Lithuania-Poland-Russia ENPI Cross-border Cooperation Programme 2007-2013
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INTERESTS ON PRE-FINANCING ACCRUED ON PROJECT ACCOUNT (Interpretation concerning the application of the Article 15.9 of the General Conditions)

2015-07-15

Answering to the doubts concerning the application of the Article  15.9 of the General Conditions of the Grant Contract please find the interpretation of the Joint Monitoring Committee (JMA) regarding the accounting of interest (or their equivalent) accrued on pre-financing provided by the JMA to the Beneficiary of the project:


• Interest accrued on pre-financing (advance payment) paid by JMA to the project Beneficiary should be recognized in the intermediate reports and the final report. The final settlement of accrued interests shall be included in the final report on the implementation of the project;

• If none of the pre-financing payments is above the threshold of EUR 250 000, but at the moment the further pre-financing is received there is still an unused (EU) amount in the bank account and together with the further pre-financing it adds up above the threshold, then interest should be accounted for;

• Any interest accruing from pre-financing of more than EUR 250 000 should either be deducted from the payment of the balance due, or reimbursed before the payment of the balance if requested so by the Contracting Authority. Therefore, if the pre-financing paid exceeds EUR 250 000, all the interest generated is due;

• The term “pre-financing” shall be understood as the total sum of all pre-financing instalments paid by the JMA on the Beneficiary’s bank account;

• Interest shall not be due to the Contracting Authority for pre-financing paid to the EU member states of for pre-financing under pre-accession aid. 

The term “EU member states” covers not only their central structure but also the regional and local authorities, including bodies and structures under their supervision, provided they act on behalf of and under the responsibility of the Member State vis-a-vis the EU.




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