BOE núm. 96 de 21.04.08
This is an unofficial translation.
Please note that the only legally binding text is that published in the Spanish "Official State Gazette".
Section 16 of Order AEC/442/2007, of 23 January (Official Spanish Gazette, 1 March 2007), establishing the regulatory provisions for the award of subsidies, in a permanent, open tender for cooperation and development assistance activities, authorizes the Governing Body of the Spanish Agency for International Development Cooperation (henceforth, AECID) to issue all necessary instructions for the implementation of the aforesaid Regulatory Order. AECID having been constituted, these competences are to be understood as referring to the Presidency of AECID, in accordance with its statutes, approved by Royal Decree 1403/2007 of 26 October.
In consequence, and subject to the favourable report of the State Legal Advisory Service at the Ministry of Foreign Affairs and Cooperation, this AECID has resolved as follows:
One. To approve the regulations on subsidies, in permanent, open tender, for cooperation and development assistance activities, the text of which is given below.
Two. The regulations published herein shall be applicable to subsidies offered in permanent, open tender made as of the entry into force of the present resolution.
Madrid, 31 March 2008. The President of the Spanish Agency for International Development Cooperation, Leire Pajín, p.p. the General Secretary of the Spanish Agency for International Development Cooperation, Juan Pablo de Laiglesia y González de Peredo.
REGULATIONS ON DOCUMENTARY SUPPORT FOR SUBSIDIES OFFERED IN PERMANENT, OPEN TENDER FOR COOPERATION AND DEVELOPMENT ASSISTANCE ACTIVITIES
I. General Regulations
I.1. Regulatory Legislation
The general regulations, which constitute the basic guidelines and which contain the rules to be followed by those organizations wishing to benefit from the subsidies offered in permanent, open tender for cooperation and development assistance activities, concerning the financial and technical documentary support for the performance of cooperation projects subsidized by the AECID, are contained in the following legislation:
- General Subsidies Act 38/2003, of 17 November (Spanish Official Gazette, 18 November).
- Royal Decree 887/2006, of 21 July, approving the Regulation implementing the General Subsidies Act 38/2003, of 17 November.
- Order AEC/442/2007, of 23 January, establishing the regulatory procedure for awarding subsidies in permanent, open tender for cooperation and development assistance activities.
- Act 30/1992, of 26 November, on the Legal Regime of Public Administrations and on Common Administrative Procedure (henceforth Act 30/1992).
1.2. Deadlines for Implementation and Finalization
Project start and finish dates shall be those established in the Resolution by which the subsidy is awarded, or renewed. The maximum duration of the implementation period shall be eighteen months.
In general, the subsidy will be provided in a single payment, in advance, with no surety being required.
As established under Act AEC/442/2007, the beneficiaries of a subsidy must deposit the amount received – unless it is to be used immediately upon receipt – in a bank account opened exclusively for such funds, and given the name of the project title or activity that is subsidized. All movements within this account must be documented, by means of bank statements corresponding to the implementation period, and these shall form part of the documentary support for the subsidy.
When, due to the conditions affecting the activity to be carried out, it is necessary to transfer funds from this account to another, the latter should also be opened exclusively for these funds, under the conditions described in the previous paragraph.
In the case of subsidies exceeding 350,000 euros, Order AEC/442/2007 requires an external final evaluation to be made (evaluation report), within six to nine months from the date of finalization of the project. This evaluation shall assess the degree of fulfilment of the specific aim of the action taken, and the results achieved. This evaluation shall be published within two months of its being made.
The beneficiary organization shall present a draft document of technical specifications (terms of reference) for final evaluation by the AECID. In drawing up these terms of reference, due attention shall be paid at all times to the Evaluation Methodology published by Spanish Cooperation (http://www.maec.es/es/MenuPpal/Cooperacion+Internacional/Evaluacion/).
The latter includes the following evaluation criteria: relevance, effectiveness, efficiency, impact and viability. If no express objection is made by the AECID within one month of receipt of the terms of reference, the beneficiary shall present a short-list of three proposals for evaluation by the same number of assessors or independent evaluation bodies, together with the (documented) proposal for subsidy. If, on the other hand, an objection is made to the terms of reference, these must be renegotiated in accordance with AECID criteria, then proceeding in accordance with the stipulations in the above paragraph.
If no express objection is made by the AECID to the proposal for evaluation within ten days of its receipt, the evaluation may begin.
1.5. Modification of the Resolution
The only modifications considered to be substantial shall be those affecting the goals, results, beneficiary population, territorial location or local partner or counterpart. In order to effect such modifications, as well as extend by more than three months the period allowed for implementation, or to proceed to a second extension of said period, the prior approval of AECID must be obtained, by means of an application, stating the circumstances justifying the request, to the Management Body, in a period not exceeding one month from the appearance of said circumstances.
The resolution of applications for substantial modification, or for an extension of the period allowed for implementation of the subsidy, shall be notified within a maximum of 45 calendar days from the presentation date of the application for modification.
