CALL FOR PROPOSALS EACEA 41/2015

CALL FOR PROPOSALS EACEA 41/2015 Erasmus+ Programme KA3 Support for Policy Reform Support for small and medium sized enterprises engaging in apprenticeships APPLICANTS' GUIDELINES 1

Table of Contents PART 1 - STRUCTURE OF THE CALL... 4 1 INTRODUCTION... 4 2 OBJECTIVE THEME... 4 2.1 Objective... 4 2.2 Theme... 5 2.2.1 Background... 5 2.2.2 Types of activities... 6 3 TIMETABLE... 8 4 BUDGET AVAILABLE... 9 5 ADMISSIBILITY REQUIREMENTS... 9 6 ELIGIBILITY CRITERIA... 9 6.1 Eligible Applicants... 10 6.2 Eligible participating organisations (partners)... 10 6.3 Eligible Countries... 11 6.4 Eligible Activities... 11 6.5 Eligibility Period... 11 7 EXCLUSION CRITERIA... 12 7.1 Exclusion from participation... 12 7.2 Exclusion from award... 12 7.3. Supporting documents... 13 8 SELECTION CRITERIA... 13 8.1. Financial capacity... 13 8.2 Operational capacity... 14 9 AWARD CRITERIA ASSESSMENT GRIDS AND SCORING... 14 10 LEGAL COMMITMENTS... 15 11 FINANCIAL PROVISIONS... 16 11.1 General principles... 16 11.1.1 Non-cumulative award... 16 11.1.2 Non-retroactivity... 16 11.1.3 Co-financing... 16 2

11.1.4 Balanced budget... 16 11.1.5 Implementation contracts/subcontracting... 17 11.2 Funding Forms... 17 11.3. Payment arrangements... 22 11.4. Pre-financing guarantee... 22 12 PUBLICITY... 23 12.2. By the Agency and/or the Commission... 23 13 DATA PROTECTION... 23 14 PUBLICATION... 24 15 APPLICABLE RULES... 25 16 CONTACT... 25 PART 2... 26 INSTRUCTIONS TO COMPLETE THE ONLINE GRANT APPLICATION FORM (EFORM)... 26 1 REGISTRATION... 26 1.1 General provisions... 26 1.2 Registration of the organisation... 26 1.3 Creating and Filling in the Eform... 27 1.3.1 Application eform Cover Page... 27 1.3.2 List of Partner Organisations... 28 1.3.3 Part A - Identification of the applicant organisation... 28 1.3.4 Part B - Organisation and activities... 29 1.3.5 Part C Dates and budget... 29 1.3.6 eform attachments... 29 PART 3... 34 SUBMISSION OF THE ONLINE GRANT APPLICATION FORM (EFORM) AND ADDITIONAL REQUIRED ANNEXES... 34 3

PART 1 - STRUCTURE OF THE CALL 1 INTRODUCTION This call for proposals is based on the Regulation (EU) 1288 /2013 establishing Erasmus+, the Union programme for education, training, youth and sport for the period 2014 to 2020. On the basis of the Regulation, and in particular action 3 "Support for policy reform" (as referred to in Article 6 (2) (c) and further set forth in Article 9 (1) (a)), the European Commission ( the Commission ) in cooperation with the Education, Audiovisual and Culture Executive Agency (the Agency ) is inviting the submission of proposals concerning the establishment or development of partnerships or networks that assist small and medium sized enterprises 1 in engaging in apprenticeships. The Agency has been entrusted by the Commission with the management of this call 2. 2.1 Objective 2 OBJECTIVE THEME The objective of the Call is to invite the submission of proposals providing support for small and medium sized enterprises (SMEs) offering apprenticeships, either newly engaging or substantially increasing their current supply of apprenticeships 3. It should be noted that this call does not provide financial support to SMEs directly. Against the background of high youth unemployment and skills mismatch, high-quality apprenticeships are needed to ensure that knowledge, skills and competences acquired during the period of training are relevant to labour market needs. The success of policy initiatives for apprenticeships also depends largely on more small and medium-sized enterprises (SMEs) including micro-companies being involved in providing placements. Evidence suggests that large enterprises are more likely to offer apprenticeships than their smaller counterparts 4. SMEs play a key role in job creation and therefore could also play a stronger role in the provision of apprenticeships, thus enhancing the employability of young people. 1 Small and Medium-sized Enterprises (SMEs) are defined as those with fewer than 250 employees, whose annual turnover may not exceed 50 million, or whose annual balance sheet may not exceed 43 million. For statistical purposes, SMEs are divided into three categories according to their size: micro-enterprises fewer than 10 employees; small enterprises 10-49 employees; medium-sized enterprises- 50-249 employees. Source: European Commission, 2003 2 The 2016 Annual Work Programme for the implementation of Erasmus+ : the Union Programme for Education, Training, Youth and Sport 3 Apprenticeships are formal education and training programmes combining company based training (periods of practical work experience at a workplace) with school-based education (periods of theoretical/ practical education in a school or training centre) leading to a nationally recognised qualification. Most often there is a contractual relationship between the employer and the apprentice, with the apprentice being paid for his/her work. 4 Good for Youth, Good for Business, European Commission, Brochure 2015, p.19-20 4

