EU-TURKEY CHAMBER FORUM PROJECT (ETCF) ETCF is funded by the European Union. 1 EU-TURKEY CHAMBER FORUM EU TURKEY CHAMBERS PARTNERSHİP GRANT SCHEME PROJECT.

EU-TURKEY CHAMBER FORUM PROJECT (ETCF)

ETCF is funded by the European Union.1

EU-TURKEY CHAMBER FORUM EU-TURKEY CHAMBER FORUM EU TURKEY CHAMBERS EU TURKEY CHAMBERS

PARTNERSHİP GRANT SCHEME PARTNERSHİP GRANT SCHEME

PROJECT MANAGEMENTPROJECT MANAGEMENT

20092009Burcu Atılgan-Grant ExpertBurcu Atılgan-Grant Expert

TOBB EU DepartmentTOBB EU Department

Content

• Project Management

• Grant Contract

• Project Documentation and Accountancy

• Reporting Requirements

• Procurement

• Monitoring and Support Activities

Project Management

Project Management Body of Knowledge• I. Project Scope Management• II. Project Procurement Management• III. Project Time Management• IV. Project Cost Management• V. Project Risk Management• VI. Project Quality Management• VII. Project Human Resources Management• VIII. Communications Management• IX. Project Integration Management

Project Management

Project Management Body of Knowledge.

Project Management

I. Project Scope Management

Project Management• II. Project Procurement Management

Project Management

III. Project Time Management

Project Management

IV. Project Cost ManagementAs part of your application you have completed

planning, estimating and budgeting processes.

During the implementation of your project you will

need to control the budget that you have proposed

intensively.

Project Management V. Project Risk Management

Project Management

VI. Project Quality Management

For the purposes of simplicity in our grantprojects, project managers shall monitor their project indicators through the course of their

project.Your major source for performance indicators should be your logframe.

Project Management VI. Project Quality Management

Project Management

VII. Project Human Resources Management

Human Resource Planning determines project roles, responsibilities and reporting

relationships. It is important that each project member is aware of his/her role and duties

within the project.

Project Management

VIII. Communications Management

Proper Project Communication Management ensures your project to timely; generate,

collect, distribute, store information.

Project Management

IX. Project Integration Management

The Project Integration Management includes processes and activities

needed to identify,define, combine, unify and coordinate

various processes and project management

activities within the Project Management Process Groups.

GRANT CONTRACTGRANT CONTRACT

ContractsContracts

• Grant Contract – signed between the Contracting Authority and the Beneficiary

• Contract should also be in line with legal provisions of Labour Code, Occupational Safety and Health Legislation, Tax and Accountancy Laws and any other relevant legislation in beneficiary country

Major Parts of Grant ContractMajor Parts of Grant Contract

• The Special Conditions (project duration, total project cost and the grant, reporting and payment schedule)

• Annex I of Grant Contract: “Description of the action” -Significant modifications of activities may need an Addendum to the contract.

• Annex II of Grant Contract: “General Conditions” specify the general obligations and financial provisions under the contract

Major Parts of Grant ContractsMajor Parts of Grant Contracts

Annex II : General ConditionsGeneral conditions specify the general obligations and financial provisions under the contract. – Reporting– Liability of Parties– Visibility of Projects– Ownership of the Equipments– Evaluation/Monitoring– Contract Ammendments– Eligible costs– Extension, Suspension, Termination of Projects– Payment Methods– And other legal issues

Major Parts of Grant ContractsMajor Parts of Grant Contracts

• Annex III of Grant Contract: “Budget for the action” Budget is a breakdown of all eligible project related costs.

Annex IV of Grant Contract: “Contract Award Procedures” -awarding contracts for services, supplies and works to external organisations

• Annex V of Grant Contract: This annex contains standard templates that you have to use: Legal Entity Sheet, Request for Payment, Financial Identification Form

Annex VI of Grant Contract: This annex contains standard forms

for Interim, Final narrative and Financial Report. Annex VII of Grant Contract: Model of Expenditure Verification

Report - it is also obligatory to obtain an Independent Audit Report before requesting the final payment.

