Glossary

List of Acronyms

AA  Audit Authority

AF  Application Form

CA  Certifying Authority

CBC  Cross- Border Cooperation

CC  Candidate Country

CfP  Call for Proposals

DEU  Delegation of European Union

DG  Directorate General

EC  European Commission

ERDF  European Regional Development Fund

ETC  European Territorial Cooperation

EU  European Union

FLP  Financial Lead Partner

IPA  Instrument for Pre-accession Assistance

JMC  Joint Monitoring Committee

JPD  Joint Programming Document

JSC  Joint Steering Committee

JTS  Joint Technical Secretariat

LP  Lead Partner (lead beneficiary)

LPP  Lead Partner Principle

MA  Managing Authority

MCS  Management and Control Systems

MS  Member State

NA  National Authority

NIPAC  National IPA Coordinator

NUTS  Nomenclature of Territorial Units for Statistics

OLP  Overall Lead Partner

OP  Operational Programme

OS  Operating Structure

PA  Partnership Agreement

PCC  Potential Candidate Country

PPs  Project Partners (beneficiaries)

PRAG  Practical Guide to contract procedures for EC external actions

SEA  Strategic Environmental Assessment

TA  Technical Assistance

TED  Tenders Electronic Daily

VAT  Value Added Tax

Glossary of Terms

This glossary aims at supplying definitions of terms mainly related to CBC Programmes and IPA. A certain familiarity is presumed on the part of the reader, in particular with regard to the main EU institutions. Where appropriate, more information can be found at the websites of DG ELARG (http://ec.europa.eu/enlargement/index_en.htm) for accession, DG REGIO (http://ec.europa.eu/regional_policy/index_en.htm) for Structural Funds, and the Official Journal (http://eur-lex.europa.eu/en/index.htm) for EU legislation. For detailed responsibilities, modalities, etc. related to IPA, the IPA Implementing Regulation should be consulted.

Acquis communautaire- The French term commonly used to denote the total body of EU legislation, including all treaties, regulations, directives passed by EU institutions and all court decisions by the European Court of Justice.

Acronym - An abbreviation of the project title.

Audit Authority (AA) The institution responsible for verifying the effective functioning of the management and control system of the operational programmes.

Beneficiary – Bodies invited to submit proposals are specified in each call for proposals. The project participant, who takes the overall responsibility for the application and the implementation of the entire project, is called Lead Partner (LP) and corresponds to the term "lead beneficiary" used in Article 20 of Regulation (EC) 1080/2006.

Candidate Country - Applicant countries for European Union membership are granted Candidate Country status from the day their application is officially accepted by the European Council.

Source: DG Enlargement website

Centralised management - The Operating Structure is in charge of Programme implementation with the exclusion of tendering, contracting and payments, which are the responsibility of the Commission (EC Delegation, as Contracting Authority).

Source: Regulation (EC) No 2499/2007 (IPA Implementing Regulation), Article 99

Certifying Authority (CA) – National, regional or local public authority or body, designated by the Member States for certifying statements of expenditure and applications for payment before being sent to the Commission. In this context, the CA shall carry out the functions envisaged in Article 61 of Regulation (EC) 1083/2006.

Community contribution - The part of the eligible expenditure which is financed by the Community.

Source: Regulation (EC) No 2499/2007 (IPA Implementing Regulation), Article 2(9)

Competitive negotiated procedure - PRAG procurement procedure whereby the Contracting Authority invites candidates of its choice to submit tenders. At the end of the procedure, it selects the technically compliant tender which offers the best value for money in case of service tenders and the cheapest compliant offer in case of supplies or works tenders.

Controllers – Each partner state shall designate certified controllers that will be responsible for verifying the legality and regularity of the expenditure declared by each beneficiary participating in the project, according to Article 105 (Regulation (EC) No 718/2007).

Cross-Border Cooperation (CBC) programmes: CBC programmes aim at, inter alia, improving economic and social cohesion within or addressing issues (e.g. environmental protection, cultural heritage) common to regions on either side of a single land or maritime border. Countries participating in CBC programmes may be two MSs, one MS and one CC/potential CC, or two CCs/potential CCs. In the first case they are funded under the European Territorial Cooperation objective of the European Regional Development Fund, in the last two they are financed by IPA. For more information, see http://ec.europa.eu/regional_policy/cooperation/crossborder.

DEU - The Delegation of the European Union in Skopje represents the European Commission inside the country vis-à-vis the authorities and the general population. The Delegation of the European Union acts as the contracting Authority for Partners inside the former Yugoslav Republic of Macedonia.

Financial Correction – The cancellation of all or part of the National and Community contribution to a project, in the context of its co-financing by the OPs, which is similar to the detected irregularity.

First level controller - An institution/ individual responsible for verification of financial documentation of beneficiaries in a given country.

Irregularity - Any infringement of a provision of Community and national legislation resulting from an act or omission by an economic operator which has, or would have, the effect of prejudicing the general budget of the European Union, by charging an unjustified item of expenditure to the general budget.

Joint Monitoring Committee (JMC) - The participating countries set up the Monitoring Committee for every Operational Programme. The Monitoring Committee performs the duties that are defined in Article 110 - IPA Implementing Regulation.

