Regulation Norwegian FM 2009-2014 (Final) .

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"0 +rinciples of implementation """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle 1"1 Financial contribution """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle 1"! Management costs of Norway """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle 1"9 Management costs of the 2eneficiary &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 *"* 4ooperation 4ommittee """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle *"4 /onor partnership pro'ects """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle *". Funds for bilateral relations at national le)el """""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle *"0 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 4ommittee """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle 4". 4ertifying uthority """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle 4"0 udit uthority """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle 4"1 Responsibilities of the +rogramme (perator """""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle 4"! &etting up of management and control systems """""""""""""""""""""""""""""""""""""""""""""""""""""""
Chapter $: %rogra!!es ...............................................................................................................16
2
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 ."0 &mall grant schemes within a programme """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle ."1 +rogramme agreement """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle ."! +rogramme implementation agreement """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle ."9 Modification of programmes """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle ."10 &creening by the $uropean 4ommission """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
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 0"1 Modes of selection """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle 0"2 $ligibility of applicants """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle 0"* 4alls for proposals """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle 0"4 &election 4ommittee """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle 0". &election procedures """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle 0"0 4onflict of interest """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle 0"1 +ro'ect contract """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle 0"! +ro'ect partners and partnership agreements """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle 0"9 3rant awarding and reallocation of funds """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
Chapter ': (ligibilit# of e)pen"it*res .........................................................................................2$
rticle 1"1 $ligible e7penditures of a programme """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle 1"2 3eneral principles on the eligibility of e7penditures """""""""""""""""""""""""""""""""""""""""""""""
rticle 1"* $ligible direct e7penditures in a pro'ect """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle 1"4 8ndirect costs in pro'ects 9o)erheads: """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle 1". +urchase of real estate and land """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle 1"0 $7cluded costs """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle 1"1 Funds for bilateral relations """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle 1"! &cholarships and mobility programmes """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle 1"9 4osts for preparation of programmes """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle 1"10 $ligibility of management cost incurred by +rogramme (perator """""""""""""""""""""""""
rticle 1"11 4omplementary action by the +rogramme (perator """"""""""""""""""""""""""""""""""""""""""""""
rticle 1"12 ,echnical assistance to the 2eneficiary &tate """""""""""""""""""""""""""""""""""""""""""""""""""""""""
*
rticle 1"1* +roof of e7penditure """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle 1"14 +eriod of eligibility of e7penditures in pro'ects """""""""""""""""""""""""""""""""""""""""""""""""""""
rticle 1"1. /urability of pro'ects """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle 1"10 +rocurement """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
Chapter +: ,inancial !anage!ent ..............................................................................................32
rticle !"1 4ommon rules for payments """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle !"2 d)ance payments """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle !"* 8nterim payments """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle !"4 +ayment of the final balance """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle !". Forecast of li-ely payment applications """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle !"0 %se of the euro """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle !"1 8nterest """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle !"! ,ransparency and a)ailability of documents """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""
Chapter 9: (val*ations ................................................................................................................ 3$
rticle 9"1 Responsibilities of 2eneficiary &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"0 Reporting on progress regarding already reported irregularities """"""""""""""""""""""""""""
rticle 11"1 Reporting on irregularities upon re;uest """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle 11"! 4omplaint 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"* 4riteria for financial corrections """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle 12"4 +rocedure """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle 12". Reimbursement """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
4
rticle 12"0 3eneral suspension of payments to a 2eneficiary &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"0 +rinciples of implementation """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle 1"1 Financial contribution """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle 1"! Management costs of Norway """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle 1"9 Management costs of the 2eneficiary &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 *"* 4ooperation 4ommittee """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle *"4 /onor partnership pro'ects """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle *". Funds for bilateral relations at national le)el """""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle *"0 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 4ommittee """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle 4". 4ertifying uthority """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle 4"0 udit uthority """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
.
rticle 4"1 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 ."0 &mall grant schemes within a programme """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle ."1 +rogramme agreement """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle ."! +rogramme implementation agreement """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle ."9 Modification of programmes """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle ."10 &creening by the $uropean 4ommission """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
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 0"1 Modes of selection """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle 0"2 $ligibility of applicants """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle 0"* 4alls for proposals """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle 0"4 &election 4ommittee """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle 0". &election procedures """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle 0"0 4onflict of interest """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle 0"1 +ro'ect contract """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle 0"! +ro'ect partners and partnership agreements """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle 0"9 3rant awarding and reallocation of funds """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
Chapter ': (ligibilit# of e)pen"it*res .........................................................................................2$
rticle 1"1 $ligible e7penditures of a programme """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle 1"2 3eneral principles on the eligibility of e7penditures """""""""""""""""""""""""""""""""""""""""""""""
rticle 1"* $ligible direct e7penditures in a pro'ect """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle 1"4 8ndirect costs in pro'ects 9o)erheads: """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle 1". +urchase of real estate and land """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle 1"0 $7cluded costs """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle 1"1 Funds for bilateral relations """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle 1"! &cholarships and mobility programmes """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle 1"9 4osts for preparation of programmes """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
0
rticle 1"10 $ligibility of management cost incurred by +rogramme (perator """""""""""""""""""""""""
rticle 1"11 4omplementary action by the +rogramme (perator """"""""""""""""""""""""""""""""""""""""""""""
rticle 1"12 ,echnical assistance to the 2eneficiary &tate """""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle 1"1* +roof of e7penditure """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle 1"14 +eriod of eligibility of e7penditures in pro'ects """""""""""""""""""""""""""""""""""""""""""""""""""""
rticle 1"1. /urability of pro'ects """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle 1"10 +rocurement """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
Chapter +: ,inancial !anage!ent ..............................................................................................32
rticle !"1 4ommon rules for payments """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle !"2 d)ance payments """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle !"* 8nterim payments """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle !"4 +ayment of the final balance """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle !". Forecast of li-ely payment applications """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle !"0 %se of the euro """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle !"1 8nterest """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle !"! ,ransparency and a)ailability of documents """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""
Chapter 9: (val*ations ................................................................................................................ 3$
rticle 9"1 Responsibilities of 2eneficiary &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"0 Reporting on progress regarding already reported irregularities """"""""""""""""""""""""""""
rticle 11"1 Reporting on irregularities upon re;uest """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle 11"! 4omplaint 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 """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
1
rticle 12"* 4riteria for financial corrections """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle 12"4 +rocedure """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle 12". Reimbursement """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
rticle 12"0 3eneral suspension of payments to a 2eneficiary &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 areas
nne7 2 ,emplate for Mo%
nne7 * ,emplate for &trategic Report
nne7 4 8nformation and +ublicity Re;uirements
nne7 . ,emplate for irregularities reports
nne7 0 ,echnical ssistance
nne7 1 ,emplate for a forecast of li-ely 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 ?2ilateral Research 4ooperation@
nne7 1* ,otal and net financial contributions
!
Chapter 1:
General provisions
/rticle 1.1
S*b&ect !atter
1" ,his Regulation applies to the implementation of
and was adopted in accordance with rticle ! of the
greement between the #ingdom of Norway and
the $uropean %nion on a Norwegian Financial
Mechanism for the period 2009-2014 9hereinafter
referred to as the greement:"
2" ,his Regulation lays down the general rules
go)erning the Norwegian Financial Mechanism
2009-2014 without pre'udice to the pro)isions laid
down in the greement"
/rticle 1.2
0b&ectives
1" ,he o)erall ob'ecti)es of the Norwegian
Financial Mechanism 2009-2014 are to contribute
to the reduction of economic and social disparities
in the $uropean $conomic rea and to strengthen
bilateral relations between Norway and the
2eneficiary &tates through financial contributions
in the priority sectors listed in paragraph 2"
2" ,he financial contributions are a)ailable in the
following priority sectorsA
9a: carbon capture and storageB
9b: green industry inno)ationB
9c: research and scholarshipB
9d: human and social de)elopmentB
9e: 'ustice and home affairsB
9f: promotion of decent wor- and tripartite
dialogue"
*" ,he allocation target for the priority sector listed
in paragraph 29a: shall be at least 20C of the total
allocation" (ne percent of the total allocation to
each 2eneficiary &tate shall be set aside for a fund
for the priority sector listed in paragraph 29f:6 to be
operated by 8nno)ation Norway6 and in accordance
with 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 Norwegian
Financial Mechanism 2009-20146 its
implementation shall be within the programme
areas listed in nne7 1 and agreed upon in the
Mo%"
/rticle 1.3
%rinciple of co1operation
,he ob'ecti)es of the Norwegian Financial
Mechanism 2009-2014 shall be pursued in the
framewor- of close co-operation between Norway
and the 2eneficiary &tates"
/rticle 1.4
The legal fra!e2or3
1" ,his Regulation shall be read in con'unction with
the following documents which6 together with the
Regulation and its anne7es6 constitute the legal
framewor- of the Norwegian Financial Mechanism
2009-2014A
9a: the greement between the #ingdom of
Norway and the $uropean %nion on the
Norwegian Financial Mechanism 2009-2014B
9b: the Memorandum of %nderstanding on the
8mplementation of the Norwegian Financial
Mechanism 2009-2014 9hereinafter referred to
as the Mo%:6 entered into between the
#ingdom of Norway and the 2eneficiary &tateB
9c: the programme agreementsB and
9d: any guidelines adopted by the NMF after
consultation with the 2eneficiary &tates"
2" ,he 2eneficiary &tate shall ensure that any
additional pro)isions applicable to the
implementation of the Norwegian Financial
Mechanism 2009-2014 are -ept to a minimum" ,he
legal framewor- mentioned in paragraph 1 ta-es
precedence o)er any such pro)isions"
/rticle 1.$
4efinitions
1" For the purposes of this Regulation6 the
following terms shall ha)e the meanings assigned
to them hereA
9a: ?udit uthority@A a national public entity6
functionally independent of the National Focal
+oint6 the 4ertifying uthority and the
+rogramme (perator6 designated by the
2eneficiary &tate and responsible for )erifying
the effecti)e functioning of the management
and control system"
9b: ?4ertifying uthority@A a national public entity6
functionally independent of the udit uthority
and the +rogramme (perator6 designated by the
2eneficiary &tate to certify financial
information"
9c: ?/onor partnership pro'ect@A a pro'ect
implemented in close cooperation with a
pro'ect partner whose primary location is in
Norway"
9
9d: ?/onor programme partner@A a public entity in
Norway or an inter-go)ernmental organisation
designated by the NMF ad)ising on the
preparation andDor implementation of a
programme"
9e: ENot used"F
9f: ENot used"F
9g: ?$)aluation@A a systematic6 ob'ecti)e and
independent assessment of the design6
implementation andDor results achie)ed in
programmes and pro'ects with the aim of
determining the rele)ance6 effecti)eness6
efficiency6 economy6 impacts and sustainability
of the financial contribution"
9h: ?Financial Mechanism (ffice@ 9hereinafter
referred to as the FM(:A ,he office assisting
the NMF in managing the Norwegian
Financial Mechanism 2009-2014" ,he FM(6
which is administrati)ely a part of the
$uropean Free ,rade ssociation6 is
responsible for the day-to-day implementation
of the Norwegian Financial Mechanism 2009-
2014 on behalf of the NMF and ser)es as a
contact point"
9i: ?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 a
timely manner so as to allow for correcti)e
action"
9': ?Monitoring 4ommittee@A a committee
established by the National Focal +oint to
re)iew progress in the implementation of the
towards reaching its e7pected outcomes and
ob'ecti)es"
9-: ?National Focal +oint@A a national public entity
designated by the 2eneficiary &tate to ha)e the
o)erall responsibility for reaching the
ob'ecti)es of the Norwegian Financial
Mechanism 2009-2014 and implementing the
Mo%"
9l: ?Net allocation@A the total financial
contribution to a 2eneficiary &tate6 net of
Norway>s management cost referred to in
rticle 1"!"
9m: ?Non-go)ernmental organisation@ 9hereinafter
referred to as N3(:A a non-profit )oluntary
organisation established as a legal entity6
ha)ing a non-commercial purpose6 independent
of local6 regional and central go)ernment6
public entities6 political parties and commercial
organisations" Religious institutions and
political parties are not considered N3(s
9n: ?+rogramme@A a structure setting out a
de)elopment strategy with a coherent set of
measures to be carried out through pro'ects
with the support of the Norwegian Financial
Mechanism 2009-2014 and aimed at achie)ing
agreed ob'ecti)es and outcomes"
9o: ?+rogramme agreement@A an agreement
between the NMF and the National Focal
+oint regulating the implementation of a
particular programme"
9p: ?+rogramme area@A a thematic field within a
priority sector6 with a specific o)erall ob'ecti)e
and specific measurable outcomes"
9;: ?+rogramme grant@A the financial contribution
from Norway to a programme"
9r: ?+rogramme (perator@A a public or pri)ate
entity6 commercial or non-commercial6 as well
as non-go)ernmental organisations6 ha)ing the
responsibility for preparing and implementing a
programme"
9s: ?+rogramme partner@A a public or pri)ate
entity6 commercial or non-commercial6 as well
as non-go)ernmental organisations6 acti)ely
in)ol)ed in6 and effecti)ely contributing to6 the
implementation of a programme"
9t: ?+ro'ect@A an economically indi)isible series of
wor-s fulfilling a precise technical function and
with 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 by
the +rogramme (perator"
9u: ?+ro'ect contract@A an agreement between the
+rogramme (perator and the +ro'ect +romoter
regulating the implementation of a particular
pro'ect"
9): ?+ro'ect grant@A a grant awarded by a
+rogramme (perator to a +ro'ect +romoter to
implement a pro'ect"
9w: ?+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 Norway6
2eneficiary &tates or a country outside the
$uropean $conomic rea that has a common
border with the respecti)e 2eneficiary &tate6 or
any inter-go)ernmental organisation6 acti)ely
in)ol)ed in6 and effecti)ely contributing to6 the
implementation of a pro'ect" 8t shares with the
+ro'ect +romoter a common economic or social
goal which is to be realised through the
implementation of that pro'ect" For donor
partnership programmes falling under the
programme area ?2ilateral Research
4ooperation@6 the term ?pro'ect partner@ is
defined in the nne7 12"
10
97: ?+ro'ect +romoter@A a public or pri)ate entity6
go)ernmental organisations6 ha)ing the
responsibility for initiating6 preparing and
implementing a pro'ect"
9y: ?&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 accountability
and cost efficiency as well as the principles of good
go)ernance6 sustainable de)elopment6 gender
e;uality and e;ual opportunities shall be applied in
all implementation phases of the Norwegian
Financial Mechanism 2009-2014" Norway e7ercises
5ero-tolerance towards corruption"
/rticle 1.'
