Manual for grant implementation

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The Grant Implementation Manual is an unofficial document which does not in any way replace the obligations
set out in the Special and General Conditions of the Grant Contract. The contents of this document are the sole
responsibility of Eptise Servicios de Ingenieria and can under no circumstances be regarded as reflecting the
position of the European Union
Grant Implementation
Manual for Beneficiaries

Implementation Manual for Beneficiaries
Strengthening Media Freedom, EuropeAid/134421/L/ACT/RS
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Table of contents
1. INTRODUCTION ....................................................................................................................................... 3
1.1 Scope....................................................................................................................................................... 3
1.2 Legal Basis............................................................................................................................................... 3
1.3 Project Information.................................................................................................................................. 3
1.4 Institutional Framework .......................................................................................................................... 4
1.4.1 Bodies Involved......................................................................................................................................4
2. GRANT CONTRACT BETWEEN THE DELEGATION AND BENEFICIARY(IES)...................................................6
2.1 Project Team................................................................................................................................. 6
2.2 Characteristics and General Principles of the Standard Grant Contract.................................................... 6
2.3 Major Parts of the Grant Contract ........................................................................................................... 7
2.4. Partnership Agreement …………………………………………………………………………………………………………………………. 7
2.5 Modifying Grant Contracts ...................................................................................................................... 8
2.5.1 Notifications to Contract: Minor Modifications................................................................................8
2.5.2 Addendum: Major Changes............................................................................................................11
2.5.3 Preparing an Addendum.................................................................................................................11
2.6. Project Finances..................................................................................................................................... 13
2.6.1 Grant Payment ...............................................................................................................................13
2.6.2 Eligible Costs...................................................................................................................................13
2.6.3 Exchange Rate................................................................................................................................17
2.6.4 Value Added Tax.............................................................................................................................17
2.7. Project documentation and accountancy............................................................................................. 200
2.7.1 Importance of Record Keeping…………............................................................................................22
2.7.2 Technical Documentation...............................................................................................................23
2.8. Reporting requirements......................................................................................................................... 24
2.8.1 Final Report ....................................................................................................................................24
3. SECONDARY PROCUREMENT........................................................................................................... ...........26
3.1 Procurement Plan and Types of Procurement ........................................................................................ 26
3.2. Procurement Procedure........................................................................................................... 28
3.2.1 Single Tender..................................................................................................................................29
3.2.2 Negotiated Procedure without Publication ....................................................................................29
3.2.3 Rule of Origin..................................................................................................................................31
3.2.4. Nationality Rule..............................................................................................................................31
4.MONITORING AND SUPPORT ACTIVITIES..................................................................................................... 32
4.1. Monitoring framework............................................................................................................ 32
4.1.1. Internal Monitoring.......................................................................................................................32
4.1.2. External Monitoring .......................................................................................................................33
5. VISIBILTY PROCEDURES.......................................................................................................................... 33
6. EXPENDITURE VERIFICATION …………..……........................................................................................ ……35
7. TERMINATION OF CONTRACT............................................................................................................... 35
8. WEBSITES............................................................................................................................................... 36

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This Manual is an unofficial document and provides information on implementation
modalities and procedures related to project management, procurement, payments,
reporting and visibility. It does not in any way replace the obligations set out in the
Specific and General Conditions of the Grant Contract.
In case of discrepancy between this document and the Special and General Conditions of
the Grant Contract, the latter prevail.
1. INTRODUCTION
1.1. Scope
The purpose of this Manual is to provide all Grant Beneficiaries with information necessary
to undertake a grant procedure from the very first steps to the award of contracts. In other
words, this document also provides information on how to manage the Grant Contract,
signed between the EU Delegation and the Coordinator, from the award of the contract until
the final report and payment.
1.2. Legal Basis
1. This Manual has been prepared by considering the relevant provisions of the “Practical
Guide to contract procedures for European Union external actions (EU PRAG), 2013”. The full
version of EU PRAG (including relevant annexes to PRAG) can be found on the webpage:
http://ec.europa.eu/europeaid/prag/document.do
2. Council Regulation (EC) No 1085/2006 of 17 July 2006 establishing an Instrument for Pre-
Accession Assistance (IPA);
3. Commission Regulation (EC) No 718/2007 of 12 June 2007 implementing Council
Regulation (EC) No 1085/2006 2006 establishing an Instrument for Pre-Accession Assistance
(IPA);
4. Framework Agreement for Financial Cooperation between the EU and the Republic of
Serbia.
5. Financing Agreement for the National IPA 2012 programme between the EU and the
Republic of Serbia, as of 20 December 2012.
6. Strenthening Media Freedom Call for Proposals, EuropeAid/134421/L/ACT/RS
1.3. Project Information
“Strengthening Media Freedom” is a two-year EU funded project, managed by the EU
Delegation to Serbia and implemented by Eptise Servicios de Ingenieria, in cooperation with
Eptisa Regional Office for SEE, Media Diversity Institute and Samardžić and Živković law
office. The project is financed under IPA 2012 programme and will be implemented
throughout 2014 and 2015.
The project aims at enforcing the freedom of expression, democratisation of media and
application of EU standards in the media field. The project will concentrate on aligning
national media legislation with EU Directives and standards. In addition, the project
objectives will be achieved through a grant scheme that will support independence and
increase professionalism of journalists and other media professionals, and will be geared

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towards enhancing investigative reporting through support of quality media productions in
Serbia on various themes in the area of rule of law: Independence, transparency and
efficiency in administration of justice and work of the judiciary; Law enforcement and fight
against all forms of crime, including organised crime and cross-border crime; Border
management; Support for refugees, IDPs and asylum seekers; Fight against corruption,
abuse of position and office; Protection of media freedoms; Reconciliation, regional
cooperation and good neighbouring relations in the area of rule of law; War crimes
investigations and trials.
The overall indicative amount made available under this Call is EUR 1.800.000. Grants
awarded under this project to print, broadcast, on-line media, as well as production houses,
news agencies and media associations, are between 50.000 and 150.000 EUR with a
maximum duration of 18 months.
1.4. Institutional Framework
1.4.1. Bodies Involved
The Delegation of the European Union to the Republic of Serbia: The Contracting
Authority for the Grant Contract with the Coordinator (Grant Beneficiary) is the EU
Delegation. It is responsible for the management of the project - administrative and financial
implementation of the grant scheme, and has the ultimate responsibility for the correct use
of grant funds. The EU Delegation approves all project documents (final reports, requests for
addendum) and signs Grant Contracts and Addenda. It also makes payments as required in
contracts after approval of relevant reports, and oversights the work of Eptisa.
Ministry of Culture and Information, Government of the Republic of Serbia: The
Ministry's representative will sit on the project’s supervisory body – the Project Steering
Committee, whose role is to steer and monitor project implementation and undertake
remedial actions for problems that may arise.
Eptisa: Eptisa is responsible for the implementation of the "Strengthening Media
Freedom" project on a daily basis, regular provision of technical assistance to grant
beneficiaries, information dissemination and support to beneficiaries, monitoring and
evaluation of the projects and making on-the-spot checks on the projects. Eptise Servicios de
Ingenieria, leading a four-member consortium consisting of Eptisa Southeast Europe d.o.o.,
Media Diversity Institute and Živković and Samardžić law office, has been awarded a service
contract to provide technical support to the EU Delegation to Serbia in the implementation
of the project. Eptisa reports to the EU Delegation.
Coordinator: Coordinator implements the supported projects and is directly
responsible for the preparation and management of the action. It is responsible for the
project implementation as set out in Annex I to the Grant Contract. Coordinator and co-
applicant(s) are collectively referred to as Beneficiary(ies). Beneficiary(ies) are responsible
for procurement and are obliged to use procedures and documents complying EU PRAG
rules in all procurement procedures (rules set out in Annex IV to the Contract). Coordinator
provides narrative and financial reports, requests necessary payments, and is ultimately
responsible for project finances and records. The correspondence and view exchanges with
third parties regarding contract implementation are the responsibility of Beneficiary(ies)
and will not be binding to the Contracting Authority.

