regulation norwegian fm 2009-2014 (final)

8/11/2019 Regulation Norwegian FM 2009-2014 (Final).

http://slidepdf.com/reader/full/regulation-norwegian-fm-2009-2014-final 1/44

Regulation on the implementation of

the Norwegian Financial Mechanism 2009-2014

Regulation on the implementation of the

Norwegian Financial Mechanism 2009-2014

adopted by the Norwegian Ministry of Foreign ffairs pursuant to rticle !"! of the

greement between the #ingdom of Norway and the $uropean %nion on a Norwegian

Financial Mechanism for the period 2009-2014 on 11 February 2011

1





Table of contents

Chapter 1: General provisions.......................................................................................................6

rticle 1"1 &ub'ect matter""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 1"2 (b'ecti)es""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 1"* +rinciple of co-operation"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 1"4 ,he legal framewor""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 1". /efinitions"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 1" +rinciples of implementation"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 1" Financial contribution""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 1"! Management costs of Norway"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 1"9 Management costs of the eneficiary &tate"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 1"10 Resources for the reser)e"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

Chapter 2: Strategic approach......................................................................................................9

rticle 2"1 Memorandum of %nderstanding""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 2"2 &trategic Report"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 2"* nnual meeting""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

Chapter 3: Bilateral relations......................................................................................................10

rticle *"1 3eneral principles""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle *"2 /onor partnership programmes"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle *"* ooperation ommittee"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle *"4 /onor partnership pro'ects"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle *". Funds for bilateral relations at national le)el"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle *" Funds for bilateral relations at programme le)el""""""""""""""""""""""""""""""""""""""""""""""""""""""

Chapter 4: anage!ent an" control s#ste!s............................................................................12

rticle 4"1 3eneral principles of the management and control systems""""""""""""""""""""""""""""""""""""

rticle 4"2 /esignation of national entities"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 4"* National Focal +oint""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 4"4 Monitoring ommittee""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 4". ertifying uthority""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 4" udit uthority""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 4" Responsibilities of the +rogramme (perator"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 4"! &etting up of management and control systems"""""""""""""""""""""""""""""""""""""""""""""""""""""""

Chapter $: %rogra!!es...............................................................................................................16

2





rticle "1* +roof of e7penditure""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle "14 +eriod of eligibility of e7penditures in pro'ects"""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle "1. /urability of pro'ects"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle "1 +rocurement"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

Chapter +: ,inancial !anage!ent..............................................................................................32

rticle !"1 ommon rules for payments""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle !"2 d)ance payments"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle !"* 8nterim payments"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle !"4 +ayment of the final balance""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle !". Forecast of liely payment applications"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle !" %se of the euro"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle !" 8nterest"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle !"! ,ransparency and a)ailability of documents""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

Chapter 9: (val*ations................................................................................................................3$

rticle 9"1 Responsibilities of eneficiary &tates""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 9"2 Role of the NMF"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

Chapter 10: ()ternal !onitoring an" a*"its.............................................................................3$

rticle 10"1 $7ternal monitoring"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 10"2 ,he (ffice of the uditor 3eneral of Norway"""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 10"* udits and on-the-spot )erifications arranged by the NMF"""""""""""""""""""""""""""""""""

rticle 10"4 ccess""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

Chapter 11: -rreg*larities............................................................................................................36

rticle 11"1 Responsibilities related to irregularities"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 11"2 /efinition of irregularities"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 11"* $ntities responsible for reporting"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 11"4 8mmediate reporting on irregularities"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 11". Regular reporting on irregularities"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 11" Reporting on progress regarding already reported irregularities""""""""""""""""""""""""""""

rticle 11" Reporting on irregularities upon re;uest""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 11"! omplaint mechanism"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

Chapter 12: S*spension of pa#!ents financial corrections an" rei!b*rse!ent....................3+

rticle 12"1 &uspension of payments""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 12"2 Financial corrections""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 12"* riteria for financial corrections""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 12"4 +rocedure"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 12". Reimbursement""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

4





rticle 12" 3eneral suspension of payments to a eneficiary &tate"""""""""""""""""""""""""""""""""""""""""

Chapter 13: ,inal provisions.......................................................................................................40

rticle 1*"1 <anguage"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 1*"2 <iability"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 1*"* pplicable law and 'urisdiction"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 1*"4 mendments""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 1*". $ntry into force""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

Chapter 1: General provisions.......................................................................................................6

rticle 1"1 &ub'ect matter""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 1"2 (b'ecti)es""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 1"* +rinciple of co-operation"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 1"4 ,he legal framewor""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""rticle 1". /efinitions"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 1" +rinciples of implementation"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 1" Financial contribution""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 1"! Management costs of Norway"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 1"9 Management costs of the eneficiary &tate"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 1"10 Resources for the reser)e"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

Chapter 2: Strategic approach......................................................................................................9

rticle 2"1 Memorandum of %nderstanding""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 2"2 &trategic Report"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 2"* nnual meeting""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

Chapter 3: Bilateral relations......................................................................................................10

rticle *"1 3eneral principles""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle *"2 /onor partnership programmes"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle *"* ooperation ommittee"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle *"4 /onor partnership pro'ects"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle *". Funds for bilateral relations at national le)el"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle *" Funds for bilateral relations at programme le)el""""""""""""""""""""""""""""""""""""""""""""""""""""""

Chapter 4: anage!ent an" control s#ste!s............................................................................12

rticle 4"1 3eneral principles of the management and control systems""""""""""""""""""""""""""""""""""""

rticle 4"2 /esignation of national entities"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 4"* National Focal +oint""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 4"4 Monitoring ommittee""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 4". ertifying uthority""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 4" udit uthority""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

.





rticle 4" Responsibilities of the +rogramme (perator"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 4"! &etting up of management and control systems"""""""""""""""""""""""""""""""""""""""""""""""""""""""

Chapter $: %rogra!!es...............................................................................................................16

rticle ."1 +reparation of programmes""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle ."2 +rogramme proposals""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle ."* ppraisal of and decision on a programme""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle ."4 3rant rates and minimum si5e of pro'ect grants"""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle .". &election of pre-defined pro'ects"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle ." &mall grant schemes within a programme"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle ." +rogramme agreement"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle ."! +rogramme implementation agreement"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle ."9 Modification of programmes"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle ."10 &creening by the $uropean ommission"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle ."11 nnual programme report""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle ."12 Final programme report"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle ."1* +rogrammes operated by the FM(6 inter-go)ernmental organisations or

Norwegian entities""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

Chapter 6: Selection of pro&ects..................................................................................................21

rticle "1 Modes of selection"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle "2 $ligibility of applicants""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle "* alls for proposals"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle "4 &election ommittee""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle ". &election procedures""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle " onflict of interest"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle " +ro'ect contract""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle "! +ro'ect partners and partnership agreements""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle "9 3rant awarding and reallocation of funds""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

Chapter ': (ligibilit# of e)pen"it*res.........................................................................................2$

rticle "1 $ligible e7penditures of a programme"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle "2 3eneral principles on the eligibility of e7penditures"""""""""""""""""""""""""""""""""""""""""""""""

rticle "* $ligible direct e7penditures in a pro'ect"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle "4 8ndirect costs in pro'ects o)erheads:"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle ". +urchase of real estate and land"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle " $7cluded costs"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle " Funds for bilateral relations"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle "! &cholarships and mobility programmes"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle "9 osts for preparation of programmes"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""





rticle "10 $ligibility of management cost incurred by +rogramme (perator"""""""""""""""""""""""""

rticle "11 omplementary action by the +rogramme (perator""""""""""""""""""""""""""""""""""""""""""""""

rticle "12 ,echnical assistance to the eneficiary &tate"""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle "1* +roof of e7penditure""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle "14 +eriod of eligibility of e7penditures in pro'ects"""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle "1. /urability of pro'ects"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle "1 +rocurement"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

Chapter +: ,inancial !anage!ent..............................................................................................32

rticle !"1 ommon rules for payments""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle !"2 d)ance payments"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle !"* 8nterim payments"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle !"4 +ayment of the final balance""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle !". Forecast of liely payment applications"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle !" %se of the euro"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle !" 8nterest"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle !"! ,ransparency and a)ailability of documents""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

Chapter 9: (val*ations................................................................................................................3$

rticle 9"1 Responsibilities of eneficiary &tates""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 9"2 Role of the NMF"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

Chapter 10: ()ternal !onitoring an" a*"its.............................................................................3$

rticle 10"1 $7ternal monitoring"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 10"2 ,he (ffice of the uditor 3eneral of Norway"""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 10"* udits and on-the-spot )erifications arranged by the NMF"""""""""""""""""""""""""""""""""

rticle 10"4 ccess""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

Chapter 11: -rreg*larities............................................................................................................36

rticle 11"1 Responsibilities related to irregularities"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 11"2 /efinition of irregularities"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 11"* $ntities responsible for reporting"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 11"4 8mmediate reporting on irregularities"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 11". Regular reporting on irregularities"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 11" Reporting on progress regarding already reported irregularities""""""""""""""""""""""""""""

rticle 11" Reporting on irregularities upon re;uest""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 11"! omplaint mechanism"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

Chapter 12: S*spension of pa#!ents financial corrections an" rei!b*rse!ent....................3+

rticle 12"1 &uspension of payments""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 12"2 Financial corrections""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""





rticle 12"* riteria for financial corrections""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 12"4 +rocedure"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 12". Reimbursement""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 12" 3eneral suspension of payments to a eneficiary &tate"""""""""""""""""""""""""""""""""""""""""

Chapter 13: ,inal provisions.......................................................................................................40

rticle 1*"1 <anguage"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 1*"2 <iability"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 1*"* pplicable law and 'urisdiction"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 1*"4 mendments""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

rticle 1*". $ntry into force""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

NN$=$&

nne7 1 $ligible programme areasnne7 2 ,emplate for Mo%

nne7 * ,emplate for &trategic Report

nne7 4 8nformation and +ublicity Re;uirements

nne7 . ,emplate for irregularities reports

nne7 ,echnical ssistance

nne7 ,emplate for a forecast of liely payment applications

nne7 ! ,emplate for reporting on interest earned

nne7 9 +rogramme (perators> Manual

,emplate for programme proposal

,emplate for the financial anne7 to the Final +rogramme Report

nne7 10 ,emplate for programme agreement

nne7 11 ,emplate for interim financial report

nne7 12 Rules for the establishment and implementation of /onor partnership

programmes falling under the +rogramme rea ?Research within +riority

sectors@ and ?ilateral Research ooperation@

nne7 1* ,otal and net financial contributions

!





Chapter 1:

General provisions

/rticle 1.1

S*b&ect !atter1" ,his Regulation applies to the implementation of the Norwegian Financial Mechanism 2009-2014and was adopted in accordance with rticle ! of thegreement between the #ingdom of Norway and

the $uropean %nion on a Norwegian FinancialMechanism for the period 2009-2014 hereinafter referred to as the greement:"

2" ,his Regulation lays down the general rulesgo)erning the Norwegian Financial Mechanism2009-2014 without pre'udice to the pro)isions laiddown in the greement"

/rticle 1.2

b&ectives

1" ,he o)erall ob'ecti)es of the NorwegianFinancial Mechanism 2009-2014 are to contribute

to the reduction of economic and social disparitiesin the $uropean $conomic rea and to strengthen bilateral relations between Norway and theeneficiary &tates through financial contributionsin the priority sectors listed in paragraph 2"

2" ,he financial contributions are a)ailable in the

following priority sectorsA

a: carbon capture and storageB

b: green industry inno)ationB

c: research and scholarshipB

d: human and social de)elopmentB

e: 'ustice and home affairsB

f: promotion of decent wor and tripartitedialogue"

*" ,he allocation target for the priority sector listed

in paragraph 2a: shall be at least 20C of the totalallocation" (ne percent of the total allocation toeach eneficiary &tate shall be set aside for a fundfor the priority sector listed in paragraph 2f:6 to be

operated by 8nno)ation Norway6 and in accordancewith the distribution ey referred to in rticle . of the greement"

4" 8n order to ensure efficient and targeted use of the financial contribution from the NorwegianFinancial Mechanism 2009-20146 itsimplementation shall be within the programmeareas listed in nne7 1 and agreed upon in theMo%"

/rticle 1.3

%rinciple of cooperation

,he ob'ecti)es of the Norwegian FinancialMechanism 2009-2014 shall be pursued in theframewor of close co-operation between Norwayand the eneficiary &tates"

/rticle 1.4

The legal fra!eor

1" ,his Regulation shall be read in con'unction withthe following documents which6 together with the

Regulation and its anne7es6 constitute the legalframewor of the Norwegian Financial Mechanism2009-2014A

a: the greement between the #ingdom of

Norway and the $uropean %nion on the Norwegian Financial Mechanism 2009-2014B

b: the Memorandum of %nderstanding on the

8mplementation of the Norwegian FinancialMechanism 2009-2014 hereinafter referred toas the Mo%:6 entered into between the#ingdom of Norway and the eneficiary &tateB

c: the programme agreementsB and

d: any guidelines adopted by the NMF after

consultation with the eneficiary &tates"

2" ,he eneficiary &tate shall ensure that anyadditional pro)isions applicable to the

implementation of the Norwegian FinancialMechanism 2009-2014 are ept to a minimum" ,helegal framewor mentioned in paragraph 1 taes precedence o)er any such pro)isions"

/rticle 1.$

efinitions

1" For the purposes of this Regulation6 thefollowing terms shall ha)e the meanings assignedto them hereA

a: ?udit uthority@A a national public entity6functionally independent of the National Focal+oint6 the ertifying uthority and the

+rogramme (perator6 designated by theeneficiary &tate and responsible for )erifyingthe effecti)e functioning of the managementand control system"

b: ?ertifying uthority@A a national public entity6functionally independent of the udit uthorityand the +rogramme (perator6 designated by theeneficiary &tate to certify financialinformation"

c: ?/onor partnership pro'ect@A a pro'ect

implemented in close cooperation with a pro'ect partner whose primary location is in

Norway"

9





d: ?/onor programme partner@A a public entity in Norway or an inter-go)ernmental organisationdesignated by the NMF ad)ising on the preparation andDor implementation of a programme"

e: ENot used"

f: ENot used"

g: ?$)aluation@A a systematic6 ob'ecti)e and

independent assessment of the design6implementation andDor results achie)ed in programmes and pro'ects with the aim of determining the rele)ance6 effecti)eness6efficiency6 economy6 impacts and sustainabilityof the financial contribution"

h: ?Financial Mechanism (ffice@ hereinafter referred to as the FM(:A ,he office assistingthe NMF in managing the Norwegian

Financial Mechanism 2009-2014" ,he FM(6which is administrati)ely a part of the$uropean Free ,rade ssociation6 isresponsible for the day-to-day implementationof the Norwegian Financial Mechanism 2009-2014 on behalf of the NMF and ser)es as a

contact point"

i: ?Monitoring@A the obser)ation of pro'ect and programme implementation in order to ensure

that agreed procedures are followed6 to )erify progress and to identify potential problems in atimely manner so as to allow for correcti)e

action"': ?Monitoring ommittee@A a committee

established by the National Focal +oint tore)iew progress in the implementation of the Norwegian Financial Mechanism 2009-2014towards reaching its e7pected outcomes andob'ecti)es"

: ?National Focal +oint@A a national public entitydesignated by the eneficiary &tate to ha)e theo)erall responsibility for reaching the

ob'ecti)es of the Norwegian FinancialMechanism 2009-2014 and implementing the

Mo%"l: ?Net allocation@A the total financial

contribution to a eneficiary &tate6 net of Norway>s management cost referred to inrticle 1"!"

m: ?Non-go)ernmental organisation@ hereinafter referred to as N3(:A a non-profit )oluntaryorganisation established as a legal entity6ha)ing a non-commercial purpose6 independentof local6 regional and central go)ernment6

public entities6 political parties and commercialorganisations" Religious institutions and

political parties are not considered N3(s

n: ?+rogramme@A a structure setting out ade)elopment strategy with a coherent set of measures to be carried out through pro'ectswith the support of the Norwegian FinancialMechanism 2009-2014 and aimed at achie)ing

agreed ob'ecti)es and outcomes"

o: ?+rogramme agreement@A an agreement between the NMF and the National Focal

+oint regulating the implementation of a particular programme"

p: ?+rogramme area@A a thematic field within a

priority sector6 with a specific o)erall ob'ecti)eand specific measurable outcomes"

;: ?+rogramme grant@A the financial contribution

from Norway to a programme"

r: ?+rogramme (perator@A a public or pri)ateentity6 commercial or non-commercial6 as well

as non-go)ernmental organisations6 ha)ing theresponsibility for preparing and implementing a programme"

s: ?+rogramme partner@A a public or pri)ate

entity6 commercial or non-commercial6 as wellas non-go)ernmental organisations6 acti)elyin)ol)ed in6 and effecti)ely contributing to6 theimplementation of a programme"

t: ?+ro'ect@A an economically indi)isible series of wors fulfilling a precise technical function andwith clearly identifiable aims related to the programme under which it falls" pro'ect may

include one or more sub-pro'ects" Githout pre'udice to rticle .".6 pro'ects are selected bythe +rogramme (perator"

u: ?+ro'ect contract@A an agreement between the

+rogramme (perator and the +ro'ect +romoter regulating the implementation of a particular pro'ect"

): ?+ro'ect grant@A a grant awarded by a+rogramme (perator to a +ro'ect +romoter toimplement a pro'ect"

w: ?+ro'ect partner@A a public or pri)ate entity6

commercial or non-commercial6 as well as non-go)ernmental organisations6 all of whose primary locations are either in Norway6eneficiary &tates or a country outside the$uropean $conomic rea that has a common

border with the respecti)e eneficiary &tate6 or any inter-go)ernmental organisation6 acti)elyin)ol)ed in6 and effecti)ely contributing to6 theimplementation of a pro'ect" 8t shares with the+ro'ect +romoter a common economic or socialgoal which is to be realised through the

implementation of that pro'ect" For donor partnership programmes falling under the

programme area ?ilateral Researchooperation@6 the term ?pro'ect partner@ isdefined in the nne7 12"

10





7: ?+ro'ect +romoter@A a public or pri)ate entity6commercial or non-commercial6 as well as non-go)ernmental organisations6 ha)ing theresponsibility for initiating6 preparing andimplementing a pro'ect"

y: ?&ocial partners@A representati)es of employersH

organisations and trade unions"

2" ,he terms ?ob'ecti)e@6 ?outcome@ and ?output@of a programme are described in nne7 9"

/rticle 1.6

%rinciples of i!ple!entation

,he highest degree of transparency6 accountabilityand cost efficiency as well as the principles of goodgo)ernance6 sustainable de)elopment6 gender

e;uality and e;ual opportunities shall be applied inall implementation phases of the NorwegianFinancial Mechanism 2009-2014" Norway e7ercises5ero-tolerance towards corruption"

/rticle 1.'