,inancial contrib*tion
1" 8n accordance with rticle 2 the greement6 the
financial contribution from the Norwegian
Financial Mechanism 2009-2014 shall be I !00
million6 to be made a)ailable for commitment in
annual tranches of I 100 million o)er the period
running from 1 May 2009 to *0 pril 20146
inclusi)e"
2" nnual commitment tranches refers to funds that
may during its respecti)e year and onwards be
made a)ailable for pro'ects6 management costs6
technical assistance6 and other costs related to the
Mechanism 2009-2014"
/rticle 1.+
anage!ent costs of 5or2a#
1" ,he management costs of Norway shall be
co)ered by the financial contribution"
2" Management costs shall includeA
9a: the costs of running the FM(B
9b: the costs lin-ed to the functions of the NMF
related to the Norwegian Financial
MechanismB
9c: the costs related to appraisal6 monitoring6
e)aluation6 reporting6 and auditing performed
by or on behalf of the NMFB
9d: the costs related to the participation of donor
programme partners6 including preparatory
wor- to facilitate donor partnership
programmesB
9e: the costs of 8nno)ation Norway for programme
area ?3lobal Fund for /ecent Gor- and
,ripartite /ialogue@"
*" ,he costs referred to in paragraph 1 are fi7ed at
1".C of the total amount of the financial
contribution"
/rticle 1.9
anage!ent costs of the Beneficiar#
State
3eneral administrati)e costs incurred by the
2eneficiary &tate in relation to the implementation
of the Norwegian Financial Mechanism 2009-2014
shall not be co)ered by the Norwegian Financial
Mechanism 2009-2014" &pecific costs which are
necessary6 clearly identifiable6 and directly and
e7clusi)ely related to the management of the
Norwegian Financial Mechanism 2009-2014 can be
co)ered through technical assistance" ,he eligibility
of such costs is set in rticle 1"12"
/rticle 1.10
6eso*rces for the reserve
1" Norway and the 2eneficiary &tates shall in the
Mo% decide to set aside a reser)e6 consisting of a
minimum of .C of the 2eneficiary &tate>s total
allocation6 for e7ample to react to unforeseen
de)elopments in the 2eneficiary &tate" Not later
than *1 January 201*6 the 2eneficiary &tate shall
submit to the NMF a proposal on the allocation of
the reser)e within the framewor- of the Norwegian
Financial Mechanism 2009-20146 either in the form
of a new programme or as an addition to an e7isting
programme or programmes" ,he NMF shall
decide on the allocation of the reser)e in
accordance with rticle ."* or paragraph ! of
rticle ."96 as appropriate" Norway may in
e7ceptional cases wai)e the re;uirement of a
reser)e according to this paragraph"
2" Norway and the 2eneficiary &tates may agree to
set aside a ma7imum of 10C of the total
contribution from the Norwegian Financial
Mechanism 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'ects
to be funded from this reser)e shall be confirmed in
the Mo%" ,he rules of the Norwegian Financial
Mechanism 2004-2009 shall apply to the
implementation of such pro'ects and the final date
of 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 targeted
implementation Norway shall conclude an Mo%
with each 2eneficiary &tate"
2" ,he Mo% shall establish a framewor- for
cooperation and contain the following elementsA
9a: the designation of national entities in)ol)ed in
the implementation of the Norwegian Financial
Mechanism 2009-2014 and identification of
their functions in the national management and
control structures 9nne7 to the Mo%:"
9b: an implementation framewor- 9nne7 2 to the
Mo%: consisting of the following financial and
substanti)e parametersA
9i: a list of agreed programme areas6 the
financial contribution from the
Norwegian Financial Mechanism 2009-
2014 by programme areaB
9ii: identification of programmes6 their main
focus and outcomes6 as appropriate6 as
well as any specific concerns relating to
target groups6 geographical areas or
other issuesB
9iii: identification of programme operators6
as appropriateB
9i): initiati)es to strengthening the bilateral
relations between Norway and the
2eneficiary &tates6 including the
identification of programme areas in
which donor partnership programmes as
referred 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
9): in specific cases6 the identification of
pre-defined pro'ects to be included in
rele)ant programmesB
9)i: identification of small grant schemes6 as
appropriate"
*" nne7 may be sub'ect to re)iew at the annual
meetings" mendments to nne7 agreed upon at
the annual meetings do not re;uire a formal change
to the Memorandum of %nderstanding" &uch
amendments shall be confirmed through an
e7change of letters between the NMF and the
National Focal +oint"
4" nne7 2 may be changed through an e7change
of letters between the NMF and the National
Focal +oint"
." ,he pro)isions of the Mo% shall be interpreted in
a manner consistent with this Regulation"
0" template for the Mo% is pro)ided in nne7 2"
/rticle 2.2
Strategic 6eport
1" ,he National Focal +oint shall submit to the
NMF an annual report on its implementation of
hereinafter referred to as the &trategic Report" ,he
reporting periods shall follow the calendar year"
2" ,he &trategic Report shall pro)ideA
9a: an assessment of the contribution of the
towards the reduction of social and economic
disparities in the 2eneficiary &tateB
9b: an assessment of the contribution of the
towards strengthening of bilateral relations
with NorwayB
9c: an assessment of the efficiency and the
effecti)eness of the national management and
control structures established in the
2eneficiary &tateB
9d: information on preparation and subse;uent
implementation and progress of the
programmes within the programme areas set
out in the implementation framewor-6
including financial figuresB
9e: the results of audits6 re)iews and e)aluations
carried out6 and the plans for audits6 re)iews
and e)aluations for the ne7t reporting periodsB
9f: the results of monitoring carried out and the
monitoring plan for the ne7t reporting periodB
9g: a summary of actual output and an assessment
of progress towards e7pected outcomes for
each programmeB
9h: an assessment of the implementation of the
communication strategy6 in accordance with
the 8nformation and +ublicity Re;uirements in
nne7 4B and
9i: a summary of irregularities detected and the
measures ta-en as well as a summary of
complaints recei)ed under the complaint
mechanism referred to in rticle 11"!"
*" ,he &trategic Report shall form the basis of
discussions at the annual meeting6 and shall be
sub'ect to appro)al by the NMF at that time" ,he
opinion of the Monitoring 4ommittee in respect of
12
the &trategic Report shall be pro)ided at the annual
meeting by its representati)e"
4" ,he &trategic Report shall be written in $nglish
and submitted to the NMF no later than *1 March
each year"
." ,he final &trategic Report shall be submitted
within si7 months of the NMF>s appro)al of the
last final programme report6 but not later than *1
(ctober 20116 unless e7tensions under paragraphs 4
or . of rticle 1"14 ha)e been granted"
0" ,he template for the &trategic Report is pro)ided
in nne7 *"
/rticle 2.3
/nn*al !eeting
1" n annual meeting shall be held between the
NMF and the National Focal +oint" ,he National
Focal +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 progress
achie)ed o)er the pre)ious reporting period and
agree on any necessary measures to be ta-en"
*" ,he timing of the annual meeting shall be set out
in the Mo%" 8f the date is later than *1 ugust6 the
2eneficiary &tate shall submit a brief update of the
&trategic Report two wee-s prior to the annual
meeting"
4" Representati)es of the udit uthority6
4ertifying uthority6 Monitoring 4ommittee6
+rogramme (perators and the representati)es of the
Norwegian $mbassy in the 2eneficiary &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 the
main issues set out in the &trategic Report" ,he
draft agenda shall be sent with the &trategic Report6
and the agenda>s final )ersion shall be agreed upon
between the NMF and the National Focal +oint at
least one wee- before the meeting"
0" /ecisions ta-en at the annual meeting shall be
set out in the agreed minutes" ,he National Focal
+oint is responsible for the drafting of the minutes
from the meeting6 summarising the main points and
the action points discussed at the meeting and
following the structure of the agenda" ,hese
minutes shall be decision oriented6 follow-up
oriented and tas- oriented"
1" ,he appro)ed &trategic Report and the minutes
agreed 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 the
audit 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 the
2eneficiary &tates6 the preparation and
Mechanism 2009-2014 shall6 where appropriate6 be
carried out in partnership"
2" +artnership may ta-e the form of donor
partnership programmes andDor donor partnership
pro'ects" 8n addition6 within all programmes funds
shall be set aside for networ-ing and e7change of
-nowledge andDor for the establishment and
de)elopment of partnerships and the preparation of
applications for donor partnership pro'ects"
/rticle 3.2
4onor partnership progra!!es
1" ,he purpose of donor partnership programmes is
to facilitate networ-ing6 e7change6 sharing and
transfer of -nowledge6 technology6 e7perience and
good practices between public entities in Norway
and the 2eneficiary &tates"
2" Norway shall through the Mo% designate one or
more donor programme partners for each
programme area identified according to paragraph
29b:9i): of rticle 2"1" /onor programme partners
can also be agreed upon by the NMF and the
National Focal +oint through an e7change of
letters"
*" ,he donor programme partner9s: shall be in)ited
to ad)ise on the preparation and implementation of
the donor partnership programme"
4" Norway and the 2eneficiary &tates shall in the
Mo% identify the programme areas where all or
part of the funding shall be allocated to donor
partnership programmes dedicated e7clusi)ely to
donor partnership pro'ects"
." /onor partnership programmes falling under the
+rogramme rea ?2ilateral Research 4ooperation@
shall be established and implemented in accordance
with this Regulation and nne7 12" ,he following
articles of this Regulation shall not apply to such
programmesA
9a: rticle *"* 94ooperation 4ommittee:B
1*
9b: rticle 0"1 9Modes of selection:B
9c: rticle 0"* 94alls for proposals:B
9d: rticle 0"4 9&election 4ommittee:B
9e: rticle 0". 9&election procedures:B
9f: rticle 1"1* 9+roof of e7penditure:B
9g: rticle !"2 9d)ance payments:B and
9h: rticle !"* 98nterim payments:"
/rticle 3.3
Cooperation Co!!ittee
1" ,he +rogramme (perator of a donor partnership
programme shall establish a 4ooperation
4ommittee6 consisting of representati)es from the
+rogramme (perator and the donor programme
partner9s:" ,he 4ooperation 4ommittee shall
pro)ide ad)ice on the preparation and
implementation of the programme" ,he
4ooperation 4ommittees shall be chaired by a
representati)e of the +rogramme (perator"
Representati)es of the NMF and the National
Focal +oint shall be in)ited to participate as
obser)ers"
2" ll documents presented to and produced by the
4ooperation 4ommittee shall be in $nglish" ,he
4ommittee meetings shall be conducted in $nglish"
*" ,he tas-s of the 4ooperation 4ommittee includeA
9a: ad)ising on selection criteria and the te7ts for
call9s: for proposalsB
9b: ad)ising on possible pro'ect partners in
NorwayB
9c: re)iewing progress made towards achie)ing
the outcome9s: and ob'ecti)e9s: of the
programmeB
9d: e7amining the results of the implementation of
the programmeB
9e: re)iewing the annual programme reportsB and
9f: ad)ising the +rogramme (perator of any
re)ision of the programme li-ely to facilitate
the achie)ement of the programme>s e7pected
outcome9s: and ob'ecti)e9s:"
/rticle 3.4
4onor partnership pro&ects
+ro'ects may be prepared and implemented in
cooperation with one or more legal entity in
Norway" Gith reference to the ob'ecti)es of the
related to bilateral relations6 the +rogramme
(perator shall encourage and facilitate the
establishment of such partnerships"
/rticle 3.$
,*n"s for bilateral relations at national
level
1" ,he 2eneficiary &tate shall set aside a minimum
of 0".C of the 2eneficiary &tate>s total allocation
for a fund to facilitate outreach and networ-ing
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 be
co)ered by the fund under this paragraph is detailed
in rticle 1"1"
2" ,he National Focal +oint shall manage the use of
the funds mentioned in paragraph 1 and report on
the use of them in the &trategic Report" ,he first
date of eligibility for support under this article shall
be the date of the last signature of the Mo% with the
respecti)e 2eneficiary &tate"
*" +ayment claims from the National Focal +oint
related to this fund shall be submitted with payment
claims for the technical assistance in accordance
with paragraph ! of rticle 1"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
9a: the search for pro'ect partners from Norway
prior to or during the preparation of a pro'ect
applicationB
9b: the de)elopment of such partnershipsB and
9c: the preparation of an application for a donor
partnership pro'ect"
2" ,he eligibility of e7penditures to be co)ered by
the fund under paragraph 1 is detailed in paragraph
1 of rticle 1"1"
*" ,he +rogramme (perator shall within each
programme set aside a share of the programme
budget for a fund to facilitate networ-ing6
e7change6 sharing and transfer of -nowledge6
technology6 e7perience and best practices between
+ro'ect +romoters and entities in Norway"
4ontributions from the fund shall be a)ailable to
appro)ed pro'ects within the programme to which
the pro'ect belongs6 whether these pro'ects are
donor partnership pro'ects or not6 as an additional
source 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 1"1"
14
4" ,he combined allocation to the funds referred to
in 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 the
re;uirement for either of the funds referred to in
paragraphs 1 and *"
0" ,he applicable rules on state aid and public
procurement shall be complied with" ,he selection
procedures and criteria for awarding support from
these funds6 the grant rate and the ma7imum grant
amount 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 2eneficiary &tate shall be responsible for the
management and control of programmes" ,he
management and control systems established by the
2eneficiary &tate for the Norwegian Financial
Mechanism 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
9a: the definition of the functions of the entities
concerned in management and control and the
allocation of functions within each entityB
9b: compliance with the principle of separation of
functions between and within such entitiesB
9c: procedures for ensuring the correctness and
regularity of e7penditureB
9d: reliable accounting6 monitoring and financial
reporting systems in computerised formB
9e: a system of reporting and monitoring where the
responsible entity entrusts the e7ecution of
tas-s to another entityB
9f: arrangements for auditing the functioning of
the systemsB
9g: systems and procedures to ensure an ade;uate
audit trailB and
9h: reporting and monitoring procedures for
irregularities and for the reco)ery of amounts
unduly paid"
*" ,he 2eneficiary &tate shall comply with the
re;uirements defined by the NMF for submitting
information electronically"
/rticle 4.2
4esignation of national entities
1" ,he 2eneficiary &tate shall in the Mo% designate
the following entities for the implementation of the
Norwegian Financial Mechanism 2009-2014A
9a: a National Focal +ointB
9b: a 4ertifying uthorityB
9c: an udit uthorityB and
9d: an appropriate national public entity
responsible for the preparation and submission
of irregularities reports"
2" ,he National Focal +oint shall establish a
Monitoring 4ommittee"
*" Norway and the 2eneficiary &tate may in the
Mo% decide that the National Focal +oint6 in
addition to its tas-s referred to in rticle 4"*6 ta-es
on the tas-s of the 4ertifying uthority under
rticle 4"." &uch arrangements shall ne)ertheless
ensure the ade;uate functional separation of tas-s
related to payments from other tas-s within the
National Focal +oint" 8f such arrangements are
agreed 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 ta-es 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)erall
responsibility for reaching the ob'ecti)es of the
Norwegian Financial Mechanism 2009-2014 as
well as for the implementation of the Norwegian
Financial Mechanism 2009-2014 in the 2eneficiary
&tate" 8t shall ser)e as a contact point and be
responsible and accountable for the implementation
of the Mo%"
2" ,he National Focal +oint represents the
2eneficiary &tate in its relations with the NMF
regarding the implementation of the Norwegian
Financial Mechanism 2009-2014 in the 2eneficiary
&tate"
*" ,he National Focal +oint shall guide the wor- of
the Monitoring 4ommittee" ,he National Focal
+oint shall collect from the +rogramme (perator6
and pro)ide the Monitoring 4ommittee with6 the
documents re;uired to permit the implementation
1.