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"Strenthening Media Freedom" project team acts as principal contact point for the grant
beneficiaries during the implementation of their projects.
Any communication relating to the project implementation, including narrative and
financial reports, requests for payment, notification letters, procurement documentation
and other relevant documents, must be in writing and should be sent to the "Strenthening
Media Freedom" project team office. All project documents must be prepared in the
language of the Grant Contract – English language.
Contact:
"Strengthening Media Freedom" project
Vlajkovićeva 3, II fl, office no. 95, 11 000 Belgrade
Tel. + 381 11 303 2222
Fax: + 381 11 292 2856
Attn: Ms. Sibina Golubovic, Grant manager, sgolubovic@eptisa.com
Cc. Mr. Sandor Organ, Team leader, sorban@eptisa.com
2. GRANT CONTRACT BETWEEN THE EU DELEGATION AND
BENEFICIARY(IES)
2.1. Project Team
In order to be able to run the project efficiently, the Beneficiary(ies) are responsible for
setting up an efficient and reliable management and coordination system handling the
administration of the project. Project coordination includes both issues related to the
thematic activities of the project, as well as the purely administrative and financial
management of the project and its accounts.
Two positions that are crucial throughout the project period: project manager and financial
officer.
Project manager - responsible for the overall organisation of the operation’s work. This
includes management of various components of the operation that ensures all procedures
are observed, including preparation of all reports, implementation of visibility procedures,
etc.
Financial officer - responsible for the accounts, financial reporting, the internal handling of
the funds, as well as update financial records and accompanying documentation. The
financial officer should work in close contact with the project manager/coordinator in order
to enable efficient overall financial management of the operation.
2.2. Characteristics and General Principles of the Grant Contract
The grant contract between your organisation and the EU Delegation is the main document
that defines responsibilities of different parties, reporting, eligibility of costs, accounting,
payments, etc. After signing the contract with the EU Delegation, the Coordinator takes the

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responsibility for the entire project and ensures proper communication with and among co-
applicant(s) and affiliates.
2.3. Major Parts of the Grant Contract
The Grant Contract has several Annexes, which are compulsory and may not be changed
without a written agreement from the EU Delegation.
• The Special Conditions (Grant Contract): It specifies the project duration, total
project cost and the grant amount, as well as reporting and payment schedule.
• Annex I to Grant Contract: “Description of the action” contains the description of
your project. By signing the contract you commit yourself to implement all activities
described in Annex I and to deliver the stated outputs and results.
• Annex II to Grant Contract: “General Conditions” specify the general obligations and
financial provisions under the contract. This Annex describes all your obligations on
reporting, provision of information, visibility, accounts and technical and financial
checks.
• Annex III of Grant Contract: “Budget for the action” includes the breakdown of
project costs, as well as expected sources of funding.
• Annex IV of Grant Contract: “Contract Award Procedures” describes the procedures
that you have to follow in case of awarding contracts for services, supplies and
works to external organisations.
• Annex V of Grant Contract: Request for Payment is a standard template that you
have to use when applying to the Delegation for payment request of the further
advance and/or balance. It also contains a financial identification form
• Annex VI of Grant Contract: Final Narrative and Financial Reports templates.
• Annex IX to Grant Contract: Standard template for Transfer of Asset Ownership.
2.4. Partnership Agreement
Partnership Agreement establishes the legal base between the Coordinator and co-
applicant/affiliate(s) (parties). This contractual arrangement provides an overview of the
parties’ roles in the project, activities to be fulfilled, timeframe of the activities, and
relationship between the parties, as well as the procedure used in case of disputes.
The Partnership Agreement in general lays down provisions regarding:
• The Project Parties’ responsibilities and contributions to the project;
• The requirements, both internal and external, related to the reporting;
• The provisions for ensuring sound financial management, including
accounting and documentation obligations;
• Provisions and deadlines for transferring funds by the Coordinator to other
Agreement parties;
• Provisions for retaining documents required for an adequate audit trail;
• Internal arrangements for recovering amounts unduly paid;

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Any modifications of the activities and expected results stated in Annex I should be
communicated in writing in the notification letters. Significant modifications of
activities will need an Addendum to the contract.
If you plan to make minor or major change in your contract, it is strongly
recommended to consult "Strenthening Media Freedom" project team before
submitting your request.
• The ownership of project results (provisions regarding the intellectual property
rights, and regarding dissemination rights);
• Applicable law, place of jurisdiction, procedures for litigation.
2.5. Modifying grant contracts
Grant Beneficiaries should try to implement the project as originally planned. Nevertheless,
situations may arise where there is a need to make some changes in the activities or budget.
In such situations, they will have to apply for an amendment to the contract.
The procedures for amendment of the grant contract are divided into two groups depending
on the type of change that should be made (General Conditions, Article 9). Minor changes in
the contract must be communicated to the EU Delegation in writing through Notification
letters pending the EU Delegation's approval. Major modifications in the contract require a
formal Addendum to the contract to be signed by the EU Delegation and Coordinator before
their implementation. In case of major modifications of the Contract, an Addendum should
be prepared before making the change.
The following general principles must always apply:
For the acceptance of the Coordinator's request for grant contract modifications,
the Coordinator must substantiate its request to the EU Delegation. The EU
Delegation examines the reasons given, and rejects requests which have little or
no substantiation.
The modifications must not have the purpose or effect of making such changes to
the contract in a way that would alter the objectives of the project or be contrary
to the equal treatment of applicants.
Grant contracts can only be modified within the lifetime of the contract;
modifications cannot be made retroactively.
The maximum amount of the grant may not be increased.
Requests for contract modifications to grant contracts must allow an adequate
time-limit (minimum 30 days) for the addendum to be signed before the
modifications are intended to enter into force. However, for the modification
extending the performance period of the contract or budget variations of more
than 25% between main budget headings requests should be filed ideally two
months before the end of the project.
2.5.1. Notifications to Contract: Minor Modifications
Minor modifications, and not a formal Addendum include:

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It is strongly recommended to consult with "Strenthening Media Freedom"
project team before submitting your request officially.
Minor changes in activities with no budgetary implications,
Budget modifications that do not affect the basic purpose of the project; and the
financial impact is limited to a between items within the same main budget heading
including cancellation or introduction of an item, or a transfer between main
budget headings involving a variation of 25% or less of the amount originally
entered in relation to each concerned main heading for eligible costs (not
applicable to indirect costs, for the contingency reserve, for in-kind contributions or
the amounts or rates of simplified cost options).
Change of address or phone number,
Change of bank account,
Change of key-experts such as project manager, editors in chief, trainers, etc.,
Increase or decrease in numbers of equipment or unit prices without changes of
the budget amount allocated for that budget item
Even in the event of minor contract changes, Coordinator must notify the EU
Delegation in writing and receive a written consent to apply them.
Changes How to notify-Documentation Deadline
Small change of activities with no
budgetary or contract duration
implications
Notification
Three weeks prior
to the changes
taking effect
Small changes of activities with
budgetary implications (variation
of 25% or less, inc. cancellation or
introduction of an item)
Notification.
Modified budget proposal
including original budget and
proposed reallocation
(modified budget in excel).
Three weeks prior
to the changes
taking effect
Increase of approved unit rates or
number of an item.
Notification
Document proving that the
new requested rates does not
exceed normal market rates.
Three weeks prior
to the changes
taking effect
Changes of address Notification
Copy from the Business
Registry Agency (APR)
Immediately after
the change occurs
Changes of bank account Notification
New Financial Identification
Immediately after
the change occurs

