Grant Agreement

The Parties to this Grant Agreement are:

The Secretary of State for Foreign, Commonwealth and Development Affairs

represented by:

Elizabeth Green
Chargé d’affaires
British Embassy in Buenos Aires
Dr. Luis Agote 2412, Buenos Aires, Argentina

for the Foreign, Commonwealth and Development Office (the Authority),

and

Noel Alonso Murray

Argentina Office Director
Fundación Directorio Legislativo
Av. Entre Ríos 258, 3º piso "E" (C1079ABP) - C.A.B.A.

(the Grantee), referred to collectively as the Parties and each individually as a Party.

BACKGROUND

(A) The Authority has agreed to pay the Grant to the Grantee to assist it in carrying
out the Project.
(B) This Grant Agreement sets out the terms and conditions on which the Grant is
made by the Authority to the Grantee.

1. Introduction and Definitions

1.1 In this Grant Agreement:

“Basic Project Information” means the project title, the project scope,
information about the budgeted and actual project spend, the project
duration, the name of the UK central government department or agency

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which has lead responsibility for managing the project, the name of the
Grantee and the amount of funding that is being provided under this Grant
Agreement;
“Confidential Information” means the Authority’s data and all information
which has either been reasonably designated as confidential by either Party
in writing or which ought to be considered as confidential (however it is
conveyed or on whichever medium it is stored) including information which
relates to the business, affairs, properties, assets, trading practices, services,
developments, trade secrets, intellectual property rights, know-how,
personnel, customers and suppliers of either Party, all personal data and
sensitive personal data within the meaning of the GDPR and any other UK
data protection law which may be enacted from time to time. Confidential
Information does not include Basic Project Information;
“Crown Body” means a UK central government department and any other
organisation in the UK that is defined by law as a Crown Body;
“Eligible Expenditure” means expenditure in relation to the Funded
Activities that complies in all respects with the eligibility rules set out in
Annex D of this Grant Agreement;
“Equipment” means the tools and machinery which the Grantee may use in
order to conduct research and any other activity that is necessary to deliver
the Project for which grant funding is being provided under this Grant
Agreement;
“Evaluation” means an assessment of the Project by the Authority or one or
more persons appointed by the Authority. The Evaluation will assess the
Project on the basis of value for money, impact and delivery of outputs.
Evidence will be collected through a review of paper documents and
interviews with stakeholders;
“Evaluation Visit” means a visit of up to 10 days made by one or more
persons appointed or nominated by the Authority to the country where the
Project is being delivered and will comprise of a series of interviews with
stakeholders involved in the Project;
“Financial Year” means the 12 month period 1 April to 31 March;
“Funded Activities” means the Project-related activities set out in Annex A
of this Grant Agreement;
“Funding Period” means the period for which the Grant is awarded as
specified in clause 4.1 of this Grant Agreement;
“GDPR” means the General Data Protection Regulation (Regulation (EU)
2016/679);
“Grant” means the sum or sums of money [in local currency] to be provided
to the Grantee in accordance with this Grant Agreement;
“IPR” means copyright, rights related to or affording protection similar to
copyright, rights in databases, patents and rights in inventions, semi-
conductor topography rights, trade marks, rights in Internet domain names
and website, addresses and other rights in trade names, designs, know-how,
trade secrets and other rights in Confidential Information, together with all
applications for registration, and the right to apply for registration, for any
such rights that are capable of being registered in any country or jurisdiction,
and all other rights having equivalent or similar effect in any country or
jurisdiction;
“Net Profit” and “Net Losses” means the income, gain, loss, deductions and
credits of the Gratntee in the aggregate or separately stated, as appropriate,
determined in accordance with the accounting principles employed under the

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 acceptable method of accounting at the close of each fiscal year on the
Grantee’s accounts;
“Programme Objective” means the wider programme of activity that this
Project is part of as set out in Annex A;
"Prohibited Act" means:
i. offering, giving or agreeing to give any servant of the Authority
or the Crown any gift or consideration of any kind as an
inducement or reward for:
1. doing or not doing (or for having done or not having
done) any act in relation to the obtaining or
performance of this Grant Agreement; or
2. showing or not showing favour or disfavour to any
person in relation to this Grant Agreement;
ii. committing any offence
1. under the Bribery Act 2010;
2. under legislation creating offences in respect of
fraudulent acts; or
3. at common law in respect of fraudulent acts in relation
to this Grant Agreement; or
iii. defrauding or attempting to defraud or conspiring to defraud
the Authority or the Crown;
“Project” has the meaning set out in clause 3.1;
“Project Implementation” means all the activity which the Grantee
undertakes in order to deliver the Project which is being funded under this
Grant Agreement;
“Staff” means all persons employed or otherwise used by the Grantee to
perform its obligations under this Grant Agreement;
“State Aid” means any aid having the character set out in Article 107(1) of
the Treaty on the Functioning of the European Union;
“Unspent Monies” means any monies paid to the Grantee in advance of
expenditure which remains:
(i) unspent and uncommitted at the end of a Funding Period; or
(ii) unspent and uncommitted at the end of the Financial Year in which the
Funding Period occurs.

1.2 Any reference to UK primary legislation (Acts) or secondary legislation (Statutory

Instruments) in this Grant Agreement includes reference to any changes to or
replacement of those Acts or Statutory Instruments.

2. Grant Offer

2.1 The Authority offers to pay the Grantee the Grant (the amount of which is set out in
clause 5.1 of this Grant Agreement) on condition that the Grantee complies fully with
the terms of this Grant Agreement.

2.2 The Grantee acknowledges that the Authority agrees to provide funding only for the
amount, period and purposes set out in this Grant Agreement.

3. Purpose of the Grant

3.1 The Authority is providing grant funding for Eligible Expenditure incurred by the
Grantee to implement the project entitled: “Strengthening Argentina’s compliance

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 with EITI by promoting provincial adherence to the initiative”. (the “Project”).
The Project outputs and activities are set out in Annex A.

3.2 The Grantee accepts responsibility for the proper use and administration of all
funding provided under this Grant Agreement and undertakes to use such funding
only for the purpose of carrying out the Project in accordance with the Project
outputs and activities set out in Annex A.

3.3 The Grant must not be used to support activity intended to:

3.3.1 influence or attempt to influence the UK Parliament, Government or political

parties;
3.3.2 influence or attempt to influence the awarding or renewal of contracts and
grants by the UK government; or
3.3.3 influence or attempt to influence legislative or regulatory action in the UK.

3.4 Where the Grantee intends to apply to a third party for other funding for the Funded
Activities, it will notify the Authority in advance of its intention to do so and, where
such co-funding is permitted and obtained, it will provide the Authority with details of
the amount and purpose of that funding.

3.5 The Grantee agrees and accepts that it will not apply for duplicate funding in respect
of any part of the Funded Activities or any related administration costs that the
Authority is funding in full under this Grant Agreement and that it may be prosecuted
for fraud should it dishonestly and intentionally make such an application.

