Index

1. Introduction
   1.1. Objectives of the Manual
   1.2. Scope of Application
   1.3. Purpose of Administrative Management
2. Project Structure and Responsibilities
   2.1. General Responsibilities
   2.2. Project Supervision
   2.3. Key Tasks and Roles in Project Management
3. Project Planning and Budgeting
   3.1. Elaboration of the Detailed Budget
   3.2. Approval of the Budget
   3.3. Budget Control and Modification
4. Cash Management and Treasury
   4.1. Opening of Bank Accounts
   4.2. Management of Cash Advances
   4.3. Transfers and Payments
5. Execution of Expenditure and Financial Control
   5.1. Expense authorization
   5.2. Expense justification
   5.3. Payment Control and Follow-up
6. Procedure for Contracting Services and Suppliers
   6.1. Purchasing Planning
   6.2. Contracting of Minor Services
   6.3. Contracting of medium and major services
   6.4. Review and Signing of Contracts
7. Expenditure Verification
   7.1. Internal Verification Process
   7.2. Internal Audit
   7.3. External Audit Report
   7.4. Expenditure Verification Report
8. Project Reporting and Closure
   8.1. Periodic Reports
   8.2. Final Project Report
   8.3. Project Evaluation
   8.4. Administrative Closure
9. Audit and Internal Control
   9.1. Internal and External Auditing
   9.2. Financial Control Procedures
   9.3. Monitoring of Financial Management

1. Introduction

1.1. Objectives of the Manual
This manual aims to provide clear and detailed guidelines for the administrative management of the international cooperation projects of the Fundación Primavera Sound. With this document, we seek to guarantee the transparency, efficiency and correct execution of the projects, promoting a management that complies with local and international regulations and with the requirements of the financial backers.

1.2. Scope of Application
This manual is applicable to all international cooperation projects managed by the Fundación. It sets out the administrative and financial procedures to be followed to ensure the proper use of funds and the achievement of project objectives.

1.3. Purpose of Administrative Management
The administrative management of projects seeks to ensure that:

• Resources are used efficiently and according to plan.
• Internal and external regulations are complied with.
• Transparency and accountability are ensured at all stages of the project.

2. Project Structure and Responsibilities

2.1. General Responsibilities
At the Fundación Primavera Sound, the responsibilities for the management of the projects fall on the responsible team, which is coordinated and executed according to the organisational structure defined for each project. In general, the key responsibilities include:

• Project planning: Definition of objectives, activities, timeline and budget.
• Operational monitoring: Ensure the correct implementation of activities as planned.
• Financial control: Monitoring the flow of funds and expenditure and ensuring proper financial justification to financial backers.
• Evaluation: Measuring the impact and results of the project and producing detailed reports.

2.2. Project Monitoring
Project monitoring includes strategic planning, monitoring of activities, continuous evaluation and decision making to correct any deviations from the initial objectives. Monitoring should be proactive, and managers should ensure proper implementation of the project through regular monitoring meetings.

2.3. Key Tasks and Functions in Project Management

• Work plan development and adjustment: Define, implement and adjust the work plan according to the needs of the project.
• Human resource management: Ensure that the necessary staff is available and trained to carry out the project activities.
• Monitoring and review of indicators: Evaluate the results of the project through previously defined indicators.

3. Project Planning and Budgeting

3.1. Preparation of the Detailed Budget
The budget should be prepared prior to the start of the project and should be sufficiently detailed to cover all aspects of the project, including:

• Direct costs: Salaries, materials, travel, contracting of external services.
• Indirect costs: Administrative overheads, communication, etc.
• Contingency: Funds set aside for contingencies, especially those arising during project implementation.

3.2. Approval of the Budget
Once the budget has been prepared, it must be reviewed and approved by the project director or manager. At this stage, the budget is checked to ensure that it is aligned with the objectives and expectations of the financial backer. It is crucial that the budget is approved before any expenditure is initiated.