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Note for Budget variations of 25% and less:
The 25% rule can be applied only once on the same budget heading
A prior written approval by EU Delegation is requested
The 25% rule cannot be applied to administrative costs or contingency
reserve
Form
Change of key persons – project
manager
Notification Immediately after
the change occurs
This is an example of a minor budget reallocation:
Annex B. Budget for
the Action ORIGINAL BUDGET MODIFIED BUDGET
REALLOCATION
Expenses Unit
# of
units
Unit
rate
EUR
Costs
EUR
Unit # of
units
Unit
rate
in
EUR
Costs
EUR
EUR %
4. Local office/Action
costs
4.1 Vehicle costs
Per
month 0
Per
month 0
4.2 Office rent
Per
month 0
Per
month 0
4.3 Consumables -
office supplies
Per
month 10 100 1000
Per
month 11 100 1100
+100 3,77
4.4 Other services
(tel/fax,
electricity/heating,
maintenance)
Per
month 11 150 1650
Per
month 11 150 1650
Subtotal Local
office/Action costs 2650 2750
+100 3,77
5. Other costs,
services9
5.1 Publications
Per
copy 2000 1 2000
Per
copy 2100 1 2100
+100 0,72
5.2 Studies, research)
Per
Study 2 2000 4000
Per
Study 2 2000 4000
5.3 TV production
Per
epsiod
e 2 1600 3200
Per
epsiode 2 1500 3000
-200 1,44
5.4 Final evaluation
Per
report 1 1200 1200
Per
report 1 1200 1200
5.5 Translation,
interpreters
Per
day 35 80 2800 Per day 26 80 2100
-700 5,04
5.7 Costs of
conferences/seminar
Per
Event 1 700 700
Per
Event 2 700 1400
+700 5,04

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The request for Addendum should contain a detailed description of the requested
modification and the reason for modifications. The request must be properly
substantiated. The Delegation examines the requests and rejects the ones which
have little or no substantiation.
Grantees are strongly advised to avoid making changes that require an Addendum.
The addendum procedure takes minimum 30 days, so Coordinators are advised to
seek an Addendum only if absolutely necessary. The changes come into the force
only after the signature of the Addendum by both parties.
2.5.2. Addendum: Major Changes
Major modifications that require a formal Addendum are as follows:
Extension or early closing of the Contract,
Significant changes in activities that effect the basic purpose of the project as long as
the proposed changes do not question the grant award decision and are not
contrary to the equal treatment of applicants,
Transfers amongst budget headings; involve a variation of more than 25% of the
amount originally entered under each relevant heading for eligible costs,
Change of Co-applicant or affiliates,
Changes in your organisation’s name or legal status,
Change of authorised person(s).
2.5.3. Preparing an Addendum
The procedure for application and signature of the Addendum is as follows:
Prepare a request for Addendum, following the template letter (available on CD) in English.
Prior to submitting a request for an Addendum, you should contact "Strengthening Media
Freedom" project team office for additional consultations. A copy of request will be retained
by Coordinator. Requests are sent to "Strengthening Media Freedom" project team first,
which will forward the documents to the EU Delegation for approval.
s
10
5.8 Visibility actions
Subtotal Other costs,
services 13900 13800
-100 0,61
TOTAL 16550 16550 0 0

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The addendum takes effect on the date of the later signature. Remember that
Coordinator cannot implement the change before the signature of the Addendum.
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.
Changes How to notify
Documentation to be
submitted
Deadlines
Extension or early closing of the
Contract
Notification
Minimum 30 days
prior to the
changes taking
effect
Significant changes in activities
that effect the basic purpose of
the project as long as the
proposed changes do not question
the grant award decision and are
not contrary to the equal
treatment of applicants.
Notification.
Transfers among budget headings
involving a variation of more than
25% of the amount originally
entered under each relevant
heading for eligible costs.
Notification
(modified budget in excel).
Change of Co-applicant or
affiliates
Notification
Changes in your organisation’s
name or legal status
Notification
New Legal Entity Form (LEF)
Form (FIF)
Change of authorised person(s). Notification

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When managing awarded funds, project managers and financial officers should be aware
of:
Eligibility of costs and approved budget
VAT exemption – when planning, final costs of VAT exempted expenditures
Form (FIF)
Note: Bring a new OP form
(authorized persons) to the
Tax administration
2.6. Project Finances
It is Coordinator's responsibility to ensure that project funds are spent in a timely manner
and in compliance with the EU regulations and with local procedures.
Accounts and expenditure relating to the project implementation must be easily identifiable
and verifiable. In accordance with article 16.1 of the General Conditions, this can be done by
ensuring that expenditure for the action concerned can be easily identified and traced to and
within the beneficiary’s accounting and bookkeeping systems.
2.6.1. Grant Payment
The Contracting Authority will pay the grant to the Coordinator, in accordance with Article
15 of the General Conditions, following one of the payment procedures below, as set out in
Article 4 of the Special Conditions.
Option 1: Actions with an implementation period of 12 months or less or grant of EUR 100,
000 or less
(i) an initial pre-financing payment of 80 % of the maximum amount referred to in Article 3.2
of the Special Conditions (excluding contingencies); and,
(ii) the balance of the final amount of the grant.
Option 2: Actions with an implementation period of more than 12 months and grant of more
than EUR 100,000:
(i) an initial pre-financing payment of 100 % of the part of the estimated budget financed by
the EU Delegation for the first reporting period (excluding contingencies). The part of the
budget financed by the EU Delegation is calculated by applying the percentage set out in
Article 3.2 of the Special Conditions;
(ii) further pre-financing payments of 100 % of the part of the estimated budget financed by
the EU Delegation for the following reporting period (excluding not authorised
contingencies);
Within 60 days following the end of the reporting period, the Coordinator shall present an
interim report. If at the end of the reporting period the part of the expenditure actually

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As the payment will be made after ALL the project activities have been completed,
expenditures paid for and Final Report submitted, the Coordinator will need to pre-
finance these payments and be able to fund them until the final payment is made.
incurred which is financed by the Contracting Authority is less than 70 % of the previous
payment (and 100 % of any previous payments), the further pre-financing payment shall be
reduced by the amount corresponding to the difference between the 70 % of the previous
pre-financing payment and the part of the expenditure actually incurred which is financed by
the EU Delegation. The Coordinator may submit a request for further pre-financing payment
before the end of the reporting period, when the part of the expenditure actually incurred
which is financed by the Contracting Authority is more than 70 % of the previous payment
(and 100 % of any previous payments). The total sum of pre-financing payments may not
exceed 90 % of the amount referred to in Article 3.2 of the Special Conditions, excluding not
authorised contingencies;
Further pre-financing payments shall be made within 60 days of receipt of the payment
request by the Contracting Authority.
(iii) the balance of the final amount of the grant.
Payments of the balance shall be made within 90 days of receipt of the payment request by
the Contracting Authority.
IMPORTANT NOTE!
The EU Delegation undertakes to finance a specific percentage of the total eligible costs
rather than a particular part of the action. If at the end of the action, the actual eligible cost
is lower than anticipated, the grant will be reduced proportionately.
Remember:
The EU Delegation may suspend the time-limit for approval of a report by notifying the
Coordinator that the report cannot be approved in case that the EU Delegation finds it
necessary to carry out additional checks. In such cases, the EU Delegation may request a
clarification or additional information, which must be produced within 30 days of the
request. The time-limit starts running again on the date the required information is
received.
2.6.2. Eligible Costs
In reviewing final reports, EU the Delegation determines exactly which costs are eligible for
payments. Ineligible costs will result in a lower payment than Coordinator may have
expected in the budget. It should also be noted that the Delegation does not pay more than
a stipulated proportion of your total eligible costs (see Article 3.2 Special Conditions). In
other words, if total spending on the project falls below what was estimated at the outset,
grant amount is to be scaled down proportionally.
Article 14.1 of the General Conditions defines general principles for eligibility of costs. The
main provisions for eligibility of cost are as follows:
• Costs have to be included in the project budget (Annex III of the Contract),
• Costs must be necessary for carrying out the Project, i.e. approved and presented in
the Annex III of the Contract or reallocations presented in a Notification letter.