4. Funding Period

4.1 The Funding Period is from 6th July to 30th November 2021
4.2 Project Implementation will begin on the day after the last of the two Parties signs
this Grant Agreement.

5. Amount of the Grant

5.1 The Authority will provide up to a maximum of 9000 USD (nine thousand US
dollars) towards the total costs of the Project, of which 9000 USD (nine thousand US
dollars) will be paid in the Financial Year the Project begins FY 2021/22

5.2 The Authority does not guarantee grant funding for subsequent periods after the
term of this Grant Agreement or in Financial Years following the Financial Year of
signature of this Grant Agreement. Whether the Authority provides additional grant
funding to the Grantee will depend on factors including:

the availability of funding to the Authority; and

full compliance with the terms of this Grant Agreement by the Grantee in the
period covered by this Grant Agreement.

6. Timing of Grant Payments

6.1 Subject to the remainder of this clause 6, payment of the Grant (for actual costs
incurred and that are listed in the agreed activity based budget) will be made in
arrears, at a frequency agreed between the Authority and the Grantee.

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6.2 The Authority will not authorise payment unless the Grantee has:

signed and returned a copy of this Grant Agreement to the Authority;

provided appropriate bank details including a method for identifying the
Authority’s funding either in a separate bank account or by using project
codes.

6.3 The Authority reserves the right to withhold all or any payments of the Grant if it has
reasonably requested information and/or documentation from the Grantee and this
has not been provided to the Authority within the timescales required.

7. Reduction And Recovery Of Grant

7.1 Without prejudice to the Authority's other rights and remedies (whether arising under
this Grant Agreement or otherwise), the Authority may withhold or suspend payment
of all or any part of the Grant and/or require the Grantee to repay any Unspent
Monies if the Grantee fails to comply in any material respect with any of the terms of
this Grant Agreement and/or if any of the events set out in clauses 7.5, 20.2, 20.3(a)-
(g), 20.5 or 20.6 arise.

7.2 All Unspent Monies, as calculated by the Authority, must be repaid to the Authority
within thirty (30) working days from the date on which the request for payment is
sent.

7.3 The Grantee may not retain any Unspent Monies, or carry forward any Unspent
Monies for use in the following Financial Year, without the Authority’s written
permission.

7.4 If the Grantee is wound up or goes into liquidation, administration, receivership or

bankruptcy, or enters into any compromise or other arrangement of its debts with its
creditors, the Authority will be entitled to recover any Unspent Monies and/or may
withhold any further Grant payments. If any of the Unspent Monies is held by the
Grantee’s own contractors, the Grantee must recover those sums (and shall procure
that it has an enforceable right to recover those sums) from its contractors.

7.5 If the Authority makes an overpayment to the Grantee, it will seek recovery of all
sums overpaid. The Grantee will repay any overpayment to the Authority within thirty
(30) calendar days of receiving a written request from the Authority to make a
repayment.

8. Managing the Grant

Reporting

8.1 The Grantee will provide a quarterly monitoring report (a “Quarterly Monitoring
Report”) and a financial report (a “Financial Report”) at the same time each request
of reimbursement is submitted.

8.1.1 Each Quarterly Monitoring Report will:

describe the Project activities completed and the results achieved;

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 contain an assessment of progress made against the proposals as set out in
Annex A; and
refer to the indicators of success in Annex A.

8.1.2 Each Financial Report will state:

how much of the Grant was spent;

the purpose of the expenditure of the Grant in (a) above; and
whether any funding was used for consultant’s fees or travel expenses.

8.2 When the Project has been completed the Grantee will prepare and send a final
report (a “Project Completion Report”) to the Authority within the period that the
Authority requests. The Project Completion Report will contain a detailed breakdown
of all expenditure for the Funding Period. The Authority will only make a final Grant
payment when the Project Completion Report has been submitted to the relevant
representative of the Authority, in the format requested and with all of the information
that is required.

8.3 To the extent requested by the Authority, the Grantee will send originals or copies of
invoices and receipts to the Authority within one (1) calendar month after sending a
relevant Financial Report (that includes those invoices and receipts requested by the
Authority) to the Authority.

8.4 Where a Project has an annual expenditure of over two hundred thousand pounds
(£200,000) (or other currency equivalent) the Grantee will provide externally audited
Financial Reports, unless the Parties agree otherwise.

8.5 The Grantee will be responsible for meeting all costs incurred in producing the
reports required in accordance with clauses 8.1 to 8.4.

Monitoring and Evaluation

8.6 The Authority will monitor the progress of the Project throughout the Funding Period
and reserves the right to:

carry out Evaluation Visits, after giving reasonable notice; and / or

appoint an external evaluator.

8.7 The method and timing of the Evaluation Visit, and the Evaluation of the Project, will
be at the Authority’s discretion.

8.8 The Grantee will make Staff available to meet with, answer questions and provide
management information to the Authority or the evaluator appointed by the Authority.

8.9 The Authority and the Grantee will undertake a joint review of the Project if the
Authority considers it necessary to refocus the Project outputs.

Additional governance

8.10 In order to ensure its accountability to Parliament or any other body authorised to
scrutinise its use and management of public funds or in order to assess risks of fraud

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 or guard against potentially fraudulent use of grant funding (including the Grant
covered by this Grant Agreement), the Authority reserves the right to:

make grant funding subject to such arrangements (including terms of

reference, steering committees and virtual boards) as it considers
reasonable, appropriate and proportionate to manage the relationship with
the Grantee. This right may be exercised by reference to the budget, scope
or complexity of a Project; and/or

commission an external audit of the Financial Reports provided by the

Grantee at any point in the Funding Period. Where the Authority exercises
this right, it will bear the cost of such audit; and/or

request additional information and documentation from the Grantee to further

explain specific payment details made by the Grantee to any of the Grantee’s
delivery partners, suppliers, staff, consultants and/or contractors.

Aid Diversion

8.11 For purposes of the remainder of this clause 8, “Aid Diversion” means any
event, including fraud, corruption, bribery (including for purposes of the Bribery Act
2010), theft, terrorist financing, money laundering and other misuse of funds that
prevents the Grant being directed to the outputs and activities of the Project, or
funds being directed to the aid outcomes or recipients intended.

8.12 The Parties will immediately and without undue delay inform each other of any
actual, suspected or alleged Aid Diversion in the case of the Grantee by immediately
contacting the Authority’s Anti Fraud and Corruption Unit (AFCU) at afcu@fco.gov.uk
or +44 (0)7771 573944 (where all information will be treated confidentiality in
accordance with the terms of this Grant Agreement) or by informing the Authority
staff responsible for managing this Grant Agreement.

8.13 The Parties acknowledge and agree that they have a zero tolerance approach
towards Aid Diversion, including any associated inappropriate behaviour. Both
Parties will fully co-operate with investigations into actual, suspected or alleged Aid
Diversion, whether led by the Authority or the Grantee.

