Financing is payed out in 3 ways:
-
Pre-financing
-
Interim payments
-
Payment of the balance
Pre-financing covers up to 40 percent of the grant amount minus 5 percent that the comission retains 5 percent in a "Guarantee fund". Pre-financing is paid out within 30 days of signing the grant agreement.
Interim payments are payed out after the beneficiary presents interim reports. Interim payment are payed out within 90 days of the presentation of the interim reports. The sum total financing of pre-financing and interim payments shall not exceed 90 percent of the total grant amount.
The payment of the balance occurs after the project is completed and the final project report is presented. The financing is payed out within 90 days of the presentation of the final report.
Fianacing from the European Commission covers expenses that are actually incurred, documented, reasonable in size and related to the project:
-
Direct labour costs
-
Dirent subcontracting costs
-
Other direct costs
-
Indirect costs
Direct costs are finances at single rates specified in programme priority desciptions. Indirect costs of the beneficiary are covered at a proportional rate to the beneficiaries direct costs minus subcontracting costs. The European Commission finances indirect costs with a sum equal to 25 percent of direct costs.
In case of a breach of the grant agreement, as a result of inadequate spending, inadequate activity performance or noncompliance with transparency and acountability requirements, the grant amount may be reduced or a part of the grant may be recovered frm the beneficiary.
