BENEFICIARY GUIDE TO THE CULTURAL EXCHANGE FUND

Transcription

1 BENEFICIARY GUIDE TO THE CULTURAL EXCHANGE FUND Warsaw, January 2008

2 Table of contents Definitions 4 1. Introduction General Information on Financial Mechanisms (EEA Financial Mechanism and Norwegian Financial Mechanism Cultural Exchange Fund - General Information Who and what types of projects benefit from CEF? Applicants Partners Thematic areas eligible for funding Types of project assistance Detailed rules for project funding under CEF Budget Eligible costs and periods of eligibility Own contribution Financial contribution Contribution in kind Revenue-generating projects State aid How to prepare application and where to apply for funding? Preparing funding application Supporting documentation to the funding application Submitting grant application Appraisal and selection of applications Formal appraisal Substantive appraisal Appeal procedure Project implementation and payment system Conclusion of funding agreement with the Beneficiary Disbursement method advance-payment system Report and disbursement request Value added tax Project financial management. 38 2

3 Bank account Accounting system Storage of accounting documents Irregularities in the project realization Unfinished projects Monitoring and audit of projects Reporting Monitoring visits Audit and financial contro Information and publicity Project information and publicity measures Information and publicity instruments 49 3

4 DEFINITIONS Applicant an entity which applies for a grant within the Cultural Exchange Fund; Application a document entitled: Application for the Cultural Exchange Fund under EEA Financial Mechanism and Norwegian Financial Mechanism; Beneficiary - an applicant whose project has been awarded a grant; CEF Cultural Exchange Fund; Donor States the Kingdom of Norway, the Republic of Iceland, the Principality of Liechtenstein; Financial Mechanisms Financial Mechanism for the European Economic Area and Norwegian Financial Mechanism; FMO Financial Mechanism Office in Brussels. Institution which is responsible for implementation of Finanicial Mechanisms at the Donor States site; Grant non -repayable financial assistance to cover some expenditure eligible for support from public funds from the Financial Mechanism for the European Economic Area (EEA) and the Norwegian Financial Mechanism, as well as national public funds; Guide means the Beneficiary Guide to the Cultural Exchange Fund; NFP National Focal Point. Ministry of Regional Development in Poland functions as NFP. That institution is responsible for managing activities which are being implemented under the Financial Mechanisms; Partner an entity from a Donor State, whose participation is obligatory to implement a project co-financed from the Cultural Exchange Fund; a Polish entity whose participation is not obligatory for the implementation of a project benefiting from the Cultural Exchange Fund; Operator institution responsible for the implementation and management of the Fund; makes decisions on grants for the implementation of projects. The Operator for the Cultural Exchange Fund is the Ministry of Culture and National Heritage; Project a coherent set of activities aimed at implementing a specific objective under the Cultural Exchange Fund; SC FWK - Steering Committee for the Selection of Projects for the Cultural Exchange Fund, wichis responsible for the final recommendation of projects for co-financing within the Cultural Exchange Fund. Committee is set up by the Minister of Culture and National Heritage; 4

5 TPA FWK Team for the Proposals Appraisal for Cultural Exchange Fund, which is responsible for formal and content-related appraisal of proposals within Cultural Exchange Fund. 5

6 Introduction 1.1. General Information on Financial Mechanisms (EEA Financial Mechanism and Norwegian Financial Mechanism) Based on two international agreements signed in October 2004 Poland benefits from a non-repayable foreign aid. The donors include three EFTA (European Free Trade Area) countries Norway, Iceland and Liechtenstein, which together with EU Member States form the European Economic Area. The assistance is granted under two financial instruments: EEA Financial Mechanism and Norwegian Financial Mechanism. The objective of both Mechanisms is to contribute to the reduction of economic and social disparities within the European Economic Area. The implementation of projects in Poland will also provide a means to closer bilateral cooperation between this country and the Donor States. The projects implemented under the EEA Financial Mechanism and the Norwegian Financial Mechanism must be consistent with the priorities of national and EU social and economic policies. The activities under Financial Mechanisms should also cover horizontal aspects to enhance the quality of projects, thus contributing to greater social and economic cohesion. The guidelines for horizontal aspects are included in the following documents: - Sustainable Development - Policy and Guide - Gender Equality - Policy and Guide - Good Governance and Anti-corruption - Policy and Guide These documents are available at Cultural Exchange Fund website - and on under the heading Documents/Guidelines. Refer to and to find more information on Financial Mechanisms. 6

