3.4 How to manage the payments for sub – grantees?

The terms of payments are a specific article in a good sub-granting agreement.

The main logic behind any payment arrangements is that the sub-grantee has first to fulfill all obligations and pre-conditions before getting the final payment.

The best payment arrangements are the ones in installments related to the step by step delivery of the results that make the object of the sub-granting agreement.

Sometimes, however, this is not possible, as the whole sub-grant has to be disbursed in one installment, sometimes, even before the sub-granted action is actually implemented.

An example is the award of small grants to start up entrepreneurs.

The grant is actually disbursed before the start of the new business, based on the business plan.

The main grant beneficiary should, however, take all necessary precautions: certification of the co-financing, frequent visits and regular reports.

Another situation is when the main grant beneficiary identifies the sub-grantees, but does not give them certain amounts of money (grants), but implements itself all the procurement procedures and gives the supplies to the selected ‘sub-grantees’.

In this case, the restrictions to total and individual amounts of grant components do not exist.

   

This publication has been produced with the assistance of the European Union. The contents of this publication are the sole responsibility of Regional Development Agency West and can in no way be taken to reflect the views of the European Union Office in Kosovo .

Home FAQs III. How to manage sub-granting in the project? 3.4 How to manage the payments for sub – grantees?