1. European Instrument for Democracy & Human Rights Country Based Support Scheme - PNG Submission deadline 11/04/2016 at 08:00 (Brussels date and time) 16:00 PNG time Information Session 2 March 2016 1

2. Grant : principles Grant is a financial donation – non-commercial payment (No grant may give rise to profits) The Contracting Authority (The EU) signs a Grant contract with beneficiary(ies) 2

3. Grant - Actors The Lead Applicant -> beneficiary identified = the coordinator - main interlocutor - (act on behalf of the co-beneficiary(ies) if any) The co-applicant(s) (if any) -> the other co-beneficiary(ies) The affiliated entity(ies) (if any) Others : associates, contractors and third parties benefitting from financial support 3

4. Grant beneficiaries Are jointly responsible for the design and implementation of the action Shall implement the action with care, efficiency, transparency and diligence Shall respect the sound financial management Own the results of the action Co-finance action (no full financing under this Call) 4

5. 5 Role of the Coordinator as the Lead Applicant 1.Signs the Grant Contract 2.Receives a mandate from the other beneficiaries (application form) 3.Endorses the full financial responsibility for the action 4.Draws up the reports, financial statements, any documents required under the contract 5.Ensures the internal coordination including for audits or evaluations required under the contract 6.Contact point between the beneficiaries and the Contracting Authority 7.Establishes the payment requests and is the sole recipient of payments from the Contracting authority 8.The Coordinator cannot delegate its tasks to the other Beneficiaries

6. Eligibility : Lead Applicant (1) In order to be eligible for a Grant, the Lead Applicant must:  be a legal person and  be non-profit-making and  be a specific type of organisation such as: non governmental organisations, public sector operator, local authority, international (inter-governmental) organisation and  If, with PNG nationality, can act individually (or with co-applicants) OR  If, without PNG nationality must act with at least one co-applicant with PNG nationality i.e., officially registered in accordance with the legislation in force in the country concerned 6

7. 7 Eligibility of Applicants - Definitions  “Local Authorities (LAs)” refer to public institutions with legal personality, component of the State structure, below the level of central government and accountable to citizens. Local Authorities are usually composed of a deliberative or policy-making body (council or assembly) and an executive body (the Mayor or other executive officer), directly or indirectly elected or selected at local level. The term encompasses different tiers of government, e.g. villages, municipalities, districts, counties, provinces, regions, etc.  “Public sector operator ” includes public institutions established by law: public sector non-profit agencies, institutions and organisations at local, national and regional, national and regional parliamentary bodies, involved to achieve the objectives of this EIDHR Call. These must be registered as a Legal entity and able to assume full contractual responsibility for the actions undertaken. Eligibility: Lead Applicant (2)

8. Eligibility : Co-applicant (1) MUST satisfy the same eligibility criteria as the Lead Applicant participate in design and the implementing of the action costs are eligible in the same way as for the Lead Applicant Co-applicant(s) must sign the Mandate (Annex A.2.- section 5.2 *) If awarded the Grant contract, the co-applicant(s) (if any) will become beneficiary(ies) in the Action (together with the Coordinator) 8

9. Eligibility: Affiliated entity(ies)(1) The Lead Applicant and its co-applicant(s) may act with affiliated entity(ies.) Only entities having a structural link with the applicants, in particular a legal or capital link may be considered as affiliated entities. This structural link encompasses mainly two notions: (i) Control on the annual financial statements, consolidated financial statements and related reports : i.e., : daughter companies or parent companies or sister companies Evidence : consolidated accounts (ii) Membership: i.e., the beneficiary is legally defined as a e.g. network, federation, association in which the proposed affiliated entities also participate OR i.e. the beneficiary participates in the same entity (e.g. network, federation, association) as the proposed affiliated entities. Evidence : Statutes or equivalent act establishing the entity (network, federation etc.) 9

10. Eligibility : Affiliated entity(ies) (2) MUST satisfy the same eligibility criteria as the Lead Applicant and the co-applicant(s) participate in design and the implementing of the action costs are eligible in the same way as for the Lead Applicant Affiliated entity(ies) must sign the affiliated entity(ies) statement (Annex A.2.-section 5.3*) If awarded the Grant Contract, affiliated entity(ies) (if any) will NOT become beneficiary(ies) of the Action and signatory(ies) of the contract 10

11. Eligibility: Other actors Are not Applicants, nor affiliated entity, no mandate, statement to sign Associates:  Do not have to meet the eligibility criteria  Play a real role in the action  Do not receive funding from the grant (with the exception of per diem or travel costs)  Must be mentioned in (Annex A.2 – Section 4) Contractors:  The beneficiaries and their affiliated entities are permitted to award contracts. Associates or affiliated entity(ies) cannot be also contractors in the project. Contractors are subject to the procurement rules set out in Annex IV to the standard Grant Contract. 11

12. Number of applications and grants per Applicant The Lead Applicant may not submit more than one application under this call for proposals. The Lead Applicant may not be awarded more than one Grant under this call for proposals. The Lead Applicant may not be a co-applicant or an affiliated entity in another application at the same time. A co-applicant/affiliated entity may not submit more than one application under this call for proposals. A co-applicant/affiliated entity may not be awarded more than one Grant under this call for proposals. 12

13. 13 Financial Allocation (1) This call is published with a Suspension Clause for Budget allocation The overall indicative amount available under this call is 900 000 EUR The Contracting Authority reserves the right not to award all available funds, which results from the pooling of annual EIDHR allocated budgets for PNG, for years 2015, 2016 and 2017.