of the programmes to be monitored in light of their
specific e7pected outcome9s: and ob'ecti)e9s:"
4" Gith the aim of highlighting the role of the
Norwegian Financial Mechanism 2009-2014 and to
ensure that assistance from the mechanism is
transparent6 the National Focal +oint shall pro)ide
information on the e7istence in the 2eneficiary
&tate of the Norwegian Financial Mechanism 2009-
20146 its ob'ecti)es 9including cooperation with
Norwegian entities:6 implementation and o)erall
impact" ,his will be pro)ided in accordance with
the 8nformation and +ublicity Re;uirements in
nne7 46 in particular through the following
measuresA
9a: a communication strategy for the Norwegian
Financial Mechanism 2009-2014B
9b: at least three ma'or information acti)ities on
Mechanism 2009-20146 such as a seminar or a
conference with sta-eholders6 a press
conference or press e)ent6 including a
launching e)ent and a closing e)ent for the
and
9c: a dedicated website on the Norwegian
Financial Mechanisms 2009-2014 in the
language9s: of the 2eneficiary &tate and in
$nglish6 with information on all programmes6
bilateral relations with Norway related to the
an o)er)iew of calls for proposals6 contact
information and rele)ant documents"
." ,he National Focal +oint shall ensure that the
+rogramme (perators fulfil their information and
publicity obligations in accordance with this
Regulation and the 8nformation and +ublicity
Re;uirements in nne7 4"
0" ,he National Focal +oint shall ensure that the
programmes are implemented in accordance with
this Regulation and monitor the progress and
;uality of their implementation" ,o this end6 the
National Focal +oint may ta-e the action it deems
necessary and compatible with this Regulation6
including to )erify the ;uality and content of any
documents pro)ided to the NMF through the
National Focal +oint and re;uest the necessary
modification to such documents"
1" ,he National Focal +oint shall carry out regular
monitoring of the programmes with regards to their
progress towards the programme outcome9s: and
ob'ecti)e9s: 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 be
further specified in the Mo%"
/rticle 4.4
onitoring Co!!ittee
1" ,he National Focal +oint shall establish a
Monitoring 4ommittee for the Norwegian Financial
Mechanism 2009-2014 within si7 months from the
date of the signing of the Mo%"
2" ,he Monitoring 4ommittee shall be chaired by a
representati)e of the National Focal +oint" 8ts
composition shall include representati)es from
rele)ant ministries local and regional authorities6
ci)il society6 the social partners and6 where
rele)ant6 the pri)ate sector"
*" ,he NMF shall be in)ited to participate in the
meetings of the Monitoring 4ommittee as an
obser)er"
4" ,he Monitoring 4ommittee shall satisfy itself as
to the effecti)eness and ;uality of the
Mechanism 2009-20146 in accordance with the
following pro)isionsA
9a: it shall periodically re)iew progress made
towards 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
9b: it shall e7amine the results of implementation6
particularly the achie)ement of the outputs as
well as the progress towards e7pected
outcome9s: and ob'ecti)e9s: set for
programmes6 and of the e)aluations referred to
in 4hapter 9B
9c: it shall assess and prepare an opinion on the
&trategic ReportsB
9d: it may propose to the National Focal +oint any
re)ision or e7amination of the implementation
framewor- in nne7 2 to the Mo% li-ely to
ma-e possible the attainment of the Norwegian
Financial Mechanism 2009-2014 ob'ecti)es
referred to in rticle 1"2 or to impro)e its
management6 including its financial
management"
/rticle 4.$
Certif#ing /*thorit#
1" ,he 4ertifying uthority shall be responsible in
particular forA
9a: submitting to the NMF certified interim
financial reports and final programme reports
referred to in rticles !"* and ."126
respecti)ely6 certifying thatA
10
9i: the summary of eligible e7penditure
submitted by the +rogramme (perator is
in full conformity with the supporting
documentsB
9ii: the supporting documents ha)e been
e7amined and found to be authentic6
correct and accurateB
9iii: the summary of eligible e7penditure is
based on )erifiable accounting which is
in compliance with generally accepted
accounting principles and methodsB
9i): the summary of eligible e7penditure
falls within eligible e7penditure under
this RegulationB
9): the summary of e7penditure is incurred
as part of the implementation of the
+rogramme in accordance with the
programme agreementB
9)i: sufficient audit trail e7istsB and
9)ii: co-financing committed to the
programme has been paid"
9b: submitting to the NMF a forecast of li-ely
payment applications as referred to in rticle
!".B
9c: declaring to the NMF any interest earned as
referred to in rticle !"1B
9d: ta-ing account for certification purposes of the
results of all audits carried out by or under the
responsibility of the udit uthorityB
9e: maintaining accounting records in
computerised form of e7penditure declared to
the NMFB
9f: ensuring that payments are transferred to the
+rogramme (perators according to paragraph
2 of rticle !"1B and
9g: ensuring that amounts reco)ered and amounts
withdrawn following cancellation of all or part
of the financial contribution for a programme
or pro'ect are reimbursed to the NMF prior to
the closure of the programme"
2" &ub'ect to contrary pro)ision of the national law
of the 2eneficiary &tate6 the 4ertifying uthority
shall ensure the establishment and maintenance of a
separate interest-bearing ban- account dedicated to
/rticle 4.6
/*"it /*thorit#
1" ,he udit uthority shall be responsible in
particular forA
9a: ensuring that audits are carried out to )erify the
effecti)e functioning of the management and
control system at the le)el of the 2eneficiary
&tateB
9b: ensuring that at least one audit is carried out of
each programme to )erify the effecti)e
functioning of its management and control
systemB
9c: ensuring that audits are carried out on pro'ects
on the basis of an appropriate sample to )erify
e7penditure declaredB
9d: presenting to the NMF within nine months of
the appro)al of the programme an audit
strategy6 the method to be used6 the sampling
method for audits on pro'ects and the
indicati)e planning of audits to ensure that
audits are spread e)enly throughout the
programming periodB
9e: by *1 /ecember each year from 2012 to 2011A
9i: submitting to the NMF an annual audit
report setting out the findings of the audits
carried out during the pre)ious 12 month-
period ending on *0 June of the year
concerned in accordance with the audit
strategy of the programme and reporting
any shortcomings found in the systems for
the management and control of the
programme" ,he first report to be
submitted by *1 /ecember 2012 shall
co)er the period up to *0 June 2012" ,he
information concerning the audits carried
out after 1 July 2011 shall be included in
the final audit report supporting the
closure declaration referred to in
subparagraph 9f:B
9ii: 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 control
system functions effecti)ely6 so as to
pro)ide a reasonable assurance that
statements of actual e7penditure incurred
presented to the NMF are correct and as
a conse;uence reasonable assurance that
the underlying transactions are legal and
regularB
9f: submitting to the NMF at the latest by *1
/ecember 2011 a closure declaration assessing
the )alidity of the application for payment of
the final balance claimed in the final
programme report"
2" Ghere the udit uthority chooses not to carry
out audits according to paragraphs 19a: through 9c:6
it shall appoint an independent and certified auditor
to perform these tas-s"
*" ,he udit uthority shall ensure that the audit
complies with internationally accepted audit
standards"
11
4" ,he NMF shall pro)ide its comments on the
audit strategy presented under paragraph 19d: no
later than three months from receipt thereof" 8n the
absence of comments within this period it shall be
considered to ha)e been accepted"
." &hould the NMF decide to grant e7tensions in
accordance with paragraphs 4 or . of rticle 1"146 it
may modify the dates referred to in this article"
/rticle 4.'
6esponsibilities of the %rogra!!e
0perator
1" ,he +rogramme (perator shall be responsible for
preparing and implementing the programme in
accordance with the principles of economy6
efficiency and effecti)eness and in particular forA
9a: ensuring that pro'ects contribute to the o)erall
ob'ecti)es of the Norwegian Financial
Mechanism 2009-2014 and the specific
programme outcome9s: and ob'ecti)e9s: and
that they comply with this Regulation6 the
programme agreement as well as applicable
national and $uropean %nion law in all
implementation phasesB
9b: collecting applications6 selecting pro'ects to be
funded and signing pro'ect contracts for each
pro'ectB
9c: )erifying the pro'ect outputs and that the
e7penditure declared by the +ro'ects +romoters
has actually been incurred and complies with
this Regulation6 the programme agreement as
well as applicable national and $uropean
%nion lawB
9d: ensuring that payments of the pro'ect grant are
made in a timely mannerB
9e: 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
9f: conducting annual monitoring of a sample of
pro'ects6 selected based on ris- assessment and
including random samplesB
9g: ensuring that the financial contribution is used
e7clusi)ely for the purpose of the programme
and its pro'ects and according to the
programme agreement and that all assets
forming part of the programme are used only
for such purposes as pro)ided for in the
9h: ensuring that there is a system for recording
and storing in computerised form accounting
records for each pro'ect under the programme
and that the data on implementation necessary
for financial management6 reporting6
monitoring6 )erifications6 audits and e)aluation
are collectedB
9i: establishing an organisational structure of the
+rogramme (perator that ensures
independence and functional separation of the
di)ision responsible for )erification of
payment claims from other di)isions
responsible for the implementation of the
programmeB
9': sub'ect to contrary pro)isions of the national
law of the 2eneficiary &tate6 establishing and
maintaining a separate interest-bearing ban-
account dedicated to the funds intended for
regrantingB
9-: ensuring that +ro'ect +romoters maintain either
a separate accounting system or an ade;uate
accounting code for all transactions relating to
the pro'ect without pre'udice to national
accounting rulesB
9l: ensuring transparency and a)ailability of
documents in accordance with the
re;uirements of rticle !"!B
9m: ensuring that the 4ertifying uthority recei)es
all necessary information on the procedures
and )erifications carried out in relation to
e7penditure for the purpose of certificationB
9n: drawing up and submitting the interim
financial reports6 the annual programme report6
the final programme report and reports on
interests earned in accordance with rticles
."116 ."126 !"*6 !"4 and !"1B
9o: submitting to the 4ertifying uthority a
forecast of li-ely payment applications
necessary for the 4ertifying uthority to fulfil
its obligations in accordance with rticle !".B
9p: ensuring entry of pro'ect-specific statistical
data to maintain the reporting database in
accordance with the +rogramme (perator>s
Manual 9nne7 9:B
9;: ensuring that the NMF and the National Focal
+oint is upon re;uest6 and within reasonable
time6 pro)ided with all documents and
information related to the implementation of
the programme and its pro'ectsB
9r: ensuring that the +ro'ect +romoters are fully
committed and able to implement their
pro'ectsB
9s: ensuring that all necessary and appropriate
measures are ta-en to pre)ent6 detect and
nullify any cases of suspected or actual
irregularities6 that they are in)estigated
promptly and efficiently and properly reported
and remedied6 including ma-ing any financial
corrections that may be appropriateB
1!
9t: ensuring that all rele)ant local6 national and
$uropean %nion legislation 9including6 but not
limited to6 legislation on the en)ironment6
public procurement and state aid: are complied
withB and
9u: complying with any other obligations
stipulated in the programme agreement"
2" ,he +rogramme (perator shall comply with the
8nformation and +ublicity Re;uirements in nne7
4" 8t shall pro)ide information on the e7istence6 the
ob'ecti)es6 and the implementation of the
programme6 as well as on the cooperation with
Norwegian entities6 in particular through the
following measuresA
9a: a communication plan for the programmeB
9b: at least two ma'or information acti)ities on
progress in the programme and its pro'ects6
such as a seminar or a conference with
sta-eholders6 a press conference or press e)entB
and
9c: a dedicated website on the programme in the
language9s: of the 2eneficiary &tate and in
$nglish6 with information on all calls for
proposals and all supported pro'ects6 bilateral
relations between Norway and the 2eneficiary
&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 the
8nformation and +ublicity Re;uirements in nne7
4"
4" ,he +rogramme (perator shall comply with the
re;uirements defined by the NMF for submitting
information electronically"
/rticle 4.+
Setting *p of !anage!ent an" control
s#ste!s
1" 2efore 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 a
detailed description of the management and control
systems6 co)ering in particular the organisation and
procedures ofA
9a: the National Focal +oint6 the 4ertifying
uthority and any other national entities
in)ol)ed in the implementation of the
according to the Mo%B
9b: the udit uthority and any other entities
carrying out audits under its responsibility"
2" Githin si7 months from the submission of the
first interim financial report6 the National Focal
+oint shall submit to the NMF a detailed
description of the management and control systems
of the +rogramme (perator and their functions6
co)ering in particularA
9a: the system for )erification of payment claimsB
9b: the audit and monitoring systemsB
9c: the system for pre)enting6 mitigating6
detecting6 reporting on and remedying
irregularitiesB and
9d: the system established to maintain an audit trail
of 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 the
implementation system of the 2eneficiary &tate and
the +rogramme (perator complies with this
Regulation and generally accepted accounting
principles" ,he report shall assess the
proportionality of the management and control
systems> re;uirements in relation to the
effecti)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 udit
uthority" Ghere the udit uthority chooses not
to carry out audits itself6 it shall appoint an
independent and certified auditor to perform these
tas-s"
." +rior to disbursing the first payment to any
programme6 the NMF shall determine whether the
2eneficiary &tate has complied with paragraph 1 of
this article"
Chapter $:
%rogra!!es
/rticle $.1
%reparation of progra!!es
1" ,he Norwegian Financial Mechanism 2009-2014
is implemented in the 2eneficiary &tates through
programmes" Gith the e7ceptions pro)ided in
paragraph 26 a programme shall fall under not more
than one programme area identified in the Mo%6
sa)e as otherwise agreed between Norway and the
2eneficiary &tate"
2" 8n 2eneficiary &tates recei)ing *C or less of the
total financial contribution from the Norwegian
Financial Mechanism 2009-20146 programmes can
fall under more than one programme area"
19
*" Norway and the 2eneficiary &tates may consult
on possible and specific programmes before a
formal 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 +oint6
submit a formal proposal for each programme to
the NMF within eight months of the date of the
designation of the +rogramme (perator according
to 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 accordance
with the +rogramme (perators> Manual 9nne7 9:
and limited to the ob'ecti)e and the e7pected
outcomes of the rele)ant programme area as
outlined in nne7 1"
/rticle $.2
%rogra!!e proposals
1" ,he purpose of a programme proposal is to
describeA
9a: the substanti)e and operati)e competence of
the programme operatorB
9b: the main features of the programmeB
9c: the programme>s contribution to the o)erall
ob'ecti)e and e7pected outcomes of the
rele)ant programme areaB and
9d: the details in respect of the implementation of
the programme6 including financial planning as
well as ris- assessment and mitigation"
2" +rogramme proposals shall be in the format and
contain the information re;uired in the template for
programme proposals 9attachment 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 and
complies with the legal framewor- of the
national and $uropean %nion law"
2" ,he NMF shall ma-e a decision on each
programme no later than four months following the
receipt of all rele)ant documents and necessary
information"
*" ,he NMF may decide toA
9a: appro)e the programme without conditionsB
9b: appro)e the programme with conditionsB
9c: appro)e the programme in a modified formB or
9d: re'ect the programme"
4" ,he NMF shall not re'ect a programme without
gi)ing the +rogramme (perator an opportunity to
remedy the deficiencies of the programme"
." &hould a programme be re'ected by the NMF6
the +rogramme (perator may6 through the National
Focal +oint6 resubmit once a re)ised programme
proposal within four months from the date of the
re'ection" ,he National Focal +oint may6 as an
alternati)e and within the same deadline6 propose
that the funds intended for the re'ected programme
be used for another programme6 pro)ided that such
reallocation is compatible with the Mo%" 8f the
recei)ing programme has already been appro)ed6
such 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 Financial
Mechanism 2009-2014 shall not e7ceed !.C of
eligible e7penditure of the programme6 e7cept forA
9a: donor partnership programmesB
9b: programmes operated by the FM(6 inter-
go)ernmental organisations or Norwegian
entities in accordance with rticle ."1*B and
9c: other programmes of special interest"
where the NMF may set a higher programme
grant rate"
2" ,he ma7imum pro'ect grant rate shall be
proposed in the programme proposal and
determined in the programme agreement" 8t shall
ta-e into account the need to ensure +ro'ect
+romoters> commitment and ownership6 as well as
sustainability of the pro'ect" Ghen proposing the
pro'ect grant rate6 the +rogramme (perator shall
further ta-e into account any economic benefit6 e"g"
cost sa)ings or increased profit6 which is a result
from recei)ing a financial contribution" $conomic
benefits shall be used in a manner which supports
the ob'ecti)es of the pro'ect" ,he applicable rules
on state aid6 procedural and substanti)e6 shall be
