Cabinet of Ministers Regulations No. 743 in Riga 2004 (august 24. Nr. 50) the provisions of § 36 of the contract between the Member States and the Grand Duchy of Luxembourg, acting as the managing and paying authority of the Community initiative programme "implementation" ESPON 2006 issued under Cabinet installations article 14 of the law in the first part of paragraph 3 1. Agreement between the Member States and the Grand Duchy of Luxembourg, acting as the managing and paying authority of the Community initiative programme "ESPON" 2006 (hereinafter the agreement) with these terms are accepted and approved. 2. the agreement shall enter into force at the prescribed time and in order. Prime Minister, Deputy Prime Minister a. shlesers regional development and local Government Minister a. Radzevič accepted and approved by the Cabinet of Ministers of 24 august 2004, the Regulation No 743 Treaty between the Member States and the Grand Duchy of Luxembourg, acting as the managing and paying authority of the Community initiative "ESPON 2006 programme" implementation of becoming Member States of the European Union, the Republic of Cyprus, the Czech Republic, the Republic of Estonia, the Republic of Hungary, the Republic of Latvia , The Republic of Lithuania, the Republic of Malta, the Republic of Poland, the Slovak Republic and the Republic of Slovenia as a new Member State shall accede to this agreement "between the Member States and the Grand Duchy of Luxembourg, which acts as the managing and paying authority of the Community initiative" ESPON 2006 programme "implementation", ESPON 2006 programme of the European Commission for approval signed current 03.06.2002 15 Member States. 11. Pursuant to this agreement (6), it should be noted that the ESPON 2006 programme was launched in full, starting from the date of approval of the European Commission. Number of copies of this contract will be increased from 15 to 25 Member States New ESPON 2006 programme join individually, signature and implementation of this agreement. Under European Union regulations, which lay down the rules on the structural funds, in particular the Council of 21 June 1999, Regulation (EC) No 1260/1999, as amended by Council of 28 June 2001, Regulation No 1447/2001 of the European Parliament and of the Council of 21 June 1999, Regulation (EC) No 1783/1999, the Commission of 11 July 1994, Regulation (EC) No 1681/94, Commission of 28 March 2000, the Regulation (EC) no 643/2000 Of the Commission of 30 May 2000, the Regulation (EC) No 1159/2000, the Commission of 28 July 2000, the Regulation (EC) No 1685/2000, as amended by Commission of 27 June 2003, Regulation (EC) no 1145/2003, the Commission on 2 March 2001, Regulation (EC) No 438/2001, as amended by the Commission on 27 December 2002, Regulation (EC) No/2002 and Commission 2,430 2001 March 2, Regulation (EC) no 448/2001; The Member States of the European Union, the Republic of Austria, the Kingdom of Belgium, the Kingdom of Denmark, the Republic of Finland, the French Republic, the Federal Republic of Germany, the Hellenic Republic, the Republic of Ireland, the Italian Republic, the Grand Duchy of Luxembourg, the Kingdom of the Netherlands, the Portuguese Republic, the Kingdom of Spain, the Kingdom of Sweden, the United Kingdom of Great Britain and Northern Ireland, concluded an agreement for the Community initiative programme "ESPON 2006 programme" ("CIP"), which was approved by the European Commission in the Member States of the abovementioned 03.06.2002. made a decision to sign a memorandum of understanding on common ESPON 2006 programme establishing common enforcement structure, comprising the managing authority (VI) payment authority (MI), the coordinating Division (CN), the Monitoring Committee (UK), as well as financial control functions and responsibilities. Such agreements concluded progressively with the other States involved in ESPON, ESPON 2006 subject to the CIP v. 8. the provisions of chapter. 1. the managing authority, payment authority, coordination and Monitoring Committee Member States 1 managing authorities (VI) function attaches the Luxembourg Ministry of territorial planning and the city Directorate of DATURA. This institution the managing authority undertake the duties and functions pursuant to Council Regulation (EC) 1260/1999 and article 9 (n) of article 34, the Community initiative program INTERREG III guidelines, paragraph 30, and chapter V. CIP ESPON 2006 2. 2. the parties, payment institutions (MI) of the assigned function "of the budget of the Ministry of the Interior Department" while determining the payment obligations of the Grand Duchy of Luxembourg, the Ministry of finance to the Central payment unit and financial control responsibilities of the Ministry of finance, the financial control Department. Payment of that institution the Authority's duties and functions, pursuant to Council Regulation (EC) 1260/1999 and article 9 (o) of article 32 and chapter V. 3, KIP. For financial control, payment for its work in support of the institutions of the Ministry of finance, the financial control Department. This chapter of the budget of the Ministry of the Interior acts as the focal point in dealing with the General WMD issues. 3. in accordance with the CIP, the administrative functions of implementation creates coordination section VI (CN) (Centre de recherche Public Henry Tudor (CRP HT), Luxembourg). Coordination Section office location: Technopor a Schlassgoar, Luxembourg-Esch/Alzette. In addition to the provisions relating to CN, VI and MI roles and responsibilities, as well as the responsibility of the management and conditions contained in the CIP rules and regulations, CN UK. Department of coordination of different, functionally unrelated employees provide support for UK, VI, and Mia if their number will be sufficient for such a duty. 4. the Representative of the Member States, the Monitoring Committee will validate VI/MI financial management and control framework, as well as the creation of appropriate mechanisms of coordination with all the financial resources of the programme and the other countries in accordance with the functions and responsibilities set out in the UK, provided for in Council Regulation (EC) No 1260/1999, article 35 and the ESPON 2006 programme IIP v. 1. In consultation with the Member States shall establish and MI, financial management and control framework and defines the specific responsibilities of the various institutions, thus providing the aid and Mia to the VI implementation of the CIP, to coordinate Community funds and national co-financing question efficiently and correctly, as well as to guarantee the utilization of resources in accordance with the relevant Community provisions and adequate financial management principles (detailed rules for part 5). In the case of specific duties and responsibilities, VI/MI has veto rights monitoring Committee in those cases where the VI/MI detects known gaps in the Member State set up structures that can detect the ERDF funds forced repayment from the VI/MI, despite the fact that the recovery of the aid in the initial cause of the threat is not a VI/MI competence or the competence of the Member State concerned. Throughout the implementation of the programme shall apply to Commission Regulation No 438/01. UK operating rules are designed as a separate document. 5. In accordance with Council Regulation (EC) No 438/01 Article 2 conditions, all Member States represented the UK advises the Administration and control bodies, to provide support for the performance of their functions and Mia VI. Support includes administrative support VI/MI, as well as document preparation program management, financial control and audit purposes in the Member State concerned. The cost of the Member State concerned, provided the administrative support provided by public or private institutions, shall be borne by the Member State concerned, unless the expenses are not clearly indicated in the budget for technical assistance of the IIP. Administrative support will be provided to management, financial control and audit. (Detailed conditions regarding the cost will be for common protocols with the relevant liaison bodies referred to in annex 1-3; The Luxembourg authorities assume responsibility for communication with the relevant authorities). The most important tasks in support of the above areas under this agreement are as follows: (a) Member States of support be provided to VI) and the Member State and the management of cooperation developed in such cases (supports UK organisations represented included in annex 1): specifying the national measures for the implementation of the scheme (see paragraph 3 of part 3), forced the repayment of funds where checking/requesting guarantees not able to perform the lead applicant (see part 1.) as well as taking the necessary measures (see part 3 of 10) to require a guarantee (see point 4 of part 10.), or by initiating a judicial process. (b) support to be provided by the Member State) and the Member State and MI MI cooperation project in the area of financial control, to check you project a leading partner invoices in accordance with the provisions of part 6. Support is provided by the Member States listed in annex 2 financial control authorities. (c) support to be provided by the Member State) and the Member State and MI MI, cooperation in the area of the proposed audits in accordance with part 9 of the conditions of paragraph 1. MI (in cooperation with the audit authorities in Luxembourg) acts as initiator, to create the audit authorities of the Member States responsible for the network (listed in annex 3). 6. In accordance with Council Regulation (EC) No 1260/1999, the said institutions and functions defined in chapter V, the IIP. More detailed and more precise rules for the UK, and VI MI tasks, rights and obligations set out in this document. 2. National and EU funding provided by a single Administration 1. MI is administered by both the Member States and the EU provided funding, the management of this process, in cooperation with the VI. Each year up to the end of February (or in exceptional cases where this is not possible, at the latest one month after the approval of the national budget) Member States paid their share of the co-financing of the programme for the next year under the Monitoring Committee approved a financial plan, and subject to the conditions of the programme complement (see below). 2. Member States ' payments for the provision of co-financing from structural funds support projects are transferred WMD; charges will be accumulated in a separate account in euro (€) (trust account), and administer them separately WMD as trust funds whose management fully entrusted that authority. 3. Income from interest earned, using national co-financing provided, in accordance with the UK spending decisions, subject to the same rules that apply to the ERDF funds. 