Manual of Procedures

&

Checklists

for

Pre-Accession and

Transition Facility Programmes

under EDIS

2006

To all users This latest version of the Manual of Procedures incorporates an extensive range of checklists, standard letters, templates and forms, which are in use by the different entities involved in the EU Funding Process for Pre-accession Programmes and Transition Facility under EDIS (Extended Decentralization Implementation System). This version incorporates recommendations made by the EU Commission and also contributions and other changes suggested by end users of this Manual emanating from the practical experience gained over the past years. This Manual is comprehensive since it includes detailed procedures used at every stage of the implementation of a project and also all checklists as well as related forms and templates to be used by the different key players. In order to continue streamlining the whole process for the benefit of all concerned, new sections and templates have been added. The update of the Manual is an ongoing process and suggestions to continue fine tuning the Manual are welcomed from all concerned. This process of continuous updates would ensure that all procedures are being followed and implemented consistently by all involved. The proper and constant use by all stakeholders of this Manual as a constant reference guide, will go a long way to ensure that apart from ensuring that Malta will continue successfully implementing the EDIS Decision as has been done up to now, it will also ensure that EU Funds as well as Maltese Funds used for Co-Financing are utilised in an efficient and effective manner to the maximum. I thank all concerned for your cooperation. The Manual of Procedures and Checklists (2006) is applicable and comes into force as from 1st February 2006. Claude G.Cuschieri

National Authorising Officer (NAO)

Director (EU Paying Authority) 31st January 2006

Contact List Contact persons at the EU Paying Authority (National Authorising Office): Mr. Claude G. Cuschieri Mr. Edwin Camilleri

NAO & Director EU Programme Manager

EU Paying Authority EU Paying Authority

Ministry of Finance Ministry of Finance

South Street, Valletta South Street, Valletta

Tel: 21248293, 25998297 Tel: 25998339

Fax: 21251356 Fax: 21251356

Email: claude.g.cuschieri@gov.mt Email: edwin.a.camilleri@gov.mt Contact persons at the National Aid Coordinator (PPCD): Mr. Stephen Calleja Ms. Mariel Sacco

Planning and Priorities Coordination Dir. Planning and Priorities Coordination Dir.

Auberge de Castille Auberge de Castille

Valletta Valletta

Tel Nos: 22001065 Tel Nos: 22001070

Fax: 22001050 Fax: 22001050

Email: Stephen.Calleja@gov.mt Email: mariel.sacco@gov.mt

Contact persons at the Department of Contracts: Mr. Dennis Attard Mr. Oreste Cassar

Department of Contracts Department of Contracts

Notre Dame Ravelin Notre Dame Ravelin

Floriana Floriana

Tel Nos: 21247682 Tel Nos: 21247682

Fax: 21 247681 Fax: 21 247681

Email: dennis.a.attard@gov.mt Email: oreste.cassar@gov.mt Contact persons at the Treasury: Mr. Albert Zahra Mr. Pierre Ciantar

EU Financing Unit EU Financing Unit

Treasury Treasury

Tel: 25967131 Tel: 25967133

Fax:25967208 Fax:25967208

Email: eufinancingunit@gov.mt Email: pierre.ciantar@gov.mt

Index Table Pages

SECTION A Roles and Responsibilities of Key Players 1-8

SECTION B Programming Procedures 9-28 SECTION C Contracting Procedures 29-37

SECTION D Framework / Twinnings 38-43 SECTION E Payment Procedures 44-53 SECTION F Budgeting & Reporting 54-58 SECTION G Monitoring & Supervisory 59-63 SECTION H Procedures for Request of Funds 64-65 SECTION I Reporting of Irregularities 66-80 SECTION J Inventory & Publicity 81-84 SECTION K Organisational Change Procedures 85-90

ANNEX A PPCD Checklist 91-95 ANNEX B Contracting Department Checklist 96-101 ANNEX C National Authorising Office Checklist 102-105 ANNEX D Treasury Checklist 106-115 ANNEX E Implementing Authority Checklist 116-129 ANNEX F Filing System at the Dept. of Contracts 130-132 ANNEX G Mail Registration & Filing Procedures (NAO) 133-137 ANNEX H Procedure to Record Exceptions (DOC) 138-141 ANNEX I Procedure to Record Exception/Deviations (NAO) 142-145 ANNEX J

Standard letters issued by the DOC 146-148

ANNEX K

Standard Forms (NAO) 149-155

Legend

NAO: National Authorising Officer

NAC: National Aid Coordinator

DOC: Department of Contracts

EC: European Commission

SPO: Senior Programming Officer

PL: Project Leader

DAO: Departmental Accounting Officer

CFCU: Central Financing and Contracting Unit

NF: National Fund

CBM: Central Bank of Malta

IAID: Internal Audit and Investigations Directorate

Section A

Role and Responsibilities of key players

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Responsibilities of the National Authorising Officer

1.1 The National Authorising Officer has the overall responsibility for financial management of Community assistance funds. He/she shall ensure that the Commission rules, regulations and procedures pertaining to procurement, reporting and financial management are respected, and that a proper project reporting and information system is functioning. The National Authorising Officer shall have the full overall accountability for the Community assistance funds of a programme until the closure of the programme.

1.2 The National Authorising Officer shall carry out appropriate financial

management and control and maintain a financial reporting system for all Community assistance funds. He/she shall be accountable to the Commission for the use of the funds. In carrying out these responsibilities, the National Authorising Officer shall be responsible for the following tasks:

i. Request and manage the funds from the Commission;

ii. Establish a note of instructions, which after endorsement by the

Commission will be addressed to the Department of Contracts and to the Treasury, on the procedures to be followed with respect to the financial management of the programmes, including transfers of funds;

iii. Ensure the flow of national and other co-financing resources as set out in

Financing Memoranda for Community assistance programmes;

iv. Ensure that a financial reporting system for Community assistance funds is regularly updated and reporting procedures properly respected by the Treasury;

v. Transfer funds to the Treasury, according to the mechanism set out in the

note of instructions endorsed by the Commission;

vi. Participate with the Commission and the National Aid Co-ordinator in a

Joint Monitoring Committee;

vii. Recover non-used funds from the Treasury at the end of the programme;

viii. Ensure that internal financial control functions are in place for all Community funds, including contract and payment levels;

ix. Monitor and keep record of all Community funded actions of the

National Fund and Implementing Authorities, to ensure compliance with the criteria set in EC Regulation N° 555/2000. Take corrective actions when the above criteria are no longer met;

x. Co-operate with the Commission services on all financial matters linked

to Community funded projects, including access to all information requested, clearing of accounts, and all necessary audit exercises.

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EU-Paying Authority Directorate

2.1 The National Authorising Officer (NAO) for Malta is the Minister of Finance who has delegated the responsibilities of NAO to the Director (EU Paying Authority).

2.2 On a day-to-day basis the Department is responsible to put into effect the tasks

pertaining to the Office of the NAO. Such actions would include:

i. The financial management of EU Pre-Accession Funds;

ii. The processing and authorisation of payment requests relating to the different Programmes;

iii. The preparation and submission of advance payments requests to the

Commission;

iv. The management of accounts relating to EU Funds maintained with the Central Bank of Malta;

v. The preparation and requests for Budgetary allocations;

vi. The maintenance of an effective reporting system;

vii. Establishing sound communication links with the other key players in the

system.

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Responsibilities of the National Aid Co-ordinator

The National Aid Co-ordinator shall have overall responsibility for the monitoring (except financial matters) and assessment of Community funded programmes/projects. The NAC will be responsible for the following tasks:

i. Ensure a close link between the general accession process and the use of Community financial assistance;

ii. Liaise with the Commission with respect to the programming of funds

through the submission of relevant project proposals, reflecting the priorities identified in the Accession Monitoring Reports;

iii. Drive the monitoring and assessment process including the evaluation

process; iv. Chair the Joint Monitoring Committee and the Sectoral Sub Monitoring

Committees; v. Communicate with the Commission services on relevant matters

regarding the programme and the monitoring and assessment of Community funded projects.

Planning and Priorities Coordination Division

The Director General PPCD has assumed the responsibilities of the National Aid Coordinator. Among the tasks undertaken by this Division are the following:

i. The contact point for the Commission with regards to programming; ii. Requesting Implementing Authorities to submit project proposals as a

first step to the programming process; iii. Monitoring the implementation of projects; iv. Chair and provide secretarial backup to the JMC and SMSC as well as

inform relevant authorities of any follow-up action that is required;

v. Contract the evaluation of programmes.

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Responsibilities of the Director General Contracts

The Director General (DG) Contracts, who heads the Department of Contracts, in the Ministry of Finance is responsible for the following:

i. To issue and publish tenders and award Contracts in strict conformity with the principles of free access, fair competition and transparency as provided by the Public Contracts Regulations 2005.

ii. To apply the relevant rules and procedures set up in the Financing

Memorandum/Decision as well as the Public Contracts Regulations 2005.

All information relating to contracts and tendering process shall immediately be recorded on Perseus.

Department of Contracts

The Department of Contracts together with the Treasury constitute the Central Contracting and Financing Unit (CFCU). The area of responsibility of the Department of Contracts relates to procurement. The main tasks undertaken by the Department of Contracts include the following:

i. Issue calls for tenders relating to projects undertaken under the various Pre-Accession Programmes and Transition Facility;

ii. Advising IAs on matters relating to the Public Contracts Regulations

2005;

iii. Process all tenders in conformity with the requirements of the Public Contracts Regulations 2005 referred to above as well as with the terms of the Financing Memorandum/Decision and the Implementation system manuals in place under EDIS;

iv. As a Contracting Authority, the Department of Contracts has the

responsibility to supervise and monitor the procurement process with regard to the proper application of Public Contracts Regulations 2005 from the initial to the final stage.

v. Act as the Administrative Officer (AO) for Malta and will assume the

overall procedural and contractual management of the twinning projects in line with Section 2.7 of the Twinning Manual 2005, the Public Contracts Regulations 2005 and Chapter 174 of the Laws of Malta.

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Responsibilities of the Accountant General

The Accountant General in charge of the Treasury Department in the Ministry of Finance is responsible for the following:

i. Effecting payments to contractors and ensuring that sound accounting procedures are applied at all levels relating to requests for payment of approved projects.

ii. That payments shall be made to contractors after careful verification of

the compliance of the invoice with the contract they relate to in accordance with EDIS and the national rules.

iii. That all payment transactions are to be recorded in ad hoc accounts each

relating to a particular project of the programme. iv. That payments are to be effected following requests for payment by the

SPO and endorsement by the NAO. v. To present monthly reports of the transactions to the NAO and the

implementing authority which originally raised the payment request. vi. Report any irregularities to the NAO.

Treasury Department

The Treasury Department together with the Department of Contracts constitutes the Central Contracting and Financing Unit (CFCU). With regard to Pre-Accession and Transition Facility Funding, the Treasury Department carries out the following actions:

i. Opens and operates a number of accounts relating to the different Programmes funded in whole or in part by the EU;

ii. Maintains an efficient accounting and reporting system relating to

execution of payments;

iii. Prior to effecting payments to ensure that the proper amounts due are being paid to the right payment beneficiaries;

iv. Effect payments to contractors or final beneficiaries as authorised by the

NAO;

v. Update the PERSEUS reporting system with regard to payments effected and communicates same to the Financial Services of the EU Commission;

vi. Reporting any irregularities to the NAO.

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Responsibilities of the Senior Programming Officer

The Director EU Affairs in each Ministry will assume the responsibilities of the Senior Programming Officer (SPO). The Senior Programming Officer (SPO) in each line Ministry shall be responsible for the implementation of the projects being undertaken by the Ministry or any of its Departments or Agencies, in accordance with the Commission rules and procedures, in particular those pertaining to procurement, requests for payment and reporting. The SPO will also assure the overall co-ordination of the projects between the Implementing Authority, the Department of Contracts, the Treasury and the National Fund. The SPO is liable for carrying out the projects to good end. The Implementing Authority together with the SPO shall be responsible to draw up tender specification and submit tenders and contracts for processing to the Director General Contracts. When requesting payments the SPO has to justify the request by providing the relevant documentation such as copies of signed contracts, invoices, full statement of claims, certification as to their correctness, and other relevant documents. The SPO acts as the first line of control over the agencies proposing and later implementing the projects.

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Implementing Authorities

Implementing Authorities are those entities that are directly responsible for the implementation of a project. Such entities may in fact be the line Ministries themselves or Departments and agencies within the portfolio of a particular Ministry. For the purposes of EU Pre-Accession and Transition Facility funds the Head of the IA is the Project Leader. Implementing Authorities together with the SPO are responsible for the following:

i. To draw up Project proposals and eventually the Project Fiche, in consultation with the NAC;

ii. To draw up Tender Dossier together with relative documentation and

submit to Department of Contracts for processing;

iii. To implement the Project on a day-to-day basis;

iv. To submit to the NAO requests for payments to contractors together with invoices and supporting documents;

v. To issue the relative certifications and reports relating to the

implementation of a project;

vi. To maintain at all time an appropriate filing system pertaining to all aspects of the EU-Funded Projects;

vii. To submit to the NAO budgetary estimates and any other reports

requested as required;

viii. To report any irregularities;

ix. To make available upon demand all records as directed by the NAO, the IAID and the Commission Order Services.

Implementing Authorities shall submit the documentation (in line with all points) through the SPO.

Section B

Programming Procedures

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PLANNING AND PRIORITIES COORDINATION DIVISION

MISSION STATEMENT

To ensure the efficient absorption and management of European assistance, both EU and bilateral, through effective co-ordination across Government Departments, Authorities and Agencies. ROLE AND RESPONSIBILITIES

Introduction Objectives of programming Programming of funds1is the process of deciding the volume of resources to be used , and in what way, so as best to continue to assist the country in its efforts to strengthen its administrative capacity to implement Community legislation. These funds target, in the first instance, Institution Building issues (e.g. left over from the Accession Partnerships / the NPAA, new acquis) requiring remedial action as highlighted in the monitoring exercises carried out by the Commission. Assistance is thus directed principally at the public administration, but NGOs may benefit in so far as they have a role in implementing the acquis or in addressing issues related to the political criteria for EU membership. In the interest of continuity, stability and simplicity, the orientation of the Transition Facility is to continue Institution Building activities according to the same principles as practised during the pre-accession period. Therefore, the structures and methods established pre-accession for programming will continue to apply for the Transition Facility, with some minor adaptations where necessary. Pre-accesion programmes and Transition Facility programmes are implemented under the rules for decentralised implementation according to article 53(1) b of Council Regulation (EC, Euratom) No 1605/2002, and in line with the national Public Contracts Regulations, 2005. Programming Approach Programming forms part of an integrated approach, to provide assistance in areas where Malta’s administrative and institutional capacity shows some weaknesses in comparison with the EU15 Member States in the field of acquis transposition. Priorities are set on the basis of the assessment in the Comprehensive Monitoring Report issued by the European Commission in November 2003 and in the context of accession negotiations. National programmes are drawn up annually and comprise Institution Building (IB) and associated investment in the acquis. Malta is required to submit detailed project fiches to underpin the Financing Proposal (see Annex I and II for Financing Proposal and standard project fiche format). The project fiches 1 Pre-Accession or Transition Facility

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are the key implementation documents. The Financing Proposal is submitted to inter-service consultation and for opinion to the Phare Management Committee in Brussels. The project fiches are also made available to other Commission Services and to the Phare Management Committee, for information. Once a favourable opinion of the Phare Management Committee is obtained, the Commission will adopt a Financing Decision. Projects are to be implemented according to the provisions of the Commission Decision and project fiches. Any changes to the objectives described in the Financing Decision as well as significant financial reallocations require a new Financing Decision. Project fiches may be modified in accordance with the parameters set down in the Memorandum of Understanding between the European Commission and the Government of Malta for the implementation of these funds. Programming at the National Level

1. The Role of the National Aid Coordinator (NAC): The project fiches should be drawn up by the intended beneficiary of the action, in close consultation with the National Aid Coordinator (NAC), which is the Planning and Priorities Coordination Division, within the Office of the Prime Minister. In doing this, the beneficiary must use the logical framework methodology as foreseen in the standard formats provided by the Commission (see Annex III). The preparation of the logical framework is a process which clarifies the project objectives, inputs, outputs, risks and assumptions. It should therefore be prepared in collaboration with all organisations affected by the project. The logical framework is the basis for drafting the project fiche. The NAC should consider early in the programming cycle what training and skills development will be needed among potential beneficiaries to encourage viable project proposals, and agree on any necessary short-term technical assistance (TA) for this purpose. The NAC must ensure the quality of the project fiches so that: a) the immediate objectives of the project are consistent with the overall objective for the

sector (relevance); b) there are quantified, verifiable and time-bound indicators of achievement (impact); c) the risks and assumptions underlying the project are adequately defined (feasibility); d) any actions required by the beneficiary or the national authorities to ensure project

impact are stated and time-bound (conditionality); e) the inputs and outputs needed to implement the project are sufficiently well-defined (the

project is ready to be contracted within six months of the Commission’s Financing Decision);

f) actions receiving support are fully coordinated with other instruments such as bilateral technical assistance.

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2. Programming step-by-step The procedure for programming is as follows: a) The Planning and Priorities Coordination Division (PPCD) issues a call for proposals to

all Ministries (addressed to Permanent Secretaries and Directors (EU Affairs)) stating that programming for a particular year is being initiated and asks them to submit proposals by a certain date to be considered for funding. At this preliminary stage all that is required is a brief document (maximum two pages) that outlines the proposed project by giving the background, link to the Acquis, objectives, expected results, activities, an estimate of cost and the envisaged starting date.

b) The proposals are to be submitted to the PPCD through the Directors (EU Affairs) by the

stipulated date. The proposals are evaluated by PPCD as regards eligibility. Proposals that are not eligible, a case in point being infrastructure projects, are not considered for funding. The list of eligible proposals with back-up documentation is sent informally to the DG Enlargement – Malta Team for their initial comments.

c) Bilateral meetings may be held between PPCD and the Ministries to discuss and further

clarify those proposals deemed eligible. Ministries may be requested to provide additional information by an agreed deadline. The list of eligible proposals may be further revised to reflect the outcome of meetings.

d) This revised list will be the basis of the agenda for the first programming mission, where

Commission officials (DG Enlargement – Malta Team), representatives from the Office of the National Authorising Officer (NAO) and from the Budget Office, Ministry of Finance, participate in meetings chaired by the PPCD to discuss with the relevant Ministries their proposals. The end result of these meetings is the joint pre-selection of a set of eligible projects that are in line with the priorities of the Malta Government and the EU Commission.

e) The Ministries through Permanent Secretaries and Directors (EU Affairs) are informed

by PPCD of the outcome of the first programming mission and, if their proposal has been chosen, they are asked to prepare a project document as per standard template format and submit it to the PPCD by a given time. Ministries are assisted by the PPCD and, if deemed necessary, by ad hoc experts in the formulation of the project documents. On submission to PPCD, the draft documents are forwarded to the EU Commission for comments and a second programming mission is organized to discuss and finalize the project documents. Once all amendments have been included, final drafts are submitted by the agreed date to PPCD for onward transmission to EU Commission for inter-service consultations.

Comments at the technical level by the different line Directorates General of the EU Commission are incorporated in the project documents that will form part of the programme to be presented for approval of the Phare Management Committee. On the Malta side, the PPCD makes relevant recommendations to Cabinet. Once approval by Phare Management Committee (on the part of the EU) and Cabinet (on the part of the Malta Government) has been given, an exchange of letters can be signed, thus authorising the commitment of the funds allocated for the projects.

