PRAGUE CITY COUNCIL

GRANT POLICY
OF THE CITY OF PRAGUE
IN THE FIELD OF CULTURE AND THE ARTS

Prepared by:

The Committee of Prague City Council for appraisal of grants by the City of Prague in the field of culture and the arts
and
OKP MHMP
(The Department of Culture, Monument care and Tourism of Prague City Council)

in June 2006

GRANT POLICY
OF THE CITY OF PRAGUE
IN THE FIELD OF CULTURE AND THE ARTS

CONTENTS
INTRODUCTION									 3

PRINCIPLES FOR PROVISION OF SPECIFIC FUNDING – GRANTS BY THE CITY OF PRAGUE
General provisions								 4
Submission of applications							 7
-	Form									 7
-	Project									 8
-	Compulsory appendices to the application				 8
-	Evidence of the applicant’s legal subjectivity				 9
-	Evidence of current bank details						10
Appraisal of applications								11
Provision of grants								12
Closing provisions								13

Bodies of the City of Prague active in terms of the City grant system 		14
Principles of grant proceedings							15
Organisational provision of the activities of the grant committee		16

CONCLUSION										18

INTRODUCTION

The grant system in the field of culture and the arts is one of the most important financial tools for the Cultural policy of the City of Prague. Is supported by Law no. 131/2000 Coll., on the City of Prague, which in terms of the independent competence of the city, sets care according to article 16, in accordance with the local conditions and local habits for creation of conditions for the development of social care and in order to satisfy the requirements of its citizens – among other things, cultural development.

It is also supported by Law no. 203/2006 Coll., on certain types of support for culture and on change to certain related laws, as amended by later regulations, which defines public cultural services in article 2, which consist of making artistic works and cultural heritage available to the public and gaining, processing, protection of, preservation and allowing access to information, which serves to satisfy the cultural, cultural-instructional or cultural-educational requirements of the public. 

Grants have been available since 1995. They are intended to support cultural activities by non-profit organisations, cultural institutions and other natural persons and corporate bodies that work in various areas of cultural activity and are in contact with institutions and citizens of the City of Prague. The basic method for registration of grants at Prague City Council (ZHMP) was set in 2002. Optimisation of the grant system occurred in 2005-2006 in accordance with the formulated cultural policy of the City of Prague.

These Principles for provision of specific funding – grants by the City of Prague are supposed to contribute to a maximum level of transparency and expedience of provision of finances in the field of culture and the arts.

PRINCIPLES FOR PROVISION OF SPECIFIC FUNDING – GRANTS BY THE CITY OF PRAGUE

I. GENERAL PROVISIONS

Entities (natural persons or corporate bodies) entitled to apply for a grant at those, which perform cultural and artistic activities within the territory of the City of Prague and which are registered according to the special legal regulations valid in CZ and which fulfil all conditions as set out by law for the pertinent activity. Corporate bodies submit projects via their statutory representative.

Grants are only provided to main organisers, producers or coordinators, who are responsible for the implementation of projects, operations and activities in terms of their own production or co-production.

Applications may not be submitted by state organisational departments, regional autonomous units (i.e. municipalities, cities, county boroughs, city districts and wards) and contribution organisations established by them. 

A grant application for a project with the same content may not be submitted in terms of other areas of the grant system of the City of Prague at a different department in Prague City Council.

Grants are intended for reimbursement of loss-making project costs and may not be used for the purpose of profit. 

Focus of grants by the City of Prague for culture and the arts
Grants provided by the City of Prague are allocated in the following areas: performing arts (theatre, dance and musical projects), visual arts (fine art, new media, photography, applied art/design), multimedia, literature (specialised publications with a Prague theme, with the exception of periodicals), film and cultural heritage (apart from monument care).