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• Costs must be incurred during the project implementation period, as defined in the
Contract signed with the EU Delegation (irrespective of the time of actual payments).
Any expenditure made prior to signing of the Grant Contract or any financial obligation
taken after the Contract expiry date will not be considered as an eligible cost.
• Cost must be recorded in the accounts or tax documents of the Beneficiary(ies) and be
identifiable, verifiable and backed by originals of supporting evidence,
• All costs must be real costs, i.e. actually incurred by the Beneficiary(ies).
Beneficiary(ies) should be aware that:
• Any expenditure for activities not specifically mentioned in the Contract or any
subsequent agreed changes will be ineligible.
A distinction is made between:
o Eligible direct costs
o Eligible indirect costs
Budget heading Eligible direct costs
1. Human
Resources
The amounts budgeted under this budget heading may be used for
payment of salaries and fees for staff contracted by the
Beneficiary(ies) – Coordinator, Co-applicant(s) and affiliate(s).
The cost of staff assigned must include actual salaries plus social
security charges and other remuneration-related costs. Salaries and
costs must not exceed those normally borne by the Beneficiary(ies).
Per diems are allowed only for staff assigned to the project as long as
they are envisaged in the project budget. 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 maximum daily rates
(http://ec.europa.eu/europeaid/work/procedures/implementation/p
er_diems/index_en.htm). Per diems are calculated on overnight basis.
2. Travel
From the international travel sub-heading may be covered transport
expenditure of experts who travel abroad for the needs of the
project.
From the local transportation subheading may be covered intercity
transport expenditures within Serbia.
3. Equipment and
supplies
The purchase cost of equipment and supplies are eligible provided
they are included in the budget and correspond to market rates. The
Beneficiary(ies) is obliged to obtain value for money, and to use the
tendering procedures described in Annex IV of the Contract. For
tendering procedures please see relevant procurement and tender
dossiers at :
http://ec.europa.eu/europeaid/prag/annexes.do?group=B for
Services, and
http://ec.europa.eu/europeaid/prag/annexes.do?group=C for
Supplies.

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Budget heading Eligible direct costs
4. Local office /
project costs
These costs are budgeted under Administrative costs – budget item
10 (Indirect costs). They are eligible under this heading only if a new
project office is established.
5. Other costs,
services
Amounts budgeted under headings 5 & 6 may be used to cover costs
for the items specified in the budget and fully sub-contracted
services. Those are costs paid on the basis of service contracts and
against invoices to external service providers who are sub-contracted
to carry out certain tasks of the operation (e.g. studies and surveys,
translation, publications, translation, events, etc.). Promotional costs
shall be paid on the basis of the contracts with and invoices from the
service providers. Procurement rules must be observed in selecting a
company or individual to provide external expertise, or carry out the
assignment.
6. Other
Budget heading Eligible indirect costs
8. Contingency
reserve
(Not exceeding 5 % of the direct eligible costs). It can be used only
with the prior written authorisation of the EU Delegation (Article
14.6. of the General Conditions).
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(ies) (max 7%). The costs are eligible
provided that:
1. They do not exceed the rate stated in the budget;
2. They do not include costs assigned to another heading of the
budget;
3. Their eligibility should conform to items 14, 16 and 17 of the
General Conditions.
There are some costs which are ineligible under this grant scheme. These are:
• taxes, including value added taxes1
;
• customs and import duties, or any other charges;
• purchase, rent or leasing of land and existing buildings;
• fines, financial penalties and expenses of litigation;
• operating costs;
• second-hand equipment;
• bank charges, costs of guarantees and similar charges;
• conversion costs, charges and exchange losses associated with any of the
component specific euro accounts, as well as other purely financial expenses;
• contribution in kind;
• any leasing costs;
1
VAT might be considered as eligible expense if following conditions are met: a) the value added taxes
are not recoverable by any means; b) it is established that they are borne by the final beneficiary, and c) they are
clearly identified in the project proposal

17
• depreciation costs;
• 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 Union (including through EDF) grant;
• credits to third parties.
• costs of preparatory studies or other preparatory activities.
Example:
Budget
EUR %
Reported expenses
at the end of
implementation
Total Cost 118,000 EUR 90,000.00
EU grant amount 100,000 EUR 84.7% 76,271.19
Co-finansing 18,000 EUR 15.3% 13,728.81
Pre-financing 80,000.00
Reported expenses 76,271.19
Recovery order 3,728.81
Example:
A- Total eligible cost: €118,000.00
B- EU grant (84.7%): €100,000.00
C- Pre-financing: € 80,000,00
D – Reported expenses € 90,000,00
F- Reported expenses D*84,7% - € 76,271.19
Recovery order (C-F): €3,728.81
2.6.3. Exchange Rates
The EU Delegation shall make payments to the Coordinator to the bank account referred to
in the financial identification form in Annex V. The EU Delegation shall make payments in
euro. Reports shall be submitted in the currency set out in the Special Conditions, and may
be drawn from financial statements denominated in other currencies, on the basis of the
Beneficiary(ies)'s applicable legislation and applicable accounting standards. In such case and
for the purpose of reporting, conversion into EUR shall be made using the National Bank of
Serbia's middle exchange rate at the day when the EU Delegation 's contribution was
recorded in the Beneficiary(ies)'s accounts. Costs incurred in other currencies than the one
used in the Beneficiary(ies)'s accounts shall be converted using the monthly Inforeuro on the
date of payment. These rates referred to on the InforEuro rates can be found on the
following web address:
http://ec.europa.eu/budget/contracts_grants/info_contracts/inforeuro/inforeuro_en.cfm

18

19
Value Added Tax (VAT) represents a non-eligible cost that cannot be covered from the
grant.
VAT exemption can be obtained only for goods / services financed from the grant (not
from own resources).
VAT exemption can be obtained only for services that have not started and / or goods
that are not delivered.
Pro-forma invoices and invoices are issued in RSD
Payments like telephone bills and utilities cannot be VAT exempted.
2.6.4. Value Added Tax (VAT)
In accordance with the Framework Agreement for Financial Cooperation between the EU
and the Republic of Serbia, and Financing Agreement for the National IPA 2012 programme
between the EU and the Republic of Serbia, as of 20 December 2012, all projects funded by
the EU are VAT exempted (Article 24.16в) of the VAT Act of the Republic of Serbia.
Please note that only those items listed in the approved budgets may be VAT exempted.
Goods and services that are not included in the approved budget will not be eligible for a
VAT exemption.
For each payment / VAT exemption request, regardless whether you are buying goods or
services, you will need to follow this procedure:
(1) Obtain a copy of pro-forma invoice (pred-racun) from a supplier listing the procured
goods or services, including amount without VAT, the VAT and the full amount
including the VAT.
(2) Fill-in the VAT exemption form (Obrazac PPO-PDV), with the unique PIB number,
stamp and signature
(3) Send three signed originals of the VAT exemption form and pro-forma invoice to the
Tax Department.
(4) You should deliver 1 original to the supplier and keep the other in your financial
files.
(5) The supplier will provide you with the invoice (racun) where the price without VAT
will be shown, with a remark stating that these goods are free of VAT according to
the number (Broj overe) of the Obrazac PPO-PDV obtained by the Tax Department.
Please see attached a sample of PPO form on CD.
When going to the Tax Administration for the first time, bring a copy of the Grant Contract
(Special Conditions), a specimen of signature of authorized person (OP obrazac) and a Note
specifying the names of persons authorized to sign the PPO forms for the project in
question.