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3. Eligibility a) Institution Building (IB) Support The reinforcement of the institutional and administrative capacity of the country is a key requirement. IB consists of soft measures (Technical Assistance, training, studies, etc). In a sector where there is a clear strategy in place it may be possible also to provide support through the purchase of equipment. Equipment should only be provided at the end of the reform process. Experience shows that using equipment purchased as a “carrot” to encourage reform does not work. Twinning will remain the main instrument to support IB. Twinning will continue to be supplemented by Twinning ‘light’. Twinning ‘light’ retains the essential flavour of Twinning. It is based on co-operation between ministries in Member States and Malta and is focused on achieving a result in terms of the capacity to implement part of the acquis. Twinning ‘light’ differs from classic Twinning in two respects. It is oriented on smaller activities where it would be disproportionate to have a Resident Twinning Adviser (RTA) for the minimum twelve months required under classic Twinning. The approach is simpler for the Member State, which is only required to guarantee the input to the project. The guaranteed result is the sole responsibility of the Beneficiary Country. Detailed Twinning ‘light’ project fiches should therefore clearly reflect the beneficiary’s capacity to assume the full responsibility to achieve the guaranteed result, as well as evidence that the project fits into the strategy for the beneficiary. • The general rules for classic Twinning and Twinning ‘light’ are set out in the Twinning

Manual and should be followed closely. The links to the Twinning Manual are:

http://europa.eu.int/comm/enlargement/pas/twinning/pdf/manual_2005_en.pdf

http://europa.eu.int/comm/enlargement/pas/twinning/pdf/manual_a_2005.pdf

http://europa.eu.int/comm/enlargement/pas/twinning/pdf/annex_b_2005.pdf

http://europa.eu.int/comm/enlargement/pas/twinning/pdf/manual_c_2005.pdf

http://europa.eu.int/comm/enlargement/pas/twinning/pdf/manual_d_2005.pdf

http://europa.eu.int/comm/enlargement/pas/twinning/pdf/current_bodies.pdf • There shall be only one project fiche prepared for each IB project. In general the “result”

in the project logframe will be the “guaranteed result” of the Twinning project. Where a project contains activities in addition to Twinning (for example physical investment), care should be taken to distinguish between the results expected from the Twinning element and the overall result of the project.

• The format for the consolidated project fiche – including the additional information

required where Twinning projects are concerned is at Annex II

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b) Equipment Although the funds primarily target Institution Building issues, projects may also comprise components to address the needs for equipment directly related to, and essential for, the implementation of the acquis. Funding for projects concerning small equipment necessary for the implementation of the acquis must receive co-financing from national public funds of at least 25% of the total eligible public expenditure. c) Technical Assistance (TA) Programming should give preference to Twinning where it is the best means of delivering assistance to IB, but TA (involving commercial consultants, universities, NGOs etc.) may be used where Twinning is not appropriate. d) Taxes in relation to Pre-Accession Programmes No taxes, duties, or other charges having an equivalent effect shall be charged to the Community’s financial contribution. e) Taxes in relation to Transition Facility Programmes Taxes, customs and duties are not eligible for funding by the Transition Facility. VAT does not constitute eligible expenditure except where it is genuinely and definitely borne by the final beneficiary. VAT which is considered recoverable, by whatever means, cannot be considered eligible, even if is not actually recovered by the final beneficiary or individual recipient. Financing Proposals and Project Fiches See Annexes I and II for the standard format for Financing Proposals and project fiches. Draft Terms of Reference (or specifications for works and supplies) should be available in at least a skeleton form for all projects before programmed as real proof of project readiness. However, these drafts will not be included in the information circulated to the Commission. Technical Assistance Information Exchange Office (TAIEX) Requests for participation in TAIEX activities can be either channelled through the Planning and Priorities Coordination Division or sent directly to the TAIEX office in Brussels. THE ROLE OF THE PLANNING AND PRIORITIES COORDINATION DIVISION IN TWINNING PROJECTS, TWINNING ‘LIGHT’ AND OTHER CONTRACTS

Twinning Twinning projects are implemented in accordance with the general principles and rules set out in the Twinning Manual. The Planning and Priorities Co-ordination Division also assists the implementing authorities in finalising the Twinning contracts.

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The step-by-step procedure that has to be carried out from project fiche approval up to the signature of the Twinning contract is outlined under Section C of this Manual. Monitoring In order to enable effective monitoring of the funds and compliance with jointly agreed objectives, ongoing Twinning projects will be reviewed every six months. The IA will be required to draw up a report to the PPCD setting out the financial data and implementation status of the project. This report will be submitted to the Sectoral Monitoring Sub- Committee established under the relative Memorandum of Understanding, which will ensure that recommendations are followed up. Amendments to the Twinning Contract The work plan of a Twinning project needs to be prepared and agreed in detail before the Twinning project is launched, in order to provide objective grounds for the funding requested. However, in practice, with many different activities taking place, a Twinning project is subject to all sorts of unforeseen events and may need to be adjusted in the course of implementation. A certain degree of flexibility is therefore necessary. There should be no change to the mandatory results defined in the work plan but the means of achieving these may be adapted to circumstances, with the activities initially planned being adjusted or replaced by others. Twinning contract modifications can only be made within the period of implementation of the Contract. The modifications will only apply to subsequent implementation and cannot apply retroactively. Referring to the budgetary changes, please note that the breakdown of costs in a Twinning budget (Annex III) follows the logic of the work plan (Annex I) (RTA, delivery of a seminar, expert mission on a particular topic, elaboration of training material, etc.). Each activity must be clearly identifiable and numbered as an individual budget section. In other words, the budget must follow an activity-based budget format and under normal circumstances any change in the work plan will entail a corresponding change in the budget. The budgetary changes cannot affect the structure – definition of the budget, only its implementation. Concerning budgetary changes the following principles apply:

The overall budget for a Twinning project cannot be increased, and so an activity must be reduced or cancelled first in order to finance a new one;

The unit costs (fees, daily allowances, etc.) must respect the rates set in this manual;

redeployment of the budget may not have the purpose of increasing the initial unit costs;

Each Twinning project must include a full-time Resident Twinning Advisor, resident

in the Malta for a minimum of 12 consecutive months. Transfers of budgetary resources may not jeopardise this requirement.

Introduction of a new activity must be justified by showing that it will be of real use

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in achieving the mandatory results targeted by the Twinning Contract; the mere availability of funds (following savings under or cancellation of activities originally foreseen) is not sufficient to justify the financing of new activities. The budget should officially be reallocated before the new activity can be implemented. Activities implemented before being officially entered into the budget will not be financed. The notifications must be made by a secure means of communication, so that dispatch can be proven in the event of dispute.

Changes to the Twinning contract can be made though two procedures: - Addendum - Side letter The following changes to a Twinning contract require an addendum:

the Acquis Communautaire related to the project (Article 2 of the Work plan)

Mandatory results (Article 3 of the Work plan)

MS administration involved in the Twinning project as mentioned in Article 5 of the Twinning Contract

Legal duration (Article 2 of the Twinning Contract)

Definition of the mandatory results and the benchmarks to be achieved (Articles 3 and 4 of the Work plan). (Please note that for changes concerning the means used for implementation, the time schedule and dates, and the identity of most of the Member States’ short-term experts present in the BC an addendum is not needed).

Identity of the MS and BC Project Leaders, the RTA and the principal MS short-term

experts (Article 6 of the Work plan)

Specific budgetary changes: Reallocation of appropriations by the Project Leaders between budget components beyond a cumulated amount of 10% of the total budget of the Twinning project (see below).

If an addendum to the Twinning contract is requested, the following general principles must always be observed:

There must be justified reasons for modifying a Twinning Contract. The Contracting Authority must examine the reasons given and reject requests which have little or no substantiation.

Addenda to Twinning Contracts may only be made within the period of validity of the contract and cannot have retroactive effect.

The purpose of the addendum must be closely related to the original objective of the Twinning Contract.

Unit prices must be identical to those in the initial contract.

Extension of the duration of the contract must allow for implementation and final payments to be completed before the EU financing decision covering the initial Twinning Contract.

Side letters (See Annex K for the relative template) If the change sought does not concern one of the points listed above, side letters to contracts

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suffice where: The change does not affect the basic purpose of the project

Reallocation of appropriations are made within budget components

Reallocation of appropriations are made between budget components for a cumulated amount of up to 10% of the total budget for the Twinning project.

The two Project Leaders (MS and Malta) can autonomously and jointly decide on a side letter, provided the principles under this section as well as the Twinning rules are respected. They formalise the change in the form of a side letter to the Twinning Contract, which lays down the change. Side letters are to be notified to the Department of Contracts and NAO. The Twinning Contract is considered to have been changed on the date of the latest notification. Changes must be notified before their implementation, even if it is only the day before. A side letter is not an addendum in legal terms. Costs for changes notified after their implementation cannot be reimbursed. Changes of address, changes of bank account and changes of auditor may simply be notified, although this shall not affect the Contracting Authority’s right to question the signatory Member State’s choice of bank account or auditor. Twinning Preparatory Costs Only costs incurred by the designated main and junior partner MS Project Leaders and/or RTA (no other experts authorised) can be reimbursed in so far as they relate to a period of maximum six months starting as from the date of the official notification of selection issued to the selected Member State partners. The six month period ends with the receipt of the finalised draft Twinning Contract by the Twinning Coordination team at Brussels headquarters for subsequent consultation of the Twinning Steering Committee. Twinning ‘light’ Contracts Twinning ‘light’ can be used to tackle any self-contained institutional issues arising from the acquis communautaire provided the subject addressed is of limited scope, that is the structures needed to gives effect to the acquis are not complex or the existing ones need little adjustment. The financial ceiling for Twinning ‘light’ projects has been set at €250,000 and the duration limited to six months; in exceptional cases this can be extended to eight months. Section 8 of the Twinning Manual provides more information on the principles involved in the implementation of Twinning ‘light’ projects. The detailed series of steps from the finalisation of the detailed Twinning ‘light’ project fiche to contract signature is outlined under Section D.

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Other Contracts (Technical Assistance Service, Supplies) Senior Programming Officers / Project Leaders should inform the Programme Manager at the Planning and Priorities Coordination Division that a contract relating to a particular project has been launched. The Programme Manager should also be informed when the contract has been awarded and when implementation has started. NB: Programming Checklists for the use of the Implementing Authorities are annexed to this Manual (see Annex E: Section A). These checklists must be filled up and co-signed by the Project Leader and the Ministry’s SPO.

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ANNEX I

FINANCING PROPOSAL

To Permanent Secretaries/Directors of Review I would like to inform you that the programming exercise of pre-accession funds for the year XXXX will be initiated by this Division in the next weeks. Ministries are invited to furnish the undersigned, by not later than dd/mm/yy, preliminary project proposals in respect of the sectors falling under their responsibility. The requests for funding must be based on the objectives as set out in the Comprehensive Monitoring Report issued by the European Commission in November 2003. At this stage the proposals should be brief, but are to contain sufficient basic information to enable a proper assessment of the request. The proposals (1-2 pages maximum) should contain: (a) short background of current situation; (b) short description of project and its link to the Acquis; (c) objectives (global and specific) of the project (bullet form); (d) expected results of the project (bullet form); (e) activities expected to be covered and what they will involve (training, technical assistance, procurement of equipment); (f) an estimate of cost; (g) an indicative starting period of the project. These proposals will form the basis of discussions which the PPCD intends to hold with the respective Ministries and the Commission. Dates and venues of meetings will be communicated in due course.

ANNEX II

Standard Summary Project Fiche

1. Basic Information

1.1 CRIS Number: (only available after pre-commitment has been done by E2 – so leave blank in

first draft) 1.2 Title: 1.3 Sector: [for country co-ordinator to complete]

(if Twinning is involved, create codes following the same system as used on 1998 Twinning projects)

1.4 Location: (specify country and region)

2. Objectives

2.1 Overall Objective(s): From logframe

2.2 Project purpose:

From logframe

2.3 Justification Reference to Monitoring Report or other

3. Description

3.1 Background and justification:

Explain the origins of the project and outline why it is being undertaken.

3.2 Linked activities: Summarise past Phare activities and projects in this area, showing

connections (eg. building on findings of preceding project). Identify and summarise existing linked activities being undertaken by other

parties (ie. by national government and private projects and by foreign government or IFI projects).

3.3 Results:

Should correspond to logframe results. Describe what will be achieved by the end of the project within the direct control of the implementing agency and how it will contribute to the immediate objective. Should confirm that indicators of achievement are quantified and verifiable.

3.4 Activities:

Should correspond to logframe activities. Define the activities to be carried out and the means - the specific contracts (ie. human, material and financial resources) which will be procured to achieve the result. This will make the link from Financing Proposal to implementation clearer and more transparent. The means should directly match the components in the budget breakdown.

The means should differentiate between the types of contracts to be used (ie. Twinning, classical technical assistance or some form of investment in equipment). In the case of Twinning, this description shall include the types and profile of the experts needed.

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3.5 Lessons learned: Should state that the conclusions and recommendations of previous Interim

Evaluations and M&A Reports on earlier projects in the field have been considered and indicate how lessons learned have been incorporated into project design.

4. Institutional Framework

Clearly describe the institutional framework within which the project will have to

operate. Identify any constraints in this respect. Indicate whether the results of the project will

lead to a change in the institutional framework described. For IB Twinning projects identify the beneficiary institution and outline the targeted

objective(mandatory result) and scope of the project. For investment in equipment, clearly describe who will be or become owner of the

asset after project completion, describe whether private or public ownership and, if relevant, composition of ownership.

5. Detailed Budget

Strictly follow the following format.

€M Transition Facility support Co-financing Total cost

(TF plus cofinancing)

Invest- ment

Support

Institu- tion

Building

Total Transition

Facility (=I+IB)

National Public

Funds (*)

Other Sources

(**)

total co-financing

of the project

contract 1 contract 2 etc

Total

Note TRANSITION FACILITY expenditure for equipment should be put under Investment Support (*) contributions form National, Regional, Local, Municipal authorities, FIs loans to public entities, funds from public enterprises (**) private funds, FIs loans to private entities

Quantify the co-financing provided from national sources (including private sector, if

relevant) and state the degree of certainty of such co-financing (ie. is it already earmarked in local or national budget, etc). Also quantify amount and state the degree of commitment of any IFI co-financing (ie already approved, under appraisal, etc).

All investment projects supported by the Transition Facility must receive co-

financing from national public funds. However, many institution-building projects will also have a degree of national co-financing – this should be quantified and included here wherever possible.

For Twinning projects, clearly state the expected budget of the Twinning Contract.

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• Joint Co-financing of investment necessary for implementation of institution building should be the norm and is, by definition, required to be TF eligible. Parallel Co-financing is possible in exceptional cases but this must be clearly justified in the project fiche and agreed with the Commission, and the expenditure items must also be adequately described and justified in the project fiche.

• In the case of Joint Co-financing, where the final overall cost is lower than foreseen in the project fiche, the National Public and Transition Facility Co-financing are reduced proportionally so as to maintain the agreed rate of co-financing. In the case of Parallel Co-financing, where the final cost is lower than foreseen in the project fiche, it must be shown that the overall objectives of the project have been fully achieved.

6. Implementation Arrangements

6.1 Implementing Agency Contact details, including full title, PAO name, address, telephone and fax.

If CFCU, describe its role and outline those tasks delegated to the Ministry/institution and/or beneficiaries.

6.2 Twinning Specify implementation arrangements, beneficiary institution and contact

person. 6.3 Non-standard aspects

Describe any non-standard contract/tender procedures. 6.4 Contracts

Give expected number of contracts and their values in €.

7. Implementation Schedule

7.1 Start of tendering/call for proposals give date, including when ToRs and/or project specifications will be ready

7.2 Start of project activity expected date of commencement of first contract

7.3 Project Completion expected date of last payment under last contract

8. Sustainability

For Institution Building projects, provide evidence that the beneficiary has foreseen adequate staff and financial resources to maintain administrative function

Where supply of equipment is concerned, provide evidence that the beneficiary has foreseen coverage of costs for maintenance and up-date where necessary

9. Conditionality and sequencing

This section must be completed for all projects Any conditionality must be specific and achievable – indicating clearly what should

be done, by when and by whom. If this is not possible, no conditionality should be inserted.

Indicate also most important milestones of the project in terms of impact.

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ANNEXES TO PROJECT FICHE 1. Logical framework matrix in standard format (compulsory)

2. Detailed implementation chart (compulsory)

3. Contracting and disbursement schedule by quarter for full duration of programme (including disbursement period) (compulsory)

4. List of relevant Laws and Regulations (optional)

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ANNEX III

Log frame template LOGFRAME PLANNING MATRIX FOR Project

Programme name and number

Contracting period expires Disbursement period expires

Total budget : PAF budget :

Overall objective Objectively verifiable indicators Sources of Verification • •

Project purpose Objectively verifiable indicators Sources of Verification Assumptions • • • •

Results Objectively verifiable indicators Sources of Verification Assumptions • • • •

Activities Means Assumptions •

• •

Preconditions •

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Log frame example

LOGFRAME PLANNING MATRIX FOR Project

Programme name and number

Strengthening of standards organisations Contracting period expires Disbursement period expires

Total budget : €3 million PAF budget : €2 million Overall objective Objectively Verifiable Indicators Sources of Verification

• Competitiveness of industry increased Acquis applied in the area of free movement of goods

• Exports to EU increase by x% • PECA protocol signed by the end

of 2002

• Trade statistics • Official Journal

Project purpose Objectively Verifiable Indicators Sources of Verification Assumptions • Independent national standardisation body

(ABCD) and notified body in the field of new approach directive on gas appliances (EFGH) provides service to industry to internationally recognised standards as required by Act no xxxx

• ABCD agency accepted as full member of CEN and CENELEC by end 2002

• EFGH agency accredited as competent body for implementation of directive 90/396/EEC by end 2002

• Act xxxx declared implemented in respect of these organisations

• 20% increase in income from charges by both organisations by mid-2003

• Official Journal of Office of Standards and Metrology

• Certificate of accreditation • Commission regular report • Government official journal • Published accounts

• Other standards and testing agencies achieve international accreditation

• Remainder of acquis in free movement of goods implemented

• Industry has the information and resources to use standards and testing services

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Results Objectively Verifiable Indicators Sources of Verification Assumptions

1. Information systems in ABCD for elaboration and distribution of national standards improved

2. National standards replaced with European standards by ABCD

3. ABCD actively participating in elaboration of European standards

4. EFGH equipped and staff trained to meet requirements of directive 90/396/EEC

• ABCD meets information systems requirements of Directive 98/34/EC

• 80% of European standards adopted as national standards by end 2002

• CEN/CEGELEC agree ABCD is actively participating

• Staff in EFGH understand requirements of relevant directives

• Laboratories equipped

• PAA and technical assistance reports

• Monitoring by Delegation • ABCD records • CEN/CEGELEC reports

• Support from other relevant institutions

• Adequate provision from state budget

• Output relevant to industry needs

Activities Means Assumptions ABCD

1.1. Improve information network and connections, upgrade systems

1.2. Training for staff in European standards procedures

EFGH 2.1. Assessment of capacity 2.2. Upgrade laboratory equipment 2.3. Set up conformity assessment

structures 2.4. Manage accreditation application

• Twinning covenant (one PAA, ten short term experts)

• Printing machinery

• Technical assistance contract • Purchase of equipment

• Both organisations recruit and retain adequate staff

• Effective co-operation with other institutions (universities, industry) who set and use standards

• Training centre at ABCD fully established by end 2000(Phare 1999)

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ANNEX IV Programming Meetings

Rules of Procedure PREAMBLE The programming meetings are the official meetings held between the Maltese Authorities and the European Commission to discuss potential projects for a particular annual programme to be financed jointly by EU pre-accession funds (in terms of Council Regulation (EC) 555/2000 of 13 March 2000) or the Transition Facility funds and Malta’s national budget. MEMBERSHIP 1. The core members attending these meetings shall be:

European Commission:

- Officer in DG Enlargement (Malta Team)

Maltese Authorities:

- Director General (Planning and Priorities Coordination Division) as National Aid Co-ordinator, Office of the Prime Minister (Chair)

- National Authorising Officer, Ministry of Finance, or designate - Director (Budget), Ministry of Finance, or designate - Nominee from the Planning and Priorities Coordination Division, Office of

the Prime Minister (Secretary) 2. The Director (EU Affairs) and officials of each ministry having a project

proposal shall also be requested to attend the meetings. The National Aid Co-ordinator may invite other participants to attend meetings, depending on the nature of the project to be discussed.

MEETINGS 3. The Chairman shall convene the meetings at the Conference Room, Office of

the Prime Minister, as often as necessary, but at least two meetings shall be held for every programme.

AGENDA 4. The National Aid Co-ordinator shall draw up the agenda for meetings in

consultation with the European Commission. The agenda shall include any items that may be requested in written form by any of the core members. The agenda, together with supporting papers (draft project fiches) relating to specific items on the agenda shall be issued at least five (5) working days prior to the date of each meeting.

