Common use of Justifying Costs Clause in Contracts

Justifying Costs. In accordance with its own usual accounting and management principles and practices, each Party shall be solely responsible for justifying its costs (and those of its Affiliated Entities, if any) with respect to the Project towards the Granting Authority. Neither the Coordinator nor any of the other Parties shall be in any way liable or responsible for such justification of costs towards the Granting Authority. This accounting system cannot be affected by the Granting Authority, by the consortium nor one of the Parties, as is stated in the Grant Agreement. Experience shows that this is often not well understood and in consequence gives rise to certain problems. Making it part of this CA, is to ensure that the principle is maintained. Beneficiaries also have to justify the costs of affiliated entities as they are responsible for compliance by the affiliated entities and liable according to the MGA (4.4 Data Sheet: “Each beneficiary is liable only for its own debts (and those of its affiliated entities, if any).”).