3. Control 1. Without prejudice to Council Regulation (EC) No 1260/1999, article 8, paragraph 3 (VI) coordinate the implementation of the programme and the management efficiency and accuracy in all Member States. (VI), in coordination with the delegations of Member States UK, use the appropriate State authorities, administrative support (see list in annex 1) it management tasks relating to the implementation of the programme. In cases where the UK representatives delegated to the administrative support functions to other public bodies involved in the implementation of the ESPON, avoid the above authorities overlap and interference. The tasks are as follows: VI a) under Community initiative programme INTERREG III guidelines of 30 to organise the preparation of the decision in the UK, especially considering the approving and financing for log in, as well as giving them an initial assessment or coordination of the foregoing tasks; (b)) to establish a system of reliable and secure financial and statistical information on the implementation of the programme, in order to ensure the monitoring referred to in article 36 of the indicators necessary for the exercise in accordance with article 42 and article 43 (Council Regulation (EC) No 1260/1999), as well as a system for the transmission of this data and to transfer as much as possible using information technology solutions to make data exchange with the European Commission in accordance with Council Regulation (EC) 1260/1999, article 18, paragraph 3 (e)); (c)) in accordance with article 34, paragraph 3, the conditions for the adaptation of the programme complement and ensure the implementation of article 18, paragraph 3, without prejudice to Council Regulation (EC) No 1260/1999, the conditions of article 35; (d)) to develop and after approval by the UK to the European Commission to submit annual reports and the final report (Council Regulation (EC) No 1260/1999, article 37); (e)), in cooperation with the European Commission and the Member States to organise the mid-term review, in accordance with Council Regulation (EC) No 1260/1999, the provisions of article 42; f) coordinate compliance with Community policies, in accordance with Council Regulation (EC) No 1260/1999 and article 12 article 34 paragraph 1 (g)); g) coordinate compliance with rules and obligations relating to information and publicity measures, provided for in Council Regulation (EC) No 1260/1999, article 46 and Commission Regulation (EC) No 1159/2000 2. Without prejudice to the provisions of this agreement, via operates in full compliance of the Grand Duchy of Luxembourg, the institutional, legal and financial system (Council Regulation (EC) No 1260/1999, article 34 paragraph 1, second part), as well as the laws of the Member States. 3. subject to the agreement of 1 part 3 of paragraph (g)), (VI) designate one or more representatives of the CN as responsible for information and publicity measures and shall report to the European Commission about the obligations of designated bottler. (VI) use the appropriate national institutions (see list in annex 1) provides administrative support to ensure that all the required information and publicity measures for effective implementation in accordance with Commission Regulation (EC) No 1159/2000, as well as to collaborate with the European Commission. 4. In accordance with Commission Regulation (EC) No 438/2001 7. paragraph 3 of article VI will be used by national authorities (see list in annex 1) provide administrative support to ensure that all Member States have established procedures to ensure that documents relating to the particular assistance concerned in accordance with expenditure and payments made and have sufficient audit trail, are held in accordance with Regulation (EC) No 1260/1999, article 38 (6) and Commission Regulation (EC) No 438/2001 I have added attachment. In addition, via also checks whether a record is maintained of the body holding the foregoing documents, and its location and that the documents are made available for inspection by the persons and bodies who would normally have the right to inspect such documents in accordance with Commission Regulation (EC) No 438/2001, article 7, paragraph 3 (c)). Generally in accordance with the terms of the grant agreement, the lead partner is responsible for the storage of these documents (see part 6). Financial control and audit evidence and procedures detailed in sections of this contract in part 8 and 9. 5. In accordance with Commission Regulation (EC) No 438/2001 article 9 paragraphs 3 and 4, (VI) ensure that the MI would be informed of the procedures operated by the managing authority (as defined in part 3 of this Agreement) to verify the delivery of the products and services cofinanced and the reality of expenditure claimed in order to ensure compliance with the regulations in force and the necessary audit trail , thus ensuring that before the report on the expenditure of the Commission transfer is considered adequate and efficient control systems and the audit trail. 6. CN provides support via these tasks. Detailed rules for the delegation of responsibilities specified in the provisions of chapter coordination. 4. payments between the EU and the payment authority 1. after CN VI developed financial aid calculations, and approved by the UK, MIA submits an application for funding from the structural funds, as well as no later than the end of February of each year the Commission shall send the updated forecasts of applications for payment and for the next year. 2. in accordance with Council Regulation (EC) No 1260/1999, article 32 paragraph 6 issued approvals and declarations specified in article 32 of that regulation 3 and 4. The approvals referred to in these articles, reviews of interim and final payments MI be drawn up in accordance with Commission Regulation (EC) No 438/2001 standard specified in annex II. Pursuant to article 9 of the above Regulation (1), with the task of dealing Department of financial control authority (see annex 2). These same regulations referred to in article 15 inspection responsibilities assume audit authority (see annex 3), which is operationally independent of MI review Before the 3 of the payments approval, MI check that via has complied with Council Regulation (EC) No 1260/1999, in particular the provisions of article 38, paragraph 1 (c)) and e), and article 32, paragraph 3, and paragraph 4 (a) and (b))) as well as noting the Commission's decision under article 28 of the said regulation rules, and make sure that the review of payments only include expenditure, a) to Commission Regulation (EC) No 1685/2000 is annex 1. rules 1.2 and 1.3 for the purposes of paragraph 2, are to be considered as actual payments made to above the eligibility period laid down in the decision and made the final recipient of funding, and that the pay off (can be supported by receipted) invoices or other accounting documents of equivalent supporting role; (b)) from implementing the tasks and measures approved funding for a given programme, subject to the specific selection criteria and procedures, as well as Community rules throughout the payment period; c) resulting from implementation of the measures for which State aid where necessary, approved by the Commission. 4. In accordance with Commission Regulation (EC) No 438/2001, article 15 of the person or Department that is authorized to prepare a Declaration on the expiry of the assistance provided for Regulation (EC) No 1260/1999, article 38, paragraph 1 (f)), a payment institution will provide all the necessary information and provide access to the accounting data and supporting evidence necessary for the preparation of the Declaration. Information on expenditure incurred by the Grand Duchy of Luxembourg itself, for example, the CN-funding activities in the implementation of IIP is not suitable for the provision of access referred to above. 5. in accordance with Council Regulation (EC) No 1260/1999, article 32 (1) of the European Commission from the resources allocated to the structural funds payments transfer payments are accrued MI in a separate account in euro (€) (trust account), and this funding is administered separately as MIA trust funds. 6. interest income Earned from the ERDF resources consumed in the action, in accordance with the UK decision, subject to the same rules as the national co-financing. 7. In accordance with Commission Regulation (EC) No 438/2001 article 8 MI keep records of amounts recoverable in accordance with the help of the community payments, and provides reimbursement without undue delays, with the public authorities concerned (see list in annex 1) provides administrative support. 8. the annex attached, in accordance with Commission Regulation (EC) No 1681/94 conditions developed in the fourth-quarter report on the repayable funds, every year the Commission shall forward MIA report on amounts up to the day of the still outstanding, classifying them by year, when start the recovery procedure. 5. the EU, the Monitoring Committee, the managing authority and the paying authority report preparation responsibilities and audit rights 1. the managing authority shall, after appropriate preparation of the information in the payment authority once a year until July 31 next year, Member States shall submit supporting materials for the use of funds. 2. MI, VI, acting in accordance with the model adopted in the Member States of the EU needs prepare reports on projects assigned funds and payments made. By special request of a Member State, based on the law of the Member State the specific conditions, the MIA prepares reports, showing information about the projects and expenses attributable to the Member State concerned. 3. make sure the use WMD, mainly based only on project implementation reports (managing partner, prepare and test to-do CN VI) invoices and audited by the final recipient of the funds in accordance with the 28 April 2000 the Commission communication to the Member States no 31 included the sentence 4 and 5, which establishes the Community initiative programme INTERREG III guidelines, and 6 of this agreement. 2. and (5) of the rules. If there is a suspicion about the failures, the MI shall immediately inform the representatives of the Member States involved in the Monitoring Committee. 4. The responsible EU and Member State audit authorities within their competence, are entitled to inspect, or managing partner according to the use the assigned funds (see part 9 of this contract). The Member State concerned and provide mutual support and MIA funding audit provides information, in the course of one to the other. 5. The competent authorities of the EU audit-main financial inspection (Inspection Général des finances – (IGF)) in Luxembourg and the partner concerned to the Member State concerned (see annex 3) have the right, at its own expense, to audit the use of funding under the premises of the institution achieve a previous agreement or delegate this task to the institution or organization to the representing. Vi, MI, the lead partner and the project partners are obliged to provide all the necessary documents and information, as well as access to premises and areas where you do business. The audit covers only the features relating to the Community initiative programme "ESPON 2006" exercise, rather than any other financial or economic WMD management processes. 