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FAQ 2 - How do the financial thresholds based on the open amount affect a given partner?

The financial threshold defines ECHO’s accepted level of risk exposure to the partner. The accepted level of risk exposure is expressed as a percentage (20%) of the organisation's operating income.

This amount decreases any time ECHO pays a pre-financing and increases again upon submission of a request of further pre-financing or of the final report. Example:

Organisation threshold = € 2.000.000
Action budget: € 1.000.000

First pre-financing received: 50% = € 500.000
Available open amount: € 1.500.000

When the partner declares that 70% of the first pre-financing has been consumed (= € 350.000), it may submit a request for a second pre-financing.

Second pre-financing received: 30% = € 300.000
Available open amount: € 1.500.000 + € 350.000 – € 300.000 = € 1.550.000

As soon as the partner submits the final payment request (together with the final report), and assuming that the total incurred costs correspond to the initial budget, the open amount will return to € 2.000.000.

FAQ 3 - At the Final Report stage, is the reduction of the open amount done on the date of the submission of the Final Report or on date of the establishment of the final amount?

The open amount will be reduced on the date of the submission of the Final Report.

FAQ 4 - Following submission of the interim report, are the already incurred costs deducted from the open amount?

INTERIM REPORT

The submission of interim report will not affect the threshold of the open amount.

OPEN AMOUNT