Modifying Grant ContractsModifying Grant Contracts

Modification• Minor Changes• Major Changes

ModificationModification• Minor Changes

– changes in activities or budget that do not affect the basic purpose of the project

– transfer between budget headings involving a variation of 15% or less

– Changes of address or phone number– Changes of bank account– Change of project manager or key experts– Increase or decrease in numbers of equipment or unit

prices without changes of the budget amount allocated for that budget item

– Model/brand name change of the equipment as a new technology

ModificationModification• Major Changes

– Extension or early closing of the contract– Significant changes in activities affecting the basic

purpose and indicators of the project. – Transfer amongst budget headings outside the limits of

minor modification (15%)– Addition or cancellation of a new budget item in the

Budget– Change of project Partners (addition or replacement)– Changes in your organisation’s name or legal status– Adding new item or deducting an existing item from the

budget

ModificationModification

• Process for Minor Change

Within 10 days of implementation of the change2 hard copies to Support Unit

(a copy of request should be filed by Grant Beneficiary also)

• Process for Minor Change– Beneficiary makes the change– Inform the SU – SU sends the notification letter to Contracting

Authority (CFCU) (with cheklist)– Contracting Authority (CFCU) might not accept that

the change is minor - this means that costs made might not get approved.

Minor change How to notify Deadline

Small change of activities with no budgetary implications

Bi-monthly reports

and Interim or Final Report

Next report

Small changes of activities with budgetary implications

Notifications letter 10 days before the implementation of the change

Changes of address

Changes of bank account

Change of expert (including all persons under Human Resources)

Change of auditor Notifications letter or Interim/Final Report

Deadlines for notification

Process for Major Change

Preparing an addendum:

Prepare a request for addendum, following the

Standard Form-2 in English and in Turkish in three hard

copies.

3 hard copies to Support Unit

(a copy of request should be filed by Grant Beneficiary also)

The request for Addendum should contain a detailed description of the requested modification and the reason for modifications.

Any addendum modifying the budget must include a replacement budget showing how the full budget breakdown of the initial contract has been modified by this addendum (and any previous addenda)

Budget headings Original Budget Budget of Addendum 1 Budget of Addendum 2

Human resources

Travel

Equipment and Supplies

Local office/Action costs

Other costs, services

Others

Subtotal direct eligible costs of the Action

Total direct eligible costs of the

Action

Total eligible costs

Submission of the addendum request:

30 days before the implementation

of the change

and at least 1 month before the Contract expiry date.

CFCU prepares and sends the Addendum to the

Grantee signature.

The addendum takes effect on the date of the later signature.

Remember that Grantees cannot implement the

change before the signature of the Addendum.

Eligible CostsEligible Costs

General principles: Costs have to be included in the project budget

(Annex III of the contract) The activities for which Grantee requests payment

should correspond to those described in Annex I of the contract

All costs must be real costs, i.e. actually incurred by the Beneficiary (and partners, if applicable)

Cost must be recorded in the accounts or tax documents of the Beneficiary (or his partners, if applicable)

Eligible CostsEligible Costs1. Human Resources : Payment of salaries and fees for staff

contracted by the Beneficiary and for partners’ staff.

• Sub-contracted services (payment to companies under the service contracts tendered following the EC procedures) cannot be claimed under this budget heading.

• The cost of staff assigned must include actual salaries plus social security charges and other remuneration-related costs.

Eligible CostsEligible Costs1. Human Resources : • Salaries and costs must not exceed those normally

borne by the Beneficiary or his partners.• Per diems cover all meal, hotel expenses and short

distance travel (e.g. within the city). • Per diems should be in-line with the budget and should

not be higher than the EU max. daily rates(http://europa.eu.int/comm/europeaid/perdiem/liste1_en.htm).

• Per diems are calculated on overnight basis.

Eligible CostsEligible Costs

2. Travel

International travel sub-heading

Local transportation subheading

All flight tickets and boarding pass should be kept by the beneficiary.– The taxes of the tickets will not be eligible costs. If the

tickets includes tax (KDV), the cost without taxes will be accepted as eligible.

Eligible CostsEligible Costs 3. Equipment and supplies

All expenditure is VAT free provided relevant certificates and approvals are obtained• EC Procurement Rules• The rule on eligibility of nationality • Eligible Origin of Goods

Eligible CostsEligible Costs4. Local office / project costs The cost cannot be used for covering cost

related to main offices of the Beneficiary (and partners). Cost is eligible only if a new office/ training facilities are opened for the needs of the implementation of project activities.

5 and 6. Others

Amounts budgeted under headings 5 & 6 may be used to cover costs for the items specified in the budget and fully sub-contracted services: publications, translation, events, etc.

