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Civil society countering violent extremism
Deadline: 30 Sep 2016   CALL EXPIRED

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Civil society countering violent extremism

Background

Promotion of Civil Society under the Stabilization and Association Agreement is deemed essential in ensuring the widest possible participation of all the sectors of society in the process of European integration. In this context, Civil Society represents an essential element of democratic public life in the effort to comply with the objectives of the SAA. The European Partnership asks the Government to encourage the active participation of Civil Society Organisations (CSOs) in government decision-making. However, to attain such involvement further efforts are needed.

The Commission Communication on the Enlargement Strategy and Main Challenges 2014-15 and the latest Strategy Documents underline the importance of civil society being able to play its role in a participatory democracy. Annual reports indicate that the challenges of the European or Accession Partnerships concern not only state building, governance, and socio-economic reforms, but also better democracy across the society.

The 2015 Progress Report, while registering some advancement, still highlights several shortcomings about the active role of civil society.

Following a wide consultation process, in May 2015 the Government adopted a roadmap setting out its policy towards a more enabling environment for civil society. The law setting up the National Council for Civil Society, a consultative body to enable regular dialogue between the government and CSOs on civil society development, was enacted by the Parliament in November 2015 and is expected to be actually set up in 2016.

Public funding for CSOs is limited and procedures for fund allocations need to be clarified and unified throughout the public administration. Tax rules and other regulations are not conducive to private donations to CSOs. Civil society remains fragmented overall and overly dependent on donor funding.

EU support to civil society

The Commission is engaged with CSOs that are committed to strengthening their own capacity to fulfil their objectives. First and foremost, this requires many CSOs to improve their autonomy, representativeness and accountability by strengthening their membership base, by higher internal governance standards, including democratic structures, monitoring and evaluation, financial management, transparency, geographic outreach and cooperation.

Moreover, CSOs can increase their effectiveness by increasing their capacity for analysis, monitoring and advocacy as well as networking, partnership, coalition-building and active involvement in the policy and law making processes. Finally, financial sustainability requires membership development and improved capacity for diversified fundraising targeting public as well as private sources of income.

 

Objectives of the programme and priority issues

The 'Civil Society Facility' (CSF) was set up in 2008 to financially support the development of civil society. The CSF aims at contributing to the consolidation and broadening of political reforms and EU alignments and to the progress made to date with regard to the implementation of the EU acquis and participatory democracy in the country.

In 2013 DG Enlargement has defined, through a large consultation process involving all the IPA countries, Guidelines for Support to Civil Society Organizations in the period 2014/20. The Guidelines identify as priority of EU support to civil society two main goals: 1) achieving an environment that is conducive to civil society activities and 2) building the capacity of CSOs to be effective and accountable independent actors.

In line with the above considerations, the global objective of this Call for Proposals is to encourage the active participation of civil society in policy-making and contributing to the fulfilment of Albania's obligations under the EU Albania Stabilisation and Association Agreement.

 

The specific objective of this Call for Proposals is to encourage the participation of civil society in countering violent extremisms and engaging at local level in sensitive areas where radicalisation is more eager to spread.

This is to be promoted through concrete actions with local stakeholders, including local authorities, schools and families in order to engage at grass-root level to prevent radicalisation among young people and more generally unemployed, undereducated and social excluded citizens.

EU action against violent extremism

At global level, the EU has on-going actions on counter-terrorism and countering violent extremism for an amount of EUR 142 million.

The EU Western Balkans Counter-Terrorism Initiative, led by Slovenia and Austria with the full support of all EU Member States and the EU institutions, aims to coordinate ongoing and planned counter-terrorism and countering violent extremism activities in the Western Balkans.

The Global project on strengthening the legal regime against foreign terrorist fighters (FTF) in Middle Eastern, North African and Balkan countries aims to strengthen the capacity of Middle East and North Africa (MENA) and Balkan countries to prevent and fight terrorism, particularly taking into account the increasing flow of international recruits to terrorist organizations, including FTF.

