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Aglccment uut'uber: 2019 - 1943 / 00 1 - 001
Multi benet'iciarics ntodcl il[rccnrcnt: l)cccrnbcr 2018

II.25.3 Step 3 Reduction due to the no-profit rule
-

The grant may not produce a profit for the beneficiaries, unless specified otherwise in the Special
Conditions.

The profit must be calcLrlated as follows:
(a) calculate the surplus of the total receipts of the action, over the total eligible costs of the
action, as follows:

{ receipts of the action
minus

consolidated total eligible costs and contributions approved by the Agency corresporrdirtg
to the amounts determined in accordance with Article 11.25.I )

The receipts of the action are calculated as follows:
{ the revenue generated by the action for beneficiaries and affiliated entities. other than non-
profit orgarrisations
plus

the arnount obtained following Steps I and 2 i

where tlte t€venue generated by the action is the corrsolidated revenue established. generated
or confirmed for beneficiaries and affiliated entities, other tlran non-profit organisations ou the
date on which the request for payment of the balance is drawn up by the coordinator.

In-kind and financial contributions by third parties are not corrsidered receipts,
(b) lf tlre anrount calculated under point (a) is positive, this arnount will be deducted t.r'orn the
amountcalculatedfollowingStepsland2, inproportiontothefinal rateofreimbursementof
tlre actual eligible costs of the qclion approved by the Agerrcy for the categories of costs
referred to in Article 1.3.2(a)(i).

11.25.4 Step 4 Reduction due to improper implementation or breach of other
-
obligations

The Agency may reduce tlte maxintum qmount of the granl if the action has not been implemented
properly as described in Annex I (i.e. if it has not been irnplernented or has been implernented poorly,
partially ol late), or if arrother obligation under the Agreement has been breached.

The amount of the reduction will be proportionate to the degree to which the uc'tion has beerr
implemented inrproperly or to the seriousness of the breach.

Before the Agency reduces the graut, it must send a.formal notificulion to tlre coordinator:
(a) informing it of:

(i) its interrtion to reduce the mqximunt amount ofthe gronl;

(ii) tlre arrount by which it intends to rednce the gmntl

(iii) the reasons for reduction;
(b) inviting it to subrnit observations within 30 calendar days of leceiving the forrnal rrotification.

,') " '/
Annex rr i,y JI

1