This Call intends to increase the supply of apprenticeships which is one of the five European priorities on VET for 2015-2020 and one of the main objectives under the European Alliance for Apprenticeships. 2.2 Theme 2.2.1 Background Vocational education and training (VET) has the potential to contribute to reducing Europe s high level of youth unemployment, boosting growth by providing relevant skills for the labour market, promoting a culture of lifelong learning, countering social exclusion and promoting active citizenship. The contribution of work-based learning to supporting youth employment and economic competitiveness is widely recognised. Countries with strong and attractive VET systems, and notably those with well-established apprenticeship systems, tend to perform better in terms of youth employment. The Council Recommendation on Establishing a Youth Guarantee 5, adopted in April 2012, includes a high-quality offer of apprenticeships as one of the options for delivering a Youth Guarantee. The European Alliance for Apprenticeships 6 was launched in Leipzig on 2 July 2013 with a Joint Declaration by the European Social Partners, the European Commission and the Lithuanian Presidency of the Council of the EU, and with a number of pledges by businesses, industry, chambers of commerce, industry and crafts, VET providers and youth representatives. On 15 October 2013, the Council of the European Union adopted the Declaration on the European Alliance for Apprenticeships 7. As one of the key elements the Council agreed on: (f) Involving both employers and public authorities sufficiently in the funding of apprenticeship schemes, whilst ensuring adequate remuneration and social protection of apprentices, and providing appropriate incentives for all actors to participate, especially small and medium sized enterprises, and for an adequate supply of apprenticeship places to be made available. The 'Riga Conclusions' adopted at the Meeting of Ministers in charge of Vocational Education and Training, the European Social Partners and the European Commission on 22 June 2015 in Riga define the promotion of work-based learning in all its forms with special attention to apprenticeships as the first of the five medium-term deliverables to be focused on in the period 2015-2020. 5 http://eur-lex.europa.eu/lexuriserv/lexuriserv.do?uri=oj:c:2013:120:0001:0006:en:pdf 6 http://ec.europa.eu/education/apprenticeship/index_en.htm 7 http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/lsa/139011.pdf 5

The meeting was also used to give a new boost to the development of the European Alliance for Apprenticeships and to announce the new platform called Drop'pin 8 established for companies and organisations to connect with young people to offer them opportunities to improve their skills and boost their employability. The Commission still sees an untapped potential to further involve companies, in particular small and medium-sized enterprises (SMEs) with the aim of increasing the supply of apprenticeships at EU level. The ET2020 Working Group on VET has developed a guidance framework on support for companies, in particular SMEs, offering apprenticeships 9. A Cedefop conference will be organised in November 2015 with focus on the support for SMEs. It will bring together policy makers, VET providers, chambers, a selected group of large as well as small companies, to foster partnerships and discuss how SMEs can be engaged in apprenticeships. 2.2.2 Types of activities The aim of this call is to support European projects that assist SMEs to engage in apprenticeships. Proposals should be submitted under one of the following two Lots: 1. Partnerships on building capacities for intermediary bodies or partnerships established by large companies to support SMEs (Lot 1) Projects supported under this Lot should build partnerships between businesses, VET providers and intermediary organisations together, as appropriate, with public authorities and social partners, with the aim of getting more SMEs involved in apprenticeships. They should therefore aim at Either building capacities of intermediary bodies (such as chambers of commerce, industry and crafts, other professional organisations) supporting apprenticeships in SMEs; or establishing partnerships by bigger companies using their supply chain to assist SMEs in increasing the supply of apprenticeships. These partnerships should include cooperation at transnational, cross border and inter-regional level and/or cooperation at sectoral level in at least two eligible countries (one of which should be an Erasmus+ programme country). The beneficiaries should undertake the following activity: Building up capacities for intermediary bodies (such as chambers of commerce, industry and crafts, other professional organisations) or using the supply chain of 8 https://ec.europa.eu/eures/droppin/en 9 Guidance Framework Support for companies, in particular SMEs, offering apprenticeships: Seven guiding principles, See under related documents: http://ec.europa.eu/social/main.jsp?catid=1147&langid=en 6

