Title: Subsidy Contract
1Subsidy Contract
Lead Partner seminar 13-14 October 2008, Riga
Arina Andreicika Managing Authority e-mail
arina.andreicika_at_raplm.gov.lv
2Objective of the Subsidy Contract
- To set unified rules for all Projects
implementation, administration and monitoring
within the Programme - To determine the rights and responsibilities of
the MA and the LP - To fulfil requirement of Article 15 (2) of ERDF
Regulation
2
3Content of the Subsidy Contract
- Legal Framework (1)
- Award of subsidy (2)
- Object of use, eligibility of funds (3)
- Reporting and Payments (4)
- LP and PP liabilities (5)
- Publicity (6)
- Durability and ownership of results (7)
- Rights of termination and reduction of the
subsidy (8) - Retaining of documentation (9)
- Controls and audits (10)
- Recovery of funds (11)
- Assignment, legal succession (12)
- Changes in the content of the Subsidy Contract
(13)
4Legal Framework (1)
- The LP should implement the Project in accordance
with regulations and rules as well as the
horizontal policies - The LP is responsible for implementation of the
main Programme principles - In case different interpretation of legal
provisions is discovered the strictest rule shall
apply
5Legal Framework (1)
- Regulation No 1080/2006 (ERDF Regulation)
- Regulation No 1083/2006 (General Regulation)
- Regulation No 1828/2006 (Implementation
Regulation) - Regulation No 1605/2002 (Financial Regulation)
- Regulation No 2342/2002 (Rules for the
implementation of the Financial Regulation) - Regulation No 45/2001 (Regulation on protection
of data) - Regulation No 1998/2006 (Regulation on
application Treaty to de-minimis aid) - EU horizontal policies and principles
5
6Legal Framework (1)
- LatviaLithuania Cross Border Cooperation
Programme (Programme) - Agreement between the MA, the CA and the AA, the
Republic of Latvia and the Republic of Lithuania
on the management and administration of the
Programme - Programme Manual
- Application Form
- Communication Plan
- Subsidy Contract
- Model Partnership Agreement
- Project Progress Report form and Project Final
Report form -
- Relevant national legislation of the Programme
Member States - Programme guidance documents
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7Award of subsidy(2)
- Total eligible Project budgetERDF co-financing
National funding - All the allocations are considered maximum
provisional amounts - The MA shall be entitled to suspend the payments
to the LP or terminate the Subsidy Contract in
case the European Commission fails to make
available the funding to the Programme - The LP for the same activities can receive
funding only once within the Programme and other
EU funded programmes
8Object of use, eligibility of funds (3)
- Costs approved in the Application and awarded to
the LP for implementation of the Project - Costs from the day after the JMSC meeting (start
date) when decision was taken about the Project
approval until the date stated in the Subsidy
Contract as end date - Costs validated by the FLC
- Costs certified by the CA
- Preparation costs incurred between 1 January 2007
and the day before the Project approval in
accordance with the JMSC decision
9Reporting and Payments (4)
- Only the LP is entitled to request payment of the
ERDF co-financing after submitting the Progress
Report - Payments to the LP will be made on a
reimbursement basis - The CA ensures that the LP receives the ERDF
co-financing as quickly as possible and in full - The final amount of the ERDF co-financing will be
paid on the basis of the reported total eligible
expenditure only - Payments not requested in time and in full will
not be reimbursed
10LP and PP liabilities (5)
- The LP solely bears the overall financial and
legal responsibility for the Project and for the
PP - The LP is responsible for concluding the
Partnership Agreement and submitting it to the
JTS - The LP and the PP shall assume liability to third
parties while the Project is being carried out
11Publicity (6)
- Any notice, publication or event, equipment or
infrastructure by the Project must specify that
the Project has received a subsidy from the
Programme funds - The LP must ensure that the Project outputs are
made freely available to public - The MA has the right to publish information on
the Project and products deriving from the
Project for information and publicity purposes
only
12Durability and ownership of results (7)
- The LP and the PP
- Shall retain the Project outputs and results
during the Project and at least for 5 years after
final payment from the ERDF co-financing has been
made - Not allowed to transfer ownerships, titles,
industrial and intellectual property rights for
outputs of the Project without prior consent of
the MA - All estimated revenue must be calculated and
deducted from the Projects eligible expenditure
13 Right of termination and reduction of the
subsidy (8)
- The MA is entitled to
- terminate the Subsidy Contract
- withhold the payments
- reduce the subsidy
- demand repayment of the ERDF co-financing
- The decision to terminate the Subsidy Contract or
reduce the ERDF co-financing shall be made by the
JMSC - In case the Subsidy Contract is terminated
received ERDF co-financing has to be transferred
to the CA
14Retaining of documentation (9)
- The LP and the PP are obliged to retain all
official files, documents and data about the
Project for control and audit purposes on
customary data storage media in a safe and
orderly manner until 31 December 2021 as a
minimum - Location, conditions and support for achieving
must comply with the requirements set in Article
90 of the General Regulation
15Controls and Audits (10)
- Each Progress Report must be validated by the FLC
- The LP and the PP provides all the supporting
documents, necessary information and access to
the Project accounting system, work premises and
the Project outputs for control and audit purpose - The CA has a right to withhold payments to the LP
until required information have been delivered or
case has been solved
16Recovery of Funds (11)
- Irregular expenditures can be detected by any
authority involved in the management and
administration of the Programme - The MA, the CA and the MSs are responsible for
detecting and correcting irregularities and
recover amounts unduly paid - The CA has a right to deduct an amount of
irregularly from the Payment Claim or demand the
reimbursement any irregularly
17Assignment of Rights, Legal Succession (12)
- The MA is entitled to assign its rights under the
Subsidy Contract immediately informing the LP - The LP is allowed to assign its duties and rights
under the Subsidy Contract only prior written
consent of the MA
18Changes in the content of the Subsidy Contract
(13)
- The LP can request changes to the Subsidy
Contract or its Annexes - The changes in the Project may be introduced as
long as the main objective of the Project is not
altered and the maximum amount of the ERDF
co-financing awarded remains the same - The MA has the rights to decide on changes in the
Subsidy Contract in cases mentioned under 13 - The JMSC decides in all other cases that are not
listed under responsibility of the MA - The JTS shall inform the LP in written about
decision on proposed changes in the Subsidy
Contract
19Thank you for your attention!