8.14 Notwithstanding any other provisions in this Grant Agreement, the Authority may
recover from the Grantee all or part of the Grant paid under this Grant Agreement in
the event of actual or suspected Aid Diversion.

8.15 Without prejudice to the foregoing, and consistent with local and international
legislation and applicable United Nations Security Council resolutions, the Parties
acknowledge and agree their committment to the international fight against terrorism
and the Authority’s policy to seek to ensure that none of its resources are used,
directly or indirectly, to provide support to individuals or entities associated with
terrorism or crime of any sort. In accordance with this policy, the Grantee will (and
will procure that its downstream partner(s)) make itself aware of, and (without
prejudice to the generality of clause 14.2) comply with its obligations under,
applicable counter terrorist financing and other crime legislation.

9. Other uses of grant funding

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Procurement

9.1 The Grantee will follow its own procurement guidelines and procedures when buying
goods and services using the Grant but will also adhere to the minimum
procurement standards and principles, as set out in Annex C of this Grant
Agreement, expected of the Grantee by the Authority. In the event of any conflict
between the two, the Grantee shall notify the Authority of that conflict and the Parties
shall in good faith seek to agree on how to resolve that conflict.

9.2 If the Authority requests information from the Grantee about the use of the Grant for
procurement, the Grantee will provide sufficient information to show that its
procurement processes are transparent, fair, allow for competition and were cost-
effective.

Equipment – Purchase and disposal

9.3 The Authority provides funding under this Grant Agreement on the basis that the
Grantee will not use the Grant to purchase Equipment as the sole Project output.
Neither will the Grantee use the Grant to purchase Equipment where it is reasonable
to expect the Grantee to hold such Equipment as part of its normal business.

9.4 If the Grantee considers that it is or may be necessary to use the Grant to buy
Equipment in order to deliver the Project it will inform the Authority of this at the
earliest opportunity. All proposed Equipment purchases must be itemised and costed
in the Project budget and subsequent purchases recorded (in the form set out in
clause 9.6 of this Grant Agreement) by the Grantee. The Grantee will not purchase
Equipment using the Grant unless the Authority has consented to such use in
writing, such consent to be attached to this Grant Agreement as an additional Annex.

9.5 The Grantee acknowledges and agrees that any failure by the Grantee to seek the
Authority’s consent in accordance with clause 9.4 will be deemed to be a material
breach for purposes of clause 20.3(g).

9.6 If the Grantee uses the Grant to buy Equipment to implement the Project it will
maintain a record and notify the Authority of such purchases. Entries in the record
must include the following information:
description of the item(s);
specific identification (e.g. serial number);
date of purchase;
where the item was purchased;
original value (including VAT, if paid); and
person responsible for the purchase.

9.7 If the Grantee buys Equipment with the Authority’s consent, any such Equipment
with an initial value of one thousand pounds (£1,000) (or other currency equivalent)
or more and a useful life of more than one (1) year at the end of the Funding Period
will be the property of the Authority and must not be disposed of except as the
Authority directs in writing.

9.8 If the Grantee has an existing process or policy regarding the ownership and
disposal of Equipment which is inconsistent with clause 9.7, it will make the Authority

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 aware of this at the earliest possible opportunity when bidding for funding from the
Authority. The Parties will then decide, as soon as reasonably practicable, on the
ownership and disposal arrangements of Equipment for when the Project ends, to be
recorded in writing and attached to this Grant Agreement as an additional Annex.

10. Records to be kept

10.1 The Grantee will ensure that all original documents are retained for the term of
this Grant Agreement and for a period of six (6) years after the end of this Grant
Agreement and will provide these to the Authority, if requested, within this period.

11. Due Diligence

11.1 In utilising the Grant the Grantee will exercise the same care in the discharge of
its functions under this arrangement as it exercises with respect to the administration
and management of its own resources and affairs.

11.2 The Grantee will co-operate fully with any due diligence assessment by the
Authority or its agents, of the Grantee’s own internal controls and systems. These
assessments should be completed prior to Project Implementation and be reviewed
during the Project, including if there is a significant change to the Grantee’s
procedures and controls or operating environment.

11.3 Additionally, the Grantee will take all necessary steps at the commencement of
the Project and at regular intervals throughout Project Implementation to assess the
internal controls and systems of any downstream delivery partners. These
assessments will be shared with the Authority upon request, and should determine
the:

reliability and integrity of the downstream delivery partners’ financial controls,

systems and processes;
effectiveness and efficiency of downstream delivery partners’ project
operations;
procedures for safeguarding Project assets; and
compliance with national legislation, regulation, rules, policies and
procedures.

12. Safeguarding for the prevention of sexual exploitation, abuse and harassment

12.1 The Grantee will take all reasonable steps to prevent the sexual exploitation,
abuse and harassment of any person linked to the delivery of this Grant Agreement
by both its employees and any downstream delivery partners.

12.2 The Participants have a zero tolerance approach towards sexual exploitation,
abuse and harassment. The Grantee will immediately contact FCO’s Anti Fraud and
Corruption Unit at afcu@fco.gov.uk or call +44 (0)7771 573944 to report any credible
suspicions of, or actual incidents of sexual exploitation, abuse or harassment related
to this Grant Agreement. The Grantee should assess credibility based on the source
of the allegation, the content, and the level of detail or evidence provided. All sexual
activity with children (persons under the age of 18) is prohibited, regardless of the age
of majority, or age of consent locally.

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12.3 The Grantee should also report any credible suspicions of, or actual incidents
that are not directly related to this Grant Agreement but would be of significant
impact to their partnership with the FCO or the reputation of the FCO or UK aid. For
example, events that affect the governance or culture of the Grantee, such as those
related to senior management, must be reported.

12.4 Both Participants will fully co-operate with investigations into such events,
whether led by FCO or any of its duly authorised representatives or agents, or the
Grantee.

12.5 The Grantee will comply with the Supplier Code of Conduct as set out in this
Annex E and any changes made to the Code thereafter from time to time by the
Authority.

13. Audit and Inspection

13.1 The Authority may request reasonable access for its authorised representatives,
after giving the Grantee notice, to:
Project sites which the Grantee owns or occupies and where any activity in
support of the Project has been undertaken; and/or
records (however these are stored) which show how the Grant has been
used.

14. Legislation and State Aid Law

14.1 The Grantee acknowledges that the Authority is (without limitation) subject to the
Freedom of Information Act 2000, GDPR (and any other UK data protection law
which may be enacted from time to time), and the Equality Act 2000.

14.2 The Grantee must ensure that it complies with any applicable law or
organisational directions and regulations which are binding on it.

14.3 The Grantee will also cooperate with the Authority (to the fullest extent
permissible and consistent with its obligations under any applicable law or
regulation) to enable the Authority’s compliance with its obligations under the
legislation referred to in clause 14.1 or other applicable legislation which applies to
the provision of the Grant under this Grant Agreement.