bigger companies to develop and set-up support structures for SMEs, particularly for those with no previous experience of apprenticeships; In addition, beneficiaries should undertake one of the following activities: Identifying solutions to specific SMEs' policy challenges for setting-up or strengthening apprenticeships, for example examining and developing governance, curricula, or quality assurance of apprenticeships systems; Developing financial and non-financial support (for example supporting accreditation as a training company, training and instruction of in-company trainers, administrative procedures, assessment and certification of apprentices) structures for SMEs and costsharing models that motivate SMEs, VET providers as well as learners; Supporting measures to help SMEs to raise the quality of apprenticeships in view of promoting excellence; that includes to raise the quality of in-company trainers and to improve the cooperation with VET providers; Supporting measures for SMEs to integrate disadvantaged learners into apprenticeship; Developing strategies for setting up joint training centres or collaborative training that could be used by a pool of SMEs that would work together to host apprentices; Production and dissemination of teaching and information material or other practical tools focusing on SMEs; Undertaking apprenticeship attractiveness campaigns to secure the engagement of SMEs; Identifying and developing strategies and structures to promote cross-border mobility of apprentices in SMEs (but not covering the mobility of apprentices themselves). 2. European level networks and organisations supporting SMEs through their national members or affiliates (Lot 2) The call also supports a limited number of projects presented by existing networks and organisations in order to support strategic activities between their umbrella organisation at European level and their national members or affiliates on strengthening the supply of apprenticeships in SMEs. The beneficiaries should undertake the following activity: Targeted cooperation between the umbrella organisation of existing European networks and organisations and their national members or affiliates for developing and setting up support structures for SMEs, particularly for those with no previous experience with apprentices; In addition, beneficiaries should undertake one of the following activities: 7

Identifying solutions to specific SMEs' policy challenges for setting-up or strengthening apprenticeships, for example examining and developing governance, curricula, or quality assurance of apprenticeships systems; Developing financial and non-financial support (for example supporting accreditation as a training company, training and instruction of in-company trainers, administrative procedures, assessment and certification of apprentices) structures for SMEs and costsharing models that motivate SMEs, VET providers as well as learners; Supporting measures to help SMEs to raise the quality of apprenticeships in view of promoting excellence; that includes to raise the quality of in-company trainers and to improve the cooperation with VET providers; Supporting measures for SMEs to integrate disadvantaged learners into apprenticeship; Developing strategies for setting up joint training centres or collaborative training that could be used by a pool of SMEs that would work together to host apprentices; Production and dissemination of teaching and information material or other practical tools focusing on SMEs; Undertaking apprenticeship attractiveness campaigns to secure the engagement of SMEs; Identifying and developing strategies and structures to promote cross-border mobility of apprentices in SMEs (but not covering the mobility of apprentices themselves). 3 TIMETABLE Stages Date and time or indicative period a) Publication of the call 15/10/2015 b) Deadline for submitting applications 15/01/2016 12:00 noon CET c) Evaluation period 18/01/2016 30/04/2016 d) Information to applicants May 2016 e) Signature of grant agreement July-September 2016 f) Starting date of the action 01/09-01/11 2016 8

4 BUDGET AVAILABLE The total budget earmarked for the co-financing of projects is estimated at maximum 8.7 million euros (5.2 million euros for Lot 1 and 3.5 million euros for Lot 2). Each grant will amount to between 300.000 and 600.000 euros for Lot 1 and between 600.000 and 800.000 euros for Lot 2. The Agency expects to fund around 15 proposals (up to 10 projects under Lot 1 and up to 5 projects under Lot 2). The Agency reserves the right not to distribute all the funds available. 5 ADMISSIBILITY REQUIREMENTS Applications shall comply with the following requirements: - they must be submitted online no later than the deadline for submitting applications referred to in section 3 of the present call for proposals; - they must be submitted exclusively using the correct official online application form (see Part 2 of the present call for proposals); - they must be drafted in any official EU language. Please note that only applications submitted online using the e-form will be considered. Failure to comply with those requirements will lead to the rejection of the application. In order to submit an application, applicants and partners must provide their Participant Identification Code (PIC) in the application form. The PIC can be obtained by registering the organisation in the Unique Registration Facility (URF) hosted in the Education, Audiovisual, Culture, Citizenship and Volunteering Participant Portal. The Unique Registration Facility is a tool shared by other services of the European Commission. If an applicant (or partner) already has a PIC that has been used for other programmes (for example the Research programmes), the same PIC is valid for the present call for proposals. The Participant Portal allows applicants (and partners), to upload or update the information related to their legal status and attach the requested legal and financial documents. See Part 2 for more information. 6 ELIGIBILITY CRITERIA Applications which comply with the following criteria will be subject of an in-depth evaluation. 9

6.1 Eligible Applicants Lot 1: The applicant (project co-ordinator) must be one of the following organisations: - chambers of industry, trade and crafts, or similarly relevant sectoral/professional organisations; - public or private enterprises; - VET providers. - other organisations with a role in supporting SMEs in increasing their offer on apprenticeships The partnership must be composed of at least two eligible countries (one of which must be an Erasmus+ programme country). Lot 2: The applicant (project co-ordinator) must be a network or organisation having members or affiliates in at least 12 Erasmus+ programme countries, of which at least 6 take part in the project as partners. 6.2 Eligible participating organisations (partners) For Lot 1 and Lot 2: - ministries; - social partners (employers' and workers' organisations); - public or private companies; - chambers of industry, trade and crafts, or similarly relevant sectoral/professional organisations (e.g. crafts organisations); - public employment services; - public regional and local authorities; - VET providers; - VET agencies/centres; - schools or other educational institutions; - higher education institutions; - research centres; - international organisations; - non-profit organisations (NGOs); - youth organisations; 10