complied with"
*" 8n case of support to N3(s and social partners
the pro'ect grant rate may be up to 90C of eligible
e7penditure of the pro'ect and up to 100C for
scholarships"
4" 4o-financing under paragraphs 1 to * shall be in
the 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 in
accordance with salary normally paid for such wor-
in the 2eneficiary &tate6 including the re;uired
social security contributions" ,he prices may )ary
depending on region in which the wor- is
performed or the type of )oluntary wor-6 and may
be ad'usted during the implementation of the
+rogramme in order to ta-e into account changes in
salaries"
0" 8n case of pro'ects under donor partnership
programmes falling under the programme area
?2ilateral Research 4ooperation@6 in--ind
contribution in the form of labour may constitute up
to 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 accordance
with salary normally paid for such labour in the
2eneficiary &tate6 including the re;uired social
security contributions" ,he prices may )ary
depending on region in which the labour is
performed or the type of labour6 and may be
ad'usted during the implementation of the
+rogramme in order to ta-e into account changes in
salaries"
1" ,he amount of grant assistance applied for within
a programme shall normally not be less than I
160006000 and6 without pre'udice to paragraph !6 in
no cases less than I 1106000"
!" ,he +rogramme (perator may propose a lower
threshold in the following casesA
9a: programmes under the programme areas
?3lobal Fund for /ecent Gor- and ,ripartite
/ialogue@6B
9b: small grants referred to in rticle ."06 funds for
bilateral relations referred to in rticles *". and
*"0B and
9c: scholarships and research pro'ects"
/rticle $.$
Selection of pre1"efine" pro&ects
1" 8n addition to any pre-defined pro'ect identified
in the Mo%6 the +rogramme (perator may in
e7ceptional cases propose any pre-defined pro'ects
to 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
9a: bac-ground and 'ustification for the pro'ect
including reference to rele)ant national
prioritiesB
9b: ob'ecti)e and e7pected outcome9s: of the
pro'ectB
9c: information on the +ro'ect +romoterB
9d: the results of feasibility studies when
applicableB
9e: a timetable for implementing the pro'ectB and
9f: the financing plan showing the total planned
financial resources and the planned
*" ,he +rogramme (perator shall6 prior to signing a
pro'ect contract for a pre-defined pro'ect6 appraise
the pro'ect in order to )erify its ;uality and
contribution to the ob'ecti)es of the +rogramme as
well as compliance with $% and national
legislation"
/rticle $.6
S!all grant sche!es 2ithin a
progra!!e
1" ,he +rogramme (perator may in the programme
proposal suggest the establishment of one or more
small grant schemes within a programme"
2" ,he combined allocation to the small grant
scheme9s: shall not be more than 20 C of the
eligible e7penditure of the programme"
*" ,he amount of grant assistance applied for within
a small grant scheme shall not be less than I .6000
and not more than I 2.06000" &cholarships to
natural persons may be for less than I .6000"
4" ,he small grant scheme9s: shall normally be
managed and implemented by the +rogramme
(perator" ,he +rogramme (perator may sub-
contract to one or more public or pri)ate entities6
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 the
responsibility of the +rogramme (perator for the
programme" ,he management costs of a small grant
scheme shall be counted as part of the management
costs of the +rogramme (perator in respect of the
ceiling referred to in paragraph 2 of rticle 1"10"
." 8n cases where the +rogramme (perator sub-
contracts the management and implementation of a
small grant scheme6 the selection of the small grant
scheme operator by the +rogramme (perator shall
be made in compliance with public procurement
rules" ,he small grant scheme operator shall
21
pro)ide guarantees of its sol)ency and competence
in the domain concerned as well as in
administrati)e and financial management"
0" ,he pro)isions of this Regulation applicable to
the +rogramme (perator shall be applicable
mutatis 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 programme
agreement shall be concluded between the NMF
and the National Focal +oint"
2" ,he programme agreement sets out the terms and
conditions of the operation of the programme as
well as the roles and responsibilities of the parties"
*" ,he programme agreement template is pro)ided
in nne7 10"
/rticle $.+
%rogra!!e i!ple!entation agree!ent
1" For each appro)ed programme a programme
implementation agreement shall be concluded
between the National Focal +oint and the
+rogramme (perator"
2" 8n cases where a programme implementation
agreement cannot6 due to pro)isions in the national
legislation6 be made between the National Focal
+oint and the +rogramme (perator6 the 2eneficiary
&tate may instead issue a legislati)e or
administrati)e act of similar effect and content"
*" ,he programme implementation agreement shall
set out the terms and conditions of the operation of
the programme as well as the roles and
responsibilities of the parties" 8t shall in particular
include pro)isions that ensure that the +rogramme
(perator underta-es to comply fully with the
pro)isions of the legal framewor- of the Norwegian
Financial Mechanism 2009-2014 referred to in
rticle 1"4 that are rele)ant for the operation of the
programme6 including any obligation that are )alid
after the programme has been completed" ,he
programme implementation agreement shall
contain an e7plicit reference to the programme
agreement and this Regulation and6 as a minimum6
pro)isions on the followingA
9a: obligations regarding reporting that
enables the National Focal +oint to comply
with its reporting obligations to the NMFB
9b: obligations related to the +rogramme
(perator>s reporting obligations to the NMF
and the 4ertifying uthority and its duty to
pro)ide documents upon re;uestB
9c: the ma7imum amount of the
programme grant and its brea-down between
the items listed in rticle 1"1B
9d: the eligibility of e7pendituresB
9e: the first and final dates of eligibility of
e7pendituresB
9f: modifications of the programmeB
9g: ensuring that the access re;uested in
relation to monitoring6 audits and e)aluations
is pro)ided without delayB
9h: ensuring that obligations regarding
publicity are complied withB
9i: the right of the National Focal +oint to
suspend payments and re;uest reimbursement
from the +rogramme (perator in case decision
on such actions is ta-en by the NMF or the
National Focal +ointB
9': that termination of the +rogramme
greement referred to in rticle ."1 may result
in a termination of the programme
implementation agreementB and
9-: a reference to programme
partnerships6 if rele)ant"
4" ,he National Focal +oint shall warrant that the
obligations of the +rogramme (perator under the
programme implementation agreement are )alid
and enforceable under the applicable national law
of the 2eneficiary &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 in
rticle ."16 confirm that the programme
implementation agreement complies with the
minimum standards set in paragraph * of this
article"
0" 4onfirmation according to paragraph . is strictly
limited to declaring that the obligation under
paragraph * is met and shall neither be construed to
imply any opinion or guarantees on the
completeness6 )alidity or enforceability of the
programme implementation agreement6 nor result
in any responsibility by the NMF for any
deficiencies6 incompleteness or inaccuracies of the
programme implementation agreement"
/rticle $.9
o"ification of progra!!es
1. Unless otherwise explicitly stipulated
in the programme agreement, any
22
modifcation of the programme is subject
to prior approval by the NM!.
". #rogrammes may be modifed, in
particular in one or more of the following
cases$
9a: in order to respond to unforeseen e)ents in the
2eneficiary &tatesB
9b: in order to ta-e into account the conclusions of
the re)iew of the implementation framewor- at
an annual meetingB
9c: in order to ta-e into account conclusions from
an e)aluation referred to in 4hapter 9B
9d: when changes are necessary to enhance the
impact of the programmeB or
9e: in order to mitigate ris-s andDor
implementation difficulties"
%. &he #rogramme 'perator shall
describe and justify the modifcation, as
well as the li(ely impact on the fnancial
fgures, ris( assessment, outputs and
outcomes of the programme. &he
National ocal #oint shall provide its
provisional approval to the modifcation
proposal.
). &he NM! shall, in consultation with
the National ocal #oint, assess whether
the proposed modifcation amounts to a
substantial change which would re*uire a
screening by the +uropean ,ommission
according to !rticle -.1.. ! substantial
change is assumed to have been
proposed when it a/ects the overall
objective or the outcome of the
programme or when the change con0icts
with recommendations or comments
provided by the +uropean ,ommission as
part of its screening of the programme
proposal.
-. &he NM! shall assess the proposed
modifcation and provide a formal
response no later than two months
following the receipt of all rele)ant documents and
necessary information"
1. !ll modifcations agreed between the
NM! and the National ocal #oint shall
formally be noted at the annual meeting.
2. &he modifcation shall be formalised
through an amendment of the
programme agreement referred to in
!rticle -.2. &he National ocal #oint shall
inform the Monitoring ,ommittee of the
modifcation.
3. 4hould a modifcation of a programme
result in a reduction of the programme
grant, the National Focal +oint may allocate the
amount that becomes a)ailable to other appro)ed
programmes within the 2eneficiary &tate" prior
appro)al of the NMF and of the +rogramme
(perator of the programme recei)ing the funds
shall be re;uired" ,he modification shall be in
compliance with the Mo%" &uch allocation must be
completed and formalised no later than *1 (ctober
2014" ,he +rogramme (perator of the programme
recei)ing the funds shall allocate the funds in
accordance with rticle 0"9"
/rticle $.10
Screening b# the (*ropean Co!!ission
1" ,he $uropean 4ommission shall screen all
programmes and any substantial change9s: in a
programme for their compatibility with the
$uropean %nion>s ob'ecti)es" ,he FM( will
forward the rele)ant documentation to the
$uropean 4ommission"
2" ,he results of the screening6 as well as any
comments issued by the $uropean 4ommission
preceding the conclusion of the screening6 shall be
ta-en 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
9a: the progress in implementing the programme
compared to the plans set out in the programme
agreement andDor the preceding annual
programme report and in achie)ing the
e7pected outputsB
9b: the programme>s contribution to the o)erall
ob'ecti)e and outcomes of the programme areaB
9c: specific details of challenges to
implementation and plans to o)ercome such
challenges6 including any changes to ris-
mitigation measures and financial plansB and
9d: a summary listing of irregularities and of the
measures ta-en 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 be
submitted in the following yearB first annual reports
from other programme shall be submitted in the
second year following their appro)al"
*" ,he NMF shall inform the National Focal +oint
and the +rogramme (perator of its opinion on the
2*
annual programme report within two months of the
date of receipt" 8f the NMF does not respond
within the time limit laid down6 the report shall be
considered to ha)e been accepted"
/rticle $.12
,inal progra!!e report
1" ,he +rogramme (perator shall6 through the
4ertifying uthority6 submit a final programme
report to the NMF and the National Focal +oint as
described in nne7 9" ,he purpose of the report is
to pro)ideA
9a: an o)erall assessment of the implementation of
the programme6 including comparison to the
plans set out in the programme proposal and
any lessons learnedB
9b: an assessment of the programme>s contribution
to the o)erall ob'ecti)e and outcomes of the
programme area upon completion of all
pro'ects and the closure of the programmeB
9c: o)er)iew of irregularities and measures ta-en
to remedy theseB
9d: specific details in respect of meeting andDor
adapting financial plansB and
9e: financial information6 including a calculation
of the final balance referred to in rticle !"4"
2" ,he final programme report shall be forwarded to
the NMF by the 4ertifying uthority6 which shall
certify the financial anne7 to the report in
accordance with rticle 4".6 within three months of
the completion of the last pro'ect under the
programme6 and not later than *0 pril 20116
unless e7tensions under paragraphs 4 or . of rticle
1"14 ha)e been granted"
*" ,he NMF shall re)iew the final programme
report in order to determine whether it fulfils its
formal and substanti)e re;uirements" ,he NMF
shall appro)e the report no later than two months
following the receipt of the report and all rele)ant
documents and necessary information"
/rticle $.13
%rogra!!es operate" b# the ,0.
inter1govern!ental organisations or
5or2egian entities
1" ,he National Focal +oint6 with the consent of the
NMF6 may entrust the operations of a programme
to 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 monitoring6
audits6 irregularities6 suspension of payments and
financial corrections6 reporting6 and publicity6 do
not apply" ,he entrusted +rogramme (perator shall
apply specific rules in this regard6 to ensure
implementation in line with the principles stated in
rticle 1"0"
2" Ghen the FM( acts as a +rogramme (perator6
the implementation of the programme shall
normally be performed by a fund operator6
appointed and contracted by the FM(" ,he roles
and responsibilities of the FM( and the fund
operator shall be go)erned by an implementation
agreement 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 been
entrusted 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 programme
referred 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 the
respecti)e 2eneficiary &tate"
." Ghen a programme is being operated by the
FM(6 an inter-go)ernmental organisation or a
Norwegian entity according to this article6 the
2eneficiary &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 this
4hapter"
2" 2y way of derogation from paragraph 16 pre-
defined pro'ects may be identified without a call for
proposals" &uch pro'ects shall be identified in
accordance with paragraph 29b:9): of rticle 2"1
and rticle ."." 8nformation on such pro'ects shall
be pro)ided in the programme proposal in
accordance 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)e
2eneficiary &tate as well as inter-go)ernmental
organisations operating in the 2eneficiary &tate are
considered eligible applicants of pro'ects"
2" Natural persons who are legal residents of
Norway or of the respecti)e 2eneficiary &tate are
eligible applicants under scholarship programmes
and scholarship components under any programme"
*" ,he +rogramme (perator6 ta-ing into account the
o)erall ob'ecti)es of the Norwegian Financial
Mechanism 2009-2014 and of the programme6 and
with the aim of ensuring targeted implementation6
may propose limitations to the eligibility of
applicants" &uch limitations6 if appro)ed by the
NMF6 shall be e7plicitly stipulated in the
programme agreement"
/rticle 6.3
Calls for proposals
1" 4alls 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 the
estimated timing and amounts of the calls"
2" 4alls for proposals shall as a minimum comply
with the following"
9a: they shall be widely publicised with a )iew to
reach all potential applicants" ,he national6
regional and local media6 as well as specialised
publications and web based tools shall be used
as rele)ant" ny limitation on the publication
shall be 'ustified in the programme proposalB
9b: they shall include a clear and reasonable
deadline6 which shall be at least two months
from the date of the publication of the
announcement6 and an address for submission"
,he announcement shall specify the hour when
the call e7pires6 whether the deadline refers to a
post stamp or actual deli)ery time to the office
of the +rogramme (perator and the permissible
method9s: of deli)ery" ,he announcement must
specify whether one or more copies of the
application are re;uiredB
9c: they shall clearly specify the eligible applicants
and any restrictions6 limitations or e7clusions
that they may be sub'ect toB
9d: they shall contain detailed selection criteria as
well as a scoring chartB
9e: they shall clearly address what -ind of
acti)ities and e7penditure are eligibleB
9f: they shall pro)ide a description of the selection
process and the decision-ma-ing structureB
9g: they shall pro)ide a clear reference or a lin- to
the application form and user guideB
9h: they shall clearly state the total amount
a)ailable through the call6 as well as the
minimum and ma7imum amount of each
pro'ect grantB
9i: they shall contain pro)isions on the payment
modelB
9': they shall clearly state the co-financing
re;uirementsB
9-: they shall pro)ide clear references to further
information6 including a reference to this
Regulation and the guidelines adopted by the
NMF as well as other documentation prepared
by the +rogramme (perator that is rele)ant to
the callB and
9l: 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 language9s:
and in $nglish"
4" ,he NMF and the National Focal +oint shall be
informed of all calls for proposals at least two
wee-s in ad)ance of their announcement6 and6 at
the same time6 be pro)ided with an $nglish
translation of the te7t of each call"
/rticle 6.4
Selection Co!!ittee
1" ,he +rogramme (perator shall establish a
&election 4ommittee that shall recommend the
pro'ects to be funded within the programme" ,he
&election 4ommittee shall consist of at least three
persons possessing the rele)ant e7pertise" t least
one of them shall be e7ternal to the +rogramme
(perator"
2" ,he NMF and the National Focal +oint shall be
in)ited to participate in the meetings of the
&election 4ommittee as obser)ers" 8n donor
partnership programmes the donor programme
partner shall be in)ited to participate in the
meetings of the &election 4ommittee in an ad)isory
capacity"
*" ,he +rogramme (perator shall pro)ide
interpretation assistance for &election 4ommittee
meetings when necessary" ,he &election 4ommittee
shall -eep minutes of its meetings" ,he NMF shall
be pro)ided with a summary of the minutes in
$nglish no later than two wee-s after the meeting"
4" 8n donor partnership programmes dedicated
e7clusi)ely to donor partnership pro'ects6 the
&election 4ommittee shall consist of an e;ual
number of members appointed by the +rogramme
2.