In category no. 1 – four-year grant for activity
A four-year grant for continuous cultural and artistic activity by entities implemented in Prague. 
Closing date: October 
Intended for entities, which operate year-round (a minimum of 10 months in the year) cultural and artistic activity within the territory of the City of Prague, the pivotal content of which is own production and co-production of cultural programmes for the public (even without a permanent company). The applicant is to submit the programme concept and dramaturgy for the four-year period in question. 
In category no. 2 – four-year grant for projects
A four-year grant for individual projects implemented in Prague.
Closing date: October
Intended for organisers of individual events in the fields of culture and the arts, e.g. theatre, musical, dance, creative art, film and multimedia, which are implemented every year within the territory of the City of Prague. The applicant is to submit the programme concept and dramaturgy for the four-year period in question. 
In category no. 3 – one-year grant for activity
A one-year grant for continuous cultural and artistic activity by entities implemented in Prague. 
Closing date: October
Intended for entities, which operate year-round (a minimum of 10 months in the year) cultural and artistic activity within the territory of the City of Prague, the pivotal content of which is own production and co-production of cultural programmes for the public (even without a permanent company). The applicant is to submit the programme concept and dramaturgy for the year in question.
In category no. 4 – one-year grant for projects
A one-year grant for individual projects implemented in Prague
Closing date: October
Intended for organisers of individual events in the fields of culture and the arts, which will be implemented within the territory of the City of Prague in the year following the closing date (this does not concern issue of specialist publications with a Prague theme). 
Only publishers of the publication itself may apply for issue of a grant for publication of a specialist publication with a Prague theme in the field of culture and the arts (with the exception of periodicals), incl. publications for the blind in Braille. This must be published in the year following the closing date. The application must include a brief content of the work, preliminary calculation of costs for its publication and a complete finished manuscript ready for publication in a sealed envelope marked MANUSCRIPT. In the event of a grant being allocated in this thematic field, the recipient of the grant will be contractually bound to provide 10 copies of the publication for non-commercial use and promotion of the City of Prague.
In category no. 5 – grant for artists and organisers who are just starting out for projects that last a maximum of 12 months
Closing date: October + April of the following year
Intended for applicants who have not as of yet received support from the budget of the City of Prague, for projects with a maximum total budget of up to CZK 100,000.00.
In category no. 6 – Prague culture abroad
A grant for support of presentation and promotion of Prague culture abroad.
Closing date: October + April of the following year
Intended for projects, which present and promote Prague culture abroad. Invitation by the foreign partner is to be included in the application. A separate grant application is to be submitted for each presentation in a different country with the exception of a tour, where presentations in different countries are not linked in terms of dates.
In category no. 7 – international cooperation in Prague
A grant for support of international cooperation by entities active in Prague in the field of culture and the arts – projects for international cooperation held within the territory of Prague (projects implemented in connection with important national and international events in the year in question). 
Closing date: October + April of the following year
Intended for entities, which hold presentations of foreign artistic productions within the territory of the City of Prague. Confirmation of participation by the foreign partner in Prague must be included with the application.
In category no. 8 – grant for support of artistic and cultural activities in city districts
Closing date: October + April of the following year
A grant for projects that enliven the cultural life in city districts of the City of Prague, to which the city district in question contributed at least the same amount as is requested from the City of Prague from their budgets and which will be implemented within the territory of the City of Prague. 
A conditions for gaining the grant is approved financial support by the city district in which the applicant is active. If the CD has not decided by the closing date, the applicant is to enclose confirmation with their grant application that the applied for a financial contribution from the CD in question. Evidence of the final resolution of the city district is to be provided to the Department of Culture, Monument care and Tourism of Prague City Council (hereinafter only “OKP MHMP”) by 18 May of the year in question.

Prague City Council may announce a thematically focused grant according to the current requirements of the City of Prague.

All information about grants by the City of Prague in the field of culture and the arts is provided by OKP MHMP.

Main principles for allocation of grants:

-	Timely and complete submission of application (see chap. II.)
-	Conformity of the application with the stated grant categories and criteria 
-	Correct accounting for and appraisal of previous projects supported from the budget of the City of Prague

When making a decision concerning allocation of a grant, the form of legal subjectivity of the applicant is not taken into account. The decisive factors are the project submitted, conformity with the cultural policy of the City of Prague, its feasibility including appropriateness of costs and fulfilment of the minimum three criteria stated. One of the recommendation criteria when appraising a grant application is provision of project financing from several sources.

Grants are appraised according to the following criteria:

-	Artistic merit of the project, i.e. inventive nature of the dramaturgy, curatorial or editorial concept; own artistic creation and ability of the applicant to convey this on a high artistic and professional level.

-	Context and potential of the project with a view to its international overlap
-	Merit of the project from the point of view of preservation and development of artistic variety, traditions and support for cultural alternatives.

-	Integration of various specific groups of inhabitants of the City of Prague into artistic and cultural activities both actively as implementers and passively as onlookers, listeners and visitors.

-	Increase in cultural and intellectual merit from the point of view of development of an educated society.

-	Accessibility of cultural services to the inhabitants in individual parts of the City of Prague.

Applicants must respect the following rules:

It is possible to use grants from the City of Prague to cover a max. of 70 % of the budget costs for the projects. In the case of grants allocated by the City of Prague for projects where an entrance fee will not be collected, publicly financed means from the city may make up as much as 90% of the budget costs for the project.