- parents associations; - other relevant bodies. Natural persons and sole traders are not eligible. Applicants must submit letters from partner organisations confirming their participation (original signatures required). 6.3 Eligible Countries For Lot 1 and Lot 2: The Erasmus+ programme countries: the 28 Member States of the European Union, the EFTA/EEA countries: Iceland, Liechtenstein and Norway, EU candidate countries: Albania, the former Yugoslav Republic of Macedonia, Montenegro, Serbia and Turkey. Proposals from applicants in EFTA/EEA countries or from candidate or associated countries may be selected provided that, on the date of the award, agreements have been signed setting out the arrangements for the participation of those countries in the programme. The following Erasmus+ partner countries: EU potential candidate countries: Bosnia and Herzegovina, and Kosovo. 6.4 Eligible Activities Please see eligible activities described in chapter 2.2.2. 6.5 Eligibility Period Activities must start between 1 September 2016 and 1 November 2016. The duration of the projects is 24 months. Applications for projects scheduled to run for a shorter or longer period than that specified in this call for proposals will not be accepted. No extensions to the eligibility period beyond the maximum duration will be granted. However, if after the signing of the agreement and the start of the project it becomes impossible for the beneficiary, for fully justified reasons beyond his control, to complete the project within the scheduled period, an extension to the eligibility period may be granted. A maximum extension of 6 (six) additional months will be granted, if requested before the deadline specified in the agreement. The total grant awarded will not change. The maximum duration will then be 30 months. Only applications that fulfil the eligibility criteria will be considered for a grant. If an application is deemed ineligible, a letter indicating the reasons will be sent to the applicant. 11

7 EXCLUSION CRITERIA 7.1 Exclusion from participation Applicants will be excluded from participating in the call for proposals procedure if they are in any of the following situations: (a) they are bankrupt or being wound up, are having their affairs administered by the courts, have entered into an arrangement with creditors, have suspended business activities, are the subject of proceedings concerning those matters, or are in any analogous situation arising from a similar procedure provided for in national legislation or regulations; (b) they or persons having powers of representation, decision making or control over them have been convicted of an offence concerning their professional conduct by a judgment of a competent authority of a Member State which has the force of res judicata; (c) they have been guilty of grave professional misconduct proven by any means which the responsible authorising officer can justify including by decisions of the EIB and international organisations; (d) they are not in compliance with their obligations relating to the payment of social security contributions or the payment of taxes in accordance with the legal provisions of the country in which they are established or with those of the country of the responsible authorising officer or those of the country where the grant agreement is to be performed; (e) they or persons having powers of representation, decision making or control over them have been the subject of a judgment which has the force of res judicata for fraud, corruption, involvement in a criminal organisation, money laundering or any other illegal activity, where such illegal activity is detrimental to the Union' financial interests; (f) they are currently subject to an administrative penalty referred to in Article 109(1) of the Financial Regulation. 7.2 Exclusion from award Applicants will not be granted financial assistance if, in the course of the grant award procedure, they: (a) are subject to a conflict of interests; (b) are guilty of misrepresentation in supplying the information required by the Agency as a condition of participation in the grant award procedure, or fail to supply this information; (c) find themselves in one of the situations of exclusion referred to in the above section 7.1. 12

Administrative and financial penalties may be imposed on applicants, who are guilty of misrepresentation or are found to have seriously failed to meet their contractual obligations under a previous grant award procedure. 7.3. Supporting documents Applicants for a grant exceeding EUR 60,000 must sign a declaration on their honour certifying that they are not in one of the situations referred to in the above sections 7.1. and 7.2, filling in the relevant form attached to the application form accompanying the call for proposals. 8 SELECTION CRITERIA Applicants must submit a declaration on their honour, completed and signed, attesting to their status as their financial and operational capacity to complete the proposed activities. 8.1. Financial capacity Applicants must have stable and sufficient sources of funding to maintain their activity throughout the period during which the action is being carried out or the year for which the grant is awarded and to participate in its funding. The applicants' financial capacity will be assessed on the basis of several supporting documents specified below. a) Grants EUR 750 000: A declaration on their honour (to be submitted with the application). A Financial Capacity Form, provided for in the application form, filled in with the relevant statutory accounting figures, in order to calculate the ratios as detailed in the form, The financial statements (including the applicant s profit and loss account and the balance sheet) for the last two financial years for which accounts were closed. b) Grants for an action > EUR 750 000, in addition to the above: An audit report produced by an approved external auditor certifying the accounts for the last financial year available. Applicants must upload the above mentioned documents in the Participants Portal either at the time of their registration in the Portal or, at the latest, before applying for an Erasmus+ grant. On the basis of the documents submitted, if the Authorising Officer considers that the financial capacity is not satisfactory, he may: - request further information; - propose a grant agreement without pre-financing; 13