Any other incidents or modifications that may arise shall be indicated in the corresponding Final Reports.
Extensions to the implementation period less than or equal to three months shall be communicated to the subsidizing body prior to the expiry of the original implementation period.
1.6. Financial Accruals
Interests and other financial accruals generated by the funds provided shall be accounted for by means of official bank documentation and shall be dedicated exclusively to meeting direct expenses related to the activity being subsidised, and within the implementation period established for said activity. In its Final Report, the beneficiary shall inform AECID of the concepts associated with such accruals.
Order AEC/442/2007 does not address the issue of subcontracting, and therefore the beneficiary may not contract with third parties the total or partial implementation of the activity that constitutes the object of the subsidy provided.
This concept shall not include the payment of those expenses necessarily incurred by the beneficiary in order to implement, on its own behalf, the activity that is the object of the subsidy.
1.8. Local Partner or Counterpart
A local partner or counterpart is defined as the legal person, created or recognized in accordance with the legislation of the country in which the action is to be carried out, that maintains a relationship of collaboration with the beneficiary, and that undertakes in whole or in part the direct implementation of the actions that are the object of the subsidy. A counterpart may be a group of persons who do not have legal personality.
The total or partial implementation of subsidy by local partners or foreign counterparts shall not be considered a case of subcontracting, with respect to Article 29 of the General Subsidies Act 38/2003, of 17 November. Said counterparts must be adequately identified in the project or proposal for action.
To all effects and purposes, the body receiving the subsidy shall be responsible for its implementation and for providing documentary proof of such before the awarding body, irrespective of whether said implementation has been effected in whole or in part by local partners or foreign counterparts.
1.9. Advance Provision of Funds for Recoverable Taxes
The payment of recoverable taxes shall be enabled by an advance provision drawn on the subsidy awarded, until the tax payment is effectively recovered. When the documentary proof for the subsidy to be awarded is presented, this shall be accompanied, as the case may be, by a certificate from the local tax authorities accrediting the fact that no such tax recovery has yet been made. Should it be manifestly impossible to obtain such a certificate, an official statement shall be provided, to the effect that said taxes have not been recovered.
If the recovery of said taxes takes place during the period of implementation of the project or activity, the amounts recovered shall be applied to meeting the expenses related to the activity in question, within its implementation period, for which no prior authorization shall be required of the subsidy-awarding body, unless this application involves changes or modifications affecting the goals, results, territorial location, local partner or beneficiary population.
Should the tax be recovered during the four years following the conclusion of the period established for the implementation of the activity, the beneficiary body may propose its application to activities associated with or complementary to the subsidized action. The awarding body will issue a resolution authorizing or rejecting the application of the sum in question, stating, in the former case, the period established for implementation and for providing documentary proof of said application. Should the resolution be negative, the advance funds provided shall be returned.
The obligation to return to the fund-awarding Administration the amounts corresponding to taxes recovered shall persist for a period of four years from the presentation of the documentary proof; following this period, if the taxes paid have still not been recovered, renewed certification from the local tax authorities should be provided, accrediting the fact that said recovery has yet to be effected. Should it be manifestly impossible to obtain said certificate, an official statement to this effect should be made.
II. Documentary Support for Subsidies: Final Report
II.1. Deadline and Form of Documentary Support
In accordance with section XII of Order AEC/442/2007, beneficiaries should present, within a period of four months starting from the end of the implementation period, a final report comprising two parts:
- Economic documentary support shall be provided using the system of accounting records, or of accounting records providing an auditing report in the terms established in section II.4 of this resolution. In both cases, proof of certain expenses may be made using the modules system described in section II.4.3.
- Technical documentary support shall specify, with maximum detail, the objectives reached, the results obtained, and the activities carried out, regarding which relevant data shall be provided, along with objective verification sources. This shall be done in accordance with the stipulations of section II.3 of this resolution.
When the presentation of an external evaluation is compulsory, in accordance with the stipulations of section 1.4 of this resolution, the period of time for providing this documentation shall be 11 months.
II.2. Place to Present Documentary Support
Economic and technical documentary support should be presented to the Managing Body of the subsidy granted: Office of Cooperation with Latin America and the Caribbean; Cooperation Office for Africa, Asia, and Eastern Europe; Office of Cultural and Scientific Relations; and Technical Office, all at the central offices of the AECID (Avda. de los Reyes Católicos, 4, Madrid 28040, Spain); or at the AECID Technical Cooperation Office in the country where the project was carried out.
II.3. Technical Documentary Support
Technical documentary support shall provide data and objective verification sources regarding the objectives reached, the results obtained, and the activities carried out. It shall also include a detailed description of the process of transferring and managing the interventions after their finalization, as well as an analysis of their future sustainability.
The basic documents to be provided shall be the following:
- Technical report, as specified in Annexe IX of the present resolution.
- Certification of the legal officer of the beneficiary entity on the scope of results and objectives, as well as the participation of the final beneficiaries in the aforesaid.
- Copy of the external evaluation referred to in section 1.4 of this resolution.
