EU-TURKEY CHAMBER FORUM EU TURKEY CHAMBERS PARTNERSHİP GRANT SCHEME PROJECT MANAGEMENT 2009 Burcu Atılgan-Grant Expert TOBB EU Department 1

Content Project Management Grant Contract Project Documentation and Accountancy Reporting Requirements Procurement Monitoring and Support Activities

Project Management Project Management Body of Knowledge I. Project Scope Management II. Project Procurement Management III. Project Time Management IV. Project Cost Management V. Project Risk Management VI. Project Quality Management VII. Project Human Resources Management VIII. Communications Management IX. Project Integration Management

Project Management Project Management Body of Knowledge.

Project Management I. Project Scope Management

Project Management II. Project Procurement Management

Project Management III. Project Time Management

IV. Project Cost Management Project Management IV. Project Cost Management As part of your application you have completed planning, estimating and budgeting processes. During the implementation of your project you will need to control the budget that you have proposed intensively.

Project Management V. Project Risk Management

For the purposes of simplicity in our grant Project Management VI. Project Quality Management For the purposes of simplicity in our grant projects, project managers shall monitor their project indicators through the course of their project. Your major source for performance indicators should be your logframe.

Project Management VI. Project Quality Management

VII. Project Human Resources Management Project Management VII. Project Human Resources Management Human Resource Planning determines project roles, responsibilities and reporting relationships. It is important that each project member is aware of his/her role and duties within the project.

collect, distribute, store information. Project Management VIII. Communications Management Proper Project Communication Management ensures your project to timely; generate, collect, distribute, store information.

activities within the Project Management Process Groups. IX. Project Integration Management The Project Integration Management includes processes and activities needed to identify, define, combine, unify and coordinate various processes and project management activities within the Project Management Process Groups.

GRANT CONTRACT

Contracts Grant Contract – signed between the Contracting Authority and the Beneficiary Contract should also be in line with legal provisions of Labour Code, Occupational Safety and Health Legislation, Tax and Accountancy Laws and any other relevant legislation in beneficiary country 16

Major Parts of Grant Contract The Special Conditions (project duration, total project cost and the grant, reporting and payment schedule) Annex I of Grant Contract: “Description of the action” -Significant modifications of activities may need an Addendum to the contract. Annex II of Grant Contract: “General Conditions” specify the general obligations and financial provisions under the contract

Major Parts of Grant Contracts Annex II : General Conditions General conditions specify the general obligations and financial provisions under the contract. Reporting Liability of Parties Visibility of Projects Ownership of the Equipments Evaluation/Monitoring Contract Ammendments Eligible costs Extension, Suspension, Termination of Projects Payment Methods And other legal issues 18

Major Parts of Grant Contracts Annex III of Grant Contract: “Budget for the action” Budget is a breakdown of all eligible project related costs. Annex IV of Grant Contract: “Contract Award Procedures” -awarding contracts for services, supplies and works to external organisations Annex V of Grant Contract: This annex contains standard templates that you have to use: Legal Entity Sheet, Request for Payment, Financial Identification Form Annex VI of Grant Contract: This annex contains standard forms for Interim, Final narrative and Financial Report. Annex VII of Grant Contract: Model of Expenditure Verification Report - it is also obligatory to obtain an Independent Audit Report before requesting the final payment.

Modifying Grant Contracts Modification Minor Changes Major Changes 20

Modification Minor Changes changes in activities or budget that do not affect the basic purpose of the project transfer between budget headings involving a variation of 15% or less Changes of address or phone number Changes of bank account Change of project manager or key experts Increase or decrease in numbers of equipment or unit prices without changes of the budget amount allocated for that budget item Model/brand name change of the equipment as a new technology Following rules always apply: The modifications must not have the purpose or the effect of making such changes to the contract as would call into question the grant award decision or be contrary to the equal treatment of applicants. Grant contracts can only be modified within the lifetime of the contract, modifications cannot be made retroactively. The maximum amount of the grant may not be increased. Any modification extending the performance period of the contract must be such that implementation and final payments can be completed before the expiry of the financing decision. As the case may be the implementation has to be completed before the expiry of the implementation period of the financing agreement, under which the initial grant contract was financed. Requests for contract modifications to grant contracts must be made (by one contracting party to the other) allowing an adequate time-limit for the addendum to be signed before the modifications are intended to enter into force. Please keep in mind that major modifications need formal Addendums to be processed which may take long periods. A copy of an addendum request is attached as supporting document 202 to this guide. Contract change should be firstly communicated to the relevant Monitoring Expert. The Contracting Authority takes a decision after receiving the consent from the relevant Monitoring Expert. 21

