Q&A Second Open Call for Social Housing and Active Inclusion Projects Proposals

1. Can model D of the housing solution: reconstruction, rehabilitation of existing apartments or family houses be related to the reconstruction of apartments owned by the Municipality? Or does this only apply to private apartments?

The model of reconstruction refers to apartments in both public and private ownership. In the case of publicly owned apartments, depending on the type of intervention and works, it is necessary to enclose an appropriate document with the application, as specified in the Guidelines for Applicants.

2. In the case of publicly owned apartments and proposed model D, should we submit project documentation and a decision on approval of construction works for the reconstruction of publicly owned apartments or can we obtain it during the project implementation? 

It is not obligatory to submit technical documentation with the application. In accordance with the type of works, it is obligatory to enclose a decision on approval of the execution of works, ie a building permit, ie an opinion that it is not necessary to issue an act, by the legal body competent for issuing a building permit.

3.1. Is it allowed under the Call to budget more than $19,000 for the purchase of houses for families? That is, is it ok to finance $19,000 from UNOPS funds, and for the difference to be financed from municipal funds as participation? And if so, is there a limit, ie a maximum amount per housing unit? Also, is it technically OK to put that higher house price in the budget, and then to explain in the Budget Justification how the financing is going?

The amount of 19,000 USD represents the maximum grant amount, ie financial support by the Programme for the purchase of the house. The project budget should include the actual costs of the purchase of the house in accordance with market prices and other costs included (property evaluation report, notary fees, ownership transfer tax, encumbrance, registration in the cadastre, possibly adaptation works, etc.). There is no price limit set, and funds for all costs above the donation amount should be provided by the applicant through co-funding.

3.2. If we put in the budget that, for example, 30 houses will be bought at a price of 25,000 USD, and in implementation, we encounter the situation that one house is 19,000 USD and the other 31,000 USD, which is on average 25,000 per house, so the budget line itself will not be breached and we stay within the planned budget, is that ok? In fact, we would budget the average value per housing unit and this would certainly be stated in the Budget Justification.

Expenditures per budget line should be defined as a lump sum, which allows for a more flexible distribution of costs within the line, and a detailed breakdown of all costs should be presented in the Justification sheet. The use of the average estimated value of the house is completely acceptable when calculating the purchase cost, which should also include other costs (property evaluation report, notary fees, ownership transfer tax, registration in the cadastre, etc.).

3.3. Is it allowed through under this Call to buy one more expensive house, larger in size, and to accommodate two families (eg two brothers with their families), and to spend funds for its purchase in the amount planned for two houses, given that a Family is the UNIT in the budget itself, not the house?

It is possible only if the house already contains or can be adapted into two functionally independent residential units (each unit has a separate entrance, toilet, kitchen, and other rooms prescribed by law). The cost of housing support refers to one housing unit per family/household to which the mandatory cost of active inclusion is added. In this particular case, this provides support for two families/households.

4. As the city of Kragujevac, we applied for the first CfP and we had the funds allocated for the participation in the call. The local self-government is currently adopting the rebalance of the budget for 2021. Since the allocated amount "will not be spent" until the end of 2021, we had to "remove" it from the planned position. The adoption of the budget for 2022 is scheduled for December. At the moment of application, we will only have a draft budget for 2022 where we will plan funds for participation. Please provide information on what will be the proof of available funds for participation in the project (Excerpt from the budget with the marked position).

An excerpt from the budget with the indicated budget position from which the project will be financed is an obligatory part of the accompanying documentation. Given that the municipal budget will be adopted in December, an excerpt from the draft budget plan for 2022 indicating the position showing the funds for project co-financing is acceptable evidence of co-financing at the time of project proposal submission. After the budget is adopted, the new excerpt should be submitted.

5. Is the precondition for the municipality to apply on the call to obtain the technical documentation for the construction of facilities before the deadline for submission of applications?

For the construction of facilities on public land, it is obligatory to enclose a valid construction permit issued on the basis of technical documentation and location conditions with the application.

6. Is an excerpt from the budget required or is a Statement that the project will be co-financed sufficient? Given that the project implementation is expected to be, I guess, in next year. Certainly, the municipal budget will be adopted by December 15th.

An excerpt from the budget is a mandatory part of the supporting documentation, and the statement that the project will be co-financed is not sufficient proof of co-financing. Given that the municipal budget is adopted by 15 December, the draft budget plan for 2022 with the indicated position showing the funds for co-financing the project may be sufficient evidence of co-financing at the time of submission of the project proposal. After the budget is adopted, the new excerpt should be submitted.

