The EU grant is paid to the coordinator in several instalments: pre-financing, interim payment(s) and final payment. The coordinator is responsible for administering the grant and distributing it among the beneficiaries.
The coordinator receives the following payments from the European Commission/Funding Agency according to point 4.2 in the Data Sheet of the Grant Agreement (GA):
| Payment | Date of payment |
|---|---|
| Pre-Financing | Within 30 days of the entry into force of the GA or 10 days prior to the starting date of the action (whichever is the latest) |
| Interim Payment(s) | Within 90 days of receipt of the interim report by the EU Commission |
| Final Payment | Within 90 days of receipt of the final report by the EU Commission |
The pre-financing payment is designed to ensure a cash flow for implementing the project. Its amount usually corresponds to the average grant amount for a reporting period. It remains the property of the EU Commission until the final payment. Since five to eight percent (the exact rate is stated in the Data Sheet of the GA) of the maximum EU grant is deducted from the pre-financing payment and directly paid into the Mutual Insurance Mechanism, the amount transferred to the coordinator will always be lower than the amount stated in point 4.2 in the Data Sheet of the GA.
See also FAQ "Vorfinanzierung" in our FAQ document.
The interim payment(s) and the final payment reimburse the costs declared in the relevant reporting period until the threshold of 90 percent of the maximum EU grant is reached (the exact rate is stated in the Data Sheet of the GA). 10 percent of the EU grant (2-5 percent retention and 5-8 percent from the Mutual Insurance Mechanism) may only be disbursed at the end of the action.
The grant is transferred to the account notified by the coordinator. The setting up of a separate project account is not obligatory according to the GA, but is required in many Consortium Agreements.
If the EU Commission/Funding Agency does not meet the specified payment deadlines without officially suspending the payment ("payment (deadline) suspension", Articles 29 and 30 of the GA), the consortium is entitled to default interest.
According to the Grant Agreement, coordinators are obliged to forward the payments received from the European Commission to the other beneficiaries without delay. Beneficiaries can agree on a deviating rule in the so-called Consortium Agreement (e.g. in the form of a payment plan). Consequently, additionally to the Grant Agreement, the Consortium Agreement regulates when which payments are made to whom in the consortium.
Recovery by the EU Commission at the final payment
An eventual recovery of undue amounts at the final payment follows this procedure:
1. The EU Commission sends a pre-information letter to the coordinator.
2. The coordinator has 30 days from receiving the pre-information letter to submit a report on the distribution of payments to the beneficiaries to the EU Commission. Furthermore he/she may submit observations to this pre-information letter to the EU Commission.
3. Afterwards there are two possibilities, depending on what the coordinator did and submitted:
3.1. The coordinator did not pay the recovery, but submitted a report on the distribution of payments to the beneficiaries - The EU Commission identifies the beneficiary/ies that received too much, confirms the amount(s) to be recovered by sending a confirmation letter and (a) debit note(s) with terms and date for payment.
3.2.The coordinator did not pay the recovery and did not submit a report on the distribution of payments to the beneficiaries - The EU Commission will recover the amounts due from the coordinator by sending a confirmation letter and debit note.
4. If no payment of the recovery is made within the deadline, the EU Commission will enforce recovery in accordance with Article 22.4 of the GA.
The financial responsibility of the beneficiaries in case of recovery is limited on their own debt, except for the amount retained for the Mutual Insurance Mechanism.
More information can be found ...
- in the Annotated Grant Agreement (AGA), Articles 21 and 22
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