14.4 The Grantee acknowledges that, where the Authority is required to disclose
information in line with its obligations under the Freedom of Information Act 2000, it
will be responsible for determining whether any information relating to this Grant
Agreement is exempt from disclosure. If the Grantee provides information to the
Authority which is designated as commercially sensitive or confidential these
markings will not determine conclusively whether or not disclosure by the Authority is
necessary in order to comply with its legal obligations.

14.5 The Grantee will take all reasonable steps to ensure that, where any awards to
third parties are made from the Funded Activities, those awards are compatible with
State Aid law, if applicable, including requesting such documentation from the award
recipients as is necessary to ensure compliance with State Aid law

15. Transparency

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15.1 The Grantee acknowledges that the Authority will disclose payments made under
this Grant Agreement with a value of twenty five thousand pounds (£25,000) or more
in accordance with the UK Government’s transparency agenda.

15.2 The Authority may request information about the implementation and operation
of the Project. Where the Authority makes such a request, the Authority will provide
the Grantee with the reason for its request.

15.3 The Grantee is committed to the principle of transparency and, subject to any
applicable law, the Grantee will make available to the Authority such information, as
may be requested, relating to the implementation and the operations of the Project.

16. Confidentiality

16.1 Each Party will treat the other’s Confidential Information as confidential, keep it
safe and not disclose it to a third person without the original owner’s prior written
consent, unless disclosure is expressly permitted by this Grant Agreement.

16.2 The Grantee may disclose the Authority’s Confidential Information to its Staff
who are directly involved in the implementation of the Project and who need to know
the information. Where it makes such disclosure, the Grantee will ensure that such
Staff are:

aware of and comply with the confidentiality obligations under this Grant
Agreement; and
do not use any of the Authority’s Confidential information that is received
for purposes other than the implementation of the Project and in line with
this Grant Agreement.

16.3 Clause 16.1 will not apply to the disclosure of information that:

is a requirement of law placed upon the Party making the disclosure by an

order of a court of competent jurisdiction or in order to comply with legal
requirements including but not limited to the Freedom of Information Act 2000
or the Environmental Information Regulations 2004;
occurs because information was in the possession of the Party making the
disclosure without any obligation of confidentiality to the information owner
and prior to any disclosure;
was obtained from a third party who was not subject to an obligation of
confidentiality;
was already in the public domain at the time of disclosure and this was not
due to a breach of this Grant Agreement; or
was developed independently without access to the other Party's Confidential
Information.

16.4 Nothing in this Grant Agreement will prevent the Authority from disclosing the
Grantee's Confidential Information:

to any Crown Body. All Crown Bodies receiving such Confidential Information
will be entitled to further disclose the Confidential Information to other Crown

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 Bodies on the basis that the information is confidential and is not to be
disclosed to a third party which is not part of any Crown Body;
to any person engaged by the Authority or any person authorised to
scrutinise the Authority’s activities by conducting an assurance or other
review of the Project (whether alone or as part of a wider programme of
activity which the Project is supporting);
for the purpose of the examination and certification of the Authority’s
accounts;
for any examination pursuant to Section 6(1) of the National Audit Act 1983
of the economy, efficiency and effectiveness with which the Authority has
used its resources;
to UK Parliament and Parliamentary Committees or if required by any UK
Parliamentary reporting requirement; or
to the extent that the Authority (acting reasonably) deems disclosure
necessary or appropriate in the course of carrying out its public functions.

16.5 Nothing in this clause 16 will prevent either Party from using any techniques,
ideas or know-how gained during the performance of this Grant Agreement in the
course of its normal business so long as this use does not result in a disclosure of
the other Party's Confidential Information or an infringement of the other Party’s or a
third party’s intellectual property rights.

17. Publicity – Acknowledgement of Funding

17.1 The Grantee may acknowledge the Grant provided by the Authority for the
Project in materials produced during the Funding Period and at related public events
unless the Authority directs otherwise. Where the Authority directs that its funding
must not be acknowledged the Grantee will comply with this instruction.

17.2 The Grantee must notify the Authority of any proposed promotion or publicity
regarding the Project, including where it proposes to use any of the Authority’s
branding or logos, and shall obtain the Authority’s prior written consent.

18. Conflict of Interest and Grantee commentary

18.1 The Grantee will ensure that it has adequate procedures in place to enable early
identification and effective management of any conflicts of interest which it or its
Staff may have in relation to this Grant Agreement. Where the Grantee identifies a
conflict of interest it will notify the Authority of this and provide information about how
this is being managed.

18.2 In addition to its obligations in clause 18.1, the Grantee will:

avoid expressing views which are inconsistent with the Programme Objective
when speaking to third parties in order to deliver the Project;
make clear that it does not represent or speak for the Authority or the
Government of the United Kingdom in any situation where it expresses views;
and
seek the consent of the Authority first before making any statements which
might be contrary to the requirements of clauses 18.2 (a) or (b).

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19. Amendment of this Grant Agreement

19.1 This Grant Agreement may be amended only by written agreement of the
Parties, signed by both Parties and attached to the signed original of this Grant
Agreement.

20. Breach of Grant Conditions, Temporary Suspension and Termination

Temporary Suspension of performance

20.1 Either Party may notify the other of any event or matter which was neither
caused by the Parties nor is within the control of the Parties which prevents, delays
or is likely to prevent or delay the performance of its obligations under this Grant
Agreement. In this situation, the Parties may agree to suspend the performance of
obligations under this Grant Agreement temporarily for a period of up to one (1)
calendar month.

Termination

20.2 Either Party may terminate this Grant Agreement at any time by giving at least
three (3) months (or the remaining duration of the Funding Period where that is less
than three (3) months) written notice to the other Party.

20.3 The Authority may by notice in writing to the Grantee terminate this Grant
Agreement with immediate effect if any of the following events occur:
the Grantee intends to use, has used in the past, or uses, the Grant for
purposes other than those for which it has been awarded;
the Grantee is, in the reasonable opinion of the Authority, delivering the
Funded Activities in a negligent manner (and in this context, negligence may
include (without limitation) failing to prevent or report fraud or corruption);
the Grantee obtains duplicate funding from a third party for the Funded
Activities;
the Grantee commits or has committed a Prohibited Act or fails to report a
Prohibited Act to the Authority, whether committed by the Grantee or a third
party (where that third party is a supplier, sub-contractor or downstream
delivery partner of the Grantee) as soon as they become aware of it;
the Authority determines (acting reasonably) that any director or employee of
the Grantee has:
(i) acted dishonestly or negligently at any time during the term of this Grant
Agreement and to the detriment of the Authority; or
(ii) through act or omission unfairly brought, or are likely to unfairly bring, the
Authority’s name or reputation and/or the Authority into disrepute;
the Grant is found to be unlawful State Aid;
(without prejudice to the foregoing) the Grantee commits a material breach of
the Grant Agreement that is either incapable of remedy or, where it is
capable of remedy, has not been remedied by the Grantee (to the reasonable
satisfaction of the Authority) within thirty (30) days of receiving written notice
from the Authority detailing the breach and requiring it to be remedied (and
for purposes of this sub-clause 20.3(g), a material breach may be a single
material breach or a number of breaches or repeated breaches (whether of

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 the same or different obligations and regardless of whether such breaches
are remedied) which taken together constitute a material breach);
the Grantee ceases to operate for any reason, or it passes a resolution (or
any court of competent jurisdiction makes an order) that it be wound up or
dissolved (other than for the purpose of a bona fide and solvent
reconstruction or amalgamation); or
the Grantee becomes insolvent, or it is declared bankrupt, or it is placed into
receivership, administration or liquidation, or a petition has been presented
for its winding up, or it enters into any arrangement or composition for the
benefit of its creditors, or it is unable to pay its debts as they fall due.

