EU Financial Regulation, grants

Question 1

How is an EU grant awarded? Grant applications are received in response to what?

a. call for proposals
b. call for tenders

Answer 1

a. call for proposals

Question 2

What are the principles of Call for Proposals? What are the principles of grant management?

Answer 2

1. equal treatment of all applicants or beneficiaries
2. non-cumulative: each beneficiary may not get more than one grant per action or per financial year
3. non-retroactive: actions already completed are excluded from EU funding
4. co-financing: the Commission and the beneficiary will share the costs
5. non-profit: grant beneficiaries may not generate profit with the EU grant they receive.

Question 3

What are the criteria used by the evaluators during the selection procedures of a grant?

Answer 3

X a. Efficiency, Effectiveness, Relevance + impact (utility) and sustainability;

b. E, E, R + environment;
c. E,E,R +

N.b.: the principles are Efficiency, Effectiveness, Relevance, Utility, Sustainability

Question 4

On what criteria is a grant given?

Answer 4

1. Eligibility, exclusion and selection criteria (= applicants)
2. Award criteria (= proposals)

Excellence, impact, and quality and efficiency of implementation

Question 5

How does expert selection work?

Answer 5

Institutions publish regularly calls for expression of interest detailing the selection criteria, the required expertise, the description of the tasks, their duration and the conditions of remuneration.
Principles: equal treatment, no conflict of interest.

Question 6

After the evaluation of a grant, what do you do next?
a. you inform all applicants;
b. you inform the awarded applicants first, so that they prepare the grants agreement;
c. you inform the non-awarded applicants;
d.

Answer 6

b. you inform the awarded applicants first

Question 7

What is NOT true about grants?

Answer 7

Commission is owner of product.

Question 8

Who is the product/property/goods owner in grants?

Answer 8

The beneficiary. (vs. procurement: COM owns)

In the case of procurement, the Commission obtains a product or service it needs in return for a payment, while in the case of a grant it makes a contribution either to a project carried out by an external organisation or to the functioning of that organisation because its activities contribute to Union policy aims.

Question 9

Which principles have to be followed by experts during project evaluations?

Answer 9

1. CIRCUMSPECTION: which is about stopping and reflecting on the possible consequences and implications of potential actions, showing a degree of moderation and a sense of proportion and propriety.
2. INDEPENDENCE: staff conduct and decision making should be determined by the need to serve the common good and public interest, and never by any other interests whether private or as a result of, for example, political pressure.
3. IMPARTIALITY: staff members should be unbiased in any decisions they are called upon to make.
4. LOYALTY: loyalty towards the Commission is essential for maintaining its independence and achieving its objectives. It is also necessary for the functioning of each service.
5. OBJECTIVITY: any conclusions drawn should be balanced and based on a thorough analysis of the facts and legal background.
6. RESPONSIBILITY: which is about carrying out those tasks entrusted to you as dutifully as possible and looking for solutions when difficulties are encountered. It is also important to know and respect the legal obligations and administrative rules and procedures in force.

The key principles can be summarised as INTEGRITY, which means consistently adhering to ethical principles and making sound decisions based on these.

Question 10

What does co-financing mean?

Answer 10

The EU and the beneficiary share the costs.

Question 11

What is the next step after the signature of the grant?

Answer 11

a. Evaluation
b. Commitment
X c. Pre-financing
d. …

Question 12

When is pre-financing made?

Answer 12

After evaluation and the signature of the contract.

Question 13

In what currency is the grant given out?

Answer 13

Euro

Question 14

What type of payments do EU grants have?

a. direct debit
b. direct debit and interim payments
c. pre-financing, interim payments and final payment

Answer 14

a. direct debit
b. direct debit and interim payments
X c. pre-financing, interim payments and final payment

Question 15

What is pre-financing?

Answer 15

An advance payment.

It is a payment to provide the contractor or beneficiary with a cash float for the implementation of the action. It is a payment that is therefore done before the work has been done by the contractor or beneficiary.

Question 16

Who owns a pre-financing?

Answer 16

Answers:
X a. the Commission until the beneficiary demonstrates that the work was done;
b. the Coordinator until it further disburses it to the other beneficiaries; c. …; d.