6. ensure that the VI with the managing partner in the grant agreement concluded to be addressed in the audit checks by the authorities. 6. the agreement with the final recipient of the funds and payments to final beneficiaries 1. on the basis of the UK via the taking of a decision in the name of the grant agreement concluded with leading partner. For this purpose use UK VI approved the subsidy model (see annex 4). The conclusion of the grant agreement, must not violate UK VI rules made and decisions taken. 2. before the conclusion of the grant agreement, VI, MI using the relevant national authority, administrative support (see list in annex 1), that, or the managing partner meets all legal and organizational conditions for the implementation of the projects. MI paying particular attention to the fact whether the leading used a separate accounting system or an adequate accounting methods activities and transactions related to the financing of assistance. If MI control found shortcomings and requirements of the discrepancy, it shall immediately inform the UK through VI. 3. Except for the first payment, the managing partner in future payments may be requested only by providing supporting information on the progress made in the implementation of the project in accordance with the action plan of the project description and the grant agreement which are to be considered as an approved project an integral part of the application. Thus, the responsibility of the lead partner, subject to the CIP rules, is to submit progress reports reached KN, which added to the model in the annex to the grant agreement and will be placed in the program's homepage. The first progress report (see paragraph 5) CN be submitted no later than six months after the initiation of the implementation of the project in accordance with the approved action plan. Subsequent progress reports be submitted every six months under the terms of the grant agreement. Payment requests are to be approved by the institutions of financial control under this contract, part 8. 4. Payments are applied to a procedure similar to that of Council Regulation (EC) No 1260/1999, article 32: in the original payment to the account, up to a maximum of 5% of the total allocation; -interim payments intended to cover actual costs in accordance with a specific procedure to transfer every six months by a joint progress report; -the introduction of annual reporting; – check if the total initial and interim payments shall not exceed 95% of the total allocation; -six months after implementation of the project is paid 5% margin after the final report and approved the report on the costs of receiving and inspection to determine compliance with applicable regulations. 5. Progress reports and final reports shall include an overview of activities and financial report that includes the following table shows the reference period and the expenses that relate to the specific budget headings. Financial statements to be added to the financial control bodies recognised (see part 8 of this contract) financial control approval (in English), signed by the audits, an accountant or financial manager, who is not involved in the project activities. Approval review process of the financial control authority administrative support is provided by the national authorities concerned. MIA is obliged to provide samples of the report, as well as the approval of samples. More detailed provisions are stipulated in the grant agreement with the leading partner. 6. CN financial specialist performed the original inspection report and ensure proper implementation of the project in accordance with the UK approved project description. CN financial specialists can also check if the control measures are carried out and approved according to the (subject to this agreement, the provisions of part 8.) and the required payments or meet the approved project budget of the application. Payments are to be made only in the case where, pursuant to paragraph 2 and 5, the lead partner prepared a progress report shows the progress made in the implementation of the project in accordance with the approved action plan and if the submitted regular progress reports, which are examined and certified by an auditor. Financial specialists can also perform background checks, which are compared to the costs of the project project activities. Pursuant to the Commission Regulation (EC) No 438/2001, in particular its article 4, MI will prepare CN binding guidelines for the examination of the financial report. In addition, before the costs of CN financial funds specialist make sure that enough is compliance with the conditions laid down in the grant agreement, this agreement, KIP, the memorandum of understanding, the relevant EU regulations and the decisions of the authorities of the Member States. After all the checks, financial specialist will inform that payments via the lead partner is subject to the provisions of the grant agreement. 7. in accordance with Council Regulation (EC) No 1260/1999 Article 32 the provisions of paragraph 1, the MI shall ensure that the final recipient of the funds as quickly as possible get yourself due to the structural funds and national co-financing of the payments under the specific work processes. 8. MI ensure that Member States ' authorities if they participate in the management and implementation of the programme (see part 1 of this Agreement), uses a separate accounting system or an adequate accounting methods in all the actions considered as relating to the grant of the aid. 9. Grant agreements are concluded, support funding granted in euros (€). Funds are paid in euros (€) to a specified account of the lead partner. 10. Exchange rate risk managing partner. 11. The support of the Community initiative programme "ESPON 2006" features the lead partner is assigned only to the project described in the approved project application in the UK, which means a grant agreement form an integral part. 7. the security and guarantees and responsibility 1. To minimize the risk of Community funds to be recovered, which lost in the beneficiary or the deficiencies caused by negligence, before the conclusion of the grant agreement requires a disclaimer that in cases where the partner is a legal person or body that is subject to private law, or the natural person, MI of the lead partner's demand the collateral (bank guarantee, payable at first request, or equivalent collateral) that amount is equal to the specified in the grant agreement to be allocated for the project the amount of aid funding. 2. If the partner is a public institution, the responsibility of the relevant authorities to agree to the conditions of the Monitoring Committee, the representatives of the Member States present, to bring the guarantee referred to in paragraph 1 equivalent to security. 3. in accordance with Council Regulation (EC) No 1260/1999, article 38, paragraph 4, the Commission may make observations, particularly regarding the infringements of the financial consequences. These considerations, accompanied, where necessary, a request for corrective measures to remedy the management shortcomings found and prevent irregularities detected which have not yet been corrected. In such cases can be found in conditions that provide for the recovery of Community funds from the final recipient of the aid and the repayment are used to project partners for the financial resources of the Member State concerned, which comply with the established amount of the funds involved in the failure of the Member State concerned, where appropriate, the amount of the provision is also added to the interest per period. Pursuant to the Commission's dokumentu1 Work, it is the responsibility of the Member States carried out in its territory the activities of leading partners even when errors or shortcomings committed project partners from other Member States. 8. the final beneficiaries of assistance financial control 1.6 of this agreement in accordance with part 5 of the regulations will be issued approval for MIA appropriate use of funding. The approval is based on two types of information that helps you check: a) the aid granted funds to the objectives laid down in the grant agreement and the project plan; (b) the progress made in the project), which assumed responsibility for managing partner. (A) the information specified in point) is directly available for MI, in turn, subparagraph (b) of the report) provides the CN VI support, in accordance with the requirements of the evaluation of the UK prepare progress reports. 2. In view of the fact that the Grand Duchy of Luxembourg do not have the right to make appropriate use of Community funds in checking the territory of other Member States, the Member States shall undertake to take all necessary measures to check the use of their territory and prevent potential or remedy existing weaknesses. Thus, MI, in cooperation with the representatives of the UK create a national network of financial control that is embedded in the specific protocol between MI and the above mentioned authorities (see annex 2). 3. the national supervisory authorities are obliged to take responsibility for managing partner Bill financial control in accordance with part 8 of paragraph 1 (a)). MI all Annex 2 financial control authorities ensure a standardised sample so that they could approve the use of appropriate means of assistance. Under this contract, part 6, paragraph 5 of the conditions of the Member State concerned of the inspection body may authorise other auditors lead partner (if necessary, also other partner Member State) financial inspection. The control authorities of the Member State mission is to immediately notify the authorized organization on WMD that delegated financial control responsibilities. Overall, the ESPON 2006 programme does not provide for the cost recovery of financial control. Detailed rules referred to in paragraph 2 of the Protocol. 4. MI duty is to make sure that CN and the authorities of the Member States provides assistance financed from the means of action and measure compliance, conducting internal controls to verify compliance with sound financial management principles and meet the necessary functions and tasks after the reasons and request a receipt from the Commission of the corrective measures (recital and prepared in accordance with Council Regulation (EC) No 1260/1999, article 38, paragraph 4, first subparagraph) or after the receipt of the recommendation on adjustments (prepared in accordance with Council Regulation (EC) No. 1260/1999, article 34 (2)). In carrying out this task, the WMD Act in accordance with the abovementioned articles of the regulation and the terms of this agreement. 