The beneficiaries report on the progress, outcome and use of funds of their projects after each project stage and upon project closure, as well as annually throughout and at the end of the monitoring period. This obligation is met through interim and final financial and professional reports.
In the case of projects determined by the president of the NRDI Office, the beneficiaries must also report on progress in person as part of their professional report (this obligation is undertaken by beneficiaries in the funding agreement). During such interviews, the representative of the beneficiary presents the professional and financial progress and completion of the project to a panel of experts invited by the president of the NRDI Office. The beneficiary’s written report – in the case of consortia the written uniform (interim and final) report of the members and the financial report prepared by each consortium member independently – is sent by the beneficiary (consortium leader) to the competent department of the NRDI Office: for innovation projects the Funding Management and Innovation Department, for research and development projects the Research and Development Department.
If necessary, anonymous peer reviewers may also be involved in the evaluation of the professional content of proposals after formal assessment.
The professional report is assessed in line with the professional principles, methodology and rules set forth in Government Decree 380/2014 (XII. 31.) on the rules of operation and use of the National Research, Development and Innovation Fund The assessment includes the examination of the project’s professional progress and compliance with the work plan according to the following set of criteria:
pro rata completion of the project;
- deviation from the work plan, if any, and reasons;
- assessment of key and other indicators (on a pro rata basis);
- grounds for the continuation of the project or termination of project funding;
- grounds for any modification of the project;
- any change in the person of project participants;
- the fact and manner of the publication of project results;
- measures taken for the intellectual property protection of the project results, where relevant.
The financial reports are assessed parallel to the professional reports. The financial assessment aims to check in line with the principles of the efficient use of public funds whether the funds were used reasonably and according to progress and the project plan.
The assessment extends to the following:
- the availability of all prescribed documents;
- the presence and authenticity of the signature of the person acting on behalf of the beneficiary;
- the completeness of certificates;
- consistency of data of the beneficiary, the declaration and the invoice summary forms (data sheets, forms);
- the invoices listed in the invoice summary form, item by item;
- the accuracy of the sums indicated in the invoice summary form;
- consistency between project stage period and the date of issue of the invoices;
- consistency between the financial report and the statement on VAT deduction;
- reasonability and compliance of cost items;
- compliance of the financial report with the agreement.
Financial reports are assessed based on the checklist, the guidelines for applicants, the funding agreement and its annexes, and involves, among other things, the examination of formal compliance, the extent of rearrangement of costs and the eligibility of costs. The financial assessment particularly focuses on the fulfilment of the conditions set forth in the relevant statutory provisions, including especially Section 92–94 of Government Decree 368/2011 (XII. 31.).
If any deficiencies are identified during the assessment of the professional and/or financial report, all of them are included in the same notice of deficiency. Repeated notices of deficiency may be sent out, if necessary. If the beneficiary fails to report, or any or all of the report is inadmissible, it has to repay all unreported advances and such amounts may not be used until the advances provided for the given project stage are properly reported.
The NRDI Office exercises all its rights under the relevant laws and the funding agreement to enforce its claims. As a last resort, it may also terminate the funding agreement concerned.