- propose a grant agreement with a pre-financing paid in instalments; - propose a grant agreement with a pre-financing covered by a bank guarantee (see section 11.4 below); - where applicable, require the joint and several financial liability of all the cobeneficiaries; - reject the application. 8.2 Operational capacity Applicants must have the professional competencies as well as appropriate qualifications necessary to complete the proposed action. In this respect, applicants have to submit a declaration on their honour, and provide the following information in the Detailed Description of the Project (word document) which forms part of the application package: description of skills and qualifications of the people primarily responsible for managing and implementing the operation (accompanied where appropriate, like in the field of research and education, by a list of relevant publications) within each partner institution; an exhaustive lists of previous projects and activities performed and connected to the policy field of a given call or to the actions to be carried out. 9 AWARD CRITERIA ASSESSMENT GRIDS AND SCORING The quality of eligible applications for both Lots will be assessed on the basis of the following criteria: Criteria 14 Score 1 Relevance of the project (threshold minimum 20 points) /40 points the objectives of the proposal are clearly defined, realistic and address issues relevant for SMEs engaging in apprenticeships and are coherent with the objectives of the call for proposals; the envisaged achievements and results are indicated and coherent with the objectives of the call for proposals; the activities are based on needs analysis for introducing and developing apprenticeships. 2 Quality of the project design and implementation (threshold minimum 10 points) the clarity, completeness and quality of the work programme, including appropriate phases for preparation, implementation, monitoring, evaluation and dissemination; the consistency between project objectives and activities proposed;./20 points

the existence and relevance of quality control measures to ensure that the project implementation is of high quality, completed in time and on budget; the budget shows cost effectiveness and value for money. 3 Quality of the project consortium and cooperation arrangements (threshold minimum 10 points) the project involves an effective mix of participating organisations with the necessary profile, experience and expertise to successfully deliver all aspects of the project. The distribution of responsibilities and tasks demonstrates the commitment and active contribution of all participating organisations; the existence of effective mechanisms for coordination and communication between the participating organisations, as well as with any other relevant stakeholders beyond the partnership. /20 points 4 Impact and dissemination (threshold minimum 10 points) /20 points Total Total % the potential impact of the project on the supply for apprenticeships in SMEs, in particular SMEs with no previous experience, the quality of measures for evaluation the outcomes of the project the appropriateness and quality of measures aimed at sharing the outcomes of the project within and outside the participating organisations, the quality of the plans for ensuring the sustainability of the project: its capacity to continue to have an impact and produce results after the EU grant has been used. /100 points % The threshold for proposals to be put forward to the evaluation committee shall be minimum 60 points (out of 100 points in total), also taking into account the necessary minimum threshold for each of four award criteria. 10 LEGAL COMMITMENTS In the event of a grant awarded by the Agency, a grant agreement drawn up in euro and detailing the conditions and level of funding, will be sent to the beneficiary, as well as the procedure in view to formalise the obligations of the parties. Agreement: the 2 copies of the original agreement must be signed first by the beneficiary on behalf of the consortium (where applicable) and returned to the Agency immediately. The Agency will sign them last. Please note that the award of a grant does not establish an entitlement for subsequent years. 15

11.1 General principles 11 FINANCIAL PROVISIONS A European Union grant is an incentive to carry out activities that would not be possible without the Agency s financial support. It is based on the following principles: 11.1.1 Non-cumulative award Action grants: An action may only receive one grant from the EU budget. In no circumstances shall the same costs be financed twice by the Union budget. To ensure this, applicants shall indicate in the application form the sources and amounts of Union funding received or applied for the same action or part of the action or for its functioning during the same financial year as well as any other funding received or applied for the same action. 11.1.2 Non-retroactivity No grant may be awarded retroactively for actions already completed. Action grants: A grant may be awarded for an action which has already begun only where the applicant can demonstrate the need to start the action before the grant agreement is signed. In such cases, costs eligible for financing may not have been incurred prior to the date of submission of the grant application. 11.1.3 Co-financing Co-financing means that the resources which are necessary to carry out the action may not be entirely provided by the EU grant. Co-financing of the action may take the form of: the beneficiary's own resources, income generated by the action, financial contributions from third parties. 11.1.4 Balanced budget 16