Modification Major Changes Extension or early closing of the contract Significant changes in activities affecting the basic purpose and indicators of the project. Transfer amongst budget headings outside the limits of minor modification (15%) Addition or cancellation of a new budget item in the Budget Change of project Partners (addition or replacement) Changes in your organisation’s name or legal status Adding new item or deducting an existing item from the budget Following rules always apply: The modifications must not have the purpose or the effect of making such changes to the contract as would call into question the grant award decision or be contrary to the equal treatment of applicants. Grant contracts can only be modified within the lifetime of the contract, modifications cannot be made retroactively. The maximum amount of the grant may not be increased. Any modification extending the performance period of the contract must be such that implementation and final payments can be completed before the expiry of the financing decision. As the case may be the implementation has to be completed before the expiry of the implementation period of the financing agreement, under which the initial grant contract was financed. Requests for contract modifications to grant contracts must be made (by one contracting party to the other) allowing an adequate time-limit for the addendum to be signed before the modifications are intended to enter into force. Please keep in mind that major modifications need formal Addendums to be processed which may take long periods. A copy of an addendum request is attached as supporting document 202 to this guide. Contract change should be firstly communicated to the relevant Monitoring Expert. The Contracting Authority takes a decision after receiving the consent from the relevant Monitoring Expert. 22

Modification Process for Minor Change Within 10 days of implementation of the change 2 hard copies to Support Unit (a copy of request should be filed by Grant Beneficiary also) 23

Modification Process for Minor Change Beneficiary makes the change Inform the SU SU sends the notification letter to Contracting Authority (CFCU) (with cheklist) Contracting Authority (CFCU) might not accept that the change is minor - this means that costs made might not get approved. 24

Deadlines for notification Modification Deadlines for notification Minor change How to notify Deadline Small change of activities with no budgetary implications Bi-monthly reports and Interim or Final Report Next report Small changes of activities with budgetary implications Notifications letter 10 days before the implementation of the change Changes of address Changes of bank account Change of expert (including all persons under Human Resources) Change of auditor Notifications letter or Interim/Final Report 25

Modification Process for Major Change Preparing an addendum: Prepare a request for addendum, following the Standard Form-2 in English and in Turkish in three hard copies. 3 hard copies to Support Unit (a copy of request should be filed by Grant Beneficiary also) 26

Modification The request for Addendum should contain a detailed description of the requested modification and the reason for modifications. 27

Modification Any addendum modifying the budget must include a replacement budget showing how the full budget breakdown of the initial contract has been modified by this addendum (and any previous addenda) 28

Modification Budget headings Original Budget Budget of Addendum 1 Human resources Travel Equipment and Supplies Local office/Action costs Other costs, services Others Subtotal direct eligible costs of the Action Total direct eligible costs of the Action Total eligible costs 29

Modification Submission of the addendum request: 30 days before the implementation of the change and at least 1 month before the Contract expiry date. 30

Modification CFCU prepares and sends the Addendum to the Grantee signature. The addendum takes effect on the date of the later signature. Remember that Grantees cannot implement the change before the signature of the Addendum. 31

Eligible Costs General principles: Costs have to be included in the project budget (Annex III of the contract) The activities for which Grantee requests payment should correspond to those described in Annex I of the contract All costs must be real costs, i.e. actually incurred by the Beneficiary (and partners, if applicable) Cost must be recorded in the accounts or tax documents of the Beneficiary (or his partners, if applicable)

Eligible Costs Human Resources : Payment of salaries and fees for staff contracted by the Beneficiary and for partners’ staff. Sub-contracted services (payment to companies under the service contracts tendered following the EC procedures) cannot be claimed under this budget heading. The cost of staff assigned must include actual salaries plus social security charges and other remuneration-related costs.

Eligible Costs Human Resources : Salaries and costs must not exceed those normally borne by the Beneficiary or his partners. Per diems cover all meal, hotel expenses and short distance travel (e.g. within the city). Per diems should be in-line with the budget and should not be higher than the EU max. daily rates(http://europa.eu.int/comm/europeaid/perdiem/liste1_en.htm). Per diems are calculated on overnight basis.

Eligible Costs 2. Travel International travel sub-heading Local transportation subheading All flight tickets and boarding pass should be kept by the beneficiary. The taxes of the tickets will not be eligible costs. If the tickets includes tax (KDV), the cost without taxes will be accepted as eligible.