- Graphic and/or print materials connected to the activities and/or interventions, in which the participation of the AECID is clearly reflected through the incorporation of the official AECID or Spanish Cooperation logos, according to the stipulations in each public announcement.
Moreover, they should provide, according to the nature of the activities to be carried out:
- Flyers, maps, schematics of activities, building projects, educational materials created, etc.
- Letters and testimonials from official organizations, public or private associations, beneficiaries, etc.
- Lists of participants in activities
- Studies carried out, technical and/or professional reports
- Real estate documents
- Collaboration agreements, commitments from official or private institutions regarding the transfer of the project, etc.
- Whatever sources of verification may be considered opportune, and to provide data and proof regarding the carrying out of the actions for which there was a commitment, the attainment of results, and the scope of the objectives proposed.
II.4. Economic Documentary Support
II.4.1. General Requisites
1. Funds from Outside the AECID
Besides the activities financed with the funds received through the AECID, the economic proof provided should attest to the application to the subsidized activities of other funds applied to the intervention, whether the beneficiary’s own or proceeding from other subsidies or resources. The documentary support of these funds from outside the AECID shall include the list of documents providing proof of expenses (Annexe I of the present resolution). When the beneficiary entity is required to do so by AECID, the General Comptroller of the State Administration (IGAE), or the Accounts Tribunal, it should present the original documents, invoices, receipts, etc., in order to confirm their correct use towards the objective of the subsidy given. Certifications of application of the funds to the activities planned, issued by the other administrations that may have financed the intervention, shall be recognized as valid by the AECID.
The beneficiary shall ask for at least three bids from three different providers, in the following cases:
a) Contracting works for more than 30,000 euros.
b) Contracting supplies, services, or technical assistance for more than 12,000 euros.
The beneficiary shall present the bids received, and a report justifying which bid was selected in the event that it is not the least expensive, along with the request for a subsidy, or the documentary support of the same. If the bid involves a lower cost than the one budgeted, the difference should be invested in the project, and this should be mentioned in the economic report.
3. Relationship of Real Estate and Equipment
In accordance with Article 31.4 of Law 38/2003 of 17 November, and sub-sections i) and j) of section XIII of Order AEC/442/2007, both the real estate constructed and the vehicles and other equipment acquired using the AECID subsidy should remain formally related to the purposes of the action carried out, and once the aforesaid is over, or it suddenly becomes clearly impossible to carry out the intervention, they should be transferred to the beneficiaries of the project or to public institutes able to guarantee the continuity or permanency of the intervention, so that neither the beneficiary entity nor local partners may freely dispose of them, when the latter are not the same as the direct beneficiaries.
The effective transfer shall be made preferably to public entities, and documentary support should be provided. In the event that public entities are not in a position to assume this responsibility, the beneficiary entity should present a detailed alternative proposal for AECID approval.
Together with the Final Report, documentary support of the transfer shall be provided, along with the commitment of the entity to assume the property being transferred, in accordance with the transfer/assignment document (Annexe VI of the present resolution), for the following periods: in real estate, the assignment period shall be 20 years; for vehicles and other equipment that cannot be included in a public register, it shall be 3 years.
For registrable property, this circumstance shall be included in the written public record, as well as the amount of the subsidy conceded. A document (certified copy) shall be provided that proves its registration in the legal property record under the name of the institution or beneficiaries who are taking possession, or documentation that proves that documentation for such registration is being processed, according to the laws of the country of implementation (in the latter case, a written commitment shall be included from the beneficiary to send the AECID a copy of the definitive property document, which shall be included in the relevant file, once it is obtained).
4. Document Requirements
Documents which are required for presentation together with the final report must be originals or duly certified photocopies. A duly certified photocopy is understood to be one that has been compared with the original and certified by any public entity in Spain or the country where the project is being carried out, by a duly accredited notary in the country of implementation or by an official representative of Spain in said country.
When the beneficiary is a not-for-profit organization from Spain or with legal competence to operate in Spain, the required documentation may be provisionally substituted by simple copies attested to by the head of the entity, or a person designated to this effect, in which the correspondence between said copies and the documents is responsibly declared. Moreover, a responsible declaration shall be included stating the place where said originals are on file, as well as the commitment to present said originals or their duly certified copies whenever they be required, in part or in toto, by the acting administration.
Before copies are made, all original documentary support of expenses (invoices, receipts, etc.) must be certified with a stamp featuring the following: the annual public announcement of the subsidy for which proof is being provided, the code and abbreviated title of the development cooperation project, and a reference to AECID financing saying “Financed by AECID”. In the case of documents providing proof of expenses imputable to more than one financer, the aforesaid attestation should be mentioned, as well as indicating the percentage of financing being assigned to each one.
If this is impossible for expenses documents, due to their size, they shall be accompanied by a list of the same in which the aforesaid attestation is included.
