1. Changes in the project. Joint Technical Secretariat Seminar for Beneficiaries 20-21 February 2012 Narva, Estonia

2. Main principles Changes can take place only when project implementation has already started; Changes should not question project objectives and results; Changes may not be implemented retroactively; Maximum amount of grant may not be increased; Extension of project implementation period is limited to expiry of financial decision and end of the Programme on 31 December 2014; Any change should be discussed in the partnership and communicated to all partners by the Beneficiary. Exceptional nature of changes! (Section 10 of Practical Guidelines) 2

3. Involved parties 3 ActorRole Beneficiary -Takes responsibility for changes; -Represents Project Partners; -Drafts Notification/Request for Addendum; -Communicates with the Programme. Joint Technical Secretariat -Provides consultation and technical support to the project; -Receives and reviews documents provided; -Provides support to the JMA. Joint Managing Authority (Contracting Authority) - Reviews requests for changes -Makes decision to approve/disapprove changes Joint Monitoring Committee -Gets involved in decision making in case of serious changes (contentious cases) proposed by the project

4. Types of changes Minor changes Minor changes (14 days) “…may be implemented without receiving a prior agreement of the Contracting Authority, but the Contracting Authority should be notified about them” Major modifications Major modifications (30 days) “…require a formal Addendum to the contract to be signed by the Contracting Authority and the Beneficiary before their implementation” (Section 10 of Practical Guidelines, p.40) 4

5. What are minor changes?  Minor changes in project activities with/without budgetary implications;  Reallocations within the Budget Heading, including cancellation/introduction of the budget line;  Transfer between the Budget Headings within the variation not exceeding 15% in relation to each Budget Heading considered;  Contact details of Beneficiary or Project Partners;  Change of the Beneficiary’s bank account;  Change of project staff and key experts;  Changes in quantity of equipment, prices per item;  Change of model/brand of equipment. 5

6. Minor changes. How to? 6 Official Notification + supporting documents to Contracting Authority (Annex 3, Practical Guidelines) Official Notification + supporting documents to Contracting Authority (Annex 3, Practical Guidelines) Beneficiary Project Manager CONSULTATION YES/NO on desired changes prior to submission of official request JTS -checks all documents -informs Contracting Authority Contracting Authority -approves/disapproves changes -Provides answer to Beneficiary Informs Beneficiary on approval of minor change(s) by letter via JTS Informs Beneficiary on disapproval of minor change(s) by letter via JTS

7. What are major modifications? 7  Extension/early closing of the Grant Contract;  Significant changes in activities affecting the basic purpose of the project, but not questioning the grant award decision and not conflicting the equal treatment of the applicants;  Transfer between the Budget Headings, which exceeds 15% in relation to each Budget Heading considered;  Addition/deletion of the Budget Heading to/from the project budget;  Use of contingency reserve;  Change of the Auditor by the Beneficiary or the Project Partners;  Change of the partnership (drop out, addition, replacement)  Changes in name of Beneficiary/Project Partner or in its legal status.

8. Major modifications. How to? 8 Beneficiary Project Manager CONSULTATIONCONSULTATION on desired changes prior to submission of official request YES/NO Request for Addendum (2+1 copies post + e-mail English) Request for Addendum (2+1 copies post + e-mail English) JTS JTS checks: -description/details; -justification; -supporting docs; -calculations. May ask additional clarifications Sends out report to Contracting Authority Contracting Authority Contracting Authority: -reviews Request for Addendum, supporting documents and JTS report; -makes decision; -Prepares and signs Addendum to GC; -calculations. May ask additional clarifications In certain cases may decide to engage JMC in decision making Addendum to GC Addendum to GC (3 copies) Notification Letter

9. Budget HeadingOriginal budget Budget of minor changes / Addendum 1 Budget of minor changes / Addendum 2 Budget of the last changes Human resources Travel costs Equipment and supplies Direct local office costs Other costs and external services Infrastructure Total eligible costs 9 Changing budget: minor changes and major modifications Consolidated table to keep records and to submit together with request for changes throughout the project implementation; For showing calculations use templates in Annex 3 or Annex 4 to Practical Guidelines

10. To respect deadlines informing the Programme about the minor changes and major modifications (Addendum). Section 10 of Practical Guidelines p.41 and p.45 ; that the Contracting Authority may disapprove minor changes in the project; to submit additional documents required for minor changes and/or major modifications, bid., p.42 and 44- 45 ; Consult with the JTS prior to implementation of any changes; Inform the JTS and the Contracting Authority about any changes in the project using templates. 10 Remember…

11. Joint Technical Secretariat Questions welcomed! Thank you! 11