Task of the intermediate bodies

Intermediate Bodies fulfil in relation to one or more priorities especially the following tasks: Participation in the preparation of action plans falling in its competence.

• Preparation of the annual work plan based on the requirements of the Managing

Authority. The plan shall contain the dates of the calls for applications as well as the annual targets for commitments, support contracts and payments.

• Participation in the preparation of calls for applications and sample support

contracts in cooperation with the MA and the relevant ministries.

• Admission and appraisal of the project proposals, and based on the agreements

with the Managing Authority setting up and operation of Assessment Committees, in case this task has been delegated to the Intermediate Body.

• Concluding of and amendments to the support contracts.

• Verifying that the co-financed products and services are delivered and the expenditure

declared by the beneficiaries for operations has actually been incurred and complies with Community and national rules;

• Monitoring of project implementation, payment of contributions, carrying out tasks

regarding project closure, performing verification checks, tracking and reporting irregularities.

• Recording of data in the single monitoring information system on a continuous basis,

providing an up-to-date and reliable database

• Preparation of quarterly progress reports on the implementation of the operational

programme, the action plan that specifies the details of the implementation process, as well as the annual work plan, with the recommendations on the necessary measures.

• Preparation and up-dating of the audit trail.

• Fulfilment of tasks related to information and publicity tasks, based on the annual

communication plan approved by the NDA.

Qualification, Selection and Financing of the IB

Intermediate Bodies contributing to the implementation of the operational programmes were selected on the basis of a set of objective criteria measuring their institutional capacity and technical competence. In order to receive the assignment, the prospective Intermediate Body needed to prove the existence of an appropriate, consolidated organisational structure, the availability of human and technical resources, as well as professional competence necessary. (Further information is provided on the selection procedure under the administrative capacity

chapter.)

To ensure the effectiveness of the implementation, the performance of the Intermediate Bodies will be evaluated on a regular basis.

The Intermediate Bodies participating in the implementation of the OP – based on the result of the qualification process – were appointed through a joint ministerial decree. Details

regarding the tasks, responsibilities, and financing of the IBs were fleshed out in dedicated task assignment contracts, signed by the NDA, the IB and – where applicable – the owner of the IB.

For the sake of effective implementation of the programme in case of certain support frameworks – based on an individual decision – non-governmental organisations or corporations, commercial banks, can also be involved (e.g. as managers of indirect grants or

capital funds).

The IBs will be financed through the above mentioned task assignment contracts from the technical assistance priority of the OP. In order to ensure sound financial management, correctness and regularity of expenditure declared by the IBs in relation to their operational costs the contracts – among others – impose the following requirements:

• The IB has to separate in full the costs and incomes related to its activities

concerning IB tasks in its financial records as well as in its analytical accounts. Unless unit prices are result of competition, incomes related to IB tasks cannot generate extra profit or finance losses related to other tasks of the organisation.

• The MA is required to perform controls of the IB concerning the implementation

tasks delegated to it, including the correctness and regularity and effectiveness of expenditure and costs separated in its accounts related to its IB functions.

In case an irregularity is detected the MA may suspend the task concerned by the irregularity of the IB or in justified cases all tasks related to the task assignment contract of the IB.

The Intermediate Bodies of the West Pannon Operational Programme

In case of the Operational Programme the following intermediate bodies were appointed as a result of the qualification procedure:

• West-Pannon Regional Development Agency Kht. (non-profit company)

The RDA has been working on regional development issues in the West-Pannon region since 1999. The agency has accumulated considerable implementation experience concerning both Hungarian and PHARE programmes. During the 2004-2006 programming period it participated in the implementation of the Regional Operational Programme as an intermediate body being responsible for both the preparation of project selection decisions and the providing of prospective applicants with information.

The organisation has an extensive professional experience and highly skilled human resource capacities, its operation is sufficiently regulated and its organisation form allows for the independent discharge of IB functions.

• VÁTI Hungarian Public Non-profit Company for Regional Development and Town Planning

The organisation has been working in urban and regional development since the 1950s, implementing Hungarian programmes and later Phare and other Community programmes

in the field. In the 2004-2006 implementation period, it was responsible for the intermediate body functions of the Regional Operational Programme in conjunction with the RDAs; consequently, it has extensive practical experience in the implementation of both Hungarian regional development and EU cohesion policies. As an intermediate body, its main tasks include the signing of contracts, performing on-site inspections, verifying and authorising claims for payment as well as the monitoring of projects.

VÁTI has sufficient professional skills and capacities and extensive procedural experience to perform the intermediate body functions entrusted to it; its operation is adequately regulated. Considering that the company is 100% state owned, its main responsibility is to assure the incorporation of the regional aspects of sectoral strategies in the OP

With regard to the conditions set out on Art. 10 of Govt. Decree No. 255/2006. (XII.8.) IBs may be subject to change.

In order to eliminate duplications or overlaps in tasks – as experienced during the 2004-2006 period – as a general rule, all IB tasks related to an operation shall be assumed by one Intermediate Body only. The applicant or beneficiary be in contact with only one organisation (IB) that is responsible for a grant facility during all stages of implementation.