7 1.2. Cultural Exchange Fund General Information Under Article 8 and Annex C of the Memorandum of Understanding on the implementation of the Norwegian Financial Mechanism (the NFM was established in accordance with the Agreement dated 14 th October 2003 between the Kingdom of Norway and the European Community on the Norwegian Financial Mechanism for ), entered into between the Kingdom of Norway and the Republic of Poland, as well as Article 8 and Annex C of the Memorandum of Understanding on the implementation of the EEA Financial Mechanism for , entered into between the Republic of Iceland, the Principality of Liechtenstein, the Kingdom of Norway and the Republic of Poland, the Parties have decided to create a Scholarship and Training Fund. Under the proposal of Donor States dated 23 rd November 2006, a separate component was established within the Scholarship and Training Fund a Cultural Exchange Fund that is devoted to the cooperation between Poland and Donor States in the field of culture, including music, acting and literature. The Operator for the Fund is the Ministry of Culture and National Heritage. Strategic objective The objective of the Cultural Exchange Fund is to enhance social and economic cohesion in the European Economic Area through activities in the field of cultural exchange between Poland and Donor States. Co-financing of common projects will provide a means of establishing fruitful and long-term cooperation between the countries. Specific objectives Specific objectives of the Cultural Exchange Fund include in particular: promoting cultural cooperation between Poland and Donor States in the area of stage arts, music, literature, folk culture and culture management, among other things, as well as projects related to documentation, promotion and protection of cultural heritage. 7

8 The Cultural Exchange Fund will help develop mutual contacts, including cultural exchange and sharing good practices in this field between Poland and Donor States: Iceland, Liechtenstein and Norway. Budget The total allocation within the Cultural Exchange Fund is 4,444,444 euros. Donor States will contribute 4,000,000 euros and Poland 444,444 euros (from the government budget). The Fund will be implemented over , while the first call for proposals will take place over the first quarter of 2008 and the last by Who and what types of projects benefit from CEF? 2.1. Applicants The entities eligible for applying for funding from the Cultural Exchange Fund (CEF) include: Legal persons: a) local-government authorities and their associations; b) public cultural institutions; c) public schools and academies of arts; d) state archives; e) NGOs active in the field of culture. Individuals: - artists, creators, culture animators, delegated by one of the entities mentioned under (a) (d) above. Example 1: A Community Centre in Town A, District B, Academy of Arts in Town C or Philharmonic D are all entities with legal personality, and they also belong to the group of Applicants eligible for applying for CEF funding. 8

9 Example 2: Both an independent Academy of Music in Town X and an independent Theatre Y have legal personality, but they do not fall within the scope of entities eligible for CEF funding, because they are non-public institutions. Example 3: Mr Jan Kowalski, a sculptor from Ustrzyki Gorne, a pair of culture animators from Mikolajki and an informal dancing group from Jelenia Gora are classified as Applicants eligible for applying for CEF funding. However, they have to be designated by one of the legal persons listed under 2.1. a) to d). In such event, although the Applicant is an individual, the application is executed by the legal representative of the entity which designated the Applicant, and the entity is responsible for financial and legal aspects of project implementation. IMPORTANT Only a Polish institution or a Polish national may apply Partners The Cultural Exchange Fund should contribute to fruitful and long-term cultural cooperation between Poland and Donor States, which means that each project implemented within the Fund must involve partnership between entities from Poland and Donor States. Any Partner participating in the implementation of a project should meet the following requirements: originates from Donor States (Iceland, Liechtenstein, Norway); its participation in the project is reasonable and accompanied by a letter of intent or a partner agreement; does not draw profits from the participation in the project; belongs to the group of applicants listed in paragraph 2.1. IMPORTANT Please remember that at least one Partner must originate from a Donor State. An 9

10 additional Polish Partner is possible, but not obligatory. The Polish partner should belong to the group of applicants listed in paragraph 2.1. The existence of a Partner must be always confirmed with a letter of intent, to be annexed to the grant application. There is a requirement that prior to any grant agreement with the Operator a partnership agreement must be annexed, defining the detailed scope of activities and Partner s responsibilities in the project Thematic areas eligible for funding The assistance from the Cultural Exchange Fund is aimed at supporting the activities having the potential to strengthen cultural cooperation between Poland and the Donor States in the following areas: music and stage arts; cultural heritage; plastic and visual arts; literature and archives. It is necessary to indicate one priority area the project falls into Types of project assistance The maximum project duration is 24 months, however, there is no minimum period of implementation. Projects submitted in the 2010 call may not last longer than one year. Within the above-mentioned themes, the following exemplary types of projects will be implemented: organization of artistic exhibitions, performances, concerts and other artistic events; participation of creators and artists in international artistic events; supporting cooperation and exchange of artists in, among other things, plastic arts, stage arts, music, photography, literature and others; 10