Specifically, further documents that should be duly stamped include the originals of expenses documents that may be requested by other public organizations, such as proof of Social Security payments, or models 110 and 190, published by the Spanish tax authorities, accrediting payment of the corresponding retentions and payments on account of personal income tax, or 115 and 180 accrediting payment of the corresponding retention in respect of urban real estate rentals.
5 Proof of Expenses
5.1. Proof of expenses shall be provided with invoices and other similar documents serving as an equivalent in legal commercial transactions, or having administrative effect. The latter includes the certification of modules described below. Accreditation may also be provided with computerized invoices, as long as they meet the requirements for acceptance in the area of taxation. In those cases indicated in section 5.3, the use of receipts rather than invoices is permitted.
5.2. Invoices must meet the following requirements:
- Invoice number.
- Identification of the issuing party (full name and/or commercial name, tax ID number, and address).
- Identification of the recipient, which must be the implementing subsidized entity.
- Name of the project to which the expense is being assigned.
- Detailed description, unit price, and total price. The corresponding VAT should be included; when the tax is included in the price, then “VAT included” should be indicated.
- Date and place of issue.
- Date and manner of payment of the invoice. Payment of expenses should be accredited in one of the following ways. If payment is in cash, the invoice should be signed or stamped by the party issuing the receipt, with a stamp that provides proof of this payment (stating “paid”, “cancelled”, or “cash”). If payment is through bank transfer, than the bank document attesting to the same should be provided. If payment is by cheque, a photocopy of the cheque shall be included, along with the bank’s proof of payment of the same.
5.3. Use of sales receipts. In the case of expenses incurred in countries receiving official development assistance as part of international cooperation actions, sales receipts may also be used as documentary support of expenses, if they are in accordance with the model attached as Annexe VII. This receipt should be signed by the person providing the service (salesperson, driver, etc.).
Such use of receipts should, as a general criterion, be previously authorized by the granting body, although it may also be validated a posteriori by the same, as long as it considers that said authorization would have been given had it been requested in advance.
Moreover, sales receipts may be used instead of invoices, whatever their amount or their proportion of the subsidy granted, and without need for prior authorization, as long as the documentary support provided includes accreditation that the recipients of said payments are not obliged to issue invoices in the country where the expense was incurred. Such accreditation should be provided by a competent public body.
5.4. When documentary support is in a language other than Spanish, English, French, Italian, or Portuguese, it must be duly translated, including the date, amount, type of expense, recipient, and provider.
5.5. Should exceptional situations arise—natural disasters, armed conflict, humanitarian crises—that make it difficult or even impossible to have access to adequate documentary support of expenses, other forms of such proof may be established and accepted, such as declarations by witnesses, evidence of results or activities carried out, a formal declaration by providers in informal market settings, etc. These forms of proof should be attested to by one of the bodies of Spanish representation in the country of implementation, Technical Cooperation Offices, Embassies, or Consulates, or in their absence, by the Embassy of a European Union country representing Spain there. In the case of a humanitarian operation directed by the United Nations, such certification or attestation may be issued by the body within the United Nations system that is coordinating work on the ground.
6 Subsidizable Expenses: Documentary Support
Subsidizable expenses are all those expenses necessary to carry out the intervention and implementation of the budgeted or authorized activities that meet the regulations on documentary support and control contained in Act 38/2003 of 17 November and Order AEC/442/2007, and finance the implementation of these objectives. They should be described and budgeted in the request for a subsidy, or in budgetary modifications approved by AECID.
A. Direct Costs
Those costs directly linked to implementation, financing achievement of the goals, and carrying out the planned activities.
A.I. Direct Running Costs
Running costs are those involving personnel, services, rentals, the acquisition of fungible goods, those with a duration foreseeably less than one budget year, those that are not inventoriable, or repeated expenses.
A.I.1 Identification prior to the subsidy application. Those costs derived from on-the-ground identification of the intervention. They may not have a date prior to that specified in the public announcement of the subsidy for the beginning of activities.
A.I.2. External evaluation (only for AECID subsidies exceeding 350,000 euros). In the case of subsidies exceeding 350,000 euros, an external evaluation shall be requested to certify the degree of fulfilment of conditions and the impact made by the intervention. Together with the Evaluation Report (which should analyze the effectiveness, efficiency, impact, sustainability, and visibility of the project), the invoice issued by the external company making said evaluation, included in the Economic Report, should be presented.
A.I.3. Auditing. This expense will be admitted as subsidizable when the documentary support is provided with the documented accounts, including the auditor’s report in accordance with section II.4.3. of these regulations. The invoice should be dated within the period for providing documentary support.
A.I.4 Other technical services (e.g., technical assistance, capacity-building, training, dissemination). Those costs required by the project for carrying out capacity-building, seminars, reports, publications, management control, or other needs, addressed in the request approved by AECID, which do not involve an employment relationship and cannot be included under other headings.
Documentary support shall be provided with the corresponding invoice. Sales receipts shall not be accepted for activities carried out in Spain.
For technical and professional services priced at over 12,000 euros, a minimum of three offers should be requested, with documentary support of the same being expressly presented in a selection report when the most advantageous economic proposal is not chosen.
