Description
The participation of one or more beneficiaries may be terminated by the coordinator, on request of the beneficiary concerned or on behalf of the other beneficiaries.
For the new MFF 2021-2027, PTROs are handled as normal in/out amendment (termination of Former Beneficiary; addition of New Beneficiary). There is no longer the special clause for PTRO amendments, covering all changes needed.
NO amendment is needed, if the termination takes effect after the end date of the action - unless it concerns the coordinator since the amendment is necessary to comply with the obligations to submit the reports, and distribute the payment among the beneficiaries. If the terminated beneficiary is the coordinator, AT4 must be combined with AT11 to appoint a new coordinator as well as AT12 to change the bank account for payments. The amendment must be requested in accordance with Article 39.
If it is accepted, the Grant Agreement will be amended to introduce the necessary changes (including, if necessary, the addition of new beneficiaries).
The termination date is legally binding (i.e. it takes effect with the entry into force of the amendment). After the effective date has passed, the termination cannot be withdrawn. If the terminated beneficiary wants to rejoin the consortium a new formal amendment must be requested (AT2).
If the Grant Agreement continues (i.e. it is amended), the remaining members of the consortium (and any new beneficiaries) have the responsibility for fully implementing the action as described in Annex 1 (see Article 7). They must carry out the action (including the part that the defaulting beneficiary was supposed to carry out and without any additional funding to do so) — unless the Commission/Agency expressly agrees otherwise.
The coordinator must — within 60 days from when the termination takes effect — submit the necessary reports (i.e. a report on the distribution of payments to the beneficiary concerned and a termination report). The information contained in the beneficiary’s termination report must also be included in the periodic report for the next reporting period (for more information on beneficiary termination reporting, please click here).
The granting authority will calculate the amount due to the terminated beneficiary taking into account the costs incurred and contributions for activities implemented before the end of work date:
- if the granting authority owes amounts to the beneficiary, those amounts will be paid with the following payment to the consortium (interim or final)
- if the beneficiary owes, those amounts must be paid back to the consortium
For beneficiaries that are involved in several EU Grant Agreements, withdrawal from one Grant Agreement does NOT necessarily imply withdrawal from the others.
Beneficiary termination extends to their affiliated entities (with effect from the same date).
How to apply the changes for the amendment
The coordinator must request an amendment for the termination of a beneficiary.
| 1 | In the Beneficiaries screen, click on the Terminate icon.
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| 2 | Confirm the termination of the beneficiary and its Third Parties.
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| Beneficiaries of Grant Agreement (GA) | Beneficiaries of Framework Partnership Agreement (FPA) | |
| 3 | Set the Exit Date (end of work date): this is the date that the partner ended their work in the project. Costs are incurred up to this date and it can be retroactive.
When the Exit Date (End of work date) is selected, the Termination date is automatically calculated. The Termination date is the date the termination takes effect and cannot be before the submission of the amendment request (it can be later or on the same date).
| Set the Exit Date (end of work date): this is the date that the partner ended their work in the project. Costs are incurred up to this date and it can be retroactive.
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| 4 | If applicable, flag the "Beneficiary requests the termination" checkbox and click "OK".
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| 5 | The beneficiary's status will change to "Terminated". If necessary, undo the termination by clicking the "Undo REMOVE action" button.
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| 6 | If necessary, edit the termination details by clicking the "Edit" button.
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| 7 | "Save" the changes.
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| 8 | In the Amendment Information screen, the amendment type is flagged.
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| 9 | Include the justification for the amendment.
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| 10 | Click the "Documents" button and upload the requested supporting documents:
*Additionally, other supporting documents justifying the termination may be also attached (e.g. proof of bankruptcy, letter from the liquidator, court decision, etc.)
"Save" the changes. | |
| 11 | For "Annex 1-Description of Action (part B)": if necessary, revise the document by comparing it with its previous versions and replace it with the correct version.
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| 12 | The Coordinator "Locks for review" and the Project Legal Signatory (PLSIGN) of the Coordinator signs and submits the amendment.
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If the Beneficiary is linked to an Associated Partner, you must manually update the Associated Partner's "Associated with" data. Either by associating with another beneficiary or removing the association.
If the amendment is withdrawn or rejected, then the termination does not apply (as any other change contained in a withdrawn or rejected amendment).
If it is rejected, the beneficiaries will have to make another proposal to the EU.