(perator and the donor programme partner" ,he
wor-ing language of such &election 4ommittees6 as
well as the language of pro'ect applications and
other documents rele)ant to its wor-6 shall be
$nglish"
/rticle 6.$
Selection proce"*res
1" ,he +rogramme (perator shall re)iew the
applications for compliance with administrati)e and
eligibility criteria" pplicants whose applications
are re'ected at this stage shall be informed and
gi)en a reasonable time to appeal that decision"
2" $ach application that meets the administrati)e
and eligibility criteria shall be re)iewed by two
independent 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 by
the donor programme partner" 4osts related to
e7perts shall be co)ered from the management cost
of the +rogramme (perator"
*" ,he e7perts shall separately score the pro'ect
according to the selection criteria published with
the call for proposals" For the purposes of ran-ing
the pro'ects6 the a)erage of the scores awarded by
the 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 a
third e7pert shall be commissioned by the
+rogramme (perator to score the pro'ect
independently" 8n such cases the a)erage score of
the two closest scores shall be used for the ran-ing
of the pro'ects"
." ,he +rogramme (perator shall pro)ide the
&election 4ommittee with a list of pro'ects ran-ed
in accordance with paragraphs * and 4" 8t shall at
the same time pro)ide the NMF with the ran-ed
list in $nglish" ,he &election 4ommittee shall
re)iew the ran-ed list of pro'ects" 8t may modify the
ran-ing of the pro'ects in 'ustified cases" ,he
'ustification for the modifications shall be detailed
in the minutes of the meeting of the &election
4ommittee" 8f such a modification results in a
pro'ect>s re'ection6 the affected applicant shall be
informed in writing about the 'ustification for the
modification" ,he &election 4ommittee shall
submit the list of recommended pro'ects to the
+rogramme (perator"
0" ,he +rogramme (perator shall )erify that the
selection process has been conducted in accordance
with the Regulation and that the recommendations
from the &election 4ommittee comply with the
rules and ob'ecti)es of the programme" Following
such )erification the +rogramme (perator shall6
based on the decision of the &election 4ommittee6
ma-e a decision on which pro'ects shall be
supported" 8f the +rogramme (perator modifies the
decision of the &election 4ommittee6 it shall inform
the applicants affected and pro)ide them with a
'ustification"
1" ,he +rogramme (perator shall notify the
applicants 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 already
established and used successfully" ,he NMF may
appro)e the use of such procedures only if it
determines that they duly respect the principles of
transparency6 efficiency and ;uality" 8f appro)ed by
the NMF6 the procedures shall be described in the
9" ,he +rogramme (perator shall store all
documents 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 9e"g" independent e7perts6 members of
&election 4ommittees6 staff in)ol)ed in re)iew of
compliance with administrati)e and eligibility
criteria: 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 the
selection process" &uch interests may be related to
economic interests6 political or national affinities6
family or emotional ties6 other shared interests with
the applicant or its partner6 or any other interests
liable to influence the impartial and ob'ecti)e
performance of the person in)ol)ed in the selection
of pro'ects"
2" ,he +rogramme (perator shall ta-e e)ery
reasonable measure to pre)ent a conflict of interest
situation from occurring" 8f a conflict of interest
situation ne)ertheless occurs6 the +rogramme
(perator shall ta-e 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 and
the +ro'ect +romoter"
2" 8n cases where a pro'ect contract cannot6 due to
pro)isions in the national legislation6 be made
20
between the +rogramme (perator and the +ro'ect
+romoter6 the 2eneficiary &tate may instead issue a
legislati)e or administrati)e act of similar effect
and content"
*" ,he pro'ect contract sets out the terms and
conditions 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 underta-es to comply fully with
the pro)isions of the legal framewor- of the
referred to in rticle 1"4 that are rele)ant for the
implementation of the pro'ect6 including any
obligation that is )alid after the pro'ect has been
completed" ,he pro'ect contract shall contain an
e7plicit reference to the programme agreement and
this Regulation and6 as a minimum6 pro)isions on
the followingA
9a: obligations regarding reporting that enables the
+rogramme (perator to comply with its
reporting obligations to the NMF and the
National Focal +ointB
9b: the ma7imum amount of the pro'ect grant in
euro and the ma7imum pro'ect grant rateB
9c: the eligibility of e7pendituresB
9d: the method of calculating indirect costs and its
ma7imum amountB
9e: the first and final dates of eligibility of
e7pendituresB
9f: modifications of the pro'ectB
9g: ensuring that the access re;uested in relation to
monitoring6 audits and e)aluations is pro)ided
without delayB
9h: ensuring that obligations regarding publicity
are complied withB
9i: the right of the +rogramme (perator to
suspend payments and re;uest reimbursement
from the +ro'ect +romoter in case decision on
such actions is ta-en by the NMF6
+rogramme (perator or the National Focal
+ointB
9': resolution of disputes and 'urisdictionB
9-: a detailed budget6 with itemised costs and unit
prices6 and which may allow for up to .C
contingencyB and
9l: a reference to partnership agreements or letters
of 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 9$4:
No 1900D2000 of the $uropean +arliament and of
the 4ouncil of 1! /ecember 2000"
." ,he obligations of the +ro'ect +romoter under the
pro'ect contract shall be )alid and enforceable
under the applicable national law of the 2eneficiary
&tate"
0" ,he +rogramme (perator may re;uest the
NMF to confirm that the pro'ect contract template
complies with the minimum standards set in
paragraph * of this article"
1" 4onfirmation according to paragraph 0 is strictly
limited to declaring that the obligation under
paragraph * is met and shall neither be construed to
imply any opinion or guarantees on the
completeness6 )alidity or enforceability of the
pro'ect contract6 nor result in any responsibility by
the 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 partnership
with pro'ect partners as defined in rticle 1"."19w:"
8f a pro'ect is implemented in such a partnership6
the +ro'ect +romoter shall sign a partnership
agreement with the pro'ect partners"
2" ,he partnership agreement shall contain the
followingA
9a: pro)isions on the roles and responsibilities of
the partiesB
9b: pro)isions on the financial arrangements
between the parties6 including6 but not limited
to6 which e7penditure the pro'ect partners can
get reimbursed from the pro'ect budgetB
9c: pro)isions on the method of calculating
indirect costs and their ma7imum amountB
9d: currency e7change rules for such e7penditure
and its reimbursementB
9e: pro)isions on audits on the pro'ect partnersB
9f: a detailed budget6 with itemised costs and unit
pricesB and
9g: pro)isions on dispute resolution"
*" +artnership agreements 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
9$4: No 1900D2000 of the $uropean +arliament and
of the 4ouncil of 1! /ecember 2000"
21
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 as
would apply if the e7penditures were incurred by
the +ro'ect +romoter"
0" ,he creation and implementation of the
relationship between the +ro'ect +romoter and the
pro'ect partner shall comply with the applicable
national and $uropean %nion law on public
procurement as well as rticle 1"10 of this
Regulation"
1" ,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 with
this article"
/rticle 6.9
Grant a2ar"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 to
additional acti)ities of already appro)ed pro'ects6
pro)ided that these additional acti)ities contribute
to the ob'ecti)es of the pro'ects recei)ing the
additional funds"
2" ny decision to reallocate pro'ect grants to
already appro)ed pro'ects shall be based on
recommendations by the &election 4ommittee" ,he
&election 4ommittee shall base its
recommendations on transparent and ob'ecti)e
criteria" 2y applying these criteria6 the &election
4ommittee shall ensure e;ual treatment of all
+ro'ect +romoters but may in 'ustified cases gi)e
priority toA
9a: certain geographical regions lagging behindB
and
9b: a clearly defined group of less pri)ileged
+ro'ect +romoters"
*" ,he criteria shall be made a)ailable on the
website of the +rogramme (perator no later than
one month prior to any decision to reallocate funds
according to paragraph 2" +ro'ect +romoters shall
be informed in writing without delay when such
criteria 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
9a: management costs of the +rogramme (perator
in accordance with the detailed budget anne7ed
to the programme agreement and rticle 1"10B
9b: payments to pro'ects within the programme in
accordance with this Regulation6 the
programme agreement and the pro'ect contractB
9c: e7penditure of funds for bilateral relations in
accordance with rticle 1"1B
9d: complementary action of the +rogramme
(perator in accordance with rticle 1"11B
9e: e7penditure related to the preparation of a
programme proposal in accordance with
rticle 1"9B and
9f: e7penditure related to the mitigation of
e7change rate ris-s in accordance with
paragraph . of rticle !"0 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 apply
mutatis mutandis to all eligible e7penditures unless
otherwise e7plicitly stated in this Regulation"
2" $ligible e7penditures of pro'ects are those
actually incurred by the +ro'ect +romoter6 which
meet the following criteriaA
9a: they are incurred between the first and final
dates of eligibility of a pro'ect as specified in
the pro'ect contractB
9b: they are connected with the sub'ect of the
pro'ect contract and they are indicated in the
estimated o)erall budget of the pro'ectB
9c: they are proportionate and necessary for the
implementation of the pro'ectB
9d: they must be used for the sole purpose of
achie)ing the ob'ecti)e9s: of the pro'ect and its
e7pected outcome9s:6 in a manner consistent
with the principles of economy6 efficiency and
effecti)enessB
9e: they are identifiable and )erifiable6 in
particular through being recorded in the
accounting records of the +ro'ect +romoter and
determined according to the applicable
accounting standards of the country where the
2!
+ro'ect +romoter is established and according
to generally accepted accounting principlesB
and
9f: they comply with the re;uirements of
applicable ta7 and social legislation"
*" $7penditures are considered to ha)e been
incurred when the cost has been in)oiced6 paid and
the sub'ect matter deli)ered 9in case of goods: or
performed 9in case of ser)ices and wor-s:"
$7ceptionally6 costs in respect of which an in)oice
has been issued in the final month of eligibility are
also deemed to be incurred within the dates of
eligibility if the costs are paid within *0 days of the
final date for eligibility" ()erheads and
depreciation of e;uipment are considered to ha)e
been incurred when they are recorded on the
accounts of the +ro'ect +romoter"
4" ,he +ro'ect +romoter>s internal accounting and
auditing procedures must permit direct
reconciliation of the e7penditures and re)enue
declared in respect of the pro'ect with the
corresponding accounting statements and
supporting documents"
/rticle '.3
(ligible "irect e)pen"it*res in a pro&ect
1" ,he eligible direct e7penditures for a pro'ect are
those e7penditures which are identified by the
+ro'ect +romoter andDor the pro'ect partner6 in
accordance with their accounting principles and
usual internal rules6 as specific e7penditures
directly lin-ed to the implementation of the pro'ect
and which can therefore be boo-ed to it directly" 8n
particular6 the following direct e7penditures are
eligible pro)ided that they satisfy the criteria set out
in rticle 1"2A
9a: the cost of staff assigned to the pro'ect6
comprising actual salaries plus social security
charges and other statutory costs included in
the remuneration6 pro)ided that this
corresponds to the +ro'ect +romoter>s and
pro'ect partner>s usual policy on remuneration"
,he corresponding salary costs of staff of
national administrations are eligible to the
e7tent that they relate to the cost of acti)ities
which the rele)ant public authority would not
carry out if the pro'ect concerned were not
underta-enB
9b: tra)el and subsistence allowances for staff
ta-ing part in the pro'ect6 pro)ided that they
are in line with the +ro'ect +romoter>s and
pro'ect partner>s usual practices on tra)el costs
and do not e7ceed the rele)ant national scalesB
9c: cost of new or second hand e;uipment6
pro)ided that it is depreciated in accordance
with generally accepted accounting principles
applicable to the +ro'ect +romoter and
generally accepted for items of the same -ind"
(nly the portion of the depreciation
corresponding to the duration of the pro'ect
and the rate of actual use for the purposes of
the pro'ect may be ta-en into account by the
+rogramme (perator6 e7cept where the nature
andDor the conte7t of its use 'ustifies different
treatment by the +rogramme (perator" ,he
application of such e7ceptions shall be
regulated in the programme agreement and
shall comply with the applicable rules on state
aidB
9d: purchase of land and real estate under the
conditions set in rticle 1".B
9e: costs of consumables and supplies6 pro)ided
that they are identifiable and assigned to the
pro'ectB
9f: costs entailed by other contracts awarded by a
+ro'ect +romoter for the purposes of carrying
out the pro'ect6 pro)ided that the awarding
complies with the applicable rules on public
procurement and this RegulationB and
9g: costs arising directly from re;uirements
imposed by the pro'ect contract for each
pro'ect 9e"g" dissemination of information6
specific e)aluation of the action6 audits6
translations6 reproduction:6 including the costs
of any financial ser)ices 9especially the cost of
financial guarantees:"
2" 8n e7ceptional and duly 'ustified cases6 the
+rogramme (perator may in its programme
proposal suggest additional e7penditures to be
eligible or e7clude certain e7penditure listed in
paragraph 1" &uch de)iations6 if appro)ed by the
/rticle '.4
-n"irect costs in pro&ects 9overhea"s:
1" 8ndirect costs are all eligible costs that cannot be
identified by the +ro'ect +romoter andDor the
pro'ect partner as being directly attributed to the
pro'ect but which can be identified and 'ustified by
its accounting system as being incurred in direct
relationship with the eligible direct costs attributed
to the pro'ect" ,hey may not include any eligible
direct costs" 8ndirect costs of the pro'ect shall
represent a fair apportionment of the o)erall
o)erheads of the +ro'ect +romoter or the pro'ect
partner" ,hey may be identified according to one of
the following methodsA
9a: based on actual indirect costs for those +ro'ect
+romoters and pro'ect partners that ha)e an
analytical accounting system to identify their
indirect costs as indicated abo)eB
29
9b: a +ro'ect +romoter and pro'ect partners may
opt for a flat rate of up to 20C of its total direct
eligible costs6 e7cluding its direct eligible costs
for subcontracting and the costs of resources
made a)ailable by third parties which are not
used on the premises of the +ro'ect +romoterB
or
9c: in case of a pro'ect implemented within a
research programme or within a research
component within any programme6 the +ro'ect
+romoter and pro'ect partners that are non-
profit public bodies6 secondary and higher
education establishments6 research
organisations and &M$s6 which6 due to the lac-
of analytical accounting6 are unable to identify
with certainty their real indirect costs for the
pro'ect6 may opt for a flat-rate of up to 00C of
the total direct eligible costs6 e7cluding its
direct eligible costs for subcontracting and the
costs 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 status
during 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 that
ha)e identified their indirect costs in a manner
comparable to paragraph 19a: under the si7th or
se)enth Framewor- +rogramme of the $uropean
4ommission cannot ma-e use the methods
described in paragraphs 19b: or 9c:"
*" ,he application of the methods described in
paragraphs 19b: and 9c: is sub'ect to the pro)ision
of a certification according to paragraph 4 of
rticle 1"1*"
4" ,he method of calculating the indirect costs and
its ma7imum amount shall be determined in the
pro'ect contract" ,he method of calculation of
indirect costs of a pro'ect partner shall be stipulated
in the partnership agreement between the +ro'ect
+romoter and the pro'ect partner"
." 8n e7ceptional and duly 'ustified cases6 the
+rogramme (perator may in its programme
proposal suggest restricting the eligibility of
indirect costs" &uch restrictions6 if appro)ed by the
/rticle '.$
%*rchase of real estate an" lan"
1" ,he cost of purchase of real estate6 meaning
buildings constructed or under de)elopment and the
appropriate 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 the
application of stricter national rulesA
9a: there shall be a direct lin- between the
purchase and the ob'ecti)es of the pro'ectB
9b: purchase of real estate andDor land may not
represent more than 10C of the total eligible
e7penditure of the pro'ect6 unless a higher
percentage is e7plicitly authorised in the
programme agreement and set in the decision
to award the pro'ect grant"
9c: a certificate shall be obtained prior to the
purchase from an independent ;ualified
e)aluator or duly authorised official entity
confirming that the purchase price does not
e7ceed the mar-et )alue and that it is free of all
obligations in terms of mortgage and other
liabilities6 particularly in respect of damage
related to pollution" 8n case of purchase of real
estate the certificate must either confirm that
the building in ;uestion is in conformity with
national regulations6 or specify what is not in
conformity with national regulations but which
is to be rectified by the +ro'ect +romoter under
the pro'ectB
9d: the real estate andDor the land shall be used for
the purpose and for the period specified in the
decision to award the pro'ect grant" ,he
ownership 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 real
estate andDor the land cannot be sold6 rented6 or
mortgaged within fi)e years of the completion
of the pro'ect6 or longer if stipulated in the
pro'ect contract" ,he NMF may wai)e this
restriction if it would result in an unforeseen
and unreasonable burden on the +ro'ect
+romoterB
9e: the real estate andDor land may only be used in
conformity with the ob'ecti)es of the pro'ect"
8n particular6 buildings may be used to
accommodate public administration ser)ices
only where such use is in conformity with the
ob'ecti)e of the pro'ectB and
9f: the purchase of real estate andDor land shall be
e7plicitly 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 19d:
apply also to buildings that are constructed or
reconstructed through a financial contribution from
*" ,he mortgage restriction referred to in paragraph
19d: does not apply to a mortgage ta-en in fa)our
of the +rogramme (perator or the National Focal
*0
+oint when its purpose is solely to ensure
compliance with the said paragraph"
4" $7penditure on site preparation and construction
which is essential for the implementation of the
pro'ect may be eligible"
." ,he cost of real estate andDor land already
owned6 directly or indirectly6 by the +ro'ect
+romoter6 or purchase of real estate andDor land
owned6 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 real
estate andDor the land shall not ha)e recei)ed a
national or e7ternal donor grant in the last 10 years
which would gi)e rise to a duplication of funding"
/rticle '.6
()cl*"e" costs
1" ,his article shall apply mutatis mutandis to all
costs unless otherwise e7plicitly stated in this
Regulation"
2" ,he following costs shall not be considered
eligibleA
9a: interest on debt6 debt ser)ice charges and late
payment chargesB
9b: charges for financial transactions and other
purely financial costs6 e7cept costs related to
accounts 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
9c: pro)isions for losses or potential future
liabilitiesB
9d: e7change losses6 e7cept losses co)ered by a
pro)ision e7plicitly appro)ed by the NMF for
each programmeB
9e: reco)erable K,B
9f: costs that are co)ered by other sourcesB
9g: fines6 penalties and costs of litigationB and
9h: e7cessi)e or rec-less e7penditure"
/rticle '.'