In the event that the subsidy’s beneficiary entity uses volunteer workers from its organization who, in accordance with Article 3.1 of Volunteer Workers Act 6/1996 of 15 January, receive no economic compensation, it may, however, include under this item those expenses stemming from accident and illness and civil liability insurance polices taken out on behalf of volunteers participating directly in subsidized projects, as well as any other expenses that are included in the subsidy request approved by AECID, which they could incur and which are directly related to the intervention. The beneficiary entity should present a certified list of the voluntary personnel participating in its subsidized interventions, specifying the costs referred to in Volunteer Workers Act 6/1996.
All expenses necessary for renting land or real estate, cars and machinery necessary for the implementation of the project shall be included. Documentary support to be presented should include the contract and invoices or receipts of payment. AECID does not take responsibility for payment of guarantees or compensation.
A.I.6. Non-inventoriable materials and supplies (expenses for materials consumable in a period of less than a year: office supplies, petrol, water, electricity, telephone and internet connections, etc.).
This item shall include all expenses for repairs and maintenance of cars and machinery, miscellaneous property, transport elements, computer and office supplies, training materials, books, and other supplies linked directly to achieving the objectives of the project (these supplies include petrol). In principle, documentary support for all expenses from this budgetary item should be provided with invoices, according to the stipulations in section 5.1. of this Resolution. If the project is carried out in a country or area where it is especially difficult to obtain a formal invoice, then a sales receipt may be used.
A.I.7. Travel, Accommodation and Per Diem Allowances
This item shall include all those expenses related to travel, accommodation, and per diem allowances of personnel attached to the projects and of the technicians and final beneficiaries directly related to the planned actions.
These include expenses for fuel, insurance and maintenance of vehicles that are specifically identified in the intervention and attached to it.
Fuel costs for the vehicles should be set forth in a travel log for each vehicle, listing consumption with dates and kilometrage for each vehicle, as well as providing the invoices for these expenses. These logs should be signed by the driver or user, and have the signed authorization of the person who controls such expense for the beneficiary entity or counterparts.
The expenses lists presented in the Final Report should include the item of Petrol, along with identification of the vehicle involved.
The travel logs shall be filed along with the rest of the original documentary support.
1. Payment of per diems and individualized travel expenses shall be applied in the case of travel by expatriate, technical, or locally hired personnel, for specific, short-term tasks (maximum 15 days) or occasional activities.
Documentary support shall be provided in accordance with the specific model for settling per diems and transportation expenses (Annexe VIII) with a maximum total per diem limit of 100 euros/day (room and board).
The sum of lodging and per diem expenses (total per day) is considered the maximum amount that may be claimed, regardless of what the invoices (if any) may indicate.
Documentary support of trips made with a rented vehicle shall be provided with the invoice from the rental agent, along with those for petrol purchases, and their cost shall be included on the per diem claim under “mode of transport”, specifying the number of kilometres thus travelled.
Trips in one’s own vehicle, or one assigned to the project, may be calculated using the kilometrage (in accordance with the maximum per-kilometre cost stated in Annexe VIII of the present Resolution), including this on the per diem claim form.
Per diem claim forms shall be signed by the user, and have the authorization of the person responsible for controlling these expenses, authorized by the beneficiary entity, or counterparts.
The use of individual per diem claim forms does not mean an exemption from requests for original invoices for tickets or other documentary support of travel, whether by aeroplane, train, bus, or taxi, or from travel agencies, etc., which should be filed along with other documentary support of expenses and meet the same requirements.
Repayment for kilometrage involving private vehicles does not require the presentation of invoices, other than the per diem claim form. Air travel will only be covered by the subsidy if the tickets are for economy class.
2. The travel, accommodation, and per diem costs other than those described in the previous section, shall be calculated according to their actual costs, with the lists of documentary support of payments made for transport, meals, lodging, etc. in the terms set out in Section II.4.1.5. Attached to the Final Report, there will be a summary—by trip or activity—with the sum of expenses, broken down according to three concepts (transport, lodging, and per diem costs), which will specify the following: the number of persons included, number of days, dates, and unit cost per day and person for lodging and per diem expenses, as well as the kilometres travelled (if petrol costs for the vehicles are included) and description of the mode of transport used. It shall include a duly signed list of all the beneficiaries. This summary shall be signed and authorized by the person responsible for managing these expenses authorized by the beneficiary entity or counterparts.
A.I.8 Staff.- This item shall include expenses deriving from the hiring and the provision of personal services whether on a permanent or a temporary basis. Expenses originating from membership of boards of trustees or of directors of corporate bodies shall not be included nor other expenses specifically provided for in other items (workforce). Wages and salaries, social insurance contributions to be paid by the organisation and other insurance policies underwritten in favour of staff members or of their first-degree relatives are included. The latter, if not obligatory under the applicable Labour Law, must appear in the work contract signed by the organisation and be included in the budget of the subsidy request. The inclusion thereof may be total or partial in line with the assignment made to the specific action involved. Partial inclusion must be stated on the original documentary proof, together with the note.