3. Equipment and supplies Eligible Costs 3. Equipment and supplies All expenditure is VAT free provided relevant certificates and approvals are obtained EC Procurement Rules The rule on eligibility of nationality Eligible Origin of Goods

Eligible Costs 4. Local office / project costs The cost cannot be used for covering cost related to main offices of the Beneficiary (and partners). Cost is eligible only if a new office/ training facilities are opened for the needs of the implementation of project activities. 5 and 6. Others Amounts budgeted under headings 5 & 6 may be used to cover costs for the items specified in the budget and fully sub-contracted services: publications, translation, events, etc.

Eligible Costs 10. Administrative costs A percentage of the final approved total direct eligible costs may be claimed as indirect costs to cover the administrative overheads incurred by the Beneficiary. The costs are eligible provided that: They do not exceed the rate stated in the budget; They do not include costs assigned to another heading of the budget; Their eligibility should conform to items 14, 16 and 17 of the general conditions

Exchange Rates Where actual expenditure is incurred and paid in TRY (or any other currency other than Euro) the conversion into Euro of the real costs borne in other currencies shall be done at the rates published in InforEuro. (www.etcf.org.tr) Expenditures are recommended to be made in Euro to the possible extent. This minimises the risks incurred by currency fluctuations and eases financial reporting. Turkish legislation allows spending in Euro and Euro invoices. In case an invoice is prepared in Euro, the corresponding TRY value should also be indicated. Legally, accounting transactions and documents have to be in TRY. However, documents can also be prepared in foreign currency as long as the corresponding TRY value is indicated

Ineligible Costs Examples: Purchase of second hand equipment

VAT exemption VAT exemption is applicable on all eligible costs associated with grant project. A VAT Exemption Certificate is necessary when making project related procurement based on the planned budget submitted as part of the grant contract.

PROJECT DOCUMENTATION AND ACCOUNTANCY

PROJECT DOCUMENTATION AND ACCOUNTANCY Financial documentation Expenditure Documents All expenditure Proof of purchase such as invoices and receipts Proof of payment such as bank statements, debit notices, proof of settlement by the contractor Proof of delivery of services such as approved reports, proof of attending seminars, conferences and training courses (including relevant documentation and material obtained, list of attendees, certificates), etc The Beneficiary Accounting records (computerised or manual) such as general ledger, sub ledgers and payroll accounts, fixed assets registers and other relevant accounting information

PROJECT DOCUMENTATION AND ACCOUNTANCY Financial documentation Human Resources Staff and payroll records/contracts, salary statements, monthly timesheets, of all project staff Travel Public transport: Transport tickets (including boarding passes in case of travel by air) Rented transport: Invoice from supplier and summary list of distance covered Car: For fuel and oil expenses, a summary list of the distance covered, the average fuel consumption of the vehicles used, fuel costs.

PROJECT DOCUMENTATION AND ACCOUNTANCY Financial documentation Expenditure Documents Subcontracted supplies, services or works Proof of procurement procedures such as tendering documents, bids from tenderers and evaluation reports Proof of commitments such as contracts and order forms Proof of receipt of goods such as delivery slips from suppliers Proof of completion of works, such as acceptance certificates Certificate of origin or a Certificate of Locally Manufactured Production with a Sworn Statement

PROJECT DOCUMENTATION AND ACCOUNTANCY Technical documentation Examples of project documents for some of the project activities. Surveys /studies Reports Publications Copies of publications Seminars, conferences, working meetings Programme List of presentations / conference reports Handouts List of participants List of speakers Minutes (if applicable) Press clippings Feed-back questionnaires (if applicable)

PROJECT DOCUMENTATION AND ACCOUNTANCY Technical documentation Training A detailed description of the training – training modules, training hours per subject, methods, etc. Training schedule List of participants /Attendance sheets List of trainers / lecturers Feed-back questionnaires Training evaluation report Experts Timesheets Copies of the outputs Activities reports

PROJECT DOCUMENTATION AND ACCOUNTANCY Accounting requirements Appropriate accounting and double-entry book-keeping system Accounts and expenditure should be easily identifiable and verifiable separate accounts for the action a simple accounts ledger together with other useful templates.

PROJECT DOCUMENTATION AND ACCOUNTANCY Accounting requirements The Financial Report should be properly and easily reconciled to the Grant Beneficiaries accounting and bookkeeping system.

REPORTING REQUIREMENTS

REPORTS Bi-monthly report Interim narrative report. Final narrative and financial report. Expenditure verification report of a European Community Financed Grant Contract (audit report).