,inancial contrib*tion

1" 8n accordance with rticle 2 the greement6 thefinancial contribution from the Norwegian

Financial Mechanism 2009-2014 shall be I !00million6 to be made a)ailable for commitment inannual tranches of I 10 million o)er the periodrunning from 1 May 2009 to *0 pril 20146

inclusi)e"

2" nnual commitment tranches refers to funds thatmay during its respecti)e year and onwards bemade a)ailable for pro'ects6 management costs6technical assistance6 and other costs related to the

implementation of the Norwegian FinancialMechanism 2009-2014"

/rticle 1.+

anage!ent costs of 5ora#

1" ,he management costs of Norway shall be

co)ered by the financial contribution"

2" Management costs shall includeA

a: the costs of running the FM(B

b: the costs lined to the functions of the NMFrelated to the Norwegian FinancialMechanismB

c: the costs related to appraisal6 monitoring6e)aluation6 reporting6 and auditing performed by or on behalf of the NMFB

d: the costs related to the participation of donor

programme partners6 including preparatorywor to facilitate donor partnership programmesB

e: the costs of 8nno)ation Norway for programmearea ?3lobal Fund for /ecent Gor and,ripartite /ialogue@"

*" ,he costs referred to in paragraph 1 are fi7ed at".C of the total amount of the financialcontribution"

/rticle 1.9

anage!ent costs of the Beneficiar#

State

3eneral administrati)e costs incurred by the

eneficiary &tate in relation to the implementationof the Norwegian Financial Mechanism 2009-2014shall not be co)ered by the Norwegian FinancialMechanism 2009-2014" &pecific costs which arenecessary6 clearly identifiable6 and directly ande7clusi)ely related to the management of the

Norwegian Financial Mechanism 2009-2014 can beco)ered through technical assistance" ,he eligibilityof such costs is set in rticle "12"

/rticle 1.10

eso*rces for the reserve

1" Norway and the eneficiary &tates shall in theMo% decide to set aside a reser)e6 consisting of aminimum of .C of the eneficiary &tate>s totalallocation6 for e7ample to react to unforeseen

de)elopments in the eneficiary &tate" Not later

than *1 January 201*6 the eneficiary &tate shallsubmit to the NMF a proposal on the allocation of the reser)e within the framewor of the NorwegianFinancial Mechanism 2009-20146 either in the formof a new programme or as an addition to an e7isting

programme or programmes" ,he NMF shalldecide on the allocation of the reser)e inaccordance with rticle ."* or paragraph ! of rticle ."96 as appropriate" Norway may ine7ceptional cases wai)e the re;uirement of areser)e according to this paragraph"

2" Norway and the eneficiary &tates may agree toset aside a ma7imum of 10C of the total

contribution from the Norwegian FinancialMechanism 2009-2014 to fund the completion of specific pro'ects selected within the framewor of the Norwegian Financial Mechanism 2004-2009",he total amount of such a reser)e and the pro'ectsto be funded from this reser)e shall be confirmed inthe Mo%" ,he rules of the Norwegian Financial

Mechanism 2004-2009 shall apply to theimplementation of such pro'ects and the final dateof eligibility shall be no later than *0 pril 2012"

11





Chapter 2:

Strategic approach

/rticle 2.1

e!oran"*! of 7n"erstan"ing

1" 8n order to ensure efficient and targetedimplementation Norway shall conclude an Mo%with each eneficiary &tate"

2" ,he Mo% shall establish a framewor for cooperation and contain the following elementsA

a: the designation of national entities in)ol)ed inthe implementation of the Norwegian FinancialMechanism 2009-2014 and identification of their functions in the national management andcontrol structures nne7 to the Mo%:"

b: an implementation framewor nne7 to theMo%: consisting of the following financial andsubstanti)e parametersA

i: a list of agreed programme areas6 thefinancial contribution from the Norwegian Financial Mechanism 2009-2014 by programme areaB

ii: identification of programmes6 their mainfocus and outcomes6 as appropriate6 aswell as any specific concerns relating to

target groups6 geographical areas or other issuesB

iii: identification of programme operators6as appropriateB

i): initiati)es to strengthening the bilateralrelations between Norway and the

eneficiary &tates6 including theidentification of programme areas inwhich donor partnership programmes asreferred to in rticle *"2 shall be prepared6 the designation of donor programme partners6 the allocation of

funds for such programmes6 and programmes6 or component thereof6 that

are dedicated e7clusi)ely to donor partnership pro'ectsB

): in specific cases6 the identification of pre-defined pro'ects to be included inrele)ant programmesB

)i: identification of small grant schemes6 asappropriate"

*" nne7 may be sub'ect to re)iew at the annualmeetings" mendments to nne7 agreed upon atthe annual meetings do not re;uire a formal changeto the Memorandum of %nderstanding" &uchamendments shall be confirmed through an

e7change of letters between the NMF and the National Focal +oint"

4" nne7 may be changed through an e7changeof letters between the NMF and the NationalFocal +oint"

." ,he pro)isions of the Mo% shall be interpreted ina manner consistent with this Regulation"

" template for the Mo% is pro)ided in nne7 2"

/rticle 2.2

Strategic eport

1" ,he National Focal +oint shall submit to the NMF an annual report on its implementation of the Norwegian Financial Mechanism 2009-20146hereinafter referred to as the &trategic Report" ,hereporting periods shall follow the calendar year"

2" ,he &trategic Report shall pro)ideA

a: an assessment of the contribution of the Norwegian Financial Mechanism 2009-2014towards the reduction of social and economicdisparities in the eneficiary &tateB

b: an assessment of the contribution of the Norwegian Financial Mechanism 2009-2014towards strengthening of bilateral relationswith NorwayB

c: an assessment of the efficiency and theeffecti)eness of the national management andcontrol structures established in theeneficiary &tateB

d: information on preparation and subse;uentimplementation and progress of the programmes within the programme areas set

out in the implementation framewor6including financial figuresB

e: the results of audits6 re)iews and e)aluations

carried out6 and the plans for audits6 re)iewsand e)aluations for the ne7t reporting periodsB

f: the results of monitoring carried out and the

monitoring plan for the ne7t reporting periodB

g: a summary of actual output and an assessment

of progress towards e7pected outcomes for each programmeB

h: an assessment of the implementation of thecommunication strategy6 in accordance with

the 8nformation and +ublicity Re;uirements innne7 4B and

i: a summary of irregularities detected and themeasures taen as well as a summary of

complaints recei)ed under the complaintmechanism referred to in rticle 11"!"

*" ,he &trategic Report shall form the basis of

discussions at the annual meeting6 and shall besub'ect to appro)al by the NMF at that time" ,heopinion of the Monitoring ommittee in respect of

12





the &trategic Report shall be pro)ided at the annualmeeting by its representati)e"

4" ,he &trategic Report shall be written in $nglishand submitted to the NMF no later than *1 Marcheach year"

." ,he final &trategic Report shall be submittedwithin si7 months of the NMF>s appro)al of thelast final programme report6 but not later than *1(ctober 2016 unless e7tensions under paragraphs 4or . of rticle "14 ha)e been granted"

" ,he template for the &trategic Report is pro)idedin nne7 *"

/rticle 2.3

/nn*al !eeting

1" n annual meeting shall be held between the

NMF and the National Focal +oint" ,he NationalFocal +oint is responsible for organising the

meeting and shall6 when appropriate6 arrange for site )isits"

2" ,he annual meeting shall allow the NMF and

the National Focal +oint to e7amine progressachie)ed o)er the pre)ious reporting period andagree on any necessary measures to be taen"

*" ,he timing of the annual meeting shall be set outin the Mo%" 8f the date is later than *1 ugust6 theeneficiary &tate shall submit a brief update of the&trategic Report two wees prior to the annual

meeting"

4" Representati)es of the udit uthority6ertifying uthority6 Monitoring ommittee6+rogramme (perators and the representati)es of the Norwegian $mbassy in the eneficiary &tate shall

be in)ited to attend the meeting" ,he programme partners may be in)ited as obser)ers"

." ,he National Focal +oint is responsible for

preparing the draft agenda6 which shall reflect themain issues set out in the &trategic Report" ,hedraft agenda shall be sent with the &trategic Report6and the agenda>s final )ersion shall be agreed upon

between the NMF and the National Focal +oint atleast one wee before the meeting"

" /ecisions taen at the annual meeting shall beset out in the agreed minutes" ,he National Focal+oint is responsible for the drafting of the minutes

from the meeting6 summarising the main points andthe action points discussed at the meeting andfollowing the structure of the agenda" ,heseminutes shall be decision oriented6 follow-uporiented and tas oriented"

" ,he appro)ed &trategic Report and the minutesagreed between the NMF and the National Focal+oint shall be published on the website of the National Focal +oint within one month of the

annual meeting" ,he attachment containing theaudit plan shall not be published"

Chapter 3: Bilateral relations

/rticle 3.1

General principles

1" 8n order to contribute to the o)erall ob'ecti)e of strengthening the relations between Norway and theeneficiary &tates6 the preparation and

implementation of the Norwegian FinancialMechanism 2009-2014 shall6 where appropriate6 becarried out in partnership"

2" +artnership may tae the form of donor

partnership programmes andDor donor partnership pro'ects" 8n addition6 within all programmes fundsshall be set aside for networing and e7change of nowledge andDor for the establishment andde)elopment of partnerships and the preparation of

applications for donor partnership pro'ects"

/rticle 3.2

onor partnership progra!!es

1" ,he purpose of donor partnership programmes isto facilitate networing6 e7change6 sharing and

transfer of nowledge6 technology6 e7perience andgood practices between public entities in Norwayand the eneficiary &tates"

2" Norway shall through the Mo% designate one or more donor programme partners for each programme area identified according to paragraph

2b:i): of rticle 2"1" /onor programme partnerscan also be agreed upon by the NMF and the National Focal +oint through an e7change of letters"

*" ,he donor programme partners: shall be in)itedto ad)ise on the preparation and implementation of

the donor partnership programme"

4" Norway and the eneficiary &tates shall in theMo% identify the programme areas where all or part of the funding shall be allocated to donor partnership programmes dedicated e7clusi)ely todonor partnership pro'ects"

." /onor partnership programmes falling under the+rogramme rea ?ilateral Research ooperation@shall be established and implemented in accordancewith this Regulation and nne7 12" ,he following

articles of this Regulation shall not apply to such programmesA

a: rticle *"* ooperation ommittee:B

1*





b: rticle "1 Modes of selection:B

c: rticle "* alls for proposals:B

d: rticle "4 &election ommittee:B

e: rticle ". &election procedures:B

f: rticle "1* +roof of e7penditure:B

g: rticle !"2 d)ance payments:B and

h: rticle !"* 8nterim payments:"

/rticle 3.3

Cooperation Co!!ittee

1" ,he +rogramme (perator of a donor partnership programme shall establish a ooperation

ommittee6 consisting of representati)es from the+rogramme (perator and the donor programme

partners:" ,he ooperation ommittee shall pro)ide ad)ice on the preparation andimplementation of the programme" ,heooperation ommittees shall be chaired by a

representati)e of the +rogramme (perator"Representati)es of the NMF and the NationalFocal +oint shall be in)ited to participate asobser)ers"

2" ll documents presented to and produced by theooperation ommittee shall be in $nglish" ,heommittee meetings shall be conducted in $nglish"

*" ,he tass of the ooperation ommittee includeA

a: ad)ising on selection criteria and the te7ts for calls: for proposalsB

b: ad)ising on possible pro'ect partners in NorwayB

c: re)iewing progress made towards achie)ingthe outcomes: and ob'ecti)es: of the programmeB

d: e7amining the results of the implementation of the programmeB

e: re)iewing the annual programme reportsB and

f: ad)ising the +rogramme (perator of anyre)ision of the programme liely to facilitatethe achie)ement of the programme>s e7pectedoutcomes: and ob'ecti)es:"

/rticle 3.4

onor partnership pro&ects

+ro'ects may be prepared and implemented incooperation with one or more legal entity in Norway" Gith reference to the ob'ecti)es of the Norwegian Financial Mechanism 2009-2014

related to bilateral relations6 the +rogramme(perator shall encourage and facilitate theestablishment of such partnerships"

/rticle 3.$

,*n"s for bilateral relations at national

level

1" ,he eneficiary &tate shall set aside a minimum

of 0".C of the eneficiary &tate>s total allocationfor a fund to facilitate outreach and networing between the +rogramme (perators and programme partners6 or potential pro'ect partners from Norway prior to or during the preparation of a programme proposal and during the implementation of the

programme" ,he eligibility of e7penditures to beco)ered by the fund under this paragraph is detailedin rticle ""

2" ,he National Focal +oint shall manage the use of the funds mentioned in paragraph 1 and report onthe use of them in the &trategic Report" ,he firstdate of eligibility for support under this article shall be the date of the last signature of the Mo% with therespecti)e eneficiary &tate"

*" +ayment claims from the National Focal +ointrelated to this fund shall be submitted with paymentclaims for the technical assistance in accordance

with paragraph ! of rticle "12"

/rticle 3.6

,*n"s for bilateral relations at

progra!!e level

1" ,he +rogramme (perator shall within each programme set aside a share of the programme budget for a fund to facilitateA

a: the search for pro'ect partners from Norway prior to or during the preparation of a pro'ectapplicationB

b: the de)elopment of such partnershipsB and

c: the preparation of an application for a donor

partnership pro'ect"

2" ,he eligibility of e7penditures to be co)ered bythe fund under paragraph 1 is detailed in paragraph

1 of rticle ""*" ,he +rogramme (perator shall within each programme set aside a share of the programme

budget for a fund to facilitate networing6e7change6 sharing and transfer of nowledge6technology6 e7perience and best practices between+ro'ect +romoters and entities in Norway"ontributions from the fund shall be a)ailable toappro)ed pro'ects within the programme to which

the pro'ect belongs6 whether these pro'ects aredonor partnership pro'ects or not6 as an additionalsource of funding6 based on applications submitted by the +ro'ect +romoters" ,he eligibility of e7penditures to be co)ered by the fund under this paragraph is detailed in paragraph * of rticle ""

14





4" ,he combined allocation to the funds referred toin paragraphs 1 and * shall not be less than 1".C of the eligible e7penditure of the programme"

." ,he NMF can in 'ustified cases wai)e there;uirement for either of the funds referred to in paragraphs 1 and *"

" ,he applicable rules on state aid and public procurement shall be complied with" ,he selection procedures and criteria for awarding support fromthese funds6 the grant rate and the ma7imum grantamount shall be suggested in the programme

proposal and set in the programme agreement"

Chapter 4:

anage!ent an" control s#ste!s

/rticle 4.1

General principles of the !anage!ent

an" control s#ste!s

1" ,he eneficiary &tate shall be responsible for themanagement and control of programmes" ,hemanagement and control systems established by theeneficiary &tate for the Norwegian FinancialMechanism 2009-2014 shall ensure the respect of the

principles of economy6 efficiency and effecti)eness"

2" ,he management and control systems shall

pro)ide forA

a: the definition of the functions of the entitiesconcerned in management and control and theallocation of functions within each entityB

b: compliance with the principle of separation of functions between and within such entitiesB

c: procedures for ensuring the correctness andregularity of e7penditureB

d: reliable accounting6 monitoring and financialreporting systems in computerised formB

e: a system of reporting and monitoring where theresponsible entity entrusts the e7ecution of tass to another entityB

f: arrangements for auditing the functioning of the systemsB

g: systems and procedures to ensure an ade;uateaudit trailB and

h: reporting and monitoring procedures for irregularities and for the reco)ery of amountsunduly paid"

*" ,he eneficiary &tate shall comply with the

re;uirements defined by the NMF for submittinginformation electronically"

/rticle 4.2

esignation of national entities

1" ,he eneficiary &tate shall in the Mo% designatethe following entities for the implementation of the