Role of civil society in countering violent extremism

Albania is traditionally considered a tolerant country, with constructive inter religious dialogue and a limited radicalisation. Nonetheless, radicalisation is a global threat and in the latest years Albania has also been affected, together with several EU Member states and Western Balkans Countries, by the foreign fighters' phenomenon. Since 2013 an estimated 120 Albanian citizens, some of them together with family members, have left the country to join war torn zones in the Middle East. 30-40 foreign fighters have since returned and live in conditions of social exclusion.

The 2015 European Commission Annual Report acknowledged Albania's efforts to tackle radicalisation and terrorism and called on Albania to "develop an effective policy to prevent radicalisation, including through law enforcement measures and socioeconomic actions aimed at strengthening social inclusion, particularly among young people, and to enhance efforts to identify, prevent and disrupt the flow of foreign terrorist fighters traveling to conflict areas such as Iraq and Syria".

In May 2015 a Balkans Regional Summit on Countering Violent Extremism was held in Tirana with participation from all the countries in the region and international organizations active on the subject.

Main conclusions included the following points:

- the most effective way to address these challenges is through a comprehensive strategy that identifies and develops a wide range of rights-respecting tools to tackle the underlying drivers that fuel the appeal and spread of violent extremism;

- countering and preventing the spread of violent extremism requires localized, specialized, and expanded efforts, thus reinforcing the need to further empower local actors – municipal governments, youth, families, marginalized community members, religious, cultural, and education leaders – and to adopt tailored approaches, including those sensitive to local cultures and religious beliefs, to address this phenomenon;

- women are also vulnerable to radicalization and are participating in terrorist groups and serving as FTFs; the important role women play in countering violent extremism and the relevance of integrating women into CVE efforts;

- the need to work together to better understand the precise nature of violent extremist threats at the local and regional level, including by promoting local research, analysis, and information sharing on the drivers of violent extremism in all of its forms for all segments of society, including women and youth, and on how best to counter those drivers

- the corrosive messages of violent extremists and the need to intensify efforts to push back with community-driven counter narratives that amplify authentic and credible voices and, in this context, to use the power and reach of social media to challenge violent extremists’ messaging through positive alternative narratives, and, in turn, delegitimize violent extremist ideologies;

- the importance of building communities that are resilient to the spread of violent extremism and the need to expand social services and provide educational and economic opportunities, particularly for members of marginalized populations and youth, to respond to the needs of the most vulnerable citizens;

- the need to expand programs that empower youth and other young leaders, promote entrepreneurship and economic opportunity, and enhance civic education and the culture of tolerance and nonviolence;

- the importance of developing comprehensive national strategies and plans of action for addressing violent extremism, that include a diversity of national government agencies, as well as representatives from municipal governments and civil society in the design and implementation of such CVE frameworks

In November 2015 the government adopted a Strategy on Counter Violent Extremism (CVE). The strategy aims at preventing extremisms by supporting education to tolerance and access to professional development country-wide with the engagement of central, local institutions as well as religious communities and civil society. To this extent, it foresees a leading role for the ministries Education and of Youth and Employment. Programs such as training of law enforcement bodies, support the identification of early signs of radicalization as well as to promote coordinated public campaigns on social and traditional media are also part of the strategy's programmatic plan.

Some geographical area of the country are more vulnerable to radicalisation, in particular in small socio-economically disadvantages villages with scarce access to job opportunities and education. The main push factors for radicalisation are to be attributed mainly to the lack of education and job opportunities. In marginal areas, this is often coupled with lack of social services and disappointment with public institutions. This is turn is creating favourable conditions for religious extremist's propaganda, targeting mainly young people, who are the main group at risk.

The role of local authorities, religious communities, schools, families and CSOs is key to prevent radicalisation and provide an alternative to the radicalised propaganda which is mainly propagated around religious sites and through social media.