11 supporting cooperation of schools and academies of arts; cooperation of experts in the area of modern conservation techniques, documentation, protection and promotion of cultural heritage, combating illegal export and import of and trade in masterpieces of culture; cooperation between cultural institutions and archives. IMPORTANT Please remember that this listing is not complete. Other activities are also possible, provided that they meet the objectives of the Cultural Exchange Fund. Only soft / i.e. non-investment projects will be eligible for co-financing from the Fund. IMPORTANT Investment projects, including for example the purchase of musical instruments and equipment, are not eligible for the financing by the Fund. In justified cases the Operator may allow for the support of projects involving investment elements, such as a cost of materials used for artistic events, seminars, workshops, traineeships (with the exception of the purchase of musical instruments and equipment). 3. Detailed rules for project funding under CEF 3.1. Budget Individual projects submitted to the Fund Operator must meet the following requirements: the minimum amount of grant assistance for which the Applicant may apply is 10,000 euros; the maximum amount of grant assistance for which the Applicant may apply is 250,000 euros. Within the Fund, the grant rate for any Applicant must not exceed 90% of project costs. 11

12 It means that the Applicant is required to pay at least 10% of project eligible costs, as well as any non-eligible costs related to the project and any additional unexpected expenditure. Beneficiary s contribution may come from its own resources or those of his Partner(s). The operator may reduce the grant rate where required by valid provisions on State aid Eligible costs and periods of eligibility Costs will be considered eligible within the Cultural Exchange Fund, if they meet the following conditions: are necessary for the implementation of the activities provided for in the project; are included in the budget estimate annexed to the grant agreement; are reasonable, justified and necessary to perform the activity; comply with the principles of sound financial management, in particular with regard to costefficiency; are incurred during the project period defined in the grant agreement; have been actually incurred by the Beneficiary; recorded in the Beneficiary s books in accordance with any applicable accounting rules; complete, free from errors, and paid in accordance with the requirements of tax law. Furthermore, these costs should be documented with receipted invoices or accounting documents of equivalent probative value; should be identifiable and verifiable, and supported by original documents; be directly related to project implementation and paid up proportionally by project promoters; may not be prohibited under valid legal provisions; be implemented in accordance with the public-procurement legislation. 12

13 IMPORTANT The start date of project eligibility period is the date of the final decision of the Minister of the Culture and National Heritage on awarding a grant to the project based on recommendation of the Steering Committee for the Selection of Projects for the Cultural Exchange Found. Detailed expense-eligibility frameworks for individual projects are set out on a one-by-one basis in grant agreements between Beneficiary and the Operator, but the final date of eligibility must not go beyond 31 October Categories of eligible costs Below are presented and described the categories of costs qualified as eligible costs: General costs These are current costs paid by the Beneficiary in connection with implementing the project. General costs are eligible if they are related to the implementation of the project and allocated proportionally to the project using an appropriate, wellestablished and reasonable method. General costs include: costs of materials related to the organization of artistic events, seminars, workshops, traineeships (with the exception of purchasing musical instruments and equipment); servicing costs of artistic events, seminars, workshops, traineeships, etc. (including catering costs); overheads, e.g.: power supply, telephones; costs of stationery necessary for the implementation of the project; costs related to publicity and information (including e.g. the edition and printing of booklets, folders, posters, related to newspaper/radio/tv announcements, logos, organization of information and publicity conferences for the benefit of the CEF); 13

14 travel and accommodation costs, including in particular: - air fares in economy class; - train fares, class I or II; - bus fares; - costs related to the hire of a means of transport and costs of travelling by private car 1 ; - hotel accommodation costs; - domestic and foreign travel allowances in compliance with applicable provisions 2 ; facilities-renting costs (workshops, courses); costs of computer programmes necessary for the implementation of the project; and costs related to the management of Internet portals; other costs resulting from the implementation of the project and its specific features. If the Beneficiary incurs expenses due to the use of facilities (rent, power, gas, etc.) in which he/she also carries out other activities that are unrelated to the project, only such part of expenditure that is attributable to the project is eligible. The Beneficiary is required to document the calculation method applied. The calculation method should be stored together with other financial documentation of the project. Personnel costs Personnel costs are expenses for the remuneration of the individuals involved in the project (e.g. artists participating in artistic events). 1 According to the applicable rates specified in the Ordinance of the Minister of Infrastructure of 25 March 2002 on the requirements for the determination and method of reimbursement of costs of travelling for official purposes by car, motorcycle or moped not owned by the employer (Journal of Laws no. 27, 26/03/2002, as amended). 2 Travelling costs (travelling, accommodation and allowances) shall be calculated in accordance with: - in the case of entities financed from the state or local-government budget, as well as NGOs for domestic travel Ordinance of the Minister of Labour and Social Policy of 19 December 2002 on the amounts of and requirements for calculating payments to which an employee of a state-run or local-government entity is eligible in connection with travelling in the territory of Poland (Journal of Laws no. 236, item. 1990, as amended.); - in the case of entities financed from the state or local-government budget, as well as NGOs for travel abroad calculated in accordance with Ordinance of the Minister of the Economy and Labour of 14 September 2005 amending the ordinance on the amounts of and requirements for calculating payments to which an employee of a state-run or local-government entity is eligible in connection with travelling outside the territory of Poland (Journal of Laws of 28 September 2005). - for foreign participants in the project and Polish partners travelling abroad in compliance with the rates laid down by the European Commission on the EC s website. Any travelling tickets should be stored for the purpose of audit 14