20
2.7. Project Documentation and Accountancy
You, Co-applicant and affiliates (if applicable), must retain original supporting documents for
all expenditures incurred and must keep accurate and regular records and accounts on the
project implementation, using a dedicated double-entry book-keeping system (see Article
16.1 of the General Conditions of your contract).
To be considered eligible for EU financing, expenses must have actually been incurred during
the implementation of the project and be identifiable and verifiable – this means they must
be recorded in the accounts and backed by originals of supporting evidence – see Articles
16.7, 16.8 i 16.9. of the General Conditions.
The accounting system must identify:
the sources of income for the project (EU contribution and other contributions),
all expenses incurred during the contract period.
Besides standard local book-keeping system, for final project reports all expenditures must
be presented in the form of templates provided in the Annex VI of the Contract. In addition
to Annex VI, a more detailed list of all expenditures indicating period, title, amount, relevant
heading, has to be annexed to the report (General Conditions, Article 2.1.).
In line with the donor requirements, please find below two sample templates to be used for
expenditures tracking. You will have to attach these tables to the final project report.
A. Template 1: Income and Expenditure Sheet
This table should include a list of all incomes and expenditures made during the life-time of
the project.
Each new line starts with the date (taken from bank statement), than information on the
budget heading and line; short description of expenditure (for example, round trip Belgrade
– Novi Sad), currency (RSD for all payments made in the country or EUR in case of costs for
international travels to EU countries). In the income column you should present EU
contribution and own contribution. The expenditure column should include all expenditures
on the project, including EU and own contribution.
Based on the overall income and expenditure sheet you will also prepare individual sheets
per budget line (1.1.1, 1.1.2, etc.).
It is recommended to update both templates A and B regularly on a monthly basis, and use
the financial report format also as a budget control sheet. By inserting the financial data
from templates A and B into the financial report format, you will have a monthly overview
on how much funds you’ve spent so far. This should provide you with sufficient information
on the remaining funds and, in case that portion of funds remains unspent, allow you to
prepare a realistic budget reallocation request.

21
Template A: BALANCE (INCOME AND EXPENDITURE) SHEET
DATE
BUDGET
HEADING
BUDGET
ITEM/
Description INCOME EUR)
EXPENDITUR
ES (RSD)
Exchange
rate
EUR/RSD
EXPENDITURE
S (EUR)
EXPENDITU
RES (Other
currency)
TOTAL EUR
BALANCE
REMAININGGRANT
LINE

22
Template 2: Balance per budget line
Budget Heading 1.
Budget line XXXX.
DATE
BUDGET
ITEM
Description
EXPENDITURE
S (RSD)
Exchange rate
EUR/RSD
EXPENDITURE
S (EUR)
EXPENDITURES
(Other currency)
TOTAL EUR
BALANCE REMAINING
(per budget item)

22
2.7.1. Importance of Record Keeping
The record keeping procedure is important for several reasons:
Helps you keep track of the types of eligible expenses incurred by your project and their rate of
occurrence. In addition, you will know how much money remains unspent within the budget
categories.
Serves as confirmation that the costs have occurred during the Contract implementation period.
The records are the basis for the financial section of the project report you have to complete;
Expenditure incurred during the project is only eligible for EU financing if there are supporting
documents that provide evidence of the expenses,
The record of expenditure for the project will be scrutinised during expenditure verification of
the project.
A lack of supporting evidence could result in reducing the total eligible cost of the project, and
therefore reduce the EU co-financing.
Remember:
The EC and the Court of Auditors have the right to perform record-based and on-the-spot
inspections to verify expenditure and the use made of the EU grant (as provided for in Article
16.3. of the General Conditions). Checks may be made at any time during the project’s
implementation, or up to seven years after the final payment.
All payments have to be supported by accounting documents or documents of an equivalent
probative value.
You should instruct co-applicant(s) to keep all relevant documents, as they are subject to the same
conditions as you.
Recommended: Apart from originals kept in your finance department, you should keep copies of
all expenditures in a separate project file. This will make report preparation easier.
The table below summarizes the main supporting documents that the Coordinator should retain
and present for expenditure verification.
Expenditure Documents
All expenditure 1. Proof of purchase such as invoices and receipts.
2. Proof of payment such as bank statements, debit notices, proof of
settlement by the sub-contractor.
3. 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.
4. The Coordinator's Accounting records (computerised or manual) such
as general ledger, sub ledgers and payroll accounts, fixed assets
registers and other relevant accounting information.
Additional – specific to particular budget headings
Human
Resources
Staff and payroll records, contracts.
Travel Transport tickets (including boarding passes in case of travel by air)

23
Rented transport: Invoice from supplier and summary list of distance
covered
Car: For fuel expenses, a summary list of the distance covered, the average
fuel consumption of the vehicles used, fuel costs.
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
Certificate of origin made out by the competent authorities of the country
of origin of the supplies (Chamber of Commerce confirmation or customs
declaration).
2.7.2. Technical documentation
Project technical documentation should be sufficiently detailed to prove implementation of
activities, delivery of services and outputs.
Examples of project documents for some of the project activities.
Surveys /studies
− Reports
Publications
− Copies of publications
Seminars, conferences, working meetings
− Programme
− List of presentations / conference reports
− Hand-outs
− List of participants
− List of speakers
− Minutes (if applicable)
− Press clippings
− Feed-back questionnaires (if applicable)
Training
− 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 report
Experts
− Timesheets
− Copies of the outputs
− Activities reports
Production

24
The final project report must be forwarded to the EU Delegation within 3 months of project
completion. Remember that you can only receive the final payment (balance) for your project
once your final report has been approved and expenditure verification conducted.
− Copies of articles, supplements, DVD with TV programmes, documentaries.
− Reports on share, viewership, ratings, etc.
− Broadcast schedule
2.8. Reporting requirements
All Coordinators awarded a grant under the Strengthening Media Freedom Grants Scheme, will
have to submit reports:
• Final narrative and financial report no later than three months after the implementation
period, and
• Interim narrative and final report (for project implementation period of more than 12
months and grant of more than EUR 100,000.
Persons responsible for the overall project implementation, such as project managers will have the
main responsibility for the project reporting. From the very beginning of the project until its end,
project managers are obliged to keep all data about the project for two reasons: a) They have to
know what the status of the project is at all times and, b) They have to be prepared for reporting,
monitoring visits and the expenditure verification that will be carried out at the end of the project.
Recommended
You should keep internal monthly activity updates on realisation of project activities. In this way, all
important events / dates will be recorded and you will have no problems preparing final report.
The same applies on internal expenditures records: if updated on a monthly basis, you will have no
problem utilising available funds in the best possible manner, including budget reallocations. Also,
preparation of financial reports will be much easier. In addition, monthly overviews will serve as
good preparation for monitoring missions, conducted by "Strengthening media freedom" project
team's monitors.
2.8.1. Final report
The project final report should primarily deliver all necessary information concerning the
implementation of activities, the utilisation of the inputs and the results accomplished throughout
the project lifetime. In addition, the report should elaborate experiences that have been made in
the course of the project and “lessons learnt”, results achieved, project effects and impact on the
target groups.
IMPORTANT NOTE!
Final narrative report should emphasise results achieved during the project implementation. It
should provide answers to the following questions: (i) did the program accomplish its objectives? (ii)
did the program operate as originally designed? (iii) did the program activities produce the desired
outcomes? If not, why? What is being done to address any problem areas? (iv) how do findings /
results affect future planning or new strategies? v) the extent to which the project has impact the