7. Can the supervision of works be paid from position 6 of the project budget? Also, is it possible to pay a public procurement expert from the same position (6). There is a financial manager in the project team, but due to the procurement of construction works, we would like to pay for public procurement as an external service. Can an external expert be a legal entity?

The cost of expert supervision, along with all other real construction costs, should be included in budget chapter 4 (within the appropriate position depending on the type of housing A or B).

In accordance with the propositions of the call, the mandatory composition of the project team must include a public procurement officer, i.e. a person with the appropriate certificate, so that the salary costs for this team member are budgeted under chapter 1 - Human Resources.

For all activities, it is possible to plan external engagement within chapter 6, but through the procedure of procurement of services in accordance with the legal regulations of RS.

8. If a detailed explanation of the works in the form of estimates is made, there is a great danger that there will be a significant increase in construction costs (since last year, the prices of construction materials have increased by more than 40%). To what extent is it possible to amortize these fluctuations by grouping costs (eg construction + administrative construction costs (procurement of projects / plans / permits ...) = XXX $?

All costs should be planned and included in construction costs (preparation of technical documentation - Project Execution Plan, geodetic survey/marking, geomechanical study, execution of works, expert supervision, health and safety coordinator, technical inspection /commission, use permit, energy passport, fees and participation, etc.)

Planning of construction costs through the preparation of Bill of Quantities and estimates, i.e. the Project for Execution, certainly enables a more precise and realistic estimate of the construction price than the estimated price from the construction permit.

The risk of miscalculation of costs always exists and in that sense, it is necessary to plan and, to the extent that it is possible, to anticipate costs on the basis of trends in prices in the construction sector and the market.

9. If all payments go from one sub-account, how will the program know which part was paid from which financing?

The Programme does not require the division of project costs into costs to be financed from the grant and costs to be financed from the beneficiary's participation. In this regard, participation represents only a percentage of the total project budget, ie. a minimum of 15% of the total project budget. The distribution of costs according to the funds from which they are financed is done during the implementation of the project and is entered in the financial card which enables monitoring of expenditures during the implementation.

10. Is it mandatory to have a partner?

A partnership with at least one institution and at least one non-governmental organization is mandatory.

11. Could you explain once again how the amount of the budget is calculated based on the number of households and housing support measures plus social inclusion measures?

On the example of 20 beneficiary families/households and housing support planned through 5 purchased houses and 15 reconstructions with accompanying inclusion measures, the budget calculation is as follows:

maximum grant amount = 5 * 19,000 + 15 * 8,500 + 20 * 7,500 = 372,500 USD

applicant's participation of at least 15% = 55,875 USD

1 + 2 = 428,375 USD total budget to cover all planned project costs (salaries, office, and travel expenses, housing support, active inclusion measures, procurement of services, promotional activities, etc.)

Please note that when calculating the costs of housing support and active inclusion, all real costs of sub-activities should be planned in detail and included in the budget (eg when buying houses: real estate valuation, notary fees, transfer of absolute rights’ tax, registration, possible adaptation works and improvement of conditions, relocation/transport of user furniture, etc.).

12. Could you explain once again the city's participation of at least 15% of the total grant value?

The participation of the applicant implies that they will provide co-financing funds exclusively in cash and in a minimum of 15% of the total project budget. As proof of that, the city encloses an excerpt from the city budget with the exact line to which the participation is allocated, ie the Draft Budget Plan for 2022 with the same indication, if the budget is not adopted by the time of application. The participation amount is paid to the project sub-account after signing the Grant Agreement and is a prerequisite for obtaining the first UNOPS grant installment. The salaries of local government employees cannot represent the participation of the city.

13. Does the maximum amount per housing unit in type C include 1,500 USD for the purchase of equipment or can it be added to the maximum amount for that type of housing?

The amount of 1,500 USD is part of the cost of active inclusion and it is not included in the cost of housing solutions.

14. Is it possible to build e.g. more family buildings but for each to be on different public land?

It is possible to build on several locations but it means that for each location a building permit with location conditions will be attached to the application.

15.  Can 2 NGOs be partners in the project? And in that case, can one fulfill the condition that it exists for more than 3 years, and the other one to be existing for a shorter period?

