As a general rule, ECHO pays an initial pre-financing equal to the total amount of its contribution 30 calendar days after the agreement comes into force. If ECHO arrives too late for payment, the late interest plan applies. The different pre-financing rates can be applied by ECHO taking into account the specifics of the action, for example. B: the pre-financing granted to beneficiaries remains the property of the Commission until the repayment. Pre-financing is spent continuously from the date of the transfer until the financial statements are adopted. On the other hand, the principle of co-financing also implies that beneficiaries must draw on pre-financing and their own resources over each period. In these cases, ECHO50% (followed by a second pre-financing of 30%) or another configuration. All procedures relating to the action fall within the competence of the organisation concerned. The use of personal bank accounts does not appear, on the face of it, to be the healthiest financial management, but may be necessary in certain circumstances. The costs associated with these bank accounts can only be considered eligible if the organization can demonstrate that these accounts were used exclusively for this measure.
The organisation should also keep in mind that pre-financing remains the property of the Commission until the final payment and therefore makes all necessary arrangements to ensure that all the money is available at any time. Reference: Articles 5 and 119 Financial Regulations Unfortunately, at the end of the action, ECHO no longer makes advances for pre-financing. The organization must wait until the last payment containing the payment it forgot before the end of the action is received. Reference: Information Sheet C5 Payments and Interest Pre-financing (when the grant agreement comes into force) 160% x Total budget for the first year or period An organization may apply for the second pre-financing before or after the presentation of the interim report. In this case, the information mentioned in the FAQ above must be forwarded to ECHO. If the pre-financing rate in the contract phase is not 80%, the partner can apply for a second pre-financing as soon as he is able to explain it, 70% of the amount that was used with the first pre-financing. The request for additional pre-financing can be implemented from the “Send pre-financing application” section; This is where the partner should download the `nbsptemplate` (available below) for the second pre-financing application. Once the request is complete, it must be downloaded to the same call area and can be forwarded to ECHO (for more information here). The Commission will pay the new pre-financing tranche within 30 calendar days from the date of receipt of the additional pre-financing application. Interest on pre-financing – the guidance of the 6th PC was clear: the bank interest collected by the pre-financing coordinator is a receipt of the project. However, under the 7th PC, interest is not considered income to reduce bureaucracy if the amount of capital is less than 50,000 euros (amount to be confirmed), but as an income to minimize bureaucracy. However, the interest received by the beneficiaries after the transfer of the pre-financing is never considered receipts.
In the “linked” column of Section 11, it is necessary that at least 70% of the first pre-financings have been committed in order to obtain a second pre-financing. In addition, ECHO must be sure that the project is on track before the second pre-financing is granted. If an application for a second pre-financing is submitted by an organization prior to the submission of the interim report, an update of the information in section 4.3 of the single form (focusing on key resource and cost obligations) and an updated financial summary (Annex II of the grant agreement) are an appropriate means of justifying a request for a second pre-financing payment.