9. Help end recipient audit 1. Pursuant to Council Regulation (EC) No 1260/1999, the conditions of the General responsibility for the audit of the initiation of an independent audit authority (Inspection générale des finances-IGF) in the Member State in which the VI/MI, in cooperation with the national audit institutions, entrusted to the Member State concerned to carry out obligations (see annex 3). MI using the audit authorities of Luxembourg IGF support and coordinating their actions with the representatives of the Member States UK, establish a national network of audit, which is mounted in a special protocol, signed by the MI and the above bodies. In addition, MI also has the obligation to ensure a standardized audit sample for approval. CN can give their support to the audit process. 2. the projects Audited (examination of the implementation of the activities in place) selection, audit procedure, financial audit plan shall be established pursuant to the European Commission's audit guidelines and agreement with this part of the audit referred to in paragraph 1 of the interinstitutional network representatives. In the above audit processes to test at least 5% of the ESPON expenditure compounded by throughout the programme period. The Member States ' audit institutions are responsible for the implementation of the audit process in the country concerned, subject to the referred to in paragraph 1, the conditions laid down in the Protocol. Audit carried out during the implementation of the activities of the site by participating in the project manager, is the final recipient of the aid management and control systems in use and practical processes. 3. In accordance with Commission Regulation (EC) No 438/2001, the provisions of chapter IV, random checks to be carried out smoothly with a certain time interval between them throughout the period from 2003 to 2008. The test projects are selected on the basis of a risk analysis. Using the risk-scoring system, among others, will be taken into account in the following risk categories:-project budget (small, medium, large); — the number of project partners; – the EU, engagement; – private law subject lead partners. 4. the national audit authority ensures that all of the ESPON 2006 programme co-financed projects are tested in compliance with the prescribed conditions for receipt of funds, as well as ensure accurate financial statements of expenditure corresponding to the provisions of the grant assistance. In addition, the authorities also make sure about the safety of aid from both the actual and accounting point of view. 5. The managing partners and other project partners are required to ensure access to all relevant information about the project, which is co-financed from the ERDF funds. When auditing responsibilities entrusted to the Department is a private company, which will be audited to ensure the appropriate audit and advisory function (if necessary-also the separation of organization and functional level). These measures concern the staff carrying out the checks and audit tasks to separate them from consulting services, in particular the project management level, thereby reducing conflicts of interest and the risk of failure. 10. payment and recovery of the final beneficiaries of assistance 1. If MI or of any Member State acquires information about the failure, particularly in relation to the lead partner's inappropriate activities with regard to the implementation of the project, and the veracity of this message is approved, it shall without delay inform VI. After receiving news of the VI failures, especially in connection with the managing partner does not appropriate in relation to the implementation of the project, it shall, without delay, inform the UK and its Member States in relation to the CIP and the provisions of this agreement be responsible payment reduction and repayment. 2. VI following the responsible representatives of the UK decision on payment reduction and recovery. Vi/MI, coordinating their actions with the payment reduction and recovery in the case of representatives of the participating Member States UK, implement the necessary measures in relation to the lead partner. 3. If the partner does not comply within the time VI/MI requirements on payment reduction and recovery, the allocated funds are considered lost. (VI) of this fact immediately inform UK and certain Member States involved in the process. 4. in the event of loss of funds VI/MI is entitled to use the financial collateral. (VI) activities outside the country did not go to court with a repayment claim against leading partners. If such measures are necessary to finance the repayment of the proceedings against the leading partner in turn by the Member State concerned. 5. If the representatives of the Member State responsible shall decide payment UK reduction and repayment measures not be imposed, VI/MI is exempt from any of the European Commission and the other Member States concerned, as well as any third party's legal requirements. 6. Repayment claims VI obligation to transmit to the Member States concerned all of the rights linked to the grant agreement, as well as provide all the legal proceedings required information. 7. in urgent cases, you can start VI proceedings, to guarantee repayment of the secured claim (for example, using a temporary injunction) that are aligned with the representatives of the Member States involved in the UK; about the following solutions are immediately brought to the UK. 8. Payment institutions amounts received from repayments of assistance or security funding transferred to the trust account. 9. If the VI/MI help recovery process occurs in spending on legal services, VI/MI reimburse the Member States concerned in accordance with the terms of repayment of the financing. 10. If the VI/MI breaking it and the rules provided for in this agreement, it is valid in cases of reimbursement shall be determined according to the VI/MI sanctions for alleged neglect or shortcomings. 11. Final provisions 1. all KIP and this contract approvals and drawn up communication between the Member States, VI, MI, KN for the management and implementation of the programme of the organisation in English. 2. cooperation between the UK representatives, VI/MI and independent financial control and audit bodies and the relevant Member State VI/MI authorities in each Member State (indicated by this agreement 1, 2 and 3 in the annex) considered sine qua non2 condition, to ensure that all of the ERDF and the national resources of the funded component full control, financial control and audit. 3. If, in connection with this agreement in case of disagreement, the parties they deal negotiation. 4. If the Contracting Parties negotiation fails to achieve a solution, all this contract dispute to be solved by the Luxembourg Court of first instance. 5. This agreement will be interpreted and enforced in accordance with the laws of the Grand Duchy of Luxembourg. 6. This Treaty is signed by the representatives of the Governments of all the Member States, the Republic of Austria, the Kingdom of Belgium, the Kingdom of Denmark, the Republic of Finland, the French Republic, the Federal Republic of Germany, the Hellenic Republic, Ireland Republic, the Italian Republic, the Kingdom of the Netherlands, Grand Duchy of Luxembourg, the Portuguese Republic, the Kingdom of Spain, the Kingdom of Sweden, the United Kingdom of Great Britain and Northern Ireland. The contract drawn up in 15 copies, it shall enter into force after being signed by all Member States, and running around during the IIP to the preparation of the final report (pursuant to Council Regulation (EC) No 1260/1999, article 37) and all programs for termination. 7. Amendment of this Agreement shall be made only upon written agreement of the Member States. 8. All copies of the content of the contract is genuine. Prevail in case of conflict, the text is in English. The Government of the Grand Duchy of Luxembourg, represented by ...
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Place and date: _____ _____ _____ _____ signature: _____ _____ _____ _____ _____ the Government of the Republic of Latvia, represented ...
Place and date: _____ _____ _____ _____ signature: _____ _____ _____ _____ _____ the Government of the Republic of Lithuania, represented ...
Place and date: _____ _____ _____ _____ signature: _____ _____ _____ _____ _____ the Government of the Republic of Malta, represented by ...
Place and date: _____ _____ _____ _____ signature: _____ _____ _____ _____ _____ the Government of the Republic of Poland, represented by ...
Place and date: _____ _____ _____ _____ signature: _____ _____ _____ _____ _____ the Government of the Slovak Republic, represented by ...
Place and date: _____ _____ _____ _____ signature: _____ _____ _____ _____ _____ the Government of the Republic of Slovenia, represented by the ...
Place and date: _____ _____ _____ _____ signature: _____ _____ _____ _____ _____ annex 1: list of Member States providing administrative support VI (usually-UK agents) _____ _____ _____ _____ _____ _____ _____ the managing authority in Luxembourg MINISTÈR DE L ' MARKET DATURA Mike Wagner (Mike Wagner) 1 rue du Plébiscit L-2341 Luxembourg GRAND-DUCHÉ DE LUXEMBOURG Tel: + 352 478-6915 fax: + 352 40-11200 E – mail: isabelle.biever@mat.etat.lu payment authority MINISTÈR DE L ' AFFAIRS Jean-Claude Sin DATURA (Jean-Claude Sinner) 1 rue du Plébiscit L-2341 Luxembourg GRAND-DUCHÉ DE LUXEMBOURG Tel : + 352 478-6916 fax: + 352 40-11200 E-mail: jean-claude.sinner@mat.etat.lu Czech Republic Estonia Hungary Latvia Lithuania Hungary Malta Poland Slovenia Slovakia annex 2: the authorities of the Member States or their delegated institutions that provide administrative assistance in matters of financial control _____ _____ _____ _____ _____ _____ _____ MI Luxembourg responsible for financial control for the management of the network of the Ministèr de l ' Interieur Direction Control of Financier Raymond du Binsfeld (Raymond Binsfeld) L-2933 Luxembourg Tel : 00352-478-4,863 fax: + 352-26202694 e-mail: raymond.binsfeld@dcf.etat.lu Latvia State regional development agency LV 1010 Riga elizabetes 19, Czech Republic Estonia Hungary Lithuania Latvia Cyprus Malta Poland Slovakia Slovenia annex 3: institutions of the Member States or their delegated institutions that provide administrative support in the area of audit _____ _____ _____ _____ _____ _____ _____ authority in Luxembourg, responsible for the audit of the management of the network Ministèr the institution des finances Inspection générale des finances IGF Joan the Varing (Janno a Waring) 2 Rue de la Congregation L-1352 LUXEMBOURG Tel: + 352-478-2782/2750 fax: + 352-478-2673 e-mail: michelle.steichen@igf.etat.lu Latvia regional development and local Government Audit Division of the Ministry of broadcast news 27 EN 1011 Riga, Latvia Czech Republic Hungary Estonia Lithuania Hungary Malta Poland Slovenia Slovakia annex 4: model grant agreement between the managing authority and the managing partner (specify 30.03.2004.)
