements submitted by the Paying Authority. 2. Before disbursement can be made, the Financial Mechanism Committee shall be provided with a Project Interim Report both in electronic and hard copy, certified by the Focal Point and the Paying Authority in accordance with the Disbursement Guidelines and the Beneficiary State Reporting and Monitoring Guidelines. The Project Interim Report shall cover a period of at least 3 calendar months and be related to expenditures from that period. 3. When the required documents have been provided the Financial Mechanism Committee shall verify that they are in the correct form and that the conditions for the disbursement have been met. Unless the Financial Mechanism Committee decides to make use of remedies provided in Chapter 6, the Financial Mechanism Committee shall as soon as possible and within two months from the receipt of the disbursement request, order its Disbursement Agent to execute the disbursement in question to the Paying Authority. The Financial Mechanism Committee shall notify the Paying Authority when such disbursement order has been submitted. 4. In case of an error made in relation to a disbursement resulting in a higher amount paid than required under the Grant Agreement, the Focal Point shall, upon request from the Financial Mechanism Committee, reimburse without delay any amount unduly disbursed. Similarly, if an error results in a lower amount paid than required, the Financial Mechanism Committee shall, as soon as possible after being made aware of such an error, disburse the missing amount. 5. The principle of pro rata financing of costs incurred shall apply, meaning that the grant rate referred to in Article 2 of the Grant Agreement shall not be exceeded at any time during the implementation of the Project. This is without prejudice to Article 3.4. 6. When the disbursement has been made, and received by the Paying Authority in full, the Financial Mechanism Committee has fulfilled its obligations relating to that disbursement. 7. If any of the conditions justifying suspension of disbursements or reimbursement of funds under Articles 6.1.1 or 6.2.1 apply, the Financial Mechanism Committee may instruct the Focal Point, that disbursed funds may not be used for any or all of the subprojects to which such conditions apply, and/or for management cost if the conditions relate to the role of the Intermediary. The Focal Point shall ensure that the Intermediary will act in compliance with such an instruction. Article 3.3 Transfer and Use of the Grant 1. The Focal Point shall ensure that the Paying Authority, within fifteen working days of receipt of the disbursement, transfers the disbursement to the Intermediary. The Financial Mechanism Committee shall be notified by e-mail before the 15th of each month of the transfers made in the previous month. Such notification shall contain the amount transferred, the name of the recipient, the FMO project number, and the date of the transfer. 2. The Focal Point shall ensure that the Intermediary will establish two accounts, one for management costs and one for re-granting. Article 3.4 Increased cost If the cost of the management of the Fund should exceed the management cost stipulated in Article 2 paragraph 5 of the Grant Agreement, the Focal Point shall ensure that the Intermediary obtains or provides any such additional funds so as to ensure the full implementation of the fund. Chapter 4 Obligations related to the Implementation of the fund Article 4.1 Modification of the Fund 1. The following modification of the Fund is subject to the Financial Mechanism Committee's prior written approval: (a) modification of the scope, objectives, purpose, or results of the Fund, (b) modification of the conditions for grants to end-recipients, (c) transfer between activities beyond 15% of the total amount of the Fund, (d) modification of any of the items described in Annex III to the Grant Agreement. 2. Before submitting the proposed modifications, the Focal Point shall approve them and confirm that they are necessary and/or suitable for the effectiveness of the Fund. 3. If there is a doubt as to whether the proposed modifications require approval by the Financial Mechanism Committee, in particular when the modifications relate to issues described in Annex III to the Grant Agreement, the Focal Point shall consult the Financial Mechanism Office before such modification takes effect. 