A mandatory condition is a partnership with at least one NGO. The local self-government can engage several NGO partners in the project, in accordance with the planned activities. But each partner has to meet all the prescribed conditions for co/applicants and each NGO must be registered at least three years before the call is issued.

16. If two types of intervention are combined, eg C and D, are the maximum amounts then added up and thus calculated per housing unit?

The maximum amount of the grant is given for each individual type of housing solution, and the cost is calculated in accordance with the number of housing units per type. See the example in the answer to question no.11. In case of the reconstruction of the purchased house, that cost must be included in the total amount of the purchase of the house, and the amounts for the purchase and reconstruction are not added together.

17. Is it necessary to define families during the development of the application in order to clearly define active inclusion measures in accordance with the needs of the family, or is it possible to define measures and select families on the basis of competition?

Beneficiaries/families have to be selected after the start of the project, through a transparent public call procedure, unless the project is based on an existing resettlement decision. Inclusion measures are planned not on the basis of knowledge of specific users, but on the basis of knowledge of target groups, which must be well described quantitatively and qualitatively within the project proposal.

18. Do all co-applicants have to deal with / have a mandate in "housing and social inclusion"?

Individual co-applicants must have a mandate either in housing or in inclusion.

19. Are procurements done according to the national Law on Public Procurement or according to PRAG procedures?

All public procurements are done according to the Law on Public Procurement of RS, and not according to PRAG procedures.

20. Is it necessary for the documentation to be translated by a certified court interpreter?

No.

21. Is there a mandatory CV form (Euro pass for example) or can it be a free CV?

There is no mandatory form, it is important that the CV of the project manager in English contains information on education, career advancement and references that prove experience in managing donor projects.

22. The finding on the suitability of the real estate, and the assessment of the value are obtained from an expert whom we hire through the public procurement?

For the assessment of the value of the real estate, it is possible to hire an authorized valuer externally or obtain it from the local tax administration. A court expert or a licensed engineer can be hired for the finding/report on the fulfillment of the housing conditions, and it is also accepted that the finding is done by a project engineer. These costs are planned in budget chapter 4.

23. If, for example, we buy 10 houses and support 10 families through housing and inclusion measures, our total budget will be 19,000 * 10 + 7500 * 10 + 15% co-financing. Then, within that whole amount, we allocate money in the budget for the project team's salaries and travel expenses?

That's right, the total budget should cover all planned project costs.

24. Can the salary of a municipal procurement officer be presented as co-financing? Up to what percentage can the remuneration for the work of the municipal official in the project team be paid (beyond his regular salary)?

The salary of a municipal employee cannot be presented as the applicant’s co-financing, because co-financing must be in money, and not a contribution through salaries. However, salaries can be financed from co-financing or from donations in accordance with the Labor Law, ie. up to a maximum of 30% over the regular salary of a municipal employee.

25. Do we have to have a combination of housing solution models or can we choose only one?

Both options are acceptable. The chosen type of housing solution should be adjusted to local conditions and possibilities, as well as the needs of the planned beneficiaries.

26. If we decide to reconstruct, rehabilitate and adapt existing apartments and family houses, can we submit the documentation for some works for which project-technical documentation is required after the project is approved and funds are obtained?

Submission of project documentation is not mandatory. In case the property is in public ownership, it is obligatory to enclose an appropriate act with the application, depending on the type of planned interventions (decision on approval of works, ie building permit, ie opinion that it is not necessary to issue an act by the competent authority). For privately owned properties, these documents are obtained during the project implementation.

27. According to which legal form, ie through which contract is the project team engaged?

When hiring a project team, it is necessary to comply with the provisions of the Labor Law and the Law on Civil Servants, as well as the model of employment contracts that team members have in their organizations at the time of project implementation. It is important to keep in mind that hiring under a part-time contract or additional work contract with organizations in which team members are already permanently employed is not a legally acceptable form.

28. The public invitation itself does not state whether all services, works, procurement of equipment planned by the project will be exempt from VAT in accordance with the Law on Value Added Tax ("Official Gazette of RS", No. 84 / 2004, 86/2004 - corrigendum, 61/2005, ... 8/2020 and 64/2021), By-law on Value Added Tax ("Official Gazette of RS", No. 37/2021 and 64/2021)  and a specific international agreement or VAT is an eligible cost to be reimbursed by the donor.