Since the payment was done without the work being done, the money paid is considered as property of the Commission.

Question 17

When is pre-financing given?

Answer 17

a. after the grant is awarded, so the implementing partner has security
X b. after the contract is signed so that activities can start

Question 18

When are interim payments paid in grants?

Answer 18

After verification that conditions of the grant are fulfilled and the costs are actually eligible.
Based on progress reports.
It is the payment for an intermediate product/result.

Question 19

With regard to grants and public procurement, are losses as a result of exchange-rate fluctuations considered eligible expenses?

Answer 19

No.

A reserve for contingencies and/or possible fluctuations in exchange rates not exceeding 5% of the direct eligible costs may be included in the budget for the Action, to allow for adjustments necessary in the light of unforeseeable changes of circumstances on the ground. It can be used only with the prior written authorisation of the Contracting Authority, upon duly justified request by the Coordinator.

Question 20

What are Simplified Cost Options?

Answer 20

1. Unit costs (standard scale) - fully justified on a real cost basis
2. Lump sums - fully justified on a calculated basis
3. Flat rate - partly justified on a real cost basis.

Other options:

• Reimbursement of actually incurred costs
• Financing not linked to costs

Question 21

What are actually incurred costs?

Answer 21

Costs 1. actually incurred 2. by the beneficiary 3. during the action duration

Question 22

For the same project the same beneficiary may receive one grant or multiple grants?

Answer 22

1 grant/beneficiary/action.

Each beneficiary may not get more than one grant per action, or not more than one operating grant per financial year.

Question 23

You receive a letter from a grant beneficiary in your capacity as an EC project officer. What is your reply deadline?

Answer 23

15 working days.

An extension of 15 further working days can be applied,

Question 24

What are eligible costs?

Answer 24

1. Incurred by the beneficiary during the duration of the action
2. Indicated in the estimated overall budget for the action
3. Necessary for the implementation of the action
4. Identifiable and verifiable
5. Comply with applicable tax and social legislation
6. Reasonable, justified, comply with SFM (economy and efficiency)

Question 25

What is a contingency reserve?

Answer 25

The contingency reserve is to be used during the course of the implementation of the project to meet unforeseen costs required to deliver project results and meet stated objectives. The contingency reserve can only be used after PRIOR approval by the EU.

Question 26

Which costs can be considered in a 10% contingency?

a. Unforeseen costs
b. Indirect costs
c. Direct costs.

Answer 26

a. Unforeseen costs

Question 27

In an ongoing grant if you notice an irregularity in the implementation of activities, what do you do?

Answer 27

a. you officially notify the beneficiary, ask them to rectify the irregularity and re-launch the project
b. you report the case to OLAF
c. you stop the payments
(d. something plausible)

Inform the beneficiary and suspend the payment.

Question 28

In an ongoing project, if you notice that an important part of the activities was not implemented, what do you do?

Answer 28

a. If the beneficiary submitted a request for payment, you block the payment
b. Pay because the project is not yet finished so the work still can be done;
c. Do not pay any costs claimed by the beneficiary;
d. Do not pay the part claimed for this not implemented part and do a reminder to the beneficiary on contractual obligations.

Options: terminate the agreement, apply penalty, reduce the grant.

Question 29

What will you do at the end of the project if this project has not fulfilled all the obligations mentioned in the Grant agreement?

Answer 29

Suspend the grant wholly or partially.
Don’t pay the costs that are unduly justified.
The Commission may proceed with an interim payment in part if some reports or deliverables are not submitted as required, or only partially or conditionally approved.

Question 30

What is the last step of the grant cycle?

a. commitment
b. award decision
c. pre-financing
d. Final payment

Answer 30

d. Final payment

Question 31

When can money for grants be suspended?

Answer 31

1. if the work carried out does not comply with the provisions of the grant agreement;
2. if a beneficiary has to reimburse to its national state an amount unduly received as state aid;
3. if the provisions of the grant agreement have been infringed or if there is a suspicion or presumption thereof
4. if there is a suspicion of irregularity committed by one or more beneficiary(ies) in the performance of the grant agreement;
5. if there is a suspected or established irregularity committed by one or more beneficiary(ies) in the performance of another grant agreement funded by the general budget of the European Union or by budgets managed by it. In such cases, suspension of the payments will occur where the irregularity (or suspected irregularity) is of a serious and systematic nature which is likely to affect the performance of the current grant agreement.