,*n"s for bilateral relations
1" ,he following categories of e7penditure are
eligible for funds referred to in rticle *". and
paragraph 1 of rticle *"0A
9a: fees and tra)el costs for participation in
conferences6 seminars6 courses6 meetings and
wor-shopsB
9b: tra)el costs for study tripsB
9c: tra)el and salary costs for )isits by e7pertsB
9d: costs related to feasibility studies and
preparation of financial and economic analysisB
9e: costs of conferences6 seminars6 courses6
meetings and wor-shopsB
9f: purchase of data necessary for the preparation
of the applicationB and
9g: e7ternal consultancy fees"
2" ,ra)el costs according to paragraph 1 include
subsistence allowance in accordance with
paragraph 19b: of rticle 1"*"
*" ,he categories of e7penditure referred to in
paragraphs 19a: to 9c: are eligible for funds referred
to in paragraph * of rticle *"0"
/rticle '.+
Scholarships an" !obilit# progra!!es
1" 3rants to natural persons from a scholarship
programme or from the scholarship component
under any programme6 may be calculated as a lump
sum" $ligible items areA
9a: monthly stipendB
9b: allocation for study materialB
9c: tra)el costs6 insurance and conference feesB and
9d: tuition fees"
2" ,he +rogramme (perator responsible for a
scholarship programme or a scholarship component
within any programme shall specify any unit
amounts in the programme proposal" ,he
determination of the amounts shall ta-e into
account the reasonable costs in the area of the host
institution"
/rticle '.9
Costs for preparation of progra!!es
1" 4osts incurred by the +rogramme (perator
directly related to the preparation of a programme
appro)ed by the NMF may be eligible" ,he
following categories of preparation costs may be
eligible6 pro)ided that the e7penditure is
proportionate6 necessary and directly related to the
preparation of the programmeA
9a: salaries of the staff of the +rogramme (perator
assigned e7clusi)ely to the preparation of the
programmeB
9b: tra)el and subsistence allowance e7clusi)ely
related to the preparation of the programmeB
9c: costs related to feasibility studies or other
necessary supporting documents6 including
e7pert feesB
*1
9d: costs related to translation of the programme
proposal together with supporting documents
into $nglishB
9e: preparation for public procurement and
compliance with state aid rulesB and
9f: costs related to public consultation"
2" ,he first date of eligibility of costs under this
article shall be the date when the National Focal
+oint6 in accordance with paragraph 4 of rticle
4"26 designates the +rogramme (perator" ,he last
date of eligibility shall be the day when the
programme proposal is recei)ed by the NMF" 2y
way of derogation from paragraph * of rticle 1"26
costs 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 programme
in the programme proposal" ,he ma7imum amount
of eligible costs under this article shall be set in the
programme agreement and not e7ceed 0".C of the
total eligible costs of the programme or I 10060006
whiche)er is lower"
4" 4osts related to preparation of programmes shall
be claimed with the first interim financial report on
a format pro)ided by the NMF 9nne7 11:" ,he
claim shall be certified by the 4ertifying uthority
in accordance with rticle 4"."
/rticle '.10
(ligibilit# of !anage!ent cost inc*rre"
b# %rogra!!e 0perator
1" ,he management cost of a +rogramme (perator
up to a ceiling set in paragraph 2 may be considered
as eligible costs" ,he first date of eligibility of
e7penditures of managements cost of a +rogramme
(perator shall be on the date when the NMF
appro)es the programme" Githout pre'udice to
paragraphs 4 and . of rticle 1"146 the final date of
eligibility shall be the *0 pril 2011 unless an
earlier date is specified in the programme
agreement"
2" ,he ma7imum management cost of a programme
shall be calculated as a percentage of the total
eligible e7penditures of the programme" 8t shall be
the sum of the following amountsA
9a: 10C of the first I 10 millionB
9b: 1C of the ne7t I 40 millionB
9c: .C of the ne7t I .0 millionB
9d: 4C of the remaining total eligible e7penditures
of the programme"
*" ,he following categories of e7penditure are
eligible as management costs6 pro)ided that the
e7penditure is proportionate and necessaryA
9a: preparation of the implementation of the
programme6 including the de)elopment of
procedures for pro'ect selection and financial
flowsB
9b: assisting possible applicants and +ro'ect
+romoters in complying with the re;uirements
set by the +rogramme (perator for pro'ect
applications andDor the implementation of
pro'ectsB
9c: selection of pro'ects6 including costs of e7perts6
costs related to the operation of the &election
4ommittee6 and appealsB
9d: )erification of payment claims and transfers of
payments to +ro'ect +romotersB
9e: monitoring of pro'ects and re)iewsB
9f: audits and on-the-spot )erification of pro'ectsB
9g: promotional and information acti)ities6
including calls for proposals and information
wor- during the application period as well as
information e)ents to share e7periences and
e)aluate the impact of the programmeB
9h: e7penditures related to reporting obligations to
the NMF6 the National Focal +oint andDor the
4ertifying uthorityB
9i: charges related to the establishment and
operation of ban- accounts re;uired under this
Regulation or the programme agreement6
including costs of incoming and outgoing
transfersB and
9': o)erheads6 calculated in accordance with
paragraphs 19a: or 9b: of rticle 1"46 as
appropriate6 and sub'ect to the re;uirements in
paragraph 4 of rticle 1"1*"
4" 8n cases where the selection of the +rogramme
(perator in the 2eneficiary &tate is conducted
through a competiti)e tendering procedure6 the
NMF can in the programme agreement6 decide
that the contract )alue shall be accepted as
management costs in lieu of actually incurred
e7penditures" ,he ceilings set out in paragraph 2
shall apply"
/rticle '.11
Co!ple!entar# action b# the
%rogra!!e 0perator
1" 4omplementary action consists of acti)ities that
are organised by the +rogramme (perator and
contribute to the ob'ecti)e9s: of the programme
with the primary aim ofA
*2
9a: strengthening co-operation between the
+rogramme (perators and similar entities
within the 2eneficiary &tates and NorwayB and
9b: e7changing e7periences and best practices
related to the implementation of the
programme"
2" ,he following categories of complementary
action may be eligible6 pro)ided that the
e7penditure is proportionate and necessaryA
9a: costs of e)ents6 such as rent of facilities6
interpretation6 tra)el costs6 subsistence
allowance6 and publicity costs directly related
to the e)entB and
9b: salaries6 tra)el costs and subsistence allowance
of personnel of entities other than the
+rogramme (perator that are directly in)ol)ed
in the complementary action6 and of personnel
of the +rogramme (perator when such cost can
be clearly separated from costs related to the
management of the programme"
*" For costs of complementary action to be eligible
the action must ha)e been e7plicitly appro)ed by
the NMF and the costs specified in the detailed
budget of the programme6 anne7ed to the
programme agreement" 4osts of complementary
action may not e7ceed an amount e;ual to 20C of
the management costs for the programme"
/rticle '.12
Technical assistance to the Beneficiar#
State
1" 4osts incurred by 2eneficiary &tates in relation
to the implementation of the Norwegian Financial
Mechanism 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 be
eligible costs for technical assistance under the
conditions and limits set out in paragraphs *-!6
pro)ided that the e7penditure is proportionate and
necessaryA
9a: in the case of additional management systems
specifically established for the Norwegian
Financial Mechanism 2009-20146 e7penditure
relating to the preparation6 e)aluation6 financial
flow6 and monitoring of the assistance and of
programmesB
9b: e7penditure on meetings of Monitoring
4ommittees6 preparation of and participation in
annual meetings with Norway6 and other
meetings with the NMF relating to the
implementation of the assistance" ,his
e7penditure may also include the costs of
e7perts and other participants in these
committees6 including third-country
participants6 where the chairperson of such
committees considers their presence essential
to the effecti)e implementation of the
assistanceB
9c: e7penditure on meetings and conferences
organised by the National Focal +oint or the
4ertifying uthority to share e7perience
related to the implementation6 monitoring6
reporting and auditing of pro'ects funded by
the Norwegian Financial Mechanism 2009-
20146 including e7penditure related to tra)el
and accommodation of participants" ,he
NMF shall agree to the agenda of such a
meeting or conference in ad)ance6 and
representati)es of Norway shall be in)ited to
participate in such meetings or conferencesB
9d: e7penditure related to promotional and
information acti)itiesB
9e: e7penditure related to audits referred to in
rticle 4"0 and paragraph * of rticle 4"!B
9f: e7penditure related to on-the-spot )erifications
of programmes and pro'ectsB
9g: e7penditure related to re)iews and e)aluationsB
and
9h: e7penditure related to technical assistance for
Mechanism 2004-2009 incurred during the 12
months following the final date of eligibility
for that technical assistance"
*" $7penditure in the 2eneficiary &tate on salaries6
social security contributions and other statutory
costs6 is eligible only in the following casesA
9a: ci)il ser)ants or other public officials
temporarily assigned6 by duly documented
decision of the competent authority6 to carry
out tas-s referred to in paragraph 2 on an
e7clusi)e and additional basisB
9b: other staff employed to carry out tas-s referred
to in paragraph 2"
4" 4ontributions from the Norwegian Financial
Mechanism 2009-2014 to the e7penditure under
paragraph 2 shall not e7ceed 1".C of the total
contribution to the respecti)e 2eneficiary &tate"
." ,he amount shall be fi7ed in an agreement on
technical assistance between the NMF and the
National Focal +oint"
0" ,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 first
calendar year" No later than *0 &eptember each
year6 the National Focal +oint shall forward to the
**
NMF a detailed budget for the following calendar
year" Ghere the National Focal +oint recei)es
support for technical assistance under both the
Norwegian and $$ Financial Mechanisms6 it shall
prepare one budget co)ering the technical
assistance from both mechanisms"
1" ,he first date of eligibility for support under this
article shall be the date of the last signature of the
Mo% with the respecti)e 2eneficiary &tate" 8f
support for technical assistance is recei)ed under
both the Norwegian and $$ Financial
Mechanisms6 the first date of eligibility of any
funding for technical assistance shall be the date of
the last signature of the whiche)er Mo% is signed
first"
!" rticles ."11 and ."12 and 4hapter ! shall apply
mutatis mutandis to technical assistance"
/rticle '.13
%roof of e)pen"it*re
1" 4osts incurred by +rogramme (perators6 +ro'ect
+romoters and pro'ect partners shall be supported
by receipted in)oices6 or alternati)ely by
accounting documents of e;ui)alent probati)e
)alue"
2" Ghere acti)ities are implemented in the
framewor- 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 partners
shall be 'ustified by e7penditure actually paid by
the entities concerned in implementing the pro'ect"
*" report by an independent and certified auditor6
certifying that the claimed costs are incurred in
accordance with this Regulation6 the national law
and accounting practices of the pro'ect partner>s
country6 shall6 sub'ect to paragraph 06 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 2eneficiary &tate"
4" ()erheads identified according to paragraphs
19b: and 9c: of rticle 1"46 do not need to be
supported by accounting documents" Ne)ertheless6
the +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 the
flat-rate o)erheads represent a fair apportionment
of the o)erall o)erheads of the +ro'ect +romoter
andDor the pro'ect partners6 and that paragraph 2 of
rticle 1"4 does not pre)ent them from applying the
flat-rate methods"
." ,he report referred to in paragraph 4 may be
used 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)e
not changed"
0" ,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"
1" ,he 4ertifying uthority may further define the
methods 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 programme
agreement6 programme implementation agreement6
or 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 same
decision fi7 the final date of eligibility which shall
be no later than either one year after the scheduled
completion 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"
*" $7penditures incurred after *0 pril 2010 shall
not be eligible" 8n respect of the transitional support
to &pain6 the deadline for eligibility of e7penditure
shall be *1 /ecember 201."