3.3. Budget Monitoring and Modification
During the implementation of the project, it is possible that changes or unforeseen events may arise that require adjustments to the budget. In these cases, the budget must be formally modified:

• Identification of the need for modification: Changes in activities or unforeseen costs.
• Justification of the modification: Explain the reason for the changes and their impact on the project.
• Approval of modification: Ensure that changes are approved by the person/s responsible prior to implementation.

Cash Management and Treasury

4.1. Opening of Bank Accounts
For each project, a specific bank account must be opened in which the funds received are deposited and used exclusively for project expenses. It is essential that this account is directly linked to the project and that they are not mixed with funds from other projects.

4.2. Management of cash advances
Cash advances are necessary when funds have not been fully released or when an immediate amount is required to cover initial expenses. They need to be managed appropriately:

• Request for an advance: Detail the reasons and justify the requested advance.
• Approval of the advance: Approval should be formal and should be based on the availability of funds and the need for the advance.

4.3. Transfers and Payments
All payments and transfers must be made in a transparent manner, with correct supporting documentation (invoices, receipts, contracts). Payments must be made exclusively for the purposes of the project and must comply with the requirements set out in the budget.

5. Execution of Expenditure and Financial Control

5.1. Authorisation of Expenditure
Every expenditure must be duly authorised and recorded. The authorisation process includes verification of the need for the expenditure and its alignment with the approved budget.

5.2. Justification of Expenditure
Each expenditure must be supported by supporting documents (invoices, contracts, receipts) that validate the transaction. These documents must be filed in an organised and accessible manner for audits and reviews.

5.3. Payment Control and Monitoring
Payment control involves monitoring each transaction to ensure that it is within budget and that there are no deviations. In addition, it is essential to keep a detailed record of all financial transactions made.

6. Procedure for Contracting Services and Suppliers

6.1. Purchasing Planning
The manager must plan the procurement of goods and services in detail, ensuring that all items required for the implementation of the project are available and properly budgeted for.

6.2. Contracting of Minor Services
Minor services (up to 5,000 euros) can be contracted directly, after obtaining at least three comparative offers before deciding.

6.3. Contracting of Medium and Major Services
For major services (over 5,000 euros), the contracting process should follow a supplier selection procedure with as much transparency as possible, requesting offers, evaluating them and choosing the most suitable one.

6.4. Review and Signing of Contracts
All contracts must be reviewed and approved by the director to ensure that they comply with project regulations and requirements and signed by the parties involved.

7. Expenditure Verification

7.1. Internal Verification Process
Before submitting financial reports to financial backers, an internal verification should be carried out to confirm that expenditure is within budget and that all paperwork is in order.

7.2. Internal Audit
The project will be subject to regular internal audits to verify compliance with established procedures and the correct execution of the budget.

7.3. External Audit Report
When required by the financial backers or deemed necessary, an external audit will be carried out to provide independent verification of project expenditure and operations.

7.4. Expenditure Verification Report
This report should include a detailed summary of the expenditure incurred, comparing what was budgeted with what was spent, and providing justification for any deviations.

8. Reporting and Project Closure

8.1. Periodic Reports
Periodic monitoring reports shall be prepared for the financial backer, detailing the progress of the project, expenditure, and any adjustments made.

8.2. Final Project Report
At the end of the project, a final report should be produced detailing the results achieved, resources used, and lessons learned.

8.3. Project evaluation
The project must be evaluated in terms of its impact, effectiveness and efficiency, to measure the achievement of the objectives and the benefits generated.

8.4. Administrative Closure
Upon completion of the project, administrative closure will take place, including the settlement of accounts, archiving of documents and preparation for the final audit.

9. Audit and Internal Control

9.1. Internal and External Audits
Internal and external audits will be carried out to ensure that the project resources have been used in accordance with the regulations and that the objectives have been met.

9.2. Financial Control Procedures
Financial control procedures shall be implemented to ensure that there is no mismanagement of resources and to detect any irregularities.

9.3. Monitoring of Financial Management
Constant monitoring of resources and expenditure will be essential to ensure the proper implementation of the project and transparency in the management of funds.

Document approved with the Board of Trustees meeting of __/__/2025