Answers To Key Questions on How Civil Society Organizations Can Register International Technical Assistance Projects

 

According to current legislation, all projects implemented with international technical assistance (ITA) funds are subject to registration and reporting under established procedures.

At ISAR Ednannia's request, specialists from the Secretariat of the Cabinet of Ministers prepared answers to frequently asked questions from civil society organizations.

This information will be practical to everyone who is implementing or is in the planning stages of implementing ITA projects.

1. WHICH PROJECTS QUALIFY AS INTERNATIONAL TECHNICAL ASSISTANCE?

Projects where development partners provide international technical assistance on a non-reimbursable and non-refundable basis to support Ukraine according to international agreements.

2. IS REGISTRATION MANDATORY?

• Why is it important to register a project as ITA?

Aims of state registration of ITA projects:

• Recognize and account for such projects.
• Apply mechanisms for fulfilling obligations under Ukraine’s international agreements (benefits, privileges).
• Organize the process of coordination, monitoring, and evaluation of the projects.

• Can a project operate without registration as ITA?

A project can be implemented, but doing so violates Ukrainian legislation.

• What are the consequences of not registering the ITA project?

Reputational and tax consequences.

• How the registration process is different for national and international organizations?

The procedures for state registration of ITA projects (programs) are governed by the Procedure for the Attracting, Using, and Monitoring of International Technical Assistance (hereafter referred to as the Procedure), approved by the Cabinet of Ministers Resolution on February 15, 2002. The registration procedures for national and international organizations are identical.

• What is the difference between a recipient and a beneficiary?

According to the terms used in the Procedure:

• Recipient is a resident (individual or legal entity) who directly receives international technical assistance under the project (program).
• Beneficiary is a central executive authority, the Council of Ministers of the Autonomous Republic of Crimea, a regional, Kyiv, or Sevastopol City State Administration, whose competence includes the formation and/or implementation of state policy in the relevant sector or oblast where the project (program) will be implemented and that is interested in the results of the project (program) implementation. This also includes local self-government bodies with jurisdiction over the project’s implementation area, the Secretariat of the Cabinet of Ministers, the Office of the President, committees and the Secretariat of the Verkhovna Rada, the National Bank, the Supreme Court, higher specialized courts, the National Anti-Corruption Bureau, the Accounting Chamber, and other state bodies.

3. WHAT ADVANTAGES AND BENEFITS DOES REGISTER OF AN INTERNATIONAL TECHNICAL ASSISTANCE (ITA) PROJECT PROVIDE?

• What tax benefits are available for registered ITA projects?

Ukraine’s international agreements contain relevant benefits, privileges, and immunities for ITA projects. State registration of such projects is the basis for having access to these benefits, privileges, and immunities as provided by Ukrainian legislation and international agreements.

• Are there any special terms for the procurement or logistics of registered projects?

Ukrainian legislation does not provide special terms for the procurement or logistics of registered projects.

• What benefits are provided to the project’s staff?

Ukrainian legislation does not provide any special benefits for the project’s staff.

• How can value-added tax (VAT) be refunded or not paid?

Ukrainian legislation does not provide any VAT refunds within ITA projects.

However, if an international agreement of Ukraine, ratified by the Verkhovna Rada or otherwise brought into force, includes VAT exemptions, then:

• Project should be registered according to the established procedure.
• Procurement plan, certified by the development partner or implementer, should be submitted for registration. The plan should be prepared in the required format, as outlined in the Procedure (Annex 5 to the Procedure).
• When entering into procurement or service contracts, the ITA project should note that the procurement is funded by ITA, with a reference to the project’s registration card.

4. WHAT ARE THE DEADLINES FOR THE PROJECT’S REGISTRATION?

• What is the timeline for the project’s registration?

The Secretariat of the Cabinet of Ministers reviews the documents within ten working days and decides on the project’s state registration. All required documents should be submitted in full by all project participants.

• Are there any time restrictions for submitting documents before the project begins?

No, there are no such restrictions. However, state registration may be denied if the project has been completed. Additionally, if documents for state registration are submitted more than six months after the project has started, a report on the project outcomes should be provided.