4" 8n e7ceptional cases where further delays are
'ustified6 the NMF can e7tend the period of
eligibility to *0 pril 2011" 8n respect of the
transitional support to &pain6 the period of
eligibility can not be e7tended"
." 8f a pro'ect is6 on the final date of eligibility6
sub'ect to 'udicial procedures or administrati)e
appeal with suspensory effects6 the NMF can gi)e
further e7tensions if it deems that such e7tension is
in the interests of the Norwegian Financial
0" 8f a pro'ect has not been completed on its final
date of eligibility6 the +rogramme (perator shall
ensure that funds are made a)ailable to complete
the pro'ect in a timely manner" 8f such funds cannot
be guaranteed6 the +rogramme (perator shall
reimburse to the NMF its financial contribution to
the pro'ect" 8f6 at the date of the final date of
eligibility6 clearly identifiable and )iable
components of the pro'ects ha)e been completed6
the NMF may wai)e6 in full or in part6 its right to
reimbursement"
*4
/rticle '.1$
4*rabilit# of pro&ects
1" ,he +rogramme (perator shall ensure that
pro'ects that in)ol)e in)estment in real estate
andDor land 9including reno)ation: are operational
for at least fi)e years after the +rogramme
(perator>s appro)al of the pro'ect completion
report 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" ,he
determination of this period shall be guided by the
aim of promoting the sustainability of the pro'ect
and of ensuring that the financial support pro)ided
to the pro'ect generates the ma7imum benefits to its
target group and final beneficiaries"
*" ,he 2eneficiary &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'ect
is 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 in
the 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'ect
grant from a programme under the Norwegian
Financial 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$4 of
the $uropean +arliament and of the 4ouncil of *1
March 2004 on the coordination of procedures for
the award of public wor-s contracts6 public supply
contracts and public ser)ice contracts" ,his
paragraph applies mutatis mutandis to pro'ect
partners"
*" +aragraph 2 does not apply to N3(s unless the
amount of the contract is at or abo)e $uropean
%nion thresholds set for public procurement"
4" 8n cases where contracts concluded as part of the
implementation of the +rogramme fall below the
national or $uropean %nion thresholds set for
public procurement or outside the scope of the
applicable public procurement laws6 the awarding
of such contracts 9including the procedures prior to
the awarding: and the terms and conditions of such
contracts shall comply with best economic
practices6 including accountability6 allow a full and
fair competition between potential pro)iders6 for
e7ample by way of effecti)e price comparison6 and
ensure the optimal use of resources from the
Norwegian Financial Mechanism 2009-2014"
." ,he highest ethical standards shall be obser)ed
during the procurement and e7ecution of contracts"
,he +rogramme (perator shall ensure the
application 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 as
an illegal or corrupt practice6 e"g" as an inducement
or reward for the award or e7ecution of
procurement contracts6 shall be accepted"
0" ,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 all
rele)ant conditions for payments stipulated in the
programme agreement and this Regulation ha)e
been fulfilled"
2" +ayments to programmes shall ta-e 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 2eneficiary &tate" &ub'ect to contrary
pro)isions in national law6 the 2eneficiary &tate
shall transfer the payments to the +rogramme
(perator within 1. wor-ing days from reception of
the payment"
*" ,he NMF and the National Focal +oint may
agree 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 and
interim payment to the programme" ,he retained
amount shall not be paid until the final programme
report 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 rata
financing shall apply6 meaning that the payments of
*.
the programme grant from the NMF shall be
matched within one month by payment from the
entity or entities responsible for pro)iding the co-
financing"
0" +ayments of the pro'ect grant to the +ro'ect
+romoters may ta-e 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 programme
agreement"
/rticle +.2
/"vance pa#!ents
1" d)ance payments are the part of the programme
grant necessary to co)er its share of 'ustified
estimated 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)ant
conditions in the programme agreement and this
Regulation ha)e been fulfilled"
2" s from the beginning of the second reporting
period6 the procedure for interim payments set out
in rticle !"* shall apply"
/rticle +.3
-nteri! pa#!ents
1" ,here shall be three reporting periods in each
calendar yearA
9a: 1 January L *0 prilB
9b: 1 May L *1 ugustB and
9c: 1 &eptember L *1 /ecember"
2" 8nterim payments shall be paid based on an
interim financial report submitted by the
+rogramme (perator in a format pro)ided by the
NMF 9nne7 11:6 certified by the 4ertifying
uthority 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 the
following payment datesA 1. pril6 1. ugust and
1. /ecember" &hould a payment date land on a
wee-end or an $F, public holiday6 the payment
shall be made on the ne7t $F, wor-ing day"
4" 8nterim financial reports shall be recei)ed by the
NMF according to the following scheduleA
9a: on6 or before6 1. March for payments to be
made on 1. prilB
9b: on6 or before6 1. July for payments to be made
on 1. ugustB
9c: on6 or before6 1. No)ember for payments to be
made on 1. /ecember"
." +ayment based on an interim financial report
recei)ed after its due date but on6 or before6 the
following due date referred to in paragraph 4 shall
be due as the report would ha)e been recei)ed on
its following due date" 8f an interim financial report
has not been recei)ed within eight months from the
end of the reporting period in which e7penditure
has been incurred by the +rogramme (perator6
pre)iously proposed e7penditure for that period
shall be declared ineligible and cancelled"
0" 8nterim financial reports shall includeA
9a: a statement of actual e7penditure incurred
during the reporting period preceding the
payment dateB and
9b: a statement of proposed e7penditure for the
reporting period immediately following the
payment date"
1" ,he actual incurred e7penditure for the last
reporting 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 the
correct form and that the conditions for payment
ha)e been met" 8f that )erification is positi)e6
interim payments shall be transferred no later than
on 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 proposed
e7penditure for the pre)ious reporting period and
actual e7penditure in that period6 ta-ing into
account any 'ustified unplanned e7penditure in the
reporting period within which the interim financial
report is submitted" ,he NMF may modify the
amount of the interim payment if the proposed
e7penditures are considered to be un'ustified" ,he
NMF shall pro)ide the National Focal +oint6
4ertifying uthority and the +rogramme (perator
with a 'ustification of the modification without
delay"
10" &hould )erification according to paragraph ! be
negati)e6 the NMF6 the National Focal +oint and
the +rogramme (perator shall closely cooperate to
remedy the deficiencies" ,he NMF may
pro)isionally hold interim payments until such
deficiencies ha)e been remedied" Ghen the NMF6
after recei)ing all necessary information6 has
positi)ely )erified interim financial report6 it shall
at the first possible payment date or when it deems
it necessary following that )erification release the
payment due6 unless the NMF decides to ma-e
use of remedies pro)ided in 4hapter 12"
*0
/rticle +.4
%a#!ent of the final balance
1" ,he final balance isA
9a: the total reported eligible e7penditure of the
programme6 ta-ing into account any pre)ious
reimbursements6
9b: less the following amountsA
9i: the total ad)ance and interim payments to
the programme from the NMFB
9ii: any co-financing from sources other than
the Norwegian Financial Mechanism
2009-2014B
9iii: total interest earned until the date of the
final programme report but not reimbursed
to the NMFB and
9i): 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 balance
according to paragraph 1 multiplied by the
programme grant rate"
*" ,he final balance shall be calculated and reported
in the financial anne7 to the final programme report
in a format pro)ided by the NMF 9attachment 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 be
reimbursed 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 li3el# pa#!ent applications
t the latest by 20 February6 20 May6 20 &eptember
and 10 /ecember each year6 the 4ertifying
uthority shall send to the NMF6 in a format
pro)ided by the NMF 9nne7 1:6 a 'ustified
forecast of li-ely payment applications from the
2eneficiary &tate for the remainder of the current
financial year and subse;uent financial years"
/rticle +.6
7se of the e*ro
1" mounts set out in programmes6 interim
financial reports6 annual programme reports and
final programme reports shall be denominated in
euro" +rogramme grants and payments from the
NMF to entities in the 2eneficiary &tate6 shall be
denominated and carried out in euro" ,he amounts
shall be rounded to the nearest euro"
2" +rogramme (perators in 2eneficiary &tates that
ha)e not adopted the euro as their currency on the
date of an application for payment shall con)ert
into euro the amounts of e7penditure incurred in
their national currency" ,his amount shall be
con)erted into euro using the monthly accounting
e7change rate of the $uropean 4ommission in the
month 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
2eneficiary &tate6 the con)ersion procedure set out
in paragraph 2 shall continue to apply to all
e7penditure recorded in the accounts by the
+rogramme (perator before that date"
4" ,he NMF is not responsible for losses resulting
from e7change rate fluctuations"
." ,he +rogramme (perator may in its programme
proposal suggest a reser)e for e7change rate losses
suffered by the +rogramme (perator and the
+ro'ect +romoters" &uch a proposal shall be duly
'ustified and pro)ide a clear and transparent method
of calculating the e7change rate losses and of their
settlement" ,he amount of the reser)e shall not
e7ceed 1C of the total eligible costs of the
+rogramme"
0" ,he +rogramme (perator may at any time6 with
the appro)al of the National Focal +oint6 cancel the
reser)e and ma-e it a)ailable for pro'ects within the
programme" ,he NMF shall be informed before
any arrangements are made to reallocate the funds"
ny decision to reallocate funds to already
appro)ed pro'ects shall be ta-en in accordance with
paragraphs 2 and * of rticle 0"9"
/rticle +.'
-nterest
1" ny interest generated on the following ban-
accounts shall be regarded as a resource for the
NMFA
9a: accounts held in the 2eneficiary &tate on
which funds from the NMF are -ept until
they are transferred to the +rogramme
(peratorsB and
*1
9b: accounts established by the +rogramme
(perator according to paragraph 19': of rticle
4"1 for funds intended for regranting"
2" ,he +rogramme (perator shall annually and no
later than 1 March declare to the 4ertifying
uthority any interest earned on the account
referred to in paragraph 19b:" ,he interest earned
shall be reimbursed to the 4ertifying uthority
within 20 wor-ing days of ha)ing been declared"
*" ,he 4ertifying uthority shall annually and
within three calendar months after year-end declare
to the NMF any interest earned on the accounts
referred to in paragraph 1 in a format pro)ided by
the NMF 9nne7 !:" ,he 4ertifying uthority
shall )erify the correctness of the declared interest"
,he interest earned shall be reimbursed to the
NMF within 1. wor-ing days of ha)ing been
declared"
4" ,he interest earned on accounts referred to in
paragraph 19a: during the year in which the final
&trategic Report is submitted shall be declared by
the 4ertifying uthority to the NMF within one
month of the submission of the final &trategic
Report" ,he interest earned shall be reimbursed to
the NMF within 1. wor-ing days of ha)ing been
declared"
." ,he interest earned on accounts referred to in
paragraph 19b: 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"
0" 2eneficiary &tates that ha)e not adopted the euro
as their currency and use accounts held in the
national currency shall con)ert the interest earned
into euros using the a)erage of the monthly
accounting e7change rates of the $uropean
4ommission" /uring the years referred to in
paragraphs 4 and . the a)erage e7change rate for
the period 1 January to the date of the submission
of the respecti)e reports shall apply"
/rticle +.+
Transparenc# an" availabilit# of
"oc*!ents
1" ,he 2eneficiary &tate shall ensure an audit trail
for financial contributions from the Norwegian
Financial Mechanism 2009-2014 that permitsA
9a: reconciliation of the e7penditure certified by
the 4ertifying uthority in the interim financial
reports and the final programme report and
original supporting documents held at the
)arious administrati)e le)els andDor by the
+rogramme (perator6 the +ro'ect +romoter and
its partnersB and
9b: )erification of the allocation and transfer of the
a)ailable Norwegian Financial Mechanism
2009-2014>s and national financial
contributions"
2" ,he 2eneficiary &tate shall ensure that all the
supporting 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 commonly
accepted 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 years
following the NMF>s appro)al of the final
programme report"
Chapter 9:
(val*ations
/rticle 9.1
6esponsibilities of Beneficiar# States
1" ,he 2eneficiary &tate shall carry out e)aluations
of programmes to assess actual andDor e7pected
effects 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 the
4ertifying 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 Monitoring
4ommittee 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)ide
comments"
/rticle 9.2
6ole of the 5,/
1" ,he NMF may carry out e)aluations related to
the o)erall ob'ecti)es of the Norwegian Financial
Mechanism 2009-20146 ob'ecti)es of programme
areas or e)aluations of the o)erall contribution of
the Norwegian Financial Mechanism 2009-2014 to
a specific 2eneficiary &tate"
2" ,he NMF may6 in consultation with the
2eneficiary &tate concerned6 carry out e)aluations
of 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 4ommittee and the
*!