Payments in kind, as well as bonuses, must be duly authorised and be evaluated in detail. Penalisations or compensations for breach of contract attributable to the beneficiary of the subsidy or his partners or counterparties are not included. This is also applicable to surcharges for non-payment or late payment of withheld taxes or social security contributions.
A.I.8.1 Local staff.- For the purposes aforesaid, this item includes staff hired locally in the country where the project is implemented and where the services are rendered, pursuant to the applicable labour regime, provided the functions and tasks of such staff are directly related to the implementation.
A.I.8.2. Expatriate staff.- This category is defined as including members of staff of the organisation benefiting from the Spanish subsidy subject to Spanish Law but rendering their services in the country of implementation and whose tasks are directly linked to the implementation.
A.I.8.3 Headquarters staff.- This category is defined as including members of staff of the organisation benefiting from the subsidy, subject to Spanish legislation and rendering their services in Spain, regardless of travel to the country of implementation, whether occasional or regular. Inclusion may be total or partial as a function of their involvement in the project. Staff costs shall be calculated on a per hour basis as per contract (pay slip).
Proof of staff expenses:
In the case of projects during which courses are taught and members of the Headquarters staff are involved, the cost must be evidenced by means of payslips and if it is considered that the course falls outside their ordinary contractual obligations a pro-forma invoice shall be submitted. Till receipts in the case of Headquarters staff expenses shall not be admissible.
In any case, the relevant employment contract, pursuant to the legislation regulating it, shall be submitted. The contracts shall specify the tasks to be performed, the type of contract, professional category and the salary. If a part-time contract is involved, a table with the gross monthly salary, employer’s social security contributions per month, cost per hour, hours devoted to the project and total amount ascribed to the month, shall be provided, supported by the relevant monthly payslip.
In the Final Report, a list of staff members who have taken part in the project, specifying the posts held and the tasks performed shall be included.
As evidence of the expenses involved, the following shall be submitted: payslip, professional invoice (if applicable), social security payment forms and insurance policy premium receipts.
To evidence payment, the payslip signed by the employee or a transfer order signed and sealed by a bank or a copy of the cheque and relevant charge to the account shall be submitted.
A.I.9 Financial expenses.- Fees of Notaries Public and Registrars essential to carry out the implementation shall be included. Bank charges generated on account of the project shall be included, except for late payment interest, bank charges deriving from bad management or non-compliance. Bank charges derived from bank transfers of funds to the country(ies) of implementation of the project shall be included.
A bank statement reflecting the charges made to the account shall be submitted in order to account for such expenses. These charges shall be included in the list of invoices and be numbered. In the case of notarial and registration fees, the relevant invoice shall be submitted.
A.I.10.- Awareness-raising in Spain linked to the project.- Expenses referring to awareness-raising tasks related to the project shall be evidenced with the relevant invoices of all the expenses incurred in order to carry out such activities.
A.II.- Direct Investment Costs.- These are defined as expenditure in infrastructure or in the purchase of inventoriable goods.
A.II:1 Purchases of land and/or real estate.- All expenses necessary to purchase land or real estate and to record the purchase in the local property registers shall be included, i.e.: taxes, fees, notarial expenses, legal licences, etc.
The purchase agreement, with the relevant payment receipts, shall be attached to the explanatory account. Written evidence, pursuant to the laws of the relevant country, shall be attached specifying the type of ownership and title to the property, incorporating the following limitative clauses:
- Obligation for twenty years to devote the property to the purpose for which the subsidy was granted;
- Obligation to request authorisation from the AECID to carry out any act of disposal of or encumbrance on the property purchased;
- Certificate attesting its recording at the Property Register of the country where the Project is carried out;
- Certificate of the purchaser confirming reception of the property conveyed and conformity therewith.
A.II.2 Construction and/or refurbishment of real estate (materials and labour for the building, building contractors, etc.). This item shall include all expenses directly linked to the building work and the refurbishment foreseen in the implementation (i.e.: labour and travelling costs of workers if applicable, construction materials and their transport, waste removal, compulsory technical reports, licenses, fees, compulsory premiums, work management, petrol if appropriate, etc.).
This item includes both start-up expenses and refurbishment work (involving extensions, modernisation, adaptation, adaptation and reinforcement of an already existing property), or major repair works (those directed at repairing damage done to a property by accident or fortuitous causes affecting the existing fabric in a fundamental way). Under no circumstances may costs incurred to refurbish or repair the expatriate’s dwelling or those carried out at the premises or headquarters of the beneficiary or the local counterparty be included.
A.II.3 Other infrastructure (drilling of wells and setting up of irrigation systems, bridges, roads, etc. that are not real estate properties).- This item shall include the same expenses as item A.II.2 associated with infrastructure expenses.