Bİ-MONTHLY PROGRESS REPORT Consist of 5 main sections: Basic contract data Budget achievements during reporting period Realisation of activities Procurement activities Needs of beneficiary

Bİ-MONTHLY PROGRESS REPORT Submission of the bi-monthly progress report: Until the fifth day of following month 1 electronic version and 1 hard copy to SU

REPORTS INTERIM AND FINAL NARRATIVE Narrative section: Project activities/management, participation of partners, relations with key stakeholders, visibility, progress on performance indicators, assessment of the project and notifications about minor contract changes and addenda Templates for the interim and final narrative reports are provided in www.etcf.org.tr

REPORTS INTERIM AND FINAL NARRATIVE You should submit the final version of the Interim and final report(s) in 4 hard copies an 4 CD to: 2 copies to SU 1 copy to ECD 1 copy for the Grant Beneficiary SU will send one copy of the reports to the CFCU with a cover letter and the checklist

REPORTS INTERIM AND FINAL NARRATIVE Submission of the interim report: within 5 days of completion of the half of the project duration Submission of the final report: within 3 months of completion of the project duration

REPORT INTERIM FINANCIAL REPORT-REQUIRED DOCUMENTS For the interim financial report Accounts ledger itemising expenditures must be annexed.

REPORTS FINAL NARRATIVE REPORT-REQUIRED DOCUMENTS “Beneficiary Decleration” signed by the authorised person(s) of the chamber Minor /major change requests and CFCU’s approval letters Copy of the printed materials Contracts (supply/service), invitation letters, tender offers (applications), letters to unsuccessful tenderers, evaluation reports Visibility material samples “Performance Indicators Documents” Training/conference/visit programmes, reports, participants list (Annex3) For the external experts -Training/conference reports, presentations, surveys Copy of the “transfer of title of equipments”( Ekipman Mülkiyet Devri Belgesinin kopyası)(Before the approval of the notariate) (Annex 4)

REPORT FINAL FINANCIAL-REQUIRED DOCUMENTS The bank letter indicating that no interest rate has been applied to the project account and account summary that indicates that the account covers only the project implementation period. “Project Expenditure Summary” and “Account Ledger” (Annex 2)

REPORT FINAL FINANCIAL-REQUIRED DOCUMENTS Human Resources Expenditure List (Annex-2, work page with number 1 ) For every project expert: Work contract or Letter of nomination by the chamber / Copy of the Permission letter Monthly Time sheet CV Payrolls Documents explaining the cost of social security charges and other remuneration-related costs are being retained.

REPORT FINAL FINANCIAL-REQUIRED DOCUMENTS Travel and perdiems Expenditure List (Annex 2, work page with number 2) Transport tickets (including boarding passes in case of travel by air) Related with per diems: Hotel invoices or the copy of the documents that indicates the round trip dates The copy of the document indicating that the perdiems payments are made

REPORT FINAL FINANCIAL-REQUIRED DOCUMENTS Equipment Expenditures List (Annex2, work page with number 3) For every equipment in a separate dossier: Invoice or the document that indicates the payment is made to buy the equipment. For the purchase of the equipments bigger than 5000 Euro: Certificate of the Origin For the purchase of the equipments smaller than 5000 Euro : Contract, market survey document

REPORT FINAL FINANCIAL-REQUIRED DOCUMENTS Local Office Expenditure List (Annex 2, work page with the number 4) Copies of the invoices of vehicle costs, office rent, consumables - office supplies, other services (tel/fax, electricity/heating, maintenance), contract or payment document

REPORT FINAL FINANCIAL-REQUIRED DOCUMENTS Other costs, services expenditure list: (Annex 2, work page with number 5) Expenditures documents (invoices and an explanation letter indicating the aim of the contract) for . Publications Surveys Audit expenditures Translation service Financial services (expenditures for the bank guarantees etc) Conference exp. Visibility activities

REPORT FINAL FINANCIAL-REQUIRED DOCUMENTS Copy of Expenditure Verification Report by Eternal Auditor

EXPENDITURE VERIFİCATION REPORT Known as the audit report Consist of: TOR for an Expenditure Verification of a EC financed Grant Contract for External Actions- should be completed by the (Grant) Beneficiary and be agreed with the Auditor Annex 1: Information about the Subject of the Expenditure Verification Annex 2: Scope of Work – Procedures to be performed 2. Report of Factual Findings for an Expenditure Verification of an EC financed Grant Contract for External Actions-should be provided by the Auditor The template can be found at www.etcf.org.tr

REPORTING REQUIREMENTS- PAYMENT PROCEDURES Pre-financing: %80 of the sum is paid within 45 days of receipt of the Request for Payment (by CFCU) Final payment: CFCU’s 45 day approval procedure of the final narrative and financial reports, Expenditure Verification Report and the Request for Payment