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SECRETARIAT 5. The Secretariat for these meetings shall be provided by the Planning and

Priorities Coordination Division, Office of the Prime Minister. MINUTES 6. The Planning and Priorities Coordination Division shall produce a record of each

meeting. CONCLUSIONS 7. The core members shall reach their conclusions expeditiously. On the part of the

Maltese authorities, project selection shall be subject to final approval by Cabinet. May 2005

Section C

Contracting Procedures for

Commercial Tenders

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General It is to be noted that the Department of Contracts is recognised by the EU Commission as a Contracting Authority and will as a consequence be responsible to sign all contracts exceeding LM 20,000 or its Euro equivalent as referred to Article 22 of the Public Contracts Regulations 2005 and the Commission’s website http://europa.eu.int/comm/budget/inforeuro/index.cfm?language=en SPO’s and Implementing Authorities are enjoined to familiarise themselves with the provisions of the Public Contracts Regulations 2005 at all times. The Public Contracts Regulations 2005 applies to all type of Commercial Contracts excluding Grants whether these are fully or partly funded by the EU. The Regulations can be downloaded from www.contracts.gov.mt or www.doi.gov.mt

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CONTRACT PROCEDURES To be followed by DG (Contracts), SPO’s, PL’s, DAO’s and NAO. PREPARATION OF TENDER DOSSIER AND SPECIFICATIONS In order to accelerate this process it is recommended that preparatory work on the tender dossier be initiated in advance of the signing of the Financing Decision, provided that all pertinent details are known. As soon as the Financing Decision relating to an approved project is signed, the Implementing Authority (IA) under the supervision of the Senior Programming Officer (SPO) in the line Ministry, shall draw up a complete set of tender documents. In this connection the SPO shall consult the EU Unit, Department of Contracts on all queries regarding the application of the provisions of the Public Contracts Regulations 2005 relating to the tender. The Implementing Authority shall proceed as follows: 1) The Project Leader will prepare full Technical Specifications (in the case of

supplies), Terms of Reference (in the case of services) and Bill of Quantities (in the case of Works). These should be included in the tender dossier.

2) Request from the EU Unit, Department of Contracts, a copy of the templates required

for the Tender Dossier.

3) The Project Leader will prepare the Tender Dossier in line with the Regulations.

4) The SPO shall: • Ensure that the Tender Dossier has been correctly drawn up • Ensure that the Tender Dossier is in line with the objectives as laid down in the

Project Fiche • Ensure that the supplies requested therein are according to the Technical

Specifications (in the case of supplies), Terms of Reference (in the case of services) and Bill of Quantities ( in the case of Works).

• Ensure that the estimated costs for the Tender Dossier reflects the allocation indicated in the Project Fiche

• Liaise with the Department of Contracts for their advice and guidance • Return the Tender Dossier to the Project Leader electronically if he/she does not

agree with points I to IV above, specifying in detail the points of disagreement and the advised amendments

• On the other hand, if in agreement with the drawn up dossier, forwards the electronic copy to the Department of Contracts

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VETTING AND APPROVAL OF COMMERCIAL TENDER DOSSIER FOR WORKS, SUPPLIES AND SERVICES 1. On receipt of the draft copy of the Tender Dossier, the DOC shall carry out a

detailed scrutiny and effect any adjustments as may be deemed necessary. 2. The draft Tender Dossier, as amended, shall be returned electronically to the SPO

in the line Ministry for onward transmission to the Implementing Authority. 3. The SPO should forward the draft soft copy of the tender dossier to the Project

Leader with specific written instructions to prepare a fresh draft which includes the final amendments proposed by DOC and endorsed by SPO in consultation with the Project Leader.

4. The Department of Contracts shall verify that any proposed amendments have

been incorporated in the revised tender dossier and shall give approval or otherwise for the publication of the tender dossier.

5. Once approved, the DOC will instruct the SPO to ensure the issue of the soft copy

in pdf format plus one hard copy of the final Tender Dossier for publication from the appropriate Project Implementing Body within the stipulated deadline.

COMMITMENT OF FUNDS When the Tender Dossier is finalised: 2. The Project Leader (PL) shall draw up the NAO Form 1in four signed originals.

He shall then retain a photocopy of the original as a temporary record and forward the Tender Dossier plus the four original NAO-01 forms to the Departmental Accounting Officer (DAO).

3. The Departmental Accounting Officer (DAO) in the line Ministry shall also certify on all four NAO Form 1 that relative funds have been committed under the appropriate incidence of charge. He/she shall retain a photocopy for his/her own record. Upon signing, the DAO shall immediately forward all the documents to the Senior Programming Officer (SPO)

3. The SPO shall:

• Ensure that the Tender Dossier is a true copy of the latest version as proposed by the Department of Contracts

• Ensure that the NAO-01 forms have been correctly filled and endorsed by the Project Leader and the Departmental Accounting Officer

• Return for necessary amendments to the PL and/or DAO if in disagreement with (1) and (2) above

• In the case of Departmental tender, the SPO shall ensure that the tender is in line with the Project’s Fiche objectives.

• Once he has no adverse comments, SPO signs the NAO-01 forms and forwards under a covering letter to DG Contracts (through NAO) the four fully endorsed, dated and stamped original NAO-01 forms, requesting the launch of the tender:

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4. If the NAO 1 Form are found to be in order, fully endorsed by the SPO, PL and

DAO, the NAO will add his endorsement, retain a photocopy of the NAO-01 form and send them to the EU Unit in the Department of Contracts for the latter’s approval.

5. If satisfied with the contents of the NAO-01, the EU Unit in the Department of

Contracts shall:-

a. add DG Contracts endorsement to the four (4) original copies of the NAO-01 form

b. Retain one original fully endorsed NAO-01 form in file as record

c. Return the other three original fully endorsed NAO-01 forms as follows:

To the NAO To the SPO To the Project Leader

d. Instruct the IA through the SPO to make available to the Unit thirty (30)

copies of the full Tender Dossier.

PUBLICATION OF TENDER After receiving the NAO-01 forms the DOC shall: 1. publish the Tender in such form and in accordance with the relative provisions of

the Public Contracts Regulations 2005 2. instruct the SPO in the line Ministry to:-

• Nominate a Chairman, Secretary and a minimum of three evaluators (members) to serve as the Evaluation Committee after affirming their availability during the opening session and evaluation session/s.

• Ascertain that the evaluators will be professional/technical persons with a sound knowledge of the subject at issue.

• Submit the C.V. of each nominee, to the EU Unit, Department of Contracts for approval.

3. The Senior Programming Officer must comply with the instructions issued by the

Department of Contracts and officially submit all the documents requested within 5 working days.

4. The Department of Contracts shall:

• In case of disapproval, officially notify the SPO within 5 working days, stating the reasons thereof

• Request the SPO to re-nominate a new Evaluation Committee. • In case of acceptance of the nominations by DOC, the latter shall officially

inform the SPO accordingly

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TASKS OF EVALUATION COMMITTEE 1. The Chairman shall hold a familiarisation meeting (with all members of the

Evaluation Committee as approved by the DG Contracts) well in advance of the opening of the tender bids in order to explain the procedures to be followed during the evaluation session.

2. The General Contracts Committee (GCC) is responsible for the tender opening

session. It will take place at the venue and on the date and time stipulated in the Tender Dossier. Tenders will be opened in the presence of the appointed Chairman and Secretary of the Evaluation Committee. The latter two will also endorse the Summary of Tenders received.

3. Prior to evaluating the received bids, the Chairman of the Evaluation Committee

requests all members to sign a Declaration of Impartiality and Confidentiality to ensure that there is no conflict of interest between them and the bidders.

4. The Evaluation Committee shall carry out a thorough evaluation of the bids with a

view to identifying the one that satisfies both the selection and award criteria as stated in the tender dossier. It must be ensured that all rules, and regulations mentioned in the Public Contracts Regulations 2005 are strictly adhered to.

5. The Evaluation Committee shall compile a complete evaluation report plus

annexes, which should include the following:

• Copy of Summary of tenders received • Tender opening report • Declarations of impartiality and confidentiality • Administrative Compliance Grid • Evaluation Grid • Any requested clarification from bidders (if applicable) They should also submit recommendations on the bids received as stipulated in the Public Contracts Regulations 2005 and shall forward same under confidential cover to the Director General, Department of Contracts for the latter’s consideration and decision. 6. The DG (Contracts) shall in turn assess the report submitted by the Evaluation Committee together with their recommendations. He shall ascertain that: • Everything was conducted according to the Public Contracts Regulations 2005 • The signatories of the report are the ones approved, and therefore those that signed

the declaration of impartiality and confidentiality.

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7. Once the evaluation report is assessed by the DG (Contracts), it will be forwarded

to the General Contracts Committee (GCC) for their approval or otherwise. 8. Once the evaluation report is approved, the award is published on the

Department’s Notice Board and website giving a 14 working day suspension period for any aggrieved bidder to appeal as stipulated in Part 13 of the Public Contract Regulations 2005. DG (Contracts) notifies the unsuccessful bidders by means of a letter outlining the reasons for being unsuccessful.

9. Once the 14 working days suspension period elapses, the EU Unit within

DOC will prepare the contract for signature 10. The Department of Contracts should forward a true copy of the original

signed contract to the NAO and Accountant General. PROCUREMENT OF LESS THAN LM 20,0000 1. Does not exceed Lm 1,000

Procured departmentally, either after obtaining quotations or direct from the open market at the discretion of the Head of Department taking into consideration the amount involved, the urgency attached to the procurement and restrictions of choice and availability.

2. Exceeds Lm 1,000 but does not exceeds Lm2,500

Procured departmentally after a call for tenders, or after obtaining quotations or direct from the open market, taking into consideration the amount involved, the urgency attached to the procurement and restrictions of choice and availability. Approval by the Minister responsible for the department or any other person authorised by Minister is required if a call for tenders is not to be issued.

3. Exceeds LM 2,500 but does not exceeds Lm20,000

Departmental call for tenders. In exceptional cases may be procured by direct contract, subject to the written approval of the Minister responsible for Finance or any other senior official in the Ministry to whom authority is delegated.

COMMITMENT OF FUNDS When the Tender Dossier is finalised: 1. The Project Leader (PL) shall draw up the NAO Form 1in four signed originals.

He shall then retain a photocopy of the original as a temporary record and

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forward the Tender Dossier plus the four original NAO-01 forms to the Departmental Accounting Officer (DAO).

2. The Departmental Accounting Officer (DAO) in the line Ministry shall also certify on all four NAO Form 1 that relative funds have been committed under the appropriate incidence of charge. He/she shall retain a photocopy for his/her own record. Upon signing, the DAO shall immediately forward all the documents to the Senior Programming Officer (SPO)

3. The SPO shall:

a) Ensure that the NAO-01 forms have been correctly filled and endorsed

by the Project Leader and the Departmental Accounting Officer. b) Return for necessary amendments to the PL and/or DAO if in

disagreement. c) In the case of Departmental tender, the SPO shall ensure that the tender

is in line with the Project’s Fiche objectives. d) Once he has no adverse comments, SPO signs the NAO-01 forms and

forwards under a covering letter to DG Contracts (through NAO) the four fully endorsed, dated and stamped original NAO-01 forms.

4. Departmental tenders do not require the approval of the NAO and DG

Contracts. Implementing Authorities are requested to forward a copy of the signed contract to NAO, DOC and Treasury once the contract has been agreed to.

5. Once the contract has been signed, the Project Leader shall immediately

input the necessary contracting data into the iPersues Database at the Department of Contracts. Failure to do so may jeopardise the relative payment to the contractor.

6. Payment procedures as laid down in Section E of the MOP must strictly be

followed.

NB: Contracting Checklists for the use of the Implementing Authorities are annexed to this Manual (see Annex E: Section B). These checklists must be filled up and co-signed by the Project Leader and the Ministry’s SPO.

EU Paying Authority (Tel no: 25998297)

Note: This form raised in FOUR ORIGINALS must be forwarded to the NAO who will add his endorsement prior to its submission to the EU Unit, Department of Contracts.

TENDERS / CONTRACTS FORM 1. Ministry / Department ___________________________________

2. a) Name of Implementing Authority ___________________________________

b) Name of Project Leader ___________________________________ 3. a) EU Transition Facility (i.e. 2004, 2005, 2006) ___________________________________

4. Title of Approved Project ___________________________________ 5. Tender Value in Euro ___________________________________

6. Is VAT eligible or not for Transition Facility funding? Yes / No

7. Type of Contract (Supply, Service, Twinning light etc) ___________________________________

8. Indicate separately amount of EU and Malta funding EU Funds: ________________________ Malta Funds: ________________________ 9. Item and Vote in the General Estimates ___________________________________ 10. Implementation Period (start and end dates) _________________ / ________________ 11. Payment terms ___________________________________ We confirm that the tender dossier/detailed TwL project fiche has been compiled in line with the Public Contracts Regulations 2005/Twinning Manual and we hereby request the DG Contracts to launch the relative tender. Signature ______________ Signature _______________________ Date ___________

Project Leader Senior Programming officer

Funds committed ____________________________ Date ___________ Departmental Accounting Officer

Endorsement by NAO _________________ Date ___________ ________________________________________________________________________________ Approval by DG Contracts _________________ Date ___________ ________________________________________________________________________________

The EU Paying Authority under the Ministry of Finance collects and processes information to carry out its functions under Chapter 174 Financial Administration and Audit Act. All data is collected and processed in accordance to the Data Protection Act 2001, Chapter 174 Financial Administration and Audit Act and other subsidiary legislation.

NAO-01 Form2006

Section D

Twinning Light Contracts

Twinning Contracts

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TWINNING ‘LIGHT’ PROCEDURE Key:

DOC Department of Contracts EC European Commission IA Implementing Authority, i.e. Final Beneficiary MS Member State NAO National Authorising Officer NCP National Contact Point PL Project Leader NAC National Aid Coordinator SPO Senior Programming Officer TL Twinning ‘Light’

1. The approved Financing Decision/Memorandum constitutes the basis for the

implementation of these projects. 2. These twinning ‘light’ projects can be:

a) Either part of a project fiche in the Financing Decision/Memorandum (either in the sectoral fiches or in the sectoral component of the General Technical Assistance fiche) or

b) funded through the unallocated pot of the General Technical Assistance fiche where

IA / EC identify a need which is then framed as a request for funding to NAC.

a) Procedure for TL under Sectoral Fiche or Sectoral Component of the General Technical Assistance fiche. 1. IA finalises detailed TL project fiche with supervision of NAC. 2. NAC submits final detailed TL project fiche (incl. TL number) to IA (electronically)

copied to NAO and DOC. 3. DOC approves detailed TL project fiche. 4. DOC notifies IA, NAO and NAC of approval of detailed TL project fiche. 5. On receipt of approval, IA submits to DOC an official letter requesting the launch of TL

procedure accompanied by 4 original signed NAO-1 Form. 6. DOC launches TL procedure (circulating detailed TL project fiche to all Twinning NCP

in the MS), allowing MS 6 weeks to present proposals, unless special circumstances justify an extension.

7. DOC requests the SPO to nominate 3 officials that satisfy the set criteria to sit on the

selection committee. The IA submits nominations to DOC for approval. DOC informs IA accordingly.

8. DOC receives TL proposals. 9. DOC distributes offers to IA, copied to SPO for review. 10. DOC instructs IA to fill in a Selection Fact Sheet as stipulated in the Twinning Manual

(Annex C7) for each MS proposal, which has to be endorsed by evaluators.

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11. DOC organizes and chairs selection meeting. NAC and NAO attend as observers. DOC, NAO and NAC have no vote in the selection process. DOC takes minutes of selection meeting.

12. DOC approves the Selection Fact Sheet/s. 13. DOC submits a copy of the Selection fact Sheet/s to PL, SPO, NAC and NAO. 14. DOC notifies selected MS partner and informs other unsuccessful MS of Maltese IA’s

choice within 6 weeks of the deadline for the submission of proposals. 15. IA in conjunction with the SPO prepares first draft of TL contract (as per Annex A of

2004 Twinning Manual, except that Annex I will consist of the detailed TL project fiche and the selected MS proposal. As the possibility of forming consortia is ruled out in TL, there will be no Annex VIII).

16. DOC notifies the IA of any changes required to the TL contract. PL will then submit

through SPO the draft contract to MS partner for their consideration. 17. Should no amendments be required, DOC approves the TL Contract and request the IA to

send 3 original Contracts signed by MS and PL. 18. DOC signs the 3 original TL contracts. 19. DOC forwards an original TL contract to the PL, MS and NAO and a copy to Director

(Treasury), NAC and SPO.

b) Procedure for TL from the unallocated pot. 1 1. IA sends request for use of funds from allocated pot to NAC with draft detailed TL

project fiche. 2. IA finalises draft TL project fiche with supervision of NAC. 3. Draft TL project fiche is sent to EC for approval. 4. EC approves/rejects/requests modifications of draft TL project fiche. 5. If EC approves, procedure continues as from step 2 of (a) above. 6. If EC rejects the request, NAC informs IA accordingly 7. If EC requests modifications, NAC informs IA accordingly and ensures modifications are

made or clarifications given before sending a revised draft to EC. As soon as there is agreement by EC, procedure continues as from step 2 of (a) above

1 The unallocated pot is under the general T.A fiche and still needs to be programmed between NAC and EC.

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TWINNING COVENANTS PROCEDURE

Key:

DOC Department of Contracts EC European Commission IA Implementing Authority NAO National Authorising Officer NCP National Contact Point MS Member State NAC National Aid Coordinator

a) Procurement Stage

1 EC approves project fiche (through inter-service consultation) and PHARE

Committee approves national programme. 2 EC launches twinning procedure (circulating project fiche to all Twinning NCP in the

MSs, allowing MSs up to 8 weeks to formulate proposals. 3 EC receives offers from MSs. 4 EC dispatches (electronically) proposals received from MSs to the DOC. 5 DOC registers Twinning proposals received from MS. 6 DOC dispatches (electronically) Twinning proposals to the IA and copies NAC. 7 DOC requests SPO to nominate a minimum of three (3) officials who satisfy the set

criteria to sit on the selection meetings. The SPO would, if possible, avoid nominating members having hierarchical positions within the IA.

8 The IA submits nominations to DOC for approval and the DOC informs IA

accordingly. 9 IA makes a preliminary evaluation of proposals prior to selection meetings. 10 DOC organises and chairs selection meetings between MS administrations making

the proposals and IA. NAC is invited to attend as active observers. Meetings are held in Malta.

11 If IA so requests, the MSs may be given more time (1 – 2 weeks) to refine their

proposals after the selection meetings (Section 3.5 of 2004 Twinning manual). 12 IA has two weeks from date of the selection meetings / receipt of developed proposals

(as in 9) to choose proposal and send evaluation report to the DOC. The evaluation report shall include the Selection Fact Sheet in line with Annex C7 of the Twinning manual.

13 DOC notifies the outcome of selection to the MS partners, with a copy to the MSs

NCP, EC and NAC. 14 Selected MS submits (electronically) first draft of Twinning contract to the IA.

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15 IA and MS draw up detailed Twinning contract. DOC will provide advice and

assistance to the project partners, if necessary. 16 Within 3 months of notification of selection, IA / MS send (electronically) agreed

draft Twinning contract for assessment to the DOC. 17 DOC assesses proposed Twinning contract in terms of content and finances within no

more than 6 weeks. During this period DOC forwards the draft Twinning contract to the NAO and NAC for their assessment and comments.

18 Any comments from the NAO and NAC are transmitted to the DOC. 19 DOC transmits consolidated comments (comments by DOC, NAO and the NAC) to

the IA / MS. 20 IA / MS revise draft Twinning contract to take account of comments. Meetings

between DOC, NAO, NAC, IA / MS may need to be held at this stage to clarify certain points.

21 IA / MS submit electronically revised draft Twinning contract to DOC. 22 DOC verifies the amended version (taking into account the comments of NAC and

NAO) and gets back to the IA / MS within a maximum of 2 weeks. 23 DOC requests EC opinion on relevance of work plan in relation to the Community

acquis. 24 EC issues a binding opinion on relevance of the Twinning work plan in the relation to

the Community acquis and its latest development. The opinion will however not cover financial and contractual aspects.