Joint Steering Committee (JSC) - The committee established according to Article 140 of the Regulation (EC) 718/2007.

Joint Technical Secretariat (JTS) – The body set up by the MA after consultation with the Operating Structure, according to Article 102, IPA Implementing Regulation 718/2007, to assist the programme bodies (MA, CA, AA) in carrying out their respective duties.

Lead Partner Principle – Transitional approach - Under the cross-border component of IPA, the Lead Partner Principle is applied as follows: There is a single “functional” Lead Partner, but:

-  There is one “financial” Lead Partner for the part of the joint project implemented in the Member State territory; The Managing Authority concludes a grant contract with this Lead Partner.

-  There is one “financial” Lead Partner in each CC/PCC participating in the joint project. A grant contract is signed by the Contracting Authority in the CC/PCC with the lead beneficiary of the project in that country.

Source: DG Enlargement – PPT presentation at INTERACT IPA Seminar, Belgrade, 13 February 2007 and Regulation (EC) No 2499/2007 (IPA Implementing Regulation), Article 99(5)

Management Information System – The management system for recording and saving, in computerised form, accounting records for each project under the Operational Programme.

Managing Authority (MA) – National, regional or local public authority or public or private body designated by the Member States responsible for managing and implementing the operational programme, in accordance to the principle of sound financial management, carrying out the functions set out in Article 102 of Regulation (EC) 718/2007.

Memorandum of Understanding (MoU) - Additional agreement between programme bodies covering specific demands and harmonizing general programme procedures with particular national requirements.

Multi-annual indicative planning document - The multi-annual indicative planning document shall ensure the necessary coherence and complementarity between the IPA components in a given Beneficiary Country.
Source: Regulation (EC) No 2499/2007 (IPA Implementing Regulation), Article 5

National Authority (NA) (Operating Structure) - The authority supporting the activity of the MA in implementing the Programme in the Former Yugoslav Republic of Macedonia (Ministry of Local Self-Government).

National Co-financing - The non-EU contribution to the projects’ budget provided either by the State budget of each participating country or as own contribution by the Project Partners.

On-the-spot checks -This term usually refers to visits as part of the process of verification of expenditure, including First Level Control. Such visits typically involve checking issues which cannot be verified 100% through analysis of documents submitted by contractors or grant beneficiaries. The term “on-the-spot check” might also refer to on-site visits performed for simple monitoring purposes (i.e. not related to verifying expenditure but to ascertain whether a project is progressing according to plan).

Open tender procedure- PRAG procurement procedure whereby calls for tender are open and all interested economic operators may submit a tender.

Outputs -These are indicators of performance, used in monitoring and evaluation, which are the direct outcome of a specific activity. Inputs from a particular project lead to an output or outputs which can be measured in physical units, and subsequently verified. Examples include kilometres of road constructed, numbers of SMEs advised or number of people trained.

Participating Country - Regarding the cross-border component of the IPA instrument, Participating Countries are the IPA countries (Beneficiary Countries) and the bordering Member States.
Source: Regulation (EC) No 2499/2007 (IPA Implementing Regulation), Article 85

Partnership Agreement - Contract signed between the Overall Lead Partner and the Project Partners containing all duties and responsibilities of each partner for the implementation of the project.

Procurement notice: A document published by a Contracting Authority soliciting bids (under the open tender procedure) or expressions of interest (under the restricted tender procedure) from consortia, companies or persons for a particular tender.

Project Partners (PPs) - Partners participating in a project that correspond to the term "beneficiary" used in Article 96 of Regulation (EC) 718/2007.

Recovery – The procedure for refunding (by the beneficiary) of unduly paid amounts.

Restricted tender procedure - PRAG procurement procedure whereby calls for tender are restricted. All economic operators may ask to take part but only candidates satisfying the selection criteria may submit a tender.

Results- These are indicators of performance, used in monitoring and evaluation, which are the consequence of an activity. Results arise from the achievement of the project’s output. Such indicators can be of a physical nature (for example, number of jobs created or qualifications gained) or a financial nature (for example, cost reduced or time saved).

Rule of origin - According to the procurement rules for EU funds outside the EU, goods must originate in “eligible countries”. These eligible countries are different for each EU programme. For IPA, they include MSs, CCs and potential CCs. See section 2.3.1 of the PRAG for more information and its Annex A2 for a full list of eligible countries.

Target group - As implied by the term, the group of organisations or persons to be positively affected, usually directly, by a programme, priority axis, measure, operation or project.

Tenderer - A consortium, company or person submitting a bid in response to an invitation to tender.

Tenders Electronic Daily (TED) - TED is a database of all public procurement procedures which have to be published in the Official Journal. See http://ted.europa.eu/

Transitional approach or Transitional Arrangements - Transitional arrangements are applied to those cross-border programmes between Member States and Beneficiary Countries where “the Participating Countries are not yet ready to implement the entire cross-border programme in shared management with Member States according to the provisions laid down in Section 2 of Chapter 3 of the Cross-border Component section".

Source: Regulation (EC) No 2499/2007 (IPA Implementing Regulation), Article 99