EU & INTERNATIONALLY FUNDED PROJECTS IN LOCALITIES

Guidelines for Application for Co-financing

1. Background

Each year, Government allocates funds to support eligible entities who apply for project grants under EU funding programmes that require a co-financing commitment.

The purpose of this fund is to provide successful applicants with financial assistance towards their projects that are approved under any of the EU Funding Programmes and require a co-financing element. The fund will support and sustain the beneficiaries in long-term projects of greater financial magnitude thus empowering the targeted beneficiaries to be more pro-active in terms of participating in EU Funding programmes.

The fund will enable funding resources to be made available more easily to the beneficiaries, which are often well placed to respond to specific project development issues or project realisation but not necessarily well equipped to deal with the demands of the required financial element stipulated under the respective EU Funding Programme that the beneficiary is applying for.

The fund is also intended to facilitate the development of promising project ideas and to support the preparation of applications that are to be submitted under an EU Funding Programme, in particular to support innovative approaches, complex project themes and the establishment of new partnerships created for the purpose of designing new projects.

2. Eligibility Requirements

Eligible applicants are the: Local Councils’ Association (AKL), Assoċjazzjoni Nazzjonali Segretarji Eżekuttivi Kunsilli Lokali ta’ Malta (ANSEK), Local and Regional Councils, and Local Action Groups (LAGs), (also referred to as ‘beneficiaries’);

• Projects from eligible applicants submitted or to be submitted under any of the EU Funding Programmes (in cases where proof of co-financing is being requested);
• Projects must specifically target localities and/or communities;
• One hard copy of Grant Agreement signed by the Managing Authority or letter of approval by the Managing Authority that the project has been authorised.
• Applicants are to have a sound financial basis and the necessary administrative and technical capacity for implementing the project. For this purpose internal consultations can be made with the Local Government Division (LGD)’s directorates and any other pertinent authorities/entities.

3. Co-financing Rate and Maximum Capping

The funds available under this fund will cover a percentage of the co-financing element that is not covered by the EU Funding Programme. The selected applicant is expected to provide own resources and/or involve other donors to cover the additional percentage of the co-financing element, provided that there is no double funding involved

The amount of co-financing for beneficiaries is capped at 90% of the request up to a maximum of €150,000.

3.1 EU funded projects under a lump sum or grant

Additional funding to the lump sum awarded by the project can be co-financed by up to 90% of half of the grant amount. The maximum co-financing cap is €150,000. For claims for amounts exceeding  €5,000, the beneficiary is to engage an Auditor to perform an audit report that certifies the expenses related to the project. This Audit report is to be submitted to the co-financing committee prior the disbursement of final payment to beneficiary. Expenses related to the audit will be financed by the board up to a maximum of €1,000.

The following examples will illustrate the co-financing mechanism with respect to different scenarios of lump sum grants:

4. Submission and Approval

The applicants shall fill in the Application Form which is available here. Supporting documents are to be attached to the application where applicable. The application (including any annexes and supporting documents) are to be submitted as one hard copy.

The envelope containing the application shall be marked “EU-Funded Projects in Localities – CV7237”. Applications are to be submitted in a sealed, intact envelope by registered mail or in person and addressed to: 

Ms. Amanda Abela, Local Government Division, Union House, Castle Street, Victoria Gozo.

Applications sent by any other means (by e-mail) or delivered at other addresses will not be accepted or deemed eligible. Upon receipt of an application a letter of acknowledgment will be sent to the applicant beneficiary within 5 working days.

Applicants should keep strictly to the format of the application and are to complete the application form carefully and as clearly as possible. The application must be fully transparent in terms of the financing of the project and no application can be submitted whenever funding has been granted from some other source.  The applicant must also state the provenance of all sources of co-financing in the application and should attach a confirmation from these sources regarding the availability of these funds.

The applicant should submit an application after the project is approved by the Managing Authority of the respective EU Funding Programme. As soon as the committee approves the application, a contract agreement will be signed by all parties and the first 50% of the grant will be allocated to the beneficiary. The final 50% will be allocated to beneficiary when the project is finalized and on submission of final report to the managing committee. Obviously, if the cost of the project is less than that estimated, than the remaining balance will be worked out pro-rata on the actual expenditure. This procedure may be changed through a policy decision which is communicated to all potential beneficiaries.

5. Request for additional funds

Whenever the Managing Authority approves additional funds to an ongoing EU funded project, the beneficiary can make a request to the Co-Financing Committee to request also additional co-financing on this project. If the additional co-financing funds will be awarded, the procedures would be in line with the same principle used in the previous co-financing given to beneficiary.

The process to apply for additional funding is as follows:

1. The request should be addressed to the Co-financing Committee, Attn. Ms. Amanda Abela
2. The request letter should be written on the official beneficiary’s letterhead, signed by both Mayor and Executive Secretary, and including the following details:
   1. Full name of project
   2. The contract agreement number signed by both parties
   3. A copy of the communication between the Managing Authority and beneficiary stating the amount of additional funding approved.

6. Disbursements

After signing of the agreement and submitting the letter of approval and grant agreement of the project as approved by the respective Managing Authority, the beneficiary shall receive 50% of the grant. The remaining amount will be disbursed upon submission of the final report, inclusive of financial details accompanied by certified copies of fiscal receipts. The Management Committee may also consider other disbursement options after consultation with the beneficiary.

The beneficiary will be responsible for the correct use of these funds. Should the Managing Authority of the EU Funding Programme, for any reason, withdraw or terminate funding for the beneficiary, the Co-Financing Committee will also immediately withdraw or terminate the agreement accordingly. Once the project has been terminated, under no circumstances may the applicant beneficiary generate profit or have excess funding. Should such a case arise, the Co-Financing Committee will automatically withdraw and/or terminate the co-financing allocated to the applicant beneficiary.

7. Monitoring

The Co-Financing Committee may from time to time undertake external monitoring of the projects as well as carry out on-the-spot checks.