Every Grant Agreement (GA) includes a budget with estimated costs broken down by beneficiary (organisations) and cost category. The actual costs will regularly deviate from the estimated costs in the course of the project. In these cases a budget transfer will be necessary. The maximum budget, however, remains unchanged.
As long as the action is carried out as planned (i.e. action tasks and allocation between the beneficiaries do not change), budget transfers can be made without the consent of the EU Commission/Funding Agency. In this case only the consortium's internal regulations specified in the Consortium Agreement must be observed, which specifies the body responsible for deciding on budget transfers and the relevant majority requirements.
An amendment of the GA is necessary if there is a “significant change” in the action's technical work (= "action tasks" in Annex 1). If additional subcontracts or in-kind contributions must be concluded during the action and the beneficiary does not want to run the risk that the costs will not be approved afterwards, an amendment is recommended.
| Budget transfer | Amendment necessary? |
|---|---|
| from one partner to another partner | NO |
| from one budget category to another budget category (same partner) | NO |
| from one form of cost to another (e.g. actual costs/unit costs) | YES (exceptions: personnel costs, internal invoicing) |
| "significant change" in work (e.g. task is shifted to another partner) | YES |
|
non-budgeted subcontracts and in-kind contributions |
YES – recommended (subsequent approval at beneficiary's risk) |
More information can be found ...
- in the Annotated Grant Agreement (AGA), Article 4.
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