The financial provisions of an EU-project such as the maximum EU-contribution are laid down in the Grant Agreement which is concluded between the European Commission and the project consortium. However, the consortium is responsible for the financial management of the project, especially for the distribution of the funding, and should address this in the Consortium Agreement.
The EU transfers the funding to the project coordinator, and the coordinator then transfers the respective sums to the partners. Details on the distribution should be decided on and laid down in the Consortium Agreement before the start of the project.
The Commission transfers the pre-financing, one or several interim payments and the final payment to the coordinator. The Commission is obliged to make those payments within 90 days after the report in question has been accepted (FR art. 92).
The pre-financing has the objective to assure financial liquidity of the project. It is paid to the coordinator within 30 days after the Grant Agreement has entered into force or, if this is laid down in the Grant Agreement, 30 days after the start date of the project.
The amount of the pre-financing depends on the project and is defined in art. 21 of the Grant Agreement. If expensive investments are required in the beginning of the project, a higher pre-financing might be set in the Grant Agreement.
5% of the overall estimated EU-contribution of the project will be transfered to a Guarantee Fund when the pre-financing is paid. The Fund replaces the joint liability of the consortium in case of payment defaults of a partner and covers the eventual financial gap.
Interim and final payments
The amounts of the interim payments are calculated based on eligible costs declared for the respective reporting period and are paid to the coordinator within 90 days after the submission of the periodic report. Participants can receive no more than 90% of the overall EU-contribution during the project duration. The remaining 10% are transferred via the final payment. Together with the final payment, the 5% invested in the Guarantee Fund will be reimbursed to the consortium. The final payment is due within 90 days after submission of the final report.