Norwegian Financial Mechanism 2009-2014A

a: a National Focal +ointB

b: a ertifying uthorityB

c: an udit uthorityB and

d: an appropriate national public entityresponsible for the preparation and submissionof irregularities reports"

2" ,he National Focal +oint shall establish aMonitoring ommittee"

*" Norway and the eneficiary &tate may in the

Mo% decide that the National Focal +oint6 inaddition to its tass referred to in rticle 4"*6 taeson the tass of the ertifying uthority under

rticle 4"." &uch arrangements shall ne)erthelessensure the ade;uate functional separation of tassrelated to payments from other tass within the National Focal +oint" 8f such arrangements areagreed upon6 paragraph . shall not apply"

4" Githout pre'udice to rticles 2"1 and ."1*6 the National Focal +oint shall6 in consultation with the NMF6 designate a +rogramme (perator for each programme" ,he +rogramme (perator shall ha)e

strong ties to the sector within which the programme belongs"

." 8n e7ceptional cases6 the NMF may appro)e

that the National Focal +oint taes the role of a+rogramme (perator for one or more programmes"

/rticle 4.3

5ational ,ocal %oint

1" ,he National Focal +oint shall ha)e the o)erallresponsibility for reaching the ob'ecti)es of the Norwegian Financial Mechanism 2009-2014 as

well as for the implementation of the NorwegianFinancial Mechanism 2009-2014 in the eneficiary&tate" 8t shall ser)e as a contact point and beresponsible and accountable for the implementationof the Mo%"

2" ,he National Focal +oint represents theeneficiary &tate in its relations with the NMFregarding the implementation of the NorwegianFinancial Mechanism 2009-2014 in the eneficiary&tate"

*" ,he National Focal +oint shall guide the wor of the Monitoring ommittee" ,he National Focal

+oint shall collect from the +rogramme (perator6and pro)ide the Monitoring ommittee with6 the

documents re;uired to permit the implementation

1.





of the programmes to be monitored in light of their specific e7pected outcomes: and ob'ecti)es:"

4" Gith the aim of highlighting the role of the Norwegian Financial Mechanism 2009-2014 and toensure that assistance from the mechanism istransparent6 the National Focal +oint shall pro)ide

information on the e7istence in the eneficiary&tate of the Norwegian Financial Mechanism 2009-

20146 its ob'ecti)es including cooperation with Norwegian entities:6 implementation and o)erallimpact" ,his will be pro)ided in accordance withthe 8nformation and +ublicity Re;uirements innne7 46 in particular through the followingmeasuresA

a: a communication strategy for the NorwegianFinancial Mechanism 2009-2014B

b: at least three ma'or information acti)ities onthe implementation of the Norwegian FinancialMechanism 2009-20146 such as a seminar or aconference with staeholders6 a press

conference or press e)ent6 including alaunching e)ent and a closing e)ent for the Norwegian Financial Mechanism 2009-2014Band

c: a dedicated website on the NorwegianFinancial Mechanisms 2009-2014 in thelanguages: of the eneficiary &tate and in$nglish6 with information on all programmes6 bilateral relations with Norway related to the

Norwegian Financial Mechanism 2009-20146

an o)er)iew of calls for proposals6 contactinformation and rele)ant documents"

." ,he National Focal +oint shall ensure that the+rogramme (perators fulfil their information and publicity obligations in accordance with thisRegulation and the 8nformation and +ublicityRe;uirements in nne7 4"

" ,he National Focal +oint shall ensure that the programmes are implemented in accordance withthis Regulation and monitor the progress and;uality of their implementation" ,o this end6 the

National Focal +oint may tae the action it deems

necessary and compatible with this Regulation6including to )erify the ;uality and content of anydocuments pro)ided to the NMF through the National Focal +oint and re;uest the necessarymodification to such documents"

" ,he National Focal +oint shall carry out regular monitoring of the programmes with regards to their progress towards the programme outcomes: andob'ecti)es: according to agreed indicators and

financial re;uirements specified for the programme"Results of the monitoring shall be reported in the&trategic Report"

!" ,he role of the National Focal +oint may befurther specified in the Mo%"

/rticle 4.4

onitoring Co!!ittee

1" ,he National Focal +oint shall establish aMonitoring ommittee for the Norwegian Financial

Mechanism 2009-2014 within si7 months from thedate of the signing of the Mo%"

2" ,he Monitoring ommittee shall be chaired by a

representati)e of the National Focal +oint" 8tscomposition shall include representati)es fromrele)ant ministries local and regional authorities6ci)il society6 the social partners and6 whererele)ant6 the pri)ate sector"

*" ,he NMF shall be in)ited to participate in themeetings of the Monitoring ommittee as anobser)er"

4" ,he Monitoring ommittee shall satisfy itself asto the effecti)eness and ;uality of theimplementation of the Norwegian FinancialMechanism 2009-20146 in accordance with thefollowing pro)isionsA

a: it shall periodically re)iew progress madetowards achie)ing the ob'ecti)es of the Norwegian Financial Mechanism 2009-2014 on

the basis of documents submitted by the National Focal +oint and the +rogramme(peratorsB

b: it shall e7amine the results of implementation6

particularly the achie)ement of the outputs aswell as the progress towards e7pectedoutcomes: and ob'ecti)es: set for programmes6 and of the e)aluations referred toin hapter 9B

c: it shall assess and prepare an opinion on the&trategic ReportsB

d: it may propose to the National Focal +oint anyre)ision or e7amination of the implementationframewor in nne7 to the Mo% liely tomae possible the attainment of the Norwegian

Financial Mechanism 2009-2014 ob'ecti)es

referred to in rticle 1"2 or to impro)e itsmanagement6 including its financialmanagement"

/rticle 4.$

Certif#ing /*thorit#

1" ,he ertifying uthority shall be responsible in particular forA

a: submitting to the NMF certified interimfinancial reports and final programme reportsreferred to in rticles !"* and ."126

respecti)ely6 certifying thatA

1





i: the summary of eligible e7pendituresubmitted by the +rogramme (perator isin full conformity with the supportingdocumentsB

ii: the supporting documents ha)e beene7amined and found to be authentic6

correct and accurateB

iii: the summary of eligible e7penditure is based on )erifiable accounting which isin compliance with generally acceptedaccounting principles and methodsB

i): the summary of eligible e7penditurefalls within eligible e7penditure under this RegulationB

): the summary of e7penditure is incurredas part of the implementation of the+rogramme in accordance with the

programme agreementB

)i: sufficient audit trail e7istsB and

)ii: co-financing committed to the programme has been paid"

b: submitting to the NMF a forecast of liely payment applications as referred to in rticle!".B

c: declaring to the NMF any interest earned asreferred to in rticle !"B

d: taing account for certification purposes of the

results of all audits carried out by or under theresponsibility of the udit uthorityB

e: maintaining accounting records in

computerised form of e7penditure declared tothe NMFB

f: ensuring that payments are transferred to the

+rogramme (perators according to paragraph2 of rticle !"1B and

g: ensuring that amounts reco)ered and amounts

withdrawn following cancellation of all or partof the financial contribution for a programmeor pro'ect are reimbursed to the NMF prior to

the closure of the programme"

2" &ub'ect to contrary pro)ision of the national lawof the eneficiary &tate6 the ertifying uthorityshall ensure the establishment and maintenance of aseparate interest-bearing ban account dedicated tothe Norwegian Financial Mechanism 2009-2014"

/rticle 4.6

/*"it /*thorit#

1" ,he udit uthority shall be responsible in

particular forA

a: ensuring that audits are carried out to )erify theeffecti)e functioning of the management and

control system at the le)el of the eneficiary&tateB

b: ensuring that at least one audit is carried out of each programme to )erify the effecti)efunctioning of its management and controlsystemB

c: ensuring that audits are carried out on pro'ectson the basis of an appropriate sample to )erifye7penditure declaredB

d: presenting to the NMF within nine months of the appro)al of the programme an auditstrategy6 the method to be used6 the samplingmethod for audits on pro'ects and theindicati)e planning of audits to ensure that

audits are spread e)enly throughout the programming periodB

e: by *1 /ecember each year from 2012 to 201A

i: submitting to the NMF an annual auditreport setting out the findings of the auditscarried out during the pre)ious 12 month- period ending on *0 June of the year

concerned in accordance with the auditstrategy of the programme and reportingany shortcomings found in the systems for the management and control of the programme" ,he first report to be

submitted by *1 /ecember 2012 shallco)er the period up to *0 June 2012" ,heinformation concerning the audits carried

out after 1 July 201 shall be included inthe final audit report supporting theclosure declaration referred to in

subparagraph f:B

ii: issuing an opinion to the NMF6 on the basis of the controls and audits that ha)e been carried out under its responsibility6 as

to whether the management and controlsystem functions effecti)ely6 so as to pro)ide a reasonable assurance thatstatements of actual e7penditure incurred presented to the NMF are correct and as

a conse;uence reasonable assurance that

the underlying transactions are legal andregularB

f: submitting to the NMF at the latest by *1

/ecember 201 a closure declaration assessingthe )alidity of the application for payment of the final balance claimed in the final programme report"

2" Ghere the udit uthority chooses not to carryout audits according to paragraphs 1a: through c:6it shall appoint an independent and certified auditor to perform these tass"

*" ,he udit uthority shall ensure that the auditcomplies with internationally accepted auditstandards"

1





4" ,he NMF shall pro)ide its comments on theaudit strategy presented under paragraph 1d: nolater than three months from receipt thereof" 8n theabsence of comments within this period it shall beconsidered to ha)e been accepted"

." &hould the NMF decide to grant e7tensions in

accordance with paragraphs 4 or . of rticle "146 itmay modify the dates referred to in this article"

/rticle 4.'

esponsibilities of the %rogra!!e

perator

1" ,he +rogramme (perator shall be responsible for preparing and implementing the programme inaccordance with the principles of economy6efficiency and effecti)eness and in particular forA

a: ensuring that pro'ects contribute to the o)erallob'ecti)es of the Norwegian FinancialMechanism 2009-2014 and the specific programme outcomes: and ob'ecti)es: andthat they comply with this Regulation6 the

programme agreement as well as applicablenational and $uropean %nion law in allimplementation phasesB

b: collecting applications6 selecting pro'ects to befunded and signing pro'ect contracts for each pro'ectB

c: )erifying the pro'ect outputs and that the

e7penditure declared by the +ro'ects +romotershas actually been incurred and complies withthis Regulation6 the programme agreement aswell as applicable national and $uropean%nion lawB

d: ensuring that payments of the pro'ect grant aremade in a timely mannerB

e: ensuring the ;uality of the implementation of the programme and )erifying the pro'ects> progress towards e7pected outcomes6 inter alia

through re)iews andDor on-the-spot )erification

of pro'ects carried out on a sample basisB

f: conducting annual monitoring of a sample of pro'ects6 selected based on ris assessment and

including random samplesB

g: ensuring that the financial contribution is usede7clusi)ely for the purpose of the programme

and its pro'ects and according to the programme agreement and that all assetsforming part of the programme are used onlyfor such purposes as pro)ided for in the programme agreementB

h: ensuring that there is a system for recordingand storing in computerised form accountingrecords for each pro'ect under the programmeand that the data on implementation necessary

for financial management6 reporting6monitoring6 )erifications6 audits and e)aluationare collectedB

i: establishing an organisational structure of the+rogramme (perator that ensuresindependence and functional separation of the

di)ision responsible for )erification of payment claims from other di)isions

responsible for the implementation of the programmeB

': sub'ect to contrary pro)isions of the national

law of the eneficiary &tate6 establishing andmaintaining a separate interest-bearing ban account dedicated to the funds intended for regrantingB

: ensuring that +ro'ect +romoters maintain either a separate accounting system or an ade;uateaccounting code for all transactions relating tothe pro'ect without pre'udice to nationalaccounting rulesB

l: ensuring transparency and a)ailability of documents in accordance with there;uirements of rticle !"!B

m: ensuring that the ertifying uthority recei)esall necessary information on the proceduresand )erifications carried out in relation to

e7penditure for the purpose of certificationB

n: drawing up and submitting the interimfinancial reports6 the annual programme report6

the final programme report and reports oninterests earned in accordance with rticles."116 ."126 !"*6 !"4 and !"B

o: submitting to the ertifying uthority a

forecast of liely payment applicationsnecessary for the ertifying uthority to fulfilits obligations in accordance with rticle !".B

p: ensuring entry of pro'ect-specific statisticaldata to maintain the reporting database inaccordance with the +rogramme (perator>sManual nne7 9:B

;: ensuring that the NMF and the National Focal+oint is upon re;uest6 and within reasonabletime6 pro)ided with all documents andinformation related to the implementation of the programme and its pro'ectsB

r: ensuring that the +ro'ect +romoters are fullycommitted and able to implement their pro'ectsB

s: ensuring that all necessary and appropriatemeasures are taen to pre)ent6 detect andnullify any cases of suspected or actual

irregularities6 that they are in)estigated

promptly and efficiently and properly reportedand remedied6 including maing any financialcorrections that may be appropriateB

1!





t: ensuring that all rele)ant local6 national and$uropean %nion legislation including6 but notlimited to6 legislation on the en)ironment6 public procurement and state aid: are compliedwithB and

u: complying with any other obligations

stipulated in the programme agreement"

2" ,he +rogramme (perator shall comply with the8nformation and +ublicity Re;uirements in nne74" 8t shall pro)ide information on the e7istence6 theob'ecti)es6 and the implementation of the

programme6 as well as on the cooperation with Norwegian entities6 in particular through thefollowing measuresA

a: a communication plan for the programmeB

b: at least two ma'or information acti)ities on progress in the programme and its pro'ects6

such as a seminar or a conference withstaeholders6 a press conference or press e)entBand

c: a dedicated website on the programme in the

languages: of the eneficiary &tate and in$nglish6 with information on all calls for proposals and all supported pro'ects6 bilateralrelations between Norway and the eneficiary&tate related to the programme6 contact

information and rele)ant documents"

*" ,he +rogramme (perator shall ensure that the+ro'ect +romoters fulfil their information and

publicity obligations in accordance with the8nformation and +ublicity Re;uirements in nne74"

4" ,he +rogramme (perator shall comply with the

re;uirements defined by the NMF for submittinginformation electronically"

/rticle 4.+

Setting *p of !anage!ent an" control

s#ste!s

1" efore the appro)al of the first programme by

the NMF or at the latest within twel)e months of the date of the last signature of the Mo%6 the

National Focal +oint shall submit to the NMF adetailed description of the management and controlsystems6 co)ering in particular the organisation and procedures ofA

a: the National Focal +oint6 the ertifyinguthority and any other national entitiesin)ol)ed in the implementation of the Norwegian Financial Mechanism 2009-2014according to the Mo%B

b: the udit uthority and any other entitiescarrying out audits under its responsibility"

2" Githin si7 months from the submission of thefirst interim financial report6 the National Focal+oint shall submit to the NMF a detaileddescription of the management and control systemsof the +rogramme (perator and their functions6

co)ering in particularA

a: the system for )erification of payment claimsB

b: the audit and monitoring systemsB

c: the system for pre)enting6 mitigating6detecting6 reporting on and remedyingirregularitiesB and

d: the system established to maintain an audit trailof all supported acti)ities"

*" ,he detailed descriptions referred to in paragraphs 1 and 2 shall be accompanied by a

report and an opinion confirming that theimplementation system of the eneficiary &tate andthe +rogramme (perator complies with thisRegulation and generally accepted accounting principles" ,he report shall assess the proportionality of the management and control

systems> re;uirements in relation to theeffecti)eness of achie)ing the ob'ecti)es of the programmes"

4" ,he report and the opinion referred to in paragraph * shall be drawn up by the udituthority" Ghere the udit uthority chooses notto carry out audits itself6 it shall appoint anindependent and certified auditor to perform these

tass"

." +rior to disbursing the first payment to any programme6 the NMF shall determine whether theeneficiary &tate has complied with paragraph 1 of

this article"

Chapter $:

%rogra!!es

/rticle $.1

%reparation of progra!!es

1" ,he Norwegian Financial Mechanism 2009-2014is implemented in the eneficiary &tates through programmes" Gith the e7ceptions pro)ided in paragraph 26 a programme shall fall under not morethan one programme area identified in the Mo%6

sa)e as otherwise agreed between Norway and theeneficiary &tate"

2" 8n eneficiary &tates recei)ing *C or less of the

total financial contribution from the Norwegian

Financial Mechanism 2009-20146 programmes canfall under more than one programme area"

19





*" Norway and the eneficiary &tates may consulton possible and specific programmes before aformal programme proposal is submitted to the NMF"

4" (n the basis of the appro)ed Mo% and within the programme areas identified therein6 the +rogramme

(perator shall6 through the National Focal +oint6submit a formal proposal for each programme to

the NMF within eight months of the date of thedesignation of the +rogramme (perator accordingto rticle 4"26 but no later than *1 January 201*",he FM( may be consulted for ad)ice during the preparation of the programme proposal"

." ,he programme proposal shall be in accordancewith the +rogramme (perators> Manual nne7 9:and limited to the ob'ecti)e and the e7pectedoutcomes of the rele)ant programme area as

outlined in nne7 1"

/rticle $.2

%rogra!!e proposals

1" ,he purpose of a programme proposal is todescribeA

a: the substanti)e and operati)e competence of

the programme operatorB

b: the main features of the programmeB

c: the programme>s contribution to the o)erallob'ecti)e and e7pected outcomes of the

rele)ant programme areaB and

d: the details in respect of the implementation of the programme6 including financial planning aswell as ris assessment and mitigation"