One condition for gaining a grant is transparent bookkeeping and appropriateness of the planned costs. In the case of four-year grants in excess o CZK 1,000,000.00 the application absolutely must also include the applicant’s Annual report, which is also publicised on the applicants web pages. The Annual report will include a report about the activity of the entity, including information about the personnel structure of the entity, a well-arranged structured budget, which will show costs and incomes for the entity, annual final accounts (including all appendices as set out by the relevant legal regulations). Entities, which must have an auditor by law are to include a copy of the auditor’s report into the Annual report for the year in question (for more information, see point II.)

Only entities, which gained grants for individual projects over the previous two years or which can prove continuous activity while fulfilling all legal, economic and contractual liabilities connected with this may apply for grants for year-round activity.

Only entities, which have drawn on a grant for year-round activity in accordance with the contractual conditions for at least the past two years may apply for a four year grant, and/or those who gained a grant over the past two years for individual projects and/or are able to prove continuous artistic activity over the past two years including fulfilment of all legal, economic and contractual liabilities connected with this. In justified cases, if change occurs to the legal subjectivity of the applicant (e.g. transformation), the preservation of their legal and artistic continuity is respected. In the event of allocation of a grant in this category, the recipient will be contractually bound to cooperation during regular annual evaluation of their activities and submission of financial reports.

The applicant agrees to a public hearing, to which they may be called during the course of appraisal of the application. 

In the event a grant is allocated, a contract is concluded with the applicant, which sets out the conditions for use and drawing on the grant.

II. SUBMISSION OF APPLICATIONS

The application must be submitted:
a)	In printed format in four identical copies (1 original + 3 copies), if it was drawn up in electronic format, a copy of this is also to be sent by E-mail 
b)	Electronically, affixed with an electronic signature to the address of the OKP MHMP

The grant application must contain:
1.	A completed application form
2.	The project
3.	Compulsory appendices to the application

The absence of any of the above-mentioned requirements will result in the application being rejected!

II.1.	Form
It is essential that all sections be filled in, in Czech, in typed print or block capital letters. If an electronic version of the form is used, the wording of the sections is not to be altered. Information can be elaborated on in the appendices. Information about the legal subjectivity will be precisely entered in the application form in accordance with registration of the applicant. 
The applicant is to confirm the affidavit concerning the truthfulness of all information stated in the form on the submitted application with their signature. If any false information is stated, the grant application submitted to the City of Prague will be rejected and no grant will be allocated.

After a decision is made by the pertinent body of the City of Prague (Executive Council or Prague City Council) on provision of a grant the grant recipient is to provide attested documentation about their legal subjectivity and current bank details in accordance with points II.4 and II.5 within 15 days, at the latest however by the date the contract on provision of the grant is concluded on the date as determined by the Executive Council or Prague City Council (RHMP).
If the required documents are not provided by the deadline stated, the contract will not be concluded.
II.2.	Project
It is essential that the content, aim and merit be stated in the project be. Applicants for a four-year grant or for support for year-round professional activity are to present the dramaturgy for individual project years – in detail for the first two years and at least in general for later years. It is essential that the current activity of the grant applicant be characterised. Any other possible appendices to the application that are not compulsory may be affixed by the applicant as they see fit (e.g. newspaper cuttings, reviews and similar), but to a maximum extent of 4 pages.
II.3.	Compulsory appendices to the application
Compulsory appendices are always specified more closely in the updated application form and detailed principles, which are approved for the whole calendar year, whereas these include:
1)	A detailed description of the project including dramaturgical plan
2)	Itemised budget for project costs and incomes
3)	Minimum performance indicators (only for projects for one-year or several-year professional artistic activity)
4)	Summary of the applicant’s activities over the previous two years from commencement of the project
5)	Professional C.V. of the person responsible for the project (this concerns professional artistic activity)
6)	Annual report (this concerns applicants for four-year grants or applicants for support for year-round professional activity with an amount requested in excess of CZK 1,000,000.00. These are to submit an annual report, part of which is the annual final accounts including appendices to the annual final accounts as set out by the relevant legal regulations. Entities, for which this obligation is not directly imposed by law are to submit the appropriate documentation and information containing the following:
a)	Summary of activities in the field of culture and the arts for the calendar year in question
b)	Summary of financial assets gained in the calendar year in question
- from funding and grants from public financial sources
- from gifts and other contributions 
- from own activities in the field of culture and the arts
- from business not in the field of culture and the arts (as the case may be from    secondary or additional activities)
c)	Itemised summary of costs and incomes in the calendar year in question.

