Timing and types of payments
According to Point 4.2 of the Data Sheet of the Grant Agreement (GA), payments are generally made as follows:
| Payment |
Timing |
Purpose |
| Pre-Financing |
within 30 days of the entry into force of the GA or 10 days prior to the starting date of the action (whichever is the latest) |
to ensure liquidity at the beginning of the project |
| Interim Payment(s) |
within 90 days of receipt of the interim report by the European Commission |
reimbursement of eligible costs incurred during the reporting periods |
| Final Payment |
within 90 days of receipt of the final report by the European Commission |
final settlement of the total EU contribution |
Pre-financing typically corresponds to the funding needs of one reporting period. However: A portion of the maximum EU contribution (usually 5% to 8%, see Data Sheet) is retained and transferred to the Mutual Insurance Mechanism. Therefore, the amount of pre-financing actually paid to the coordinator is lower than the amount indicated in the GA. If the mechanism does not intervene during the project, the retained amount is released with the final payment.
Interim and final payments are typically limited to up to 90% of the maximum EU contribution (exact percentage is stated in the Data Sheet of the GA).
Payments are made to the bank account indicated by the coordinator. A dedicated project account is not required by the GA but is often stipulated in the Consortium Agreement.
If the European Commission/funding body exceeds the applicable payment deadlines without formally suspending them (e.g. due to missing information), the consortium may be entitled to interest on late payment.
Under the GA, the coordinator must transfer payments to the other beneficiaries without unjustified delay. However, the consortium may define different arrangements in the Consortium Agreement (CA) (e.g. payment schedules or performance-based payments). In practice, the CA plays a key role in determining when and how funds are distributed within the consortium.
Recovery by the EU Commission at the final payment
If an overpayment is identified at the end of the project, the European Commission may initiate a recovery procedure:
- Pre-information letter sent to the coordinator
- 30-day deadline for:
- submission of a report on the distribution of funds within the consortium
- optional observations
- Next steps:
- If a distribution report is provided: recovery is addressed to the concerned beneficiary(ies)
- If no report is provided: recovery is addressed to the coordinator
- Enforcement of recovery in accordance with Article 22.4 of the GA if repayment is not made within the deadline
Further information