1. Information on first level control, national eligibility rules and national co–financing provisions for European Territorial Cooperation programmes in Lithuania

2. Legal acts in Lithuania for European Territorial Cooperation programmes In accordance with regulation No 1018 of the Government of the Republic of Lithuania approved on 17 October 2006 (actual amendment on 10 September 2008 No 898) the following rules are being prepared and will be approved by the order of Minister of the Interior till the end of 2008 : 1.Rules on implementation of European Territorial Cooperation programmes in Lithuania 2.National eligibility Rules for European Territorial Cooperation programmes implemented in Lithuania 3.Public procurement Rules for Lithuanian companies, institutions and organizations implementing projects of European Territorial Cooperation programmes, that are not contracting authorities upon the Law on Public Procurement of the Republic of Lithuania 4.Rules on reimbursement of national co-financing from the State budget for Lithuanian partners implementing projects of European Territorial Cooperation programmes

3. I stage PROJECT PREPARATION STAGE. Lithuanian partners shall include projects’ audit costs (approximately 3-4% from partner’s project budget) in the projects’ budgets and these costs shall be covered from project expenditures. II stage The Ministry of the Interior of the Republic of Lithuania till the end of 2008 will prepare Requirements for audit, including audit report, confirmation of auditor, checklists, model of audit contract, etc. and will publish these documents on the websites: www.latlit.eu and www.esbendradarbiavimas.lt. All LT partners and auditors will be obliged to follow them. III stage LT partners will have to select external auditor using public procurement procedure following Requirements for audit. They will have to conclude the contract with selected audit company using model of contract provided by the Ministry of the Interior. The list of certificated auditors is approved and provided by the Lithuanian Chamber of Auditors (www.lar.lt, about 200 hundred audit companies). First level control in LT

4. National eligibility Rules for European Territorial Cooperation programmes implemented in Lithuania are being prepared and will be approved by the order of Minister of the Interior till the end of 2008. National eligibility Guidelines for European Territorial Cooperation programmes implemented in Lithuania are being prepared and will be published till the end of 2008. National Law and European Commission regulations regulating costs of projects implemented under European Territorial Cooperation programmes in Lithuania, general requirements for eligible costs, categories of eligible costs with examples of supporting documents to be submitted to the first level control and examples of costs’ calculations, categories of ineligible costs will be described in guidelines. Also will be submitted examples models of documents related to the implementation of the projects (worksheets, documents for using car, etc.). Comparing national, EU legislation or Programme rules always the stricter rules shall be applied. National eligibility rules in LT

5. 1) no more than 100 percent of national co-financing (up to 15 percent) for Lithuanian state budgetary institutions implementing projects of European Territorial Cooperation programmes (for example, these institutions could be – County Governors Administrations, etc.); 2) no more than 50 percent of national co-financing (up to 7.5 percent) for other Lithuanian companies, institutions and organizations implementing projects of European Territorial Cooperation programmes (for example, these institutions could be – public institutions, non-governmental institutions, etc.). The Government made a decision to reimburse national co-financing from the State budget: National co-financing from the State budget in LT

6. Rules on reimbursement of national co- financing from the State budget for Lithuanian partners implementing projects of European Territorial Cooperation programmes are being prepared by the Ministry of the Interior of the Republic of Lithuania and will be approved by the order of Minister of the Interior till the end of 2008. First step: Ministry of the Interior of the Republic of Lithuania LT partners following Rules on reimbursement of national co-financing from the State budget for Lithuanian partners implementing projects of European Territorial Cooperation programmes will submit applications to the Ministry of the Interior of the Republic of Lithuania to reimburse national co- financing costs from the State budget. Second step: LT partners Next steps: National co-financing from the State budget in LT

7. Territorial Cooperation Programmes Unit Regional Policy Department Ministry of the Interior of the Republic of Lithuania Address: Sventaragio str. 2 Vilnius Lithuania Phone: +370 5271 8966; +370 5271 8478 Fax: +370 5 271 8782 www.vrm.lt www.esbendradarbiavimas.lt Contacts for information in Lithuania