25
target groups? vi) the scope of achieved objectives and results measured through verifiable
indicators.
The final narrative report includes the following sections:
I Description - including general information on the project, such as title, contract number, duration,
person in charge for realisation, etc.
II Assessment of Implementation of Action Activities, including:
2.1. Executive summary of the implementation of activities for the whole duration of the project.
You should comment on level of fulfilment of the overall and specific objectives indicated in the
project proposal. You should quantify wherever possible and refer to indicators and sources of
verification from the LogFrame. Triangle all possible sources to illustrate the achieved results and
impact the project has made.
2.2. Activities and results – emphasis should be on results achieved. You should list all activities
realised during reporting period. Activity description should include title of the action, period (date),
actors / target groups involved, conclusions / follow –up (if applicable). Remember to quantify
results whenever possible and to refer to the project LogFrame.
2.3. Sustainability and follow-up activities. Indicate what has been done on achieving sustainability
and how do you plan to finance activities / part of activities after this project.
2.4. Cross-cutting issues. Describe in more details if the project had impact on any of these issues:
not only targeting vulnerable groups, but also contributing to equal access to information of these
groups, promoting their rights, etc.
2.5. Indicate how you have monitored/evaluate project realisation internally. In case you have
conducted external evaluation, please attach the evaluation report. Include information on training
and other activities contributing to building of capacities, new experiences gained, polls / surveys
results, etc.
2.6. Lessons learned.
2.7. List all materials (and number of copies) produced during the Action. Don’t forget to include
information on dissemination and broadcast schedule.
2.8. List all procurements above €60.000.
III Beneficiaries/affiliated entities and other Cooperation Partners
3.1. Assess the relationship between the Beneficiaries/affiliated entities.
3.2. Indicate if any future cooperation between those actors will continue.
3.3. Assess the relationship between your organisation and state authorities.
3.4. Assess the relationship between your organisation and associates, subcontractors,
beneficiaries, target groups.
3.5. Indicate any links and synergies you have developed with other actions.
3.6. If your organisation has received previous EU grants in view of strengthening the same target
group, explain how far has this Action been able to build upon/complement the previous one(s)?
3.7. Also include information on cooperation with the Contracting Authority.
IV Visibility
Please not that you should provide answer on EU contribution visibility (not only project visibility)
and indicate how the final beneficiaries and/or general public were informed.
V Indicate location of records, accounting and supporting documents.
If the project's duration is over 12 months, the Coordinator must submit an interim narrative and
financial report as well. The narrative report should present all necessary information concerning
the implementation of activities in the first year, and should give information on the project

26
progress, activities conducted, success of the project, results achieved, possible problems, and
should also quantify the level of fulfilment of the objectives and results against the indicators.
The final financial report contains accounting of all expenditures over the lifetime of the project,
including EU and own contribution. Costs not accounted for or not reported in due time cannot be
reimbursed. Please note that costs / signing of contractual obligations are eligible only up to the
finalisation date of the operation. After the contract expiry date no costs are eligible.
The final financial report demonstrates the extent to which project expenditures have adhered to
the original project budget.
You should include all expenditures made during the project implementation in the final report. You
should complete the balance sheet first, finalise individual sheets and then fill in Annex VI.
Following information should be presented in the table:
(a) In first 4 columns, B-E you should present the approved budget
(b) Columns F-G - include reallocations / contingencies (if notification was submitted to the EU
Delegation)
(c) Column H – J total costs in RSD for the reporting period
(f) Column K – total costs in EUR
(g) You may add columns for other expenditures incurred in other currencies
(h) Column L – M – total expenditures in EUR (for costs made in EUR and RSD), as well as Column O
(i) Column P – R difference in EUR between planned and realised costs
(k) Column Q – difference in %
(l) Column R – explanation for larger variations
List of documents which have to be included with the final project report:
Cover letter
Narrative report
Financial report
(a) Annex VI, final report template
(b) Income and expenditure sheet and individual sheets per budget line
Request for payment (model Annex V)
Equipment transfer form – proof of the transfer of ownership (if applicable)
Statement confirming that no other claims will be requested
3. SECONDARY PROCUREMENT
This section covers general information on procurement according to EU procedures given in Annex
IV to the Contract. Detailed information on these procedures and template documents to be used
are given in for tendering procedures please see relevant procurement and tender dossiers at
http://ec.europa.eu/europeaid/prag/annexes.do?group=B for Services, and
http://ec.europa.eu/europeaid/prag/annexes.do?group=C for Supplies.
3.1 Procurement Plan and Types of Procurement
Each Grant Beneficiary is to submit to the Project team the procurement plan as in the following
table for all tenders indicating the dates for launching, opening and evaluation of the tenders etc.

27
Table for procurement plan
Contract Number:
Name of the
tender 1
Dates for Tender 1
Name of the
tender 2
Dates for Tender 2
Name of the
tender 3
Dates for Tender 3
Preparation of tender
dossier
Expected date for
sending the tender
dossier to the Project
team for checking
Submission deadline
Evaluation
Expected date for
sending the Evaluation
Report to the Project
team for checking
Contract signature/Pro-
invoicing
Expected delivery date
IMPORTANT NOTE!
The first step in any procurement, before launching the process, is to determine what is to be
purchased, whether supplies, services or works and to estimate the approximate value of the
procurement (it should be in line with your approved budget). In accordance with this information,
the Coordinator will then decide what type of the contract and what procedure should be applied.
In all cases the contract must be awarded to the contractor whose tender offers the best
quality/price ratio (economically most advantageous tender). You must arrive at your decision in a
transparent way, allow fair competition between contractors and avoid any conflicts of interest in
making your choice.
Projects approved under the "Strengthening Media Freedom" grant scheme include two types of
procurements:
Service contracts – cover engagement of service providers, companies and/or individuals
(experts). Service contracts are used for preparation of studies, evaluation reports,
trainings, surveys (polls), etc.
Supply contracts - cover the purchase or rental of supplies / equipment. The delivery of
products may in addition include installation and maintenance.
You can always consult "Strengthening Media Freedom" project team during the procurement
process. In addition, tender dossiers and evaluation reports for all procurements over €20,000
should be approved by "Strengthening Media Freedom" project team.