•	Applicants for support for four-year and one-year projects concerning professional art in excess of CZK 200,000.00 are to submit: 

-	Appendix no. 1 – detailed description of the project/dramaturgical plan 
-	Appendix no. 2 – project budget – costs for the project, project income (see application form)
-	Appendix no. 3 – anticipated min. performance indicators (table inserted into the application form).
-	Appendix o. 4 – summary of activities performed by the applicant over the past two years 
-	Appendix no. 5 – professional C.V. of the person responsible for the project

•	Applicants for four-year grants or for support for year-round professional activity with a requested amount in excess of CZK 1,000,000.00 are to submit their Annual report, which is to contain the annual final accounts including appendices to the annual final accounts as set out by the relevant legal regulations. Entities, for which this obligation is not directly imposed by law are to submit the appropriate documentation and information containing the following:

a)	Summary of activities in the field of culture and the arts for the calendar year in question
b)	Summary of financial assets gained in the calendar year in question
- from funding and grants from public financial sources
- from gifts and other contributions 
- from own activities in the field of culture and the arts
-from business not in the field of culture and the arts (as the case may be from    secondary or additional activities)
   c) Itemised summary of costs and incomes in the calendar year in question

•	Applicants for grants for individual professional projects up to the level of CZK 200,000.00 and for projects for support of year-round activities in the field of professional art are to submit:

-	Appendix no. 1 – project description
-	Appendix no. 2 – a detailed budget of costs and incomes itemised into individual specific items according to the attached description of its structure
-	Appendix no. 3 – summary of activities performed by the applicant over the past two years (only in general for activities that do not concern professional artistic work)
-	Appendix no. 4 – professional C.V. of the person responsible for the project (this does not concern non-professional artistic activities)

II.4.	Evidence of the applicant’s legal subjectivity
Evidence of the applicant’s legal subjectivity will be provided in the form of one original, not older than 6 months or on attested copy, not older than 6 months and submitted at the latest within 15 days of decision being made by the pertinent body of the City of Prague (Executive council and Prague City Council), at the latest however by the date the contract on provision of the grant is signed at the date as determined by the RHMP in the following manner:

a)	Non-profit organisations are to submit:
1.	Extract from the register of non-profit organisations not older than 6 months in original format or an attested photocopy
2.	Any further pertinent authorisation to do business, if required by special regulations – extract from the trade register not older than 6 months in original format or attested photocopy not older than 6 months
c)	Foundations and foundation funds are to submit:
1.	Extract from the register of foundations not older than 6 months in original format or attested photocopy
2.	Any further pertinent authorisation to do business, if required by special regulations – extract from the trade register not older than 6 months in original format or attested photocopy not older than 6 months 
d)	Unincorporated associations are to submit:
1.	Certification from the Czech Ministry for the Interior concerning the validity of their registration not older than 6 months in original format or attested photocopy
2.	Registered articles of association in attested photocopy format not older than 6 months (for unincorporated associations registered for a period shorter than 6 months, it is sufficient to submit only the registered articles of association before submission of the application in attested photocopy format)
3.	Valid documentation concerning authorisation of the person entitled to act on behalf of the applicant (in original or attested photocopy format not older than 6 months), the application is to include documentation concerning election of the pertinent statutory representative in original or attested photocopy format not older than 6 months
e)	Natural persons not recorded in the Commercial Register are to submit:
Extract from the Trade Register not older than 6 months in original of attested photocopy format 
f)	Natural persons recorded in the Commercial Register are to submit:
1.	Extract from the Commercial Register not older than 6 months in original or attested photocopy format 
2.	Any further pertinent authorisation to do business, if required by special regulations – extract from the trade register not older than 6 months in original format or attested photocopy not older than 6 months.
g)	Self-employed persons, owners of copyright, including rights related to copyright according to Law no. 121/2000 Coll., the Copyright Law, as amended by later regulations, are to submit:
Registration for income tax as a self-employed person in original or photocopy format.
h)	Commercial entities (e.g. joint stock companies, limited liability companies, coops and public trading companies) are to submit:
1.	Extract from the Commercial Register not older than 6 months in original or attested photocopy format
2.	Any further pertinent authorisation to do business, if required by special regulations – extract from the trade register not older than 6 months in original format or attested photocopy not older than 6 months 
If another person than the person entitled to do so as set out in the documents submitted is acting on behalf of the applicant, they must submit a warrant of attorney, granted by the pertinent body or person responsible, in original of photocopy format not older than 6 months. 

If the required documents are not submitted by the stated deadline, the contract will not be concluded.

II.5.	Evidence of current bank details
Submission of either a photocopy of the contract between the grant applicant and the banking institution including current unaltered account number, or confirmation from the institution in question including statement of the account owner and current bank account number or photocopy of an account statement in the section without financial information. 