25 DOC communicates binding opinion issued by the EC to the IA / MS. 26 IA / MS modify draft Twinning contract, if necessary, in light of EC opinion. 27 IA / MS submit (electronically) to the DOC modified Twinning contract (the final

draft). 28 Contemporaneously, IA / MS forward to the DOC a printed copy of the final draft

Twinning contract, initialled on each page. 29 DOC verifies compliance with EC opinion as necessary and communicates its

approval to the MS and IA, copying the NAO and NAC. 30 MS prepares and signs four originals of Twinning contract and initials all annexes. 31 IA signs the four originals of the Work Plan (Annex I of Twinning contract) and the

Budget (Annex III). 32 IA submits to DOC under cover of a note the four originals of Twinning contract and

annexes for endorsement by DOC. 33 DOC issues notification of financing decision to the Twinning partners, attaching the

appropriate originals of the Twinning contract. The DOC forwards the third original

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of the Twinning contract to the NAO and retains the fourth one. The date of notification is the legal date as well as the first possible starting date for the implementation of the project.

34 DOC forwards copy of the signed Twinning contract to the NAC and EC. b) Implementation Stage 1. Payments are made in accordance with the payment procedure set out in this Manual

(Section E). 2. Project Steering Committees are organized on a Quarterly Basis and co-chaired by

both Project Leaders. The DOC, NAO and NAC are core members of the PSC. Quarterly reports and Financial Statements should be sent to all members at least 2 weeks prior the PSC.

3. Amendments to the original Twinning Contract both of an indicative clause and

financial/budgetary reallocation should be brought into effect through a sideletter, co-signed by both Project Leaders (See Annex K- Sideletter template). Sideletters should be sent to the DOC, NAO and NAC. DOC shall approve side-letters in full consultation with the NAO and NAC.

4. In the case where the budgetary reallocation exceeds the cumulated amount of 10% of

the Twinning Budget, both PL’s should issue an addendum to this effect. The addendum should be sent to the DOC, NAO and NAC. The DOC shall review and henceforth sign the addendum. DOC shall finally notify NAO, NAC and IA of its approval.

5. The Member State’s PL must draw up a Final Report accompanied with a Financial

Statement and submit them to the IA. The IA after proper review shall send the documents to the DOC copying the NAO and NAC. The DOC shall approve the report in consultation with the NAO and NAC.

6. Together with the Final Report, the Member State shall submit a Final Invoice

accompanied by an Audit certificate as described in Section 7.3 of the twinning Manual.

7. Once the NAO receives the Final Invoice and Audit certificate through the IA and

approval notification of the Final Report from the DOC, the NAO shall effect the final payment after the necessary financial checking and review.

Section E

Payment Procedures

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PAYMENT PROCEDURES GENERAL The SPO and the DAO should be involved in the payment process from the outset. Payment documents will not be processed unless these carry the signatures of the Project Leader (PL), the SPO and the DAO. Procedures for Payment Requests Depending on the nature of the Contract, the following documentation must be requested by the Project Leader for onward transmission to the NAO.

a. Supply Contracts:

- Original Invoice denominated in euros whether issued by a local or foreign contractor.

- Copy of the Performance Guarantee (10 % of Contract Value) - Copy of the Advance payment Guarantee as referred to in the General

Conditions or the Special Conditions - Copy of the Security Guarantee (10% of Contract Value), where and when

applicable - Supply Contract Provisional Acceptance Certificate (in case of interim

payment request) - Supply Contract Final Acceptance Certificate or copy of Provisional

Acceptance Certificate & Security Guarantee (in case of final payment) b. Service Contracts (fee-based)

- Original Invoice denominated in euros whether issued by a local or foreign contractor.

- A pre-financing payment of 60% on contract signature. If the pre-financing exceeds € 150,000 the Contractor must provide a financial guarantee for the full amount of the pre-financing payment.

- Following approval of the interim progress report, interim payments can be requested as indicated in the Special Conditions of the Contract, if any. The sum of pre-financing and subsequent interim payment cannot exceed 90% of the contract value.

- The balance of 10% can be requested upon submission of the final expenditure report, audit certificate, final progress report and User Acceptance Certificate.

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c. Service Contracts (global priced)

- Original Invoice denominated in euros whether issued by a local or foreign contractor.

- A pre-financing payment of 60% on contract signature. If the pre-financing exceeds € 150,000 the Contractor must provide a financial guarantee for the full amount of the pre-financing payment.

- The balance of 10% can be requested upon submission of the final progress report and User Acceptance Certificate.

d. Twinning Light Contracts

- A pre-financing of up to 80% of Contract’s value will be effected upon submission of an invoice or request for payment.

- The final balance of 20% of Contract’s value will be effected upon submission of an invoice or request for payment, final expenditure report drawn in line with the TL Contract’s budget and an Audit Certificate.

e. Twinning Contracts

- Pre-financing payment: an original invoice or request for payment of up to 80% of the Twinning budget corresponding to first 12 months of the implementation period.

- Interim Payments: Quarterly Financial report detailing all costs incurred during the past months. If the MS Twinning partner can demonstrate that more than 70% of the cumulative pre-financing has been consumed, a subsequent payment/s equivalent to the amount as mentioned in Article 4 of the Special conditions may be requested. Prior to final payment/settlement, the accumulated payment of the initial pre-financing and the successive interim payments may not exceed 90% of the Twinning total budget.

- Final Payment: The final balance of 10% of Contract’s value will be effected upon submission of a final invoice or request for payment, final financial report drawn in line with the Twinning Contract’s budget , final progress report and an Audit Certificate

NB. If the project duration is 12 months or less, the payments will be done in two operations: a pre-financing and a final payment. All payments will be made in favour of the Twinning Partner.

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Responsibilities of the Project Leader Once the payment request is received, the Project Leader should:

a) Verify meticulously the Payment Request and accompanying documents for

authenticity and validity as per contract terms b) If satisfied, PL shall add his certification by marking the relative invoice as

“Certified Correct” and have the invoice stamped c) In the case of Supply Contracts, the PL shall compile the Provisional Acceptance

Certificate or the Final Acceptance Certificate, depending on the payment stage (See Annex K).

d) In the case of Service Contracts, the PL shall compile the User Acceptance Certificate to certify that the services requested have been delivered as per Contract conditions (See Annex K).

e) Draw and submit to the SPO 4 original NAO-02 forms, the original invoice and 3 copies of the invoice and supporting documentation, duly signed, stamped and dated. Copies of the original invoice must be certified by the PL as true copies of original.

f) All the steps above should be recorded (as appropriate) in the Payment Checklist (see Annex E Section C)

g) A copy of all documentation should be retained as part of the audit trail.

N.B: Annex A of NAO-02 Form should only be filled in the case of multiple invoices. Responsibilities of the Senior Programming Officer

Once the documents are received by the Senior Programming Officer he/she should ensure that:

a) The value of the invoice is correct as per terms of contract; b) All invoices and documents conform with the objectives and guaranteed results

within the Project Fiche; c) The correct co-financing ratio, if applicable; d) The documents are signed, stamped and dated by the Project Leader; e) If found correct, all documents should be signed, stamped and dated; f) The Payment Checklist should be duly completed. The original checklist should

be retained by the SPO as part of the audit trail while a copy should be forwarded to the PL.

g) All payment documentation should be forwarded to the DAO for necessary action.

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Responsibilities of the Department Accounting Officer Once the documents are received by the DAO, he should:

a) Ensure that funds are available under the appropriate incidence of charge.. If not

satisfied he should immediately return all documentation to the SPO for clarification If satisfied he should sign, stamp and date the NAO-02 forms;

b) Fill, sign and date the appropriate checklist (see Annex E Section C); c) Forward to the Officials indicated below the following documentation:

To the SPO: One original NAO-02 form which now bears the three signatories

To the PL: One original NAO-02 form which now bears the three signatories

To the NAO: Two Original NAO-02 forms, one original invoice, one true copy of the original invoice as certified by the PL and SPO and supporting documentation ( financial reports, bank guarantees, certificates etc)

d) Retain a copy of all documentation as part of the audit trail. Responsibilities of the National Authorising Officer Upon receipt of the NAO-02 form and supporting documentation from the DAO, the official responsible for the relative project shall undertake the following measures:

a) Verify the correctness and validity of NAO-02 form in conjunction with the relative Payment checklist (see Annex C). The following should be checked– • Details of Project • Details of Beneficiary • Correctness of amounts as per invoice • Ratio of co-financing as per project fiche (if it is the case) • Type of payments (Advance, Interim, Final) • Whether all documentation relating to type of payment have been provided such

as bank guarantees, Provisional/Final Certificate, Invoices, etc.

b) Verify claim/invoice with the terms of contract and/or compliance with the relative NAO-01 form

c) In the case of Twinning/Twinning Light, the official shall carry out the necessary vetting

against the Quarterly Financial Report as provided by MS. d) In case of any queries, these should be submitted in writing to the attention of the SPO to

ensure that any requested information or missing documents are forwarded e) The official should submit the Payment Checklist, NAO-02 form and supporting

documentation to the Checking Officer for his endorsement. Following which, the relative documents would have to be submitted to the NAO for his approval

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f) When payment or part-payment is to be effected out of EU Funds the Official should prepare draft letter of authorisation addressed to the CBM for the transfer of funds from the EU Account to the relative Treasury Account. This authorisation letter would require a double signature, i.e. the NAO’s and another authorised signatory

g) The Official should also prepare a draft letter for the NAO’s signature authorising the

Treasury Department l to effect the relative payments out of EU funds or local budgetary allocations

h) The official should send the following documents to the Treasury –

• Original NAO-02 form, plus a copy of original invoice • Copy of Letter of Authorisation to CBM (where applicable) • Letter of payment authorisation to Accountant General as per (vii) above

i) The Official should file the payment documents and relative correspondence in the

appropriate file j) Every Official should ensure that the relative details are submitted to the Official in

charge of the NF PERSEUS through the appropriate tables. k) Official should liaise with the Treasury to ensure early payments to beneficiary and

request confirmation together with a copy of the relative Debit Advice L) Where payment is effected out of EU funds, once confirmation from Treasury is

obtained, the Official should liaise with the relative DAO to transfer the equivalent amount to the appropriate revenue sub-head under the Ministry of Finance.

NB. It is of utmost importance to note that since Pre-Accession and Transition Facility Contracts are denominated in euros, relative invoices must be issued in the same currency and shall bear the appropriate Bank details otherwise the Contractor must be requested to submit the Financial Identification Form (See Annex ). VAT Element The VAT in relation to Pre-Accession Programmes is payable out of the Ministry’s/Department’s own funds while the VAT in relation to the Transition Facility projects is payable out of the allocated funds under the Ministry’s own Vote Item 7184.

NB: Payment Checklists for the use of the Implementing Authorities are annexed to this Manual (see Annex E: Section C). These checklists must be filled up and co-signed by the Project Leader and the Ministry’s SPO.

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TASKS & RESPONSIBILITIES OF THE EU FINANCING UNIT WITHIN THE TREASURY DEPARTMENT

Following receipt of the relevant documentation from the NAO, the EU Financing Unit shall:-

confirm approval of payment by the NAO, and ensure that a duly certified NAO-2 form is submitted;

ascertain all supporting documents are certified correct by the NAO;

check that the invoice or equivalent request for payment is in conformity with the contractual agreement or any other documentation governing the transaction;

confirm the invoice or equivalent request for payment is in line with legislative requirements;

ensure availability of funds in the appropriate Treasury’s bank account whenever payment is to be effected out of EU funds;

unless adequately provided, obtain banking information of the final beneficiary in order to proceed with a direct credit payment.

On completion of these checks and provided that the above conditions are adequately met, the Treasury shall proceed with the relevant payment(s). On the other hand, the responsibility for necessary corrections rests with the NAO’s Office and should there be proposals for payment(s) that do not meet the above mentioned requirements or which depart from the normal rules or procedures, the Treasury shall refer documents back to the NAO for rectification. Otherwise the Unit shall:-

produce a commitment through the Departmental Accounting System [DAS] corresponding to payment whenever it is to be effected out of Government’s own resources i.e. National co-financing;

through an automated Financial Information System (FIS) prepare the necessary documents and proceed as follows:-

produce an authorisation letter for transferring funds out of Government’s Public Account to Treasury’s ad-hoc bank account (Pre-Accession/Transition Facility Accounts);

prepare the appropriate payment document(s) on the prescribed Central Bank (CBM) forms – Debit Advice/ Funds Transfer/ Bank Draft – for payment execution;

At point of entry, every record is allotted a unique number through which the Unit can effect reconciliation.

obtain authorisation signatures in accordance with approved bank mandates;

consolidate all payment documents in one statement [TR/PR(TF)-6] and submit to CBM. Upon receipt, CBM shall acknowledge and return a copy of the statement.

The above tasks and payment modes are all laid out in the provided checklist [TR/TF-10].

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Reconciling the FIS Monthly Detail Reports

On receipt of the relevant CBM Debit/Credit Advices, the Unit shall post individual amounts to the FIS.

Reconciliation of monthly reports is essential to assure the accuracy of transactions posted to the FIS. It allows the Unit to monitor and control the financial activity of a particular project. The reconciliation process involves comparing departmental transaction records to the items posted on the FIS Monthly Detail Report [Annex ] and Summary Financial reports. The Accountant General or his designee is responsible for ensuring that documentary evidence, subject to audit, is maintained, that the expenditure reports have been reconciled on a timely basis and that reconciling matters have been promptly resolved.

Amongst other tasks the Treasury shall maintain copies of:

FIS Monthly Detail reports and other summary reports obtained from the Financial System.

Commitments and expenditures.

The following steps are envisaged for reconciling monthly reports with NAO records for expenditure.

Using the Monthly Detail report, review projects’ expenditure to determine that charges are appropriate. Individual amounts shown on the monthly detail report, are summarized and shown in total by expenditure account code on the Folio report. These amounts are automatically summarized and forwarded to the monthly Dr/Cr column on the Summary report.

A review of the Folio report is recommended to determine that the financial data is reasonable and that adequate funds remain in the budget to cover commitments and future payments.

The officer completing the reconciliation should initial and date the monthly detail report and the Accountant General or Designee should sign and date the report confirming the reconciliation has been properly completed.

Submission of Documents to the relevant stakeholders

confirm payment to the NAO and return an endorsed copy of the NAO-2;

submit to the respective SPO documentation of payment(s) in electronic format;

ensure that all accounting records and supporting documents are maintained appropriately and in an organised manner as to facilitate audit controls.

update payments on iPERSEUS regularly.

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EU Paying Authority, MFIN (Tel no: 25998297) For NAO Use only For Treasury Use only

Checked by: _ _ _ _ _ _ _ _ _ _ _ _ _ _ Payment effected by: _ _ _ _ _ _ _ _ _ _ _ _

Approved _ _ _ _ _ _ _ _ _ _ _ _ _ _ Payment Date: _ _ _ _ _ _ _ _ _ _ _ _ _

Date: _ _ _ _ _ _ _ _ _ _ _ _ _ _ Debit Advice No: _ _ _ _ _ _ _ _ _ _ _ _ _

PAYMENT FORM 1. Ministry / Department __________________________________

2. Name of Implementing Authority __________________________________

3. Pre- Accession 2003 or Transition (i.e. 2004, 2005, 2006) ___________________________________ 4. Title of Project Fiche __________________________________ 5. Contract Reference number/department __________________________________ 6. Total Value of Contract (Euros) __________________________________

7. Net Amount to be paid (in Euros) __________________________________ 8. VAT amount (if applicable) __________________________________

9. In Favour of: Name: __________________________________

Address: __________________________________

Bank & Account No.: __________________________________ 10. Indicate separately amount to be paid out of: (a) EU Funds __________________________________

(b) Malta Funds __________________________________ 11. Pre Accession/Transition Vote in the General Estimates __________________________________

12. State whether this is an advance, interim or final payment __________________________________

13. Payment documentation has been vetted against the Payment Checklist (YES/NO) __________________________________ We confirm that the payment documentation is in line with the signed contract and the relative payment checklists have been compiled as stipulated in the Manual of Procedures and Checklists (2006) Signature: _____________________ Signature: ________________________ Date__________

Project Leader of (IA) Senior Programming Officer (Director Office of Review)

Funds are available under Item and Vote under General Estimates to meet payment _ _ _ _ _ _ _ _ _ _

Departmental Accounting Officer The EU Paying Authority under the Ministry of Finance collects and processes information to carry out its functions under Chapter 174 Financial Administration and Audit Act. All data is collected and processed in accordance to the Data Protection Act 2001, Chapter 174 Financial Administration and Audit Act and other subsidiary legislation.

NAO-02 Form2006

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NAO - 02 (Annex A)

Contract Details Total Value Details of Bank Invoice Date of Amount to Name, Address, of Contract Guarantee Held No. Invoice be paid Bank a/c if applicable Euro / Lm (if any) Euro / Lm of Contractor

Section F

Budgeting &

Reporting Procedures

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REPORTING

PROGRESS, BUDGETING AND PROCUREMENT 1. The PL in collaboration with the SPO shall compile the Progress and

Forecasting Report in a combined format on the redesigned NAO-03 form and submit to the National Authorising Officer on a quarterly basis, or more frequently, if so required.

2. NAO-03 form is divided in three sections:

(a) Section A incorporates the details regarding the project and signatories (b) Section B is a pure Progress Report which should complement the

details provided in section C (c) Section C is a Financial Progress Report which should include data

relating to the following –

• Signed Contracts distinguishing between EU and Maltese Co-Financing

• A Forecast of Tenders and future Financial Commitment and future Cash Flow requirements

3. SPO’s and IA’s are to ensure that:

a. Updated payment records in respect of every contract emanating from the respective budget line appearing in the project fiche are maintained and are made available as and when required by the NAO or for inspection by the Internal Audit Directorate or the EC

b. Information relating to Forecasting and Cash Flow requirements should

be as accurate as possible since it will determine the extent of the advance that the NAO will, from time to time request from Brussels. Submission of incorrect figures may result in postponement of payments

4. Form NAO-03 should reach the NAO office at least five (5) working days

before the commencement of the quarter being reported upon.

EU Paying Authority (Tel no 25998297)

Section A

Pre-Accession Program

Project Title

Financing Memorandum Ref. Date

Total Value of Project: (as per project fiche)* €

EU Funds Element €

Malta Funds element: €

Ministry / Department:

Implementing Agency:

Submitted by: Project Leader ( Name in Block and Signature)

Senior Programming Officer (Name in Block and Signature)

Date of Submission:

* Breakdown to be provided in Section C

Progress, Budgeting and Procurement Report

Period From _________ to _________

The EU Paying Authority under the Ministry of Finance collects and processes information to carry out its functions under Chapter 174 Financial Administration and Audit Act. All data is collected and processed in accordance to the Data Protection Act 2001, Chapter 174 Financial Administration and Audit Act and other subsidiary legislation.

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NAO-03 Form2006

Section B

Implementation stage reached (Specify per Tender):

Comments regarding reasons for savings and any proposed reallocations:

Problems encountered/envisaged and solutions found/proposed:

Expected Developments:

Other Relevant Information and comments (if any):

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SECTION C

SAVINGS (Euro)

Allocation(Euro)

EU Funds EU Funds EU Funds EU Funds EU Funds EU Funds EU Funds EU Funds0.000.000.000.000.000.000.000.000.000.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

SAVINGS (Euro)

Allocation(Euro)

MLT Funds MLT Funds MLT Funds MLT Funds MLT Funds MLT Funds MLT Funds MLT Funds0.000.000.000.000.000.000.000.000.000.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

EU Funds MLT Funds EURO Funds MLT Funds EURO Funds MLT Funds EURO Funds MLT Funds

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Sign. Sign.(Project Leader) (Senior Programming Officer)

Mar/Jun/Sept/Dec

CASH FLOW REQUIREMENTS (EURO)

Jan/Apr/July/Oct Feb/May/Aug/Nov

Total Quarter Savings Envisaged

Budgeting-CashFlow Requirments

EU CONTRIBUTIONSIGNED CONTRACTS CASH FLOW REQUIREMENTS (EURO)

TOTAL

Payments made to date (Euro) Jan/Apr/July/Oct Feb/May/Aug/Nov Mar/Jun/Sept/DecType of activity as per

project Fiche Signed Contracts Date of Signature Contract Value

(Euro)

MALTESE CONTRIBUTION

SIGNED CONTRACTS CASH FLOW REQUIREMENTS (EURO)

Type of activity as per project Fiche Signed Contracts Date of Signature

Contract Value (Euro)

Payments made to date Jan/Apr/July/Oct Feb/May/Aug/Nov Mar/Jun/Sept/Dec Total Quarter Savings Envisaged

TOTAL

Contracts to be signed

Type of activity as per project Fiche Contracts to be signed Approximate Date

of SignatureEstimate Value (Euro)

TOTAL

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Section G

Monitoring & Supervisory

Procedures by NAO

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MONITORING PROCEDURES OVER ENTITIES ENTRUSTED WITH THE USE AND MANAGEMENT OF EU FUNDS

1. The NAO exerts the right that at all times and at his discretion to monitor the

activities relating to the EU funding procedure undertaken by the following entities:

• the IA’s including those related activities carried out by the Project Leader, the SPO, the DAO and their respective staff

• the EU Unit in the Department of Contracts • the National Aid Coordinator • the Treasury

2. Monitoring may be carried out as follows:

2.1 That carried out on an ongoing basis involving mostly the validation and endorsement of the relative NAO forms. This type of monitoring is documented in checklists.