Annex 5: grant agreement between the managing authority and the managing partner, and the agreement between the lead partner and the project partners annex 6: standard operating procedures between the VI/MI and national authorities ' contribution to a national financial Preparation) control and audit structure of networks for the management of the Luxembourg authorities in response to paragraph 5 of part 1 of the Luxembourg authorities started the implementation of the Protocol for each of the lower levels of the listed tasks and maud in the utilization of standartfom National Membership: – cooperation with the Monitoring Committee-MI with MS-you financial control authority – cooperation between audit performers b) processing of the project grant agreement 1 between the managing authority and the managing partner (include project and the payment plan), decision of the Monitoring Committee to support Transnational projects working group see paragraph 1 of part 6. 2. in accordance with the payment plan for managing partner requires a first payment representing 5% of the project amount. The next payment following the project reports (activity and financial reports), including the approval of the national financial control or they represented and approved auditor, accountant, financial managers, see paragraph 3 of part 6, (Luxembourg financial control framework type approval standard form prepare coordination section). The last 5% of the total amount of the project shall be paid when all control procedures have been completed. 3. Coordination Department Financial Manager check the activity report, the grounds (based on MI prepared guidelines), see part 6, paragraph 5. 4. If all requirements are met, CN financial manager with notify MI MI check corrections and. informed via that down payment; see point 6 of part 6. 5. When the project is completed, the total agreed audit procedure will be applied, see part 9. Interreg IIIB and IIIC 1 obligations of the Member States: the management and control system (DG Regio/B1/G-D (2000) Brussels, 2 b IV 21.5.2001 (rindk. 7)). 2 sine qua non – absolutely necessary condition. Translate. Agreement between the notes. Member States and the Grand Duchy of Luxembourg in its role as the Managing and Paying Authority on the Implementation of the Community initiative "ESPON 2006 programme" Becoming Member States of the European Union, the Republic of Cyprus, the Czech Republic-the Republic of Estonia, the Republic of Hungary, the Republic of Latvia, the Republic of Lithuania -the Republic of Malta, the Republic of Poland, the Slovak Republic and the Republic of Slovenia with a sharp New Members States joining this "agreement between the Member States and the Grand Duchy of Luxembourg in its role as the Managing and Paying Authority on the Implementation of the Community initiative" ESPON 2006 programme "which was signed by the existing 15 Member States when the ESPON 2006 Programme was approved by the European Commission on 03.06.2002. With regards to § 11 (6) of this "agreement" it has to be noted that the ESPON 2006 Programme is in full operation since the day the Commission approved the ESPON 2006 programme. The number of 15 to 25 will be raised from the cop. The New Member States are joining the ESPON 2006 Programme individually by signing and implementing the "agreement". In accordanc with the EU regulations laying down provision on the Gotland, in particular Council Regulation (EC) No. 1260/1999 of 21 June 1999, amended by Council Regulation (EC) 1447/2001 of 28 June 2001, Regulation (EC) No. 1783/1999 of the European Parliament and the Council of 12 June 1999, of Regulation (EC), Commission Regulation (EC) No. 1681/94 of 11 July 1994, Commission Regulation (EC) No. of 28 March 2000, 643/2000, Commission Regulation (EC) No. 1159/2000 of 30 May 2000, Commission Regulation (EC) No. of 28 July 2000 1685/2000 amended by Commission Regulation (EC) 1145/2003 of 27 June 2003, Commission Regulation (EC) No. 438/2001 of 2 March 2001 amended by Commission Regulation (EC) of 27 December 2002 From 2,430/2002 and Commission Regulation (EC) No. 448/2001 of 2 March 2001; the EU Member States, the Republic of Austria, the Kingdom of Belgium, the Kingdom of Denmark, the Republic of Finland, the Republic of France, the Federal Republic of Germany, the Republic of Greece, the Republic of Ireland-the Republic of Italy, the Grand Duchy of Luxembourg, the Kingdom of the Netherlands, the Republic of Portugal, the Kingdom of Spain, the Kingdom of Sweden , the United Kingdom of Great Britain and Northern Ireland, have agreed the Community initiative "ESPON 2006 programme" (hereinafter referred to as "CIP"), approved by the European Commission on They decided to sign a 03.06.2002. Memorandum of Understanding on the joint implementation of the ESPON 2006 programme, defining a Joint Implementation structure which consist of (a) the Managing Authority (MA), the Paying Authority (PA) , Coordination Unit (CU), the Monitoring Committee (MC) and financial control responsibilities. Similar agreements shall be made with the other States participating with the ESPON in a step by step approach according to the provision made by the CIA, ESPON 2006 programme section v. 8. § 1 Management Authority, Paying Authority, Coordination Unit and the Monitoring Committee 1. The Member States designat the "Ministry of the Interior of the Grand Duchy of Luxembourg, the Directorate for Spatial Planning and Urban Affairs DATURA" to act as Managing authority (MA) within the meaning of articles 9 (n) and 34 of Council Regulation (EC) No. 1260/1999 and point 30 of the guidelines for the Community initiative INTERREG III ESPON 2006 programme and the CIA section v. 2. 2. The Partner is the ' Energy designat unit in the Ministry of the Interior "together with the" Central payment structure "for the execution of payments and the" Financial Control structure "in the Ministry of Finance of the Grand Duchy of Luxembourg for the financial control as Paying authority (PA) within the meaning of Article 9 (o) and 32 of the Council Regulations and the prementioned CIA section V. 3. Concerning the task of financial control, the PA is assisted by the "Financial Control structure" in the Ministry of finance. The mentioned "Energy Unit in the Ministry of the Interior" acts as contact point for all general questions related to the PA. 3. For the administrative implementation of the MA sets up and hosts (commissioned to the Centre de recherche Public Henry Tudor, Luxembourg (CRP HT)) a Coordination Unit (CU) according to the CIA. The Coordination Unit will be located at the Office in the Technopor the Schlassgoar in Luxembourg-Esch/Alzette. Further definition of the tasks and responsibilities of the CU, the MA and the PA, as well as the regulations on the supervision and the right to issue instructions to the let down of CU with in the CIA, in the rules of Procedure of the CU and in the rules of Procedure of the Monitoring Committee (MC). Different employees of the Coordination Unit functionally separated will carry out the support to the MA, MC, and the PA, if a sufficient number of staff is available. 4. The MC, on behalf of the Member States, will be responsible for approving financial management and control arrangements of the MA/PA and for establishing the coordination mechanisms of the respectiv with the individual States in which funds the spen, according to the provision made on the tasks of the MC in 35 of the Council Regulation With. (ECU). 1260/1999 and in the ESPON 2006 programme, the CIA section v.1. In consultation with the MA and PA the members States to the appoin bodies and establish financial management and control arrangements in their countries that support the MA and PA, so that these ones may fulfil the aims of the CIA, the line that Community funds and national co-financing funds used efficiently and correctly and the assistance is managed in accordanc with all the applicable Community rules and in accordanc with the principles of sound financial management (point 5 sets out the details). With regards to the particular liabilit and responsibilities to the MA/PA dispos of (a) the right to veto in the MC in those cases, where the MA/PA sees the threat by arrangements made in a Member State, which may cause recourses of ERDF funds from the MA/PA although the initial cause of recourses is outside the responsibility of the MA/PA or in the responsibility of the Member State in question the respectiv. Detailed requirements set out in Commission Regulation 438/01 will apply throughout. The rules of procedure of the MC with a let down in a separate document. 5. According to the provision of Council Regulation (EC) No. 438/01 With 2 every Member State represented by the MC advice of the relevant management and control authorities so they are able to support the MA and the PA in fulfilling their function. Support of encompass administrative assistance for the MA/PA and the preparation of documents for the management, financial control and auditing of the program in the Member States respectively. Cost incurring with the administrative assistance executed either by public or private institutions of the Member States respectively are, in general, borne by the Member State in charge as far as these costs with the explicitly considered in the Technical assistance budget of the CIA. Administrative assistance will be not cessary on the three levels of management, financial control and auditing. (Details also on dealing with costs will be defined in the protocol between the relevant cooperating authorities listed in the annex 1-3, the Luxembourgian authorities will take the initiative to contact the relevant authorities.) The most prominent tasks within this Agreement referring to each of these levels are listed as follows: (a) administrative assistance and cooperation between MS and the management of the MA comes effective in the following events and will be executed by the organisations represented in the MC (listed in annex 1): to clarify the national practices of doing things (see § 3 (3)), check/claim the securities in the case of (a) the recourses of , which cannot be served by the Lead applicant, (see § 7 (1)) and to take the e.g. cessary step (see § 10 (3)), they claim the securities (see § 10 (4)) or the prosecution of "initiat. (b) administrative assistance and cooperation between MS and the ALONG comes effective for the financial control of projects to check the invoices of the lead partners of the projects according to § 6 a network of the responsible financial control structures of the Member States (listed in annex 2). (c) administrative assistance and cooperation between MS and the ALONG comes effective for the auditing according to § 9 (1). The PA (in particular in cooperation with the auditing structure of Luxembourg) initiat a network of the auditing of the responsible structures of the member States (listed in annex 3). 6. According to the provision of Council Regulation (EC) No. 1260/1999, the responsibilities of these authorities have already been stated in Chapter V of the CIA. More precise rules for the services, rights and duties of the MC, MA and PA with a let down below. § 2 the Common administration of national and EU funding 1. The PA to administer both the national and the EU funding in cooperation with the management of the MA. Every year until the end of February, or, in exceptional cases when this is not possible, within one month after the latest of the approval of their national budget, the Member States transfer their national co-financing share of the programme for the coming year on the basis of the financial plan agreed in the MC and on the base of the programme complemen. (see below). 