Forms with conditions for submission of grant applications are available:
1.	In the information centres of Prague City Council: Mariánské nám. 2, Prague 1 and Jungmannova 29, Prague 1
2.	On the web page: www.praha-mesto.cz (under “ÚŘEDNÍ DESKA – Granty”)
3.	On the web page: www.praha-mesto.cz (under “KULTURA – Granty”)

Contact site for grants by the City of Prague in the field of culture and the arts:
Department of Culture, Monument care and Tourism of Prague City Council

Consultation hours for formal preparation of applications:
Every Monday from 1.00 pm – 5.00 pm and Wednesday from 9.00 am – 12.00 midday and 1.00 pm - 6.00 pm.

Place for submission of applications:
Projects with all required documentation and marked GRANT KUL OKP MHMP are to be submitted continuously either in the registry office (mail room) at the Department for Culture, Monument care and Tourism of Prague City Council at the following address: OKP MHMP, Staroměstské nám. 4, Prague 1, 2nd floor (in 2006) and Jungmannova 29, Prague 1 (from 2007), or in the main mail room of Prague City Council, Mariánské náměstí 2, Prague 1, or as the case may be, in electronic format, affixed with an electronic signature, at the latest by the closing date by 6.00 pm. If a project is sent by post, the date on the postal stamp is decisive for adherence to the closing date.

III. APPRAISAL OF APPLICATIONS 

Applications are first recorded and appraised by the OKP MHMP, to see whether they fulfil the requisite formal requirements. The content of individual applications is then appraised by the Committee of the Executive Council of the City of Prague for appraisal of grants by the City of Prague in the field of culture and the arts (hereinafter only Grant committee). The Grant committee is made up of representatives of the City of Prague, Prague City Council and independent experts (who appraise individual applications on the basis of their professional knowledge and conscience, not previously agreed standpoints or the interests of individuals and/or formal or informal groups). Members of the Grant committee may ask for additional external evaluations to supplement their negotiations. Appraisal of grant applications includes public hearings, which serve for presentation of the activities of grant applicants requesting an amount in excess of CZK 1,000,000.00, or as the case may be also other applications according to the requirements of the Grant committee or at the request of the grant applicants themselves.  

The Grant committee proposes projects intended for support from the budget of the City of Prague and the specific level of support. In the case of applications up to the level of CZK 200,000.00 decision concerning allocation of grants and level of support is made by the Executive council of the City of Prague and in the case of applications in excess of CZK 200,000.00 decision is made by Prague City Council itself. Decisions made by the Executive Council and Prague City Council are final. There is no legal entitlement to support.

General course of grant proceedings

1.	Appraisal of the previous grant proceedings, proposal of changes and preparation for setting of grant proceedings						      Grant committee
OKP MHMP

2.	Setting of the grant proceedings, publication of the principles, categories and closing dates 
Executive council of the City of Prague

3.	Registration of accepted projects, check on formal requirements and conditions in terms of the grant proceedings set, creation of annotation for the projects for the Grant committee, rejection of applications that do not fulfil formal requirements 											OKP MHMP

4.	First round of negotiations by the Grant committee		      Grant committee

5.	Public hearing of applicants according to declared conditions, or as the case may be requirements set by the Grant committee				OKP MHMP

6.	Second round of negotiations by the Grant committee the output of which is proposal of projects recommended for support including specific amounts proposed									      Grant committee

7.	Processing of written documentation (minutes of the meeting of the Grant committee and materials for the RHMP and ZHMP) for decision to be made by the Executive council and Prague City Council						OKP MHMP

8.	Negotiation of proposals by the Grant committee in the Commission for Culture, Monument care and Tourism of Prague City Council						          				          Commission of Prague City Council

9.	Approval of proposals for allocation of grants in the RHMP and ZHMP		     								RHMP and ZHMP

10.	Publication of the results of grant proceedings, conclusion of grant contracts, financial fulfilment, checks on implementation of the projects including continuous checks on drawing of the public finances provided 					OKP MHMP

11.	Subsequent check on the method of drawing on public financial support – grants – provided									OKC MHMP

12.	Evaluation of continuous annual and final reports on public financial support – grants – provided									OKP MHMP

No partial information is provided until a final decision is made concerning allocation of a grant! 

Results of grant proceedings will be publicised: 
1.	On the information board of OKP MHMP, Prague 1, Jungmannova 29
2.	On the web site: www.praha-mesto.cz (ÚŘEDNÍ DESKA – Granty)
3.	On the web site www.praha-mesto.cz (KULTURA – Granty)
4.	By written notice to applicants who were not successful (without reason being given for the final decision).
5.	By conclusion of a contract with the grant recipient concerning provision of specific funding – the grant – according to the provisions of article 51 of the Civic Code.

Notification concerning the results of grant proceedings are final and no appeal can be made against this.