15 The following costs are eligible for assistance from the Cultural Exchange Fund: for the engagement of individuals for the duration of the project based on a civil-law contract; for the employment of individuals based on a labour-law contract at the institution implementing the project. The employment may take the form of temporary delegation or a civil-law contract. The expenditure for the remuneration of personnel may be considered eligible if the following conditions are met: the delegation or employment period does not go beyond the period of eligibility of expenditure; the scope of tasks of the employee relates directly and exclusively to the implementation of the project. Eligible costs include gross payment (before social security contributions and taxes), provided that direct taxes and social security contributions are actually paid by the project promoter. Expertise and translation/interpreting services The expertise costs include i.e.: translation/interpretation costs; costs of publications; expert appraisal costs; payments to experts who conduct workshops, courses, seminars, etc.; technical and financial expertise, if necessary for the implementation of the project; costs of services related to project implementation; research expertise. 15

16 Equipment and installations purchase of new and second-hand equipment The application should explain how the purchased equipment will be used upon the completion of the project (item 4.1. of the application form). The purchased equipment, both new and second-hand, may not be sold during the project implementation and maintenance, unless the agreement with the Beneficiary provides otherwise. The purchase costs of second-hand equipment are eligible for co-financing under the following conditions: the seller of the equipment provides a declaration stating its origin and confirms that it has not been purchased with the aid of national and/or EEA Financial Mechanism and/or Norwegian Financial Mechanism grants 3 ; the price of the equipment does not exceed its market value and is less than the cost of a similar new equipment; it is necessary for the implementation of the project; has the technical characteristics adequate for the project, and comply with the applicable norms and standards. rental and leasing of equipment The Applicant should demonstrate that leasing is the least costly method to obtain equipment necessary for project implementation. If the cost of rental of the equipment may be lower, additional costs will be deducted from the eligible expenditure. Leasing may cover assistance for the lessor as well as for the leaseholder. The expenditure is eligible, if the lessor/leaseholder is the direct recipient of co-financing and the grant is spent for the reduction of leasing installments paid by the leaseholder and satisfies the following conditions: 3 If second-hand equipment is purchased with the aid of national, EEA Financial Mechanism or Norwegian Financial Mechanism grants, the purchase costs are not eligible. 16

17 the maximum amount eligible for co-financing does not exceed the market value of the equipment under lease; costs related to the leasing agreement (including lessor s margin, insurance payments, interest on rollover costs) are not eligible; if the leasing period goes beyond the end-date of eligibility, eligible may be only the leasing installments incurred by the end-date of project eligibility. Charges and other costs Costs eligible for co-financing within the Cultural Exchange Fund include: VAT and other taxes if they are not recoverable from the Beneficiary State; bank charges, if the opening of a separate account for implementing a project is required 4 ; fees for legal advice, notary fees, accountancy or audit costs, if they are directly linked to the project and necessary for its implementation. Non-eligible costs The following costs will not be regarded as eligible costs within the Cultural Exchange Fund: purchase of musical instruments and equipment; repayment of debts and interest on debts (including bad debts); repayment of bank loans; reserve funds (provisions for future losses an potential future debts); foreign-exchange losses; foreign-exchange commissions; costs declared by the Beneficiary, covered by other measures or working programmes receiving support from the EEA Financial Mechanism or Norwegian Financial Mechanisms; depreciation costs; debit interest and debit interest charges for financial transactions; 4 However, whereas the costs of opening and administering project s bank account are eligible, charges for cash transfers within the account are not eligible. 17

18 value added tax, other taxes if they can be recoverable from the Beneficiary State; charges and other levies, and costs of legal services which are not mentioned in the part called Charges and other costs; costs related to the filling in of the grant application; awards, bonuses, extra annual payments (so-called trzynastki), jubilee awards, etc.; costs related to any financial penalties, including e.g. default interest, fines, and expenses of litigation as well as the costs related to the performance of court orders; excessive expenditure. Contribution in kind Information concerning contribution in kind is outlined under of this guide Own contribution The Applicant is required to bring their own contribution to the project at a rate of at least 10% of project eligible costs. The own contribution may be either brought in cash only or comprise financial and in-kind components. Beneficiary s contribution may come from their own resources or those of their Partner(s) Cash contribution Should the own contribution include in-kind contribution, the cash part has to be high enough to ensure financial liquidity of the project Contribution in kind In-kind contribution may not constitute more than 80% of own contribution, and may not exceed 20% of total eligible project costs. 18