Eligible Costs

10. Administrative costs • A percentage of the final approved total direct eligible

costs may be claimed as indirect costs to cover the administrative overheads incurred by the Beneficiary. The costs are eligible provided that:

• They do not exceed the rate stated in the budget;• They do not include costs assigned to another heading

of the budget;• Their eligibility should conform to items 14, 16 and 17

of the general conditions

Exchange Rates

Where actual expenditure is incurred and paid in TRY (or any other currency other than Euro) the conversion into Euro of the real costs borne in other currencies shall be done at the rates published in InforEuro. (www.etcf.org.tr)

– Expenditures are recommended to be made in Euro to the possible extent. This minimises the risks incurred by currency fluctuations and eases financial reporting. Turkish legislation allows spending in Euro and Euro invoices. In case an invoice is prepared in Euro, the corresponding TRY value should also be indicated. Legally, accounting transactions and documents have to be in TRY. However, documents can also be prepared in foreign currency as long as the corresponding TRY value is indicated

Ineligible Costs

Examples:

• Purchase of second hand equipment

VAT exemptionVAT exemption

– VAT exemption is applicable on all eligible costs associated with grant project.

– A VAT Exemption Certificate is necessary

when making project related procurement based on the planned budget submitted as part of the grant contract.

PROJECT PROJECT DOCUMENTATION AND DOCUMENTATION AND

ACCOUNTANCYACCOUNTANCY

PROJECT DOCUMENTATION AND ACCOUNTANCY

Financial documentation

Expenditure Documents

All expenditure Proof of purchase such as invoices and receipts

Proof of payment such as bank statements, debit notices, proof of settlement by the contractor

Proof of delivery of services such as approved reports, proof of attending seminars, conferences and training courses (including relevant documentation and material obtained, list of attendees, certificates), etc

The Beneficiary Accounting records (computerised or manual) such as general ledger, sub ledgers and payroll accounts, fixed assets registers and other

relevant accounting information

Financial documentationHuman Resources Staff and payroll records/contracts, salary

statements, monthly timesheets, of all project staff

Travel Public transport: Transport tickets (including boarding passes in case of travel by air)

Rented transport: Invoice from supplier and summary list of distance covered

Car: For fuel and oil expenses, a summary list of the distance covered, the average fuel consumption of the vehicles used, fuel costs.

Financial documentationExpenditure Documents

Subcontracted supplies, services or works

Proof of procurement procedures such as tendering documents, bids from tenderers and evaluation reports

Proof of commitments such as contracts and order forms

Proof of receipt of goods such as delivery slips from suppliers

Proof of completion of works, such as acceptance certificates

Certificate of origin or a Certificate of Locally Manufactured Production with a Sworn

Statement

Technical documentation• Examples of project documents for some of the project activities.Surveys /studies • ReportsPublications • Copies of publicationsSeminars, conferences, working meetings • Programme • List of presentations / conference reports• Handouts• List of participants• List of speakers• Minutes (if applicable)• Press clippings• Feed-back questionnaires (if applicable)

• Technical documentationTraining • A detailed description of the training – training modules, training

hours per subject, methods, etc.• Training schedule• List of participants /Attendance sheets• List of trainers / lecturers• Feed-back questionnaires• Training evaluation reportExperts• Timesheets• Copies of the outputs • Activities reports

Accounting requirements Appropriate accounting and double-entry book-

keeping system Accounts and expenditure should be • easily identifiable and verifiable separate

accounts for the action • a simple accounts ledger together with

other useful templates.

Accounting requirements

The Financial Report should be properly and easily reconciled to the Grant Beneficiaries accounting and bookkeeping system.

REPORTING REQUIREMENTS

REPORTS

• Bi-monthly report• Interim narrative report.• Final narrative and financial report. • Expenditure verification report of a

European Community Financed Grant Contract (audit report).

Bİ-MONTHLY PROGRESS REPORT

Consist of 5 main sections:

• Basic contract data

• Budget achievements during reporting period

• Realisation of activities

• Procurement activities

• Needs of beneficiary

Bİ-MONTHLY PROGRESS REPORT

Submission of the bi-monthly progress report:

Until the fifth day of following month

• 1 electronic version and 1 hard copy to SU

REPORTS INTERIM AND FINAL NARRATIVE

• Narrative section: Project activities/management,

participation of partners, relations with key stakeholders, visibility, progress on performance indicators, assessment of the project and notifications about minor contract changes and addenda

• Templates for the interim and final narrative reports are

provided in www.etcf.org.tr

• You should submit the final version of the Interim

and final report(s) in 4 hard copies an 4 CD to:• 2 copies to SU• 1 copy to ECD• 1 copy for the Grant Beneficiary

• SU will send one copy of the reports to the

CFCU with a cover letter and the checklist

Submission of the interim report:

within 5 days of completion of the half of the project duration

Submission of the final report:

within 3 months of completion of the project duration

REPORTINTERIM FINANCIAL REPORT-

REQUIRED DOCUMENTS

For the interim financial report

• Accounts ledger itemising expenditures must be annexed.