4. Modifications under paragraph 1 may require a new appraisal prior to being accepted or rejected. Article 4.2 Revision of the Project Implementation Plan The Focal Point must submit a revised Project Implementation Plan to the Financial Mechanism Committee when: (a) proposing modification which requires an approval by the Financial Mechanism Committee according to Article 4.1, provided that such modification affects the Project Implementation Plan, (b) any of the reporting periods for the Project Interim Reports scheduled in the Project Implementation Plan are changed; a revised Project Implementation Plan shall be submitted no later than 60 days before the end of the first affected reporting period, or, (c) the Financial Mechanism Committee requests an updated Project Implementation Plan; a revised Project Implementation Plan shall be submitted no later than 30 days after such request is sent. Article 4.3 Special provisions on procurement and awarding of contracts 1. The Focal Point shall ensure that public procurement principles and procedures following from national and Community legislation are applied at any level in the implementation of the Grant Agreement. 2. In cases where contracts concluded as part of the implementation of the Fund fall below the national or Community thresholds set for public procurement or outside the scope of the applicable public procurement laws, the Focal Point shall ensure that the awarding of such contracts (including the procedures prior to the awarding) and the terms and conditions of such contracts comply with best economic practices, including accountability, allow a full and fair competition between potential providers, and ensure the optimal use of resources from the EEA Financial Mechanism 2004-2009. 3. The Focal Point shall ensure that the highest ethic standards are observed during the procurement and execution of contracts, and shall ensure the application of adequate and effective means to prevent illegal or corrupt practices. No offer, gifts, payments or benefit of any kind, which would or could, either directly or indirectly, be construed as an illegal or corrupt practice, e.g. as an inducement or reward for the award or execution of procurement contracts, shall be accepted. 4. The Focal Point shall ensure that records of the awarding and execution of contracts are kept and provided upon request to the Financial Mechanism Committee. Article 4.4 Reporting The Focal Point shall provide Project Interim Reports, Annual Project Progress Reports and the Project Completion Report in accordance with the Beneficiary State Monitoring and Reporting Guidelines. Chapter 5 External Monitoring and Audit Article 5.1 Monitoring by the Financial Mechanism Committee The Financial Mechanism Committee may monitor the implementation and the progress of the Fund and/or its sub-projects in order to ensure that it is in compliance with the Grant Agreement. Article 5.2 Audit by the Financial Mechanism Committee In accordance with Article 6.4 of the Rules and Procedures, the Financial Mechanism Committee may at any time arrange its own audits and inspections of the Fund and/or its sub-project at all relevant locations. Article 5.3 Audit by EFTA Board of Auditors In accordance with Article 6.3 of the Rules and Procedures, the EFTA Board of Auditors may at any time conduct audits of the Fund and/or its sub-projects at all relevant locations. Article 5.4 Access 1. The Focal Point shall ensure that the Financial Mechanism Committee and the Financial Mechanism Office or anyone mandated to perform tasks on their behalf, and the EFTA Board of Auditors, have upon request, prompt, full, and unimpeded access to all information, documents, persons, locations and facilities, public or private, relevant to the implementation of the Grant Agreement. Such access is subject to the applicable limitation under the national legislation of Beneficiary State. 2. The Focal Point shall, upon request, ensure that the above mentioned authorised representatives are accompanied by relevant personnel and provide them with the necessary assistance. Request under this paragraph shall be sent at least two weeks before the planned visit. Article 5.5 Responsibility The external monitoring and audit referred to in this chapter shall not in any way relieve the Focal Point of its obligations under the Grant Agreement regarding monitoring of the Fund and/or its sub-project, financial control and audit. Chapter 6 Suspension and reimbursements Article 6.1 Suspension of Disbursements 1. The Financial Mechanism Committee may decide to suspend disbursements of the Grant if: (a) the conditions for disbursement in accordance with Article 3.2 have not been met, (b) credible information indicates that the implementation or the progress of the Project does not correspond to the Project Implementation Plan or is not in compliance with the Grant Agreement, (c) reports referred to in Article 4.4 or any other information requested has not been provided or include incomplete information, (d) access required under Chapter 5 is restricted, (e) the financial management of the Fund has not been in accordance with internationally recognised accounting principles, (f) it becomes aware of suspected or actual cases of irregularities or fraud, or if such cases have not been adequately reported, investigated or remedied, (g) the implementation of the Fund is deemed to be