19 In-kind contribution" is taken to mean the provision of specific assets involving no cash expenditure. In-kind contribution may include: provision of facilities (office space, concert, performance and exhibition halls) as long as it is available for the project free of charge. The cost of the facility is calculated as the part of the cost related to its use, in proportion to the surface area of the facility used for the needs of the project or the number of people working for the project. The document to confirm the provision of the facilities is the Contract of lending for use; equipment and installations - as long as it belongs to the Beneficiary or their Partner(s), or was given to the Beneficiary or their Partner(s) as donation and will be made available for project purposes free of charge. The costs related to equipment and installations should be calculated at a rate proportional to the extent and time of use of any device for project purposes. The document to confirm the lending of equipment and/or installations is Beneficiary s declaration on in-kind resources accompanied by their valuation. Depreciation costs are not eligible; unpaid voluntary work carried out by volunteers. Volunteer s job within the project should be specified in detail, and his/her work adequately documented by a Record of Working Hours which should contain: - the object of in-kind contribution (i.e. the scope of volunteer s responsibilities); - the part of the contribution which is eligible (the number of working hours multiplied by a standard hourly or daily rate). 5 The scope of volunteer s job should be indicative of his/her participation in the work related to the preparation and implementation of the project for a certain period of time. The Record of Working Hour should be signed by the volunteer and his/her superior, and also contain the date of issue and official seal of the Beneficiary. The document should be prepared in such a way as to be recognized as an accounting document or a document of equivalent probative value. 5 If the volunteer performs the same tasks as members of permanent personnel, the cost of his/her work should correspond to the rates applicable for that personnel. If it is not the case, the rates must be linked to market rates. Standard market rates are established based on GUS statistical data and published by the GUS in the Yearbook of Labour Statistics. 19

20 3.4. Profit from the project The Cultural Exchange Fund allows for revenue generating projects, but only if the revenues pay for the operating costs. Such revenues may include revenues from sale, lease, services, registration, fees or equivalent receipts obtained from the project during the grant period State aid Applicants (for legal persons) and entities that designate Applicants (for natural person) are required to submit a declaration on state aid (information on de minimis aid received over the last three years, including a certificate on state aid obtained from the entities which have provided support for the Applicant or information about state aid other than de minimis aid). These declarations are also submitted by the Applicants who have not received such aid. Under Community law, European courts have given a broad meaning to the term economic operator, which includes any kind of entity carrying out business activity, irrespective of its legal status or sources of funding. The fact that these entities do not seek profit or are run by the State is irrelevant. If they carry out business activities, the awarded grant should be considered under the following four indicators of state aid: aid is granted by the State or from State funds; the business records better gains than in market conditions; the aid is selective (favours specific enterprise(s) or production of specific goods); can distort or distorts competition, as well as trade between EU member states. 20

21 4. How to prepare the application and apply for funding? 4.1. Preparing funding application Grant application form should be filled in through the Internet application programme on the Operator s website dedicated to the Cultural Exchange Fund grant Prior to completing the form, read thoroughly this guide, the application form user guide, and other documents available on CEF website. The application form should be completed in Polish. Please fill in only the indicated fields and comply with word count restrictions. The information you give should be expressed clearly and coherently. Description of any part of the project should be unequivocal and propose an efficient use of funds. Following on-line registration, the application form should be printed out. Two hardcopies of the application form must be signed and initialled by the persons authorized for the expression of institution s will (in accordance with a current certificate from the National Court Register or another relevant register). IMPORTANT Please remember that if Applicant is an individual, the application form will be signed by a person authorized to represent the entity which has designated the Applicant Supporting documentation to the funding application The application form should be accompanied by a complete set of supporting documentation. Please remember that the Fund Operator has prepared four obligatory forms to be annexed, i.e.: - Declaration of the Applicant or the designating entity on de minimis aid; - Letter of Intent; - Declaration of the Applicant or the designating entity on the possession of resources necessary for the required level of project co-financing; - Substantive and financial schedule. 21

22 Forms are available on the Fund s website: The rest of the annexes Applicant prepare by himself. Depending on Applicant s legal status, the list of annexes may slightly differ. Applicant legal person list of annexes If the Applicant is a legal person, the list of annexes is as follows: I. Legal documents: 1. a certificate from the National Court Register, another relevant register, or any other document certifying the legal status of the Applicant; 2. declaration of the Applicant on de minimis aid; 3. Letter of Intent; 4. Power of attorney (if applicable); 5. Articles of association (for non-governmental organisations); II. I. Financial documents: 1. Applicant's declaration on the possession of resources necessary for the required level of project co-financing; 2. A document certifying own contribution to the project; 3. Balance sheet and profit and loss account for the latest year only applies to grants greater than 25,000 euros; 4. A detailed budget; 5. Substantive and financial schedule. III. Other: 1. Summary description of the project in English (according to the description contained in the application form). Applicant natural person list of annexes I. Legal documents: 1. A certificate from the National Court Register, another relevant register, or other document certifying legal status of the entity which designates the Applicant; 2. Declaration of the designating entity on de minimis aid; 3. Letter of Intent; 22