When the Commission suspends the payment the consortium shall be duly informed of the reasons why payment in whole or in part will not be made.

Question 32

What to do as an adviser if the grant receiver does things that go beyond the objective of the project, or if they haven’t delivered in a part of the project?

Answer 32

Suspend the payment and inform the consortium.
The Commission may proceed with an interim payment in part if some reports or deliverables are not submitted as required, or only partially or conditionally approved.

Question 33

When is the final payment given in a grant?

Answer 33

a. upon receipt of final report
b. after review and approval of final report and financial statement
c. automatically on the last day of the project

Question 34

f a beneficiary presents expenditure that is not necessary for the project implementation, what do you do?

Answer 34

Not approve.

All costs must be necessary in order to be eligible.

Question 35

Can the Court of Auditors audit a grant?

Answer 35

Yes. ECA checks any person or organisation handling EU funds – including spot checks in EU institutions (especially the Commission), EU countries and countries receiving EU aid.

Question 36

Ex-post evaluation of a project is defined as?

Answer 36

To assess whether a specific intervention was justified and whether it worked (or is working) as expected in achieving its objectives and why.

Question 37

When can an audit be performed in a grant?

a. at any time;
b. before the implementations starts;
c. after the implementation finishes;
d. …

Answer 37

a. at any time;

Question 38

What is the principle of sound financial management?

Answer 38

1. Budget appropriations must be used in accordance with the principles of economy, efficiency and effectiveness.
2. Specific, measurable, achievable, relevant and time-bound objectives shall be set for all expenses covered by the budget.
3. The achievement of those objectives shall be monitored by performance indicators.
4. Ex-ante and/or ex-post evaluations need to be carried out.

Economy: the resources used by the institution in the pursuit of its activities shall be made available in due time, in appropriate quantity and quality and at the best price.
Efficiency: the best relationship between resources employed and results achieved.
Effectiveness: the attainment of the specific objectives set and the achievement of the intended results.

Question 39

What are the principles of budget management?

Answer 39

1. Unity and budget accuracy (single budget document)
2. Annuality
3. Equilibrium
4. Unit of account (everything in euro)
5. Universality (total revenue vs total expenditure)
6. Specification (given purpose and being assigned to a specific objective)
7. Sound financial management
8. Transparency

Question 40

What is fraud?

Answer 40

A deliberate act of deception intended for personal gain or to cause a loss to another party.

Question 41

What is conflict of interest?

Answer 41

Anything that can impede impartial judgment: personal, professional ties. May concern only the agent of the contracting authority.

A conflict of interest generally refers to a situation where the impartiality and objectivity of a decision, opinion or recommendation might be perceived as being compromised by a personal interest held or entrusted to a given individual.

Question 42

What happens if during the evaluation of a grant it turns out that the evaluator has a conflict of interest?

a. you go to OLAF
b. evaluator must stop work immediately
c. evaluator must stop work immediately, but the work already accomplished can be taken into account
d. if evaluator admits to conflict of interest in the process, he can continue work

Answer 42

b. evaluator must stop work immediately.

CoI experts shall not evaluate the proposal.

Question 43

On what basis can you exclude an evaluator?

a. Conflict of interest
b. Gender
c. Non-EU citizenship
d. None of the above

Answer 43

a. Conflict of interest

Question 44

What is the 4 eyes principle?

Answer 44

Each financial transaction has to be divided into 2 steps: initiation on the one hand, and verification/validation on the other hand. Those two steps must be done by two different persons. Moreover, the verifier cannot be subordinated to the initiator.

Question 45

What is a whistleblower?

Answer 45

Persons who report (within the organisation concerned or to an outside authority) or disclose (to the public) information on a wrongdoing obtained in a work-related context, help preventing damage and detecting threat or harm to the public interest that may otherwise remain hidden.