in violation of Community law, (h) a fundamental change of circumstances occurs and said circumstances constitute an essential basis for the Grant Agreement or the contribution from the EEA Financial Mechanism 2004-2009 to the Project, (i) it becomes aware of any misrepresentation of facts in any information given by or on behalf of the Focal Point affecting, directly or indirectly the implementation of the Grant Agreement, (j) interests generated on the designated bank account of the Paying Authority have not been accounted for according to Article 3.2 of the Disbursement Guidelines, (k) an adjustment of the Grant is required in order to comply with the grant rate referred to in the Grant Agreement or the requirements referred to in Article 3.2 of the Rules and Procedures, or (l) any other obligation stipulated in the Grant Agreement is not complied with by the Focal Point. 2. The Financial Mechanism Committee may suspend payments if any of the conditions in littera (b), (e), or (g) applies to any of the sub-projects and the Intermediary has not complied with requests from the Focal Point and/or the Financial Mechanism Committee to take the appropriate and necessary measures to remedy such deficiencies and prevent further loss of funds. Suspension due to deficiencies in sub-projects shall be proportionate to the scope and extent of the breach. 3. If possible, the Focal Point shall be given an opportunity to provide its views before the Financial Mechanism Committee takes a decision to suspend disbursements. The decision to suspend disbursements shall be reasoned and immediately effective. The Focal Point shall be notified as soon as possible but no later than 7 workings days from the date of the decision. 4. The Focal Point can at any time present documents or other evidence showing that the conditions in paragraph 1 (a) to (l) no longer apply or do not justify suspension of disbursements, and request that the Financial Mechanism Committee reviews its decision to suspend payments. 5. When the Financial Mechanism Committee finds that the conditions described in paragraph 1 (a) to (l) above no longer apply or justify suspension of disbursements, it shall take a decision to continue disbursements. Article 6.2 Reimbursement 1. In case of serious non-compliance with the Grant Agreement, or if suspension of payments is not feasible or likely to be sufficient, the Financial Mechanism Committee may, after having consulted the Focal Point with a view to reaching a solution, decide to demand reimbursement if any of the conditions referred to in littera (b) to (l) of Article 6.1.1, apply; or if Article 6.1.2 applies, demand reimbursement of funds intended or paid to end-recipients, subject to paragraph 2 of this article. 2. The Financial Mechanism Committee shall not demand reimbursement of funds that were lost due to irregularities or misuse of funds in a sub-project, if the Focal Point shows that such a loss or its late detection is not due to a negligent or non performance of its or the Intermediary's duties, and the Focal Point and the Intermediary have taken all reasonable measures to recover such funds. 3. Prior to making a decision referred to in paragraph 1 of this article, the Financial Mechanism Committee shall notify the Focal Point of its intention to demand reimbursement. The notification shall outline the reason for the proposed measures. The Focal Point can within 45 working days from the date of the notification provide any documents relevant to the decision. 4. At any time prior to the decision to demand reimbursement, the Focal Point and the Financial Mechanism Committee can enter into a dialogue with a view to ensure that the said decision is based on accurate and correct facts. 5. The Focal Point shall be notified of a decision referred to in paragraph 1 of this article as soon as possible but no later than 7 workings days from the date of the decision. The notification shall outline the reason for the decision. 6. Within three months from the decision of the Financial Mechanism Committee referred to in paragraph 1 of this article, the Focal Point shall, with the exception stipulated in paragraph 8 of this article, reimburse the Financial Mechanism Committee the amount requested, subject to the specifications detailed in the decision. 7. Reimbursement from the Focal Point to the Financial Mechanism Committee is not contingent upon reimbursement from the Intermediary or the end-recipient. 8. If the Intermediary is a private entity and the Focal Point shows that it has and is taking appropriate measures to recover the funds from the Intermediary, the Financial Mechanism Committee can decide to give the Focal Point up to one year to reimburse the requested funds. In such a case, the Financial Mechanism Committee can also decide to contribute up to 50% of reasonable legal fees related to the recovery of the funds from the Intermediary. 