This document provides guidance on designing and managing EU-funded grant schemes. It discusses the key stages in the grant cycle including operational programming, evaluation, contracting and monitoring. It also covers important considerations for grant scheme design such as eligibility criteria, evaluation methodology, and types of support provided to applicants. The goal is to help ensure grant funding achieves its objectives in an efficient, transparent and impartial manner.

1. Paul SmithAn introduction to the design and management of EU funded grant schemes3/23/2011

2. The Programme Cycle3/23/2011Improved SME Competitiveness and Innovation Project2Operational ProgrammeNet Impact EvaluationPerformance evaluationOperation Identification Sheets (OIS) or Project FichesLaunch of the grant

3. Grant contracts

4. Grant monitoring

5. Technical specifications

6. Terms of Reference

7. Grant scheme documentsProject hierarchy3/23/2011Improved SME Competitiveness and Innovation Project3Operational ProgrammePriority AxisMeasureOIS 3OIS 2OIS 1Contract 1ContractContractContract 3Each project is delivered through one or more type of contractsEach contract is procured through established procedures set out in the PRAGContract 2

8. EC ProcurementProcedures are in place in order to ensure that:The right people get the job...........................for the best price...........through a fair selection processThat the rationale for decisions is transparent3/23/2011Improved SME Competitiveness and Innovation Project4

9. EC ProcurementAll procurement is completed through a contracting process. There are 4 types of contract:Service contract: provision of know-how/trainingSupply contract: equipment and materialsWorks contract: infrastructure/engineering worksGrant contract: direct payment of non-commercial nature3/23/2011Improved SME Competitiveness and Innovation Project5

10. Choosing the right contract3/23/2011Improved SME Competitiveness and Innovation Project6Agreement on project objectivesQuestionProject objective: to increase competitiveness of Serbian SMEsWhat are the alternative approaches?Identify alternative approachesDetermine project activities and inputsIdentify most cost-effective and timely solutionChoose contract type

11. GrantsA block of fundingprovided by an institution in order to achieve a specific purpose

12. Payment of non-commercial nature to implement an action intended to help achieve the purpose

13. Funds support statutory activities of beneficiaries

14. Funds cover only eligible incurred costs

15. Results of the project are owned by the Beneficiary and/or its partners

16. But it is not a Donation!!!3/23/2011Improved SME Competitiveness and Innovation Project7

17. When to use a grant schemeWhen we aren’t sure of the best way to achieve our purpose

18. When the ‘best way’ depends on a number of factors which vary from place to place or from company to company

19. When we need to generate quick and visible results

20. To increase capacity of local organisations

21. To stimulate partnership working

22. To incentivise a change in behaviour3/23/2011Improved SME Competitiveness and Innovation Project8

23. Advantages and disadvantagesAdvantagesEffective way of getting assistance directly to end beneficiariesBuild project management capacity in organisationsCan builds linkages between local organizationsThey generate short term results in terms of stimulating innovation and increasing competitivenessDisadvantagesLength of time between submission and start date can cause frustration and a difficulty in implementationLess experienced organizations need additional support in the design and delivery of their projectsExternal consultants used to design / manage projectsSensitivities to market distortion3/23/2011Improved SME Competitiveness and Innovation Project9

24. Some terminologyOperating Grants and Direct Grants

25. Contracting Authority

26. Beneficiary of a Grant

27. Lead Applicant