All services, works, and equipment paid from the grant funds are exempt from VAT, while all services, works, and equipment paid from the applicant's co-funding are not exempt from VAT, ie. are paid with VAT cost.

30. Is the number of project team members limited to 5. Who should be a member of the team is defined, but can there be a larger number of members in accordance with the needs of the project itself. 

The project team must have a minimum of 4 members with the following profiles: project manager, engineer, public procurement expert and inclusion expert. The team can have a larger number of members, as many as needed to carry out project activities, and this number is not limited.

31. The city of Pirot plans to apply together with 2 non-governmental organizations and the Center for Social Work. Is it possible for representatives of both NGOs to be represented in the team because the instructions also state that the condition is that the NGO has a member? 

There must be a partnership with at least one non-governmental organization in the project, and if necessary, all organizations whose partnership is needed for implementation can be involved. The project team must include representatives of all partners.

32. If during the implementation of the Grant Agreement the discrepancy between the estimated value and market value of prefabricated buildings that we plan to build in Bangladesh appears, is it / of course with your consent / possible to provide additional co-financing of that difference from the budget of the City of Novi Sad and if so, under what conditions.

It is implied that all funds above those listed in the project budget, are provided by the local self-government in the implementation of the project. It is not possible to increase the amount of the grant after signing the contract.

33. What were the guidelines you used to determine the scope of works and the character of the facilities that are being built in quantity and capacity as in the previous tender, given the significant changes in prices of construction materials on the market of Serbia and in the region and globally?

The criteria and conditions of this public call are the same as the conditions of the first call from November 2020, in order to ensure equal conditions of participation for all local governments in Serbia. Grant amounts are defined based on the available funds from the Program budget.

34. What is the relevant: estimated market value at the moment or the value you determined in the CfP? 

The eligible grant amounts defined under this call represent the maximum amount of the grant, ie the financial support/ contribution by the Program for the realization of a certain type of housing solution, and not the total cost of works. The project budget should plan for the actual costs in accordance with market prices and all other costs that participate in the implementation of housing support (see the answer to question 8). The difference between the eligible grant amount and the total cost is provided by the funds of the local self-government.

35. What is the amount that we have to justify in the CfP implementation, the set value in the CfP, or the value that we get in the public procurement procedure?  

An integral part of the Grant Agreement is Annex B - Budget, in which project costs are planned. In that sense, it is desirable to base the costs on the appropriate technical documentation and plan them realistically and in accordance with the market trends. During the implementation, all funds that are above those planned in the budget, are reimbursed from the funds of the local self-government. In case the bids in the public procurement procedure are above the estimated value, the relevant provisions of the RS Law on Public Procurement shall apply.

36. Considering the value assigned for contracting, whether from a tender or a public procurement procedure, when we receive bids, what will be considered as eligible cost according to the Call and what to do with remaining claims received through the bids due to the market price increase but not foreseen within the Call? 

See the answer to question no. 35.

37.  What is the basis for defining the estimated value for the procurement, the value you set in the CfP, or the estimated value of the current market assessment for the works and services that are the subject of the Call?

The estimated value of the public procurement is determined on the basis of the relevant provisions of the Law on Public Procurement.

38. How do we calculate the contracted works, which will certainly be significantly higher than what was foreseen in the CfP, will you accept the changes and how will we contract them?

See the answer to question no.8.

39. How do we announce the tender and define the contract for works - by the number of buildings or complexes or by square meters, regardless of the number of buildings or housing units?

The public procurement procedure is part of the project implementation and is carried out in accordance with the national Law on Public Procurement.

If you meant the project budget, which is a mandatory part of the application for this call, the calculation of construction costs, which represent only one segment of the implementation of housing solutions, can be based on the square footage of buildings, but it is mandatory to clearly state the number of housing units corresponding to the number of beneficiary families.

40. What is the measure/level for accepting the public procurement contract for the specific competition and what is the subject of the contract m2 (square meter) or the number of facilities????

See the answer to question no. 39.

41. What is the acceptable scope of landscaping and infrastructure development and who determines the amount that will be announced in the public procurement, given the significant changes in the market.

The total construction costs are in relation to the implementation of all solutions defined by the technical documentation (eg in the case of Project Execution Plan - Exterior design project with a synchronous plan of installations and connections) and should include all works and services that need to be performed to obtain a use permit. Eligible costs include construction of connections to the infrastructure network and works on the missing infrastructure which is intended exclusively for the needs of supplying facilities within the project.