This grant scheme is also specifically aimed to involve grass-roots based organizations which are usually not able to take part in EU funding schemes.

The expected result of the present call is to have a reinforced group of CSOs able to work in a professional and sustainable way in countering – also in collaboration with other CSOS and with the relevant governmental counterparts – violent extremism.

 

Financial allocation provided by the contracting authority

The overall indicative amount made available under this call for proposals is EUR 670,000. The Contracting Authority reserves the right not to award all available funds.

Size of grants

Any grant requested under this call for proposals must fall between the following minimum and maximum amounts:

minimum amount: EUR 200,000

maximum amount: EUR 335,000

Any grant requested under this call for proposals must fall between the following minimum and maximum percentages of total eligible costs of the action:

Minimum percentage: 50% of the total eligible costs of the action.

Maximum percentage: 95% of the total eligible costs of the action (see also section 2.1.5).

The balance (i.e. the difference between the total cost of the action and the amount requested from the Contracting Authority) must be financed from sources other than the European Union Budget or the European Development Fund1.

 

 

Rules FOR thIS call for proposalS

These guidelines set out the rules for the submission, selection and implementation of the actions financed under this call, in conformity with the Practical Guide, which is applicable to the present call (available at http://ec.europa.eu/europeaid/prag/document.do?locale=en) 1.

 

Eligibility criteria

There are three sets of eligibility criteria, relating to:

  • the actors:

    • The lead applicant, i.e. the entity submitting the concept note and the full application form (2.1.1),

    • if any, its co-applicant(s) (where it is not specified otherwise the lead applicant and its co-applicant(s) are hereinafter jointly referred as the "applicants") (2.1.1),

    • and, if any, affiliated entity(ies) to the lead applicant and/or to a co-applicant(s). (2.1.2);

  • the actions:

    • Actions for which a grant may be awarded (2.1.4);

  • the costs:

    • types of cost that may be taken into account in setting the amount of the grant (2.1.5).

 

 

Eligibility of applicants (i.e. lead applicant and co-applicant(s))

Lead applicant

(1) In order to be eligible for a grant, the lead applicant must:

  • • be legal persons and
  • • be non-profit-making and
  • • be a specific type of organisation such as: non-governmental organisation, international (inter-governmental) organisation 2- as defined by Article 43 of the Rules of application of the EU Financial Regulation if international organisations are eligible remember to publish Annex e3h11 containing derogations to include in the Special Conditions, if the lead applicant is an international organisation whose pillars have not been positively assessed or if one of the co-applicants is an international organisation (regardless of whether its pillars have been positively assessed or not) - and
  • • be legally established in Albania or in a Member State of the European Union, in an accession or official candidate country as recognised by the European Union or in Member State of the European Economic Area, and
  • • be directly responsible for the preparation and management of the action with the co-applicant(s) and affiliated entity(ies), not acting as an intermediary.

(2) Potential applicants may not participate in calls for proposals or be awarded grants if they are in any of the situations listed in section 2.3.3 of the Practical Guide;

 

 

 

In Annex A.2, section 5 (‘declaration by the lead applicant’), the lead applicant must declare that the lead applicant himself, the co-applicants and affiliated entity (ies) are not in any of these situations.

The lead applicant must act with co-applicants as specified hereafter.

If awarded the grant contract, the lead applicant will become the beneficiary identified as the Coordinator in Annex E3h1 (Special Conditions). The Coordinator is the main interlocutor of the Contracting Authority. It represents and acts on behalf of any other co-beneficiary (if any) and coordinate the design and implementation of the action.

Co-applicant(s)

Co-applicants should include at least:

- 1 co-applicant established in a Member State of the European Union (only in case when the Lead Applicant is not establish in a Member State of the European Union); and

- 1 co-applicant established in an accession or official candidate country, as recognised by the European Union (only in case when the Lead Applicant is not established in an accession or official candidate country, as recognised by the European Union); and

- 1 co-applicant established in Albania (only in case when the Lead Applicant is not established in Albania).