PROCUREMENT

PROCUREMENT Participation in the procurement procedures is open on equal terms to all legal persons who are established in (a) a Member State of the European Community, (b) in an official candidate country as recognised by the European Community, (c) in a Member State of the European Economic Area, or (d) any country other than those referred in a), b) and c), where reciprocal access to their external assistance has been established. The nationality of the company to which the service or the work is contracted can be certified with a certificate issued by the Chamber of Commerce in that country

PROCUREMENT SERVİCE CONTRACTS Tender ( smaller or equal to 10.000 Euro) Tender (between 10.000-60.000 Euro)

PROCUREMENT SERVICE CONTRACTS Tender ( smaller or equal to 10.000 Euro) Recommended to proceed with three offer. Sign a contract with very clear references on which products you expect from the service. (template is in www.etcf.org.tr) Define at which time the service will be delivered and who will be the supervisor inside your organization accepting the quality of the services and authorizing the payments.

PROCUREMENT SUPPLY CONTRACTS Tender smaller than 10.000 Euro Proceed with three offer. Use a simple contract (template is in www.etcf.org.tr)

PROCUREMENT SUPPLY CONTRACTS TECHNICAL SPECIFICATIONS AND REQUIREMENTS Contract Name: _________________ Contract no.: _________________ Name of Item: _________________ Quantity: TECHNICAL DETAİLS General Description Technical Specifications 3. Accessories and Attachments 4. Tools or Other Required Items 5. Maintenance Requirements 6. Spare Parts Required 7. Manuals 8. Required Performance 9. Warranty Specifications

Procurement Plan by GBs Contract Number: Name of the tender 1 Dates for Tender 1 Name of the tender 2 Dates for Tender 2 Preparation of tender dossier Expected date for sending the tender dossier to the SU for checking Publication of forecast (if applicable) Publication of procurement notice Submission deadline Opening session and Evaluation Expected date for sending the Evaluation Report to the SU for checking Contract signature Expected delivery date Provisional acceptance date

PROCUREMENT PLAN BY GBs Submission of procurement plan: within 2 months of the project start (31.01.2009) 2 hard copy to SU

PROCUREMENT VISIBILITY Reports should contain the disclaimer: “The content of this publication is the sole responsibility of (name of author/contractor/contracting authority) and can in no way be taken to reflect the views of the EU” Bu belgenin içeriğinden sadece “Faydalanıcının Adı” sorumludur ve bu içerik herhangi bir şekilde Avrupa Birliği’nin görüş ve tutumunu yansıtmaz” Broşür örnek

PROCUREMENT DISPLAY PANNEL This project is funded by EU TITLE OF THE PROJECT The programme is implemented under the coordination of TOBB and EUROCHAMBRES EU Chambers Logo Turkish Chambers Logo This project is implemented by Turkish chambers (name) and EU Chambers names Contracting Authority

MONITORING AND SUPPORT ACTIVITIES

MONITORING FRAMEWORK In Procedures, Compliance with procurement rules Eligibility of costs Compliance with publicity and visibility rules Documentation and Archiving Bookkeeping and Accountancy Reporting obligations Contract Modifications Non-Compliances and Irregularities In Progress, Financial and Technical progress Performance indicators and Problems And Needs of the beneficiaries

MONITORING FRAMEWORK Monitoring visits will be conducted by SU using Monitoring tools: Monitoring visits, bi-monthly declaration reports and interim and final reports. Monitoring visits will be conducted by SU using checklists, monitoring reports etc. SU experts will review and give advice on draft notification letters, addendum requests, interim and final reports. Monitoring and/or Spot visits by CFCU  

MONITORING RESPONSİBİLİTİES OF GBs To make key staff of project be present. To provide up-to-date information To define performance indicators To define needs To clarify major dates in procurement To inform SU in case of unavailability To review and sign the visit report (regular monitoring visits) To archive all documents for 7 years

MONITORING The following information will be monitored by SU • Project Management • Adequacy of Documentation • Progress of Activities • Risks and Problems • Project Indicators • Procurement Matters and Records • Visibility of the Project

MONITORING MONİTORİNG TIME TABLE Timing Risk Assesment Visit 15 January-5 February 2nd Monitoring Visit After half of the project duration 3nd Monitoring Visit Before the end of the project duration

Thank you for your kind attention. Burcu Atılgan burcu@tobb. org Thank you for your kind attention.... Burcu Atılgan burcu@tobb.org.tr Tel:03124138233