A.II.4 Inventoriable equipment and materials (expenditure to purchase computers, printers, office furniture, technical equipment and machinery, vehicles, etc. with a life exceeding one year). This item shall include all those purchases of goods with a useful life exceeding one year that are necessary in order to attain the project’s objectives, i.e.: vehicles, equipment, office furniture, hardware and software. This item shall include expenses deriving from the delivery, installation and start up of the equipment.
A.II.5 Work and technical studies inherent to the investment (construction or refurbishment projects by Architects or Engineers, etc.).- This item shall include all the expenses corresponding to the prior studies to implement the investment, drawing up of plans, technical assistance, Architect’s or Engineer’s fees, etc.
As written evidence of the expense incurred the invoice of the professionals or the firm entrusted with the study shall be submitted.
B. Functioning costs.- These are the proportional part of the beneficiary institution’s general administrative expenses (electricity, telephone, clerical staff, lease payments, etc.), in which the beneficiary incurs in order to manage the project. They may be subsidised up to the limit established in the tender notice.
B.I. Applicant’s indirect expenses: A statement signed by the organisation’s legal representative attesting the percentage and the amount attributed to this type of expense shall be submitted.
B.II. Local partner’s or counterparty’s indirect expenses: A statement signed by the organisation’s legal representative attesting the percentage and the amount attributed to this type of expense shall be submitted.
II.4.2 Explanatory Account: Basic documents.
The account shall comprise:
- List of documentary evidence as per Annexe I of the present Resolution. This list shall be submitted in Excel format;
- Invoices or documents of equivalent legal value in business or vis-à-vis the public administrations. Expenses may also be proved by means of till receipts in the cases foreseen in Paragraph II.188.8.131.52 of this Resolution or by means of conformity modules pursuant to Paragraph II.4.4. These documents must be submitted in order and numbered, in accordance with the list of documentary evidence;
- Copy of the document attesting payment of the subsidy into the bank account to which Article I.3 of the present Resolution and the bank statements pertaining to the implementation period;
- Evidence of the exchange rates applied. A detailed list of all the exchange rates applied, pursuant to the model contained in Annexe II shall be submitted. The relevant documentary evidence shall be attached. (Exchange rate operations shall be carried out on official markets and shall be evidenced with the documents issued by the institutions operating in such markets);
- Proof of the interest generated. A table of the interest generated, in line with Annexe III of the present Resolution shall be submitted. This table shall be backed up by bank statements reflecting the interest generated or, in the event, by a bank certificate stating the aggregate amount of interest credited to the project’s bank account. Such a certificate shall be signed and sealed by the bank. If interest has not been generated, a bank certificate evidencing this shall be submitted. The beneficiary shall detail the items to which the interest generated has been assigned in Annexe IV of the present Resolution;
- An Abbreviated Economic Report pursuant to Annexe IV of the present Resolution, which shall include the current situation of costs incurred for each budgetary item, the amounts initially budgeted for and the inclusion in the budget of the interest generated;
- A representative break-down of general expenses by items and by fund providers pursuant to Annexe V of the present Resolution;
- A certificate from the legal representative of the beneficiary organisation, stating whether or not another subsidy has been secured from the public administrations or public or private institutions, whether Spanish or foreign, for each activity subsidised and the amount so obtained.
II.4.3 Explanatory account with auditor’s report.
If the explanation is made by means of an explanatory account with an auditor’s report appended, the following documentation shall be provided:
- Technical explanation, pursuant to Paragraph II.3 of the present Resolution;
- List of explanatory documents pursuant to the model provided in Annexe I of the present Resolution;
- Detailed list of all exchange rates applied pursuant to the model provided in Annexe II of the present Resolution;
- Table of interest generated pursuant to Annexe III of the present Resolution;
- Abbreviated Economic Report pursuant to Annexe IV of the present Resolution;
- Representative break-down of general expenses by items and by fund providers pursuant to Annexe V of the present Resolution;
- Auditor’s report.
The audit shall be carried out pursuant to Ministerial Order EHA/1434/2007, dated 17 May.
The auditing firms must be duly recorded with the ROAC (Official Register of Account Auditors of Spain), attached to the Spanish Institute of Accounting and Auditing of the Ministry of Economics and Finance. If the firm carrying out the audit is controlled by or linked to a recognised auditing firm, the documents accrediting such links and the responsibility of the firm backing such report shall be submitted.
If the review of the explanatory account by an auditor is carried out abroad, it may be carried out by auditors practising in the country where the revision is to be carried out, provided a system of licensing to carry out the profession exists in such a country. If a licensing system to practise as an auditor in such a country does not exist, the revision set out in this Article may be carried out by an auditor established in such country, provided such an auditor is appointed by the subsidy provider or is ratified by the latter, pursuant to technical standards ensuring an adequate quality thereof.
The submission of the audit report as a means of justifying expenses does not exempt the beneficiary organisation of the subsidy from preserving the supporting written evidence for the time periods laid down by law.
The AECID or the competent bodies of the State Administration may obtain the documentary evidence supporting the audit pursuant to the provisions of the present Resolution.