20.4 On termination of this Grant Agreement the Grantee will provide financial and
narrative reports (including invoices and receipts) within thirty (30) days of receiving
written notification of termination up to the date of such termination.

20.5 In the event of a change of UK government or in policy direction, this Grant

Agreement may be terminated by the Authority with immediate effect by notice in
writing.

20.6 If, at any stage, the Project outputs are not achieving the agreed objectives,
impact and delivery, the Authority may terminate the Project.

20.7 If the Authority terminates this Grant Agreement in accordance with clause 20.2,
20.3, 20.5 or 20.6 the Authority will pay the Grantee’s reasonable costs in respect of
the delivery of the Funded Activities performed up to the termination date.
Reasonable costs will be identified by the Grantee and will be subject to the Grantee
demonstrating that it has taken adequate steps to mitigate its costs. For the
avoidance of doubt, the amount of reasonable costs payable will be determined
solely by the Authority.

21. Insurance

21.1 The Grantee will ensure that it has such insurance in place as is necessary for
the normal conduct of its activities. Where it is necessary for the Grantee to
purchase additional insurance cover in order to perform its obligations under this
Grant Agreement, the Grantee will ensure that it has all relevant insurance in place
prior to the start of the Funding Period.

22. Liability, Indemnity and Accountability

22.1 Neither Party may limit its liability for personal injury or death caused by
negligence, fraud or fraudulent representation.

22.2 The Authority accepts no liability for any consequences, whether direct or
indirect, that may come about from the Grantee running the Project, the use of the
Grant or from withdrawal of the Grant. The Grantee will indemnify and hold harmless
the Authority, its employees, agents, officers or sub-contractors with respect to all
claims, demands, actions, costs, expenses, losses, damages and all other liabilities
arising from or incurred by reason of the actions and/or omissions of the Grantee in
relation to the Project, the non-fulfilment of obligations of the Grantee under this
Agreement or its obligations to third parties.

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22.3 Subject to Clause 22.2, the Authority’s liability under this Agreement is limited to
the payment of the Grant

22.4 The Authority will not be responsible for the activities of any person, organisation
or company engaged by the Grantee or its agencies as a result of this Grant
Agreement, nor will the Authority be responsible for any costs incurred by the
Grantee or its agencies in terminating the engagement of the aforementioned
persons, organisations or companies.

22.5 Although accountable to the Authority for the appropriate use of funding and
delivery of Project objectives, the Grantee will retain ultimate responsibility for the
use of the Grant and will as such be solely responsible for any adverse effects of aid
expenditure that have an undesired or unexpected result upon recipients

23. Grantee responsibility for Staff

23.1 The Grantee undertakes to provide adequate supervision of and care for its Staff,
agents and representatives.

23.2 In the event that it is necessary for the Grantee or any of its representatives or
associates involved in the Project to travel in order to perform the tasks specified in
Annex A, the Grantee will be responsible for obtaining security advice from security
providers that are established and reputable with appropriate experience, qualified
personnel and insurance cover. The costs of any specialist security provision will be
borne as part of the Project budget.

23.3 Subject to clause 23.4, where the Authority has publicly advised against all travel
to a country or region where the Project is to be implemented or where the Authority
has highlighted specific security or safety concerns, the Grantee must liaise closely
and in good time with the Authority about the feasibility of travel to such country or
region.

23.4 The Authority acknowledges that where the Grantee has access to its own
source of advice and processes for ensuring the safety and security of its personnel
(including other authorised agents) it may rely on such provisions and will bear the
responsibility for all such personnel.

23.5 The Grantee acknowledges that in some circumstances the Authority may for
security purposes require information regarding its Staff and subcontractors or other
authorised representatives. Where the Authority makes such a request the Grantee
will, subject to clause 23.6, provide the Authority with such information as the
Authority may require in order to carry out any security checks it deems necessary.

23.6 When providing information to the Authority in line with clause 23.5, the Authority
acknowledges, and the Grantee agrees, that such disclosure will be to the extent
that this is permissible under any of the following:

GDPR and any other UK data protection law which may be enacted from time
to time (if applicable);
the principles of transparency, legitimate purpose and proportionality;
any other legislation or personal data protections rules, policy or practice that
applies to the Grantee.

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24. Intellectual Property Rights

24.1 Any IPR which arises in the course of the implementation of the Project by the
Grantee will belong to the Grantee, provided that the Grantee hereby grants to the
Authority a worldwide, perpetual, royalty free licence to use such IPR for any
purpose directly connected with the Project.

24.2 Except as provided for in clause 24.1, this Grant Agreement will not grant either
Party any rights over the other Party’s IPR. In particular, neither Party will own or
assert any interest in the other Party’s existing IPR.

24.3 The Grantee warrants that it will take all reasonable steps to ensure that its
implementation of the Project under this Grant Agreement will not infringe any IPR of
any third party. The Grantee agrees to indemnify and hold the Authority harmless
against all liability, loss, damage, costs and expenses (including legal costs) which
the Authority may incur or suffer as a result of any claim of alleged or actual
infringement of a third party’s IPR arising out of the Grantee’s implementation of the
Project.

25. Dispute Resolution

25.1 The Parties will attempt in good faith to negotiate a settlement to any dispute
between them arising out of or in connection with this Grant Agreement.

25.2 The Parties may settle any dispute using a dispute resolution process which they
agree.

25.3 If the Parties are unable to resolve a dispute in line with clauses 25.1 or 25.2, the
dispute may, by agreement between the Parties, be referred to mediation in
accordance with the Model Mediation Procedure issued by the Centre for Effective
Dispute Resolution (“CEDR”), or such other mediation procedure as is agreed by the
Parties. Unless otherwise agreed between the Parties, the mediator will be
nominated by CEDR. To initiate the mediation the Party will give notice of the
intention to mediate in writing (“the ADR Notice”) to the other Party, and that latter
Party will choose whether or not to accede to mediation. A copy of the ADR Notice
should be sent to CEDR, unless other mediation is agreed upon by both Parties. If
the latter Party chooses to accede to mediation, the mediation will start no later than
14 days after the date on which the ADR Notice is sent.

25.4 The performance of the obligations which the Grantee has under this Grant
Agreement will not cease or be delayed because a dispute has been referred to
mediation under clause 25.3 of this Grant Agreement.