14. 14 Financial Allocation (2) Size of grants Minimum amount: EUR 250 000 Maximum amount: EUR 295 000

15. Maximum % EU contribution Minimum percentage: 50% of the total eligible costs of the action. Maximum percentage: 95% of the total eligible costs of the action (see also Section 2.1.5). The balance (i.e., the difference between the total cost of the action and the amount requested from the Contracting Authority) must be financed from sources other than the European Union Budget or the European Development Fund. 15

16. Eligibility of costs (1/7) These costs must: be incurred during the implementation period of the action (established in the Special Conditions) Exception : i.e., Final expenditure verification report be indicated in the estimated overall budget for the Action (Annex III- Budget breakdown) be necessary to carry out the Action ( Annex I - Description of the Action) be identifiable and verifiable, in particular be recorded in the Beneficiary(ies)’s accounting records ( Annex II - General Conditions and Annex VII - Expenditure verification ) comply with the requirements of applicable tax and social legislation be reasonable, justified and comply with the requirements of sound financial management, in particular regarding economy and efficiency 16

17. Eligible costs (2/7) Examples of eligible direct costs are: costs of staff assigned to the Action (gross sal. + Soc. Sec. charges…) travel and subsistence costs for staff and other persons taking part in the Action costs of local offices, and consumables Implementation contracts awarded by the Beneficiary(ies) for the purpose of the action (Annex IV) e.g.: services, studies, supplies, equipment, evaluation, audit, translation, visibility actions Indirect taxes (including GST) paid and not recoverable by the Beneficiary(ies) (provided that they can show they cannot reclaim them) (Annex J) Etc…. See Article 14 of the General Conditions (Annex G) 17

18. Lump sums Flat-rates There are 4 forms of costs (3/7) Unit costs Real costs incurred 3 types of simplified cost option 18

19. Eligible costs (4/7) Simplified cost options may take the form of: -unit costs: costs clearly identified in advance as amount per unit Example: unit costs for small local transportation or other expenses in rural areas (often in expense categories with small value items and/or with poor documentation) -lump sums: covering in global terms all or certain specific categories of costs identified in advance Example: global cost for the organisation of an opening event, global cost for the production of visibility items flat-rate financing: costs clearly identified in advance as percentage fixed ex-ante Example: local office costs and related expenses (maintenance, security, a shared car etc.) charged as a percentage of staff costs 19

20. Eligible costs (5/7) Simplified costs option: Limited to max 60 000 EUR per beneficiary (co/applicant) Proposal by the beneficiary BUT approval by the Contracting Authority Method to determine the simplified costs based on estimates using objective data such as -> statistical data -> certified or auditable historical data of the applicants explanations on the calculation method supporting the simplified costs is to be detailed in Annex III – Budget/Justification sheet Use as reference the Annex K 20

21. Eligible costs (6/7) A contingency reserve not exceeding 5% of the estimated direct eligible costs may be included in the Budget of the Action. It can only be used with the prior written authorisation of the Contracting Authority. 21

22. Eligible costs (7/7) Eligible indirect costs: are those which may not be identified as specific costs directly linked to the implementation of the action flat rate fixed at maximum 7% of the estimated total eligible direct costs. i.e.,: back office, support from headquarters, staff training… direct costs cannot include indirect costs. The applicant is asked to provide justification on which expenditures are expected to be charged under the indirect costs before the signature of the contract. Once the flat-rate is fixed in the Special Conditions of the Grant Contract, no supporting documents are requested. 22

23. Ineligible costs The following costs are not eligible: debts and debt service charges (interest); provisions for losses or potential future liabilities; costs declared by the beneficiary(ies) and financed by another action or work programme receiving a European Union (including through EDF) Grant; purchases of land or buildings, except where necessary for the direct implementation of the action, in which case ownership must be transferred, in accordance with Article 7.5 of the General Conditions of the standard Grant contract, at the latest at the end of the action; currency exchange losses; credit to third parties; In Kind contributions; salary costs of the personnel of national administrations. 23

24. Contributions in Kind Contributions in kind means the provision of goods or services to the Grant beneficiary free of charge by a third party: The Contracting Authority does not accept contributions in-kind as co-financing. Since contributions in kind do not involve any expenditure for the Grant beneficiary, they are not considered as eligible cost. Human resources affected to the action are not contributions in kind. The beneficiary has to declare the co-financing actually provided in the final report. If the description of the Action includes contributions in kind, these have to be made. 24

25. Budget breakdown, justification and source of funding The budget to be filled up is an Excel document with three worksheets: 1. Budget for the Action (only one budget including all costs)  Heading 1 – Human Resources, Per Diems (Staff costs)  Heading 2 – Travel  Heading 3 – Equipment and supplies  Heading 4 – Local Office  Heading 5 – Other costs, services ( if experts are hired under service contract their costs have to be budgeted under this heading, if staff is under employment contracts their costs have to be budgeted under Heading 1 )  Heading 6 – Other  Heading 8 – Indirect costs (max 7%)  Heading 10 – Provision for contingency reserve (max 5%) 2. Justification of the budget for the Action 3. Expected sources of funding & summary of estimated costs 25

26. THANK YOU ! 26