Co-applicants participate in designing and implementing the action, and the costs they incur are eligible in the same way as those incurred by the lead applicant.

Co-applicants must satisfy the eligibility criteria as applicable to the lead applicant.

Co-applicants must sign the mandate in Annex A.2., section 4.

If awarded the grant contract, the co-applicant(s) (if any) will become beneficiary(ies) in the action (together with the Coordinator).

 

 

Affiliated entities

The lead applicant and its co-applicant(s) may act with affiliated entity(ies)

Only the following entities may be considered as affiliated entities to the lead applicant and/or to co-applicant(s):

Only entities having a structural link with the applicants (i.e. the lead applicant or a co-applicant), in particular a legal or capital link.

This structural link encompasses mainly two notions:

(i) Control, as defined in Directive 2013/34/EU on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings:

Entities affiliated to applicant may hence be:

  • Entities directly or indirectly controlled by an applicant (daughter companies or first-tier subsidiaries). They may also be entities controlled by an entity controlled by an applicant (granddaughter companies or second-tier subsidiaries) and the same applies to further tiers of control;

  • Entities directly or indirectly controlling the applicant (parent companies). Likewise, they may be entities controlling an entity controlling the applicant;

  • Entities under the same direct or indirect control as the applicant (sister companies).

(ii) Membership, i.e. the applicant is legally defined as a e.g. network, federation, association in which the proposed affiliated entities also participate or the applicant participates in the same entity (e.g. network, federation, association) as the proposed affiliated entities.

 

The structural link shall as a general rule be neither limited to the action nor established for the sole purpose of its implementation. This means that the link would exist independently of the award of the grant; it should exist before the call for proposals and remain valid after the end of the action.

 

By way of exception, an entity may be considered as affiliated to an applicant even if it has a structural link specifically established for the sole purpose of the implementation of the action in the case of so-called “sole applicants” or “sole beneficiaries”. A sole applicant or a sole beneficiary is a legal entity formed by several entities (a group of entities) which together comply with the criteria for being awarded the grant. For example, an association is formed by its members.

 

What is not an affiliated entity?

 

The following are not considered entities affiliated to an applicant:

 

  • Entities that have entered into a (procurement) contract or subcontract with an applicant, act as concessionaires or delegatees for public services for an applicant,

  • Entities that receive financial support from an applicant,

  • Entities that cooperate on a regular basis with an applicant on the basis of a memorandum of understanding or share some assets,

  • Entities that have signed a consortium agreement under the grant contract (unless this consortium agreement leads to the creation of a "sole applicant" as described above).

 

How to verify the existence of the required link with an applicant?

 

The affiliation resulting from control may in particular be proved on the basis of the consolidated accounts of the group of entities the applicant and its proposed affiliates belong to.

The affiliation resulting from membership may in particular be proved on the basis of the statutes or equivalent act establishing the entity (network, federation, association) which the applicant constitutes or in which the applicant participates.

If the applicants are awarded a grant contract, their affiliated entity(ies) will not become beneficiary(ies) of the action and signatory(ies) of the grant contract. However, they will participate in the design and in the implementation of the action and the costs they incur (including those incurred for implementation contracts and financial support to third parties) may be accepted as eligible costs, provided they comply with all the relevant rules already applicable to the beneficiary(ies) under the grant contract.

Affiliated entity(ies) must satisfy the same eligibility criteria as the lead applicant and the co-applicant(s). They must sign the affiliated entity(ies) statement in Annex A.2., section 5.

 

 

Associates and Contractors

The following entities are not applicants nor affiliated entities and do not have to sign the "mandate for co-applicant(s)" or "affiliated entities' statement":

  • Associates

Other organisations or individuals may be involved in the action. Such associates play a real role in the action but may not receive funding from the grant, with the exception of per diem or travel costs. Associates do not have to meet the eligibility criteria referred to in section 2.1.1. Associates must be mentioned in Annex A.2., section 4 — ‘Associates participating in the action’.