The estimated budget of the action is to be attached to the application form. It must have revenue and expenditure in balance. The budget must be drawn up in euros. Applicants which foresee that costs will not be incurred in euros shall use the exchange rate published on the Infor-euro website available at http://ec.europa.eu/budget/contracts_grants/info_contracts/inforeuro/inforeuro_en.cfm on the date of the publication of this call for proposals. 11.1.5 Implementation contracts/subcontracting Where the implementation of the action requires the award of procurement contracts (implementation contracts), the beneficiary must award the contract to the bid offering best value for money or the lowest price (as appropriate), avoiding conflicts of interests and retain the documentation for the event of an audit. In the event of procurement exceeding 60,000, the beneficiary must abide by special rules as referred in the grant agreement. Moreover the beneficiary is expected to clearly document the tendering procedure and retain the documentation for the event of an audit. Entities acting in their capacity of contracting authorities in the meaning of Directive 2004/18/EC or contracting entities in the meaning of Directive 2004/17/EC shall abide by the applicable national public procurement rules. Sub-contracting, i.e. the externalisation of specific tasks or activities which form part of the action as described in the proposal and which cannot be performed by the beneficiary itself must satisfy the conditions applicable to any implementation contract (as specified above) and in addition to them the following conditions: - it may only cover the implementation of a limited part of the action; - it must be justified having regard to the nature of the action and what is necessary for its implementation; - it must be clearly stated in the proposal or prior written authorisation from the Agency must be obtained. The applications may not envisage provision of financial support to third parties. In order to maintain the concept of the project partnership, the management and the general administration of the project may not be subcontracted. 11.2 Funding Forms Reimbursement of eligible costs in combination with flat rate covering overheads The grants financed through reimbursement of eligible costs in combination with flat rate covering overheads are calculated on the basis of a detailed estimated budget, indicating clearly the costs that are eligible for EU funding. 17

Maximum amount requested The EU grant is limited to a maximum co-financing rate of 80% of eligible costs (taking into account the maximum grant amount referred to in section 4). Consequently, part of the total eligible expenses entered in the estimated budget must be financed from sources other than the Union grant. The grant amount may neither exceed the eligible costs nor the amount requested. Amounts are indicated in euros. Acceptance of an application by the Executive Agency does not constitute an undertaking to award a grant equal to the amount requested by the beneficiary. Eligible costs Eligible costs are costs actually incurred by the beneficiary of a grant which meet the following criteria: - they are incurred during the duration of the action as specified in the grant agreement, with the exception of costs relating to final reports and certificates. The period of eligibility of costs will start as specified in the grant agreement. If a beneficiary can demonstrate the need to start the action before the agreement is signed, expenditure may be authorised before the grant is awarded. Under no circumstances can the eligibility period start before the date of submission of the grant application (see section 11.1.2). - they are indicated in the estimated overall budget of the action; - they are incurred in connexion with the action which is the subject of the grant and are necessary for its implementation of the action; - they are identifiable and verifiable, in particular being recorded in the accounting records of the beneficiary and determined according to the applicable accounting standards of the country where the beneficiary is established and according to the usual cost-accounting practices of the beneficiary; - they comply with the requirements of applicable tax and social legislation; - they are reasonable, justified, and comply with the requirements of sound financial management, in particular regarding economy and efficiency. The beneficiary's internal accounting and auditing procedures must permit direct reconciliation of the costs and revenue declared in respect of the action with the corresponding accounting statements and supporting documents. Eligible direct costs: 18

The eligible direct costs for the action are those costs which, with due regard for the conditions of eligibility set out above, are identifiable as specific costs directly linked to the performance of the action and which can therefore be booked to it directly, such as: - the cost of personnel working under an employment contract with the applicant or equivalent appointing act and assigned to the action/project, comprising actual salaries plus social security contributions and other statutory costs included in their remuneration, provided that these costs are in line with the applicant's usual policy on remuneration policy of the beneficiary or, where applicable, its partners. NB: this cost must be actual cost incurred by the beneficiary, the co-beneficiary, and staff cost of other organisations is eligible only if it is paid directly or reimbursed by the beneficiary. These costs may include additional remuneration, including payments on the basis of supplementary contracts regardless of their nature, provided that it is paid in a consistent manner whenever the same kind of work or expertise is required and independently from the source of funding used; The corresponding salary costs of personnel of national administrations are eligible to the extent that they relate to the cost of activities which the relevant public authority would not carry out if the project concerned was not undertaken; - subsistence allowances (for meetings, including kick-off meetings where applicable, European conferences, etc.) provided that these costs are in line with the beneficiary's usual practices; - costs of travel (for meetings, including kick-off meetings where applicable, European conferences, etc.), provided that they are in line with the beneficiary's usual practices on travel; - depreciation cost of equipment (new or second-hand), only the portion of the equipment's depreciation corresponding to the duration of the action and the rate of actual use for the purposes of the action may be taken into account by the Agency, except where the nature and/or the context of its use justifies different treatment by the Agency; - costs of consumables and supplies, provided that they are identifiable and assigned to the action/project; - costs entailed by other contracts awarded by the beneficiary or its partners for the purposes of carrying out the action, provided that the conditions laid down in grant agreement are met; - all other direct costs arising directly from requirements linked to the performance of the action/project (Conferences, trainings, dissemination of information, specific evaluation of the action/project, translations, reproduction, etc.). - costs relating to a pre-financing guarantee lodged by the beneficiary of the grant, where required; - costs relating to external audits where required in support of the requests for payments; - non-deductible value added tax ("VAT") for all activities which are not activities of the public authorities in the Member States. 19