IV. PROVISION OF GRANTS
Provision of grants is bound to decision by the Executive council and Prague City Council as well as to conclusion of a contract and payment of financial support to the grant recipients account. One condition is settlement of outstanding debts by the City of Prague vis-à-vis applicants for the previous period as of the day the grant application is submitted. Grants cannot be allocated to applicants in the event of unresolved accounting for any finances whatsoever allocated by the City of Prague.

According to the provisions of article 51 of the Civic Code, a contract for provision of funding – a grant – is concluded by the City of Prague with a grant recipient whereas acceptance of this is governed by the valid tax regulations, especially law no. 586/1992 Coll., on income tax, as amended by later regulations. Among other things, the contract will contain conditions for utilisation and drawing on the grant. The recipient is obliged to allow representatives of OKP MHMP to continuously monitor the implementation of the project and drawing on finances.

Once concluded, the contract between the grant provider and the grant recipient is then affixed with a clause according to the provisions of article 43 of law no. 131/2000 Coll., on the City of Prague, as amended by later regulations.

The grant is remitted by the provider to the recipient’s account as set out in the header of the contract within 30 days of the contract being affixed with the previously mentioned clause.

V. CLOSING PROVISIONS

1.	Provision of a grant in the current calendar year, as well as this possibly not being drawn on or not fully drawn in full, does not provide grounds on the part of the grant recipient for provision of a grant in following years.
2.	Grants are provided exclusively for non-investment costs connected to the implementation of projects. It is not possible to use grants to pay for acquisition of plots of land, constructions, buildings and their technical amelioration (the so-called construction investment) or their depreciations, depreciations of long-term tangible assets, entertainment, refreshments, gifts, costs related to performance outside the territory of the City of Prague (e.g. for transportation or food subsidies) – except for grant presentation of Prague culture themes abroad, costs connected with acquisition of sound and image recordings of the applicant’s artistic productions, implemented for the purpose of future sale. This restriction does not apply to costs connected with acquisition of sound and image recordings of the applicant’s artistic productions, implemented for the purpose of documentation, archiving and promotion of the applicant’s artistic productions. If the recipient is a VAT payer, they are not entitled to pay for this from the grant. This restriction does not apply to VAT in the case of the recipient’s costs, which tare incurred for them in relation to benefit/fulfilment, which is exempt from fulfilment or taxable fulfilment from the point of view of VAT. 
3.	Use of grants from the City of Prague is subject to public administration checks on how the grant provided is being used, i.e. how public funds are being used. The applicant will be contractually bound to create conditions for the provider – the City of Prague – to carry out such checks in accordance with law no. 320/2001 Coll., on financial checks in public administration and on change to certain laws, as amended by later regulations and will provide all necessary documentation for this purpose, including accounting, financial and statistical reports. This applies at any time over the duration of the project for which the grant has been provided and also for a period of 5 years from final implementation of the whole project, after which the recipient is obliged according to article 31 para. 2 clause b) and c) of law no. 563/1991 Coll., on accounting, as amended by later regulations, to keep accounting documents and records.
4.	In the event that the project of part of it is to be implemented using contractors, procedure is to be followed according to law no. 137/2006 Coll., on public tenders.
5.	There is no legal entitlement to provision of a grant.
6.	Projects submitted to the OKP of Prague City Council including appendices to these will not be returned.

These principles are based on the Basic methodology for registration of grants by the MHMP, approved by the Executive council of the City of Prague through resolution no. 1870 of 5.11.2002, where definition is made that grants are finances from the budget of the City of Prague, which are provided for approved projects in the pertinent grant area and are binding for all applicants.

Bodies of the City of Prague active in terms of the City grant system in the field of culture with basic definition of their standing and competences

Department of Culture, Monument care and Tourism of Prague City Council (OKP MHMP)

The Department of Culture, Monument care and Tourism of Prague city council fulfils an administrative and organisational function related to the implementation of grant proceedings, it also ensures preliminary, continuous and final checks on the entities that are supported by these grants. Apart from this, the department also provides consultation and methodical aid to grant applicants.

It implements the resolutions of the RHMP and the ZHMP, draws up and processes contracts on provision of specific funding – grants by the City of Prague, signed on behalf of the City of Prague by the pertinent member of the Executive council of the City of Prague and ensures payment of such grants. It checks the implementation of the projects including continuous checks on the method of drawing on the public financial support provided – grants. 

The competence of the department for evaluation of the formal accuracy and completeness of received application as have been increased. The department rejects applications, which do not fulfil the pre-set requirements. A summary is held of rejected applications including reasons for these being rejected. The department also holds a record or all applications appraised by the committee, archives the expert appraisals gained as well as protocols of checks carried out and final appraisal of individual grants that have been implemented for their use when appraising future applications. It draws up documentation for the Grant committee in the form of informative summaries, part of which are annotations concerning individual projects, which include the “circumstances” for appraisal of the project (basic information about the applicant, the project, the location where the project is to be implemented, frequency of outputs (performance, premiere, concerts, cultural programmes and other) including the history of support by the City of Prague in the past two to three years.

