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FAQ 7 - Can a partner sell a vehicle fully purchased under an ECHO Action if this vehicle does not have anymore an economic value based on depreciation rules of the partner? If yes, is ECHO’s prior approval required in such cases?

END OF ACTION | DEPRECIATION

If the vehicle does not have an economic value anymore, the Partner is free to decide how to use it. Therefore it can also decide to sell it, and ECHO’s prior approval is not required.

FAQ 14 - What happens if the equipment still has an economic value after several transfers but there is no eligible recipient for donation, nor any action to which to transfer it again?

TRANSFER OF REMAINING SUPPLIES | END OF ACTION

In the MGA the difference between transfer and donation do not exist anymore. The obligation to transfer remains valid until the equipment has been fully depreciated. Therefore, if at the end of the action to which the transfer was made the equipment is not fully depreciated and transfer is not possible anymore, ECHO could either recover the remaining value according to the applicable depreciation rules, or, if justified, grant the partner to keep the equipment.

FAQ 15 - Can remaining supplies be transferred to an ECHO-funded Action managed by another Certified Partner, by a UN Agency or by an International Organisation?

TRANSFER OF REMAINING SUPPLIES | END OF ACTION

Transfer to another ECHO-funded Action is only possible if the Action is implemented by the Partner that intends to transfer the remaining supplies. This rule allows ECHO to have a direct control over the end use of the equipment and safeguard sound financial management of humanitarian aid funds.
Transfer to an ECHO-funded action implemented by another partner is possible.

FAQ 17 - How many times can a Partner transfer remaining goods?

TRANSFER OF REMAINING SUPPLIES | END OF ACTION

Goods may be transferred only once. This means that goods must be fully consumed by the next action they are transferred to. If transfer to another ongoing action is not possible, the beneficiaries can — after the end of the action — transfer the equipment or goods to the final recipients, local non-profit organisations, international non-profit organisations, international organisations, or local authorities, if agreed by the granting authority. Under the MGA the distinction between donation and transfer does not exist anymore.

FAQ 34 - What is the allowance for low value equipment in a Consortium?

IMPLEMENTING PARTNERS | CONSORTIUM

The threshold for low value allowance equipment is Euro 15 000 regardless of the Action's budget or the number of the Consortium members (multi-beneficiary grant)

FAQ 99 - What are the provisions on remaining equipment and goods in the MGA?

ELIGIBILITY OF COSTS | ELIGIBILITY OF COSTS

In the MGIn the MGA, reimbursement of full price of equipment and goods is the rule, with the obligation to transfer or donate them after the end of the action, unless exempted by DG ECHO. If transfer to another ongoing action is not possible and if agreed by DG ECHO, the Partner can transfer or donate the equipment or goods to the final recipients, local non-profit organisations, international non-profit organisations, international organisations, or local authorities. If not, only the depreciation costs are eligible (regardless of the fact the Commission is the single largest donor of the action).

FAQ 100 - Are the amounts and thresholds for low value equipment and remaining goods kept in the MGA?

ELIGIBILITY OF COSTS

Low value equipment (equipment with a value below EUR 1000, instead of the previous EUR 750 per item) is exempted from the obligation of transfer. If the cost of the item is between EUR 1001 and EUR 2500 per item, the exception applies if the total costs of the items does not exceed EUR 15 000.

The remaining goods at the end of the Action should, ideally, be distributed by requesting a no cost extension of the Action. If this is not possible and the results of the Action have been achieved, in case of remaining goods not exceeding 20% of goods purchased during the action, the Partner does not have to report to DG ECHO on the final use but the goods have to be used for the benefit of humanitarian aid actions. The final use of these goods will be verified at audit stage.