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. Please consult Art. 50.2 of the Annotated Model Grant Agreement for more information.
NO amendment is needed, if the termination takes effect after the end of the action — unless it concerns the coordinator (since the new coordinator has many obligations also after the end of the action, e.g. submit the reports, receive the payment of the balance and distribute the payment among the beneficiaries). The amendment must be requested in accordance with Article 55.
If it is accepted, the Grant Agreement will be amended to introduce the necessary changes (including, if necessary, the addition of new beneficiaries).
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 41.1). 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 (new) coordinator must — within 30 days — 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 Commission/Agency will calculate the amount due to the beneficiary whose participation is terminated:
- if the Commission/Agency 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 repaid by it (normally to the consortium).
For beneficiaries that are involved in several EU Grant Agreements, withdrawal from one Grant Agreement does NOT necessarily imply that it has to also withdraw from the others.
Termination extends to linked third parties. Terminating a beneficiary’s participation implies that its linked third parties’ may NOT continue participating in the action.
How to apply the changes for the amendment
The coordinator must request an amendment for the termination of a beneficiary. The notification will be automatically generated and sent by the system as soon as the amendment request is signed by the Project Legal Signatory (PLSIGN) of the Coordinator and the termination is applied IMMEDIATELY.
| 1 | The Coordinator must launch the amendment request
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| 2 | In the Beneficiaries screen, click on the Termination icon.
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| 3 | Confirm the termination of the beneficiary and its linked parties
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| 4 | Set the termination date as a fixed date (this date must be set as a date in the future, after the notification or on the day after the notification has been sent)
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| 5 | Include the termination reason and, if applicable, flag the "Beneficiary requests the termination" checkbox and click OK
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| 6 | The beneficiary's status changed to "Terminated". If necessary, undo the termination by clicking the "Undo TERMINATED action" button.
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| 7 | If necessary, edit the termination details by clicking the "Edit" button.
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| 8 | "Save" the changes.
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| 9 | In the Amendment Information screen, the amendment type is flagged.
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| 10 | Include the justification for the amendment
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| 11 | Click the "Documents" button and upload the requested supporting documents:
"Save" the changes. |
| 12 | 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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| 13 | The Coordinator "Locks for review" and the Project Legal Signatory (PLSIGN) of the Coordinator signs and submits the amendment.
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The beneficiary's participation will be considered to be terminated at the effective date specified in the notification as soon as the amendment is submitted, even if the amendment is rejected or withdrawn.
If it is rejected, the beneficiaries will have to make another proposal to the EU. If a satisfactory solution cannot be found (i.e. the request for an amendment calls into question the decision awarding the grant or breaches the principle of the equal treatment of applicants), the Grant Agreement may be terminated.