23 4. Power of attorney (if applicable). II. I. Financial documents: 1. Declaration of the designating entity on the possession of resources necessary for the required level of project co-financing; 2. A document certifying own contribution to the project; 3. Balance sheet and profit and loss account for the recent year only applies to grants greater than 25,000 euros; 4. A detailed budget; 5. Substantive and financial schedule. III. Other: 1. Summary description of the project in English (according to the description contained in the application form). Comments on the annexes Annex I.2., i.e. Declaration of the Applicant or the designating entity on de minimis aid is submitted by all Applicants irrespective of whether or not the institution has ever received any state aid. Annex I.3., i.e. the Letter of Intent is a declaration of partnership cooperation. The Letter should be always signed by legal persons, i.e. where the Applicant or Partner(s) are natural persons, the letter must be signed by the entity which has designated the Applicant and by the Partner(s). Annex II.4., i.e. a detailed budget should contain detailed information concerning the costs incurred. Please remember to present both eligible and non-eligible costs. A detailed budget should present the costs of the project by categories, i.e.: general costs, personnel costs, expertise and translation/interpretation, equipment and installations, equipment rental and leasing, charges and other costs. 23

24 Example of a detailed project budget: No. Cost and method of calculation General costs 1. Travel of an individual to implement the project Jan Nowak (one person) Krakow Oslo, during which he will assess the progress of preparations to the concert. Documentation 1 01/09/ /09/2008 Airfare for one person: PLN 1000 Total costs (PLN) Costs (PLN) by origin of funding CEF own contribu tion 2,100 2,100 other sources Documentation 2 20/09/ /09/2008 Airfare for one person: PLN Travelling of a group of artists between Krakow and Oslo Jan Kowalski director (1 person) Choir Il Coro (20 persons) A total of 21 persons 16,800 16,800 15/11/ /11/2008 Airfare per person: PLN 800 x Tailoring of dresses 4. Stage: rental, assembly and disassembly 1,800 1,800 10,000 10,000 Annexes II.5., i.e. Substantive and financial schedule is a document which presents the costs incurred and the rates of grant and own contribution on a quarterly basis. Whereas the Detailed Budget should contain the details of expenditure, in the Substantive and financial schedule the costs should be aggregated (e.g. promotion total). 24

25 4.3. Submitting grant application Grant applications are submitted in two stages: 1. The Applicant registers online on the CEF website. Electronic registration will be possible during the time between the start-date and end-date of the call for applications. The dates for the submission of documents will be indicated in the call for applications and on the Cultural Exchange Fund s website 2. The Applicant submits the following to the Operator: - Two sets of documents (Application form + supporting documentation), in hard copy; - Two CDs with the set of documents. The timetable for document submission will be announced in the call for proposals. The application form, accompanied by annexes, should be sent by mail, messenger, or personally. The date for application submission is the date of receipt at the Ministry of Culture and National Heritage (it is not the date of stamp on the mail package). The following documents are required: - Two original, signed and initialled, copies of the application form. Following on-line registration, the Applicant should print out the application form. The person(s) authorized to sign the application place their signature(s) and seal on the last page of the application form, and initial(s) every page. - Two sets of annexes (it is required to supply one set of documents, the other may be a certified copy authenticated by an authorized person). The person(s) authorized to sign the application place their signature(s) and seal on all annexes, and initial(s) every page of every annex. 25

26 Fund Operator s address for correspondence: Ministry of Culture and National Heritage Department of Cultural Strategy and European Funds 15/17 Krakowskie Przedmieście St Warsaw IMPORTANT Before you submit the documentation to the Operator, please make sure that all annexed are enclosed, that all documents are duly signed and sealed, and that each page is initialled. 5. Appraisal and the selection of applications Every application entered into the Fund database is assigned an identification number. The Applicant receives notice of the granted identification number electronically the number makes it easier for the Applicant to obtain any information on their application. Applications are evaluated both formally as substantively. Applications are evaluated by experts at the Ministry of Culture and National Heritage, and depending on the special features of the project and where necessary by external experts. Responsible for the appraisal procedure is the Department of Cultural Strategy and European Funds Formal appraisal Within 10 working days from the final day of the call for proposal the Operator conducts formal appraisal of the applications and in this way concludes the selection of applications based on formal criteria. 26

27 The formal criteria include among other things: enclosing all necessary annexes to the application; proper design of financial engineering; consistence of the amount applied for with the Fund s guidelines; correctly described period of expenditure eligibility; compliance of eligible costs with the guidelines; meeting by the Beneficiary of the requirements described in the call for applications. If deficiencies and/or mistakes are found, the Operator requests the Beneficiary to remove the deficiencies or make corrections within 48 hours. IMPORTANT If entire annexes to the application are missing, it will not be possible to furnish them later. Lack of signature(s) of Applicant s authorized representatives on the grant application will result in the rejection of the application. The signatures on the application form must be in compliance with the representation rules specified by the National Court Register, or in a relevant document to confirm the method of Applicant representation. The results of the formal appraisal are communicated to the Applicant in writing by the Operator. Applications who fail to meet the formal criteria described in the call for applications will be returned to the Applicant. One original copy will remain at the Ministry of Culture and National Heritage. Formal grounds for refusing an application may include: submitting the application past the submission period; submitting the application on a wrong format; submitting an inadequate number of copies; incompleteness of the application (missing annexes); failure to demonstrate cooperation with a partner from Donor States; 27