42. Is it possible for 15% of the participation to be from the Municipal Housing Agency? If possible, does the Housing Agency then have to be the lead applicant or can it also be a partner?

The lead applicant can only be the local self-government, ie the city or the municipality. The terms of the call clearly specify criteria for co-applicants, ie partners in the project. They can provide co-funding which is transferred to a special sub-account of the local self-government opened with the Treasury Department of the NBS, intended for the realization of the project.

43. For BL 4.4 D. reconstruction of existing housing units, is it acceptable to introduce new sublines within Sheet 1 - 1. Budget breakdown, type: 4.4.1 Construction materials, 4.4.2 Equipment, 4.4.3 Works. .. etc ... OR, since it is a lump sum, it is enough to enter only e.g., 20 x 8,500 = 170,000, without introducing new sublines, and to explain everything in detail within Sheet 2 - 2. Justification?

In budget line 4.4, the total cost (lump sum) should be entered, and on the second sheet, the explanation and detailed breakdown of costs should be given with a reference to project activities / sub-activities.

44. For BL 5.1 Active inclusion support measures, how do we correctly enter budget lines under Sheet 1 - 1. Budget breakdown? 5.1.1 Training with transportation and meal costs, 5.1.2 Vocational training course, 5.1.3 Coaching and mentorship support to learning, OR it is necessary to further break down for each activity the costs into special sublines of the type: 5.1.1.1 Transport for Training, 5.1. 1.2 Training Accommodation, 5.1.1.3 Training Meals, 5.1.1.4 Training Materials, 5.1.1.5 Training Trainers ... OR it is sufficient to leave only 5.1 Active inclusion support measures, and then explain everything in detail in Sheet 2 - 2. Justification?

In budget chapter 5 on sheet 1, you should enter only two budget sub-lines: total inclusion costs and furniture and equipment. For both lines, you should enter a lumpsum cost. A detailed explanation is provided on sheet 2 Justification. Please read the instructions on the first page of the budget and within Justification, and also be sure to refer to the activities listed in Annex A. 

45. For BH 6. Other costs and services, what types of costs are eligible under this call, and whether or not they can be included in the contribution amount?

Within BH 6. Other costs and services, all types of costs that are necessary for the implementation of the project, and which do not belong to budget chapters 3, 4, and 5, are acceptable. These can be e.g. visibility costs - promotional activities, translation costs, bank fees, or other services necessary for the project implementation. These costs cannot be included in the amount of the contribution, ie. participation of the applicant, but may be paid from the co-funding.

46. Is it mandatory to reallocate the budget to all co-applicants or is it possible to spend the entire project budget only from the dedicated sub-account of the main applicant?

All payments during the implementation of the project are made exclusively from the dedicated sub-account of the lead applicant (municipality or city). Funds can be transferred to partners only for the salary costs of project team members budgeted under budget chapter 1. Human resources, travel costs, and running costs of the local office (rent, electricity, telephone, etc.). All costs are transferred to the partners on a monthly basis.

47. ​​With regard to the provision of a 15% contribution, does the program define who should provide a contribution from each of the actors involved (lead applicant, partner co-applicants), or is this agreed internally through the Partnership Agreement?

The program does not define the division of participation between the lead applicant and their partners. The minimum participation amount is 15% and regardless of whether it is provided by the main applicant or partner, it must be paid into a dedicated sub-account of the lead applicant (municipality or city) opened with the Treasury Department of NBS and intended exclusively for project implementation. The amount of participation of each partner should be defined by the Partnership Agreement.

48. If the main applicant can spend the entire budget from his dedicated sub-account, can he also provide the full amount of the 15% contribution for the project? Conversely, if it can spend the entire amount of the project, can it provide part of the contribution from the co-applicants?

The minimum co-funding amount is 15%. This amount can be provided by the lead applicant (municipality or city), as well as by one of the partners or the lead applicant and the partner together in accordance with the Partnership Agreement.

49. Given that 4 mandatory positions are defined for BL 1.1.1 Technical, in addition to the above, which are all positions on the project eligible?

The program does not define positions that, in addition to mandatory, can be included in BL 1.1.1 Technical. Technical positions are mainly those that involve hiring expert staff to perform certain project activities, while positions within BL 1.1.2 Administrative/support staff refer to administrative and assistant positions of the project that provide this type of support to technical staff.