28
When conducting procurement procedure, basic principles and rules to be respected are:
Transparency
Non-discremination
Equal treatment
Fair competition
Eligibility criteria: nationality and origin
Grounds for exclusion
Types of procurement and procedures:
Note: Payments for amounts less than or equal to EUR 2500 may consist simply in payment against
invoices without prior acceptance of a tender, however a written track record of this procedure has
to be documented.
Other essentials:
Non-retroactivity
SERVICES ≥ 300,000 EUR
International
restricted tender
procedure
300.000>&>20.000 EUR
- Framework contracts
or
- Competitive negotiated procedure ≤ 20.000 EUR
Single tender
For service and
supply contracts, a
payment may be
made against
invoice without
prior acceptance of
a tender if the
expenditure is
≤ 2 500€
SUPPLIES >=300.000 EUR
International
restricted tender
procedure
300.000>&>
100.000 EUR
Local open
tender procedure
or
- Frame work
contract
100.000>&>20.000
EUR
Competitive
negotiated
procedure
or
- Frame work
contract
WORKS >= 5.000.000 EUR
International open
tender procedure
or
- International
restricted tender
procedure
5mil>&>=
300.000 EUR
Local open tender
procedure
300.000>&>60.000
EUR
Competitive
negotiated
procedure

29
Contracts take effect from the date of signature of the last signatory.
Use of standard documents
Standard contracts and document formats or adapted versions must be used.
Record keeping
Unsuccessful tenders have to be kept for five years from the submission deadline of the tender.
Contractual and financial documents have to be kept for a minimum of seven years from payment
of the balance and up to the prescription date of any dispute about the law governing the contract.
Grounds for exclusion
Visibility
All subcontracted vendors must ensure the visibility of EU financing.
3.2. Procurement procedures
Common to all secondary procurement procedures is that they need to include following steps:
Procurement Planning – deciding which procedure to use and when to launch procedure.
Launching and realisation of the procurements planned is already indicated in the activity plan.
However, it is recommended to start the procedure earlier in the project realisation, especially
when applying the negotiated procedure (in case you need to repeat the procedure due to an
insufficient number of offers, rule of origin, etc.)
Launching of the procurement procedure – process of contacting selected suppliers and sending
of tender dossier with technical specifications / terms of reference.
Selection of the tenderers – should be completed by an evaluation committee, consisting of 3
voting members.
Contract preparation – it is recommended to use standard EU contract templates or adapted
versions.
Contract implementation – for all supply contracts, the Certificate of Provisional Acceptance
should be issued to supplier.
In line with the signed Grant Contracts and size of the approved procurements, under the
Strengthening Media Freedom grant scheme you will be mainly applying the following two
procedures:
3.2.1. Single Tender
You can award the contract just on the basis of one offer for all service and supply contracts of a
value of €20,000 and less. There are no documented rules for “Single Tender”, however we strongly
advise you to obtain three written quotations to show that you have got a good deal reflecting the
current market prices and meeting required technical specification for the product, service or work
that you wish to procure. This will demonstrate that the process has been fair and transparent.
3.2.2. Negotiated Procedure without Publication
You need to consult at least 3 contractors of your choice before selecting the one that offers the
best quality/price ratio. The Beneficiary prepares a list of potential contractors. The candidates are
invited by sending them a letter of invitation to tender accompanied by a tender dossier.

30
The whole procedure works as follows:
Phase 1:
You prepare the Invitation to Tender and Tender Dossier which should include:
Terms of Reference (service contract) or Technical Specifications (supply contract)
Maximum budget
Form of offer submission (Tender form)
Selection criteria that will be used for evaluation (Administrative compliance grid,
Evaluation grid)
Note: considering that there is no standardized locally used template including all relevant
information, you should use standard EU templates for negotiated procedures, modified to your
needs if necessary (available on CD)
Phase 2:
"Strengthening Media Freedom" project team approves tender dossier
Invitation letters with tender dossier are sent to selected contractors
Deadline for offer submission is 30 days (for procurement of 20,000 EUR or less that
period can be shorter)
Phase 3:
You evaluate received offers by forming an Evaluation Committee comprised of an odd
number of voting members (at least 3).
Evaluation Committee consist of a non-voting Chairperson, a non-voting Secretary and
minimum 3 voting members. The voting members must possess the technical and
administrative capacities necessary to give an informed opinion of the tenders.
The Committee ranks the proposals using the criteria decided on in advance and identifies
which offers the best quality/price ratio.
You produce an Evaluation Report detailing this process (standard templates available on CD)
Important: If following consultations of tenderers, only one tender is administratively and
technically valid, the contract may be awarded providing that the award criteria are met.
Phase 4:
Evaluation report with copies of all received offers is submitted to the "Strengthening Media
Freedom" project team for approval .

31
Phase 5:
Once approval is received, you should notify the successful contractor that their tender has
been accepted.
Contract signing and implementation.
The most important part of the dossier you send out is the Terms of Reference / Technical
Specifications which give instructions to contractors about what is required from them. This
document becomes an annex to the eventual contract and a guide for the contractor in
implementing the agreed work. Therefore it needs to be thorough. We advise that when you
prepare it you consult everyone involved in the project, and/or colleagues working in specialized
departments, such as IT department.
IMPORTANT NOTE!
Procurement procedures under negotiated procedure might last up to 2 months. You should keep
this in mind when planning realisation of other project activities.
3.2.3. Rule of origin
All suppliers must state the origin of supplies. Contractors must present a certificate of origin to the
Beneficiary no later than when the first invoice is presented, for equipment and vehicles of a unit
cost on purchase of more than €5.000. The certificate of origin must be made out by the competent
authorities of the country of origin of the supplies (Chamber of Commerce confirmation or customs
declaration).
EC regulation (C) 2007/2034 articles II.2.2: Goods originating in a country shall be those wholly
obtained or produced in that country. Goods whose production involved more than one country
shall be deemed to originate in the country where they underwent their last, substantial,
economically justified processing or working in an undertaking equipped for that purpose and
resulting in the manufacture of a new product or representing an important stage of manufacture.
3.2.4. Nationality Rule
Participation in tender procedures administered by the Beneficiary(ies) is open on equal terms to all
natural and legal persons of the:
• Member States of the European Union (28).
• Member State of the European Economic Area (Norway, Island, Lichtenstein) .
• An official candidate country or potential candidate that is a beneficiary of the Instrument
for Pre-Accession Assistance (Council Regulation (EC) N° 1085/2006 – OJ L 210/82 of
31.7.2006).
• A country that is a direct beneficiary of European Neighbourhood and Partnership
instrument (Regulation (EC) N° 1638/2006 of the EP and of the Council of 24 October 2006
- OJ L 310/1 of 9.11.2006).

32
Tenderers must state, in the tender, the country of which they are nationals by presenting the usual
proof of nationality under their national legislation. This rule does not apply to the experts
proposed by service providers taking part in tender procedures or service contracts financed by the
grant.
Remember:
The general principles and rules on nationality and origin apply in all procurement procedures,
regardless whether fully financed from the grant or co-financed.
4. MONITORING AND SUPPORT ACTIVITIES
4.1 Monitoring Framework
Main aim of monitoring is to verify that grants are used for their stated purpose in the contract.
Monitoring is also to ensure that the projects are implemented in compliance with EU procedures,
to identify the problems arising during the project implementation and to provide regular support
to beneficiaries on solutions. Implementation of your projects will be closely monitored in terms of
procedures, progress, performance and problems and needs of the beneficiaries.
Why is it important to monitor the project realisation?
Monitoring represents an important part of project management (especially internal
monitoring)
Provides information on the progress towards achieving the project’s objectives
Early warning of potential problems. Corrective measures are also based on the
monitoring reports
Monitoring reports are useful assistance tool when making important decisions
All stakeholders are regularly informed on the project progress (internal and external
reports)
Budget control
Generally speaking, there are two types of monitoring:
Internal monitoring
External monitoring
4.1.1. Internal Monitoring
Internal monitoring is one of the key factors of good project management and should be planned
and integrated throughout the project realisation. Project managers are responsible to monitor
realisation of the project overall and specific results – they should regularly check activity plan to
make sure that the project implementation is going as planned and that there are no major
discrepancies.
Some of the issues the project manager should regularly monitor include: (i) which activities are
completed; (ii) which indicators of success are already achieved; (iii) are the basic assumptions
changed and why; (iv) has any of the changes affected plan of realisation; (v) which activities are not
completed and why; and (vi) which problems remained unsolved.
Project managers should conduct internal monitoring on a regular basis and collect information on
all conducted activities. Also remember to always return to the Logframe, including indicators and
verifiable sources listed.