9. If a demand for reimbursement to the Financial Mechanism Committee is not complied with by the Focal Point, or a dispute related to a demand for reimbursement arises that cannot be solved in accordance with Article 7.1, the Parties may bring the dispute before Oslo Tingrett in accordance with Article 1.7 of the Rules and Procedures. Article 6.3 General suspension of disbursements 1. The Financial Mechanism Committee may, after having consulted the Focal Point with a view to reaching a solution, suspend payments if: (a) information or documents obtained by or provided to the Financial Mechanism Committee indicate the presence of systemic or widespread shortcomings regarding the management of the financial contribution from the EEA Financial Mechanism 2004-2009 in the Beneficiary State, or (b) a demand for reimbursement related to any type of project assistance in the Beneficiary State financed by the EEA Financial Mechanism 2004-2009 has not been complied with by the Focal Point. 2. The procedures referred to in paragraphs 3 to 5 of Article 6.2 shall apply mutatis mutandis to suspension of disbursements under this article. 3. If the situation referred to in paragraph 1(a) of this article relate directly to this Fund, the Financial Mechanism Committee can apply the procedures under Article 6.1. Chapter 7 Final provisions Article 7.1 Dispute settlement The Parties waive their rights to bring any dispute related to the Grant Agreement before any national or international court, and agree to settle such a dispute in an amicable manner. This article shall be without prejudice to paragraph 9 of Article 6.2. Article 7.2 Waiver of Responsibility 1. Any appraisal of the Fund undertaken before or after its approval by the Financial Mechanism Committee, does not in any way diminish the responsibility of the Focal Point to verify and confirm the correctness of the documents and information forming the basis of the Grant Agreement. 2. Nothing contained in the Grant Agreement shall be construed as imposing upon the Financial Mechanism Committee or the Financial Mechanism Office any responsibility of any kind for the supervision, execution, completion, or operation of the Fund or its sub-projects. 3. The Financial Mechanism Committee does not assume any risk or responsibility whatsoever for any damages, injuries, or other possible adverse effects caused by the Fund or its sub-projects, including, but not limited to inconsistencies in the planning of the Fund, its sub-projects, other project(s) that might affect it or that it might affect, or public discontent. It is the full and sole responsibility of the Focal Point to satisfactorily address such issues. 4. Neither the Focal Point, nor the Intermediary, nor the end-recipients or any other party shall have recourse to the Financial Mechanism Committee for further financial support or assistance to the Fund in whatsoever form over and above what has been provided for in the Grant Agreement. 5. Neither the European Free Trade Association, its Secretariat, including the Financial Mechanism Office, its officials or employees, nor the Financial Mechanism Committee, its members or alternate members, nor the EFTA States, can be held liable for any damages or injuries of whatever nature sustained by the Focal Point or the Beneficiary State, the Intermediary, end-recipients or any other third person, in connection, be it direct or indirect, with the Grant Agreement. Article 7.3 Language 1. All communications shall take place in the English language. 2. To the extent that original documents are not available in the English language, the documents shall be accompanied by full and accurate translations into English. 3. The Focal Point shall bear the responsibility for the accuracy of the translation and the possible consequences that might arise from any inaccurate translations. Annex 2
Annex 3
EEA Financial Mechanism 2004-2009 Norwegian Financial Mechanism 2004-2009 Fund set-up 1. Description of sub-projects 1.1 Eligible activities (sub-measures if any): The Fund will support the preparation of individual projects in all priority areas and their respective focus areas of the EEA and Norwegian Financial Mechanisms (except for the Schengen priority area) in the Republic of Latvia. The Fund shall especially support; development of innovative ideas in use of EEA and Norwegian Financial Mechanisms; development of complex project themes and preparation of complex projects and establishment of new partnerships with intention to prepare project applications. 1.2 Eligible applicants: Eligible applicants are public administrations or municipal bodies and affiliated institutions/agencies; educational institution established by the State or a municipality; State scientific institutions; State agencies; societies; foundations or enterprises that are established and registered as legal entities in the Republic of Latvia. 