Eligible indirect costs (overheads) - a flat-rate amount, up to 7% of the eligible direct costs of the action, is eligible under indirect costs, representing the beneficiary's general administrative costs which can be regarded as chargeable to the action. Indirect costs may not include costs entered under another budget heading. Applicants s attention is drawn to the fact that in the case of organisations receiving an operating grant, indirect costs are no longer eligible under specific actions. Ineligible costs The following costs shall not be considered eligible: - return on capital; - debt and debt service charges; - provisions for losses or debts; - interest owed; - doubtful debts; - exchange losses; - costs of transfer from the Agency charged by the bank of the beneficiary; - costs declared by the beneficiary and covered by another action receiving a European Union grant. In particular, indirect costs shall not be eligible under a grant for an action awarded to the beneficiary who already receives an operating grant financed from the Union budget during the period in question; - contributions in kind; - excessive or reckless expenditure; - others (in accordance with the relevant legal base); - cost of replacing persons involved in the project; - expenses for travel to or from countries other than those participating in the project/programme, unless explicit prior authorisation is granted by the Agency; - Gift and entertainment expenses; - Dividends and profit sharing. Calculation of the final grant amount Supporting documents The final amount of the grant to be awarded to the beneficiary is established after completion of the action, upon approval of the request for payment containing the following documents: - a final report providing details of the implementation and results of the action; - the final financial statement of costs actually incurred. In case of: 1. Grants for an action of more than EUR 60.000, but less than EUR 750.000 20

The beneficiary is required to submit, in support of the final payment, a Report of Factual Findings on the Final Financial Report - Type I produced by an approved auditor or in case of public bodies, by a competent and independent public officer. The procedure and the format to be followed by an approved auditor or in case of public bodies, by a competent and independent public officer, are detailed in the following Guidance Notes : https://eacea.ec.europa.eu/sites/eacea-site/files/annex_iii_guidance_notes_audit_type_i_03-2014_en.pdf The use of the report format set by the Guidance Notes is compulsory. 2. Grants for an action of EUR 750.000 or more, when the cumulative amounts of request for payment is at least EUR 325.000 The beneficiary is required to submit, in support of the final payment, a Report of Factual Findings on the Final Financial Report - Type II produced by an approved auditor or in case of public bodies, by a competent and independent public officer. The certificate shall certify, in accordance with a methodology approved by the Agency, that the costs declared by the beneficiary in the financial statements on which the request for payment is based are real, accurately recorded and eligible in accordance with the grant agreement or grant decision. The procedure and the format to be followed by an approved auditor or in case of public bodies, by a competent and independent public officer, are detailed in the following Guidance Notes : https://eacea.ec.europa.eu/sites/eacea-site/files/annex_iv_guidance_notes_audit_type_ii_03-2014_en.pdf The use of the report format set by the Guidance Notes is compulsory. If the eligible costs actually incurred by the beneficiary are lower than anticipated, the Agency will apply the rate of co-financing stated in the grant agreement to the expenditure actually incurred. In the event of non-execution or clearly inadequate execution of an activity planned in the application attached to the funding agreement, the final grant will be reduced accordingly. Non-profit rule EU grants may not have the purpose or effect of producing a profit within the framework of the action of the beneficiary. Profit shall be defined as a surplus of receipts over the eligible costs incurred by the beneficiary, when the request is made for payment of the balance. In this respect, where a profit is made, the Agency shall be entitled to recover a percentage of the profit corresponding to the Union contribution to the eligible costs actually incurred by the beneficiary to carry out the action. 21

11.3. Payment arrangements A first pre-financing payment corresponding to 40% of the grant amount will be transferred to the beneficiary within 30 days of the date when the last of the two parties signs the agreement, provided all requested guarantees have been received. A second pre-financing payment of 40% of the grant amount will be made within 60 days of receipt by the Agency of the progress report on the action s implementation. This second prefinancing payment may not be made until at least 70% of the previous pre-financing payment has been used up. Where the consumption of the previous pre-financing is less than 70%, the amount of the new pre-financing payment shall be reduced by the unused amounts of the previous pre-financing The Agency will establish the amount of the final payment to be made to the beneficiary on the basis of the calculation of the final grant amount (see section 11.2 above). If the total of earlier payments is higher than the final grant amount, the beneficiary will be required to reimburse the amount paid in excess by the Commission through a recovery order. 11.4. Pre-financing guarantee In the event that the applicant's financial capacity is not satisfactory, a pre-financing guarantee for up to the same amount as the pre-financing may be requested in order to limit the financial risks linked to the pre-financing payment. The financial guarantee, in euro, shall be provided by an approved bank or financial institution established in one of the Member State of the European Union. When the beneficiary is established in a third country, the authorising officer responsible may agree that a bank or financial institution established in that third country may provide the guarantee if he considers that the bank or financial institution offers equivalent security and characteristics as those offered by a bank or financial institution established in a Member State. Amounts blocked in bank accounts shall not be accepted as financial guarantees. The guarantee may be replaced by a joint and several guarantees by a third party or by a joint guarantee of the beneficiaries of an action who are parties to the same grant agreement The guarantee shall be released as the pre-financing is gradually cleared against interim payments or payments of balances to the beneficiary, in accordance with the conditions laid down in the grant agreement. This requirement does not apply to: public bodies and international organisations under public law established by intergovernmental agreements, specialised agencies created by such organisations, the International Committee of the Red Cross (ICRC) or the International Federation of Red Cross and Red Crescent Societies. 22