28 incorrect financial engineering; inadequate amount of co-financing not in compliance with the assumptions of the Fund; incorrect description of the time period of project eligibility; incorrect classification of costs into eligible and non-eligible. An application which fails to meet formal criteria is returned to the Beneficiary within 10 working days from the date of completion of the formal appraisal, stating the grounds for the rejection. IMPORTANT The Applicant may appeal to the Fund Operator from the result of formal appraisal of the application. The appeal procedure in presented under 5.3. of this guide Substantive appraisal Within 25 working days after the completion of formal appraisal, substantive appraisal of the application is carried out based on substantive requirements. The substantive criteria include in particular: artistic value of the project (if applicable); prominence and outstanding nature of the project in the international and/or regional and/or local arena; prominence and outstanding nature of the project for the cooperation with Donor States; number of partners and institutions cooperating with the Applicant during the implementation of the project; participation in the project of specialists in a certain field; coherence of the information included in the application, cost estimates and substantive-financial schedule; reasonableness of expenditure; reasonableness of the schedule. 28

29 Substantive appraisal of the applications will be conducted by the Team for the Proposals Appraisal for the Cultural Exchange Fund. Within 10 working days upon the completion of the substantive appraisal, the Operator is required to create a ranking list and a list of recommended applications. The body responsible for the final recommendation of projects for co-financing within the Fund is the Steering Committee for the Selection of Projects for the Cultural Exchange Fund designated by the Minister of Culture and National Heritage. The Steering Committee consists of ministerial representatives and external experts from the CEF four thematic areas. Observers from the National Focal Point and Donor States will be also invited to participate in the meetings of the Steering Committee. The final decision related to the selection of project is made by the Minister of Culture and National Heritage on recommendation of the Steering Committee for the Selection of Projects for the Cultural Exchange Fund. IMPORTANT The decision of the Minister of Culture and National Heritage is unappealable. The Steering Committee for the Selection of Projects for the Cultural Exchange Fund should meet within 15 working days following the completion of the substantive appraisal. Information on the results of the competition will be communicated to the Applicants within 15 working days following the Committee s meeting: both individually (in hard copy) and as a website announcement. The list of approved applications is concurrently announced on the Fund Operator s website and on the National Focal Point s website. IMPORTANT All periods mentioned above may change, if a large number of applications is submitted. 29

30 The diagram of the application process within the Cultural Exchange Fund CEF Operator call for applications, acceptance and registration of applications CEF Operator Formal appraisal time limit: 10 working days AAT CEF Substantive appraisal time limit: 25 working days CEF Operator Preparation of ranking list and recommended projects list time limit: 10 working days CEF SC Meeting of the Steering Committee for the Selection of CEF Projects (decision of the Minister of Culture and National Heritage) time limit: 15 working days CEF Operator Steering Committee notifies the Beneficiary and NFP of selection of CEF Projects time limit: 15 working days Conclusion of Financial Agreement between Operator and Beneficiary 30

31 5.3. Appeal procedure The Applicant may recourse to appeal procedure against grant refusal only with regard to the formal part of application appraisal. The Applicant may appeal to the Fund Operator against formal appraisal within 10 working days after receiving information from the Fund Operator that their application has been rejected. The information about the results of the appraisal is communicated both by fax and in writing. Once the 10 day appeal period has finished, appeals are not considered. Applicant cannot appeal against the decision with regard to substantive matters. An appeal against the decision of the Steering Committee for the Selection of Projects for the Cultural Exchange Fund is not envisaged. The appeal procedure is made in one instance. Appeals are filed with the Ministry of Culture and National Heritage, the decision of which is final and binding. A project that has received a positive opinion in the appeal procedure is referred back to substantive appraisal. The Operator should answer to the submitted appeal within 10 working days from the day the appeal was submitted. 31

32 Appeal procedure diagram Cultural Exchange Fund Operator Ministry of Culture and National Heritage: information for applicant about the rejection of the project Applicant Appeal (10 working days) Cultural Exchange Fund Operator Ministry of Culture and National Heritage: Consideration of the appeal (10 working days) positive negative Transfer for substantive appraisal Return of application 32