2" +rogramme proposals shall be in the format andcontain the information re;uired in the template for programme proposals attachment to nne7 9:"

/rticle $.3

/ppraisal of an" "ecision on a

progra!!e

1" ,he NMF shall appraise the programme proposals in order to determine whether the programme contributes to the ob'ecti)es of the Norwegian Financial Mechanism 2009-20146 andcomplies with the legal framewor of the Norwegian Financial Mechanism 2009-20146

national and $uropean %nion law"

2" ,he NMF shall mae a decision on each programme no later than four months following the

receipt of all rele)ant documents and necessaryinformation"

*" ,he NMF may decide toA

a: appro)e the programme without conditionsB

b: appro)e the programme with conditionsB

c: appro)e the programme in a modified formB or

d: re'ect the programme"

4" ,he NMF shall not re'ect a programme withoutgi)ing the +rogramme (perator an opportunity toremedy the deficiencies of the programme"

." &hould a programme be re'ected by the NMF6the +rogramme (perator may6 through the NationalFocal +oint6 resubmit once a re)ised programme proposal within four months from the date of there'ection" ,he National Focal +oint may6 as an

alternati)e and within the same deadline6 proposethat the funds intended for the re'ected programme be used for another programme6 pro)ided that suchreallocation is compatible with the Mo%" 8f therecei)ing programme has already been appro)ed6such reallocation of funds shall comply with

paragraph ! of rticle ."9"

/rticle $.4

Grant rates an" !ini!*! si8e of

pro&ect grants

1" ,he contribution from the Norwegian FinancialMechanism 2009-2014 shall not e7ceed !.C of eligible e7penditure of the programme6 e7cept forA

a: donor partnership programmesB

b: programmes operated by the FM(6 inter-

go)ernmental organisations or Norwegianentities in accordance with rticle ."1*B and

c: other programmes of special interest"

where the NMF may set a higher programmegrant rate"

2" ,he ma7imum pro'ect grant rate shall be proposed in the programme proposal anddetermined in the programme agreement" 8t shalltae into account the need to ensure +ro'ect

+romoters> commitment and ownership6 as well assustainability of the pro'ect" Ghen proposing the pro'ect grant rate6 the +rogramme (perator shall

further tae into account any economic benefit6 e"g"cost sa)ings or increased profit6 which is a resultfrom recei)ing a financial contribution" $conomic

benefits shall be used in a manner which supportsthe ob'ecti)es of the pro'ect" ,he applicable ruleson state aid6 procedural and substanti)e6 shall becomplied with"

*" 8n case of support to N3(s and social partnersthe pro'ect grant rate may be up to 90C of eligiblee7penditure of the pro'ect and up to 100C for scholarships"

4" o-financing under paragraphs 1 to * shall be inthe form of cash6 including electronic transfers"

20





." 8n case of pro'ects implemented by N3(s or social partners6 in-ind contribution in the form of )oluntary wor may constitute up to .0C of the co-financing re;uired by the programme for the pro'ect" ,he +rogramme (perator shall in the

programme proposal specify the appropriate unit

prices for )oluntary wor which shall be inaccordance with salary normally paid for such wor in the eneficiary &tate6 including the re;uiredsocial security contributions" ,he prices may )arydepending on region in which the wor is

performed or the type of )oluntary wor6 and may be ad'usted during the implementation of the+rogramme in order to tae into account changes insalaries"

" 8n case of pro'ects under donor partnership programmes falling under the programme area?ilateral Research ooperation@6 in-indcontribution in the form of labour may constitute upto 100C of the co-financing re;uired for the

pro'ect" ,he +rogramme (perator shall in the programme proposal specify the appropriate unit prices for the labour which shall be in accordancewith salary normally paid for such labour in theeneficiary &tate6 including the re;uired socialsecurity contributions" ,he prices may )ary

depending on region in which the labour is performed or the type of labour6 and may bead'usted during the implementation of the+rogramme in order to tae into account changes insalaries"

" ,he amount of grant assistance applied for withina programme shall normally not be less than I160006000 and6 without pre'udice to paragraph !6 inno cases less than I 106000"

!" ,he +rogramme (perator may propose a lower threshold in the following casesA

a: programmes under the programme areas?3lobal Fund for /ecent Gor and ,ripartite/ialogue@6B

b: small grants referred to in rticle ."6 funds for bilateral relations referred to in rticles *". and

*"B andc: scholarships and research pro'ects"

/rticle $.$

Selection of pre"efine" pro&ects

1" 8n addition to any pre-defined pro'ect identifiedin the Mo%6 the +rogramme (perator may ine7ceptional cases propose any pre-defined pro'ectsto be implemented within programmes"

2" ,he following information on the pre-defined pro'ects shall be pro)ided as an nne7 to the

programme proposalA

a: bacground and 'ustification for the pro'ectincluding reference to rele)ant national prioritiesB

b: ob'ecti)e and e7pected outcomes: of the pro'ectB

c: information on the +ro'ect +romoterB

d: the results of feasibility studies whenapplicableB

e: a timetable for implementing the pro'ectB and

f: the financing plan showing the total plannedfinancial resources and the plannedcontribution from the Norwegian FinancialMechanism 2009-2014"

*" ,he +rogramme (perator shall6 prior to signing a pro'ect contract for a pre-defined pro'ect6 appraisethe pro'ect in order to )erify its ;uality and

contribution to the ob'ecti)es of the +rogramme aswell as compliance with $% and national

legislation"

/rticle $.6

S!all grant sche!es ithin a

progra!!e

1" ,he +rogramme (perator may in the programme proposal suggest the establishment of one or moresmall grant schemes within a programme"

2" ,he combined allocation to the small grant

schemes: shall not be more than 20 C of theeligible e7penditure of the programme"

*" ,he amount of grant assistance applied for withina small grant scheme shall not be less than I .6000and not more than I 2.06000" &cholarships tonatural persons may be for less than I .6000"

4" ,he small grant schemes: shall normally bemanaged and implemented by the +rogramme(perator" ,he +rogramme (perator may sub-

contract to one or more public or pri)ate entities6commercial or non-commercial6 as well as non-go)ernmental organisations6 the management and

implementation of small grant schemes" ,he sub-contracted entity shall ha)e strong ties to the sector within which the programme belongs" &uch sub-

contracting shall be without pre'udice to theresponsibility of the +rogramme (perator for the programme" ,he management costs of a small grantscheme shall be counted as part of the managementcosts of the +rogramme (perator in respect of theceiling referred to in paragraph 2 of rticle "10"

." 8n cases where the +rogramme (perator sub-contracts the management and implementation of asmall grant scheme6 the selection of the small grant

scheme operator by the +rogramme (perator shall be made in compliance with public procurementrules" ,he small grant scheme operator shall

21





pro)ide guarantees of its sol)ency and competencein the domain concerned as well as inadministrati)e and financial management"

" ,he pro)isions of this Regulation applicable tothe +rogramme (perator shall be applicablemutatis mutandis to the small grant scheme

operator6 with the e7ception that reports of the latter shall be incorporated into the reporting structures of

the +rogramme (perator"

/rticle $.'

%rogra!!e agree!ent

1" For each appro)ed programme a programmeagreement shall be concluded between the NMFand the National Focal +oint"

2" ,he programme agreement sets out the terms andconditions of the operation of the programme aswell as the roles and responsibilities of the parties"

*" ,he programme agreement template is pro)idedin nne7 10"

/rticle $.+

%rogra!!e i!ple!entation agree!ent

1" For each appro)ed programme a programmeimplementation agreement shall be concluded between the National Focal +oint and the+rogramme (perator"

2" 8n cases where a programme implementationagreement cannot6 due to pro)isions in the nationallegislation6 be made between the National Focal

+oint and the +rogramme (perator6 the eneficiary&tate may instead issue a legislati)e or administrati)e act of similar effect and content"

*" ,he programme implementation agreement shallset out the terms and conditions of the operation of the programme as well as the roles andresponsibilities of the parties" 8t shall in particular include pro)isions that ensure that the +rogramme(perator undertaes to comply fully with the

pro)isions of the legal framewor of the NorwegianFinancial Mechanism 2009-2014 referred to inrticle 1"4 that are rele)ant for the operation of the programme6 including any obligation that are )alidafter the programme has been completed" ,he programme implementation agreement shall

contain an e7plicit reference to the programmeagreement and this Regulation and6 as a minimum6 pro)isions on the followingA

a: obligations regarding reporting thatenables the National Focal +oint to complywith its reporting obligations to the NMFB

b: obligations related to the +rogramme(perator>s reporting obligations to the NMF

and the ertifying uthority and its duty to pro)ide documents upon re;uestB

c: the ma7imum amount of the programme grant and its breadown betweenthe items listed in rticle "1B

d: the eligibility of e7pendituresB

e: the first and final dates of eligibility of e7pendituresB

f: modifications of the programmeB

g: ensuring that the access re;uested inrelation to monitoring6 audits and e)aluationsis pro)ided without delayB

h: ensuring that obligations regarding publicity are complied withB

i: the right of the National Focal +oint to

suspend payments and re;uest reimbursementfrom the +rogramme (perator in case decisionon such actions is taen by the NMF or the National Focal +ointB

': that termination of the +rogrammegreement referred to in rticle ." may resultin a termination of the programmeimplementation agreementB and

: a reference to programme partnerships6 if rele)ant"

4" ,he National Focal +oint shall warrant that theobligations of the +rogramme (perator under the

programme implementation agreement are )alidand enforceable under the applicable national lawof the eneficiary &tate"

." ,he National Focal +oint shall forward a draft programme implementation agreement to the NMF for re)iew" ,he NMF shall6 prior to the

signing of the programme agreement referred to inrticle ."6 confirm that the programmeimplementation agreement complies with theminimum standards set in paragraph * of thisarticle"

" onfirmation according to paragraph . is strictly

limited to declaring that the obligation under paragraph * is met and shall neither be construed toimply any opinion or guarantees on the

completeness6 )alidity or enforceability of the programme implementation agreement6 nor resultin any responsibility by the NMF for anydeficiencies6 incompleteness or inaccuracies of the programme implementation agreement"

/rticle $.9

o"ification of progra!!es

1. Unless otherwise explicitly stipulatedin the programme agreement, any

22





modifcation o the programme is subjectto prior approval by the NM!.

". #rogrammes may be modifed, inparticular in one or more o the ollowingcases$

a: in order to respond to unforeseen e)ents in theeneficiary &tatesB

b: in order to tae into account the conclusions of

the re)iew of the implementation framewor atan annual meetingB

c: in order to tae into account conclusions from

an e)aluation referred to in hapter 9B

d: when changes are necessary to enhance theimpact of the programmeB or

e: in order to mitigate riss andDor implementation difficulties"

%. &he #rogramme 'perator shalldescribe and justiy the modifcation, aswell as the li(ely impact on the fnancialfgures, ris( assessment, outputs andoutcomes o the programme. &heNational ocal #oint shall provide itsprovisional approval to the modifcationproposal.

). &he NM! shall, in consultation withthe National ocal #oint, assess whetherthe proposed modifcation amounts to asubstantial change which would re*uire a

screening by the +uropean ommissionaccording to !rticle -.1. ! substantialchange is assumed to have beenproposed when it a/ects the overallobjective or the outcome o theprogramme or when the change con0ictswith recommendations or commentsprovided by the +uropean ommission aspart o its screening o the programmeproposal.

-. &he NM! shall assess the proposedmodifcation and provide a ormal

response no later than two monthsfollowing the receipt of all rele)ant documents andnecessary information"

. !ll modifcations agreed between theNM! and the National ocal #oint shallormally be noted at the annual meeting.

2. &he modifcation shall be ormalisedthrough an amendment o theprogramme agreement reerred to in!rticle -.2. &he National ocal #oint shallinorm the Monitoring ommittee o themodifcation.

3. 4hould a modifcation o a programmeresult in a reduction o the programme

grant, the National Focal +oint may allocate the

amount that becomes a)ailable to other appro)ed

programmes within the eneficiary &tate" prior appro)al of the NMF and of the +rogramme(perator of the programme recei)ing the fundsshall be re;uired" ,he modification shall be in

compliance with the Mo%" &uch allocation must becompleted and formalised no later than *1 (ctober

2014" ,he +rogramme (perator of the programmerecei)ing the funds shall allocate the funds inaccordance with rticle "9"

/rticle $.10

Screening b# the (*ropean Co!!ission

1" ,he $uropean ommission shall screen all programmes and any substantial changes: in a programme for their compatibility with the

$uropean %nion>s ob'ecti)es" ,he FM( willforward the rele)ant documentation to the$uropean ommission"

2" ,he results of the screening6 as well as anycomments issued by the $uropean ommission preceding the conclusion of the screening6 shall betaen into account by the NMF"

/rticle $.11

/nn*al progra!!e report

1" ,he +rogramme (perator shall submit an annual

programme report as described in nne7 9 to the NMF and the National Focal +oint" ,he purpose

of the report is to describeA

a: the progress in implementing the programmecompared to the plans set out in the programme

agreement andDor the preceding annual programme report and in achie)ing thee7pected outputsB

b: the programme>s contribution to the o)erallob'ecti)e and outcomes of the programme areaB

c: specific details of challenges to

implementation and plans to o)ercome such

challenges6 including any changes to ris mitigation measures and financial plansB and

d: a summary listing of irregularities and of themeasures taen to remedy these"

2" ,he reporting periods for the annual programme

reports shall be the calendar year" ,he report shall be submitted not later than 1. February each year",he first annual reports for programmes appro)ed by the NMF in the first half of the year shall besubmitted in the following yearB first annual reportsfrom other programme shall be submitted in the

second year following their appro)al"

*" ,he NMF shall inform the National Focal +ointand the +rogramme (perator of its opinion on the

2*





annual programme report within two months of thedate of receipt" 8f the NMF does not respondwithin the time limit laid down6 the report shall beconsidered to ha)e been accepted"

/rticle $.12,inal progra!!e report

1" ,he +rogramme (perator shall6 through the

ertifying uthority6 submit a final programmereport to the NMF and the National Focal +oint asdescribed in nne7 9" ,he purpose of the report isto pro)ideA

a: an o)erall assessment of the implementation of the programme6 including comparison to the plans set out in the programme proposal andany lessons learnedB

b: an assessment of the programme>s contributionto the o)erall ob'ecti)e and outcomes of the programme area upon completion of all pro'ects and the closure of the programmeB

c: o)er)iew of irregularities and measures taento remedy theseB

d: specific details in respect of meeting andDor adapting financial plansB and

e: financial information6 including a calculationof the final balance referred to in rticle !"4"

2" ,he final programme report shall be forwarded to

the NMF by the ertifying uthority6 which shallcertify the financial anne7 to the report inaccordance with rticle 4".6 within three months of the completion of the last pro'ect under the programme6 and not later than *0 pril 2016unless e7tensions under paragraphs 4 or . of rticle

"14 ha)e been granted"

*" ,he NMF shall re)iew the final programmereport in order to determine whether it fulfils its

formal and substanti)e re;uirements" ,he NMFshall appro)e the report no later than two monthsfollowing the receipt of the report and all rele)antdocuments and necessary information"

/rticle $.13

%rogra!!es operate" b# the ,

intergovern!ental organisations or

5oregian entities

1" ,he National Focal +oint6 with the consent of the NMF6 may entrust the operations of a programmeto the FM(6 inter-go)ernmental organisations or Norwegian entities" 8n such cases6 the pro)isions of this Regulation related to the implementation of the programme6 its preparation6 eligibility of

applicants6 application and appraisal process6 programme agreement6 disbursements6 monitoring6audits6 irregularities6 suspension of payments and

financial corrections6 reporting6 and publicity6 donot apply" ,he entrusted +rogramme (perator shallapply specific rules in this regard6 to ensureimplementation in line with the principles stated inrticle 1""

2" Ghen the FM( acts as a +rogramme (perator6

the implementation of the programme shallnormally be performed by a fund operator6

appointed and contracted by the FM(" ,he rolesand responsibilities of the FM( and the fundoperator shall be go)erned by an implementationagreement between the FM( and the fund operator",he implementation agreement shall contain pro)isions on reporting to the National Focal +oint"

*" Ghen the operation of a programme has beenentrusted to an inter-go)ernmental organisation or a Norwegian entity6 its roles and responsibilities shall

be go)erned by a programme implementation

agreement between the NMF and the +rogramme(perator"

4" ,he funds for regranting within a programmereferred to in this article as well as the costs of the+rogramme (perator andDor the fund operator shall be co)ered by the financial contribution to therespecti)e eneficiary &tate"

." Ghen a programme is being operated by theFM(6 an inter-go)ernmental organisation or a Norwegian entity according to this article6 theeneficiary &tate bears no responsibility for the

implementation of the programme6 financially or

otherwise6 e7cept as pro)ided for in paragraph 4"

Chapter 6:

Selection of pro&ects

/rticle 6.1

o"es of selection

1" +ro'ects shall be selected through calls for

proposals organised in accordance with thishapter"

2" y way of derogation from paragraph 16 pre-

defined pro'ects may be identified without a call for proposals" &uch pro'ects shall be identified inaccordance with paragraph 2b:): of rticle 2"1and rticle ."." 8nformation on such pro'ects shall be pro)ided in the programme proposal inaccordance with rticle ."."