+rogramme (perator6 and made public" +rior to
publication6 the National Focal +oint and the
+rogramme (perator shall be gi)en the opportunity
to pro)ide comments"
Chapter 10:
()ternal !onitoring an" a*"its
/rticle 10.1
()ternal !onitoring
Githout pre'udice to the monitoring carried out by
the National Focal +oint or the +rogramme
(perator6 the NMF may select programmes for
e7ternal monitoring" ,he NMF shall inform the
about any planned monitoring two wee-s in
ad)ance"
/rticle 10.2
The 0ffice of the /*"itor General of
5or2a#
,he (ffice of the uditor 3eneral of Norway may
conduct audits of all programmes and pro'ects
funded by the Norwegian Financial Mechanism
2009-2014 as well as the management of the
Norwegian Financial Mechanism 2009-2014 in the
2eneficiary &tate" ,he 2eneficiary &tates>
representati)es shall6 upon re;uest6 accompany the
auditors and pro)ide them with all the necessary
assistance"
/rticle 10.3
/*"its an" on1the1spot verifications
arrange" b# the 5,/
1" Githout pre'udice to the audits carried out by the
udit 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 the
2eneficiary &tate" ,he National Focal +oint>s
representati)es shall6 upon re;uest6 accompany the
authorised representati)es of the NMF and
pro)ide them with all necessary assistance"
2" ,he NMF shall6 e7cept in urgent cases6 gi)e
two wee-s> notice to the National Focal +oint and
the +rogramme (perator concerned before an audit
or 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 upon
re;uest be granted prompt6 full6 and unimpeded
access to all information6 documents6 persons6
locations and facilities6 public or pri)ate6 rele)ant to
the audit or the )erification" &uch access shall be
sub'ect to the applicable limitations under national
legislation of the 2eneficiary &tate" ,he auditors
shall en'oy the same rights as those e7tended to
e;ui)alent authorities of the 2eneficiary &tate itself"
Chapter 11:
-rreg*larities
/rticle 11.1
6esponsibilities relate" to irreg*larities
1" ,he 2eneficiary &tate and the +rogramme
(perator shall ma-e e)ery effort possible to
pre)ent6 detect6 and nullify the effect of any cases
of irregularities" &imilarly6 any suspected and actual
cases of irregularities shall be in)estigated
promptly and efficiently6 and properly remedied6
including ma-ing any financial corrections that
may be appropriate"
2" %nduly paid amounts shall be reco)ered and
reimbursed in accordance with the programme
agreements and this Regulation"
/rticle 11.2
4efinition of irreg*larities
n irregularity shall mean an infringement ofA
9a: the legal framewor- of the Norwegian
Financial Mechanism 2009-2014 referred to in
rticle 1"4B
9b: any pro)ision of $uropean %nion lawB or
9c: any pro)ision of the national law of the
2eneficiary &tate6
which affects or pre'udices any stage of the
Mechanism 2009-2014 in the 2eneficiary &tate6 in
particular6 but not limited to6 the implementation
andDor the budget of any programme6 pro'ect or
other acti)ities financed by the Norwegian
Financial Mechanism 2009-20146 for instance by
un'ustified or disproportionate e7penditure6 or by
reducing or losing re)enue under the programme
andDor the pro'ect"
*9
/rticle 11.3
(ntities responsible for reporting
1" n appropriate national public entity to be
responsible for the preparation and submission of
irregularities reports on behalf of the 2eneficiary
&tate shall be designated and agreed upon in the
Mo%"
2" 8rregularities that affect or pre'udice the
Mechanism 2009-20146 as well as any measures
ta-en by competent national authorities to pre)ent6
detect6 in)estigate6 or remedy such irregularities6
shall be reported by the designated entity to the
NMF in accordance with this Regulation and in a
format pro)ided by the NMF 9nne7 .:"
*" ,he +rogramme (perator shall report to the
designated entity on all irregularities6 their
in)estigation and any remedies ta-en" ,he
+rogramme (perator shall closely co-operate with
the 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 the
amounts in)ol)ed6 immediately report to the NMF
all suspected and actual cases of irregularities when
any of the following appliesA
9a: they in)ol)e allegations of an act or omission
which constitutes a criminal offence under the
national legislation of the 2eneficiary &tate6
such as corruption6 fraud6 bribery or
embe55lementB
9b: they indicate the presence of serious
mismanagement affecting the use of the
Financial Mechanism 2009-2014B or
9c: they pose an immediate threat to the successful
completion 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.$
6eg*lar reporting on irreg*larities
1" For irregularities other than those referred to in
rticle 11"4 or paragraph 1 of rticle 11"16 the
designated entity shall within two months of the
end of each ;uarter6 submit to the NMF a report6
describing any suspected and actual cases of
irregularities disco)ered during that ;uarter and
which ha)e been the sub'ect of a primary
administrati)e or 'udicial finding"
2" &hould there be no irregularities to report on
during the ;uarter6 the designated entity shall
inform the NMF of this fact within the time limit
set in paragraph 1"
*" For the purpose of this article ?primary
administrati)e or 'udicial finding@ means a first
written assessment by a competent authority6 either
administrati)e or 'udicial6 concluding on the basis
of specific facts that an irregularity has been
committed6 without pre'udice to the possibility that
this conclusion may subse;uently ha)e to be
re)ised or withdrawn as a result of de)elopments in
the course of the administrati)e or 'udicial
procedure"
/rticle 11.6
6eporting on progress regar"ing
alrea"# reporte" irreg*larities
1" ,ogether with each report on new irregularities
referred to in paragraph 1 of rticle 11".6 the
designated 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.'
6eporting on irreg*larities *pon
re;*est
1" %nless re;uested by the NMF6 the following
cases of irregularities need not be reportedA
9a: cases where the irregularity consists solely in
the failure to implement a pro'ect6 in whole or
in part6 owing to the ban-ruptcy of the +ro'ect
+romoterB
9b: cases brought to the attention of the
+rogramme (perator6 National Focal +oint or
4ertifying 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
9c: cases which are detected and corrected by the
+rogramme (perator6 National Focal +oint or
4ertifying uthority before any payment to the
+ro'ect +romoter of the pro'ect grant and
before inclusion of the e7penditure concerned
in an interim financial report or final
programme report"
2" +aragraph 1 does not apply to irregularities that
shall be reported immediately according to rticle
11"4 or irregularities preceding a ban-ruptcy"
40
*" ,he designated entity shall6 upon re;uest from
the NMF6 pro)ide information on irregularities
referred 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 2eneficiary &tate shall establish a complaint
mechanism that shall be capable of effecti)ely
processing and deciding on complaints about
suspected non-compliance with the principles of
good go)ernance in relation to the implementation
of the Norwegian Financial Mechanism 2009-2014
in the respecti)e 2eneficiary &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 49c:
of rticle 4"*"
*" ,he 2eneficiary &tate shall without delay report
to the NMF on any complaints in)ol)ing
suspected irregularities referred to in rticle 11"4"
4omplaints in)ol)ing suspicion of other
irregularities shall be reported to the NMF in the
reports referred to in rticles 11". and 11"0" ,he
NMF shall6 when rele)ant6 be consulted on the
appropriate 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
9a: the conditions for payments in accordance with
4hapter ! ha)e not been metB
9b: credible information indicates that the progress
of the programme is not in accordance with the
9c: reports referred to in rticle ."11 and 4hapter
11 or any other information re;uested has not
been pro)ided or include incomplete
informationB
9d: access re;uired under 4hapter 10 and the
programme agreement is restrictedB
9e: the financial management of the programme
has not been in accordance with generally
accepted accounting principlesB
9f: it becomes aware of suspected or actual cases
of irregularities6 or such cases ha)e not been
ade;uately reported6 in)estigated or remediedB
9g: the implementation of the programme is
deemed to be in )iolation of national or
$uropean %nion lawB
9h: a fundamental change of circumstances occurs
and said circumstances constitute an essential
basis for the financial contribution from the
Norwegian Financial Mechanism 2009-2014 to
the programmeB
9i: it becomes aware of any misrepresentation of
facts in any information gi)en by or on behalf
of the National Focal +oint6 4ertifying
uthority or the +rogramme (perator
affecting6 directly or indirectly6 the
implementation of the programme agreementB
9': interests generated on the ban- accounts
referred to in rticle !"1 ha)e not been
accounted for or reimbursedB
9-: the procedure under rticle 12"4 has been
openedB or
9l: any other obligation stipulated in the
programme agreement or this Regulation is not
complied with by the National Focal +oint6 the
4ertifying uthority or the +rogramme
(perator"
2" ,he NMF may decide to suspend payments to a
programme if any of the conditions in
subparagraphs 9b:6 9d:6 9e:6 9f: or 9g: of paragraph 1
apply mutatis mutandis to any of the pro'ects under
that programme and the +rogramme (perator has
not ta-en the appropriate and necessary measures to
in)estigate and6 when appropriate6 remedy such
deficiencies or pre)ent loss of funds" &uspension
due to deficiencies in pro'ects shall be
proportionate to the scope and e7tent of the breach"
*" $7cept for urgent cases6 the National Focal +oint
and the +rogramme (perator shall be gi)en an
opportunity to pro)ide their )iews before the
NMF ta-es a decision to suspend payments" ,he
decision to suspend payments shall be reasoned and
immediately effecti)e" ,he National Focal +oint
and the +rogramme (perator shall be notified no
later than se)en wor-ings days from the date of the
decision"
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 NMF
re)iews its decision to suspend payments"
41
." Ghen the NMF finds that the conditions for
suspension no longer apply6 it shall ta-e a decision
to continue payments"
/rticle 12.2
,inancial corrections
1" 8n addition to financial corrections made by the
2eneficiary &tate or the +rogramme (perator6 the
NMF may ma-e financial corrections based on the
criteria in rticle 12"* consisting of cancelling all
or part of the financial contribution of the
Norwegian Financial Mechanism 2009-2014 to the
programme or the 2eneficiary &tate in ;uestion"
2" Financial contributions cancelled in accordance
with paragraph 1 or with rticle 11"1 may be reused
under the programme for pro'ects other than those
that were the sub'ect of the correction" Ghen a
financial correction is made for systemic
irregularities or irregularities related to
management or control systems within a
programme6 the financial contribution may not be
reused for that programme"
*" Financial contributions that may6 according to
paragraph 26 be reused for the programme within
which the irregularities occurred6 shall be
reallocated by the +rogramme (perator in
accordance with rticle 0"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 according
to paragraphs * and 4 within the rele)ant timeline
shall be reimbursed to the NMF no later than *1
(ctober 201." +aragraph . of rticle 12". shall
apply to late reimbursements"
/rticle 12.3
Criteria for financial corrections
1" ,he NMF may ma-e financial corrections
according to rticle 12"2 if one or more of the
following appliesA
9a: a serious deficiency e7ists in the management
and control systems established by the
2eneficiary &tate for the Norwegian Financial
Mechanism 2009-2014 which puts at ris- the
Financial Mechanism 2009-2014B
9b: a serious breach of the programme agreement
has occurredB
9c: a serious deficiency e7ists in the management
and control system of the programme which
puts at ris- the financial contribution from the
9d: e7penditure reported in a certified interim
financial report or in a final programme report
is 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
9e: the National Focal +oint andDor the +rogramme
(perator ha)e not complied with its
obligations to in)estigate andDor remedy
irregularities under rticle 11"1 prior to the
sending of the notification according to
paragraph 1 of rticle 12"4"
2" ,he NMF shall base its financial corrections on
indi)idual cases of irregularity identified6 ta-ing
account of the systemic nature of the irregularity to
determine whether a flat-rate or e7trapolated
correction 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 ta-e account of the nature and gra)ity of
the irregularity and the e7tent and financial
implications of the deficiencies found"
/rticle 12.4
%roce"*re
1" +rior to ma-ing a decision referred to in
paragraph 1 of rticle 12"26 the NMF shall notify
the National Focal +oint and the +rogramme
(perator of its intention to ma-e such a decision"
,he notification shall outline the reasons for the
decision and indicate the rele)ant amounts" ,he
can within two months from the sending of the
notification pro)ide any documents rele)ant to the
decision"
2" Ghere the NMF proposes a financial correction
on the basis of e7trapolation or at a flat rate6 the
shall be gi)en the opportunity to demonstrate6
through an e7amination of the documentation
concerned6 that the actual e7tent of the irregularity
was less than the NMF>s assessment" 8n agreement
with the NMF6 the National Focal +oint may limit
the scope of this e7amination to an appropriate
proportion or sample of the documentation
concerned" $7cept in duly 'ustified cases6 the time
allowed for this e7amination shall not e7ceed a
further period of two months after the two-month
period referred to in paragraph 1"
*" ,he NMF shall ta-e account of any e)idence
supplied by the National Focal +oint or the
+rogramme (perator within the time limits referred
to in paragraphs 1 and 2" t any time prior to the
decision on financial corrections6 the National
Focal +oint6 the +rogramme (perator and the
42
NMF can enter into a dialogue with a )iew to
ensuring that the decision is based on accurate and
correct facts"
4" ,he National Focal +oint and the +rogramme
(perator shall be notified of a decision referred to
in paragraph 1 of rticle 12"2 no later than se)en
wor-ings days from the date of the decision" ,he
notification shall outline the reasons for the
decision"
/rticle 12.$
6ei!b*rse!ent
1" ,he 2eneficiary &tate shall reimburse the amount
re;uested to the NMF within three months of the
decision referred to in rticle 12"2"
2" ,he NMF shall wai)e any claim for
reimbursement from the 2eneficiary &tate of funds
that were sub'ect to irregularities in a pro'ect if the
National Focal +oint shows that the loss and the
circumstances related thereto are not due to
negligent performance or non-performance of
duties of entities referred to in paragraphs 1 and 2
rticle 4"2 and of the +rogramme (perator>s duties6
and the National Focal +oint and the +rogramme
(perator ha)e ta-en all reasonable measures to
see- reco)ery of such funds"
*" Reimbursement from the 2eneficiary &tate to the
NMF is not contingent upon reimbursement from
the +rogramme (perator or the +ro'ect +romoter"
4" 8f the +rogramme (perator is a pri)ate entity and
the National Focal +oint shows that it has and is
ta-ing appropriate measures to reco)er the funds
from the +rogramme (perator6 the NMF may
decide to gi)e the 2eneficiary &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 the
funds from the +rogramme (perator" For the
purpose of this paragraph6 a +rogramme (perator is
considered to be a pri)ate entity when less than the
ma'ority of the )otes at its managerial board
meetings is controlled by public entities6 such as
public authorities6 public agencies or companies
fully owned by such authorities or agencies"
." ny delay in reimbursement shall gi)e rise to
interest on account of late payment6 starting on the
due 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 4entral 2an- in its main refinancing
operations on the first wor-ing day of the month in
which 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 a
solution6 suspend all payments to the 2eneficiary
&tate ifA
9a: information or documents obtained by or
pro)ided to the NMF indicate the presence of
systemic or widespread shortcomings
regarding the management of the financial
Mechanism 2009-2014 in the 2eneficiary
&tateB or
9b: a demand for reimbursement related to any
type of assistance in the 2eneficiary &tate
financed by the $$ Financial 8nstrument
1999-200*6 the Norwegian or $$ Financial
Mechanisms 2004-2009 or the Norwegian or
$$ Financial Mechanism 2009-2014 has not
been complied with by the 2eneficiary &tate"
2" ,he procedures referred to in paragraphs 16 * and
4 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 the
2eneficiary &tate shall be in $nglish"
2" (riginal documents 9in languages other than
$nglish: sent to the NMF shall be accompanied by
translations into $nglish" ,he 2eneficiary &tate
shall bear full responsibility for the accuracy of the
translation"
/rticle 13.2
<iabilit#
1" ,he responsibility of the #ingdom of Norway
with regard to the Norwegian Financial Mechanism
2009-2014 is limited to pro)iding financial
contributions in accordance with the rele)ant
programme agreements"
2" No liability to the 2eneficiary &tate6 +rogramme
(perators6 +ro'ect +romoters6 other recipient of
grants6 or any third parties is or will be assumed by
the #ingdom of Norway6 the NMF6 or the
$uropean Free ,rade ssociation6 including the
FM("
4*
/rticle 13.3
/pplicable la2 an" &*ris"iction
1" ,he laws of the #ingdom of Norway shall
go)ern the co-operation between the Norwegian
Financial Mechanism 2009-2014 and the
2eneficiary &tates as well as the interpretation of
the programme agreement and this Regulation"
2" ,he NMF and the National Focal +oint wai)e
their rights to bring any dispute related to the
programme agreement before any national or
international court6 and agree to settle such a
dispute in an amicable manner"
*" 8f a demand for reimbursement to the NMF is
not complied with by the Focal +oint6 or a dispute
related to a demand for reimbursement arises that
cannot be sol)ed in accordance with paragraph 26
the +arties may bring the dispute before (slo
,ingrett"
4" ,he NMF may claim e7ecution of 'udgement or
court order obtained in accordance with paragraph
* in any court or appropriate authority within the
territory of the 2eneficiary &tate or within another
country where the 2eneficiary &tate has assets"
." ,he 2eneficiary &tate shall )est its National
Focal +oint with the authority to recei)e ser)ices of
process on its behalf"
/rticle 13.4
/!en"!ents
1" ,his Regulation may be amended by decision of
the NMF"
2" nne7es to this Regulation may be amended by
decision of the NMF"
*" ,he NMF may adopt additional guidelines as
necessary after consultation with the 2eneficiary
&tates"
4" ny substanti)e amendment to the documents
referred to in paragraphs 1-* shall be sub'ect to
prior consultation with the 2eneficiary &tates" ,he
NMF shall as soon as possible inform the National
Focal +oints about any changes made to these
documents"
/rticle 13.$
(ntr# into force
,his Regulation shall enter into force on the day
following its adoption by the NMF"
44

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