Payment arrangements

The first instalment of pre-financing is paid to the beneficiary organisation within 45 days from receipt by the EC of the two Grant Contract originals countersigned by the Grant Beneficiary organisation, accompanied by the financial guarantee if required (see the three options below).

The first pre-financing payment covers 80% of the total grant or of the first annual budget (depending of the size of the grant and the duration of the project).

In case of a multiple-year project, further pre-financing instalment(s) will be done upon presentation by the Grant Beneficiary of an interim narrative and financial report describing the end-of-year project activities (12 months from reception of the first payment, and 12-months subsequent periods). The Grant Beneficiary should send to the Contracting Authority the report accompanied by a request for further payment using Annex V to the Grant Contract.

Payment procedures are set out in Article 4 of the Special Conditions and should correspond to one of the three options foreseen in the General Conditions (art.15) and explained below:

Actions with an implementation period not exceeding 12 months or where the financing provided by the EC does not exceed 100,000 EURO.
The Contracting Authority will pay the grant to the partner in the following manner:

• pre-financing of 80% of the sum referred to in Article 3.2 of the Special Conditions following the provisions in Article 4.3 of the Special Conditions;
• the balance within 45 days of the EC approving the final report, accompanied by a request for payment of the balance, using Annex V of the Grant Contract;

Actions with an implementation period of more than 12 months and where the financing provided by the European Commission is more than 100,000 EURO.
The Contracting Authority shall pay the grant to the partner in the following manner:

• an initial pre-financing instalment of 80% of the estimated budget for the first 12 months of project activity, as specified in Article 4 of the Special Conditions, following the provisions in Article 4.3 of the Special Conditions;
• further pre-financing instalments of the amount specified in Article 4 of the Special Conditions and designed to normally cover the partner’s financing needs for each 12-month period of implementation of the Action, within 45 days of the EC approving an interim report, accompanied by:

1. a request for payment using Annex V of the Grant Contract;
   
2. an expenditure verification report, where applicable;
   
3. a financial guarantee, where applicable.

• the balance within 45 days of the EC approving the final report, accompanied by:

1. a request for payment using Annex V of the Grant Contract;
   
2. an expenditure verification report (see below).

Further pre-financing may only be given if the part of the expenditure actually incurred which is financed by the EC (by applying the percentage set out in Article 3.2 of the Special Conditions) stands at 70% at least of the previous payment (and at 100% of any previous payments) as supported by the corresponding interim report and, where applicable, by an expenditure verification report.

Where the consumption of the previous pre-financing is less than 70%, the amount of the new pre-financing payment shall be reduced by the unused amounts of the previous pre-financing payment.

The total sum of pre-financing under the Contract may not exceed 90% of the amount referred to in Article 3.2 of the Special Conditions.

All Actions.
The grant shall be paid to the partner by the European Commission in one payment within 45 days of the EC approving the final report, accompanied by:

1. a request for payment of the balance using Annex V of the Grant Contract;
   
2. an expenditure verification report if required (see below).
   

Sources and useful links:

• General Conditions, Article 15
• Request for payment, Annex V of the Grant Contract