  • Contractors

The beneficiaries and their affiliated entities are permitted to award contracts. Associates or affiliated entity(ies) cannot be also contractors in the project. Contractors are subject to the procurement rules set out in Annex IV to the standard grant contract.

 

 

Eligible actions: actions for which an application may be made

Definition

An action is composed of a set of activities.

Duration

The initial planned duration of an action may not be lower than 12 months nor exceed 36 months.

Sectors or themes

Reinforcement of community based initiatives against violent extremism, promotion of use of media communication to counter violent extremism, promotion of countering of radicalization in prison and support to reintegration of affected individuals and communities, also through promotion of income generating activities.

Location

Actions must take place in Albania.

Types of action

Types of action which may be financed under this call by beneficiary of financial support include, by way of example, the following:

- Identifying and supporting concrete youth, women, and religious leaders and other civil society and community-led projects that are designed to address the local drivers of violent extremism and populations at-risk of recruitment and radicalization;

- Building the capacity of civil society organizations, community based organizations and other non-government partners to use communication media to better amplify an alternative, affirmative narrative to counter the hateful and violence-filled ones;

- Developing and/or expanding programs for countering radicalization in prisons and promoting rehabilitation and reintegration of affected individuals and communities.

The following types of action are ineligible:

  • actions concerned only or mainly with individual sponsorships for participation in workshops, seminars, conferences and congresses;

  • actions concerned only or mainly with individual scholarships for studies or training courses.

Types of activity

Types of activity which may be financed under this call include, but are not limited to: organization of community based public event including seminars, workshops, training and awareness sessions and cultural events; production of researches, documents, reports, studies, press articles and various media products.

Financial support to third parties1

Under this call, financial support to third parties is the main purpose of the action.

In compliance with the present guidelines and notably of any conditions or restrictions in this section, the lead applicant should define mandatorily in section 2.1.1 of the grant application form:

  1. the objectives and results to be obtained with the financial support

  2. the different types of activities eligible for financial support, on the basis of a fixed list

  3. the types of persons or categories of persons which may receive financial support

  4.  the criteria for selecting these entities and giving the financial support

  5. the criteria for determining the exact amount of financial support for each third entity, and

  6. the maximum amount which may be given.

In all events, the mandatory conditions set above for giving financial support (points (i) to (vi)) have to be strictly defined in the grant contract as to avoid any exercise of discretion.

As the specific aim of the grant is to out-reach small / grass-root based organizations, the applicant is requested to manage the redistribution of at least 60% of the value of the contract through financial support to third parties.

The applicant is requested to have previous experience in managing financial support scheme for third parties, including the capacity to identify, select and coach the grass-root organizations, in order to favour their strengthening and consolidation

The applicant must specify in their applications the objectives and results to be obtained and the types of entity that will be eligible for financial support. A fixed list of the types of activity eligible for financial support must be included in the application, together with the criteria for selecting third parties, including the criteria for determining the exact amount of each financial support.

The maximum amount of a financial support will be up to EUR 10,000 per third party

 

Visibility

The applicants must take all necessary steps to publicise the fact that the European Union has financed or co-financed the action. As far as possible, actions that are wholly or partially funded by the European Union must incorporate information and communication activities designed to raise the awareness of specific or general audiences of the reasons for the action and the EU support for the action in the country or region concerned, as well as the results and the impact of this support.

Applicants must comply with the objectives and priorities and guarantee the visibility of the EU financing (see the Communication and Visibility Manual for EU external actions specified and published by the European Commission at https://ec.europa.eu/europeaid/communication-and-visibility-manual-eu-external-actions_en).

Number of applications and grants per applicants / affiliated entities

The lead applicant may not submit more than one application under this call for proposals.

