EU FUNDS

The European funds are envisaged to be financial instruments that support the implementation of individual EU policies in the Member States. One of the most significant policies is Cohesion Policy, for which the European Union allocated € 376 billion from the budget in the 2014-2020 financial framework. In the 2007-2013 financial period € 347 billion was earmarked for the same purpose.

The European Union's Cohesion Policy is financed through 3 main funds:

1. COHESION FUND - is intended for Member States with a GDP less than 90% of the European Union average income for financing transport and environmental projects.

2. EUROPEAN REGIONAL DEVELOPMENT FUND (ERDF) - aims at strengthening economic and social cohesion in the European Union and reducing regional development differences.

3. EUROPEAN SOCIAL FUND (ESF) - promotes employment and job opportunities in the European Union.

Apart from the mentioned funds, the financial framework 2014-2020 also comprises the following:

4. EUROPEAN AGRICULTURAL FUND FOR RURAL DEVELOPMENT (EAFRD)

5. EUROPEAN MARITIME AND FISHERIES FUND (EMFF)

These five funds are also referred to as the European Structural and Investment Funds (ESI Funds). The European Regional Development Fund and the European Social Fund are also known as the Structural Funds.

You can entrust us with the preparation of the project and the documentation required for applying your project in response to some of the calls for proposals to obtain grants from EU funds. In accordance with the investment needs, we will find an adequate call that supports the general and specific goals of your project. Calls are published and funds allocated by line ministries. The duration of the procedure from the application deadline to a grant decision is at least 3 months. A grant agreement shall be concluded within 30 days of the grant decision being taken.

The EU funds are allocated for the purpose of meeting certain goals and according to given rules, which means that projects that contribute to development objectives of the Republic of Croatia and the European Union are financed. Therefore, it is important to know that not every project can be funded with EU funds, regardless of the quality of the investment.

As a rule, EU funds cannot finance 100% of the project amount. The investor co-finances part of the activity cost, either with his own funds or with a bank loan. Similarly, the investor finances all ineligible costs (e.g. VAT, interest, depreciation, etc.). The minimum and maximum support that can be obtained is defined in the instructions for applicants. The funds received must be used for intended purposes for the costs incurred during the implementation of the project.

Services under EU funds include:

• consulting and drafting of project applications for calls from EU funds
• project implementation and reporting to competent authorities
• consulting as regards conducting the public procurement process

Consulting and drafting of project applications for calls from EU Structural and Investment Funds comprises several stages:.

1. Checking the cost-effectiveness of the project application

All calls for grants from EU Structural and Investment Funds are announced by line ministries. Each call defines who can apply, which projects are eligible, what activities and costs are eligible for funding, how the applications are evaluated and what minimum points need to be awarded for the grant. The cost-effectiveness verification involves our checking if your project can get the minimum points in the call required to receive the grant.

2. Designing the project

If you have an idea, we will help you develop it into a project that encompasses results, objectives, budget, activities and implementation risks. The project needs to define how the investment will affect the future business, what activities are needed for its implementation, what risks may hinder it, who will implement it and how the implementation of the project can be funded. Together we will define project activities, results, objectives and indicators, its relevance in relation to the objectives of the call and other strategic documents. We will elaborate the costs and the budget of the project based on the conditions and rules for costs eligibility. Also we will create the project application and compile all documents that may be requested for the call.

3. Drafting and submitting the project

Several documents will be required to apply for a grant from the EU Structural and Investment Funds, depending on the competition:

• Project summary describing project objectives, impact on target groups, implementation activities, human resources needed for implementation, preconditions for realization, sources of funds, implementation risks, success of project implementation and achievement of goals, budges and its cost-effectiveness.
• Business plan depicting the overall business, products or services, sales market, procurement market, marketing strategies, operating business, financial performance forecasts and applicant’s position. The business plan provides an insight into the overall business of the applicant, an assessment of its stability, which is a key element in the sustainability of project results and objectives.
• An investment or feasibility study will be required when submitting relatively large projects in response to the call for awarding grants from EU funds, detailing the project's effects, costs and benefits.
• Applying for a grant involves completing a series of additional forms and collecting a number of administrative certificates.

We can prepare for you the entire project application in accordance with the documentation required for the particular call, which includes assistance in the preparation of all application documents, as well as consulting in budget negotiations before signing the grant contract.

Project implementation and reporting to competent authorities

In case that the competent authority makes a positive decision on awarding the grant, you will be obliged to conclude a contract with the mentioned authority defining further obligations for the duration of the project as well as after its completion. The contract delineates the method of using the grant as well as the responsibility to report on the implementation of the project.

Quarterly reporting is typically required during the implementation of the project and several years after its completion in order to determine whether the objectives for which the project has been co-financed by EU funds have been achieved.

We can assist you with the project implementation as regards its compliance with the provisions of the concluded contract and with the call for proposals in which the grant has been awarded, as follows:

• development of a detailed project implementation plan
• monitoring project implementation
• project change management
• review and adjustment of all important implementation documents
• preparation of the contract and budget changes
• financial management of project funds and budgetary savings
• making a detailed cash flow according to the approved budget
• budget management consulting
• consulting as regards cost accounting
• supervision of project implementation and achievement of results
• storage of project implementation documentation (in hard copy and electronic version)
• making a request for reimbursement
• writing the necessary reports