Selection Criteria :

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Applicants must have the professional competencies as well as appropriate qualifications necessary to complete the proposed project. In this respect, the project leader must submit a declaration on honour, and, for those applying for a grant above EUR 60 000 the following supporting documents:

Applicants must have the professional competencies as well as appropriate qualifications necessary to complete the proposed project. In this respect, the project leader must submit a declaration on honour, and, for those applying for a grant above EUR 60 000 the following supporting documents:

• copies of the applicant organisations' (project leader and partners) activity reports of the last two years. Applicants who have issued only one activity report on the date of submission due to their date of establishment shall be authorised to provide this report only.

The Agency will assess and verify the level of subcontracting activities used by applicants to implement the proposed project.

Applicants must have stable and sufficient sources of funding to maintain their activity throughout the period during which the action is being carried out and to participate in its funding. The applicants' financial capacity will be assessed on the basis of the following supporting documents to be submitted with the application:

• for all applications, a declaration on honour from the project leader;
• for applications for a grant over EUR 60 000, the financial statements of the project leader (including the balance sheet, the profit and loss accounts and annexes) of the last two financial years for which the accounts have been closed Applicants who have closed only one financial year on the date of submission shall be authorised to provide financial statements for this year only;
• for applications for a grant over EUR 60 000, the financial capacity form for the project leader, filled in with the relevant statutory accounting figures in order to calculate the ratios as detailed in the form;
• for applications for a grant over EUR 750 000, an audit report produced by an approved external auditor certifying the accounts for the last financial year available.

If, on the basis of the documents submitted, the Agency considers that financial capacity has not been proved or is not satisfactory, it may:

• require a guarantee (see section 10.2 of these guidelines) provided by an approved bank, a financial institution, a joint gurantee by a third party or the beneficiaries of the project;
• offer a grant agreement without pre-financing and make (an) interim payment(s) on the basis of eligible expenses already incurred when the project has been partly carried out.

The Agency reserves the rights to reject the application if neither of these two options can be implemented, irrespective of the reason.

The verification of financial capacity shall not apply to public bodies and to international organisations under public law. It will also not apply to education and training establishments if decided by the competent authorising officer on the basis of his analysis of management risks.

The cooperation agreement is a legal document signed by the project leader and the partners which will be annexed to the grant agreement in case of selection. The cooperation agreement must be legally valid in one of the countries where the project leader or the partners are established (i.e. a country taking part in the Creative Europe Programme). The cooperation agreement must state all the legal and financial conditions of cooperation between the project leader and all the partners as well as their operational responsibilities (and their financial responsibilities when relevant)in the implementation of the project.

There is no template provided by the Agency, however the cooperation agreement could contain the following information:

• a clear description of the objectives of the project;
• a clear description of the activities which will be implemented in order to achieve these objectives;
• a clear description of the role and obligations of both the project leader and the partners in the design and implementation of the project, including the tasks assigned to each partner;
• a clear description of the budgetary and financial framework including the amounts of financial contributions, and pre-financing amounts;
• legal aspects such as duration of agreement, liability, breach of contract, termination of agreement, governing law and dispute resolution.

Letter from a partner organisation confirming its participation in a cooperation project (original signature of the legal representative or equivalent required) and giving the legal authority to the project leader for acting on its behalf within the framework of this cooperation project.

The partner's financial contribution to the project must be indicated in the mandate. The mandate will be annexed to the grant agreement in case of selection.