26. Entire Agreement

26.1 This Grant Agreement constitutes the entire agreement between the Parties and
supersedes all negotiations, representations or agreements either written or oral
preceding it.

27. Governing Law

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27.1 This Grant Agreement will be governed by and construed in accordance with
English law and (subject to clause 25) the Grantee hereby irrevocably submits to the
non-exclusive jurisdiction of the English courts. The submission to such jurisdiction
will not (and will not be construed so as to) limit the right of the Authority to take
proceedings against the Grantee in any other court of competent jurisdiction, nor will
the taking of proceedings by the Authority in any one or more jurisdictions preclude
the taking of proceedings by the Authority in any other jurisdiction, whether
concurrently or not.

Signed on behalf of the Authority: Signed on behalf of the Grantee:

Signature: Signature:

Name: Elizabeth Green Name: Noel Alonso Murray

Position: Chargé d’affaires Position: Argentine Office Director

Date: July 6, 2021 Date: July 6, 2021

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 ATTACH AS ANNEX A: THE PROJECT FINAL BID FORM
PROJECT PROPOSAL FORM

Part A: To be completed by Implementer

Project Title Strengthening Argentina’s compliance with EITI by promoting provincial adherence
to the initiative.
Priority area which this Priority #
project supports (see list Open societies and effective governance and public innovation - Expertise sharing
from the call for bids) on digitalisation of government and public innovation with national and provincial
governments, legislatures and judiciary
What is the total cost of Total Cost in USD
the Project? USD 9,900
Of this total, please detail the
cost to the UK Embassy and, if
relevant, the cost to any co- Cost to Embassy Cost to co-funders
funders. USD 9,000 USD 900 (in the form of in-kind support from DL and EITI
national government representatives)
Please attach an ACTIVITY BASED BUDGET (ABB) in Excel. Proposals without an activity based budget will
not be considered.

The ABB must include: a list of all the Activities to be carried out; the full cost of each activity; the date
of each activity.
Timing Project start date: 06.07.21 Project 30.10.21
completion
date:
Implementing Agency Name of organisation: Fundación Directorio Legislativo (FDL)
Name and Contact Details Contact person: Michelle Volpin
Email:
Tel: (+5411) 5218-4647
Address: Av. Entre Ríos 258, 3º piso "E" (C1079ABP) - C.A.B.A.

Will the Implementing Yes, we will work together with the National Technical Secretariat of EITI Argentina.
Agency be working with a This is made up of the Advisory Cabinet Unit of the Ministry of Productive
public sector institution? Development.
If yes please, include name
and contact person. Name of organization: National Technical Secretariat of EITI Argentina
Contact person: Pamela Morales Maggio
Email: pmoral@produccion.gob.ar

The project will be delivered through the Argentine Platform for Dialogo and
Sustainable Use of Natural Resources. This would also see us working with the
National University of San Martín:

Name of organization: National University of San Martín (UNSAM)

Contact person: Roberto Sarudiansky
Email: rsarudi@gmail.com

Project purpose and background

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Project Purpose
The purpose is to support and encourage the provinces of Jujuy and Salta, home to
This must be NO MORE than vast reserves of Argentina’s natural resources, to sign up to the Extractive Industries
one sentence, clearly setting Transparency Initiative, through a project that will generate knowledge, build cross-
out the “change” to be sectoral momentum, develop technical competency, and offer guidance on
delivered.
effectively proceeding toward joining the Initiative.

Background In signing up to EITI in February 2019, Argentina committed to making its extractive
In no more than 200 words, industries sector far more transparent. However, success in adhering
explain what the project will to EITI depends in large part on its take-up among the country’s provinces, which
achieve and how. the national government has no say over.  DL proposes a partnership project with
the governments of Salta and Jujuy and other interested local and national
NGOs to develop cross-sectoral capacity and momentum for the provinces
to formally join EITI. 
 
The British Embassy has previously supported Directorio Legislative in pushing
for Argentina’s provinces, including Salta, to join EITI. While in 2019 this led
to Salta’s government publicly declaring its plans to embrace the scheme, a failure
to later back that up with action led to the matter being
shelved. However, with Salta’s current government signalling renewed interest
in EITI, now would be a good moment to revive the issue.
 
For its part, the province of Jujuy is being targeted on account of, in particular, its
emerging lithium industry – of considerable interest both there and nationally. It is
also presently the recipient of other similarly aimed, extractives-oriented initiatives
with which we feel this project could align effectively.  
 
With transparency in general becoming de-prioritized amid Covid-19, it is vital that
progress on EITI (and setbacks, such as in Salta) be built upon to maintain
momentum. For this reason, DL proposes a project delivering a blend of awareness
raising, action-pressing and technical assistance to reignite/promote interest in EITI
in two of the country's most resource rich provinces.   

Project outputs and activities (outputs = what the project aims to deliver eg. report on X published by
date Y; activities = specific steps to achieve each output eg. convene experts to discuss issue X in
month Y)

Output 1: Build political and multi-sectoral will in the provinces of Salta y Jujuy for joining EITI (by
November 2021)

Activities linked to Output 1

1.1 Hold 1 x meeting with relevant CSO actors from each province.

(2 meetings in total, each a half-day online event, with approx. 10 participating

CSOs, delivered by mid-August.)

This will require some brief updating of DL’s existing CSO mapping for the
provinces.

The purpose of these meetings will be to prepare the CSOs ahead of their
involvement in the subsequent multistakeholder sessions (see 1.2), by ensuring
improved and shared thematic understanding and knowledge of how to contribute
throughout the project.

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 1.2 Deliver 1 x introductory seminar on EITI in each province

(2 seminars in total; each a full-day online event; each featuring 15-20 participants
from across sectors: local, provincial and / or national* government representatives,
together with representatives of relevant companies, universities and CSOs; to be
delivered by the end of August 202.1)

The goals of this will be to convene and create linkages among key stakeholders
from across sectors. It will explain the rationale and goals of the project and l
compellingly argue for why adherence to EITI is necessary, beneficial, can and
should be achieved collaboratively, and entails a relatively straightforward process
(allaying concerns on workload, resourcing, data disclosure, etc). In this we will
draw on the progress and achievements made by other provinces signed up to EITI
to showcase good and easy-to-implement practices and their benefits. Also taking
part in these will be central government representatives currently forming part of the
EITI national multi-stakeholder group. This will have persuasive influence
and help in offering a broader national-level vision useful to the provincial
governments and others taking part.

1.3 Run 1 x post-session recap meeting with the CSOs participating in the previous
sessions

(2 meetings in total, each a 2-hour online event, with approx. 5-10 participating
CSOs; to be delivered by the end of August.)

This will be to review and take stock of key findings and feelings to emerge from the
sessions and identify opportunities as well as ‘sticking points’ in need of attention, to
guide the CSOs and ourselves going forward.