2.2 Through the formal Sectoral Monitoring Sub-Committees (SMSCs)

and the Joint Monitoring Committee (JMC) which will monitor Pre-Accession Programmes. SMSCs will be attended by the NAC, NAO, CFCU and IAs/Beneficiaries.

2.3 Formal on the spot checks which are usually carried out at the premises

of the entity subject to the monitoring or occasionally at the NAO’s office. This would involve close examination of document.

3. The type of monitoring referred to at item (2.3) may be initiated by the NAO

or any of his staff responsible for a particular project. In the latter case the NAO’s endorsement is required. As a general rule, these types of checks would be undertaken in respect of those entities or projects with a high risk of non-compliance and repeated deficiencies.

4. NF official responsible for a project should fill in Part A of “Monitoring

Report Form” and submit it to NAO for endorsement. 5. Same official to inform the relative entity or entities about the monitoring

exercise. 6. Following the monitoring exercise the NF official fills in Part B of the

“Monitoring Form” which is then discussed by the Assistant Director and eventually endorsed by NAO.

7. Once the “Monitoring Report Form” recording the whole exercise, including

recommendation, is endorsed by NAO the NF official undertakes the following action.

- Sends copy of “Monitoring Report Form” to relative entity for necessary action.

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- Inserts a copy in the relative project file and the “Monitoring Report File”

- Undertakes any follow up action to ensure compliance and to record progress.

8. Once follow-up action has been taken, the report is submitted to NF Assistant

Director for his endorsement and report is thereby concluded.

Part A - Monitoring Request

1 Entity to be monitored :

2 Monitoring would involve the following :

Programme -

Project -

Other Issues -(systems, procedures, filing, etc.)

3 Reasons behind Monitoring :

Routine Checks -

Others -

NAO

Date Date

Monitoring Report Form

Programme Manager

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Part B

Monitoring Report Recommendations Action taken Date

Conclusion:

___________________________ _______________________Programme Manager (NAO) Assistant Director

__________________ __________________Date Date

Monitoring Report Form

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Section H

Procedures for Request of Funds

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Procedures for Requesting Funds from the Commission 1. Once the National Fund (NF) is aware that in terms of the Memorandum of

Understanding (MoU) funds held at the Central Bank of Malta (CBM) need to be replenished to meet the requirements indicated by the IAs, the process for the compilation of the request for funds is initiated by the NAO.

2. The NF requests the Implementing Authorities (IA) to submit forecasts of cash

requirements / utilisation for the n+1 period, as well as a statement of payments effected at the beginning of the same period (NAO-03).

3. The Programme Manager at the NF fills in the relative forms for advance

payments in consultation with the Assistant Director and Officers in charge of monitoring the respective projects.

4. The Request of Funds is discussed in detail with the National Authorising

Officer (NAO), giving particular attention to the correctness of the figures. 5. Following such consultation and taking into consideration the cash flow

projections of the Implementing Authorities as well as their individual Progress Reports, an over-all Progress Report is compiled and this is once more discussed with the NAO for his approval and endorsement.

6. The NAO submits a formal request for funds to the EC. 7. The covering letter is copied to the National Aid Co-ordinator. 8. The Programme Manager shall monitor developments on the payment request

until the relative funds are received at the CBM. The FM shall deal with any problems / clarifications requested by the EC following consultations with NAO.

Section I

Reporting of Irregularities

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REPORTING OF IRREGULARITIES

GENERAL All measures should be taken by individuals and entities involved in the Management and Implementation of EU funded Projects falling within the various EU Pre-Accession Programmes, to ensure that procedures are followed as closely as possible. Likewise, it is of the utmost importance that verification of eligibility of expenditure and correctness of the payment process are duly certified following detailed checking to avoid irregularities. In spite of the above-mentioned measures, the possibility of irregularities, be they intended or unintended lapses cannot be ruled out. In view of this possibility it is to be pointed out that any person who, at any stage of contracting, implementation and payment, becomes aware of an irregularity, is duty bound to report it according to the procedures as laid down in this Section. Notwithstanding, and without prejudice to any audit checks and verifications which might be effected by the Internal Audit and Investigations Department and the National Audit Office, all key entities, Implementing Authorities and/or other beneficiaries shall be subject to checks by the National Authorising Officer or person/s delegated by him at any time and without previous notice, in relation to EU Funded and Co-financed Projects. All documentation requested by the National Authorising Officer or person/s delegated by him are to be made available on demand. THE CONCEPTS OF IRREGULARITY AND (SUSPECTED) FRAUD Definition of irregularity and (suspected) fraud Council Regulation (EC, Euratom) No. 2988/95 (Title I Article 1) The definition of irregularity is also to be found in Point 8 (a) of the Financing Memorandum, which stated that “Irregularity shall mean any infringement of a provision of Community law resulting from an act or omission by an economic operator, which has, or would have, the effect of prejudicing the general budget of the Communities or budgets managed by them, either by reducing or losing revenue accruing from own resources collected directly on behalf of the Communities, or by an unjustified item of expenditure.” This also applies to any infringement of a provision of the National law resulting from an act or omission by an economic operator, which has, or would have, the effect of prejudicing the National budget or budgets managed by them, either by reducing or losing revenue accruing from own resources collected directly on behalf of the Government of Malta, or by an unjustified item of expenditure.” The definition covers all behaviour, intentional or not (act or omission) by an economic operator, which has, or would have, the effect of prejudicing, both the general budget of the Communities, as well as the National budget. Its objective consequence must have been the infringement of a provision of the Financing Memorandum or of the relevant national law. Fraud Fraud is a specific type of irregularity, and distinguishes itself from other types of irregularity by its intentional nature.

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Section 8 (a) of the Financing Memorandum defines “fraud” as any intentional act or omission relating to:

(i) the use or presentation of false, incorrect or incomplete statements or documents, which has as its effect the misappropriation or wrongful retention of funds from the general budget, both National and/or that of the European Communities or budgets managed by, or on behalf of, the European Communities and/or the Government of Malta,

(ii) non-disclosure of information in violation of a specific obligation, with the same

effect, (iii) the misapplication of such funds for purposes other than those for which they are

originally granted REPORTING The reporting obligation of the Financing Memorandum applies both to all irregularities, including cases of (suspected) fraud.

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REPORTING PROCEDURES

When the irregularity is detected by the Implementing Authority (IA) 1. When an irregularity is observed, the official making the observation shall report in writing to

the Project Leader and submit all the necessary details he/she is aware of. If the Project Leader detects the irregularity then the procedure starts from item 2.

2. Following receipt of the report, the Project Leader shall complete the form NAO-04A add

his/her signature, date and stamp in the space provided. The Project Leader shall attach a certified true copy of the original report of 1 above and provide his/her own comments together with details of any remedial actions taken (if any). The Project Leader shall forward the documents to the Senior Programming Officer (SPO)

3. The Senior Programming Officer shall, in turn, add his/her signature to the form NAO-04A

together with his/her own comments on Annex 1. The original form NAO-04A duly completed shall be forwarded immediately to the Internal Audit Investigations Directorate (IAID) and copied to the Accounting Officer of the Implementing Authority and NAO.

4. If the irregularity is a request for payment in excess of what should be paid that has not been

effected, the Accounting Officer of the Implementing Authority shall immediately upon receipt of the copy of the NAO-04A form, withhold any payment intended to be processed. The Accounting Officer is to ensure that following receipt of the copy of NAO-04A, Payment is withheld until written authorisation is forthcoming from the National Authorising Officer.

5. If the irregularity consists of an actual overpayment that has already occurred, the

Implementing Authority shall provide full details in the relevant section of the NAO-04A showing, where possible, the:

supplier’s details the actual amount paid, the amount that was supposed to be paid the amount overpaid invoice number payment voucher number cheque number date when payment was effected explanatory comments

6. Upon receipt of the NAO-04A, the National Authorising Officer ascertains whether there is

sufficient evidence that the irregularity really exists. (a) If the irregularity has been detected but not yet effected, the necessary corrective actions

are indicated by the National Authorising Officer in liaison with the IAID, without prejudice to any other actions that might be deemed necessary by any other interested party.

(b) If the irregularity has occurred, the EU Commission is informed.

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(i) In case of an overpayment the Central Bank of Malta is also instructed to transfer funds, equivalent to the amount overpaid, from the Public Account to the relevant EU Bank Account where the EU Funds are held

(ii) The SPO acts as the contact point with the IA. Therefore, the IA informs the contractor, in writing, about the amount that has to be refunded.

(iii) If the contractor accepts to refund the overpaid amount, the whole sum can be paid either instantaneously in one lump sum, or else a written agreement is reached with the IA to refund the amount on a monthly instalment basis.

(iv) If, on the other hand, the contractor does not agree to refund the money overpaid as per iii above, an ad hoc meeting is organised between the NAO, Contracts, Treasury, SPO, IA and the contractor(if the latter accepts) to resolve the matter and discuss the terms of repayment.

(v) If the contactor does not agree to terms of repayment, then the IA/SPO has to file Legal Action against him/her.

It is to be noted that steps (iii) and (v) above are required to protect the financial interests of the Maltese Government since the amount of the overpayment would have already been transferred to the EU Bank Account as per 1 above to protect the financial interests of the Commission.

7. If the overpayment is not detected by the Implementing Authority, but is detected by the

horizontal stakeholders, the National Authorising Officer in liaison with the IAID shall notify the SPO who, in turn informs the IA. Following such notification the IA shall complete the whole process from 1 to 6 above just the same, this time indicating the Authority that primarily discovered the irregularity.

8. The Project Leader and the Senior Programming Officer, shall keep a copy of all irregularities

noted together with all relevant details, including names of individuals and/or parties involved, dates, actions taken and how the irregularity was solved. Any follow-up action (whether disciplinary, criminal, etc.) is to be noted.

9. The SPOs shall forward to the IAID a return of Irregularities on a Quarterly basis starting from

the date of notification of a contract. Nil returns shall be required in case where no irregularities have been noted.

10. Once the Irregularities reports have been collected, the IAID must compile the Standard Form

for quarterly communications of irregularities (see page 71). Henceforth, the IAID shall forward the report the OLAF Directorate C with a copy to DG Enlargement and NAO as per Commission’s request.

Irregularities to be reported to the Commission

1. In accordance with Point 8 a) of the Financing Memorandum, the IAID shall, without delay, report all suspected and actual cases of fraud and irregularity as well as all measures related thereto taken by the national authority to the Commission.

2. During the two months following the end of a quarter, the IAID shall inform the

Commission of the absence of cases of irregularity, in case there is no case of (suspected) fraud or other irregularity for a particular quarter.

3. There is no notification threshold. Any case of (suspected) fraud or other irregularity should

be reported, regardless of the amount.

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4. When the error or negligence is detected and spontaneously corrected before payment and does not result in any administrative or judicial penalty, there is no obligation to report the irregularity. This exemption does not apply when the error is discovered after payment because the administration must then undertake a recovery and consequently notify the case.

5. The obligation imposed in principle by the Financing Memorandum may nonetheless be

limited by the requirements of national legislation, “if national legislation provisions provide for the confidentiality of investigations”. In this case, communication of information shall be subject to the authorization of the competent court of tribunal. However, in so far as adherence to the objectives of confidentiality of investigations requires it, the IAID may confine itself to notifying facts, such as the amounts in question or the measure or programme concerned, which would not jeopardise the confidentiality of the proceedings.

6. The primary finding fact is not necessarily the formal document closing an administrative or

judicial procedure, for which the existence of an irregularity has actually been established, since the IAID must communicate at a later date any information relating to the irregularity which were not available when the facts were first reported.

7. The IAID must also inform the Commission during the two months following the end of

each quarter of the proceedings commenced after the initial report, administrative or judicial decisions taken during the proceedings and decisions terminating them.

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IMPORTANT NOTICE To all members of staff dealing with EU Pre-Accession Programmes 1. Every official involved in the EU funding process is obliged to report any type of irregularity.

Normally this reporting would be done through the hierarchical channels as indicated in form NAO-04A.

2. However, there might be isolated circumstances where the relative official feels constrained to

by-pass the normal system of reporting irregularities. Whenever this situation arises, the official is given the opportunity to report any irregularity directly to the IAID.

3. In such cases, the official making the report should make use of form NAO-04B. This form

shall be completed in the same manner indicated for form NAO-04A with the exception that it would not be referred to the Project Leader and/or the SPO for their relative endorsement, but submitted directly to the IAID.

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For IAID Use

Checked by: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Action Taken: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Date _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

IRREGULARITIES

Quarter from Jan/Apr/Jul/Oct to Mar/Jun/Sept/Dec (delete as appropriate) 1. Ministry / Department __________________________________

2. Name of Implementing Authority __________________________________

3. EU Pre-Accession Programme (i.e. 2000 etc) __________________________________

4. Title of Project Fiche __________________________________

5. Project Fiche Number __________________________________

6. Fiche Component whence irregularity __________________________________ 7. Contract Name __________________________________

8. Contract Number __________________________________ 9. Budget Line / Activity of Irregularity (Contract) __________________________________ 10. Contract / Supplier Name __________________________________

11. Contract / Supplier Address __________________________________

12. Contract / Supplier Contact Person __________________________________ (if different from 10 above)

FINANCIAL IRREGULARITIES EU Funds Malta Funds € Lm € Lm 13. Actual Amount Paid

14. Amount that was supposed to be paid

15. Amount overpaid / underpaid

16. Invoice Number __________________________________ 17. Payment Voucher Number __________________________________ 18. Bank Account Number __________________________________ 19. Cheque Number __________________________________ 20. Date when payment effected __________________________________ 21. If the irregularity is non-financial provide details on page 2

NAO-04A Form2006

74

Action taken / Action proposed by Project Leader: _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ Comments / Remarks by Senior Programming Officer _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ Supporting Documents attached: Report: YES / NO (delete where necessary) Other Docs: (if applicable provide list) _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________

Signature: _______________ Date__________

Project Leader Signature: _________________________ Date__________

Senior Programming Officer

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For IAID Use

Checked by: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Action Taken: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Date _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

IRREGULARITIES

13. Ministry / Department __________________________________

14. Name of Implementing Authority __________________________________

15. EU Pre-Accession Programme (i.e. 2000 etc) __________________________________

16. Title of Project Fiche __________________________________

17. Project Fiche Number __________________________________

18. Fiche Component whence irregularity __________________________________ 19. Contract Name __________________________________

20. Contract Number __________________________________ 21. Budget Line / Activity of Irregularity (Contract) __________________________________ 22. Contract / Supplier Name __________________________________

23. Contract / Supplier Address __________________________________

24. Contract / Supplier Contact Person __________________________________ (if different from 10 above)

FINANCIAL IRREGULARITIES

EU Funds Malta Funds

€ Lm € Lm 22. Actual Amount Paid

23. Amount that was supposed to be paid

24. Amount overpaid / underpaid

25. Invoice Number __________________________________ 26. Payment Voucher Number __________________________________ 27. Bank Account Number __________________________________ 28. Cheque Number __________________________________ 29. Date when payment effected __________________________________ 30. If the irregularity is non-financial provide details on page 2

NAO-04B Form2006

76

Supporting Documents attached: Report: YES / NO (delete where necessary) Other Docs: (if applicable provide list) _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________

Signature: _________________ Date:____________

Name in blocks: _________________

Ministry/Department: _________________

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CONFIDENTIAL Case No: _____________ (1) QUARTERLY COMMUNICATION OF IRREGULARITIES IN CONNECTION WITH THE IMPLEMENTATION OF THE PHARE NATIONAL PROGRAMME, AS REQUIRED BY THE FINANCING MEMORANDUM IDENTIFICATION OF COMMUNICATION Applicant Country: Case Number: _________ (1)

Quarter ______(2) Date Sent: Administrative Department in Applicant Country: Contact Point: Name: ________________ Phone: ____________ Fax: ________________ e-mail: _____________ DETAILS OF IRREGULARITY 1. Description of Operation 1.1 Name of Programme: 1.2 Commision Decision approving the programme: 1.3 Name of measure and title of project: 1.4 Applicant country's project number: 2. Provision Infringed 2.1 Community provision infringed: 2.2 National provision infringed: 3. Date of First Information Leading to Suspicion of Irregularity: 3.1 Source of first information leading to suspicion of irregularity: ______________________________________________________________________________

(1) With the exception of the last digit the case number remains the same and is composed of: candidate country's initials/year/three digit case number/PH for Phare/) for

initial communication, 1 for first update, 2 for second update etc. eg MT/02?001/ph/)

(2) Two digits for the year and two digits for the quarter eg 0203, 0206, 0209, 0212

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4. Manner in which Irregularity was discovered

5. Type of Irregularity

5.1 Practices employed in committing the irregularity:

5.2 Are these practices considered new Yes ( ) No ( )

6. Are Other Countries Involved?

6.1 If yes, has notification been sent to the respective countries? Yes ( ) Date and reference: No ( ) Not Known ( )

7. Period of Irregularity

7.1 Date on which, or dates between which, the irregularity was committed:

8. Authorities or Bodies

8.1 Authorities or bodies which drew up the official report on the irregularity:

8.2 Authorities or bodies responsible for administrative or judicial follow-up:

9. Date on which the Official Report on the Irregularity was drawn up:

10. Name and Address of National and Legal Persons Involved

10.1 Natural Persons: - Name: - First Name: - Address: - Postal Code: - City: - Country: - Function:

10.2 Legal Persons

- Name: - Registered Office: - Postal Code: - Country

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FINANCIAL ASPECTS 11 Total amount and distribution between sources of financing 11.1 Total amount of the operation: 11.2 Community financing: 11.3 Applicant country financing: 12. Nature and amount of the expenditure found to be irregular 12.1 Nature of expenditure: 12.2 Total amount of the expenditure: 12.3Community expenditure: 12.4 Applicant country expenditure: 13. Amount which would have been wrongly paid if the Irregularity had not been discovered 14. Financial consequences 14.1 Amount of expenditure under 12.2 not yet paid: Amount EU: Amount applicant country: 15. Possibility of recovery: 16. Total amount to be recovered: 16.1 Community Share: 16.2 Applicant country share: 17. Total amount to be recovered: 17.1 Community share: 17.2 Applicant country share:

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STAGE OF PROCEDURES 18. Action by Applicant Country 18.1 Interim measures: 19. Administrative Proceedings: 20. Judicial Proceedings: 21. Reasons for any abandonment of recovery proceedings: 21.1 Was the Commission notified before the decision to abandon the recovery procedure was taken? Yes ( ) Date and reference, No ( ), Not Known ( ) 22. Have criminal proceedings been abandoned? Yes ( ) No ( ) Not Known ( ) 23. Termination of Procedures 24. Has the Commission been notified of administrative or judicial decisions or the main points thereof, concerning termination of proceeding ? Yes ( ) date and reference No ( ) Not Known ( ) 25. Penalties imposed (administrative and/or judicial): 26. Additional observations:

Section J

Inventory & Publicity

82

Circular To all SPOs and Project Leaders

1. Rationale Article 9 of Annex A - Special Conditions - of the Financing Memoranda, refers to publicity measures to be taken by the National Authorising Officer regarding EU-funded Projects under Pre-Accession Programmes. Further reference can also be made to Commission Regulation (EC) No 1159/2000 of 30 May 2000 which deals with information and publicity measures to be carried out by the Member States concerning assistance from the Structural Funds. This regulation outlines the modalities of publicity and emphasizes the responsibility of the Member State receiving the Structural and Cohesion Funds to cater for such requirement. The aims of information and publicity measures shall be to inform:

• potential and final beneficiaries • competent public authorities • trade organisations and business circles • the economic and social partners • non-governmental organisations, especially bodies to promote equality

between men and women and bodies working to protect and improve the environment

• project operators and promoters about the opportunities offered by joint assistance from the European Union and the Candidate Country in order to ensure the transparency of such assistance, and

• inform the general public about the role played by the European Union in cooperation with the Candidate Country in the assistance concerned and its results.