The Committee of the Executive council of the City of Prague for appraisal of grants by the City of Prague in the field of culture and the arts (Grant committee)

The main task of the Grant committee is appraisal of received grant applications in connection to the conditions and criteria as set out in advance for grant proceedings and conformity with the aims of the cultural policy of the City of Prague. 

This is also focused on appraisal of the whole field of culture in all contexts, processing of continuous analyses of interdepartmental ties, searching for new cultural activities suitable for support by the City of Prague including updating of grant themes. After completion of grant proceedings, the committee formulates its conclusions into output data intended for the representatives of the city. These are taken into account when announcing grants by the City of Prague for the next period.

During its activities, the committee applies current angles on the significance of culture in the life of the city as a whole and continuously specifies the criteria for overall appraisal of the success of culture and its merit for the general public. During its activities, the committee closely cooperates with the Commission for Culture, Monument care and Tourism of the City of Prague.

In order to appraise grants by the City of Prague, the Committee of the Executive council of the City of Prague is elected by the Executive council of the City of Prague on the basis of nomination from a wide circle of representatives from the cultural community. It has thirteen members and a secretary who is an employee of the City of Prague and mediates service for the activities of the committee. Five members of the committee including the chairman are representatives of the City of Prague and eight members are generally acknowledged personalities from the sphere of culture.

Commission for Culture, Culture, Monument care and Tourism of Prague City Council
Negotiates and discusses proposals by the Grant committee for allocation of grants for discussion and approval by the RHMP and ZHMP.

Executive council of the City of Prague and Prague City Council (RHMP, ZHMP)
Negotiates and approves allocation of grants according to the pertinent legal regulations.

Department of  inspections of Prague City Council (OKC MHMP)
Ensures subsequent financial checks on public financial support – grants provided from the budget of Prague City Council.

PRINCIPLES OF GRANT PROCEEDINGS

An essential part of the precise paperwork carried in the grant agenda is registration of received applications, which is formulated in the methodology for registration of grants by Prague City Council and also in definition of the standing and competence of the bodies active in grant proceedings and this relates to description of administration of grant proceedings.

Another principle is the transparency, which presupposes clearly set criteria and understandably defined conditions for acceptance of applications in individual categories, adherence to the general schedule for grant proceedings, taking and timely publication of records of negotiations about applications as well as timely publication of results about grant proceedings.

A new principle, which must be applied concerns the rules of evaluation.

Evaluation is understood to mean the process, which 
a)	Systematically examines the implementation of projects and programmes or as the case may be the activities of organisations
b)	Analyses the effectiveness of implementation processes 
c)	Proposes possible improvements and methods of processing these
The basic principles of evaluation are: 
-	Pragmatism – suitability and pertinence to goals with a view to the artistic-cultural and social-economic context (Are the proposed methods of work relevant to the goals?)
-	Effectiveness – extent of aims and intervention (To what extent are the overall aims fulfilled, purpose, expected results)
-	Impact – positive and negative, primary and secondary, long-term effect, multiplication effects, direct and indirect impacts, intended and unintended impacts

Evaluation is comparison of the plan with the actual results of the project and is difficult, above all when the aims of the project were not clearly formulated. All workers who are participating in the grant proceedings agree that it is difficult to evaluate supported projects and to appraise the effectiveness of grants allocated, as measuring the results and outputs of human activity is a problem. With regards to the quality of evaluation, it is first necessary to gain information via the so-called monitoring of facts, which raises the demands on time and human resources. Most administrators of grant support – in the case of the Department of Culture, Monument care and Tourism of Prague City Council are specialist workers for individual areas of culture - are dependent only on billing and reports received from grant recipients. However, the most important thing is their personal participation in events. There also exist other methods of monitoring – acquisition of information - that are used less due to their demands on time.
A quality project should be prepared in such a way that each step of its preparation and implementation can be monitored. In the best case situation, indicators for this monitoring are the results of quantitative and qualitative survey.

