Problematic scenarios

Overspending?

The final amount shall not exceed the maximum Community contribution established in the Agreement, even if the total of eligible costs exceeds the estimated total budget of the Action referred to in the Agreement.

Where the Agreement sets out a maximum percentage of estimated total eligible cost to be financed by the European Community, and the eligible costs at the end of the Action are less than the estimated total cost specified in the Agreement, the contribution of the European Community may be limited to the amount produced by multiplying the actual expenditure by the percentage laid down in the Agreement.

Underspending?

The Commission shall send a recovery order to the Humanitarian Organisation for the amounts paid by the Commission which exceed the final amount. The Humanitarian Organisation shall reimburse the amounts within 45 calendar days following receipt of the debit note.

The Commission may claim payment of interests if the Humanitarian Organisation does not pay within the above time limit. These late payment interests shall be payable for the period starting on the day following the expiry of the time limit for payment until the day of payment. Any partial payment shall be used to cover the interest.

The Commission may offset amounts to be repaid against amounts of any kind payable to the Humanitarian Organisation, after informing the Humanitarian Organisation accordingly. The Humanitarian Organisation’s prior consent is not required. Both Parties may agree on payment in instalments.

Not underspending, but results not achieved?

Where the Action is not carried out at all, or is not carried out properly, in full or on time, the Commission may, by duly reasoned decision, reduce the grant on the basis of the actual implementation of the Action and the results achieved and the eligibility of the indirect costs claimed by the Humanitarian Organisation. The Humanitarian Organisation may contest the Commission decision.



References and useful links: