http://www.legislation.gov.uk/eur/2014/1042/chapter/II/section/IIICommission Delegated Regulation (EU) No 1042/2014 of 25 July 2014 supplementing Regulation (EU) No 514/2014 with regard to the designation and management and control responsibilities of Responsible Authorities and with regard to status and obligations of Audit AuthoritiesCommission Delegated Regulation (EU) No 1042/2014Commission Delegated Regulation (EU) No 1042/2014 of 25 July 2014 supplementing Regulation (EU) No 514/2014 with regard to the designation and management and control responsibilities of Responsible Authorities and with regard to status and obligations of Audit Authorities2020-12-13King's Printer of Acts of Parliamenthttps://webarchive.nationalarchives.gov.uk/eu-exit/https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:02014R1042-20181016texttext/xmlen2018-10-16CHAPTER IITHE RESPONSIBLE AUTHORITY
SECTION IIIObligations of the Responsible Authority as regards public intervention
Article 7The role of the Responsible Authority as awarding body1.

As a general rule, the Responsible Authority shall award grants for projects under the national programme on the basis of open calls for proposals.

2.

The Responsible Authority may award grants for projects on the basis of a restricted call for proposals.

Restricted calls for proposals are open only to selected organisations because of the specific nature of the project or the technical or administrative competence of the bodies invited to submit proposals.

The grounds justifying the use of a restricted call for proposals shall be set out in the call for proposals.

3.

The Responsible Authority may award grants directly where the specific nature of the project or the technical or administrative competence of the relevant bodies leaves no other choice, such as in the case of de jure or de facto monopolies.

The grounds justifying the use of a direct award shall be set out in the award decision.

4.

In duly justified cases, including continuation of multiannual projects which were selected after a previous call for proposals or in emergency situations, grants may be awarded without a call for proposals.

The grounds justifying that the grant was awarded without a call for proposals shall be set out in the award decision.

5.

When the Responsible Authority acts as an awarding body, neither the Responsible Authority nor any Delegated Authority may be a beneficiary of a grant awarded in accordance with this Article.

6.

The Responsible Authority shall determine who awards grants and shall ensure that conflicts of interest are avoided, in particular when the applicants are national bodies.

Article 8Conditions under which the Responsible Authority acts as executing body1.

The Responsible Authority may decide to implement projects directly, either alone or in association with any other national authority, because of administrative powers, technical expertise, or because the characteristics of the project leaves no other choice for the implementation, such as a de jure monopoly or security requirements. In such cases, the Responsible Authority shall be the beneficiary of the grant.

2.

The Responsible Authority's reasons for acting as executing body and selecting any associated national authorities as described in paragraph 1 shall be reported to the Commission in the annual implementation report referred to in Article 54 of Regulation (EU) No 514/2014.

3.

When implementing projects as an executing body, the Responsible Authority shall observe the principle of value for money and prevent conflicts of interest.

4.

The administrative decision to co-finance a project under the national programme shall include any information necessary to monitor the implementation of co-financed products and services and to check the expenditure incurred.

5.

If the Responsible Authority is likely to act as executing body on a regular basis:

(a)

the Responsible Authority and the Audit Authority shall not be part of the same body, unless the Audit Authority reports to an outside body and its audit independence is guaranteed; and

(b)

the tasks of the Responsible Authority as set out in Article 4 shall not be affected.

Article 9Selection and award procedure1.

The calls for proposals referred to in Article 7(1) shall be publicised in a way that ensures open competition and appropriate publicity among potential beneficiaries. Any substantial change to the calls shall be publicised in the same way.

The calls for proposals referred to in Article 7(1) and (2) shall specify at least the following:

(a)

objectives;

(b)

selection and award criteria;

(c)

arrangements for Union and, if applicable, national financing, including, where applicable, the possibility to apply a higher co-financing rate in accordance with Article 16(5) of Regulation (EU) No 514/2014;

(d)

arrangements and final date for submission of the proposals;

(e)

eligibility rules for the expenditure;

(f)

project duration; and

(g)

financial and other information to be kept and reported.

2.

Before the award decision is taken, the Responsible Authority shall satisfy itself that the beneficiaries in the project have the capacity to meet the selection and award criteria.

3.

