Standardisation and simplification of the payment and monitoring system of NHDP applications 7 September 2007
On the basis of experiences gained during the processing of applications submitted within the framework of National Development I and monitoring the implementation of these, the National Development Agency shall introduce a significant degree of standardisation and simplification as regards progress reports, requests for payments and documents justifying the grounds of payments of applications approved funding within the framework of the New Hungary Development Plan.
The above-listed documents shall be introduced in standard format and according to a standardised set of principles of application from 31 August 2007.
Standardisation is justified by how activity-based expenditure categories (e.g. building, procurement, services, leasing, etc.) have been specified in the case of documents to be submitted for financial accounting.
All this implies that the sphere of documents to be submitted are defined on a project activity basis instead of on the basis of calls for applications; therefore, expenditures arising in the course of the activity implemented within the framework of the project that the beneficiary wishes to include in the accounts defines the type of document needed for justifying the effectively arising item of expenditure.
Document –based control is substantially simplified in this system (e.g. the number of documents to be submitted will be reduced); however, sounder and more rigorous on-the-spot controls will be carried out in the future.
The objective of the above-specified measure is to speed up payments, as well as to make the project implementation monitoring system more simple and transparent for beneficiaries, as well as organisations publishing calls for applications.
Main reasons for making changes relates to
• Significantly reducing the number of documents to be submitted;
• Specifying activity-based expenditure categories (e.g. building, procurement, services, leasing, etc.) for documents justifying accounts;
• Using summary tables in a broader context (depreciation, business trips-travel expenses, personal type costs, performance, overheads, etc.);
• Introducing the potential for accounting on a flat-rate basis (e.g. in the case of accounting of overheads);
• Standard forms and summary budget templates will be developed;
Documents to be standardised:
• Request for advance payment
• Request for payment
• Documents justifying the grounds of the request for payment
• Request for payment guideline
• Scaling of lease fees
• Scaling of overheads
• Request for flat rate payment of overheads
• Statement on verbal agreement
• Statement of performance
• Consolidated statements
• PPR
• PPR Guideline
• FPR
• FPR Guideline
The concise summary document Guideline to compiling applications has been developed to provide assistance to beneficiaries for compiling the financial accounts of their projects.