Organisational provision of the activities of the Committee of the Executive council of the City of Prague for appraisal of grants by the City of Prague in the field of culture and the arts (the Grant committee):

•	All members of the Committee of the Executive council of the City of Prague for appraisal of grants by the City of Prague in the field of culture and the arts, hereinafter referred to only as the “Grant committee” are bound to familiarise themselves with all applications handed on to them by the Department of Culture, Monument care, and Tourism of Prague city council for appraisal.
•	All members of the Grant committee sign an affidavit: 
o	In which they declare that neither they or persons close to them, are in any way connected with the applicant or implementer of the project or with the project itself and that no rights or obligations result for them from allocation of the grant: In the event that a member of the committee is connected in any manner with any of the projects under negotiation, they are obliged to notify the whole committee of this fact and to refrain from negotiations and voting concerning this project.
o	Which concerns discretion about facts contained in all negotiated grant projects including specialist appraisals.
o	In which independent experts declare that they will perform appraisal of projects on the basis of their personal experience, expertise and conscience, not subject to the interests of individuals or groups formal or informal, negotiated in advance.
•	Pairs are created from the members of the committee (usually a representative of the city + a representative of the professional public), which ensure news about selected projects for the grant committee and first proposal for support for the appraisal. Projects are selected for specific pairs according to the specialist focus of representatives of the professional public and on the basis of consensus of all members of the Grant committee. 
•	Members of the Grant committee have the right to consult experts from the field of culture, marketing and economy etc. about applications allocated for appraisal as they see fit or from the list of evaluators. Costs for such consultation are covered by the City of Prague, expert opinions are confidential and are intended only for the requirements of the Grant committee.
•	Appraisal of specific applications and recommendations by the Grant committee are handed over to both members of individual pairs and the Grant committee is also informed of the minimum level of grant by the City of Prague, subject to which the project can be implemented. It pertains to the Grant committee as a whole to make final decision about recommendation for allocation of a grant and its level.
•	In the event that in relation to negotiation of individual projects, no consensus is reached by the whole of the Grant committee, voting is carried out concerning the proposal for support.
•	The method and extent of the expert appraisal for applications for grants for several years in excess of CZK 1,000,000.00 is set by the Grant committee as a whole in that its final decision goes on for such applications to an obligatory public hearing, held by the City of Prague. Public hearings as stated previously or as the case may be further hearings – on request by the Grant committee or at the request of the applicant – will be held during the course of grant proceedings with the participation of members of the Committee of the Executive council of the City of Prague for appraisal of grants in the field of culture and the arts, representatives of the city, members of Prague city council and members of the professional and lay public. 
•	In the case of grant applications in excess of CZK 50,000.00 the Grant committee also processes a verbal appraisal of the submitted project as part of its recommendation.
•	The secretary of the Grant committee processes the resulting material for conclusion of negotiations by the committee as a basis for negotiation by the Commission for Culture, Monument care and Tourism of Prague city council and subsequently for the RHMP and ZHMP.
•	Each member of the Grant committee is bound to discretion until approval of the results of the grant proceedings and allocation of grants by the Executive council of the City of Prague or Prague city council. 

Commission for Culture, Monument care and Tourism of Prague city council
The commission negotiates and recommends proposal for the Grant committee for allocation of grants for negotiation and approval in the RHMP and ZHMP.

The Mayor’s board of advisors
This board monitors the course and appraisal of grant proceedings as well as their conformity with the Cultural policy of the City of Prague and hands on proposal to the RHMP for optimisation of the process. The board meets with the Grant committee for this purpose at least once a year.

CONCLUSION

•	Grant support is a direct financial tool for support of the arts and culture in the City of Prague; it is irreplaceable in the process of stimulating cultural development.
•	The key document for an optimally functioning grant system for the City of Prague is the Cultural policy, which defines the framework in the field of culture linked with the activities of the City of Prague and tools for support of public cultural services.
•	The grant system must be coordinated with other methods of financial support for the City of Prague – direct funding by contribution organisations, joint holding of events, financial gifts to the City of Prague and possibly scholarships, awarding of prizes etc., as well as possibly with the system of governmental rant support for the arts and culture. 
•	Development of grant support for culture shows that the public perceives culture as a public service. Culture with its huge spectrum of cultural interests can be labelled as a public holding.
•	Grant support for culture is directly related to the relationship between policy and culture, between market relations, support for cultural heritage and contemporary art, including other cultural and social areas.
•	The task of grant support for the city in various areas of cultural life is to create a sufficiently wide and open cultural space, in which everyone can chose from an offer, which includes both mainstream cultural activities as well as alternative and minority projects. 
•	The amount of public funding is an always will be restricted and for this reason must unconditionally be economically redistributed.
•	Development of the grant system for support of culture and the arts is not possible without mapping individual artistic and cultural displays, essential analyses of investments made and without regular revision of effectiveness and redefinition of support tools. Through mapping of the activities of cultural institutions and art groups, we can uncover the strong and weak sides, risks and opportunities of the grant system as well as their mutual interconnection, which is a condition for optimisation of the grant system.