/rticle 6.2

(ligibilit# of applicants

1" ny entity6 public or pri)ate6 commercial or non-

commercial and non-go)ernmental organisations6

24





established as a legal person in the respecti)eeneficiary &tate as well as inter-go)ernmentalorganisations operating in the eneficiary &tate areconsidered eligible applicants of pro'ects"

2" Natural persons who are legal residents of Norway or of the respecti)e eneficiary &tate are

eligible applicants under scholarship programmesand scholarship components under any programme"

*" ,he +rogramme (perator6 taing into account theo)erall ob'ecti)es of the Norwegian FinancialMechanism 2009-2014 and of the programme6 and

with the aim of ensuring targeted implementation6may propose limitations to the eligibility of applicants" &uch limitations6 if appro)ed by the NMF6 shall be e7plicitly stipulated in the programme agreement"

/rticle 6.3Calls for proposals

1" alls for proposals shall be organised by the+rogramme (perator" ,heir content6 form and

publication shall be in accordance with the programme agreement and this Regulation" ,he+rogramme (perator shall in its programme proposal e7plain the methods of publicity6 theestimated timing and amounts of the calls"

2" alls for proposals shall as a minimum complywith the following"

a: they shall be widely publicised with a )iew toreach all potential applicants" ,he national6regional and local media6 as well as specialised publications and web based tools shall be usedas rele)ant" ny limitation on the publication

shall be 'ustified in the programme proposalB

b: they shall include a clear and reasonabledeadline6 which shall be at least two months

from the date of the publication of theannouncement6 and an address for submission",he announcement shall specify the hour whenthe call e7pires6 whether the deadline refers to a post stamp or actual deli)ery time to the office

of the +rogramme (perator and the permissiblemethods: of deli)ery" ,he announcement mustspecify whether one or more copies of theapplication are re;uiredB

c: they shall clearly specify the eligible applicantsand any restrictions6 limitations or e7clusionsthat they may be sub'ect toB

d: they shall contain detailed selection criteria aswell as a scoring chartB

e: they shall clearly address what ind of

acti)ities and e7penditure are eligibleB

f: they shall pro)ide a description of the selection process and the decision-maing structureB

g: they shall pro)ide a clear reference or a lin tothe application form and user guideB

h: they shall clearly state the total amounta)ailable through the call6 as well as theminimum and ma7imum amount of each pro'ect grantB

i: they shall contain pro)isions on the paymentmodelB

': they shall clearly state the co-financingre;uirementsB

: they shall pro)ide clear references to further

information6 including a reference to thisRegulation and the guidelines adopted by the NMF as well as other documentation prepared by the +rogramme (perator that is rele)ant tothe callB and

l: they shall pro)ide contact information for ;ueries and the timeframe for answering such;ueries"

*" ,he call shall be published on the website of the+rogramme (perator in the national languages:and in $nglish"

4" ,he NMF and the National Focal +oint shall beinformed of all calls for proposals at least twowees in ad)ance of their announcement6 and6 atthe same time6 be pro)ided with an $nglishtranslation of the te7t of each call"

/rticle 6.4

Selection Co!!ittee

1" ,he +rogramme (perator shall establish a&election ommittee that shall recommend the pro'ects to be funded within the programme" ,he&election ommittee shall consist of at least three persons possessing the rele)ant e7pertise" t leastone of them shall be e7ternal to the +rogramme

(perator"

2" ,he NMF and the National Focal +oint shall bein)ited to participate in the meetings of the

&election ommittee as obser)ers" 8n donor partnership programmes the donor programme partner shall be in)ited to participate in themeetings of the &election ommittee in an ad)isorycapacity"

*" ,he +rogramme (perator shall pro)ideinterpretation assistance for &election ommitteemeetings when necessary" ,he &election ommitteeshall eep minutes of its meetings" ,he NMF shall

be pro)ided with a summary of the minutes in$nglish no later than two wees after the meeting"

4" 8n donor partnership programmes dedicated

e7clusi)ely to donor partnership pro'ects6 the&election ommittee shall consist of an e;ualnumber of members appointed by the +rogramme

2.





(perator and the donor programme partner" ,heworing language of such &election ommittees6 aswell as the language of pro'ect applications andother documents rele)ant to its wor6 shall be$nglish"

/rticle 6.$

Selection proce"*res

1" ,he +rogramme (perator shall re)iew theapplications for compliance with administrati)e andeligibility criteria" pplicants whose applicationsare re'ected at this stage shall be informed andgi)en a reasonable time to appeal that decision"

2" $ach application that meets the administrati)eand eligibility criteria shall be re)iewed by twoindependent and impartial e7perts appointed by the+rogramme (perator" 8n donor partnership

programmes dedicated e7clusi)ely to donor partnership pro'ects6 one e7pert shall be appointed by the +rogramme (perator and one appointed bythe donor programme partner" osts related toe7perts shall be co)ered from the management costof the +rogramme (perator"

*" ,he e7perts shall separately score the pro'ectaccording to the selection criteria published withthe call for proposals" For the purposes of raning

the pro'ects6 the a)erage of the scores awarded bythe e7perts shall be used"

4" 8f the difference between the scores gi)en by the

two e7perts is more than *0C of the higher score6 athird e7pert shall be commissioned by the+rogramme (perator to score the pro'ectindependently" 8n such cases the a)erage score of the two closest scores shall be used for the raningof the pro'ects"

." ,he +rogramme (perator shall pro)ide the&election ommittee with a list of pro'ects ranedin accordance with paragraphs * and 4" 8t shall atthe same time pro)ide the NMF with the raned

list in $nglish" ,he &election ommittee shallre)iew the raned list of pro'ects" 8t may modify the

raning of the pro'ects in 'ustified cases" ,he 'ustification for the modifications shall be detailedin the minutes of the meeting of the &electionommittee" 8f such a modification results in a

pro'ect>s re'ection6 the affected applicant shall beinformed in writing about the 'ustification for themodification" ,he &election ommittee shallsubmit the list of recommended pro'ects to the+rogramme (perator"

" ,he +rogramme (perator shall )erify that theselection process has been conducted in accordancewith the Regulation and that the recommendationsfrom the &election ommittee comply with the

rules and ob'ecti)es of the programme" Followingsuch )erification the +rogramme (perator shall6

based on the decision of the &election ommittee6mae a decision on which pro'ects shall besupported" 8f the +rogramme (perator modifies thedecision of the &election ommittee6 it shall informthe applicants affected and pro)ide them with a

'ustification"

" ,he +rogramme (perator shall notify theapplicants about the results of the selection process

within a reasonable time and publicise the results"

!" 8n e7ceptional cases6 the +rogramme (perator may in its programme proposal suggest the use of

different selection procedures that it has alreadyestablished and used successfully" ,he NMF mayappro)e the use of such procedures only if itdetermines that they duly respect the principles of transparency6 efficiency and ;uality" 8f appro)ed bythe NMF6 the procedures shall be described in the

programme agreement"

9" ,he +rogramme (perator shall store alldocuments related to the selection procedures for at

least three years following the appro)al of the final programme report by the NMF"

/rticle 6.6

Conflict of interest

1" conflict of interest situation is deemed to be present when a person in)ol)ed in the selection process e"g" independent e7perts6 members of &election ommittees6 staff in)ol)ed in re)iew of

compliance with administrati)e and eligibilitycriteria: has direct or indirect interests that are or appear to be incompatible with the impartial andDor ob'ecti)e e7ercise of the functions related to theselection process" &uch interests may be related toeconomic interests6 political or national affinities6family or emotional ties6 other shared interests with

the applicant or its partner6 or any other interestsliable to influence the impartial and ob'ecti)e performance of the person in)ol)ed in the selectionof pro'ects"

2" ,he +rogramme (perator shall tae e)ery

reasonable measure to pre)ent a conflict of interestsituation from occurring" 8f a conflict of interestsituation ne)ertheless occurs6 the +rogramme(perator shall tae all the necessary measures to

pre)ent that such a situation affects the integrity of the selection process"

/rticle 6.'

%ro&ect contract

1" For each appro)ed pro'ect a pro'ect contract shall be concluded between the +rogramme (perator andthe +ro'ect +romoter"

2" 8n cases where a pro'ect contract cannot6 due to pro)isions in the national legislation6 be made

2





between the +rogramme (perator and the +ro'ect+romoter6 the eneficiary &tate may instead issue alegislati)e or administrati)e act of similar effectand content"

*" ,he pro'ect contract sets out the terms andconditions of grant assistance as well as the roles

and responsibilities of the parties" 8t shall in particular include pro)isions that ensure that the

+ro'ect +romoter undertaes to comply fully withthe pro)isions of the legal framewor of the Norwegian Financial Mechanism 2009-2014referred to in rticle 1"4 that are rele)ant for theimplementation of the pro'ect6 including anyobligation that is )alid after the pro'ect has been

completed" ,he pro'ect contract shall contain ane7plicit reference to the programme agreement andthis Regulation and6 as a minimum6 pro)isions onthe followingA

a: obligations regarding reporting that enables the+rogramme (perator to comply with itsreporting obligations to the NMF and the National Focal +ointB

b: the ma7imum amount of the pro'ect grant ineuro and the ma7imum pro'ect grant rateB

c: the eligibility of e7pendituresB

d: the method of calculating indirect costs and its

ma7imum amountB

e: the first and final dates of eligibility of e7pendituresB

f: modifications of the pro'ectB

g: ensuring that the access re;uested in relation tomonitoring6 audits and e)aluations is pro)idedwithout delayB

h: ensuring that obligations regarding publicityare complied withB

i: the right of the +rogramme (perator to

suspend payments and re;uest reimbursementfrom the +ro'ect +romoter in case decision onsuch actions is taen by the NMF6+rogramme (perator or the National Focal

+ointB

': resolution of disputes and 'urisdictionB

: a detailed budget6 with itemised costs and unit prices6 and which may allow for up to .CcontingencyB and

l: a reference to partnership agreements or lettersof intent6 if rele)ant"

4" +ro'ect contracts for pro'ects within a research

programme or a research component under any programme shall contain pro)isions on intellectual property rights" ,hese pro)isions shall mutatis

mutandis be in compliance with Regulation $:

No 190D200 of the $uropean +arliament and of the ouncil of 1! /ecember 200"

." ,he obligations of the +ro'ect +romoter under the pro'ect contract shall be )alid and enforceableunder the applicable national law of the eneficiary&tate"

" ,he +rogramme (perator may re;uest the NMF to confirm that the pro'ect contract templatecomplies with the minimum standards set in paragraph * of this article"

" onfirmation according to paragraph is strictlylimited to declaring that the obligation under paragraph * is met and shall neither be construed toimply any opinion or guarantees on the

completeness6 )alidity or enforceability of the pro'ect contract6 nor result in any responsibility bythe NMF for any deficiencies6 incompleteness or inaccuracies of the pro'ect contract"

/rticle 6.+

%ro&ect partners an" partnership

agree!ents

1" pro'ect may be implemented in partnershipwith pro'ect partners as defined in rticle 1"."1w:"

8f a pro'ect is implemented in such a partnership6the +ro'ect +romoter shall sign a partnershipagreement with the pro'ect partners"

2" ,he partnership agreement shall contain the

followingAa: pro)isions on the roles and responsibilities of

the partiesB

b: pro)isions on the financial arrangements between the parties6 including6 but not limited

to6 which e7penditure the pro'ect partners canget reimbursed from the pro'ect budgetB

c: pro)isions on the method of calculating

indirect costs and their ma7imum amountB

d: currency e7change rules for such e7penditureand its reimbursementB

e: pro)isions on audits on the pro'ect partnersB

f: a detailed budget6 with itemised costs and unit pricesB and

g: pro)isions on dispute resolution"

*" +artnership agreements for pro'ects within aresearch programme or a research component under any programme shall contain pro)isions on

intellectual property rights" ,hese pro)isions shallmutatis mutandis be in compliance with Regulation$: No 190D200 of the $uropean +arliament andof the ouncil of 1! /ecember 200"

2





4" ,he partnership agreement shall be in $nglish if one of the parties to the agreement is an entity from Norway"

." ,he eligibility of e7penditures incurred by a pro'ect partner is sub'ect to the same limitations aswould apply if the e7penditures were incurred by

the +ro'ect +romoter"

" ,he creation and implementation of therelationship between the +ro'ect +romoter and the pro'ect partner shall comply with the applicablenational and $uropean %nion law on public

procurement as well as rticle "1 of thisRegulation"

" ,he partnership agreement shall be submitted to

the +rogramme (perator before the signing of the pro'ect contract" ,he +rogramme (perator shall)erify that the partnership agreement complies withthis article"

/rticle 6.9

Grant aar"ing an" reallocation of

f*n"s

1" +ro'ect grants that ha)e upon pro'ect closure not been fully utilised6 as well as pro'ect grants that

ha)e been cancelled due to irregularities or for other reasons6 may6 sub'ect to paragraph 2 of rticle 12"26 be reallocated to future calls for proposals within the same programme or toadditional acti)ities of already appro)ed pro'ects6

pro)ided that these additional acti)ities contributeto the ob'ecti)es of the pro'ects recei)ing theadditional funds"

2" ny decision to reallocate pro'ect grants to

already appro)ed pro'ects shall be based onrecommendations by the &election ommittee" ,he&election ommittee shall base itsrecommendations on transparent and ob'ecti)ecriteria" y applying these criteria6 the &electionommittee shall ensure e;ual treatment of all

+ro'ect +romoters but may in 'ustified cases gi)e priority toA

a: certain geographical regions lagging behindBand

b: a clearly defined group of less pri)ileged+ro'ect +romoters"

*" ,he criteria shall be made a)ailable on thewebsite of the +rogramme (perator no later thanone month prior to any decision to reallocate funds

according to paragraph 2" +ro'ect +romoters shall be informed in writing without delay when suchcriteria ha)e been published on the website"

Chapter ':

(ligibilit# of e)pen"it*res

/rticle '.1

(ligible e)pen"it*res of a progra!!e

$ligible e7penditures of a programme areA

a: management costs of the +rogramme (perator in accordance with the detailed budget anne7edto the programme agreement and rticle "10B

b: payments to pro'ects within the programme inaccordance with this Regulation6 the programme agreement and the pro'ect contractB

c: e7penditure of funds for bilateral relations in

accordance with rticle "B

d: complementary action of the +rogramme

(perator in accordance with rticle "11B

e: e7penditure related to the preparation of a programme proposal in accordance withrticle "9B and

f: e7penditure related to the mitigation of e7change rate riss in accordance with paragraph . of rticle !" and e7plicitly

appro)ed by the NMF"

/rticle '.2

General principles on the eligibilit# of

e)pen"it*res

1" ,he principles set forth in this article shall applymutatis mutandis to all eligible e7penditures unlessotherwise e7plicitly stated in this Regulation"

2" $ligible e7penditures of pro'ects are thoseactually incurred by the +ro'ect +romoter6 whichmeet the following criteriaA

a: they are incurred between the first and finaldates of eligibility of a pro'ect as specified inthe pro'ect contractB

b: they are connected with the sub'ect of the

pro'ect contract and they are indicated in theestimated o)erall budget of the pro'ectB

c: they are proportionate and necessary for theimplementation of the pro'ectB

d: they must be used for the sole purpose of achie)ing the ob'ecti)es: of the pro'ect and itse7pected outcomes:6 in a manner consistentwith the principles of economy6 efficiency andeffecti)enessB

e: they are identifiable and )erifiable6 in particular through being recorded in the

accounting records of the +ro'ect +romoter anddetermined according to the applicable

accounting standards of the country where the

2!





b: a +ro'ect +romoter and pro'ect partners mayopt for a flat rate of up to 20C of its total directeligible costs6 e7cluding its direct eligible costsfor subcontracting and the costs of resourcesmade a)ailable by third parties which are not

used on the premises of the +ro'ect +romoterB

or c: in case of a pro'ect implemented within a

research programme or within a researchcomponent within any programme6 the +ro'ect+romoter and pro'ect partners that are non- profit public bodies6 secondary and higher education establishments6 researchorganisations and &M$s6 which6 due to the lac

of analytical accounting6 are unable to identifywith certainty their real indirect costs for the pro'ect6 may opt for a flat-rate of up to 0C of the total direct eligible costs6 e7cluding itsdirect eligible costs for subcontracting and thecosts of resources made a)ailable by third

parties which are not used on the premises of the +ro'ect +romoter" 8f these +ro'ect+romoters or partners change their statusduring the life of the pro'ect6 this flat rate shall be applicable up to the moment they lose their status"

2" +ro'ect +romoters andDor pro'ect partners thatha)e identified their indirect costs in a manner comparable to paragraph 1a: under the si7th or

se)enth Framewor +rogramme of the $uropeanommission cannot mae use the methods

described in paragraphs 1b: or c:"

*" ,he application of the methods described in paragraphs 1b: and c: is sub'ect to the pro)isionof a certification according to paragraph 4 of rticle "1*"

4" ,he method of calculating the indirect costs andits ma7imum amount shall be determined in the pro'ect contract" ,he method of calculation of indirect costs of a pro'ect partner shall be stipulatedin the partnership agreement between the +ro'ect

+romoter and the pro'ect partner"