Output 2: Provide each province with technical and action-planning support to achieve or generate
strong momentum for EITI adherence

Activities linked to Output 2

2.1 Hold (at least) 2 x technical assistance workshops in each province

(At least 4 workshops in total, half day online events, aim for approx 15
participants, mostly public officials but also CSOs and universities/academics, to
be delivered by November 2021)

This is to impart skills and tactics for giving wider impetus to EITI adherence
efforts, which could include identification and leveraging of reformist MPs, bill
drafting guidance, advice on ‘entry points’ and other enablers for spotlighting EITI,
lobbying spaces that can be seized on, relevant timelines etc.

2.2 Production of 1 x ‘EITI adherence roadmap’ for each province

(2 roadmaps in total, to be produced by the start of November 2021)

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 This will in effect constitute an action plan, bespoke for
each province, outlining sequenced steps for proceeding toward the point of
formalized EITI adherence.

2.3 Sustained follow-up consultations/ support for public officials in each province
(during November)

This will be provided once the reports and findings are released, and intended to
follow up on early progress and address any challenges or barriers. Support will be
delivered via scheduled (weekly) calls as well as ad hoc calls and emails.

2.4 1.2 Deliver communications for the project (cross cutting activity). This will be
social media-centred and aimed at generating broader mainstream interest in EITI
and transparency/governance issues.

Activities linked to Output 2

Sustainability In spite of the current circumstances and context, this year and last have seen
How will the project ensure that growing calls for an advancement on EITI implementation in Argentina, with this
benefits are sustained once the largely focused on what is now seen as the principal priority/bottleneck: promoting
project funding ends? provincial level take-up of the Initiative. The National Secretariat of Mining, the
National Secretariat of Energy, the Argentine Institute of Gas and Petroleum (IAPG)
and the Argentine Chamber of Mining Entrepreneurs (CAEM) are among those
pushing for progress in this respect.

Delivering fully on EITI is in the strong interest, too, of the national government
which, while maybe under-sourced to generate provincial EITI buy-in on its own,
clearly wants this to happen, as evidenced by its creation of a Technical Working
Group tasked with federalizing the Initiative.

We believe that given this collective interest to advance on EITI, which spans right
across the sectors and appears as strong as ever, and given our and other CSOs’
intention to keep working in the provinces beyond the project period, resources
permitting, to sustain progress on EITI goals and recommendations, there is good
reason to think that the progress made in this project can be continued going
forward.

Stakeholders Stakeholders Engagement/ communications plan

Who are the people or groups
with an interest in this project? Provincial A range of relevant and/or senior public officials will be engaged
Who will be affected by this governments at the provincial governments, including, most notably, from
project and/or can influence its their mining and energy directorates and secretariats. These will
success, either positively or be engaged right from the opening seminars through to the
negatively? What engagement technical assistance workshops and then via the post-training
have you already had with follow up consultation.
these people? How will you
manage your future
engagement with them?
Civil Society
Add more lines as required. Organizations DL is already conducting an in-depth mapping exercise for
(CSOs) CSOs in Jujuy and Salta and while this will need some
adaptation, it provides a useful basis for us to get an overview
of relevant civil society actors in each province. CSOs will be

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 engaged through the pre- and post-session meetings outlined
in the activities section, as well as via the follow up
consultations and through participation in the technical
assistance workshops.

Universities Universities in the region are other stakeholders on the EITI

agenda. The Dialogue Platform maintains a close relationship
with the Catholic University of Salta and we will be able to take
advantage of this to involve more academics in the area for the
promotion of EITI.

Relevant These would be extractives companies whose input and

companies cooperation in the EITI process is of course essential and whose
engagement we are hopeful of doing in parallel with an ongoing
DL project in Jujuy and Salta being financed by the EU. The
mentioned Platform for Dialogue and Sustainable Use of Natural
Resources has a number of links to companies in the provinces,
which we plan to utilize to engage private sector actors.

Risks Risks Management Owner

What are the key risks in That not enough We consider this a low risk Project coordinator,
implementing this project and CSOs and other owing to, as stated, our close Directorio Legislativo
how are you going to manage stakeholders links to most of the relevant
them? participate. stakeholders in the
Northwest.
Add more lines as required. If challenges are encountered
in this, there would be quick
remedial reassignment of
project resources or, if
necessary, we would draw on
our own reserves to enhance
outreach and marketing for the
workshops.
That not enough, or Again there is precedent to Project coordinator,
relevant enough, suggest this is a relatively low Directorio Legislativo
representatives of risk, albeit one we will manage
provincial carefully. In our previous EITI
governments attend awareness-raising work at
the seminars and provincial level we have been
workshops, and are successful at securing the
generally unreceptive participation of relevant public
to EITI and to sector actors. They have also
engaging with CSOs displayed interest in
and other actors. collaborating around EITI and
with CSOs. As above, should
there be challenges in this
regard, we would redirect
efforts to focus on securing the
involvement of the needed
actors, including for instance
through direct input of senior
level staff.
Name and role of Fundación Directorio Legislativo
Implementing Agency Contact person: Noel Alonso Murray, Argentina Office Director
Lead Contact

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Signature

Date June 14, 2021

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ATTACH AS ANNEX B: THE PROJECT ACTIVITY BASED BUDGET

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ANNEX C: STATEMENT OF FCO PROCUREMENT GOOD PRACTICE PRINCIPLES

1. Good procurement practice includes the key principles set out below:

- Purchasing should be done with the aim of securing value for money.
- Purchasing should be done by competition unless there is a robust justification
(legal/operational) for not having a competition.
- Buyers should have, develop and use their awareness of particular supply markets to
improve the quality and competitiveness of goods/services etc that are offered
(effective supplier management).
- Buyers (in FCO) should comply with applicable legal and international obligations.
- Wherever possible anything purchased should have been produced in a sustainable
manner.
- Ethical conduct is extremely important.

2. Ethical conduct relates in particular to ensuring that:

- Buyers’ integrity must be beyond reproach (this ties in with issues around acceptance
of gifts and hospitality from suppliers or equally offering gifts or hospitality to
suppliers – this should not happen)
- Staff involved in purchasing activity must declare any interest they have in a
particular transaction whether this is because of personal gain to them or to a family
member or close associate (effective management of potential and actual conflicts of
interest)
- The confidentiality of information is protected unless there is a lawful reason which
justifies disclosure (e.g. compliance with the Freedom of Information Act 2000,
agreementual agreement between the Grant Agreement Parties that certain types of
information can be disclosed). There may also be reasons based on government
policy which require disclosure of certain types of information.
- Any information provided to suppliers is accurate and not intentionally misleading or
misleading due to inattention on the buyer’s part.
- All suppliers are treated fairly (i.e. not favouring one supplier or acting to the
disadvantage of another)
- The competition process does not undermine ongoing relationships with suppliers.
This is about conducting purchasing activity in a way that inspires confidence in the
fairness of the process.