12.1. By the beneficiaries 12 PUBLICITY Beneficiaries must clearly acknowledge the European Union s contribution in all publications or in conjunction with activities for which the grant is used. In this respect, beneficiaries are required to give prominence to the name and emblem of the European Commission on all their publications, posters, programmes and other products realised under the co-financed project. To do this they must use the text, the emblem and the disclaimer available at https://eacea.ec.europa.eu/about-eacea/visual-identity_en, which will be provided by the Agency. If this requirement is not fully complied with, the beneficiary s grant may be reduced in accordance with the provisions of the grant agreement 12.2. By the Agency and/or the Commission With the exception of scholarships paid to natural persons and other direct support paid to natural persons in most need, all information relating to grants awarded in the course of a financial year shall be published on the Internet site of the European Union institutions no later than the 30 June of the year following the financial year in which the grants were awarded. The Agency and/or the Commission will publish the following information: name of the beneficiary, locality of the beneficiary: address of the beneficiary when the latter is a legal person, as defined on NUTS 2 level if he/she is domiciled within the EU or equivalent if domiciled outside EU, the amount awarded, nature and purpose of the grant. Upon a reasoned and duly substantiated request by the beneficiary, the publication shall be waived if such disclosure risks threatening the rights and freedoms of individuals concerned as protected by the Charter of Fundamental Rights of the European Union or harm the commercial interests of the beneficiaries. 13 DATA PROTECTION All personal data (such as names, addresses, CVs, etc.) will be processed in accordance with Regulation (EC) No 45/2001 of the European Parliament and of the Council of 18 December 2000 on the protection of individuals with regard to the processing of personal 23

data by the European Community institutions and bodies and on the free movement of such data. Unless marked as optional, the Applicant's replies to the questions in the application form are necessary to evaluate and further process the grant application in accordance with the specifications of the Call for proposals. Personal data will be processed solely for that purpose by the department or Unit responsible for the Union grant Programme concerned (entity acting as data controller). Personal data may be transferred on a need to know basis to third parties involved in the evaluation of applications or in the grant management procedure, without prejudice of transfer to the bodies in charge of monitoring and inspection tasks in accordance with European Union law. In particular, for the purposes of safeguarding the financial interests of the Union, personal data may be transferred to internal audit services, to the European Court of Auditors, to the Financial Irregularities Panel or to the European Anti- Fraud Office and between authorising officers of the Commission and the executive agencies. The applicant has the right of access to, and to rectify, the data concerning him or her. For any question relating to these data, please contact the Controller. Applicants have the right of recourse to the European Data Protection Supervisor at any time. A detailed Privacy statement, including contact information, is available on EACEA's website: http://eacea.ec.europa.eu/about/documents/calls_gen_conditions/eacea_grants_privacy_statem ent.pdf Applicants and, if they are legal entities, persons who have powers of representation, decision-making or control over them, are informed that, should they be in one of the situations mentioned in: the Commission Decision of 16.12.2008 on the Early Warning System (EWS) for the use of authorising officers of the Commission and the executive agencies (OJ, L 344, 20.12.2008, p. 125), or the Commission Regulation of 17.12.2008 on the Central Exclusion Database CED (OJ L 344, 20.12.2008, p. 12), their personal details (name, given name if natural person, address, legal form and name and given name of the persons with powers of representation, decision-making or control, if legal person) may be registered in the EWS only or both in the EWS and CED, and communicated to the persons and entities listed in the above-mentioned Decision and Regulation, in relation to the award or the execution of a procurement contract or a grant agreement or decision. 14 PUBLICATION The Call is being published in the Official Journal of the European Union and on the website of the Agency at the following address: https://eacea.ec.europa.eu/erasmus-plus/funding/support-for-policy-reform-support-for-smalland-medium-sized-enterprises-engaging-in-apprenticeships_en 24

15 APPLICABLE RULES Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union (OJ L 298, 26.10.2012, p.1). Commission Delegated Regulation (EU) No 1268/2012 of 29 October 2012 on the rules of application of Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union (OJ L 362, 31.12.2012, p.1) Legal basis of the programme: http://ec.europa.eu/programmes/erasmusplus/documents/erasmus-plus-legal-base_en.pdf 16 CONTACT For any additional information, please contact: Functional Mailbox: EACEA-EPLUS-VET@ec.europa.eu 25