." 8n e7ceptional and duly 'ustified cases6 the+rogramme (perator may in its programme

proposal suggest restricting the eligibility of indirect costs" &uch restrictions6 if appro)ed by the NMF6 shall be e7plicitly stipulated in the programme agreement"

/rticle '.$

%*rchase of real estate an" lan"

1" ,he cost of purchase of real estate6 meaning buildings constructed or under de)elopment and theappropriate rights to the land on which they are

built6 and land not built on may be eligible under

the following conditions6 without pre'udice to theapplication of stricter national rulesA

a: there shall be a direct lin between the purchase and the ob'ecti)es of the pro'ectB

b: purchase of real estate andDor land may not

represent more than 10C of the total eligiblee7penditure of the pro'ect6 unless a higher percentage is e7plicitly authorised in the programme agreement and set in the decisionto award the pro'ect grant"

c: a certificate shall be obtained prior to the purchase from an independent ;ualifiede)aluator or duly authorised official entityconfirming that the purchase price does not

e7ceed the maret )alue and that it is free of allobligations in terms of mortgage and other liabilities6 particularly in respect of damagerelated to pollution" 8n case of purchase of realestate the certificate must either confirm thatthe building in ;uestion is in conformity with

national regulations6 or specify what is not inconformity with national regulations but whichis to be rectified by the +ro'ect +romoter under the pro'ectB

d: the real estate andDor the land shall be used for the purpose and for the period specified in thedecision to award the pro'ect grant" ,heownership must be transferred to the +ro'ect+romoter6 or those e7plicitly designated by the

+ro'ect +romoter in the pro'ect application as

recipients of the real estate andDor the land6 prior to the completion of the pro'ect" ,he realestate andDor the land cannot be sold6 rented6 or mortgaged within fi)e years of the completionof the pro'ect6 or longer if stipulated in the

pro'ect contract" ,he NMF may wai)e thisrestriction if it would result in an unforeseenand unreasonable burden on the +ro'ect+romoterB

e: the real estate andDor land may only be used inconformity with the ob'ecti)es of the pro'ect"8n particular6 buildings may be used to

accommodate public administration ser)icesonly where such use is in conformity with the

ob'ecti)e of the pro'ectB and

f: the purchase of real estate andDor land shall bee7plicitly appro)ed by the +rogramme

(perator prior to the purchase6 either in the pro'ect contract or by a later decision"

2" ,he restrictions referred to in paragraph 1d:apply also to buildings that are constructed or

reconstructed through a financial contribution fromthe Norwegian Financial Mechanism 2009-2014"

*" ,he mortgage restriction referred to in paragraph

1d: does not apply to a mortgage taen in fa)our of the +rogramme (perator or the National Focal

*0





+oint when its purpose is solely to ensurecompliance with the said paragraph"

4" $7penditure on site preparation and constructionwhich is essential for the implementation of the pro'ect may be eligible"

." ,he cost of real estate andDor land alreadyowned6 directly or indirectly6 by the +ro'ect+romoter6 or purchase of real estate andDor landowned6 directly or indirectly6 by the pro'ect partner or a public administration6 shall not be eligible"%nder no circumstances shall real estate andDor land

be purchased for speculati)e purposes" ,he realestate andDor the land shall not ha)e recei)ed anational or e7ternal donor grant in the last 10 yearswhich would gi)e rise to a duplication of funding"

/rticle '.6

()cl*"e" costs

1" ,his article shall apply mutatis mutandis to allcosts unless otherwise e7plicitly stated in thisRegulation"

2" ,he following costs shall not be consideredeligibleA

a: interest on debt6 debt ser)ice charges and late payment chargesB

b: charges for financial transactions and other purely financial costs6 e7cept costs related toaccounts re;uired by the NMF6 the National

Focal +oint or the applicable law and costs of financial ser)ices imposed by the pro'ect

contractB

c: pro)isions for losses or potential futureliabilitiesB

d: e7change losses6 e7cept losses co)ered by a pro)ision e7plicitly appro)ed by the NMF for each programmeB

e: reco)erable K,B

f: costs that are co)ered by other sourcesB

g: fines6 penalties and costs of litigationB andh: e7cessi)e or recless e7penditure"

/rticle '.'

,*n"s for bilateral relations

1" ,he following categories of e7penditure areeligible for funds referred to in rticle *". and paragraph 1 of rticle *"A

a: fees and tra)el costs for participation inconferences6 seminars6 courses6 meetings andworshopsB

b: tra)el costs for study tripsB

c: tra)el and salary costs for )isits by e7pertsB

d: costs related to feasibility studies and

preparation of financial and economic analysisB

e: costs of conferences6 seminars6 courses6meetings and worshopsB

f: purchase of data necessary for the preparationof the applicationB and

g: e7ternal consultancy fees"

2" ,ra)el costs according to paragraph 1 include

subsistence allowance in accordance with paragraph 1b: of rticle "*"

*" ,he categories of e7penditure referred to in

paragraphs 1a: to c: are eligible for funds referredto in paragraph * of rticle *""

/rticle '.+Scholarships an" !obilit# progra!!es

1" 3rants to natural persons from a scholarship programme or from the scholarship componentunder any programme6 may be calculated as a lumpsum" $ligible items areA

a: monthly stipendB

b: allocation for study materialB

c: tra)el costs6 insurance and conference feesB and

d: tuition fees"

2" ,he +rogramme (perator responsible for ascholarship programme or a scholarship componentwithin any programme shall specify any unitamounts in the programme proposal" ,hedetermination of the amounts shall tae intoaccount the reasonable costs in the area of the host

institution"

/rticle '.9

Costs for preparation of progra!!es

1" osts incurred by the +rogramme (perator

directly related to the preparation of a programmeappro)ed by the NMF may be eligible" ,hefollowing categories of preparation costs may beeligible6 pro)ided that the e7penditure is

proportionate6 necessary and directly related to the preparation of the programmeA

a: salaries of the staff of the +rogramme (perator

assigned e7clusi)ely to the preparation of the programmeB

b: tra)el and subsistence allowance e7clusi)ely

related to the preparation of the programmeB

c: costs related to feasibility studies

or other necessary supporting documents6 including

e7pert feesB

*1





d: costs related to translation of the programme proposal together with supporting documentsinto $nglishB

e: preparation for public procurement andcompliance with state aid rulesB and

f: costs related to public consultation"

2" ,he first date of eligibility of costs under thisarticle shall be the date when the National Focal

+oint6 in accordance with paragraph 4 of rticle4"26 designates the +rogramme (perator" ,he lastdate of eligibility shall be the day when the programme proposal is recei)ed by the NMF" yway of derogation from paragraph * of rticle "26costs that are eligible according to this article shall

be in)oiced and paid no later than one month after the last date of eligibility"

*" ,he +rogramme (perator shall pro)ide a detailed

budget for costs for preparation of the programmein the programme proposal" ,he ma7imum amountof eligible costs under this article shall be set in the programme agreement and not e7ceed 0".C of thetotal eligible costs of the programme or I 10060006whiche)er is lower"

4" osts related to preparation of programmes shall be claimed with the first interim financial report ona format pro)ided by the NMF nne7 11:" ,he

claim shall be certified by the ertifying uthorityin accordance with rticle 4"."

/rticle '.10

(ligibilit# of !anage!ent cost inc*rre"

b# %rogra!!e perator

1" ,he management cost of a +rogramme (perator up to a ceiling set in paragraph 2 may be consideredas eligible costs" ,he first date of eligibility of e7penditures of managements cost of a +rogramme

(perator shall be on the date when the NMFappro)es the programme" Githout pre'udice to paragraphs 4 and . of rticle "146 the final date of eligibility shall be the *0 pril 201 unless anearlier date is specified in the programme

agreement"

2" ,he ma7imum management cost of a programmeshall be calculated as a percentage of the totaleligible e7penditures of the programme" 8t shall be

the sum of the following amountsA

a: 10C of the first I 10 millionB

b: C of the ne7t I 40 millionB

c: .C of the ne7t I .0 millionB

d: 4C of the remaining total eligible e7pendituresof the programme"

*" ,he following categories of e7penditure areeligible as management costs6 pro)ided that thee7penditure is proportionate and necessaryA

a: preparation of the implementation of the programme6 including the de)elopment of procedures for pro'ect selection and financial

flowsB

b: assisting possible applicants and +ro'ect+romoters in complying with the re;uirementsset by the +rogramme (perator for pro'ectapplications andDor the implementation of

pro'ectsB

c: selection of pro'ects6 including costs of e7perts6costs related to the operation of the &election

ommittee6 and appealsB

d: )erification of payment claims and transfers of payments to +ro'ect +romotersB

e: monitoring of pro'ects and re)iewsB

f: audits and on-the-spot )erification of pro'ectsB

g: promotional and information acti)ities6including calls for proposals and information

wor during the application period as well asinformation e)ents to share e7periences ande)aluate the impact of the programmeB

h: e7penditures related to reporting obligations tothe NMF6 the National Focal +oint andDor theertifying uthorityB

i: charges related to the establishment andoperation of ban accounts re;uired under thisRegulation or the programme agreement6including costs of incoming and outgoingtransfersB and

': o)erheads6 calculated in accordance with paragraphs 1a: or b: of rticle "46 asappropriate6 and sub'ect to the re;uirements in paragraph 4 of rticle "1*"

4" 8n cases where the selection of the +rogramme(perator in the eneficiary &tate is conductedthrough a competiti)e tendering procedure6 the

NMF can in the programme agreement6 decidethat the contract )alue shall be accepted asmanagement costs in lieu of actually incurrede7penditures" ,he ceilings set out in paragraph 2shall apply"

/rticle '.11

Co!ple!entar# action b# the

%rogra!!e perator

1" omplementary action consists of acti)ities thatare organised by the +rogramme (perator andcontribute to the ob'ecti)es: of the programmewith the primary aim ofA

*2





a: strengthening co-operation between the+rogramme (perators and similar entitieswithin the eneficiary &tates and NorwayB and

b: e7changing e7periences and best practicesrelated to the implementation of the programme"

2" ,he following categories of complementaryaction may be eligible6 pro)ided that thee7penditure is proportionate and necessaryA

a: costs of e)ents6 such as rent of facilities6interpretation6 tra)el costs6 subsistenceallowance6 and publicity costs directly relatedto the e)entB and

b: salaries6 tra)el costs and subsistence allowanceof personnel of entities other than the+rogramme (perator that are directly in)ol)edin the complementary action6 and of personnel

of the +rogramme (perator when such cost can be clearly separated from costs related to themanagement of the programme"

*" For costs of complementary action to be eligible

the action must ha)e been e7plicitly appro)ed bythe NMF and the costs specified in the detailed budget of the programme6 anne7ed to the programme agreement" osts of complementaryaction may not e7ceed an amount e;ual to 20C of

the management costs for the programme"

/rticle '.12Technical assistance to the Beneficiar#

State

1" osts incurred by eneficiary &tates in relationto the implementation of the Norwegian FinancialMechanism 2009-2014 are ineligible6 e7cept as pro)ided for in this article and falling within the

categories set out in paragraph 2"

2 ,he following categories of e7penditure may beeligible costs for technical assistance under theconditions and limits set out in paragraphs *-!6

pro)ided that the e7penditure is proportionate andnecessaryA

a: in the case of additional management systems

specifically established for the NorwegianFinancial Mechanism 2009-20146 e7penditurerelating to the preparation6 e)aluation6 financialflow6 and monitoring of the assistance and of programmesB

b: e7penditure on meetings of Monitoringommittees6 preparation of and participation inannual meetings with Norway6 and other meetings with the NMF relating to the

implementation of the assistance" ,hise7penditure may also include the costs of e7perts and other participants in these

committees6 including third-country participants6 where the chairperson of suchcommittees considers their presence essentialto the effecti)e implementation of theassistanceB

c: e7penditure on meetings and conferences

organised by the National Focal +oint or theertifying uthority to share e7perience

related to the implementation6 monitoring6reporting and auditing of pro'ects funded bythe Norwegian Financial Mechanism 2009-20146 including e7penditure related to tra)eland accommodation of participants" ,he NMF shall agree to the agenda of such a

meeting or conference in ad)ance6 andrepresentati)es of Norway shall be in)ited to participate in such meetings or conferencesB

d: e7penditure related to promotional and

information acti)itiesB

e: e7penditure related to audits referred to in

rticle 4" and paragraph * of rticle 4"!B

f: e7penditure related to on-the-spot )erificationsof programmes and pro'ectsB

g: e7penditure related to re)iews and e)aluationsBand

h: e7penditure related to technical assistance for the implementation of the Norwegian FinancialMechanism 2004-2009 incurred during the 12months following the final date of eligibility

for that technical assistance"

*" $7penditure in the eneficiary &tate on salaries6social security contributions and other statutorycosts6 is eligible only in the following casesA

a: ci)il ser)ants or other public officialstemporarily assigned6 by duly documenteddecision of the competent authority6 to carry

out tass referred to in paragraph 2 on ane7clusi)e and additional basisB

b: other staff employed to carry out tass referred

to in paragraph 2"

4" ontributions from the Norwegian FinancialMechanism 2009-2014 to the e7penditure under

paragraph 2 shall not e7ceed 1".C of the totalcontribution to the respecti)e eneficiary &tate"

." ,he amount shall be fi7ed in an agreement on

technical assistance between the NMF and the National Focal +oint"

" ,he National Focal +oint shall coordinate the use

of the technical assistance" 8t shall as soon as possible after the signing of the Mo%6 pro)ide the NMF with a budget for the whole implementation period6 including a detailed budget for the firstcalendar year" No later than *0 &eptember eachyear6 the National Focal +oint shall forward to the

**





NMF a detailed budget for the following calendar year" Ghere the National Focal +oint recei)essupport for technical assistance under both the Norwegian and $$ Financial Mechanisms6 it shall prepare one budget co)ering the technical

assistance from both mechanisms"

" ,he first date of eligibility for support under thisarticle shall be the date of the last signature of the

Mo% with the respecti)e eneficiary &tate" 8f support for technical assistance is recei)ed under both the Norwegian and $$ FinancialMechanisms6 the first date of eligibility of anyfunding for technical assistance shall be the date of the last signature of the whiche)er Mo% is signed

first"

!" rticles ."11 and ."12 and hapter ! shall applymutatis mutandis to technical assistance"

/rticle '.13

%roof of e)pen"it*re

1" osts incurred by +rogramme (perators6 +ro'ect

+romoters and pro'ect partners shall be supported by receipted in)oices6 or alternati)ely byaccounting documents of e;ui)alent probati)e)alue"

2" Ghere acti)ities are implemented in theframewor of competiti)e tendering procedures6 payments by +rogramme (perators6 +ro'ect+romoters and pro'ect partners shall be supported

by receipted in)oices based on the signed contracts"8n all other cases6 payments by +rogramme(perators6 +ro'ect +romoters and pro'ect partnersshall be 'ustified by e7penditure actually paid bythe entities concerned in implementing the pro'ect"

*" report by an independent and certified auditor6certifying that the claimed costs are incurred inaccordance with this Regulation6 the national lawand accounting practices of the pro'ect partner>scountry6 shall6 sub'ect to paragraph 6 be seen as

sufficient proof of costs incurred by a +ro'ect+romoter or a pro'ect partner whose primary

location is in Norway or a eneficiary &tate"4" ()erheads identified according to paragraphs1b: and c: of rticle "46 do not need to besupported by accounting documents" Ne)ertheless6the +ro'ect +romoter and pro'ect partners shall6 prior to the awarding of the grant6 pro)ide the+rogramme (perator with a report by a an

independent and certified auditor certifying that theflat-rate o)erheads represent a fair apportionmentof the o)erall o)erheads of the +ro'ect +romoter andDor the pro'ect partners6 and that paragraph 2 of rticle "4 does not pre)ent them from applying theflat-rate methods"

." ,he report referred to in paragraph 4 may beused for any subse;uent pro'ects implemented

under the Norwegian Financial Mechanism 2009-2014 by the same +ro'ect +romoter andDor pro'ect partner6 pro)ided that the report>s assumptions ha)enot changed"

" ,he +rogramme (perator may decide to apply paragraph * only to pro'ect partners whose primary

location is in Norway" ,he +rogramme (perator shall6 through the National Focal +oint6 notify the

NMF of such a decision"

" ,he ertifying uthority may further define themethods of )erifying payment claims6 which may

consist of )erification on a sample basis"

/rticle '.14

%erio" of eligibilit# of e)pen"it*res in

pro&ects

1" %nless a later date is pro)ided in the programmeagreement6 programme implementation agreement6or the pro'ect contract6 e7penditure incurred shall be eligible for assistance as of the date on which the+rogramme (perator decides to award the pro'ect

grant" ,he +rogramme (perator shall in the samedecision fi7 the final date of eligibility which shall be no later than either one year after the scheduledcompletion of the pro'ect or the date referred to in paragraph *6 whiche)er is earlier"

2" ,he first and final dates of eligibility of each pro'ect shall be stated in the pro'ect contract for that pro'ect"

*" $7penditures incurred after *0 pril 201 shallnot be eligible" 8n respect of the transitional supportto &pain6 the deadline for eligibility of e7penditureshall be *1 /ecember 201."