All Pre-Accession Programmes, with the exception of the 2003 Programme, are now at an advanced stage of Implementation. Indeed most of the supply contracts that were projected under the 2000 and 2001 Programmes, have by now been contracted and in many cases, relative supplies received and equipment installed. 2. Inventory Attached to this letter-circular, you will find a new form NAO-05 which deals with the Inventory of equipment/supplies procured through EU-funded Projects (whether paid in full or in part by the EU). Although this equipment must, and should be inventorised as Government assets according to standard procedures, it should also be included in the specific Inventory of EU-funded items, kept by the National Authorising Officer. Moreover, the NAO is requesting Implementing Authorities to submit details of identification numbers and location of equipment, in order to facilitate audits carried out by local or the Commission's Authorities.

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In order to compile and maintain proper records of all inventorised items which are wholly or partly financed out of Pre-Accession Funds, you are kindly requested to fill the attached form. Particular reference is made to column 7 in the attached form. The NAO would like to stress that any change of location of this equipment is to be invariably notified to this Office even if the transfer of items would have been noted at Departmental Inventory level. The format of the form has been done purposely to allow the Officer i/c of the Inventory to use a copy of the original one in case of change of location (just add the new location and send to NAO's Office). Form NAO-05 should be duly filled, signed and dated and forwarded to the NAO following the delivery of any equipment/supplies. 3. Publicity Following the Inventory exercise at 2 above, the NAO will then proceed with submitting the equivalent amount of stickers stating that "This equipment is financed by the European Union" or "This equipment is co-financed by the European Union", as the case may be. A sticker is to be attached to every item of equipment in a place which is easily visible (e.g. the front frame of a monitor) in order to distinguish it from the other paraphernalia. These stickers should never be removed and in case of accidental removal, a request for replacement is to be made forthwith to the NAO. Edward Coleiro National Authorising Officer.

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EQUIPMENT/SUPPLIES INVENTORY FUNDED THROUGH EU PRE-ACCESSION FUNDS Pre-Accession Programme: Project:

Name: Number:

Component No.:

Value of Project: EU Pre-Accession Funds:

Malta Co-Financing:

________________________________ ________________________________________________________________________________________________ Euro___________________ Euro___________________

Project Fiche Kris No. Implementing Authority Contract:

Name: Number:

Value: Lot Nos.: Lot Nos.: Lot Nos.:

______________________________________ ______________________________________ ____________________________________________________________________________Euro__________________________________ __________________________________________________________________________________________________________________

List of items procured 1

Description of items 2

Serial / Identification Numbers 3

Department where item is installed

4 Section within the

Department

5 Exact address where items

can be found

6 Certify whether item has

been inventorised

7 Transfer of Equipment from

original location

_____________________ _____________________ ____________________ _________________________ Project Leader SPO Officer i/c of Equipment Inventory DATE Number of stickers requested _________________________

NAO-05 Form2006

Section K

Organisational Changes Procedures

86

ORGANISATIONAL CHANGES In line with the Memorandum of Understanding, the National Authorising Officer (NAO) is the top leader of Pre-Accession Aid and Transition Facility systems. The NAO acts not only as manager of the tasks allocated to the NF, but also has the overall responsibility for the implementation system in conjunction with the required cooperation of the horizontal bodies, the NAC, the IAID, the Treasury and particularly the Department of Contracts with regard to tendering and contracting. Article 5.3 of the EDIS Commission Accreditation Decision states as follows: "The Republic of Malta shall inform and obtain approval from the Commission on any substantial change in the national and sector programme/project management capacity, financial control procedures and structures regarding public finance described in the application by the NAO. This implies that the NAO needs to assess all changes related to the above and therefore:

• In cases of minor changes, the NAO could approve them • In cases of substantial changes, the NAO would submit the proposal to the EC for

approval In both cases it is up to the NAO to decide whether changes are minor or substantial in nature. It is therefore compulsory that the NAO is informed of all intended organizational changes, prior to their coming into actual effect, indeed upon their actual conception. The issue goes even beyond this: the NAO must be informed of any problems which necessitate changes as soon as these arise, for his intervention and lead as he/she deems necessary. In view of the above the procedure indicated below is to be observed by all entities involved in Pre-Accession Aid and Transition Facility Programmes: be they horizontal - the NAC, the Department of Contracts, the Treasury as well as the SPO's at the line Ministry level and other Departments/Entities responsible with the implementation of particular projects. Procedure A new and permanent item will be included in the agenda of the Coordination meeting which is usually, but not necessarily, held once a month between the horizontal stakeholders. The item will be:

• Changes envisaged: o Problems in the organizational system (if any) o Organizational changes including staff complement compared to the

relative workload o Changes in the structure of entities o Changes in procedures in the respective entities o Changes to legislation affecting EU Pre-Accession Programmes and

Transition Facility o Financial Control Changes o Assessment of any of the above changes.

In addition, and as stated above, all organizations, both horizontal, as well as SPOs and project implementing bodies are to report to the NAO:

87

• Any structural and organizational problems arising from new requirements as

indicated in the five points above. • Reporting is to be done on the template NAO-06 which is to be filled in

completely and immediately submitted to the NAO as soon as the requirement crops up. The NAC and the DOC are to be copied in if it is not the NAC or DOC themselves undergoing the change.

• No change is to be effected unless the written approval – either by official letter or e-mail – is given by the NAO.

• In cases where the approval of the EU Commission is required, reports are still to be submitted to the NAO who will in turn liaise with the relative Commission Services and communicate the ensuing decision through the approved channels of communication viz, official letter and/or electronic mail.

Reporting of changes in staff complement must be done in all cases both when:

• Additional personnel is deployed and • More important when there is a reduction of staff

The report should contain:

• The organization’s organigram prior to the change • The new organigram • Reasons for the addition/reduction of staff • How the tasks of the outgoing staff is going to be redistributed to the remaining

incumbents • The impact of such addition/reduction on the organization • The assessment of the head of the organization on such change

If the report is drawn up by the Project Leader:

• It should be forwarded to the NAO through the SPO who will add his/her comments on the NAO-06.

• The SPO will ensure that the report reaches the NAO (and simultaneously copy the NAC and the Department of Contracts) within five working days of receipt.

• The NAC and the DOC will forward any comments to the NAO within five working days of the receipt of the communication.

• No comments from the NAC and the DOC within the five working days will imply tacit agreement with the report

The NAO will examine the report and make his/her own assessment and will communicate his/her decision to the SPO and Project Leader (copying the NAC and DOC) within five working days which might be extended as necessary if the NAO feels the need to make an on-the-spot visit to facilitate his assessment or request approval from the EU Commission. The NAO can delegate tasks to any of the horizontal stakeholders if he/she deems such entity competent depending on the nature of the change. When tasks are delegated, reporting must still be done to the NAO in the procedure prescribed above.

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EU Paying Authority, MFIN (Tel no: 25998297)

Report on Organisational Changes

(Report must be forwarded to the NAO and copied to the DOC and NAC)

PART I Ministry ________________________________

Department/Entity ________________________________

Programme/s ________________________________

Project/s ________________________________

1. Description of Intended Change:

_____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

2. Assessment by the Head of Organisation on the way the intended change is

going to impact on the implementation of the Pre-Accession and Transition

Facility Projects:

_____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

NAO-06 Form 2006

89

3. If the intended change is going to effect the number of staff currently

employed within the Department/Entity, the following supporting

documentation/comments must be provided:

• The organization’s organigram prior to the change

• The new organigram

• Reasons for the addition/reduction of staff

• How the tasks of the outgoing staff is going to be redistributed to the remaining

incumbents

NAME IN BLOCK ____________________________ DATE _______________

SIGNATURE _____________________________

PART II (To be compiled by the SPO unless the Report-Part I has been generated by himself) Comments and recommendations on the proposed organisational change:

_____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

NAME IN BLOCK ____________________________ DATE ______________

SIGNATURE (SPO) _____________________________

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PART III (To be compiled by the NAO) 1. Assessment by the NAO on the intended organisational change: _____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

2. Decision and/or recommendations on the intended organisational change in

case of minor change:

_____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

3. EU Commission’s Decision and/or recommendations on the intended

organisational change in case of a substantial change:

_____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

NAME IN BLOCK ____________________________ DATE ______________

SIGNATURE (NAO) _____________________________

Annex A

Planning & Priorities Co-ordination

Directorate

Internal Checklist

For use by PPCD

92

PROGRAMMING PROCEDURE CHECKLIST

Programme Year:

Proposal/Project Fiche:

Legend:

EC European Commission FD Financing Decision PS Permanent Secretary SPO Senior Programming Officer PPCD Planning and Priorities Coordination Division, OPM

Procedures YES NO N/A PPCD issues call for proposals and sends it by electronic mail to PS and SPO of each line ministry.

PPCD receives proposals within given time. PPCD evaluates eligibility of proposals received PPCD draws up list of proposals received and a list of eligible proposals.

PPCD sends list of eligible proposals with back-up information to EC

PPCD informs line ministries as to whether their proposals are being considered for funding.

PPCD organises bilateral meetings with line Ministries to discuss the proposals being considered.

PPCD receives from line ministries additional information/revised proposals requested at bilateral meetings and forwards information to EC.

PPCD organises First Programming Mission with EC. Agenda of meetings is sent to line ministries and core group of programming.

PPCD chairs the Programming meetings and together with EC makes a preliminary selection of proposals for inclusion in the programme.

PPCD informs line ministries on the outcome of the Programming meetings and requests the submission within a given time of the selected proposals in a standard project document as per template.

PPCD receives draft project documents and forwards to EC for comments. (Vetting of project documents is carried out by PPCD during the preparation of the document.)

PPCD organises a Second Programming Mission with EC. Agenda is sent to line ministries and core group of programming.

PPCD chairs the Programming meetings. Amendments to project documents are discussed with line ministries and a date is agreed when amended documents are to be submitted to PPCD.

PPCD receives amended documents and forwards documents to EC for launch of inter-service consultation.

For use by PPCD

93

PPCD presents list of projects for approval by Cabinet. PPCD informs line ministries of date of signature of FD. Name of Programme Manager ______________________ Signature _____________________ Date_______________ Name of Supervisor _______________________ Signature _____________________ Date_______________

For use by PPCD

94

PPCD TWINNING PROCEDURE CHECKLIST

Project Title:

Twinning Number:

Legend:

DoC Department of Contracts EC European Commission FD Financing Decision IA Implementing Authority NAO National Authorising Officer NCP National Contact Point MS Member State PPCD Planning and Priorities Coordination Division, OPM SPO Senior Programming Officer

Procedures YES NO N/A PPCD received by e-mail from DoC proposals submitted by MSs. PPCD participated in selection meetings between MSs administrations making proposals and IA.

PPCD received from DoC copy of notification to MSs of the selection made by the IA.

IA and MS draw up detailed Twinning contract. DoC (and PPCD) will provide advice, if necessary.

PPCD received from DoC draft Twinning contract for PPCD’s assessment and comments.

PPCD transmitted comments to DoC. IA/MS revised draft Twinning contract to take account of comments. Meetings between DoC, PPCD, NAO, IA/MS held at this stage to clarify certain issues.

PPCD received from DoC copy of DoC’s approval to the MS/IA of the Twinning contract.

PPCD received photocopy of signed Twinning contract from DoC. Name of Programme Manager ____________________ Signature _____________________ Date_______________ Name of Supervisor _____________________ Signature _____________________ Date_______________

For use by PPCD

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TERMS OF REFERENCE PROCEDURE CHECKLIST

Twinning ‘Light’

Project Title:

Programme Year:

Legend:

DoC Department of Contracts IA Implementing Authority NAO National Authorising Officer MS Member States PPCD Planning and Priorities Coordination Division, OPM DPF Detailed Twinning ‘light’ Project Fiche

Procedures YES NO N/A PPCD supervises finalisation of DPF by IA. PPCD submits DPF to DoC (electronically) copied to NAO and IA. PPCD attends (as observer) evaluation meeting organised by DoC. PPCD receives endorsed minutes of evaluation meeting from DoC. Name of Programme Manager ____________________ Signature _____________________ Date_______________ Name of Supervisor _____________________ Signature _____________________ Date_______________

Annex B

Contracts Department

Internal Checklist

For use by the Department of Contracts

TWINNING LIGHT PROCEDURES CHECKLIST

Programme: ___________________ Project Details: _____________________________________________________

YES NO N/A1 Did PPCD submit approved Terms of Reference to DC?2 Did DC request launching from ECD?3 Did ECD distribute offers (from MS) to DC?4 Did DC distribute offers to IA for review?5 Was NAO1 Form received?6 Did DC organise evaluation process with IA and PPCD?7 Any correspondence evidencing this?8 Did DC approve selected offer?9 Did DC submit a copy of the evaluation report inclusive of selected MS offer to PPCD?

10 Was it endorsed?11 Did IA send a draft contract to DC for approval?12 Did DC make any comments on the draft contract?13 Did DC receive a final draft with all amendments?14 Was it approved by IA and MS?15 Did DC inform IA partner (Malta) to proceed with finalising four copies of final TL contract?16 Was it signed by IA?17 Did DC sign the final contract?18 Was it signed by MS?19 Did MS retain an original copy of the TL?20 Were 3 copies received by DC?21 Are all pages initialled?22 Did DC forward a signed original TL to IA?23 Did DC forward signed original TL contract to ECD?24 Did DC forward a copy of the evaluation report inclusive of selected MS offer to ECD?25 Did DC forward a certified true copy of original contract to NAO?

Name of Checking Officer ____________________ Name of Supervising Officer ____________________

Signature ____________________ Signature ____________________

Date ____________________ Date ____________________

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DC Department of ContractsEC European CommissionFM Financing MemorandumHQ Malta Team at DG EnlargementIA Implementing Authority

NAO National Authorising OfficerNAC National Contact PointMS Member State

PPCD Planning & Priorities Co-ordination DirectorateSPO Senior Programming Officer

Programme: ___________________ Project Details: __________________________________________

YES NO N/A1 Did EC distribute offers from MSs to DC?2 Did DC register offers from MSs?3 Did DC distribute offers to IA for review (copying PPCD)?4 Did DC approve evaluation committee submitted by IA?5 Did DC organise evaluation meetings with MSs, IA and PPCD?6 Any correspondence or minutes of meetings evidencing this?7 Did DC approve the evaluation report submitted by IA?8 Did DC notify the selected MS (copying other MSs, NCP, EC and PPCD)?9 Did IA send a draft contract to DC for assessment?

10 Did DC send copy of draft contract to NAO and PPCD for their assessment and comments?11 Did DC send consolidated comments to IA / MS?12 Did DC receive a revised draft with all amendments?13 Did DC request EC opinion on the work plan?14 Did DC communicate the EC binding opinion to IA / MS?15 Did DC receive final draft of Twinning contract modified according to the EC opinion?16 Did DC approve the final contract and notify IA / MS (copying NAO and PPCD)?17 Did DC receive four originals of the contract and annexes signed and initialled by MS and IA?18 Did DC endorse the Twinning contract and annexes?19 Did DC notify financing decision to the Twinning partners attaching originals of the contract?20 Did DC forward third original of the Twinning contract to the NAO?21 Did DC forward a copy of the signed contract to the PPCD and EC?

Name of Checking Officer ____________________ Name of Supervising Officer ____________________

Signature ____________________ Signature ____________________

Date ____________________ Date ____________________

TWINNING PROCEDURES CHECKLIST

98

For use by the Department of Contracts

SUPPLIES, SERVICES AND WORKS CONTRACTS CHECKLIST

Programme: ___________________ Project Details: ____________________________________________

YES NO N/APREPARATION OF TENDER DOSSIER AND SPECIFICATIONS

1 Was the Tender Dossier (TD) drafted?2 Is it a supplies and works contract? Have the Full Technical Specifications been

prepared?3 Is it a service contract? Have the Terms of Reference been prepared?4 Was this included in the TD?5 Was it forwarded to the EU Unit?

VETTING AND APPROVAL OF TENDER DOSSIER6 Is there any Scrutiny evidence?7 Were there any amendments?8 Was the IA informed of the amendments?9 Was the original/amended TD returned by the SPO?

10 Was the TD finalised?11 Were the three [3] original NAO Form 1s drawn up? 12 Was this signed by the PL?13 Was this countersigned by the SPO? 14 Were the funds committed?15 Did the DAO certify the NAO Form 1?16 Did the NAO certify the NAO Form 1? [ie 4 signatures in all]17 Does DC has the final TD text?18 Did DC approve the final TD?19 Did DC notify (by letter) the approval of the final TD?20 Did letter instruct the IA to prepare 30 copies of TDs?21 Was this letter copied to NAO?

PUBLICATION OF TENDER 22 Was the publication of the TD in accordance to the Public Contracts Regulations?

23 Did DC instruct IA to nominate the Evaluation Committee (EC)? (Chairman, Secretary + 3 Evaluators)

24 Is there evidence that the evaluators are professional / technical persons?25 Were the nominations approved by the DC?

99

For use by the Department of Contracts

TASKS OF EVALUATION COMMITTEE26 Are there invitation letter and meeting minutes of the familiarisation meeting?27 Was the tender opened as per TD details?28 How was it ensured that there was no conflict of interest between EC and

bidders?29 Were evaluation sessions held?30 Was the DC present during the evaluation sessions?31 Was the report forwarded to the DC?32 Was the full assesment report compiled?33 Was it approved by the DC?34 Was an official award notice published?35 Was the successful bidder informed by an official letter?36 Were the unsuccessful bidders informed of outcome?37 Were the contracts prepared?38 Were they signed by the DC, IA and the successful tenderer?39 Did DC forward a signed original contract to the successful tenderer?40 Did DC forward a signed original contract to the IA?41 Did Dc retain a signed orginal of the contract?42 Did the successful tenderer present a Performance Guarantee?4344

Name of Checking Officer ____________________ Name of Supervising Officer ________________

Signature ____________________ Signature ____________________

Date ____________________ Date ____________________

100

Signature Twinning Task Manager: ...

Twinning contract submission to Steering Committee CHECKLIST

Twinning Contract No ... (Twinning code + Full title)

101

Substance Criteria, checked by the Sectoral Task manager

Comments

Does the project comply with the aims set out in the Project fiche? Yes/No/Comments

Is the aquis to be implemented clearly stated? Yes/No/Comments

Is the obligation of results addressed? Are there clear benchmarks? Yes/No/Comments

Is there a clear reference to the respective responsibilities of both the MS and BC partners for the implementation of the project?

Yes/No/Comments

Are both teams clearly identified and do they seem appropriate? Yes/No/Comments

Is there a clear implementation schedule with a realistic timeframe? Yes/No/Comments

Are the individual action components clearly identified in terms of inputs (staff and other) and connected costs (activity based budget)?

Yes/No/Comments

Does the work plan foresee adequate coordination with ongoing projects (Phare or other) in the same field?

Yes/No/Comments

Are the language issues being adequately addressed? Yes/No/Comments

Formal and Financial Criteria Comments

Is the Contract initialled by the responsible authorities in the MS and CC?

Yes/No/Comments

Are the full details of a contact person for both the CC and the lead MS provided? These contacts will receive the letter giving the Steering Committee response to the Contract

Yes/No/Comments

If relevant, is there a mandate from the MS partner(s) giving the lead MS partner authority to act and sign on its behalf?

Yes/No/Comments

Is a RTA foreseen and are the costs for him quantified? (CM) Yes/No/Comments

Are detailed CVs attached, especially for the proposed RTA, but also for the project leader and principal short-term experts?

Yes/No/Comments

Is the total budget in line with the amount allocated for this project? (CM)

Yes/No/Comments

Does the CC formally agree to providing adequate working resources and equipment for the RTA?

Yes/No/Comments

Annex C

National Authorising Office

Internal Checklist

For use by NAO

103

PAYMENT CHECKLIST

Programme:

Project:

Tenders/Financial Commitments:

Yes No 1.0 NAO form 1.1 Is NAO-02 attached? 1.2 Is NAO-02 (Annex A) attached? 1.3 Are they correctly filled, signed and dated? 1.4 Is the relative NAO-01 form approved by DG Contracts 2.0 Invoice 2.1 Is it properly certified? (Check stamp, signatures and date) Project Leader Senior Programming Officer 2.2 Is supporting documentation e.g. certificate of origin, users acceptance

certificate, bills of quantity etc………………adequate?

