Quiz 3

Question 1 of 7

Section 1.5 of a local contribution agreement states: ‘This contribution is intended exclusively for the payment of management and administration fees, including travel expenses, in connection with seminars, workshops and conferences as described in Annex 1 Project description and Annex 2 Plan of activities. Any remaining amount must be repaid to GIZ. Additional costs shall be borne by the recipient itself.’

Is this wording acceptable? Why (not)?

No, day-to-day operating costs and administrative overheads must not be financed out of local subsidies.
Yes. All costs linked to seminars, workshops and conferences can be financed out of a local contribution.
Yes. Management and administration costs can be financed subject to a limit of 5%.

Question 2 of 7

A local lawyer engaged to check over a local contribution agreement advises you to change a few sections to avoid problems. He/she is certain that subsidy recipients will accept local laws that they are familiar with more willingly than German laws they know nothing about. He/she also points out that as the measure will be implemented in the country, it makes sense to use a local lawyer who knows how these things work locally. Should you follow this advice?

No. Our specimen agreement cannot be modified under any circumstances.
Yes. We can modify the contract template, but only if GIZ’s specifications contravene local law.
Yes, but only Article 8 ‘Local law’ can be adapted.

Question 3 of 7

Is it possible and advisable to stipulate in the agreement that the last instalment will not be disbursed in full and that instead a certain (retention) amount will only be released once all the previous instalments have been fully accounted for?

Yes, that is certainly advisable, although it should be stipulated in the agreement.
Yes, but only if the recipient will not then have to provide a substantial amount itself to finance the activities.
Yes, but only if we have reasonable grounds to suspect that the recipient might not submit its final accounts in good time.
No, we can’t stipulate that kind of arrangement.

Question 4 of 7

What is the maximum term for a local contribution agreement?

There is no limit, although the contribution must not continue beyond the end of the project.
One to three years depending on the project.
One year
Five years, although the contribution must not continue beyond the end of the project.

Question 5 of 7

What is the maximum number of supplements to a local contribution agreement?

There is no limit, although if they are needed frequently we should examine why.
No more than three, but only one per year.
Just one.
The limit is three.

Question 6 of 7

A GIZ country office has concluded a local contribution agreement in the country for EUR 45,000 and now wants to top it up by a further EUR 10,000 to EUR 55,000. Does this need to be referred to Head Office?

Yes, because the total amount after the top-up would be over the EUR 50,000 threshold.
No, because the top-up is only EUR 10,000.
There is no longer a approval from the head office.
No, it only needs Head Office approval if the original contract value exceeds EUR 50,000.

Question 7 of 7

Which currency should be used when submitting the budget?

The local currency
Euros, so that we can see whether the total contract value is over EUR 50,000.
Local currency, with the corresponding amount in euros shown alongside in a separate column.
Either in local currency or in euros. It’s up to the officer responsible for the commission (AV) to decide

Local Subsidies

Quiz-summary

Information

Results

Results

Categories

1. Question

2. Question

3. Question

4. Question

5. Question

6. Question

7. Question