The lead applicant may not be awarded more than one grant under this Call for Proposals

The lead applicant may not be a co-applicant or an affiliated entity in another application at the same time.

A co-applicant/affiliated entity may not be the lead applicant, co-applicant or an affiliated entity in another application at the same time.

A co-applicant/affiliated entity may not be awarded more than one grant(s) under this call for proposals.

 

 

Eligibility of costs: costs that can be included

Only ‘eligible costs’ can be covered by a grant. The categories of costs that are eligible and non-eligible are indicated below. The budget is both a cost estimate and an overall ceiling for ‘eligible costs’.

The reimbursement of eligible costs may be based on any or a combination of the following forms:

  • actual costs incurred by the beneficiary(ies) and affiliated entity(ies)

  • one or more simplified cost options.

Simplified cost options may take the form of:

  • unit costs: covering all or certain specific categories of eligible costs which are clearly identified in advance by reference to an amount per unit.

  • lump sums: covering in global terms all or certain specific categories of eligible costs which are clearly identified in advance.

  • flat-rate financing: covering specific categories of eligible costs which are clearly identified in advance by applying a percentage fixed ex ante.

The amounts or rates have to be based on estimates using objective data such as statistical data or any other objective means or with reference to certified or auditable historical data of the applicants or the affiliated entity(ies). The methods used to determine the amounts or rates of unit costs, lump sums or flat-rates must comply with the criteria established in Annex K, and especially ensure that the costs correspond fairly to the actual costs incurred by the beneficiary(ies) and affiliated entity(ies), are in line with their accounting practices, no profit is made and the costs are not already covered by other sources of funding (no double funding). Refer to Annex K for directions and a checklist of controls to assess the minimum necessary conditions that provide reasonable assurance for the acceptance of the proposed amounts.

Applicants proposing this form of reimbursement, must clearly indicate in worksheet no.1 of Annex B, each heading/item of eligible costs concerned by this type of financing, i.e. add the reference in capital letters to "UNIT COST" (per month/flight etc), "LUMPSUM" or "FLAT RATE" in the Unit column. (see example in Annex K)

Additionally in Annex B, in the second column of worksheet no.2, "Justification of the estimated costs" per each of the corresponding budget item or heading applicants must:

  • describe the information and methods used to establish the amounts of unit costs, lump sums and/or flat-rates, to which costs they refer, etc.

  • clearly explain the formulas for calculation of the final eligible amount2

  • identify the beneficiary who will use the simplified cost option (in case of affiliated entity, specify first the beneficiary), in order to verify the maximum amount per each beneficiary (which includes if applicable simplified cost options of its affiliated entity(ies))

At contracting phase, the Contracting Authority decides whether to accept the proposed amounts or rates on the basis of the provisional budget submitted by the applicants, by analysing factual data of grants carried out by the applicants or of similar actions and by performing checks established by Annex K.

The total amount of financing on the basis of simplified cost options that can be authorised by the Contracting Authority for any of the applicants individually (including simplified cost options proposed by their own affiliated entities) cannot exceed EUR 60 000 (the indirect costs are not taken into account).

Recommendations to award a grant are always subject to the condition that the checks preceding the signing of the grant contract do not reveal problems requiring changes to the budget (such as arithmetical errors, inaccuracies, unrealistic costs and ineligible costs). The checks may give rise to requests for clarification and may lead the Contracting Authority to impose modifications or reductions to address such mistakes or inaccuracies. It is not possible to increase the grant or the percentage of EU co-financing as a result of these corrections.

It is therefore in the applicants' interest to provide a realistic and cost-effective budget.

 

The simplified cost option may also take the form of an apportionment of Field Office's costs.

Field Office means a local infrastructure set up in one of the countries where the action is implemented or a nearby country. (Where the action is implemented in several third countries there can be more than one Field Office). That may consist of costs for local office as well as human resources.