The Responsible Authority shall define the procedures for the receipt of proposals. It shall subject proposals to a formal, technical and budgetary analysis and qualitative assessment applying the criteria laid down in the call for proposals in a transparent and non-discriminatory manner. The Responsible Authority shall record in writing the reasons for the rejection of the other proposals.

4.

The award decision shall indicate at least the name of the beneficiaries, the essential details of the project and its operational objectives, the maximum amount of Union contribution and the maximum rate of co-financing of the total eligible costs.

5.

The Responsible Authority shall inform all applicants of its decision in writing. It shall give unsuccessful candidates the reasons for their rejection with reference to the selection and award criteria.

Article 10Documents formalising grants when the Responsible Authority acts as awarding body1.

In cases where the Responsible Authority acts as awarding body, it shall lay down project management procedures which require, at least to:

(a)

sign grant agreements with beneficiaries and

(b)

monitor the grant agreements, including any amendments thereto, by administrative means such as exchanges of correspondence or written reports.

2.

The grant agreement shall include or indicate the following:

(a)

maximum amount of Union contribution;

(b)

maximum percentage of Union contribution in accordance with the relevant Specific Regulation;

(c)

detailed description and timetable of the project;

(d)

if applicable, any major task that the beneficiary intends to subcontract to third parties, together with the related costs;

(e)

agreed forward budget and financing plan for the project, including expenditure and income, in accordance with the eligibility rules established;

(f)

method for calculating the amount of Union contribution upon the project's closure;

(g)

timetable and implementing provisions of the agreement, including provisions on reporting obligations, amendments to the agreement and termination of the agreement;

(h)

operational objectives of the project, including quantified objectives and the indicators to be reported on;

(i)

provision requiring the beneficiary to collect, in a timely manner, the requisite data for the common indicators set out in the Specific Regulation, and any programme-specific indicators, and to report these data at least once a year;

(j)

definition of the eligible costs, including, where applicable, a description of the methodology for determining scale-of-unit costs, lump sums and flat-rate financing;

(k)

bookkeeping requirements and conditions relating to payment of the grant;

(l)

conditions relating to the audit trail;

(m)

provisions relating to data protection and

(n)

provisions relating to publicity.

3.

As a general rule, the grant agreement shall be signed before any of the project activities charged to the national programme begin.

4.

The grant agreement shall expressly stipulate that the Commission, or its representatives, and the Court of Auditors exercise powers of audit over all grant beneficiaries, contractors and sub-contractors who receive Union funding under the national programme, and will do so on the basis of documentary and on-the-spot controls.

Article 11Documents formalising grants when the Responsible Authority acts as executing body1.

In cases where the Responsible Authority acts as executing body, it shall lay down project management procedures which require at least to:

(a)

formalise an administrative decision to co-finance projects and

(b)

monitor the administrative decision and any amendments thereto by administrative means such as exchanges of correspondence or written reports.

2.

The administrative decision shall include or indicate the following:

(a)

maximum amount of Union contribution;

(b)

maximum percentage of Union contribution in accordance with the relevant Specific Regulation;

(c)

detailed description and timetable of the project;

(d)

if applicable, any major task that the beneficiary intends to subcontract to third parties, together with the related costs;

(e)

agreed forward budget and financing plan for the project, including expenditure and income, in accordance with the eligibility rules established;

(f)

method for calculating the amount of Union contribution upon the project's closure;

(g)

operational objectives of the project, including quantified objectives and the indicators to be used;

(h)

provision requiring the Responsible Authority to collect, and report at least once a year, the requisite data for the common indicators set out in the Specific Regulation, and any programme-specific indicators, and to report these data at least once a year;

(i)

definition of the eligible costs, including, where applicable, a description of methodology for determining scale-of-unit costs, lump sums and flat-rate financing;

(j)

bookkeeping requirements and conditions relating to payment of the grant;

(k)

conditions relating to the audit trail;

(l)

provisions relating to data protection and

(m)

provisions relating to publicity.

3.

As a general rule, the administrative decision shall be taken before any of the project activities charged to the national programme begin.

4.

The administrative decision shall expressly stipulate that the Commission, or its representatives, and the Court of Auditors exercise powers of audit over all grant beneficiaries, contractors and sub-contractors who receive Union funding under the national programme, and will do so on the basis of documentary and on-the-spot controls.