1.3 Minimum and maximum grant amount per sub project: Minimum amount of grant is € 5,000. Maximum amount of grant is € 20,000. 1.4 Duration of sub-projects: There are no restrictions on the minimum duration of sub-projects. The implementation of a sub-project shall be concluded no later than on the date of the closing of the second open call in Latvia. 1.5 Co-financing: A grant from the Fund shall not exceed 90 percent of total eligible costs of the sub-project. The remaining cost of the sub-project shall be provided or obtained by the end-recipient from other sources. 1.6 Eligibility of costs, including in-kind: Costs are eligible if they are justified, necessary and appropriate, and related to the subproject's long term effects and planned results. Further, eligible costs must be duly explained and in line with the Detailed Eligibility Provisions - Expenditure. The main types of eligible costs are salaries, travel & subsistence, external expertise and administration costs. In-kind contributions that fall within Article 2.2 of the Detailed Eligibility Provisions - Expenditure are eligible. In-kind contribution can constitute up to 5% of the total eligible cost of the sub-project. 2. Selection of sub projects 2.1 Institutional set-up: The SIF Council shall act as a Steering Committee for the operation and shall approve or reject applications. The SIF Council is appointed and approved by the Cabinet of Ministers and consists of representatives from line ministries, regional authorities and from the NGO community in Latvia. The Chairman of the Council is selected by its members. The Evaluation Committee, appointed by the SIF Council, will carry out the quality assessment of applications for grants. The Evaluation Committee consists of members from the Intermediary and external experts. The application form and standard grant contract with annexes shall be approved by the Director of SIF. The Director of SIF has the signatory powers of the Fund and functions as the executer of State budget allocated for Fund. The grant contract with the end-recipient shall be signed by the Director of SIF. 2.2 Selection process and procedures: The availability of grants from the Fund shall be announced in an open call. All applications shall be examined and evaluated by the Intermediary in accordance with the administrative and eligibility criteria. The qualitative and financial evaluation of the applications shall be carried out by the Evaluation Committee. The Evaluation Committee may involve external experts in the evaluation of applications' quality and financial aspects. The Evaluation Committee shall provide a ranked list of projects for approval by the SIF Council. The Intermediary shall inform applicants whose applications are rejected about the reasons for the rejection. Applicant whose application is rejected due to non-compliance with administrative or eligibility criteria can request the Intermediary to review its decision. The applicant shall submit such a request within 10 days from being notified about the rejection and shall provide reasons for why the decision should be overturned. 2.3 Selection criteria: Selection and evaluation criteria involve administrative, eligibility, qualitative and financial checklists where scores are given to each criterion. The qualitative and financial evaluation criteria focus on the applicants' capacity to implement the project, the level of complexity/innovativeness, relevance and the economic feasibility of the project. During the review of the administrative and eligibility criteria, the Intermediary may ask the applicant to provide additional information or clarification. The evaluation of the quality of applications, including the proposed budget, shall be carried out in accordance with the evaluation criteria set out in the evaluation grid. The Evaluation Committee evaluates projects grouping them to two months periods according to the time of submission. 2.4 Open calls and availability of funds (including number of calls, duration of calls, and estimated size): Grants from the Fund shall be made available for preparation of individual projects to be submitted during the second open call in Latvia. The Intermediary shall organise one call for applications for sub-projects. The duration of the call shall not be less than two months. 