2. The complementary payments by the Member States in their co-finance of the Gotland with the transferred to the PA; payments will be credited to a separate euro-currency (€) account (trust account) and have to be administrated separately as trust funds by the PA. 3. Any interest income earned on the national co-funding must be spen on the operations in accordanc with the decision of the MC in the same way as it applies to the ERDF funding. § 3 Management 1. Without prejudice to article 8 (3) of Council Regulation (EC) No. 1260/1999, the line of the MA and the efficiency of management and correctnes of the program implementation in the Member States. The MA, in co-ordination with the Member State's delegation to the MC, will have the administrative assistance of the òàæó national bodies (see list in Annex 1) for the execution of the management tasks concerning the implementation of the programme. In the case of a representation to MC the administrative assistance to other national bodies within the ESPON framework, any functional interference must be avoided. The task of the MA with: (a) organising, according to point 30 of the guidelines for the INTERREG III Community initiative, the preparation of the decision to be taken by the MC, in particular, considering accepting and giving preliminary assessment of operations proposed for financing or co-ordinating such tasks. (b) setting up a system to gather reliable financial and statistical information on implementation, for the monitoring indicators referred to in article 36, for the evaluation in compliance with articles 42 and 43 of Council Regulation (EC) No. 1260/1999 and for forwarding this data, using where possible computer systems permitting the exchange of data with the European Commission, as defined in article 18 (3) (e) of Council Regulation (EC) No. 1260/1999, (c) adjustment in accordanc with article 34 (3) and the implementation of the programme within the meaning of complemen to article 18 (3), without prejudice to Article 35 of Council Regulation (EC) No. 1260/1999, (d) drawing up and, after obtaining the approval of the MC, submitting the annual and final implementation reports to the the European Commission (article 37 of Council Regulation (EC) No. 1260/1999), (e) organising the mid-term evaluation referred to in article 42 of Council Regulation (EC) No. 1260/1999, in cooperation with the European Commission and the Member States, (f) coordinating compliance with Community policies as stipulated in article 12 and 34 (1) (g) of Council Regulation (EC) No. 1260/1999, (g) coordinating compliance with the obligations concerning publicity referred to in information and in article 46 of Council Regulation (EC) No. 1260/1999 and in Commission Regulation (EC) No. 1159/2000 2. Without prejudice to these provision, the MA shall act in full compliance with the institutional, legal and financial system of the Grand Duchy of Luxembourg (art. 34 (1) subparagraph 2 of Council Regulation (EC) 1260/1999) and in compliance with the legal systems of the Member States. 3. Regarding § 3 of the. (1) (h) the MA designat on or more of the CU person to be responsible for information and publicity and inform the European Commission of those designated. The MA will rely on the administrative assistance of the òàæó national bodies (see list in Appendix 1) to the effective application of ensur all arrangements for information and publicity concerning that rest upon a Commission Regulation (EC) No. 1159/2000 and to collaborat with the European Commission. 4. According to article 7 (3) of Commission Regulation (EC) No. 438/2001 the MA will rely on the administrative assistance of the òàæó national bodies (see list in Appendix 1) to certify that in each Member State there are procedures to ensur that documents that the relevant expenditure is incurred and the specific payments made under the assistance and required for a sufficient audit trail are held to in accordanc with the requirements of article 38 (6) of Council Regulation (EC) 1260/1999 and with Annex I to Commission Regulation (EC) No. 438/2001 the MA shall also satisfy itself, that a record is maintained of the body holding documents ready for further inspection and its location and that the documents are made available for inspection by the persons and bodies mentioned in article 7 (3) (c) of Commission Regulation (EC) No. 438/2001. In the standard case and according to subsidy contract the Lead partner has the liability of keeping the documents ready (see § 6). The trail of financial control and auditing is further described in § and § 8, 9.5. According to article 9 (3) and (4) of Commission Regulation (EC) No. 438/2001 the MA of ensur that the PA as stated in § 3 of the. 2 is the skipper informed of the procedures operated by the MA to verify the delivery of the products and services and the co-financed expenditure claimed, it is the reality of ensur is compliance with the applicable rules, and to maintain the audit trail, so that the sufficiency of the control systems and the audit trail can always be taken into account before a statement of expenditure is presented to the European Commission. 6. The Coordination Unit is assisting the MA in the execution of these tasks. Details of the delegation of tasks to let down in the rules of procedure for the Coordination Unit. § 4 payments between EU and Paying Authority 1. After the MA drafted a financial forecast with the support of the CU and the M.C. took a decision, the PA applies for contributions from the Structural funds and also send the updated forecasts of applications for payment for the current year and the forecast for the following year to the European Commission from later than the end of February of each year. 2. The PA, in their article 32 pursuan to (6) of Council Regulation (EC) No. 1260/1999, issues the certificates and declarations referred to in article 32 (3) and 32 (4) of this Regulation. The certificates of statements of interim and final expenditure referred to in the e-mail of the articles shall be drawn up in the form prescribed in Annex II of Commission Regulation (EC) No. 438/2001 by the PA. According to article 9 (1) of the aforementioned Regulations the Department is responsible for this task is the financial control (see annex 2). Check the referring it with the 15 of the aforementioned Regulations with in the development of the auditing structure (see annex 3), which is functionally independent of any services that approve of the by the claims. 3. Before certifying a given statement of expenditure, the PA shall satisfy itself by request that the MA has fulfilled the requirements of Council Regulation (EC) No. 1260/1999, in particular articles 38 (1) (c) and (e) and article 32 (3) and (4a, b) and observed the terms of the Commission's decision under article 28 of the aforementioned Regulation, and that the statement of expenditure includes only expenditure of, (a) that has been actually effected within the eligibility period to let down in the decision in the form of expenditure by final beneficiar a , within the meaning of paragraphs 1.2 and 1.3 and 2 of rule 1 of the Annex to Commission Regulation (EC) No. 1685/2000, which can be supported by receipted invoices or accounting documents of equivalent probativ value, (b) that has been incurred in operations that were selected for funding under the particular assistance concerned in accordanc with its selection criteria and procedures and have been subject to Community rules throughout the period during which the expenditure was incurred, and (c) from the measure for which all State aid has been formally approved by the Commission , where relevant. 4. Article 15 of Pursuan to Commission Regulation (EC) No. 438/2001 the PA, will supply the Department designated to issue declarations on winding-up of assistance under article 38 (1) (f) of Council Regulation (EC) No. 1260/1999 with all information required and will give access to the records and supporting evidence without drawing up the cessary for declaration. Information on expenditure, which is covered by the Grand Duchy of Luxembourg on its own behalf such as the financing of the CUT in access to the CIA, is not subject to the mentioned access to records. 5. According to article 32 (1) of Council Regulation (EC) No. 1260/1999, the payments by the European Commission of the contribution from the Structural Funds are transferred to the PA; payments will be credited to a separate euro-currency (€) account (trust account) and have to be administrated separately as trust funds by the PA. 6. Any interest income earned on ERDF funds must be spen on the program operations in accordanc with the decision of the MC, in the same way in the circle to the national co-financing. 7. In accordanc with article 8 of Commission Regulation (EC) No. 438/2001 the by keep an account of the non recoverabl from payments of Community assistance already made and ensur, with the administrative assistance of the òàæó national bodies (see list in Annex 1) that the non-recovered with without unjustified delay. 8. The PA shall send the Commission once a year, in annex to the fourth quarterly report on the supplied under Commission Regulation recover (ECU) 1681/94, a statement of the awaiting recovery at that non of the data, by the year of initiation Classifieds of the recovery proceedings. § 5 Reporting duties and rights between EU, auditing and Monitoring Committee and the Managing and payment Authority 1. The MA after preparation by the PA shall present proof on the use of the funds to the Member States once a year by July 31st of the following year. 2. The PA, on behalf of the MA, shall draw up the project oriented annual survey for the Member States on the commitment and payments in compliance with the standard model of the EU. Upon special request of a Member State, due to the national law of the Member State, the PA will produce reports, showing relevant data on projects and expenditure in respect of the Member State. 3. The PA shall verify the use of the funds essentially merely based on the project related progress reports (prepared by the LP, and evaluated by the CU on behalf of the PA) and audited invoices presented by the final beneficiary as defined in the. line of 4 and 31 5 of the Communication from the Commission to the Member States of 28 April 2000 laying down guidelines for the INTERREG III Community initiative and § 5 (2) and (5) of this agreement. Should there be any suspicion of irregularit to the PA shall notify the members of the MC representing the Member States affected without delay. 4. The responsible EU auditing bodies and the auditing bodies of the Member States in the scope of their responsibilities with the entitled to examin the proper use of the funds by the Lead Partner in their country respectively (see § 9 below). The Member States and the PA shall mutually inform each other support and in the course of the auditing of funds as allocated. 