A Field Office may be exclusively dedicated to the action financed (or co-financed) by the EU or may be used for other projects implemented in the partner country. When the Field Office is used for other projects, only the portion of capitalised and operating costs which corresponds to the duration of the action and the rate of actual use of the field office for the purpose of the action may be declared as eligible direct costs.

The portion of costs attributable to the action can be declared as actual costs or determined by the beneficiary(ies) on the basis of a simplified allocation method (apportionment).

The method of allocation has to be:

1. Compliant with the beneficiary's usual accounting and management practices and applied in a consistent manner regardless of the source of funding and

2. Based on an objective, fair and reliable allocation keys. (Please refer to Annex K to have examples of acceptable allocation keys).

A description prepared by the entity of the allocation method used to determine Field Office's costs in accordance with the entity's usual cost accounting and management practices and explaining how the method satisfy condition 1 and 2 indicated above, has to be presented in a separate sheet and annexed to the Budget.

The method will be assessed and accepted by the evaluation committee and the Contracting Authority at contracting phase. The applicant is invited to submit (where relevant) the list of contracts to which the methodology proposed had been already applied and for which proper application was confirmed by an expenditure verification.

At the time of carrying out the expenditure verifications, the auditors will check if the costs reported are compliant with the method described by the beneficiary(ies) and accepted by the Contracting Authority.

Adequate record and documentation must be kept by the beneficiary(ies) to prove the compliance of the simplified allocation method used with the conditions set out above. Upon request of the beneficiary(ies), this compliance can be assessed and approved ex-ante by an independent external auditor. In such a case, the simplified allocation method will be automatically accepted by the evaluation committee and it will not be challenged ex post.

When costs are declared on the basis of such allocation method the amount charged to the action is to be indicated in the column "TOTAL COSTS" and the mention "APPORTIONMENT" is to be indicated in the column "units" (under budget heading 1 (Human resources) and 4 (Local Office) of the Budget).

 

Eligible direct costs

To be eligible under this call for proposals, costs must comply with the provisions of Article 14 of the General Conditions to the standard grant contract (see Annex G of the guidelines).

The applicants (and where applicable their affiliated entities) agree that the expenditure verification(s) referred to in Article 15.7 of the General Conditions to the standard grant contract (see Annex G of the guidelines) will be carried out by the Contracting Authority or any external body authorised by the Contracting Authority.

Contingency reserve

The budget may include a contingency reserve not exceeding 5 % of the estimated direct eligible costs. It can only be used with the prior written authorisation of the Contracting Authority.

Eligible indirect costs

The indirect costs incurred in carrying out the action may be eligible for flat-rate funding, but the total must not exceed 7 % of the estimated total eligible direct costs. Indirect costs are eligible provided that they do not include costs assigned to another budget heading in the standard grant contract. The lead applicant may be asked to justify the percentage requested before the grant contract is signed. However, once the flat rate has been fixed in the Special Conditions of the grant contract, no supporting documents need to be provided.

If any of the applicants or affiliated entity(ies) is in receipt of an operating grant financed by the EU, it may not claim indirect costs on its incurred costs within the proposed budget for the action.

Contributions in kind

Contributions in kind mean the provision of goods or services to a beneficiaries or affiliated entities free of charge by a third party. As contributions in kind do not involve any expenditure for beneficiaries or affiliated entities, they are not eligible costs.

Contributions in kind may not be treated as co-financing

However, if the description of the action as proposed includes contributions in kind, the contributions have to be made.

Ineligible costs

The following costs are not eligible:

  • debts and debt service charges (interest);

  • provisions for losses or potential future liabilities;

  • costs declared by the beneficiary(ies) and financed by another action or work programme receiving a European Union (including through EDF) grant;

  • purchases of land or buildings, except where necessary for the direct implementation of the action, in which case ownership must be transferred, in accordance with Article 7.5 of the General Conditions of the standard grant contract, at the latest at the end of the action;

  • currency exchange losses;

 

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