Common use of Paying Authority Clause in Contracts

Paying Authority. Provisions on financial flows, the paying authority, and financial management will be elaborated as soon as possible in an agreement between the FMO and the FP, confirmed by the Kingdom of Norway and the Republic of Slovenia in the form of an exchange of letter. The agreement shall contain provisions on the role of the National Fund and the Central Finance and Contract Unit. The agreement shall put in place an efficient payment system ensuring that funds from the Norwegian Financial Mechanism are being used efficiently and correctly and in accordance with the principles of sound financial management. The system shall ensure that the processing of payment claims is independent from other entities or agencies involved in the implementation of the Norwegian Financial Mechanism. If the full involvement of the National Fund and/or the Central Finance and Contract Unit in the verification of payment claims, certification of disbursement requests, and other tasks related to the financial flow and financial management of the Norwegian Financial Mechanism in the Beneficiary State is not be possible, the FMO reserves the right to appoint and hire a monitoring agent whose task will be to certify the correctness and accuracy of submitted disbursement requests. The cost of such a monitoring agent will be deducted from the net amounts referred to in Article 1.9 of the Rules and Procedures. The involvement of a monitoring agent will not relieve the FP of its responsibility to ensure the correctness and accuracy of payment claims and the duty to report on any suspected or detected irregularities. The agreement shall be concluded and confirmed before calls for proposals take place and before any project proposals are submitted to the FMO.