Payment arrangements

The first instalment of pre-financing will be paid to the beneficiary organisation within 45 days from receipt by the EC of the two contract originals countersigned by the 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).

Further instalment(s) will be done upon presentation by the beneficiary of an interim narrative and financial report describing the first year of project activities (12 months from reception of the first payment). The beneficiary should send the EC the report accompanied by a request for further payment.

Payment procedures are set out in Article 4 of the Special Conditions and correspond to one of the three options below:

Actions with an implementation period not exceeding 12 months or where the financing provided by European Commission does not exceed EUR 100 000.
The European Commission (EC) 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 (Annex V of your Grant Contract);

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

• an initial pre-financing instalment of 80% of that part of the estimated budget for the first 12 months financed by the EC, 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 (Annex V of your Grant Contract),
     
  2. an expenditure verification report, if required (see below),
     
  3. a financial guarantee if required;

• the balance within 45 days of the EC approving the final report, accompanied by:
  
  1. a request for payment of the balance (Annex V of your 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 (Annex V of your Grant Contract) ,
   
2. an expenditure verification report if required (see below).
   

A report on the verification of the Action’s expenditure, produced by an approved auditor who meets the specific conditions of the Terms of Reference for the expenditure verification, shall be attached to:

• any request for pre-financing payments per financial year in case of grants of EUR 750 000 or more;
• any final report in the case of a grant of more than EUR 100 000;
• any request for payment of over EUR 100 000 for the financial year, in the case of an operating grant

The auditor examines whether the costs declared by the partner are real, accurately recorded and eligible in accordance with the Contract and the revenue of the Action, and issues an expenditure verification report conforming to the model in Annex VII.



Sources and useful links:

• General Conditions, Article 15
• Standard Request for Payment