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ANNEX D: FURTHER GUIDANCE REGARDING ELIGIBLE EXPENDITURE

The following costs/payments will be classified as Eligible Expenditure if made for the
purposes of the Funded Activity:

I. fees charged or to be charged to the Grantee by the external

auditors/accountants for reporting/certifying that the grant paid was applied for
its intended purposes.
II. giving evidence to Select Committees;
III. attending meetings with Ministers or officials to discuss the progress of a
taxpayer funded grant scheme;
IV. responding to public consultations, where the topic is relevant to the objectives
of the grant scheme. This does not include spending government grant funds
on lobbying other people to respond to the consultation;
V. providing independent, evidence based policy recommendations to local
government, departments or Ministers, where that is the objective of a taxpayer
funded grant scheme, for example, ‘What Works Centres’; and
VI. providing independent evidence based advice to local or national government
as part of the general policy debate, where that is in line with the objectives of
the grant scheme.

A payment is defined as taking place at the moment when money passes out of Grantee
control. This may take place when:

I. Legal tender is passed to a supplier (or, for wages, to an employee);

II. A letter is posted to a supplier or employee containing a cheque; or
III. An electronic instruction is sent to a bank/building society to make a payment
to a supplier or employee by direct credit or bank transfer.

The Grantee must not deliberately incur liabilities for Eligible Expenditure in advance of need;
nor pay for Eligible Expenditure sooner than the due date for payment.

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INELIGIBLE EXPENDITURE

The following costs must be excluded from Eligible Expenditure. The list below does not
override activities that are deemed eligible in this Grant Agreement:

I. Paid for lobbying, which means using grant funds to fund lobbying (via an
external firm or in-house staff) in order to undertake activities intended to
influence or attempt to influence Parliament, Government or political activity; or
attempting to influence legislative or regulatory action;
II. using grant funds to directly enable one part of government to challenge
another on topics unrelated to the agreed purpose of the grant;
III. using grant funding to petition for additional funding;
IV. payments for activities of a political or exclusively religious nature.
V. Goods or services that the Grantee has a statutory duty to provide;
VI. Payments reimbursed or to be reimbursed by other public or private sector
grants
VII. Contributions in kind (i.e. a contribution in goods or services, as opposed to
money);
VIII. The acquisition or improvement of fixed assets by the Grantee (unless the grant
is explicitly for capital use – this will be stipulated in the Grant Offer Letter);
IX. Gifts to individuals other than promotional items with a value that does not
exceed the Monetary Thresholds as stated in UK Cabinet Office guidance and
Ministerial Code to any one individual within a one year period;1
X. Entertaining (entertaining for this purpose means anything that would be a
taxable benefit to the person being entertained, according to current UK tax
regulations);
XI. Statutory fines, criminal fines or penalties; or
XII. Liabilities incurred before the issue of this funding agreement unless agreed in
writing by the Funder;
XIII. The Grantee’s Net Profit

1
Thresholds vary depending on where the gift is received and who it came from. The thresholds follow Cabinet Office guidance
and the Ministerial Code and are currently:

a. £25 for a gift received in the UK from a UK source (eg a company)

b. £75 for a gift received in the UK from a foreign source (eg an Embassy)
c. £140 for gifts received from any source whilst serving or travelling overseas

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ANNEX E: SUPPLIER CODE OF CONDUCT

1) Value for Money and Governance

Value for Money is an essential requirement of all Authority commissioned work. All
Suppliers must seek to maximise results, whilst driving cost efficiency, throughout the
life of commissioned programmes. This includes budgeting and pricing realistically
and appropriately to reflect delivery requirements and levels of risk over the life of the
programme. It also includes managing uncertainty and change to protect value in the
often-challenging environments that we work in.
Suppliers must demonstrate that they are pursuing continuous improvement to reduce
waste and improve efficiency in their internal operations and within the delivery chain.
The Authority expects suppliers to demonstrate openness and honesty and to be realistic
about capacity and capability at all times, accepting accountability and responsibility for
performance along the full delivery chain, in both every-day and exceptional
circumstances.

2) Ethical Behaviour
Suppliers and their Sub-Contractors act on behalf of government and interact with
citizens, public sector/third sector organisations and the private sector These
interactions must therefore meet the highest standards of ethical and professional
behaviour that upholds the reputation of government.
Arrangements and relationships entered into, whether with or on behalf of the
Authority, must be free from bias, conflict of interest or the undue influence of others.
Particular care must be taken by staff who are directly involved in the management of
a programme, procurement, contract or relationship with the Authority, where key
stages may be susceptible to undue influence. In addition, Suppliers and their Sub-
Contractors must not attempt to influence an Authority member of staff to manipulate
programme monitoring and management to cover up poor performance.
Suppliers and their Sub-Contractors must declare to the Authority any instances where it
is intended that any direct or delivery chain staff members will work on Authority funded
business where those staff members have any known conflict of interest or where those
staff members have been employed by the Crown in the preceding two years. Suppliers
and their Sub-Contractors must provide proof of compliance with the HMG approval
requirements under the Business Appointment Rules.

3) Transparency and Delivery Chain Management

The Authority requires full delivery chain transparency from all Suppliers. All delivery
chain partners must adhere to wider HMG policy initiatives including the support of
micro, small and medium sized enterprises (MSMEs), prompt payment, adherence to
human rights and modern slavery policies and support for economic growth in
developing countries.
Suppliers must engage their delivery chain supply partners in a manner that is
consistent with the Authority’s treatment of its Suppliers. This includes, but is not
limited to: pricing; application of delivery chain risk management processes; and
taking a zero tolerance approach to tax evasion, corruption, bribery and fraud in
subsequent service delivery or in partnership agreements.

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4) Environmental Issues
Suppliers must be committed to high environmental standards, recognising that the
Authority’s activities may change the way people use and rely on the environment, or
may affect or be affected by environmental conditions. Suppliers must demonstrate
they have taken sufficient steps to protect the local environment and community they
work in, and to identify environmental risks that are imminent, significant or could
cause harm or reputational damage to the Authority.

5) Terrorism and Security

Suppliers must implement due diligence processes to provide assurance that UK
Government funding is not used in any way that contravenes the provisions of
applicable terrorism legislation.

6) Safeguarding, Social Responsibility and Human Rights

Safeguarding, social responsibility and respect for human rights are central to the
Authority’s expectations of its Suppliers. Suppliers must ensure that robust procedures
are adopted and maintained to eliminate the risk of poor human rights practices within
their complex delivery chain environments funded by the Authority. These practices
include sexual exploitation, abuse and harassment; all forms of child abuse and
inequality or discrimination on the basis of race, gender, age, religion, sexuality,
culture or disability. Suppliers must place an emphasis on the control of these and
further unethical and illegal employment practices, such as modern day slavery,
forced and child labour and other forms of exploitative and unethical treatment of
workers and aid recipients. The Authority will expect a particular emphasis on
management of these issues in high risk fragile and conflict affected states (FCAS),
with a focus on ensuring remedy and redress if things go wrong.

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