5. WHAT IS THE COURSE OF ACTION FOR RE-REGISTRATION OF ITA PROJECTS?

• In what cases is re-registration of an ITA project required?

Projects should be re-registered if there is a change in development partners, implementers, recipients, beneficiaries, their names, the project's title, objectives, content, estimated cost, and duration, or if a procurement plan is submitted.

• What documents are required for re-registration?

Paragraph 21 of the Procedure specifies all required documents for state re-registration for each specific reason or cause.

• What is the timeline for re-registration?

The timeline for state re-registration of projects is the same as for the initial registration, which is ten working days starting from the day of receipt of all necessary documents as outlined in the Procedure.

6. REGISTRATION PROCEDURE.

6.1. WHAT DOCUMENT PACKAGE IS REQUIRED FOR REGISTRATION AND WHERE TO SUBMIT IT?

• What documents are needed to register an ITA project?

Paragraph 14 of the Procedure contains a list of documents required for state registration of ITA projects (programs). For state registration, the following documents should be submitted to the Secretariat of the Cabinet of Ministers (obligatory documents):

A petition letter from the recipient requesting state registration, which should include information about:

• Development partner – title name, location, location of the authorized body in Ukraine, name, surname, and position of the project coordinator.
• Implementer – title name, location, address in Ukraine, name, surname, position of the project coordinator, and if available, the code according to the Unified State Register of Enterprises and Organizations of Ukraine (USREOU) or the State Register of Individuals – Taxpayers.
• Recipient – title name, location, name, surname, position of the responsible person, and if available, the code according to USREOU or the State Register of Individuals – Taxpayers.
• Beneficiary – title name, location, name, surname, position of the responsible person.

2)  A petition letter from the development partner requesting state registration, which should include information about:

• Development partner – title name, location, location of the authorized body in Ukraine, name, surname, and position of the project coordinator.
• Implementer – title name, location, address in Ukraine, name, surname, position of the project coordinator, and if available, the code according to the Unified State Register of Enterprises and Organizations of Ukraine (USREOU) or the State Register of Individuals – Taxpayers.
• Recipient – title name, location, name, surname, position of the responsible person, and if available, the code according to USREOU or the State Register of Individuals – Taxpayers.
• Beneficiary – title name, location, name, surname, position of the responsible person.

The petition should also include the project (program) number assigned by the development partner.

• A certified copy of the contract, validated by the development partner or implementer or a relevant section of it. This contract should specify the project’s objectives, tasks, types, and amounts of international technical assistance provided for the project, estimated cost, duration, and phases of project implementation.

• A letter from the beneficiary expressing support and interest in the project's outcomes and consent to the activities outlined in the contract. The letter should also include information about how the project aligns with the objectives and activities set out in the Cabinet of Ministers' Action Program, the Association Agreement between Ukraine and the European Union, the European Atomic Energy Community and their member countries, the Sustainable Development Goals adopted by the United Nations General Assembly on September 25, 2015, Resolution No. 70/1, regional development strategies, and other relevant strategies.

If the projects (programs) are aimed at supporting the development of civil society institutions, a letter from the beneficiary about their interest in projects (programs) results should not be submitted.

• A document - such as a memorandum, statement of intent, activity plan, terms of reference, partnership agreement, etc. - that confirms the alignment of the project’s objectives, tasks, and activities between the development partner or implementer and the recipient (beneficiary) (hereafter referred to as the joint document).

This document must also include:

• Project’s/program’s title.
• Project’s/program’s objective.
• Project’s/program’s duration.
• Tasks as outlined in the project contract.
• Expected outcomes of the project/program.
• Quantitative and/or qualitative criteria for measuring the project’s/program’s success.
• List of assets, works, services, intellectual property rights, and other resources to be acquired or provided within the project/program.
• Expected impact of the project/program on the development of the relevant sector or region.
• Obligations of the development partner (implementer) regarding assistance.
• Obligations of the recipient (beneficiary).

If the recipient has signed into a grant agreement with the development partner or implementer, a certified copy of this grant agreement may be submitted instead of the joint grant document.