3. Arrangement by Intermediary for monitoring and receiving reports from endrecipients The monitoring unit of the Intermediary shall be responsible for monitoring and controlling implementation of the supported sub-projects (regular communication with end-recipients on relevant issues and monitoring visits, checking payment requests, progress, technical and financial reports). The financial control unit of the Intermediary shall be responsible for providing consultations on financial and accounting issues to the programme unit, which is the secretariat to the SIF Council. The financial control unit will throughout the life-cycle of sub-projects conduct relevant double checks (grant contracts, financial reports, and payment requests) The internal audit unit of the Intermediary shall perform audits to a number of selected end-recipients during or after implementation of the sub-projects. Reports from the end-recipient shall be prepared according to the format provided in the contract. The end-recipient shall submit quarterly progress reports and a final report. The quarterly report shall include information on progress and payments made. The final report shall include documentation of activities and payments. 4. Reporting from Intermediary to Focal Point The Intermediary will submit quarterly Project Interim Reports to the Focal point. The accounting unit of the Intermediary shall be responsible for preparing the part of the Project Interim Report relevant to the payment claim on the basis of the signed contracts or approved reports and submitting them to the Paying Authority. 5. Disbursements to Intermediary (management costs) 5.1 Advance payment scheme: 10% of the management costs will be paid as an advance payment, to be set off when 80% of the amount for management cost has been disbursed. 5.2 Subsequent disbursements: Disbursement of incurred costs will be made following acceptance of Project Interim Reports. Final disbursement of the balance of the incurred management costs will be made following acceptance of the Project Completion Report. 6. Disbursement to Intermediary (funds for re-granting) 6.1 Advance payment scheme: 80% of the funds for re-granting announced in the open call shall be disbursed to the Intermediary 10 working days after the closing of the call. Disbursements of subsequent funds for re-granting shall be made as advance payment in a manner to be set out in the Project Implementation Plan and requested through the Project Interim Reports. The payment scheme shall ensure that sufficient funds are available for a timely transfer of funds to the end-recipients, whether advance payments, subsequent instalments, or final payments. 6.2 Subsequent disbursements: N/A 7. Disbursements to end-recipients 7.1 First date of eligibility: Costs in sub-projects become eligible at the date of grant decision by the Intermediary. 7.2 Advance payments and disbursements: End-recipients shall receive the first advance payment (25% of the grant) after the signature of the contract. An additional 55 percent of the grant may be paid as advance instalments, in equal shares for each quarter of the scheduled implementation, after submission of a quarterly interim report. The balance payment (20% of the grant) shall be paid after approval by the Intermediary of the final report. If the sub-project lasts three months or less, no interim report is necessary, initial advance payment may be up to 80% and the remaining amount of the grant will be paid after the approval of the final report. 8. Publicity 8.1 Intermediary level: The publicity measures shall be in accordance with the Publicity Guidelines and the submitted publicity plan. They shall ensure transparency by providing possible applicants with adequate and high quality information about EEA Grants in general, as well as be designed to raise public awareness and disseminate information about the Fund. The focus of the publicity measures shall be on informing the broader public about opportunities provided under the Financial Mechanisms and encourage development of project ideas. Activities in this period include: advertisements, electronic leaflet, booklet, website and seminars. Information and publicity activities shall continue throughout the operation in order to raise awareness of the available funds. Before and during the call launch, advertisements shall be made in national newspapers of the Republic of Latvia (in Latvian and Russian). The call shall take into account the principles of the Open Calls Guide. An electronic leaflet informing about the launch of the Fund and informing about seminars shall be developed. The Intermediary shall organise one to three information seminars in Riga, depending on number of participants, and at least one seminar in each of the regions. A list of approved grant applications shall be published and regularly updated on the websites of the Intermediary and the Focal Point. 8.2 Sub project level: The end-recipients must ensure that appropriate visibility and credit is given to the EEA Financial Mechanism and Norwegian Financial Mechanism. Such publicity measures should be included in reports and publications stemming from the sub-projects and in public events associated with the sub-projects. |
Tiesību akta pase
Nosaukums: Par starptautisko līgumu spēkā stāšanos
Izdevējs: Ārlietu ministrija
Veids:
informācija
Numurs: 41/829-6200Pieņemts: 10.07.2007.Publicēts: Latvijas Vēstnesis, 132, 16.08.2007.
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