50. For BH 5. Active inclusion support services and supplies, does the total sum of 5.1 + 5.2 have to be a total of 7,500 per household, does it include active inclusion measures and equipment and furniture?

The amount of 7,500 USD per beneficiary family is the maximum grant amount, ie participation by the Programme provided for the costs of all active inclusion measures under budget chapter 5. The total cost depending on the real costs of services and the amount of participation of LSG may be higher. The cost of household appliances is included in this amount, with the provision that it cannot exceed $ 1,500 per family on average.

51. If all members of the project team are employed, and their salaries cannot be part of the contribution, is that part of the 1st Human Resources accountable and how is it justified in reporting?

Salary costs of local government employees and other civil servants are not treated as eligible co-financing costs. Only the value of additional work in accordance with the Labor Law, the Law on Civil Servants, and the Decree on obtaining consent for new employment and additional employment with users of public funds up to the amount prescribed by law can be accepted as justified, provided the documented increase of workload of exclusively project-related activities. In that case, it can be paid from the total budget, from the grant, or co-funding.

If the team members and the grant manager, are engaged in activities exclusively related to the needs of the project by a special contract/decision, then their salaries can be considered an eligible cost and can also be paid from the entire grant budget. These costs are justified as well as all other costs within BH 1. Human resources (contract/decision, completed worksheet, presentation of tax calculation and tax return, statement as proof of payment).

52. BL 5.2 Provision of household equipment and furnishings, what is allowed by the program for purchases within this budget line?

The program allows basic furniture and household appliances, according to the needs and priorities of individual families in the total average value of USD 1,500 per family/housing solution.

53. For type D, reconstruction of existing housing units, is it necessary to submit estimates of companies for materials and works during the application?

See answer to question no. 26.

54. In 1. EU SHAI_CfP2_Guidelines for Applicants, at p. 20, it says:

"For beneficiary, local self-governments awarded a grant for projects proposing social housing activities B and/or C and/or D involving privately owned land or property (purchase of family/village houses, construction/installation of family / prefabricated houses, reconstruction of houses/apartments), the following requirements and procedures will be mandatory, upon the signing of the Grant Support Agreement:

Valid real estate cadastre sheet/title deed free of title disputes/encumbrances and proof of settled utility bills, for housing units proposed for purchase and/or reconstruction (applicable to Activities C and D) "

Correct me if I'm wrong, but, providing any kind of documentation from the competent Real Estate Cadastre Service will incur costs, and if type D is done, on existing facilities that are on private land and privately owned, then it will have to be paid by our selected users, since only they can request the issuance of title deeds from the cadastre. How is it possible to apply this obligatory methodology from the guidelines, obtain this documentation and pay all the costs without exposing the end-users to the costs, considering that they are from vulnerable social categories? The program also does not support this type of expense. Please clarify.

The title deed is a public document and a request for issuance can be submitted by any party. In the case of reconstruction (housing support type D), the ownership certificate in the name of the user can be obtained by the local self-government ex officio. In the case of the purchase of rural households (housing support type C), these costs are borne by the potential seller of the house. In any case, the costs of issuing documents are paid by the local self-government and the users cannot be exposed to any costs.

All eligible costs are stated in the GfA, including "property taxes and fees (co-funding only)" which include all taxes and fees related to the property (excerpt from the cadastre, registration in the cadastre, property tax, transfer of ownership, etc. ) and are financed exclusively from the co-funding of local self-government units.

55. After receiving the funds, is there a possibility for us as a municipality to announce a public call to employers who would employ users of housing units and to finance the salaries of employees after the selected employers?

The applicant is expected to describe the employment support measures and the manner of their planned implementation in detail in the description of activities. If you are planning to hire well-known employers, you can select employers by public invitation during the implementation. Payment of employees from the project can be only done in the initial period if the first period of engagement involves on-the-job training. Any further payment of salaries is an obligation of the employer, according to the definition of the term "employment" and cannot be the cost of the project, neither from the grant nor from the co-funding of the local self-government.

56. How are payments made for services and activities provided by the partner organization and in which budget chapter are these costs planned?

Expenses for partner services and activities are planned through the salary costs of project team members budgeted under budget chapter 1. Human resources. All costs are transferred to the partners on a monthly basis. The activities of the partner cannot be planned in the costs within the budget chapter 5, as they imply the procedure of procurement of services, and the partner cannot be the supplier of the same.