PROCEDURE
When the termination of the grant is requested by the beneficiaries, the coordinator must submit a request for amendment indicating:
- the reasons;
- the date the consortium ends work on the action;
- the date the termination takes effect.
The termination will take effect on the termination date specified in the amendment.
If no reasons are given or if DG ECHO considers the reasons do not justify termination, it may consider the grant terminated improperly.
EFFECTS
In case of the termination requested by beneficiaries the coordinator must submit a periodic report within 60 days of the termination date, covering the last reporting period before termination. DG ECHO will calculate the final grant amount and payment based on this report, considering costs and contributions for activities implemented before termination. Costs relating to contracts due for execution only after termination are not eligible.
If the report is not received within 60 days, only approved costs and contributions from previously approved periodic reports will be considered. Improper termination may result in a grant reduction.
Even after termination, beneficiaries must still comply with certain obligations such as confidentiality and security, dissemination and visibility, checks, reviews and audits etc.
According to the framework DG ECHO may in certain situations terminate the grant agreement. The whole list of conditions for termination is provided in the Article 32. 3.1 of Model grant agreement. Here are some examples of situations when DG ECHO can initiate the termination of grant agreement:
- If one or more beneficiaries do not accede to the Agreement
- If there are changes in the beneficiary’s situation (such as legal, financial, technical, or ownership changes), which could significantly affect the implementation of the project or raise doubts about whether the grant should have been awarded.
- If following termination of one or more beneficiaries, the necessary changes to the Agreement (and their impact on the action) would call into question the decision awarding the grant or breach the principle of equal treatment of applicants.
- If it becomes impossible to carry out the project, or if changes needed to continue would make the grant decision questionable or unfair to other applicants.
- If a beneficiary (or someone responsible for their debts) is involved in bankruptcy or other legal procedures for example liquidation.
- If a beneficiary (or person with unlimited liability for its debts) is in breach of social security or tax obligations.
- If a beneficiary (or person having powers of representation, decision-making or control, or person essential for the award/implementation of the grant) has been found guilty of grave professional misconduct.
- If a beneficiary (or person having powers of representation, decision-making or control, or person essential for the award/implementation of the grant) has committed fraud, corruption, or is involved in a criminal organisation, money laundering, terrorism-related crimes, child labour or human trafficking.
- If a beneficiary (or person having powers of representation, decision-making or control, or person essential for the award/implementation of the grant) was created under a different jurisdiction with the intent to circumvent fiscal, social or other legal obligations in the country of origin (or created another entity with this purpose).
- If a beneficiary (or person having powers of representation, decision-making or control, or person essential for the award/implementation of the grant) has committed: substantial errors, irregularities or fraud or serious breach of obligations under this Agreement or during its award.
- If a beneficiary (or person having powers of representation, decision-making or control, or person essential for the award/implementation of the grant) has committed — in other EU grants awarded to it under similar conditions — systemic or recurrent errors, irregularities, fraud or serious breach of obligations that have a material impact on this grant.
- If the humanitarian context has changed in a way which no longer allows the implementation of the action in accordance with the description or the call conditions or the specific rules and principles set out in the legal framework.
PROCEDURE
Before terminating the grant, DG ECHO will send a pre-information letter to the coordinator or beneficiary concerned to inform about intended termination and request the feedback within 30 days.
If no observation is received within the timeframe or DG ECHO decides to pursue the procedure despite the observations DG ECHO will confirm the termination and its effective date thought a confirmation letter. Otherwise, it will formally notify that the procedure is discontinued.
For beneficiary terminations, DG ECHO will also inform the coordinator at the end of the procedure.
EFFECTS
In case of the Grant agreement termination by DG ECHO the coordinator must submit a final report within 60 days of termination, covering the last reporting period before termination. DG ECHO will calculate the final grant amount and payment based on this report, considering costs and contributions for activities completed before termination. Costs relating to contracts due for execution only after termination are not eligible.
If the report is not received on time, only approved costs and contributions from previous periodic reports will be considered.
Termination does not affect the right of DG ECHO to reduce the grant or impose administrative sanctions.
Even after termination, beneficiaries must still comply with certain obligations for example, obligations on confidentiality, IPR, reporting, audits, grant reductions, etc.