5. The responsible EU auditing bodies, the Inspection Général des finances – (IGF) Luxembourg and the network partners in the member States (annex 3) is entitled to audit the use of the funds as agreed upon at their expense at the premise of the PA or to have this carried out by an appointe ... The PA, the PA, the Lead partner and the project partners shall place all required documents at their disposal and give any required information and allow access to it for the business premise. The audit solely covers the use of the funds in the scope of the Community initiative programme "ESPON 2006 programme ', not however, any other financial or economic management of the PA. 6. The PA shall take care that the subsidy contract, which has been concluded with the Lead Partner, grant all inspection rights to the auditing bodies. § 6 the contract with payments and their beneficiar a beneficiar 1. Based on the decision of the MC the MA conclud a subsidy contract in its own name with the Lead Partner. The MA will use a model subsidy the contract approved by the MC (see annex 4). When concluding the subsidy contract the MA may note deviat from the ruling of the MC. 2. Before the MA conclud the subsidy contract, the PA, with the administrative assistance of the òàæó national bodies (see list in Annex 1), that the verif Lead Partner gathers all the legal and organisational conditions needed for the execution of the projects. Particularly, it makes sure that the Leader Partner and its partners maintain a separate accounting system or an adequat accounting code for all transactions relating to the assistance. If the control by the PA results in the requirements for the conclusions not being fulfilled, it will without delay inform the MC via the MA. 3. Apart form (a) the first payment the Lead Partner may only request payments by providing proof of progress as described in the action plan and project the subsidy contract, which is part of the approved application. Therefore the LP has to present progress reports to the coordination unit as stipulated in the CIA, which are annexed to the contract and subsidy will be available on the Program's homepage. The first progress report (see point 5 for details) must be submitted to the CU at the latest six months after the start of the project according to the approved action plans. Subsequently progress reports have to be submitted every six months, as fixed in the subsidy contract. Payment claims require the approval of the financial control according § 8 of this agreement. 4. For payments (a) the similar procedure to the one established in the Council Regulation (EC) No. 1260/1999, laying down the general provision on the Structural Funds-art. 32. is agreed:-a kick off payment on account of 5% of the total assistance; -followed by interim payments, it is actually paid, the expenditure reimburs eventually based on a fixed calendar (every six months) after the presentation of the synthetic progress reports; -presentation of annual implementation reports; -establish that the combined total of the payments on account and of the interim payments shall not exceeds 100 95% of the total assistance; – the balance of 5% is paid, after the presentation of the final implementation report and of the certified statement of expenditure and after ensuring compliance with the applicable rules, within six months after the conclusion of the project. 5. The progress reports and the final report of an activity report consis and a financial report, including a table indicating the reporting period and the adjustments relating to òàæó of each budget line. The approval of the financial control (in English language), which has to be signed by an auditor, accountant or financial manager independent from the project activities, which is acknowledged by the financial control structure, with the administrative assistance of the òàæó national bodies (see § 9), has to be added to the financial report. The PA will provide model reports, including a model confirmation. Details with the defined in the subsidy contract with the Lead Partner. 6. The financial manager of the CU will first check the reports and monitor the proper implementation of the project as approved by the MC. The financial manager of the CU may check the whethers control is properly done and testified (according to § 8 of this Agreement) and if the requested payments are within the budget lines of the approved application. Payments may only be made if the Lead Partner's progress report provides proof of the progress of the project within the approved action plans by presenting regular progress reports audited and confirmed by the auditor mentioned in point 2 and 5. The financial manager also may check the plausibility of the undertak comparing the project's expense with the òàæó project activities. The PA will prepare guidelines in accordanc with Commission Regulations (EC) 438/2001, in particular article 4 thereof, for the checking of the financial reports, which will be binding for the CU. Furthermore, before paying out the funds to proper compliance with the conditions stated in the subsidy contract, in this agreement, the check of the CIA, the memorandum of Understanding and the relevant EU-regulations and Decision by the national authorities shall be ensured by the financial manager of the CU. After all is done, check with the financial manager will notify the MA, that payments can be effected to the Lead Partner in accordanc with the subsidy contract. 7. Article 32 Pursuan to (1) of Council Regulation (EC) No. 1260/1999, the PA to ensur that the final payment of beneficiar receive their contributions from the Structural funds and national cofinanc quickly as possible and the axis in full according to the work in progress ". 8. The by-line that the national bodies if they take part in the management and implementation of the funding (see § 1 (5)) maintain either a separate accounting system or an adequat accounting code for all transactions relating to the assistance 9. The subsidy contract is concluded in euro (€). Funds will be disbursed in euros (€) to an account named by the Lead Partner. 10. The rate of exchange risk is borne by the Lead Partner. 11. The subsidy from the funds of the Community initiative programme "ESPON 2006 programme" will be awarded to the Lead Partners exclusively for the project as described in the application approved by the MC, which is an integral part of the contract. § 7 the Securities and guarant irregularit and liabilit, to 1. In order to the minimis risk of non-recovery of the Community funds lost as a result of an irregularity committed by a non-gligenc or final beneficiary, it shall be stipulated that in cases where the Lead Partner is a legal entity or a body governed by private law or a natural person, the PA shall insis on presentation by the Lead Partner of a security (bank guarantee upon first request or equivalent security) amounting to the total subsidy as givens in the subsidy contract for the project prior to conclusion of the said subsidy contract. 2. In the case where the Lead Partner is a government institution, shall be subject to agreed with the representation of that Member State in the MC will confirm the liability of this institution. in order to achieve an equivalent security as mentions in point 1.3 According to art. 38 (4) of Council Regulation (EC) No. 1260/1999, the European Commission may make observations, particularly regarding the financial impact of any detected, and to request irregularit for a measure to remedy the correctiv management shortcomings found and correct any irregularit. In such cases it may happen that it does not become it the cessary reimburs Community funds and that it will be impossible to get the funds back from the final beneficiary, the reimbursemen will be supported by financial means of the member States having partners involved in the projects, equal to those in non resulting from the detected in each member State irregularit , added by the charge of interests, where appropriate. Referring to the Commission's Working paper1 the responsibility of each Member State lies with the operations managed by the Lead partners based on their national territory even in cases where errors or is committed by irregularit with project partners from other Member States. § 8 the Financial control of beneficiar a 1. The PA will draw up the certificate of the proper use of funding according to § 6 (5). The certificates built on two kind of information to check: (a) the use of the subsidy for the purpose mentioned in the subsidy contract and the project plan, and (b) the progress made by the project under the lead partner. Information on the a) is directly accessible by the PA whereas information on b) will by provided by the MA with the support of the CUT by the evaluation of progress reports prepared according to the demand of the MC. 2. Taking into account that the Grand Duchy of Luxembourg has not the competence to check the proper utilisation of the Community funds on the territory of the other Member States , the Member States shall take the measure of control it cessary the utilisation of the funds on their territory as well as to prevent and to take action against irregularit. Therefore the Interreg IIIB and IIIC 1 by Member States responsibility: management and Control System (DG Regio/B1/G-D (2000) Brussels, point 2 b IV 21.5.2001 (p. 7) in co-ordination with the member State's delegation to the MC, establish a network of the financial control bodies of all member States, that will be settled through a specific protocol between the PA and those bodies (see annex 2). 3. It is the task of the national control structure to the undertak financial control of the invoices of the Lead partners referring to § 8 (1) (a). The PA provides a standardised form to all financial control bodies mentioned in annex 2 for the proper approval of the appropriate use of funding. According to § 5 (5) the national control structure may authoris other auditor for the financial control of the LP and the other partners if not cessary of their country. It is the responsibility of the national control structure it immediately notified the PA about an organisation. In general, the of reimbursemen cost incurring with the financial control is not considered in the ESPON 2006 programme. Details are settled in the protocol mentions in point 2 4. The PA has the task to verify that the CU and the national bodies ensur correctnes of the operations financed under the assistance particularly by implementing internal controls in keeping with the principles of sound financial management and acting in response to any observations or requests for a measure adopted by pursuan correctiv to article 38 (4), first subparagraph, or recommendations for adjustment made under article 34 (2) of Council Regulation (EC) No. 1260/1999 in accordanc with the provision of those articles and the stipulation of the made in this agreement to the Auditing of beneficiar 1 § 9. With reference to Council Regulation (EC) 1260/1999 the overall responsibility for the promotion of audit lean with the independent audit structure in the Member States of the MA/PA (Inspection générale des finances-IGF) in co-operation with the respectiv national audit authorities nominated by the Member State (see annex 3). The PA, with the support of the Luxembourg auditing authority, in co-ordination IGF and with the member State's delegation to the MC, organise a network of the national auditing authorities, which will be settled through a specific protocol between the PA and those bodies. It also provides a standardised form for the approval of the auditing. The CU may assist the auditing process where appropriate. 