If the recipient has indicated in their petition letter that they consent to the activities specified in the contract between the development partner and the implementer, the joint document is not required.

• Optional Documents

To receive tax benefits provided by Ukrainian legislation and international agreements, a procurement plan, certified by the development partner or implementer, should be submitted. This plan should be prepared according to the form outlined in Annex 5 of the Procedure.

The procurement plan may be submitted in a language acceptable to the development partner, with an obligatory translation into Ukrainian.

If any changes are made to the procurement plan, except for changes related to the choosing of subcontractors, the updated plan should be submitted to the Secretariat of the Cabinet of Ministers with the date of the changes indicated.

If changes are made to the procurement plan due to the choosing of subcontractors, the plan should be submitted by the development partner (implementer) or the recipient, along with the date of the changes and a copy of the subcontract agreement, to the Secretariat of the Cabinet of Ministers.

For projects (programs) where the beneficiary also serves as the recipient, the procurement plan should be certified by the development partner or implementer and agreed upon with the beneficiary/recipient.

• Where to submit documents?

These documents should be submitted by mail to address 12/2 Hrushevskogo St., Kyiv, 01008, or to the Government Contact Center.

• Are there online platforms or services to submit documents?

Currently, there is no online platform or electronic service available for document submission.

6.2. IS IT POSSIBLE TO RECEIVE CONSULTATION FROM THE SECRETARIAT OF THE CABINET OF MINISTERS DURING THE DOCUMENT PREPARATION PROCESS?

• Does the Secretariat of the Cabinet of Ministers provide consultations on how to prepare documents for ITA project registration?

The Secretariat of the Cabinet of Ministers may provide consultations on the documents required for the registration of ITA projects.

• How can you contact the relevant departments for consultation?

- EU Cooperation Department: (044) 256-79-24, (044) 256-79-38, (044) 256-79-40.

- Foreign Countries Cooperation Department: (044) 256-79-76, (044) 256-79-11, (044) 256-79-72.

- International Organizations Cooperation Department: (044) 256-79-37, (044) 256-79-18.

7. REPORTING FORMS AND PROCEDURES FOR ITA PROJECTS.

• What reporting forms should be completed during the ITA project implementation?

1.        Beneficiaries and recipients, if a beneficiary is not chosen, should submit the Results of Current (semi-annual, annual) Monitoring and the Results of Final Monitoring to the Secretariat of the Cabinet of Ministers. The form for reporting project monitoring results is approved by the Procedure - Annex 3 and Annex 7 to the Procedure.

2.       The implementer and subcontractor, who has tax benefits provided by Ukrainian legislation and international agreements, should prepare and submit to the tax authority where they are registered as taxpayers an informational confirmation of the purchase of goods, works, and services under the preferential regime with funds from international technical assistance for the project - Annex 8 to the Procedure.

• What are the reporting deadlines for ITA projects?

The recipient should submit the results of the current semi-annual monitoring to the beneficiary by July 10 of the reporting year. The results of the annual project monitoring must be submitted by January 10 of the year following the reporting year. Monitoring results are prepared using the form specified in Annex 3 of the Procedure, verified by the responsible person, and signed by the head of the recipient organization.

To ensure final monitoring, the recipient submits the final monitoring results to the beneficiary using the form specified in Annex 3 of the Procedure.

Beneficiaries submit the signed results of current and/or final monitoring, according to Annex 7 of the Procedure, to the Secretariat of the Cabinet of Ministers every six months by the 30th of the following month.

The implementer and subcontractor, who has tax benefits provided by Ukrainian legislation and international agreements, should submit to the tax authority, where they are registered as taxpayers, an informational confirmation of the purchase of goods, works, and services under the preferential regime with international technical assistance funds for the project by the 20th of each month.

• What are the requirements for financial reporting of ITA projects?

The implementer and subcontractor, who has tax benefits provided by Ukrainian legislation and international agreements, should submit an informational confirmation of the purchase of goods, works, and services under the preferential regime with international technical assistance funds for the project to the tax authority where they are registered as taxpayers by the 20th of each month, using the form specified in Annex 8 of the Procedure.