4" 8n e7ceptional cases where further delays are 'ustified6 the NMF can e7tend the period of eligibility to *0 pril 201" 8n respect of the

transitional support to &pain6 the period of eligibility can not be e7tended"

." 8f a pro'ect is6 on the final date of eligibility6

sub'ect to 'udicial procedures or administrati)e

appeal with suspensory effects6 the NMF can gi)efurther e7tensions if it deems that such e7tension isin the interests of the Norwegian FinancialMechanism 2009-2014"

" 8f a pro'ect has not been completed on its finaldate of eligibility6 the +rogramme (perator shallensure that funds are made a)ailable to completethe pro'ect in a timely manner" 8f such funds cannot

be guaranteed6 the +rogramme (perator shallreimburse to the NMF its financial contribution tothe pro'ect" 8f6 at the date of the final date of eligibility6 clearly identifiable and )iablecomponents of the pro'ects ha)e been completed6

the NMF may wai)e6 in full or in part6 its right toreimbursement"

*4





/rticle '.1$

*rabilit# of pro&ects

1" ,he +rogramme (perator shall ensure that pro'ects that in)ol)e in)estment in real estate

andDor land including reno)ation: are operationalfor at least fi)e years after the +rogramme(perator>s appro)al of the pro'ect completionreport and that the real estate andDor land is used for the purpose of the pro'ect as described in the pro'ect contract"

2" For other pro'ects6 the period of minimum post-completion operation shall be determined by the+rogramme (perator6 described in the call for

proposals and included in the pro'ect contract" ,hedetermination of this period shall be guided by theaim of promoting the sustainability of the pro'ectand of ensuring that the financial support pro)idedto the pro'ect generates the ma7imum benefits to itstarget group and final beneficiaries"

*" ,he eneficiary &tate and the +rogramme(perator shall ensure that the +ro'ect +romoter retains the contribution from the Norwegian

Financial Mechanism 2009-2014 only if the pro'ectis in compliance with paragraphs 1 and 2"

/rticle '.16

%roc*re!ent

1" National and $uropean %nion law on public procurement shall be complied with at any le)el inthe implementation of programmes and pro'ects"

2" +ro'ect +romoter that recei)es .0C or more of the eligible e7penditure of the pro'ect as a pro'ectgrant from a programme under the NorwegianFinancial Mechanism 2009-2014 shall conduct its procurement for that pro'ect in compliance with the

national public procurement law as though the+ro'ect +romoter were a contracting authority under paragraph 9 of rticle 1 of /irecti)e 2004D1!D$ of the $uropean +arliament and of the ouncil of *1March 2004 on the coordination of procedures for

the award of public wors contracts6 public supplycontracts and public ser)ice contracts" ,his paragraph applies mutatis mutandis to pro'ect partners"

*" +aragraph 2 does not apply to N3(s unless theamount of the contract is at or abo)e $uropean%nion thresholds set for public procurement"

4" 8n cases where contracts concluded as part of theimplementation of the +rogramme fall below thenational or $uropean %nion thresholds set for public procurement or outside the scope of theapplicable public procurement laws6 the awarding

of such contracts including the procedures prior tothe awarding: and the terms and conditions of such

contracts shall comply with best economic practices6 including accountability6 allow a full andfair competition between potential pro)iders6 for e7ample by way of effecti)e price comparison6 andensure the optimal use of resources from the

Norwegian Financial Mechanism 2009-2014"

." ,he highest ethical standards shall be obser)edduring the procurement and e7ecution of contracts"

,he +rogramme (perator shall ensure theapplication of ade;uate and effecti)e means to pre)ent illegal or corrupt practices" No offer6 gifts6 payments or benefit of any ind6 which would or could6 either directly or indirectly6 be construed asan illegal or corrupt practice6 e"g" as an inducement

or reward for the award or e7ecution of procurement contracts6 shall be accepted"

" ,he +rogramme (perator shall ensure that

records of the awarding and e7ecution of contracts

are ept for at least three years from the closure of the programme and pro)ided upon re;uest to the NMF"

Chapter +:

,inancial !anage!ent

/rticle +.1

Co!!on r*les for pa#!ents

1" +ayments to programmes shall be made when allrele)ant conditions for payments stipulated in the programme agreement and this Regulation ha)e

been fulfilled"

2" +ayments to programmes shall tae the form of ad)ance payments6 interim payments and payments

of the final balance" Githout pre'udice to paragraph*6 they shall be made to the designated account of the eneficiary &tate" &ub'ect to contrary pro)isions in national law6 the eneficiary &tateshall transfer the payments to the +rogramme(perator within 1. woring days from reception of

the payment"

*" ,he NMF and the National Focal +oint mayagree to transfer payments directly from the NMF

to the designated account of the +rogramme(perator"

4" ,he NMF may retain up to 10C of the

management cost portion of e)ery ad)ance andinterim payment to the programme" ,he retainedamount shall not be paid until the final programmereport has been appro)ed by the NMF"

." +ayments to programmes shall be calculated by

applying the co-financing rate laid down in the programme agreement" ,he principle of pro ratafinancing shall apply6 meaning that the payments of

*.





the programme grant from the NMF shall bematched within one month by payment from theentity or entities responsible for pro)iding the co-financing"

" +ayments of the pro'ect grant to the +ro'ect+romoters may tae the form of ad)ance payments6

interim payments and payments of the final balance" ,he le)el of ad)ance payments and their

off-set mechanism shall be proposed in the programme proposal and set in the programmeagreement"

/rticle +.2

/"vance pa#!ents

1" d)ance payments are the part of the programmegrant necessary to co)er its share of 'ustifiedestimated programme e7penditure for up to two full

reporting periods referred to in paragraph 1 of rticle !"*" ,he ma7imum ad)ance payment shall be set in the programme agreement" ,he ad)ance payment shall be made when the rele)antconditions in the programme agreement and thisRegulation ha)e been fulfilled"

2" s from the beginning of the second reporting period6 the procedure for interim payments set outin rticle !"* shall apply"

/rticle +.3

-nteri! pa#!ents1" ,here shall be three reporting periods in each

calendar yearA

a: 1 January L *0 prilB

b: 1 May L *1 ugustB and

c: 1 &eptember L *1 /ecember"

2" 8nterim payments shall be paid based on aninterim financial report submitted by the

+rogramme (perator in a format pro)ided by the NMF nne7 11:6 certified by the ertifyinguthority in accordance with rticle 4".6 and

appro)ed by the NMF"

*" Githout pre'udice to paragraph 10 and sub'ect to budgetary appropriations of Norway6 interim payments from the NMF shall be made on thefollowing payment datesA 1. pril6 1. ugust and1. /ecember" &hould a payment date land on a

weeend or an $F, public holiday6 the paymentshall be made on the ne7t $F, woring day"

4" 8nterim financial reports shall be recei)ed by the

NMF according to the following scheduleA

a: on6 or before6 1. March for payments to be

made on 1. prilB

b: on6 or before6 1. July for payments to be madeon 1. ugustB

c: on6 or before6 1. No)ember for payments to bemade on 1. /ecember"

." +ayment based on an interim financial report

recei)ed after its due date but on6 or before6 thefollowing due date referred to in paragraph 4 shall be due as the report would ha)e been recei)ed onits following due date" 8f an interim financial reporthas not been recei)ed within eight months from theend of the reporting period in which e7penditure

has been incurred by the +rogramme (perator6 pre)iously proposed e7penditure for that periodshall be declared ineligible and cancelled"

" 8nterim financial reports shall includeA

a: a statement of actual e7penditure incurredduring the reporting period preceding the

payment dateB and

b: a statement of proposed e7penditure for thereporting period immediately following the payment date"

" ,he actual incurred e7penditure for the lastreporting period shall be reported in the final programme report"

!" Ghen the interim financial report has been pro)ided6 the NMF shall )erify that it is in thecorrect form and that the conditions for payment

ha)e been met" 8f that )erification is positi)e6

interim payments shall be transferred no later thanon the payment dates referred to in paragraph *"

9" 8nterim payments shall in principle consist of the proposed e7penditure for the following reporting period less the difference between the proposede7penditure for the pre)ious reporting period andactual e7penditure in that period6 taing intoaccount any 'ustified unplanned e7penditure in the

reporting period within which the interim financialreport is submitted" ,he NMF may modify theamount of the interim payment if the proposede7penditures are considered to be un'ustified" ,he NMF shall pro)ide the National Focal +oint6

ertifying uthority and the +rogramme (perator with a 'ustification of the modification withoutdelay"

10" &hould )erification according to paragraph ! be

negati)e6 the NMF6 the National Focal +oint andthe +rogramme (perator shall closely cooperate toremedy the deficiencies" ,he NMF may pro)isionally hold interim payments until suchdeficiencies ha)e been remedied" Ghen the NMF6after recei)ing all necessary information6 has

positi)ely )erified interim financial report6 it shallat the first possible payment date or when it deems

it necessary following that )erification release the payment due6 unless the NMF decides to maeuse of remedies pro)ided in hapter 12"

*





/rticle +.4

%a#!ent of the final balance

1" ,he final balance isA

a: the total reported eligible e7penditure of the programme6 taing into account any pre)iousreimbursements6

b: less the following amountsA

i: the total ad)ance and interim payments to

the programme from the NMFB

ii: any co-financing from sources other thanthe Norwegian Financial Mechanism

2009-2014B

iii: total interest earned until the date of thefinal programme report but not reimbursed

to the NMFB and

i): any funds reimbursed from +ro'ect+romoters to the +rogramme (perator6 not

paid to other pro'ects or reimbursed to the NMF"

2" ,he Norwegian Financial Mechanism 2009-2014

share of the final balance is the final balanceaccording to paragraph 1 multiplied by the programme grant rate"

*" ,he final balance shall be calculated and reportedin the financial anne7 to the final programme reportin a format pro)ided by the NMF attachment 2 to

nne7 9:"

4" ny final balance payable to the +rogramme(perator shall be transferred by the NMF no later than one month after NMF>s appro)al of the final programme report"

." ny final balance payable to the NMF shall bereimbursed to the NMF within the same deadline"ny interest earned on the ban account of the+rogramme (perator between the date of the final

programme report and the reimbursement date shall be included in the reimbursement"

/rticle +.$

,orecast of liel# pa#!ent applications

t the latest by 20 February6 20 May6 20 &eptember and 10 /ecember each year6 the ertifyinguthority shall send to the NMF6 in a format pro)ided by the NMF nne7 :6 a 'ustifiedforecast of liely payment applications from the

eneficiary &tate for the remainder of the currentfinancial year and subse;uent financial years"

/rticle +.6

7se of the e*ro

1" mounts set out in programmes6 interimfinancial reports6 annual programme reports andfinal programme reports shall be denominated ineuro" +rogramme grants and payments from the

NMF to entities in the eneficiary &tate6 shall bedenominated and carried out in euro" ,he amounts

shall be rounded to the nearest euro"

2" +rogramme (perators in eneficiary &tates thatha)e not adopted the euro as their currency on the

date of an application for payment shall con)ertinto euro the amounts of e7penditure incurred intheir national currency" ,his amount shall becon)erted into euro using the monthly accountinge7change rate of the $uropean ommission in themonth during which the e7penditure was registered

in the accounts of the +rogramme (perator of the

programme concerned"

*" Ghen the euro becomes the currency of a

eneficiary &tate6 the con)ersion procedure set outin paragraph 2 shall continue to apply to alle7penditure recorded in the accounts by the+rogramme (perator before that date"

4" ,he NMF is not responsible for losses resultingfrom e7change rate fluctuations"

." ,he +rogramme (perator may in its programme proposal suggest a reser)e for e7change rate lossessuffered by the +rogramme (perator and the

+ro'ect +romoters" &uch a proposal shall be duly 'ustified and pro)ide a clear and transparent methodof calculating the e7change rate losses and of their

settlement" ,he amount of the reser)e shall note7ceed 1C of the total eligible costs of the+rogramme"

" ,he +rogramme (perator may at any time6 with

the appro)al of the National Focal +oint6 cancel thereser)e and mae it a)ailable for pro'ects within the programme" ,he NMF shall be informed beforeany arrangements are made to reallocate the funds"ny decision to reallocate funds to already

appro)ed pro'ects shall be taen in accordance with

paragraphs 2 and * of rticle "9"

/rticle +.'

-nterest

1" ny interest generated on the following ban accounts shall be regarded as a resource for the NMFA

a: accounts held in the eneficiary &tate onwhich funds from the NMF are ept untilthey are transferred to the +rogramme(peratorsB and

*





b: accounts established by the +rogramme(perator according to paragraph 1': of rticle4" for funds intended for regranting"

2" ,he +rogramme (perator shall annually and nolater than 1 March declare to the ertifyinguthority any interest earned on the account

referred to in paragraph 1b:" ,he interest earnedshall be reimbursed to the ertifying uthority

within 20 woring days of ha)ing been declared"

*" ,he ertifying uthority shall annually andwithin three calendar months after year-end declare

to the NMF any interest earned on the accountsreferred to in paragraph 1 in a format pro)ided bythe NMF nne7 !:" ,he ertifying uthorityshall )erify the correctness of the declared interest",he interest earned shall be reimbursed to the NMF within 1. woring days of ha)ing been

declared"

4" ,he interest earned on accounts referred to in paragraph 1a: during the year in which the final

&trategic Report is submitted shall be declared bythe ertifying uthority to the NMF within onemonth of the submission of the final &trategicReport" ,he interest earned shall be reimbursed tothe NMF within 1. woring days of ha)ing beendeclared"

." ,he interest earned on accounts referred to in paragraph 1b: during the year in which the final programme report is submitted shall be declared in

the final programme report and shall be included in

the calculation of the final balance payment"

" eneficiary &tates that ha)e not adopted the euro

as their currency and use accounts held in thenational currency shall con)ert the interest earnedinto euros using the a)erage of the monthlyaccounting e7change rates of the $uropeanommission" /uring the years referred to in paragraphs 4 and . the a)erage e7change rate for

the period 1 January to the date of the submissionof the respecti)e reports shall apply"

/rticle +.+Transparenc# an" availabilit# of

"oc*!ents

1" ,he eneficiary &tate shall ensure an audit trailfor financial contributions from the NorwegianFinancial Mechanism 2009-2014 that permitsA

a: reconciliation of the e7penditure certified bythe ertifying uthority in the interim financialreports and the final programme report andoriginal supporting documents held at the

)arious administrati)e le)els andDor by the+rogramme (perator6 the +ro'ect +romoter and

its partnersB and

b: )erification of the allocation and transfer of thea)ailable Norwegian Financial Mechanism2009-2014>s and national financialcontributions"

2" ,he eneficiary &tate shall ensure that all thesupporting documents regarding e7penditure and

audits on the programme concerned are ept either in the form of originals or in )ersions certified to be

in conformity with the originals on commonlyaccepted data carriers"

*" ,he documents shall be ept a)ailable for the

NMF and the (ffice of the uditor 3eneral of Norway for a period of at least three yearsfollowing the NMF>s appro)al of the final programme report"

Chapter 9:

(val*ations

/rticle 9.1

esponsibilities of Beneficiar# States

1" ,he eneficiary &tate shall carry out e)aluationsof programmes to assess actual andDor e7pectedeffects at the outcome le)el" 8t shall present its

e)aluation plan in the &trategic Report"

2" $)aluation shall be carried out by e7perts or

entities independent of the National Focal +oint6 theertifying uthority and the +rogramme (perator in accordance with the $)aluation 3uidelines"

*" ,he results of the e)aluations shall be sent to the

NMF6 the National Focal +oint6 the Monitoringommittee and the +rogramme (perator6 and made public" +rior to publication6 the NMF6 the National Focal +oint and the +rogramme (perator shall be gi)en the opportunity to pro)idecomments"

/rticle 9.2ole of the 5,/

1" ,he NMF may carry out e)aluations related tothe o)erall ob'ecti)es of the Norwegian FinancialMechanism 2009-20146 ob'ecti)es of programmeareas or e)aluations of the o)erall contribution of the Norwegian Financial Mechanism 2009-2014 toa specific eneficiary &tate"

2" ,he NMF may6 in consultation with theeneficiary &tate concerned6 carry out e)aluationsof on-going or completed programmes to assess

actual andDor e7pected effects at outcome le)el"

*" ,he results shall be sent to the National Focal+oint6 the Monitoring ommittee and the

*!