33
Please find below a template table for monitoring of activities implementation:
Activity Person
In-charged
Start date End date Comments
Planned Realised Planned Realised
In addition to regular monitoring of project activities and results, project managers should also
regularly monitor expenditures made.
4.1.2. External Monitoring
"Strengthening Media Freedom" project team will be responsible for external monitoring of your
projects. They will review final reports and organize regular field visits to your projects.
The external monitoring system is built on the output and result/impact indicators and concerns the
following aspects of implementation:
Management and coordination: is the management and coordination efficient? Is the
operation being implemented in line with the time plan? Is the budget plan being
implemented and are allocations per budget lines being observed?
Progress towards the achievements of the operation’s goals: Are the outputs being
achieved? Are the result/impacts being attained?
Dissemination: Are the achievements and results of the operation being maximised through
adequate dissemination? Are publicity requirements being fulfilled?
You should be prepared for external monitoring / field visits and ready to provide all required
information / documents, serving as a basis for discussion. Prior to the second monitoring visit,
grantees should prepare an overview of project activities and expenditures, in the form of pre-
monitoring report.
5. VISIBILITY PROCEDURES
Coordinator, Co-applicant(s) and affiliates must take necessary measures to ensure the visibility of
the EU financing or contribution to the financing. Such measures must be in accordance with the
applicable rules on the visibility of external actions are set out in the Communication and Visibility
Manual for EU External Actions, available from the following Internet address:
http://ec.europa.eu/europeaid/work/visibility/index_en.htm
The regulations related to EU visibility rules will be followed very carefully. The
EU support in the project will be realized through proper implementation tools
(all published documents and audio-visual outputs). In particular, the
beneficiary shall mention the project and the European Union’s financial
contribution in all outputs prepared, information given to the final recipients of
the project, in its reports, at conferences, presentations, etc. It shall display the
EU logo wherever appropriate. In addition, grantees should indicate in all produced outputs that the
project has been supported by the European Union.
An EU Funded Project

34
The following text should be used:
This project is financed by the EU through the "Strengthening Media Freedom" project,
managed by the EU Delegation to Serbia and implemented by EPTISA Servicios de
Ingenieria.
Any publication or a programme produced, in whatever form and by whatever medium, including
the internet, must include the following statement (legal disclaimer):
“This …..(document/documentary/programme/publication, etc.) has been produced with the
financial assistance of the European Union. The contents of this document are the sole responsibility
of <beneficiary’s name > and can under no circumstances be regarded as reflecting the position of
the European Union.”
Web sites: Mandatory visibility requirements are the EU logo and a “legal disclaimer”.
Stickers and labels for fixed assets will be used to identify fixed assets and/or reimbursable (cars,
furniture, machinery, equipment, stationery, etc) acquired within a project funded by the European
Union. The stickers will be placed in sight, on the front of the objects. The size of the stickers will
depend on the size of the place available. The graphics will contain the European Union logo.
APPROVAL PROCESS:
Requests for approval should be sent at least 7 days in advance to Mr Aleksandar Đorđević,
Aleksandar.DJORDJEVIC@eeas.europa.eu and Cc Sibina Golubovic sgolubovic@eptisa.com
Bellow: Examples of visual designs - Letterhead, roll-up banner and street billboard.

35
6. EXPENDITURE VERIFICATION REPORT
The expenditure verification(s) referred to in Article 15.7 of Annex II will be carried out by the EU
Delegation or any external body authorised by the EU Delegation, whose contact will be
communicated at later stage, as stipulated in Article 5.2. of the Special Conditions.
7. TERMINATION OF THE GRANT CONTRACT
In accordance with the General Conditions, article 12, a Party (Coordinator/EU Delegation) that
believes that the Contract can no longer be executed effectively or appropriately, should consult the
other Party (beneficiary/EU Delegation). Failing agreement on a solution, either Party may
terminate the Contract by serving two months’ written notice, without being required to pay
compensation.
The EU Delegation may terminate the Contract, without giving notice and without paying
compensation of any kind, where the beneficiary:
fails, without justification, to fulfil any of the obligations incumbent on him and, after being
given notice by letter to comply with those obligations, still fails to do so or to furnish a
satisfactory explanation within 30 days of sending of the letter;
is bankrupt or being wound up, is having its affairs administered by the courts, has entered
into an arrangement with creditors, has suspended business activities, is the subject of
proceedings concerning those matters or is in any analogous situation arising from a similar
procedure provided for in national legislation or regulations;
has been convicted of an offence concerning professional conduct by a judgement which
has the force of res judicata or is guilty of grave professional misconduct proven by any
justified means;
engages in any act of fraud or corruption or is involved in a criminal organisation or any
other illegal activity detrimental to the European Union’s financial interests: this also
applies to the partners, contractors and agents of the municipality;
changes legal personality, unless an addendum recording that fact is drawn up;
does not comply with Articles 4, 10 and 16 of the General Conditions
makes false or incomplete statements to obtain the grant provided for in the Contract or
provides reports that do not reflect reality.

36
In the event of termination the beneficiary shall be entitled to payment of the grant only for the
part of the project carried out, excluding costs connected with current commitments that would be
implemented after termination. For this purpose the beneficiary shall introduce a payment request
and a final report in accordance with Article 2 of the General Conditions.
However, in the event of wrongful termination of the Contract by the beneficiary under first and in
cases specified in second paragraph d), e) and g) the EU Delegation may request full or partial
repayment of sums already paid from the grant, in proportion to the gravity of the failings in
question and after allowing the beneficiary to submit his observations.
Prior to, or instead of, terminating the Contract as provided for in this paragraph, the EU Delegation
may suspend payments as a precautionary measure without prior notice.
The Contract shall be terminated automatically if it has not given rise to any payment within three
years of its signature.
8. WEBSITES
Useful information on procurement can be found on the following websites:
• Website of EU Delegation to Serbia: http://www.delscg.ec.europa.eu
• An English version of the “Practical Guide to contract procedures for EU external actions”
(EU PRAG 2013)
• http://ec.europa.eu/europeaid/prag/document.do
• Website for InfoEuro rates:
http://ec.europa.eu/budget/contracts_grants/info_contracts/inforeuro/inforeuro_en.cfm
• Website for Communication and Visibility Manual for EU External Actions
http://ec.europa.eu/europeaid/work/visibility/index_en.htm, and images of European flag
for reproduction http://europa.eu/about-eu/basic-
information/symbols/flag/index_en.htm
• Website for Per Diems rate
http://ec.europa.eu/europeaid/work/procedures/implementation/per_diems/index_en.ht
m
• Website for tendering procedures please see relevant procurement and tender dossiers at
http://ec.europa.eu/europeaid/prag/annexes.do?group=B for Services, and
http://ec.europa.eu/europeaid/prag/annexes.do?group=C for Supplies.
• Website for Tax administration http://www.poreskauprava.gov.rs/

37
Important deadlines:
Note: In the event of any change in the rules or procedures applicable to your grant management,
you will be informed in due time.
What When How
Procurement plan
Revised Action plan
Revised Logframe indicators
Until 28 February 2014
E-mail
Interim report and Request
for further pre-financing
At the end of 12 month
period or earlier
Hard copy + E-mail
Final narrative and Final
financial report
Within 3 months of
completion of the project
Hard copy + E-mail
Notification letter
Three weeks prior to the
changes taking effect Hard copy + E-mail
Addendum request
Minimum 30 days before
the implementation of the
change
Hard copy + E-mail

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