REPORTS FINAL NARRATIVE REPORT-REQUIRED

DOCUMENTS

• “Beneficiary Decleration” signed by the authorised person(s) of the chamber

• Minor /major change requests and CFCU’s approval letters• Copy of the printed materials• Contracts (supply/service), invitation letters, tender offers

(applications), letters to unsuccessful tenderers, evaluation reports• Visibility material samples • “Performance Indicators Documents”• Training/conference/visit programmes, reports, participants list

(Annex3)• For the external experts -Training/conference reports, presentations,

surveys• Copy of the “transfer of title of equipments”( Ekipman Mülkiyet Devri

Belgesinin kopyası)(Before the approval of the notariate) (Annex 4)

REPORTFINAL FINANCIAL-REQUIRED

DOCUMENTS

• The bank letter indicating that no interest rate has been applied to the project account and account summary that indicates that the account covers only the project implementation period.

• “Project Expenditure Summary” and “Account Ledger” (Annex 2)

DOCUMENTS

Human Resources Expenditure List (Annex-2, work page with number 1 )

For every project expert: • Work contract or Letter of nomination by the chamber /

Copy of the Permission letter• Monthly Time sheet• CV• Payrolls• Documents explaining the cost of social security charges

and other remuneration-related costs are being retained.

DOCUMENTS

Travel and perdiems Expenditure List (Annex 2, work page with number 2)

• Transport tickets (including boarding passes in case of travel by air)

• Related with per diems: Hotel invoices or the copy of the documents that indicates the round trip dates

• The copy of the document indicating that the perdiems payments are made

DOCUMENTS

Equipment Expenditures List

(Annex2, work page with number 3)For every equipment in a separate dossier:

Invoice or the document that indicates the payment is

made to buy the equipment.

For the purchase of the equipments bigger than 5000

Euro: Certificate of the Origin

For the purchase of the equipments smaller than 5000

Euro : Contract, market survey document

DOCUMENTS

Local Office Expenditure List (Annex 2, work page with the number 4)

Copies of the invoices of vehicle costs, office rent, consumables - office supplies, other services (tel/fax, electricity/heating, maintenance), contract or payment document

DOCUMENTS Other costs, services expenditure list: (Annex 2,

work page with number 5)

Expenditures documents (invoices and an explanation letter indicating the aim of the contract) for .

Publications Surveys Audit expenditures Translation service Financial services (expenditures for the bank guarantees etc) Conference exp. Visibility activities

DOCUMENTS

Copy of Expenditure Verification Report by

Eternal Auditor

EXPENDITURE VERIFİCATION REPORT

Known as the audit report Consist of:

• TOR for an Expenditure Verification of a EC financed Grant Contract for External Actions- should be completed by the (Grant) Beneficiary and be agreed with the Auditor

Annex 1: Information about the Subject of the Expenditure Verification

Annex 2: Scope of Work – Procedures to be performed• 2. Report of Factual Findings for an Expenditure Verification of an

EC financed Grant Contract for External Actions-should be provided by the Auditor

The template can be found at www.etcf.org.tr

REPORTING REQUIREMENTS-PAYMENT PROCEDURES

• Pre-financing: %80 of the sum is paid within 45 days of receipt of the Request for Payment (by CFCU)

• Final payment: CFCU’s 45 day approval procedure of the final narrative and financial reports, Expenditure Verification Report and the Request for Payment

PROCUREMENTPROCUREMENT

• Participation in the procurement procedures is open on equal terms to all legal persons who are established in (a) a Member State of the European Community, (b) in an official candidate country as recognised by the European Community, (c) in a Member State of the European Economic Area, or (d) any country other than those referred in a), b) and c), where reciprocal access to their external assistance has been established.

The nationality of the company to which the service or the work is contracted can be certified with a certificate issued by the Chamber of Commerce in that country

PROCUREMENTSERVİCE CONTRACTS

Tender ( smaller or equal to 10.000 Euro)

Tender (between 10.000-60.000 Euro)

PROCUREMENTSERVICE CONTRACTS

Tender ( smaller or equal to 10.000 Euro)• Recommended to proceed with three

offer. • Sign a contract with very clear references

on which products you expect from the service. (template is in www.etcf.org.tr)

• Define at which time the service will be delivered and who will be the supervisor inside your organization accepting the quality of the services and authorizing the payments.