3.0 Type of Payment 3.1.1 Is it an advance payment? 3.1.2 If yes, is there a Bank Guarantee? 3.1.3 If no, is there any derogation re Bank Guarantee? 3.1.4 Is the B/G in order? 3.2 Is it an interim Payment? 3.3 Is it the Final Payment? 4.0 Availability of Funds 4.1 Are EU Funds available in the relative N.P. account at CBM?

(Check out with Ms. D. Decelis)?

4.2 If 4.1 is no, do you recommend that payment be effected out of NPAA Vote (i.e., Malta Government Funds) as a temporary measure?

Checking Officer – signature and name in block Date Counter—Checking Officer Date National Authorising Officer Date

For use by NAO

104

CHECKLIST FOR REQUEST FOR FUNDS FROM THE COMMISSION

PROGRAMME: _______________________ INSTALMENT____________/ BALANCE / ADVANCE

Yes

No

1 Have the CBM Bank Statements been received

2 Has the level of funds in the CBM account been checked?

3 Has the Perseus Statement form Treasury been forwarded

4 Have you reconciled all balances and statements?

5

Does the aggregate amount of funds deposited in the NF and the

Treasury exceed 10% of the total amount of the FM?

6 Have there been any changes to the Bank A/C since last request?

7 If yes, have the revised mandates been sent to the Commission?

8 Have the NAO-03 form been requested from the IAs

9 Have all the NAO-03 form been received by the NAO?

10 Has the Form for Request for Funds been filled?

11 Over all progress report compiled.

12 Has it been vetted by the NAO or his Asst. Director?

13 Covering letter done.

14 NAO’s approval and endorsement effected.

15 Covering letter copied to the NAC and CBM.

16 Formal Request for Funds submitted to EC.

For use by NAO

105

17 Funds received in CBM account.

18 If no to 17, have queries been received from Brussels?

19 If yes to 18, enter the queries in the spaces provided below and tick the

box next to each item when the query has been effectively tackled

If a fresh Request for funds application has to be re-drawn use another sheet.

Name in Block: _____________________

Signature: _____________________ Date_____________

Programme Manager

Annex D

Treasury Department

Internal Checklist

Internal Checklist TR/TF-10 version 1.0

Folio Number:- Form TR/TF - 10 (January 2006) ####Treasury Department EU Financing Unit

Internal Checklist [PAYMENT PROCEDURE]

BOX I

1 B A S I C I N F O R M A T I O N

1.1 FINANCIAL PROGRAMME: Pre-Accession [2002]

1.2 TITLE OF SUB-PROGRAMME:

1.3 REFERENCE# OF SUB-PROGRAMME:

1.4 IMPLEMENTING AUTHORITY:

1.5 TITLE OF PROJECT:

1.6 REFERENCE# OF PROJECT:

1.7 CONTRACTOR:

1.8 TYPE OF CONTRACT: Supply Contract

BOX II Yes No n/a

2.1 C O N T R A C T I N G 2.1.1 IS THE PAYMENT REGULATED BY ANY CONTRACT DOCUMENT?

2.1.2 PURSUANT TO THE ABOVE PROJECT IMPLEMENTATION, DID EUFU† ACT UPON ANY OTHER PAYMENT BEFOREHAND?

2.1.3 DOES EUFU HOLD, IN FULL OR IN PART, A COPY OF THE CONTRACT?

2.1.4 ALTERNATIVELY, DID THE NAO‡ SUBMIT A COPY OF THE CONTRACT?

2.1.5 HAS THE NAO PROVIDED A COMPLETE SET OF THE CONTRACT?

2.1.6 ARE THE CONTENTS OF THE DOCUMENT SUFFICIENT FOR THE PERFORMANCE OF PAYMENT?

2.1.7 IF NOT, DID EUFU REQUEST A COPY OF THE MISSING DOCUMENT?

2.1.8 DID THE COMPETENT AUTHORITY SUBMIT THE REQUIRED DOCUMENT?

2.1.9 AT THIS POINT, CAN EUFU PROCEED WITH PAYMENT?

Inse

rt a

ny

rem

arks

dee

med

ne

cess

ary

2.2 C O N T R A C T I N G [ A D D E N D U M ] 2.2.1 DID THE NAO REPORT ANY AMENDMENT TO THE CONTRACT?

2.2.2 IS THERE ANY SIGNIFICANT CHANGE TO THE ORIGINAL TERMS AND CONDIONS OF CONTRACT?

2.2.3 WAS THE ADDENDUM SIGNED BY BOTH THE CONTRACTING AUTHORITY AND CONTRACTOR?

BOX III Yes No n/a

3.1 A U T H O R I S A T I O N 3.1.1 DID THE NAO AUTHORISE PAYMENT?

3.1.2 IS THE NAO-2 FORM ATTACHED?

3.1.3 IS THE NAO-2 FILLED IN SATISFACTORILY?

3.1.4 IS THE NAO-2 (ANNEX A) ATTACHED?

3.1.5 IS THE INVOICE OR EQUIVALENT REQUEST FOR PAYMENT ATTACHED?

3.1.6 AT THIS POINT, IS IT APPROPRIATE TO REQUEST A COPY OF THE MISSING DOCUMENT FROM THE NAO? NAO-2

3.1.7 DID THE NAO SUBMIT THE MISSING DOCUMENT?

3.1.8 DID THE NAO VALIDATE THE INVOICE OR EQUIVALENT REQUEST FOR PAYMENT?

3.1.9 IS THE CONTRACTOR/FINAL RECIPIENT CORRECTLY ESTABLISHED?

3.1.10 IS THE INVOICE OR EQUIVALENT REQUEST FOR PAYMENT IN LINE WITH LEGISLATIVE REQUIREMENTS?

3.1.11 WERE THE RELEVANT TERMS AND CONDITIONS OF CONTRACT APTLY OBSERVED?

3.1.12 IS THERE ANY NEED FOR FURTHER CLARIFICATIONS?

3.1.13 IN LINE WITH THE ABOVE PROCEDURE, IS IT APPROPRIATE TO RETURN ALL CORRESPONDENCE TO THE NAO?

3.1.14 PROCEED WITH PAYMENT?

Inse

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ny

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arks

dee

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cess

ary

Internal Checklist TR/TF-10 version 1.0

3.2 A U T H O R I S A T I O N [ C L A R I F I C A T I O N ] 3.2.1 DID THE NAO RE-SUBMIT THE DOCUMENTATION?

3.2.2 WAS IT PROVIDED IN FULL?

3.2.3 WAS THE REQUESTED CLARIFICATION FULLY ATTAINED?

BOX IV Yes No n/a

4.1 F I N A N C I N G 4.1.1 IS THIS AN EU FUNDED PAYMENT?

4.1.2 IS THERE ANY ELEMENT OF PARALLEL-FINANCING?

4.1.3 DID THE NAO PROVIDE FUNDS IN THE PRE/TIF ACCOUNT AT CBM§?

4.1.4 IF NOT, DID THE NAO AUTHORISE PAYMENT OUT OF GOVERNMENT’S OWN RESOURCES?

4.1.5 ARE THE REQUIRED RESOURCES AVAILABLE FOR DISPOSAL?

4.1.6 DOES THE INVOICE OR EQUIVALENT REQUEST FOR PAYMENT CONTAIN ANY OTHER CHARGES?

4.1.7 ARE THESE CONSIDERED AS AN ELIGIBLE EXPENSE?

4.1.8 SHOULD EUFU PROCEED WITH FULL PAYMENT?

4.1.9 ARE THE REQUIRED RESOURCES AVAILABLE FOR DISPOSAL?

4.1.10 PROCEED TO PREPARE THE NECESSARY DAS COMMITMENT FORM AND CONFIRM?

BOX V Yes No n/a

5.1 P A Y M E N T [ A U T H O R I S A T I O N ] 5.1.1 DOES THE CONTRACT DOCUMENT CONTAIN VALID BANKING INFORMATION?

5.1.2 DID THE CONTRACTOR SUBMIT OTHER WRITTEN NOTIFICATION INFORMING WHERE TO RECEIVE PAYMENT?

5.1.3 ARE THERE ANY SIGNIFICANT CHANGES IN THE BANK DETAILS?

5.1.4 WERE THE CHANGES PERFORMED IN COMPLIANCE WITH THE CONDITIONS OF CONTRACT?

5.1.5 IS THE CONTRACTOR REQUIRED TO RECTIFY THIS SITUATION?

5.1.6 DID THE CONTRACTOR MEET HIS OBLIGATIONS SATISFACTORILY?

5.1.7 PROCEED TO PREPARE THE REQUIRED DOCUMENTS AND CONFIRM?

DAS COMMITMENT DEBIT ADVICE LETTER TRANSFER FUNDS TRANSFER DEBIT ADVICE/DRAFT 5.1.8 DID THE ACCOUNTING OFFICER FULFIL THE REQUIRED SYSTEM INPUTTING?

5.1.9 DID THE ACCOUNTING OFFICER CERTIFY THE PAYMENT DOCUMENTS AS PROVIDED FOR PURSUANT TO POINT 5.1.8?

5.1.10 WERE MANDATORY SIGNATORIES A AND B OBTAINED?

5.1.11 WAS THE RELEVANT DOCUMENTATION SENT TO CBM?

5.2 P A Y M E N T [ C O N F I R M A T I O N ] 5.2.1 DID CBM EFFECT PAYMENT SUCCESSFULLY?

5.2.2 IS THE CONTRACTOR REQUIRED TO ACT UPON ANY CHANGE?

5.2.3 DID THE CONTRACTOR FULFIL THIS REQUIREMENT?

5.2.4 DID EUFU RE-SUBMIT, IN WHOLE OR IN PART, THE REVISED PAYMENT DOCUMENTS?

5.2.5 DID THE EQUIVALENT MTL AMOUNT SUFFICE?

5.2.6 IF NOT, ARE ANY ADDITIONAL FUNDS REQUIRED?

5.2.7 IF YES, AUGMENT THE AD-HOC BANK ACCOUNT WITH THE RESULTANT DIFFERENCE IN R.O.E. AND SUBMIT TO CBM

5.2.8 DID EUFU COLLECT ANY DRAFT PAYMENT ISSUED BY CBM?

5.2.9 DID EUFU SUBMIT TO THE NAO A CERTIFIED COPY OF THE NAO-2, INFORMING THE LATTER WITH PAYMENT?

5.2.10 DID EUFU SUBMIT COPIES OF THE RELEVANT PAYMENT DOCS. TO THE DEPARTMENTAL ACCOUNTING OFFICER?

5.2.11 DID THE DEPARTMENTAL ACCOUNTING OFFICER ACKNOWLEDGE RECEIPT OF DOCUMENTS?

BOX VI

DATE: 2 0 0 6 EU FINANCING UNIT

(Signature and name in block)

† EU Financing Unit, Treasury (Malta) ‡ National Authorising Officer, International Relations Directorate, Ministry of Finance § Central Bank of Malta, Valletta

DEBIT ADVICE

Department:

Date

Dept. Ref.

CBM Ref. Voucher No.

General ManagerCentral Bank of Malta

Please debit the Public Account with the equivalent/amount of (Currency)

Amount in figures(Amount in words)

by credit/against payment

in favour of

in respect of

Certified correct and due note has been taken in the Commitment Book.

Head of Department Accounting Officer

Accountant General Cashier

ORIGINAL109

Incidence of charge

Drawn up by: Checked by:

CENTRAL BANK OF MALTAVALLETTA

Date Your Ref EP/19/03 Vol. II Other Ref

Date Vch. No. Vote

BENEFICIARY (NAME):

ADDRESS:

BENEFICIARY'S BANK/BRANCH:

ACCOUNT NUMBER:

IN RESPECT OF INVOICE/CLAIM NO.: DATED:

GOODS/SERVICES (brief description):

CHARGES: LOCAL FOR OUR BENEFICIARY'S A/C

FOREIGN FOR OUR BENEFICIARY'S A/C

F/C AMOUNTAMOUNT OF TRANSFER

IN FOREIGN CURRENCY

DEBIT ACCOUNT Rate

MTL

COMM

MAIL CABLE

AUTHORIZED SIGNATORIES CHARGES

DEPARTMENT SIGNATORIESMTL

CENTRAL BANK OF MALTAFor CBM use

Ref No. Contract Date Bank

ORIGINAL110

(FOR TREASURY USE)

BOP/8

CENTRAL BANK OF MALTAVALLETTA

PLEASE ISSUE THE FOLLOWING DRAFT/S APPLICANT'S REF

DATE

TOTAL

DEBIT A/C PAYMENT IN CASH

RATE @

MTL

MTL

Account No.

111

IN FAVOUR OF F/CURRENCY AMOUNT

Exchange Control Form 0 - 2 should be submitted for each payment in excess of Lm 20,000

OFFICE COPY

INITIALS

AUTHORISED SIGNATURE/S

BOP/21

112

113

114

115

Annex E

Implementing Authority

Internal Checklists

For use by IA

117

Section A

Programming Checklist

For use by IA

118

PROGRAMMING PROCEDURE CHECKLIST

Programme Year:

Proposal/Project Document:

Legend:

FM Financing Memorandum IA Implementing Authority PPCD Planning & Priorities Co-ordination DirectoratePL Project Leader SPO Senior Programming Officer

Procedures YES NO N/A Has the line ministry received by electronic mail call for proposals from PPCD?

Has the line ministry’s SPO submitted to PPCD within the given time proposals by IA? (SPO is to ensure that proposals are within the parameters set out in the call for proposals).

Has the line ministry received agenda from PPCD for bilateral meetings to discuss those proposals that PPCD considered eligible for pre-accession funding?

Have line ministry and IA officials discussed proposals with PPCD at bilateral meeting?

Has the additional information/revised proposal as requested at bilateral meeting been sent to PPCD?

Has the line ministry received from PPCD agenda of first round of Programming meetings?

Have the line ministry and IA officials discussed proposals with the core programming group?

Has the line ministry been informed by PPCD which proposals have been selected for inclusion and requested to start preparing standard project documents as per template?

Has the IA prepared draft project document and submitted it to PPCD via SPO?

Has the line ministry received from PPCD agenda of second round of Programming meetings?

Have the line ministry and IA officials discussed draft project documents with core programming group?

Has the IA carried out amendments as agreed at programming meetings and submitted within fixed time amended project document to PPCD via SPO?

Has PPCD informed line ministry for IA to start implementing project (on approval of FM)?

PL _______________________ SPO _________________________ Name in Block Name in Block Signature __________________ Signature _____________________ Date ______________________ Date _________________________

For use by IA

119

Twinning Programming and Contracting Checklist

Project Title:

Twinning Number:

Legend:

DC Department of Contracts EC European Commission FM Financing Memorandum HQ Malta Team at DG Enlargement IA Implementing Authority NAO National Authorising Officer NCP National Contact Point MS Member State PPCD Planning & Priorities Co-ordination Directorate SPO Senior Programming Officer

Procedures YES NO N/A Has PPCD notified IA that HQ has launched Twinning procedure? Has IA received MS proposals from DC? Has IA nominated 3 Officials that satisfy the set criteria? Has DC approved the nominations? Has IA evaluated proposals prior to the selection meetings? Has IA participated in selection meetings with MS administrations making proposals?

Has IA selected the proposal within two weeks from date of the selection meeting and sent evaluation report to DC

Has MS submitted (electronically) first draft of Covenant to IA? Have IA and MS drawn up detailed Covenant? (PPCD and NAO provide advice, if necessary).

Have IA and MS sent (electronically) agreed draft Covenant to DC Has DC transmitted to IA/MS any comments by ECD and NAO? Have IA/MS revised draft Covenant to take account of comments? (Meetings between PPCD, NAO, IA/MS may need to be held at this stage to clarify certain issues).

Have IA and MS initialled revised draft Covenant and submitted it (electronically) to DC?

Contemporaneously, have IA and MS forwarded to PPCD an electronic copy of the draft Covenant?

Has the EC communicated its decision (approval, conditional approval or rejection) to the DC, copying it to the MS, IA and PPCD?

In cases of conditional approval, have MS and IA modified the Covenant and resubmitted it to DC?

Has DC verified compliance with the conditions and confirmed final approval to the MS and IA, copying to PPCD and NAO?

For use by IA

120

Procedures YES NO N/A Has IA submitted four originals of fully signed (not just initialled) Covenant under cover note to DC for endorsement?

Has one copy been retained by the DC, one by the NAO, one by the MS partner and one by the IA?

Has DC notified IA and MS of endorsement, copying to NAO and PPCD?

Has DC forwarded photocopy of signed Covenant to PPCD and EC?

PL _______________________ SPO _________________________ Name in Block Name in Block Signature __________________ Signature _____________________ Date ______________________ Date _________________________

For use by IA

121

TERMS OF REFERENCE PROCEDURE CHECKLIST

Twinning Light Project Title:

Programme Year:

Legend: DC Department of Contracts FwC EC

Framework Contract European Commission

IA Implementing Authority NAO National Authorising Officer MS Member State PPCD Planning & Priorities Co-ordination Directorate ToR Terms of Reference

TWINNING ‘LIGHT’

Procedures YES NO N/A Has IA finalised ToR with supervision of PPCD? Has IA received a copy of ToR as submitted by PPCD to DC? Has IA received from DC MS proposals for review? Has IA participated in evaluation process organised by DC? Has IA contacted selected MS partner and prepared first draft of Twinning ‘light’ contract?

Has IA sent draft contract to DC and NAO for approval? Has DC in agreement with NAO notified IA of approval? Has IA submitted final document (approved by both partners) together with NAO-1 Form to DC through NAO?

Has DC approved NAO-1 request? Has IA drawn up four original copies of Twinning ‘light’ contract for signature by MS and IA?

Have the four original copies of Twinning ‘light’ contract been initialled on each page and signed by IA and MS counterpart?

Has IA forwarded the four original copies of Twinning ‘light’ contract to DC?

Has DC returned two copies of TL contract? Has IA retained one copy and forwarded the other one to the MS? Has IA forwarded a photocopy of Twinning ‘light’ contract to PPCD?

PL _______________________ SPO _________________________ Name in Block Name in Block Signature __________________ Signature _____________________ Date ______________________ Date _________________________

For use by IA

122

Section B

Contracting Checklist

For use by IA

123

Contracting Checklist A For use by Implementing Authorities

SUPPLIES, SERVICES AND WORKS CONTRACTS Yes No

Has the appropriate tender dossier been downloaded?

Has the appropriate tender dossier been duly filled in?

Have the technical specifications/terms of reference been drawn up?

Have they been drawn up by persons having the technical expertise in

the subject being tendered?

Has the forecast notice been drawn up?

Has the draft tender dossier been submitted to the Department of

Contracts?

Has it been vetted?

Have the amendments (if any) been taken on board?

Has the amended tender dossier been resubmitted to the Department of

Contracts?

Has the tender dossier been approved?

Has the Procurement notice been drawn up?

Has the covering letter for the tender launch been done?

Has the NAO-01 form been included with the covering letter?

Have the covering letter and the NAO-01 been endorsed by the SPO?

Has the final draft of the tender dossier been forwarded to the

Department of Contracts?

Has the IA prepared 30 hard copies of the tender dossier?

Project Leader signature, date and stamp_____________________________________

SPO signature, date and stamp______________________________________________

Original to be retained by Project Leader and a signed copy to the SPO

For use by IA

124

Contracting Checklist B

Twinning Light Yes No

Have the terms of reference been drawn up?

Are they acceptable?

Has the covering letter for the tender launch been done?

Has the NAO-01 form been included with the covering letter?

Have the covering letter and the NAO-01 form been endorsed by the

SPO?

Has the tender been launched?

Have the received proposals been submitted for the consideration of

DG (Contracts)?

Has the IA prepared a report on the received proposals?

Has an evaluation session been held?

Has the recommendations been approved?

Has the IA started to draft the contract with the Twinning Partner?

Has the contract been endorsed?

Has the DG (Contracts) signed the Contract?

Has the NAO-01 form been included with the covering letter?