2. The selection of projects to be audited (on site), method/way of the auditing procedure, drafting a financial auditing plans will be done in accordanc to the audit guidelines of the European Commission and should be coordinated in the network mentioned in point (1). These audits will cover at least 5% of the ESPON – program expenditure of over the entire program period. National auditing authorities are responsible for the auditing in their country, in the terms established in the protocol mentioned in point 1. Audit will be done of the management and auditing procedures of the beneficiar and they will be done on site with the project manager. 3. Sample check on operations according to Chapter IV of Commission Regulation (EC) No. 438/2001 will be carried out at even intervals, spread over the years 2003 to 2008. The basis for the selection of projects will be checked (a) risk analysis. Using a risk point system the following categories of risk will be taken into account, among others: § budget size (small, medium, large) of the project, § number of project partners, § participation of the Non Member States, governed by private law § LP. 4. The different national public audit bodies shall ensur that for all projects co-financed under the ESPON 2006 programme, the verification of the compliance with the terms and conditions for assistance under the programme as well as correctnes of financial statements with regards to expense of settled eligible for assistance. Furthermore they shall verify that assistance funds are continuously safe both in the factual and accounting terms. 5. The Lead Partner, and the respectiv the other project partners, shall be obliged to make available at all times in all relevant information at the project level for co-financed projects for ERDF in agreement with the MA/PA to the European Commission. In case the auditing is delegated to a private company to a Department within the audited institutions shall be taken care to ensur the proper separation (and if applicable, also the organisational and functional separation) of the personnel conducting the audit and auditing tasks from the project activities and, in particular consulting, from the project management in order to avoid conflicts of interests and to reduce the risk of irregularit. § 10 cut and recover of payments it. If the beneficiar to 1 OVER or any Member State gains knowledge of irregularit, especially regarding inappropriate implementation by the Lead Partner, and being those to actually confirmed by irregularit with the administrative assistance of the òàæó national bodies, it shall without delay inform in the first instance the MA. After the MA gain knowledge of irregularit, especially regarding inappropriate implementation by the Lead Partner, it shall without delay inform the MC and those Member States who would be liabl in case of a cut and recover according to the regulations of the CIA and this agreement. 2. The MA, after informing the members of the MC representing those Member States, who would be liabl, shall decide on the cut and recover. The MA/PA has it not the cessary undertak steps with respect to the Lead Partner in the agreement with the members of the MC representing the Member States concerned in such case of a cut and recover. 3. Should a Lead Partner not comply with the demand of cut and recover by the MA/PA within the set time, a loss shall be assumed as established. The MA shall without delay inform the MC and those members of the MC representing the Member States that are affected. 4. In case of a loss the MA/PA is entitled to make use of the securities presented. The MA does not demand of the asser recourses before the Court with respect to the Lead partners outside its own country. If such action has to be emerge recourses of the asserted by the Member State of the Lead Partner. 5. Should the members of the MC representing the Member States concerned decide that a cut or recourses is not to be effected, they shall release the MA/PA from any demand whatsoever from the European Commission, from the Member States concerned, from the other Member States and from other third parties for whatever legal reason. 6. In the case of (a) the right of the recourses MA is obliged to transfer all rights arising from the subsidy contract to the Member States affected and to put all the information for the legal prosecution cessary not at their disposal. 7. In urgent cases the prosecution it safeguards initiat Maya MA recourses of demand (e.g. interim injunction) in agreement with the members of the MC representing the Member States concerned; It tells of the MC in this respect without delay. 8. The sum received by the PA from the recourses of subsidize to or from the ex-ploitation of securities with to be credited to the trust account. 9. Should expense for legal advice or legal charges «arise for the MA/PA in the scope of a right of recourses, then these are to be reimbursed to the MA/PA by those Member States as would be effected by (a) the right of recourses. 10. As far as the MA/PA contraven the legal provision or the duties as defined under this agreement, this is to be considered in the case of a right of recourses, and a possible contributory not gligenc of the MA/PA is to be charged. § 11 agreement 1. All communications between Members States, MA, PA and CU and all certifications mentioned in the CIA and in this agreement, and all communications not cessary to manage and implementations that the program with in English language. 2. The cooperation between the members of the Monitoring Committee, the MA/PA and the independent financial control and audit structure in the member States of the country of the MA/PA, and the respectiv national bodies in each Member State, identified in the annex of 1.2 and 3 of this agreement represent a condition sine qua non in order to secure a complete management , financial control and audit of all co-financed by the ERDF parts and national funds. 3. Where «arise out of or dispute in connection with this memorandum of Understanding, the partners shall seek an amicabl solution. 4. Should the Partner file to reach an amicabl solution, all arising out of a dispute or in connection with this memorandum of Understanding shall be settled by the competent to the jurisdiction of the District Court of Luxembourg in the first instance. 5. This agreement shall be governed in accordanc with the laws of the Grand Duchy of Luxembourg –. 6. This agreement shall be signed by representatives of the Governments of all Member States, the Republic of Austria, the Kingdom of Belgium, the Kingdom of Denmark, the Republic of Finland, the Republic of France, the Federal Republic of Germany, the Republic of Greece, the Republic of Ireland-the Republic of Italy, the Kingdom of the Netherlands, the Grand Duchy of Luxembourg -the Republic of Portugal, the Kingdom of Spain, the Kingdom of Sweden, the United Kingdom of Great Britain and Northern Ireland in the 15 original. It shall enter into force on the date of the last signature and shall apply for the duration of the implementation of the CIA, including the preparation of the final report according to art. 37 of Regulation 1260/1999 and the winding-up of the whole program. 7. This agreement may be amended only in writing and in the agreement between the Member States. The Government of the Grand Duchy of Luxembourg represented by the ...
Place and date: _____ _____ signature: _____ _____ _____ the Government of the Republic of Cyprus represented by the ...
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Place and date: ____ _____ __ signature: _____ _____ _____ Annex 1: list of assisting the national authorities for administrative assistance for the MA (in the standard case the Monitoring Committee members) MINISTÈR DE Luxembourg's Managing Authority L ' Mr. Mike Wagner HOME DATURA 1 rue du Plébiscit L-2341 Luxembourg GRAND-DUCHÉ DE LUXEMBOURG Tel: + 352 478-6915 Fax: + 352 40-11200 E – mail: isabelle.biever@mat.etat.lu Paying MINISTÈR DE L ' coordination Authority AFFAIRS Mr. Jean-Claude DATURA Sinners 1 rue du Plébiscit L-2341 Luxembourg GRAND-DUCHÉ DE LUXEMBOURG Tel: + 352 478-6916 Fax: + 352 40-11200 E-mail: jean-claude.sinner@mat.etat.lu Cyprus Czech Republic Estonia Hungary Latvia Lithuania Malta Poland Slovakia Slovenia Annex 2: list of national authorities or their delegated institutions providing administrative assistance for the financial control of the Luxembourg representatives as the OVER the Head of the network of financial control Directorate of Ministèr de l ' Interieur du Control of Financier Raymond L Binsfeld, Luxembourg Tel: 00352 478-2933-Fax: + 352-4,863 26202694 Email : raymond.binsfeld@dcf.etat.lu Latvia Latvia State Regional Development Agency elizabetes str. 19 LV 1010 Riga, Latvia Cyprus Czech Republic Estonia Hungary Lithuania Malta Poland Slovakia Slovenia Annex 3: list of national authorities or their delegated institutions providing administrative assistance for auditing the Luxembourg representative as the Head of the network of Ministèr des finances auditing Inspection générale des finances IGF Director Janne the Waring of the 2, rue de la Congregation L-1352 LUXEMBOURG Tel : + 352-478-2782/2750 Fax: + 352-478-2673 Email: michelle.steichen@igf.etat.lu Latvia Ministry of Regional development and Local Governments in the Audit Section Lacples str. 27 LV 1011 Riga, Latvia Cyprus Czech Republic Estonia Hungary Lithuania Malta Poland Slovakia Slovenia Annex 4: Model Subsidy contract between Managing Authority and Lead partner (updated 30.3.2004) Annex 5: Subsidy contract between the Managing Authority and the Lead partner and the Lead Partner and the project partners Annex 2: Standard procedures between MA/PA and beneficiary involvement of national authorities, a) Preparation of the network cooperation of national financial control and auditing structures under the lead of the Luxembourg authorities Referring to § 1 (5) initiated by the Luxembourg Authority establishment of a protocol for each of the levels indicated below on the common approach, the standard form for the achievement of the tasks in a decentralised way and the distribution of cost: § Cooperation between Member States in the Monitoring Committee § Cooperation between MS and the ' OVER financial control of the Co-operation of § auditing bodies. (b) the Processing of projects) 1. Subsidy contract between MA and LP (includes project and payment plan), see § 6 (1) after the MC decided to support a working group and a Transnational project. 2. According to payment plan the LP claims the first kick-off payment of 5% of the project and after that a sum payment by presenting a progress report (activity and financial report), see § 6 (3), including a confirmation by the national financial control structure or an auditor, accountant or financial manager, which is acknowledged by the national financial control structure (standard form will be provided by the Luxemburg financial control structure model of confirmation prepared by the CU). The last 5% of the sum is paid out project after all control procedures are finalised. 3. the Financial manager of the CU check activity report, plausibility check (on the basis of binding guidelines prepared by the PA), see § 6 (5). 4. If all requirements are met, the financial manager of the CU will inform the PA. The OVER check the notify the correctnes and MA the Lady the payment; see § 6 (6). 5. After the project is finished auditing procedures according to the agreed common approach will beaffected, see § 9.