PROCUREMENT SUPPLY CONTRACTS

Tender smaller than 10.000 Euro

Proceed with three offer.

Use a simple contract (template is in www.etcf.org.tr)

PROCUREMENTSUPPLY CONTRACTS

TECHNICAL SPECIFICATIONS AND REQUIREMENTS• Contract Name: _________________• Contract no.: _________________• Name of Item: _________________• Quantity: • TECHNICAL DETAİLS• General Description• Technical Specifications• 3. Accessories and Attachments• 4. Tools or Other Required Items• 5. Maintenance Requirements• 6. Spare Parts Required• 7. Manuals• 8. Required Performance• 9. Warranty Specifications

Procurement Plan by GBsProcurement Plan by GBsContract Number: Name of the tender 1

Dates for Tender 1

Name of the tender 2

Dates for Tender 2

Preparation of tender dossier

Expected date for sending the tender dossier to the SU for checking

Publication of forecast (if applicable)

Publication of procurement notice

Submission deadline

Opening session and Evaluation

Expected date for sending the Evaluation Report to the SU for checking

Contract signature

Expected delivery date

Provisional acceptance date

PROCUREMENTPLAN BY GBs

Submission of procurement plan:

within 2 months of the project start

(31.01.2009)

2 hard copy to SU

PROCUREMENT VISIBILITY

Reports should contain the disclaimer:

“The content of this publication is the sole responsibility of (name of author/contractor/contracting authority) and can in no way be taken to reflect the views of the EU”

Bu belgenin içeriğinden sadece “Faydalanıcının Adı” sorumludur ve bu içerik herhangi bir şekilde Avrupa Birliği’nin görüş ve tutumunu yansıtmaz”

Broşür örnek

PROCUREMENTDISPLAY PANNEL

This project is funded by EU This project is funded by EU

TITLE OF THE PROJECTTITLE OF THE PROJECT

Turkish Chambers Logo EU Chambers Logo

This project is implemented by Turkish chambers (name) and EU Chambers namesContracting Authority

The programme is implemented under the coordination of TOBB and EUROCHAMBRES

MONITORING MONITORING AND SUPPORT AND SUPPORT

ACTIVITIESACTIVITIES

MONITORING MONITORING FRAMEWORKFRAMEWORK

In Procedures,• Compliance with procurement rules• Eligibility of costs• Compliance with publicity and visibility rules• Documentation and Archiving• Bookkeeping and Accountancy• Reporting obligations• Contract Modifications• Non-Compliances and IrregularitiesIn Progress,• Financial and Technical progress • Performance indicatorsand Problems And Needs of the beneficiaries

MONITORING MONITORING FRAMEWORKFRAMEWORK

Monitoring tools: Monitoring visits, bi-monthly declaration reports and interim and final reports.

Monitoring visits will be conducted by SU using checklists, monitoring reports etc.

SU experts will review and give advice on draft notification letters, addendum requests, interim and final reports.

Monitoring and/or Spot visits by CFCU

MONITORINGMONITORINGRESPONSİBİLİTİES OF GBs

To make key staff of project be present.To provide up-to-date informationTo define performance indicatorsTo define needsTo clarify major dates in procurementTo inform SU in case of unavailabilityTo review and sign the visit report (regular monitoring

visits)To archive all documents for 7 years

MONITORINGMONITORING

The following information will be monitored by SU

• Project Management

• Adequacy of Documentation

• Progress of Activities

• Risks and Problems

• Project Indicators

• Procurement Matters and Records

• Visibility of the Project

MONITORINGMONITORINGMONİTORİNG TIME TABLE

Monitoring Timing

Risk AssesmentVisit

15 January-5 February

2nd Monitoring Visit After half of the project duration

3nd Monitoring Visit Before the end of the project duration

Thank you for your kind attention....

Burcu Atılganburcu@tobb.org.trTel:03124138233

EU-TURKEY CHAMBER FORUM PROJECT (ETCF) ETCF is funded by the European Union. 1 EU-TURKEY CHAMBER FORUM EU TURKEY CHAMBERS PARTNERSHİP GRANT SCHEME PROJECT.

project management activities

project cost management

project management iv

project management vi

project indicators

project roles

project member

project managers

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