• What are the consequences of late or incomplete reporting?

If the recipient fails to submit monitoring results to the beneficiary, or the beneficiary fails to submit them to the Secretariat of the Cabinet, this is considered equivalent to unsatisfactory project implementation.

Prepared by the Secretariat of the Cabinet of Ministers upon the ISAR Ednannia request

ISAR Ednannia has started the Fundraising School.

On May 13, 2024, the Fundraising School was started in Pushcha-Vodytsia.

According to the organizers of the program, fundraising education is highly relevant in the context of the war in Ukraine and the decline in volunteer activity. Therefore, many organizations face difficulties in attracting necessary resources for their projects.

In response to this challenge, ISAR Ednannia launched the Fundraising School with the aim of training professionals in the field of fundraising for the civic sector, which implements socially significant projects. Additionally, this education will contribute to the sustainable development and growth of the potential of the "third sector."

ISAR Ednannia received 241 applications for training. The organizers selected the 20 most motivated representatives of civil society organizations (hereinafter - CSOs) to participate in the School.

The opening of the program was attended by representatives of civic and charitable organizations from Zaporizhzhia, Dnipro, Lutsk, Lviv, Uzhhorod, Ivano-Frankivsk, Chernivtsi, Khmelnytskyi, Kropyvnytskyi, as well as Kyiv and Kharkiv regions.

At the beginning of the training, the School's curator, founder of the Institute of Professional Fundraising, Svitlana Kuts, emphasized to the participants: "People give to people for people, and this is one of the key principles of fundraising." The expert drew attention to the fact that at the core of any fundraising activity lies the person, their needs, and desires.

"It's important for me to raise funds for the organization and to share the acquired knowledge with my colleagues. Our structure coordinates the work of 20 volunteer groups, which amounts to 120 people," shared Alla Feshchenko, a representative of the NGO "Station Kharkiv".

"I eagerly awaited participation in the ISAR Unity Fundraising School because I know about the high quality of the training," added Svitlana Lukyanenko, a delegate from the NGO "Power of the Future" from Dnipro.

The educational program will run until the end of June.

This study is made possible by the generous support of the American people through the United States Agency for International Development (USAID) within the Ukraine Civil Society Sectoral Support Activity implemented by ISAR Ednannia in partnership with the Ukrainian Center of Independent Political Research (UCIPR) and Centre for Democracy and Rule of Law (CEDEM). The contents are not the responsibility of ISAR Ednannia and do not necessarily reflect the views of USAID or the United States Government.

Participants of the "Recovery CSO Community" have officially joined forces to implement recovery projects.

On April 26, 2024, the final meeting of the Recovery CSO Community took place, during which participants presented their accomplishments, research findings, community changes, and visions for a shared future.

To recap, the Recovery CSO Community began its formation in the summer of 2023 and brought together 54 robust, motivated CSOs (out of 172 CSOs that expressed interest).

Key areas of the Community's activities include:

• Ecology and environmental protection
• Business recovery or relocation
• Medical sphere
• Engaging residents in decision-making on recovery matters
• Reintegration of veterans
• Housing restoration
• Educational services sector
• Community development

The assessment of the Recovery CSO Community project's capacities indicated the initiative's success: 80% of its participants have made changes in their activities, 70% have improved or established cooperation within and beyond the project, and 40% have expanded expertise or the scope of their CSOs' activities.

The Community will continue its work taking into account the needs of communities and within the framework of today's signed "Memorandum of Cooperation in the Recovery CSO Community."

Ukraine needs heroes, and they are undoubtedly born within communities. Research results on engaging residents in decision-making, presented to event participants by researchers Yuriy Putre and Ivan Krasikov (CSOs "Against Corruption" and "Lustration Anti-Corruption Council of Prydniprovia"), confirm this thesis and Ukrainians' readiness to be involved in recovery processes. The most active category of citizens identified is individuals aged 22-35 with families and their own households. The research results will be published on the Civil Society Home website: https://home.ednannia.ua/

The "Recovery CSO Community" project became possible with the support of The US Embassy's Democracy Fund in Ukraine.