The quality and rigour of the audit report, as far as the verification of compliance with all the requirements laid down for the justifying account by the present Rules is concerned, shall be borne in mind in the review process in order to accredit compliance with the purposes and the end of the project.
Partial justification of expenses by modules is a way of accounting for expenses that is based on two premises, namely: the existence of prices agreed between the subsidy provider and the organisation subsidised and verification of the reality of implementation of the activities on the Administration’s part.
It is a system that is considered especially appropriate for activities that are accounted for by means of a large number of small invoices and receipts, which are of a repetitive nature, and whose implementation can be easily verified.
Authorisation shall always be sought from the AECID for the use of the system of modules with an exact indication of the budgetary item to be included therein and forwarding to the Management Unit a re-drafting of the budget if necessary. The proposal must have the budget annexed (Annexe M-1 of the present Resolution) and the certificate (Annexe M-2 of the present Resolution). The AECID shall resolve the matter by accepting or refusing such proposal.
This procedure may be used in the following cases:
- Training, qualification or dissemination courses;
- Infrastructure and construction expenses;
- Work carried out by the subsidised organisation or the counterparty, using the usual material and staff resources, albeit in a differentiated way and applicable to direct implementation expenses, not imputable to the financing provided by the counterparty (evaluations);
- Other cases where explanation by modules shall be decided by the AECID, once the characteristics thereof have been examined.
1 Prior requirements. For the use of the partial justification method by system of modules to be feasible, the following prior requirements must be met:
- A quantified and detailed budget, subdivided into perfectly identifiable units in order to verify implementation, covering the activity or activities that must be justified through this system. The budget shall conform to the model of Appendix M-1 hereof.
- The prices applied to such units shall not exceed the market prices of the country where the project is to be implemented and/or for this type of service.
- Certificate of the Embassy/TCO/AECID (model in Annexe M-2 hereof).
Expenses to be justified via modules shall refer only to those financed with an AECID subsidy and shall not include, under any circumstances, work carried out by the counterparty or local partner and formulated as local financing of the project.
2 Amendments. Amendments to any aspect included in the AECID resolution approving the module must be the object of prior authorisation, subject to the following terms. Variations to the number of units vis-à-vis those foreseen in the budget approved for the module, or duly authorised amendments thereof shall be admissible up to a limit of 5 % up or down, provided no increase in the AECID financing is involved. Subject to this latter condition, changes in the total number of units to be implemented within a module exceeding the aforesaid 5 % must be authorised by the granting body.
The introduction of types of unit different from those initially approved in the module budget or the substitution of those approved for new ones, provided an increase in AECID funding is not involved, shall require authorisation by the granting body, subject to the favourable advice of the Embassy/TCO/AECID.
If, due to market circumstances, the price of a unit included in a module is less than that reflected in the approved budget, the beneficiary may request from the granting body, with the approval of the Embassy/TCO/AECID, in the event, that attest the veracity of the new price, the change in the unit price and the authorisation to use the sums resulting from the reduction of such price in the same or other units of the project or in other activities related therewith.
If, due to market circumstances, the price of a unit included in a module is greater than that reflected in the approved budget, the beneficiary may request from the granting body, with the approval of the Embassy/OTC/AECID, in the event, that attest the veracity of the new price, the change in the unit price. In this case, explanation shall be provided of the source of financing to be used to respond to the resulting cost increase.
3 Justification by modules. Approval of the use of the system of justification by modules for a specific activity shall imply that the document called “Certificate” may be included in the explanatory account, as a means of evidencing the carrying out of the expense such an activity involves. In all cases, the original certificates shall be provided together with the explanatory account and the submission of the former does not exempt the user from providing the other documents required, such as agreements or tenders. This document, whose purpose is to determine and identify the number and type of units really implementation and the estimate thereof, shall consist of a certified list. The relevant model is contained in Annexe M-3 hereof.
III. Responsibility and penalisations
The beneficiaries of the subsidies shall be subject to the responsibilities and the penalisation system that Title IV of the General Subsidies Act establishes as administrative offences in the field of subsidies.
Likewise, they shall be subject to the provisions contained in Title IX of Act 30/1992, dated 26 November.
The refund of the sums received and, in the event, the income resulting from the projects and the interests generated by the subsidy, as well as demands for late payment interest for the period comprised between the time the subsidy was paid and the date in which the refund is approved, in the following cases:
a) Obtaining the subsidy without fulfilling the requirements thereof;
b) Total or partial non-compliance with the objective, the activity, the project or the non-adoption of an activity on which the granting of the subsidy was based;
c) Non-compliance with the obligation to provide documentary evidence;
d) Non-fulfilment of the obligation imposed by the Administration, as well as of the undertakings made by the beneficiaries, in order for the subsidy to be granted.
The refund procedure shall be regulated by the provisions contained in Chapter II of Title II of the General Subsidies Act.
In order to calculate the amount to be finally refunded, the criteria established to evaluate non-compliance with the conditions imposed when the subsidy was granted, provided for in Basis 15 of Order AEC/442/2007, shall be taken into account.