Difference between revisions of "EGI-Engage:Advance Payments"

From EGIWiki
Jump to: navigation, search
(Distribution of the pre-financing)
(Distribution of the pre-financing)
Line 7: Line 7:
= Distribution of the pre-financing  =
= Distribution of the pre-financing  =
'''download the Pre-Financing-overview payments''' [https://documents.egi.eu/document/2902 Here]<br>
'''Download the Pre-Financing-overview payments''' [https://documents.egi.eu/document/2902 Here]<br>
* ''Pre-financing payments overview'': includes the 2 payments made during Y1<br>
* ''Pre-financing payments overview'': includes the 2 payments made during Y1<br>
* ''PY1 Interim payment'' includes the calculations of payment released after PY1 acceptance
* ''PY1 Interim payment'' includes the calculations of payment released after PY1 acceptance

Revision as of 13:14, 16 September 2016

EGI-Engage project: Main page WP1(NA1) WP3(JRA1) WP5(SA1) PMB Deliverables and Milestones Quality Plan Risk Plan Data Plan
Roles and
WP2(NA2) WP4(JRA2) WP6(SA2) AMB Software and services Metrics Project Office Procedures

EGI-Engage Project Office: Contact details Contracts, Minutes Reimbursing procedures Project reporting Advance Payments Financial reports Project Administration Archive

The project budget amounts to 8,000,000 euros. The pre-financing amounts to 50% of the total budget of which 5% is transferred to the Participant Guarantee Fund (PGF). The maximum amount of the pre-financing and interim payments cannot exceed 85% of the total budget (90% minus 5% transferred to the PGF). The payment schedule, which contains the transfer of pre-financing and interim payment to Parties will be handled according to the following planning:

CB is the Collaboration Board; PMB is the Project Management Board; EC is the European Commission

Distribution of the pre-financing

Download the Pre-Financing-overview payments Here

  • Pre-financing payments overview: includes the 2 payments made during Y1
  • PY1 Interim payment includes the calculations of payment released after PY1 acceptance

i- Pre-Financing: 3,600,000 euros

It is equivalent to 13.5 budget months. It will be repaid to Parties as follows:

  • 75% at the signature of the Consortium Agreement or upon reception depending which one is last, 2,700,000 euros (~10 budget months equivalent)
  • 25% at M10, 900,000 euros (~3.5 budget months equivalent). A new schedule can be proposed if the signature of the Consortium Agreement is overly delayed.

ii- Interim costs:
The interim payments will reimburse the accepted funded costs incurred during the project reporting period;

  • P1: March 1st, 2015 to February 29th, 2016 (M1-M12)
  • P2: March 1st, 2016 to August 31st, 2017 (M13-M30)

The payments calculation cannot exceed the funded costs accepted in the reporting period. The proposed payments will seek approval of the PMB; clarifications may be requested to justify excessive over or under spending of the grant during the reporting period. The total amount of the pre-financing plus interim payments cannot exceed the share of the beneficiary caped to 85% of its grant.

Distribution limited for under spending partners

Risks associated with under-spending partner: In the situation of a beneficiary under-spending a complete process is put in place to identify the consequences of the partner under-spending altogether with the corrective actions to ensure i) that the implementation of the action is not at risk (responsibility of ALL beneficiaries – MGA 41.1) and ii) repayment of undue funding.

Thus the PMB has decided to implement the following rules to release the pre-financing to under-spending partners in line with use of efforts and activity performed (see document voted in Dec 2015 here)

The ceiling for total pre-financing and intermediate payments is set by the Commission to 85% of the budget. EGI will release the payments to the partners according to the following process:

  1. Pre-financing settlement 1: 34% of the budget for all partner done

  2. Pre-financing settlement 2: 11% of the budget IF reporting M1-M9 is > 80% of efforts planned inY1.
    This payment is forecast in M11-Jan16

  3. Advance 3 is linked to the Costs intermediate Y1. These costs if accepted by the Commission are payable in full up to 85% of the budget.
    Y1 costs are equivalent to ~40% of the budget.
    This payment is forecast in M15-May16 under certain conditions linked to the use of efforts and deviation to the plan:
    • a) IF no deviation to plan = Y1 costs equivalent to ~40% of the budget; Repayment actual costs Y1 up to 85%
    • b) IF deviation <= 20% = Y1 costs equivalent to 32-39% of the budget; Repayment actual costs Y1 up to 84%
    • c) IF deviation >20%<= 50% = Y1 costs equivalent to 20-31% of the budget; Maximum additional pre-financing 20% of the budget. Thus altogether the pre-financing and repayment of the actual costs Y1 is limited to 51% of the Budget. And the project office will monitor the efforts used every 3 months
    • d) IF deviation >50% No further pre-financing until the situation is clarified.
      The repayment is limited to actual costs Y1 (Actual cost Y1 (-) pre-financing already paid out)

Payment of the balance

10% of total budget and the 5% of the pre-financing transferred to the PGF will be released to the consortium (1,200,000 euros). It will be repaid by the Commission upon approval of the final report. It is calculated by deducting the amount of the pre-financing and interim payment from the total grant claimed and accepted by the Parties.

The Coordinator is entitled to withhold any payments due to a Party identified by the CB to be in breach of its obligations under this Consortium Agreement or the Grant Agreement or to a Beneficiary, which has not yet signed this Consortium Agreement.

The Coordinator is entitled to recover any advanced payments already paid to a Defaulting Party. The Coordinator is equally entitled to withhold payments to a Party only when this is suggested by or agreed with the Funding Authority.