+rogramme (perator6 and made public" +rior to publication6 the National Focal +oint and the+rogramme (perator shall be gi)en the opportunityto pro)ide comments"

Chapter 10:

()ternal !onitoring an" a*"its

/rticle 10.1

()ternal !onitoring

Githout pre'udice to the monitoring carried out bythe National Focal +oint or the +rogramme

(perator6 the NMF may select programmes for e7ternal monitoring" ,he NMF shall inform the National Focal +oint and the +rogramme (perator about any planned monitoring two wees inad)ance"

/rticle 10.2

The ffice of the /*"itor General of

5ora#

,he (ffice of the uditor 3eneral of Norway mayconduct audits of all programmes and pro'ectsfunded by the Norwegian Financial Mechanism2009-2014 as well as the management of the Norwegian Financial Mechanism 2009-2014 in the

eneficiary &tate" ,he eneficiary &tates>representati)es shall6 upon re;uest6 accompany theauditors and pro)ide them with all the necessaryassistance"

/rticle 10.3

/*"its an" onthespot verifications

arrange" b# the 5,/

1" Githout pre'udice to the audits carried out by theudit uthority6 the NMF may arrange audits and

on-the-spot )erifications of programmes and

pro'ects6 and to )erify the effecti)e functioning of the management and control systems in theeneficiary &tate" ,he National Focal +oint>srepresentati)es shall6 upon re;uest6 accompany theauthorised representati)es of the NMF and

pro)ide them with all necessary assistance"

2" ,he NMF shall6 e7cept in urgent cases6 gi)etwo wees> notice to the National Focal +oint and

the +rogramme (perator concerned before an auditor on-the-spot )erification is carried out"

*" ,he National Focal +oint and the +rogramme

(perator shall be gi)en an opportunity to pro)ide

comments to an audit report before it is finalised"

/rticle 10.4

/ccess

,he persons performing audits or on-the-spot)erifications according to this chapter shall uponre;uest be granted prompt6 full6 and unimpededaccess to all information6 documents6 persons6

locations and facilities6 public or pri)ate6 rele)ant tothe audit or the )erification" &uch access shall be

sub'ect to the applicable limitations under nationallegislation of the eneficiary &tate" ,he auditorsshall en'oy the same rights as those e7tended toe;ui)alent authorities of the eneficiary &tate itself"

Chapter 11:

-rreg*larities

/rticle 11.1

esponsibilities relate" to irreg*larities

1" ,he eneficiary &tate and the +rogramme(perator shall mae e)ery effort possible to pre)ent6 detect6 and nullify the effect of any cases

of irregularities" &imilarly6 any suspected and actualcases of irregularities shall be in)estigated promptly and efficiently6 and properly remedied6including maing any financial corrections thatmay be appropriate"

2" %nduly paid amounts shall be reco)ered andreimbursed in accordance with the programmeagreements and this Regulation"

/rticle 11.2

efinition of irreg*larities

n irregularity shall mean an infringement ofA

a: the legal framewor of the NorwegianFinancial Mechanism 2009-2014 referred to inrticle 1"4B

b: any pro)ision of $uropean %nion lawB or

c: any pro)ision of the national law of theeneficiary &tate6

which affects or pre'udices any stage of theimplementation of the Norwegian FinancialMechanism 2009-2014 in the eneficiary &tate6 in particular6 but not limited to6 the implementationandDor the budget of any programme6 pro'ect or other acti)ities financed by the Norwegian

Financial Mechanism 2009-20146 for instance byun'ustified or disproportionate e7penditure6 or byreducing or losing re)enue under the programmeandDor the pro'ect"

*9





/rticle 11.3

(ntities responsible for reporting

1" n appropriate national public entity to beresponsible for the preparation and submission of irregularities reports on behalf of the eneficiary&tate shall be designated and agreed upon in the

Mo%"

2" 8rregularities that affect or pre'udice theimplementation of the Norwegian FinancialMechanism 2009-20146 as well as any measurestaen by competent national authorities to pre)ent6

detect6 in)estigate6 or remedy such irregularities6shall be reported by the designated entity to the NMF in accordance with this Regulation and in aformat pro)ided by the NMF nne7 .:"

*" ,he +rogramme (perator shall report to thedesignated entity on all irregularities6 their in)estigation and any remedies taen" ,he+rogramme (perator shall closely co-operate withthe designated entity to ensure rapid6 accurate and

full reporting of irregularities to the NMF"

/rticle 11.4

-!!e"iate reporting on irreg*larities

,he designated entity shall6 regardless of theamounts in)ol)ed6 immediately report to the NMFall suspected and actual cases of irregularities whenany of the following appliesA

a: they in)ol)e allegations of an act or omissionwhich constitutes a criminal offence under thenational legislation of the eneficiary &tate6such as corruption6 fraud6 bribery or embe55lementB

b: they indicate the presence of seriousmismanagement affecting the use of thefinancial contribution from the Norwegian

Financial Mechanism 2009-2014B or

c: they pose an immediate threat to the successfulcompletion of the pro'ect6 due to the amounts

in proportion to the total pro'ect cost6 their

gra)ity or any other reason"

/rticle 11.$

eg*lar reporting on irreg*larities

1" For irregularities other than those referred to inrticle 11"4 or paragraph 1 of rticle 11"6 thedesignated entity shall within two months of theend of each ;uarter6 submit to the NMF a report6

describing any suspected and actual cases of irregularities disco)ered during that ;uarter andwhich ha)e been the sub'ect of a primaryadministrati)e or 'udicial finding"

2" &hould there be no irregularities to report onduring the ;uarter6 the designated entity shall

inform the NMF of this fact within the time limitset in paragraph 1"

*" For the purpose of this article ?primaryadministrati)e or 'udicial finding@ means a firstwritten assessment by a competent authority6 either administrati)e or 'udicial6 concluding on the basis

of specific facts that an irregularity has beencommitted6 without pre'udice to the possibility that

this conclusion may subse;uently ha)e to bere)ised or withdrawn as a result of de)elopments inthe course of the administrati)e or 'udicial procedure"

/rticle 11.6

eporting on progress regar"ing

alrea"# reporte" irreg*larities

1" ,ogether with each report on new irregularitiesreferred to in paragraph 1 of rticle 11".6 thedesignated entity shall report to the NMF on the progress made in the in)estigation and remedy of pre)iously reported irregularities"

2" &hould there be no progress to report on under this article6 the designated entity shall inform the NMF of this fact within the time limit set in paragraph 1 of rticle 11"."

/rticle 11.'

eporting on irreg*larities *pon

re;*est

1" %nless re;uested by the NMF6 the followingcases of irregularities need not be reportedA

a: cases where the irregularity consists solely inthe failure to implement a pro'ect6 in whole or

in part6 owing to the banruptcy of the +ro'ect+romoterB

b: cases brought to the attention of the

+rogramme (perator6 National Focal +oint or ertifying uthority by the +ro'ect +romoter )oluntarily and before detection by any of

them6 whether before or after the payment of the pro'ect grant related to that irregularityB

c: cases which are detected and corrected by the+rogramme (perator6 National Focal +oint or ertifying uthority before any payment to the+ro'ect +romoter of the pro'ect grant and

before inclusion of the e7penditure concernedin an interim financial report or final programme report"

2" +aragraph 1 does not apply to irregularities thatshall be reported immediately according to rticle11"4 or irregularities preceding a banruptcy"

40





*" ,he designated entity shall6 upon re;uest fromthe NMF6 pro)ide information on irregularitiesreferred to in paragraph 1 within one month"

4" ,he designated entity shall eep a registry of irregularities that do not need to be reported to the NMF"

/rticle 11.+

Co!plaint !echanis!

1" ,he eneficiary &tate shall establish a complaintmechanism that shall be capable of effecti)ely

processing and deciding on complaints aboutsuspected non-compliance with the principles of good go)ernance in relation to the implementationof the Norwegian Financial Mechanism 2009-2014in the respecti)e eneficiary &tate"

2" 8nformation on how to submit a complaint shall be prominently placed on the website of the National Focal +oint referred to in paragraph 4c:of rticle 4"*"

*" ,he eneficiary &tate shall without delay reportto the NMF on any complaints in)ol)ingsuspected irregularities referred to in rticle 11"4"omplaints in)ol)ing suspicion of other

irregularities shall be reported to the NMF in thereports referred to in rticles 11". and 11"" ,he NMF shall6 when rele)ant6 be consulted on theappropriate response"

Chapter 12:

S*spension of pa#!ents financial

corrections an" rei!b*rse!ent

/rticle 12.1

S*spension of pa#!ents

1" ,he NMF may decide to suspend payments if one or more of the following appliesA

a: the conditions for payments in accordance withhapter ! ha)e not been metB

b: credible information indicates that the progress

of the programme is not in accordance with the programme agreementB

c: reports referred to in rticle ."11 and hapter

11 or any other information re;uested has not been pro)ided or include incompleteinformationB

d: access re;uired under hapter 10 and the programme agreement is restrictedB

e: the financial management of the programmehas not been in accordance with generallyaccepted accounting principlesB

f: it becomes aware of suspected or actual casesof irregularities6 or such cases ha)e not beenade;uately reported6 in)estigated or remediedB

g: the implementation of the programme isdeemed to be in )iolation of national or $uropean %nion lawB

h: a fundamental change of circumstances occursand said circumstances constitute an essential basis for the financial contribution from the Norwegian Financial Mechanism 2009-2014 tothe programmeB

i: it becomes aware of any misrepresentation of facts in any information gi)en by or on behalf of the National Focal +oint6 ertifying

uthority or the +rogramme (perator affecting6 directly or indirectly6 theimplementation of the programme agreementB

': interests generated on the ban accounts

referred to in rticle !" ha)e not beenaccounted for or reimbursedB

: the procedure under rticle 12"4 has been

openedB or

l: any other obligation stipulated in the programme agreement or this Regulation is not

complied with by the National Focal +oint6 the

ertifying uthority or the +rogramme(perator"

2" ,he NMF may decide to suspend payments to a programme if any of the conditions insubparagraphs b:6 d:6 e:6 f: or g: of paragraph 1apply mutatis mutandis to any of the pro'ects under that programme and the +rogramme (perator hasnot taen the appropriate and necessary measures to

in)estigate and6 when appropriate6 remedy suchdeficiencies or pre)ent loss of funds" &uspensiondue to deficiencies in pro'ects shall be proportionate to the scope and e7tent of the breach"

*" $7cept for urgent cases6 the National Focal +ointand the +rogramme (perator shall be gi)en anopportunity to pro)ide their )iews before the NMF taes a decision to suspend payments" ,hedecision to suspend payments shall be reasoned and

immediately effecti)e" ,he National Focal +ointand the +rogramme (perator shall be notified nolater than se)en worings days from the date of thedecision"

4" ,he National Focal +oint andDor the +rogramme(perator can at any time present documents or other rele)ant e)idence and re;uest that the NMFre)iews its decision to suspend payments"

41





." Ghen the NMF finds that the conditions for suspension no longer apply6 it shall tae a decisionto continue payments"

/rticle 12.2

,inancial corrections

1" 8n addition to financial corrections made by theeneficiary &tate or the +rogramme (perator6 the

NMF may mae financial corrections based on thecriteria in rticle 12"* consisting of cancelling allor part of the financial contribution of the Norwegian Financial Mechanism 2009-2014 to the programme or the eneficiary &tate in ;uestion"

2" Financial contributions cancelled in accordancewith paragraph 1 or with rticle 11"1 may be reusedunder the programme for pro'ects other than thosethat were the sub'ect of the correction" Ghen a

financial correction is made for systemicirregularities or irregularities related tomanagement or control systems within a programme6 the financial contribution may not bereused for that programme"

*" Financial contributions that may6 according to paragraph 26 be reused for the programme withinwhich the irregularities occurred6 shall bereallocated by the +rogramme (perator in

accordance with rticle "9"

4" Financial contributions that may6 according to paragraph 26 not be used for the same programme6

shall be allocated in accordance with paragraph ! of rticle ."9"

." Financial contributions not reallocated accordingto paragraphs * and 4 within the rele)ant timeline

shall be reimbursed to the NMF no later than *1(ctober 201." +aragraph . of rticle 12". shallapply to late reimbursements"

/rticle 12.3

Criteria for financial corrections

1" ,he NMF may mae financial corrections

according to rticle 12"2 if one or more of thefollowing appliesA

a: a serious deficiency e7ists in the managementand control systems established by theeneficiary &tate for the Norwegian Financial

Mechanism 2009-2014 which puts at ris thefinancial contribution from the NorwegianFinancial Mechanism 2009-2014B

b: a serious breach of the programme agreementhas occurredB

c: a serious deficiency e7ists in the management

and control system of the programme which puts at ris the financial contribution from the Norwegian Financial Mechanism 2009-2014B

d: e7penditure reported in a certified interimfinancial report or in a final programme reportis irregular and has not been corrected by the National Focal +oint or the +rogramme(perator prior to the sending of the notification

according to paragraph 1 of rticle 12"4B or

e: the National Focal +oint andDor the +rogramme(perator ha)e not complied with its

obligations to in)estigate andDor remedyirregularities under rticle 11"1 prior to thesending of the notification according to paragraph 1 of rticle 12"4"

2" ,he NMF shall base its financial corrections onindi)idual cases of irregularity identified6 taingaccount of the systemic nature of the irregularity todetermine whether a flat-rate or e7trapolatedcorrection should be applied6 or whether the

corrected amount can be based on an actual amount

detected as irregular"

*" ,he NMF shall6 when deciding the amount of a

correction6 tae account of the nature and gra)ity of the irregularity and the e7tent and financialimplications of the deficiencies found"

/rticle 12.4

%roce"*re

1" +rior to maing a decision referred to in paragraph 1 of rticle 12"26 the NMF shall notifythe National Focal +oint and the +rogramme

(perator of its intention to mae such a decision",he notification shall outline the reasons for thedecision and indicate the rele)ant amounts" ,he National Focal +oint and the +rogramme (perator can within two months from the sending of thenotification pro)ide any documents rele)ant to thedecision"

2" Ghere the NMF proposes a financial correctionon the basis of e7trapolation or at a flat rate6 the National Focal +oint and the +rogramme (perator

shall be gi)en the opportunity to demonstrate6through an e7amination of the documentation

concerned6 that the actual e7tent of the irregularitywas less than the NMF>s assessment" 8n agreementwith the NMF6 the National Focal +oint may limitthe scope of this e7amination to an appropriate

proportion or sample of the documentationconcerned" $7cept in duly 'ustified cases6 the timeallowed for this e7amination shall not e7ceed afurther period of two months after the two-month period referred to in paragraph 1"

*" ,he NMF shall tae account of any e)idencesupplied by the National Focal +oint or the+rogramme (perator within the time limits referredto in paragraphs 1 and 2" t any time prior to the

decision on financial corrections6 the NationalFocal +oint6 the +rogramme (perator and the

42





NMF can enter into a dialogue with a )iew toensuring that the decision is based on accurate andcorrect facts"

4" ,he National Focal +oint and the +rogramme(perator shall be notified of a decision referred toin paragraph 1 of rticle 12"2 no later than se)en

worings days from the date of the decision" ,henotification shall outline the reasons for the

decision"

/rticle 12.$

ei!b*rse!ent

1" ,he eneficiary &tate shall reimburse the amountre;uested to the NMF within three months of thedecision referred to in rticle 12"2"

2" ,he NMF shall wai)e any claim for reimbursement from the eneficiary &tate of fundsthat were sub'ect to irregularities in a pro'ect if the National Focal +oint shows that the loss and thecircumstances related thereto are not due tonegligent performance or non-performance of

duties of entities referred to in paragraphs 1 and 2rticle 4"2 and of the +rogramme (perator>s duties6and the National Focal +oint and the +rogramme(perator ha)e taen all reasonable measures tosee reco)ery of such funds"

*" Reimbursement from the eneficiary &tate to the NMF is not contingent upon reimbursement fromthe +rogramme (perator or the +ro'ect +romoter"

4" 8f the +rogramme (perator is a pri)ate entity andthe National Focal +oint shows that it has and istaing appropriate measures to reco)er the fundsfrom the +rogramme (perator6 the NMF may

decide to gi)e the eneficiary &tate up to one year to reimburse the re;uested funds" 8n such a case6 the NMF may also decide to contribute up to .0C of reasonable legal fees related to the reco)ery of thefunds from the +rogramme (perator" For the purpose of this paragraph6 a +rogramme (perator is

considered to be a pri)ate entity when less than thema'ority of the )otes at its managerial board

meetings is controlled by public entities6 such as public authorities6 public agencies or companiesfully owned by such authorities or agencies"

." ny delay in reimbursement shall gi)e rise tointerest on account of late payment6 starting on thedue date and ending on the date of actual payment",he rate of such interest shall be one-and-a-half

percentage points abo)e the rate applied by the$uropean entral an in its main refinancingoperations on the first woring day of the month inwhich the due date falls"

/rticle 12.6

General s*spension of pa#!ents to a

Beneficiar# State

1" ,he NMF may6 after ha)ing consulted the National Focal +oint with a )iew to reaching asolution6 suspend all payments to the eneficiary

&tate ifA

a: information or documents obtained by or pro)ided to the NMF indicate the presence of systemic or widespread shortcomingsregarding the management of the financial

contribution from the Norwegian FinancialMechanism 2009-2014 in the eneficiary&tateB or

b: a demand for reimbursement related to anytype of assistance in the eneficiary &tatefinanced by the $$ Financial 8nstrument1999-200*6 the Norwegian or $$ FinancialMechanisms 2004-2009 or the Norwegian or $$ Financial Mechanism 2009-2014 has not

been complied with by the eneficiary &tate"

2" ,he procedures referred to in paragraphs 16 * and4 of rticle 12"4 shall apply mutatis mutandis to

suspension of payments under this article"

Chapter 13:

,inal provisions

/rticle 13.1

<ang*age

1" ll communications between the NMF and theeneficiary &tate shall be in $nglish"

2" (riginal documents in languages other than

$nglish: sent to the NMF shall be accompanied bytranslations into $nglish" ,he eneficiary &tateshall bear full responsibility for the accuracy of thetranslation"

/rticle 13.2

<iabilit#

1" ,he responsibility of the #ingdom of Norwaywith regard to the Norwegian Financial Mechanism

2009-2014 is limited to pro)iding financialcontributions in accordance with the rele)ant programme agreements"

2" No liability to the eneficiary &tate6 +rogramme(perators6 +ro'ect +romoters6 other recipient of grants6 or any third parties is or will be assumed bythe #ingdom of Norway6 the NMF6 or the$uropean Free ,rade ssociation6 including theFM("

4*

regulation norwegian fm 2009-2014 (final)

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