Project Leader signature, date and stamp_____________________________________

SPO signature, date and stamp______________________________________________

Original to be retained by Project Leader and a signed copy to the SPO

For use by IA

125

To be filled

by the

SPO SUPPLIES, SERVICES AND WORKS CONTRACTS CHECKLIST Programme: _______________________________________________________________

Project Details:_____________________________________________________________

File No:____________________________________________________________________ Type of Contract: ___________________________________________________________ YES NO N/A

PREPARATION OF TENDER DOSSIER AND SPECIFICATIONS 1 Was the Tender Dossier (TD) drafted? 2

Is it a supplies and works contract? Have the Full Technical Specifications been prepared?

3 Is it a service contract? Have the Terms of Reference been prepared?

4 Was this included in the TD?

5 Was it forwarded to the EU Unit?

VETTING AND APPROVAL OF TENDER DOSSIER 6 Was the original/amended TD returned by the SPO?

7 Was the TD finalised?

8 Were the four [4] original NAO Form 1 drawn up?

9 Were these signed by the PL?

10 Were these countersigned by the SPO?

11 Were the funds committed?

12 Did the DAO certify the NAO Form 1?

13 Did the NAO certify the NAO Form 1? [ie 4 signatures in all]

14 Does DC has the final TD text?

15 Did DC approve the final TD?

16 Did DC notify in writing the approval of the final TD?

17 Did DC instruct the IA to prepare 30 copies of the final TD?

PUBLICATION OF TENDER

18 Were the TD hard copies checked for any errors?

19 Were the TD hard copies checked to have:

Instructions to Tenderers

Contract Form

General Conditions of Contract

Special Conditions of Contract

For use by IA

126

Technical Specifications, Terms of Reference, Bill of Quantities

Tender Guarantee Template

Performance Guarantee Template

Advance Payment Guarantee Template (where applicable)

Financial Identification Template 20 Did DC instruct SPO to nominate the Evaluation Committee (EC)? (Chairman, Secretary +

3 Evaluators) 21 Were the CV's forwarded to DC?

22 Is there evidence that the evaluators have :

a. Competence

b. Qualifications

c. Technical knowledge on the subject

d. Track record with particular emphasis on the subject dealt with in the tender dossier 23 Were the nominations approved by the DC?

TASKS OF EVALUATION COMMITTEE

24 Was the tender opened as per TD details? 25 Was it ensured that there was no conflict of interest between EC and bidders?

26 Were evaluation sessions held?

27 Was the DC present during the evaluation sessions?

28 Was the report forwarded to the DC?

29 Was the full evaluation report compiled?

30 Did it comprise:

Opening Report

Copy of Summary of Tenders Received

Declarations of Confidentiality and Impartiality

Evaluation Report

Clarifications (if any)

Was a shortlisting report prepared for service tenders (where applicable)

31 Was it approved by the DC?

32 Were they signed by the DC, IA and the successful tenderer?

33 Did DC forward a signed original contract to the IA? Name of SPO ____________________

Signature ____________________

Date ____________________

For use by IA

127

Section C

Payment Checklist

For use by IA

128

Payment Checklist for IA -

(To be filled by Project Leaders and endorsed by Senior Programming Officers)

a. Implementing Authority: ____________________________ b. EU Pre-Accession Programme: (2000/2001/2002/2003) (delete as necessary)

c. Project Name: _____________________________________ d. Project Fiche No: ____________________________ e. Component No: ____________________________ f. Project Value: EU Funds: __________________________Euro

Malta Funds: __________________________Euro g. Contract Name __________________________ h. Contract Number __________________________ i. Contract Value __________________________ j. Contractor Name __________________________ Yes No Remarks

1. Has the invoice / Advance Payment Request been received from Contractor ?

2. Are the contractor’s particulars, including bank account details, correct ? 3. Is the amount requested correct as per contract ? 4. Is it an Advance Payment ? 5. Does the Contract require a Bank Guarantee ? 6. If yes, has it been raised ? 7. Is it an interim Payment ? 8. Is it a Final Payment ? 9. Are the required supporting documents attached ? 10. List the supporting documents and check for correctness :

________________________________ ________________________________ ________________________________ ________________________________

10. Are the supporting documents all correct ? 11. Has the Project Leader certified all documents correct following verification ?

PL signature IA stamp Date

12. Has the four original Forms NAO-02 + Annex A been raised? 13. Has the original invoice + 3 true copy been attached to the NAO-02 Forms ?

14. Has PL signed, stamped and dated the NAO-02 Form ? 15. Has the SPO verified correctness of documents ? 16. Has the SPO signed, stamped and dated all documents including NAO-02 Forms ? 17. Have the documents at 12 and 13 above been forwarded by the SPO to the

Department’s / IA’s Accounting Officer ?

______________________________________ __________________________________ Sign and Date Project Leader Sign and Date Senior Programming Officer Original checklist to be retained by Project Leader and a copy by the SPO

For use by IA

129

Payment Checklist for IA – (for use by Departmental / IA Accounting Officer)

a. Implementing Authority: ____________________________

b. EU Pre-Accession Programme: (2000/2001/2002/2003) (delete as necessary)

c. Project Name: _____________________________________

d. Project Fiche No: ____________________________

e. Component No: ____________________________

f. Project Value: EU Funds: __________________________Euro

Malta Funds: __________________________Euro

g. Contract Name __________________________

h. Contract Number __________________________

i. Contract Value __________________________

j. Contractor’s Name __________________________

Yes No Remarks

1. Is the NAO-02 form attached ?

2. Are the invoices and supporting documents attached to the NAO-02 form ? 3. Are all the documents signed, stamped and dated by the Project Leader ?

4.Are all the documents signed, stamped and dated by the Senior Programming Officer?

5. Is proposed payment out of EU Funds? 6. Is proposed payment out of Malta Funds? 7.Is it co-financing? 8. Are funds available under the appropriate expenditure Vote? 9. Has the necessary allocation been made? Accounting Officer Name: ______________________

Signature: ______________________

Date: ______________________

Annex F

Filing System at the

Department of Contracts

131

Filing Systems Department of Contracts

General Filing Procedures:

The filing system within the EU Unit is the same as that of all the Government

Departments.

On receipt of the final version of the project fiche, an ad-hoc file is opened for each

and every component under the project fiche.

The file is then passed on the Central Registry at the Department of Contracts to be

officially registered

All file movements are recorded by the registry

EU Unit officials have to ensure that all new files opened in relation to EU Pre

Accession Procurement are in yellow to distinguish such files from other files used by

the Department of Contracts.

Checklist relating to the procurement procedure to take place is attached to the inner

cover of the file.

All the correspondence which is sent and received during the preparation of the

tender dossier such as emails, letters and faxes are all printed or date stamped as

appropriate, and entered into the file with a red reference number, in a chronological

order. This system is known as “Redding”. This is done by the Registry officials.

The file should include the following documents:

• Commitment Form, duly authorized, • The final and approved tender dossier, • The procedure launching notices, • Clarifications, if any, • Request for the nomination of an Evaluation Committee, • Nomination of an Evaluation Committee including Curriculum Vitae

for each member • Approval of Evaluation Committee, • The tender opening session, • The evaluation report, including the Declarations of Impartiality and

Confidentiality signed by the Evaluation Committee members, • The signed contract, • Any other document which is considered to be important for the audit

trail. Overall Assessment With this type of filing system, one can trace the whole history of the work carried out for a particular tender. This system has proved useful in many instances, especially

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when the person who is directly in charge of the tender is not available, because anyone else who takes over in his absence, has a complete audit trail which he can rely on, and can continue the work from that point onwards without missing out on any details Files are kept by the officer in charge for the duration of the whole tender. Once finished, the file is then archived in the Department’s records. National Laws with respect to the retention of files period exceed EU requirements.

Annex G

Mail Registration &

Filing Procedures (NAO)

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MAIL REGISTRATION AND FILING PROCEDURES A Mail Registration 1. All mail received/forwarded directly by NF officials, either through the post or by

fax, should be submitted for registration to the officer in charge 2. The officer in charge (Registration) at the NF undertakes the following steps

• Date stamps correspondence received. • Records the correspondence in the mailing register, denoting subject, date,

file number and name of official who will be dealing with the correspondence. This latter issue might need some liaisoning with the NAO or his deputy.

• Distribute the mail to the official responsible to file and take necessary action.

3. Any correspondence received by the Ministry’s Central Registry will be referred

to the Officer in Charge Registration (NAO’s office) for necessary action. 4. Registers all outgoing correspondence on the appropriate form. B Filing System

The NF has adopted and operates the following filing system: 1. All correspondence of a general nature relating to EU Funding is inserted in the

Ministry of Finance files, which are opened and updated by the Central Registry of the Ministry who act on instructions and advice given by the NF. All files are named, numbered and recorded by the Central Registry. Files are kept within the Central registry located within the Ministry of Finance.

2. Files have been opened in respect of the following categories of activities:

2.1 One main file for each of the Pre-Accession Programmes and one sub-file for each project under the respective Programme

2.2 Ad Hoc files classified by subject or an activity including the following:

• PRAG Procedures • Taxation related matters • EDIS on Audit • Note of Instructions • IAID Audit • Paying Agency

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3. Files kept on a personal basis by the official responsible for the monitoring of one or more projects. These are usually ring files. Such files are not registered by the Central Registry but are maintained by the respective NF official and fall under his direct responsibility.

3.1. One file (and if necessary more) is opened for every project. File is named

and numbered. 3.2. The file ring would include documents relating to the following:

• Contracting requests (NAO 01) • Copies of signed contracts • Payment requests (NAO 02) • Payments documents • Progress, Budgeting and Procurement Form (NAO 03) • Reporting of irregularities (NAO 04A-B) • Monitoring Reports Forms (MR Form) • Other material relating directly to the implementation of the respective

project.

3.3 These files are held within the EU Paying Authority’s offices and shall be retained for five years after the closure of the relative programme.

C E-MAILS

A copy of every e-mail sent or received by NAO officials should be filed and recorded directly by the relative official and therefore should not be processed by the Officer in charge of Registry.

Date of Date of Sender Subject File No Ring File No. Action Taken By

Correspondence Registration

Correspondence In

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Date of To whom Sender Subject File / Ring File Remarks

Correspondence Addressed No.

Correspondence Out

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PROCEDURES TO RECORD EXCEPTIONS

Annex H

Procedure to Record Exceptions at the

Department of Contracts

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Procedures to Record Exceptions

1. Whenever the need arises to depart from established rules and regulations, the

relative exceptions to the established norms should be properly followed,

recorded and documented.

2. The official responsible for the relative contract should inform in writing his

superiors and fill in the relative form giving details of the exceptions and the

reason behind it including financial details.

3. The official should also record and file any correspondence with interested

parties such as IA, NAO and NAC relating to the negotiation of the exception.

4. Whenever the endorsement of approval for such exceptions is required outside

contracts the relative endorsement should be attached to the form and included

under part B.

5. The form should be signed and dated by Director General (Contracts) before

being filed in the relative file.

6. Finally the official responsible for the contract for which on exception has

been granted should take any follow-up action that is required. Such actions

would include amongst others the following;

a. Informing the relative parties about the exception (Contractors, NAO,

and NAC)

b. Ensuring where applicable the exception is included in the tender

dossier.

c. Any other action deemed necessary.

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Schedule of Exceptions / Deviations Department of Contracts

Programme:

Project Name:

EU Funds Allocated: €

Maltese Funds Allocated: €

Description of Exception Identified on: ____________________ _______________________________________________________________________________________________________________________________________________________________________________________________________________

Action Taken: Action Taken on: ________________ _______________________________________________________________________________________________________________________________________________________________________________________________________________

_______________________________________ ___________ Verifying Officer – Signature and Name in Block Date _______________________________________ ___________ SPO – Signature and Name in Block Date _______________________________________ ___________ NAO – Signature and Name in Block Date _______________________________________ ___________ DoC– Signature and Name in Block Date

Register of Exceptions / Deviations DOC Exceptions / Deviations Register

Ref. Programme Allocation Description Identified Action File No. Number EU Funds MLT Funds of Exception/ on taken on Number

Deviation

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PROCEDURES TO RECORD EXCEPTIONS / DEVIATIONS

Annex I

Procedure to Record Exceptions / Deviations

at the National Authorising Office

143

Procedures to Record Exceptions / Deviations

1. Whenever the need arises to depart from established rules, regulations or

procedures the relative exceptions / deviations to the established norms should

be properly followed, recorded and documented.

2. The official responsible for the relative contract should fill in the relative form

giving details of the exceptions and the reason behind it including financial

details.

3. The form should be signed and dated by Ass. Director and NAO. It should be

subsequently filed and recorded in the register.

4. The official should record and file any correspondence with interested parties

regarding the exceptions / deviations.

5. Finally the responsible official should take any follow-up action as required.

Such action would include amongst others the following;

a. Informing the relative parties about the exception (Contractors, NAC)

b. Ensuring where applicable whether the exception is likely to have any

spillover effect.

6. Where the exception /deviation originates from another entity (eg. Derogation

on a contract) it should also be recorded in the register and a copy of the

relative document filed in the relative file.

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Schedule of Exceptions / Deviations Programme:

Project Name:

EU Funds Allocated:

Maltese Funds Allocated:

Description of Exception Identified on: ____________________ _____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

Action Taken: Action Taken on: ________________ _____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

_______________________________________ ___________ Verifying Officer – Signature and Name in Block Date ________________________ ___________ Assistant Director – Signature Date ______________ ___________ NAO – Signature Date

Register of Exceptions / Deviations NAO Exceptions / Deviations Register

Ref. Programme Allocation Description Identified Action File No. Number EU Funds MLT Funds of Exception/ on taken on Number

Deviation

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Annex J

Standard Letter Issued by the

Contracting Department

147

CT ___________ Date _______________ Director EU Affairs Ministry________________ _______________________ _______________________ _______________________ Subject: Evaluation Committee Composition Reference: With reference to the subject in caption please note that the Evaluation Committee as proposed hereunder: Chairperson: Secretary: Voting Members: is hereby being approved. Kindly note that it is imperative for the Evaluation Committee to be present for the tender opening session which will be held on ___________ at ______am at this Department. ---------------------- E.Zarb Director General (Contracts)

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DIPARTIMENT TAL-KUNTRATTI Notre Dame Ravelin

Floriana – MALTA

DEPARTMENT OF CONTRACTS Notre Dame Ravelin

Floriana – MALTA

Telephone: 2122 0212, 2122 0313, 2122 3206 Fax: 2124 7681

Our Ref: CT Your Ref: _______________ Date: Director EU Affairs Subject : Reference: You are kindly requested to nominate a Chairman, a Secretary and three officials to sit on the Evaluation Committee in connection with the subject mentioned above. The Department of Contracts would like to bring to your attention the following criteria that should be taken into consideration by your Implementing Authority to assess the nomination for members to sit on the Evaluation Committee for the above mentioned tender process:

a. Competence b. Qualifications c. Technical knowledge on the subject d. Track record with particular emphasis on the subject dealt with in the tender

dossier e. Impartiality f. Conflict of interest

You are also reminded to try and avoid, where and when possible, hierarchical positions within the Selection Committee and ensure that all members will be available for the opening and evaluation sessions. Kindly be reminded that the Director General (Contracts) has the authority, and reserves the right, to disqualify any or all the Committee if the above, or any one of the above, criteria is/are not respected. E Zarb Director General (Contracts) (signed)

Annex K

Standard Forms

(NAO)

150

SIDE LETTER No. [….]

TO TWINNING/TWINNING LIGHT CONTRACT

Reallocation within one budget section1 Reallocation between budget sections up to 10% of total budget Modification of an indicative clause [Tick as appropriate]

ARTICLE 1 Objective

The Member State and Maltese project leaders hereby notify the EC Delegation and the CFCU of a modification to the above referenced covenant. The purpose of the modification is to: This modification is necessary because:

ARTICLE 2 Modification

Article [….] – Breakdown of Actions and Costs - of the original covenant is amended as described in Annex 1.

1 Tick the appropriate box(es)

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ARTICLE 3 Cumulative modifications notified

The aggregate amount of reallocations between budget sections notified, by applying the flexibility rule to date is [€…..], which constitutes [….] % of the total budget. The modifications are spread as follows2:

Side letter no.

Amount of reallocation3

Date of entry into effect

% of total budget

1 2 3 4 5 6 7 8 9 10

TOTAL

ARTICLE 4 Confirmation of validity

All of the parts and dispositions of the initial covenant and the approved side letters or amendments, which are not modified here, remain valid. This modification takes effect on the date of arrival of the present Side Letter at the EC Delegation and the CFCU, unless any of its parts is in conflict with the twinning rules.

ARTICLE 5 Annexes

Annex 1: Comparative table of the relevant sections of the budget before and after modification. Name: Name: MS Project Leader Maltese Project Leader

Date: Date:

2 The table should detail ALL previous side letters plus the current one. 3 The amount of reallocation is the value that was transferred from one budget section to another. Therefore the amount of reallocations within one budget section and side letters on non-budgetary changes equals “0”

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Audit Certificate To be completed on the auditor's headed paper

[Date of audit certificate] To [address of Contracting Authority] Reference number of Twinning Project : … Name and address of Member State administrative partner/ Project Leader : … Period covered by the audit certificate: … Dear Sir/Madam, We have been appointed by the Member State Project leader of the Twinning Contract referred to above in order to certify the accounts for this twinning project in accordance with Section 7.2 of the Twinning manual. We confirm that our audit office is part of the … administration or Ministry. OR We confirm that we belong to an internationally-recognised supervisory body for statutory auditing. We have conducted out our audit in accordance with international auditing standards and the provisions of the Contract. We hereby certify that the twinning project's accounts (income and expenditure) are faithful, reliable and supported by the appropriate supporting documents and that eligible expenditure totalling (indicated in the annex to the certificate) has been in incurred in accordance with the provisions of the Contract. < Attach to the audit certificate a schedule based on the Budget for the twinning project, setting out for each item the total amount certified at the date of the certificate. > Payment of the following costs was requested but their amount is not certified in this certificate 1 :

Description Amount < EUR > Reason for non certification [Name and signature] 1 This paragraph will be inserted, where applicable.

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SUPPLY CONTRACT

Provisional Acceptance Certificate

Ministry/Department _________________________ Contract/Lot Ref: ______ Name of Implementing Authority _______________________________________ EU Programme (i.e.2000, 2001, 2002, 2003)_________________________________ Name of Project: ______________________________________________________ Beneficiary: __________________________________________________________ Statement by Project Leader (Description of Services rendered): ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ Supply Contract Acceptance Declaration This is to certify that goods in respect of Contract [Ref] and Lot [NO] awarded to [Name of Contractor] on [Date] has been delivered according

to contract, to the [Name of Implementing Authority] on [Date]. ________________ _______________________ Project Leader of IA Senior Programming Officer (Name in Block) (Name in Block) _______________ _______________ Signature Signature Date: ____________ Date: ____________ Stamp Stamp

154

SUPPLY CONTRACT

Final Acceptance Certificate

Ministry/Department _________________________ Contract/Lot Ref: ______ Name of Implementing Authority _______________________________________ EU Programme (i.e.2000, 2001, 2002, 2003)_________________________________ Name of Project: ______________________________________________________ Beneficiary: __________________________________________________________ Statement by Project Leader (Description of Services rendered): ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ Supply Contract Acceptance Declaration This is to certify that goods in respect of Lot [No] awarded to [Name of Contractor] dated [Date] have been delivered according to contract, to the

[Implementing Authority]. Since no problems were encountered during

the [No of months] warranty period, which expired on the [Date] we are

herewith confirming our final acceptance of the equipment and

[authorising the payment of the remaining balance [%] or release of the warranty guarantee] ________________ _______________________ Project Leader of IA Senior Programming Officer (Name in Block) (Name in Block) _______________ _______________ Signature Signature Date: ____________ Date: ____________ Stamp Stamp

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SERVICE CONTRACT

User Acceptance Certificate Ministry/Department _________________________ Contract No: ________ Name of Implementing Authority _______________________________________ EU Programme (i.e.2000, 2001, 2002, 2003)________________________________ Name of Project: ______________________________________________________ Beneficiary: __________________________________________________________ Statement by Project Leader (Description of Services rendered): ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ Service Contract Acceptance Declaration This is to certify that services in respect of Contract [Ref] awarded to

[Name of Contractor] on [Date] has been delivered according to contract,

to the [Name of Implementing Authority] on [Date]. ________________ _______________________ Project Leader of IA Senior Programming Officer (Name in Block) (Name in Block) _______________ _______________ Signature Signature Date: ____________ Date: ____________ Stamp Stamp