33 6. Project implementation and payment system 6.1. Conclusion of grant agreement with the Beneficiary Upon the completion of application appraisal, if the Steering Committee for the Selection of Projects for the Cultural Exchange Fund awards a grant to a project, the Beneficiary signs a grant agreement with the Fund Operator. All projects which receive grants from the Cultural Exchange Fund must be implemented in compliance with the provisions of the grant agreement entered into between the Operator and the Beneficiary as well as the substantive and financial schedule which is appended to the agreement. The Fund Operator notifies the Beneficiary about the date and details concerning the conclusion of the agreement. A model funding agreements will be available at Operator s website related to the Cultural Exchange Fund. Obligatory annex to the above-mentioned agreement will be the substantive and financial schedule (according to a special form), a partnership agreement and valid certificates from the Inland Revenue and the Social Security Institution stating no default towards the Treasury Disbursement method advance-payment system The assistance will be disbursed in advance payments. The initial and the consecutive payments will be disbursed as advance payments, except for the final payment, which will take form of reimbursement actually incurred by the Beneficiary. Every tranche will be settled in proportion to the awarded grant, which means that at any point the Beneficiary must maintain a stable proportion of own contribution to total eligible costs (for any payment, the Beneficiary must contribute at least 10% of total eligible project costs). Payments for the Beneficiary will be made by bank transfer on the account specified in the financial agreement based on payment application approved by the Operator 33

34 and forwarded along with the settlement report concerning the previous tranche. Payment application should be submitted up to 10 working days from the end of the period covered by it. Payment applications may be submitted along with quarterly reports. The last payment application, accompanied by the final report, is transferred by the Beneficiary to the Operator up to seven calendar days from the end-date of project implementation. Example: Project duration is eight months. Start date of project implementation: 20 January 2009 End date of project implementation: 25 September 2009 Payments to the Beneficiary Initial tranche: within 20 calendar days from the date of agreement; The deadlines for the subsequent tranches will be specified in the financial agreement. In this case for instance: second tranche: after three months third tranche: after six months reimbursement: after eight months Beneficiary starts implementing the project on 20 January 2009; in the first month of project implementation they receive the first tranche of the grant, provided that the agreement with the Beneficiary has been executed not later than in early January. After three months from the start of project implementation Beneficiary submits payment application to Operator (second tranche) along with the settlement of the previous tranche. After six months from the start of project implementation Beneficiary submits payment application (third tranche) along with the settlement of the second tranche. After project implementation has finished, Beneficiary submits a final report accompanied by the settlement for the third tranche and a reimbursement application. The project ends on 25 September 2009, thus the date up to which 34

35 project should be settled is in this case 01 October 2009 (it is the seventh calendar day after the end of project implementation). First payment The first payment includes an advance of 25% to 50% of the total granted cofinancing, however, it should not exceed 50,000 euros. Longer projects (one year up to two years) are eligible for an advance payment of up to 25%, while shorter ones (up to one year) of up to 50%. The Operator disburses the first advance payment to Beneficiary up to 20 calendar days from the date of the financial agreement, provided that Beneficiary has met all the agreement provisions necessary for the first disbursement. Subsequent payments The subsequent payments for the Beneficiary of the Cultural Exchange Found are made up to 80% of awarded grant. Payment applications are evaluated up to 10 calendar days from the date of payment application. The subsequent tranches will be transferred to the Beneficiary s account within 10 calendar days from the date of approval of the above-mentioned documentation. The amount of the subsequent tranches depends on the extent to which the awarded advance payment was spent, and amount to: the difference between the amount of the next payment and the amount spent inadequately, which has been proved by the settlement of the previous tranche, the amount of the subsequent advance payment plus the non-spent amount of the previous one, if Beneficiary applies for its transfer to the next reporting period. The subsequent payments are made based on payment applications submitted by Beneficiary along with settlement reports. 35

36 Final payment The final payment is the remaining amount for which Beneficiary is eligible and constitutes 20% of the project eligible costs less all costs considered non-eligible and net interest generated on Beneficiary s separate CEF account. The final payment is made once the Operator has verified and approved Beneficiary s final report and Beneficiary submitted his payment application. The final payment (reimbursement) is transferred to Beneficiary s account up to 20 working days from the date of the payment-application approval along with the final report on project implementation. The period may be extended as necessary for supplementing or correcting the application. Example: Amount of grant: PLN 100,000 Project duration: nine months Payments to the Beneficiary: initial tranche: PLN 25,000 second tranche: PLN 40,000 third tranche: PLN 15,000 reimbursement: PLN 20,000 Initial tranche: Beneficiary receives PLN 100,000 of grant. The amount of the advance payment is fixed in the application form at 25%. If the application is approved for co-financing, the Operator in line with the agreement concluded with Beneficiary makes a transfer of PLN 25,000 to Beneficiary s account. Second tranche: Beneficiary sends payment application to the Operator for the amount of PLN 40,000 (second tranche) along with the settlement of the previouslyawarded advance payment of PLN 25,000 (from the initial tranche). The Operator verifies the payment application and if it is approved, the amount applied for is transferred to Beneficiary s account. Third tranche: Beneficiary submits another payment application to the Operator for the amount of PLN 15,000 (third tranche) along with the settlement of the expenditure of PLN 40,000 from the previous period (from second tranche). If Beneficiary has not spent the whole amount over the period, but only, say, PLN 36