Common use of Managing the Grant Clause in Contracts

Managing the Grant. 6.1. Each Party shall record the contact details of their Authorised Representatives at Annex C. At a minimum these must be the Grant Sponsor and Project Manager. 6.2. The Recipient shall: a. have sound administration and audit processes, including financial safeguards against fraud, theft, money laundering, counter-terrorist financing or any other impropriety or mismanagement in connection with the administration of the Grant, b. ensure that the adequacy of the systems in place are subject to independent audit, the results of which must be shared with the Authority, and c. ensure that appropriate professional arrangements are put in place for the management of the Grant and the reporting of expenditure. 6.3. The Recipient should take all necessary steps to ensure that the Grant is accounted for and monitored separately from the Recipient’s other funding streams 6.4. Monies and income derived from Third Parties as Supplementary Funding shall not constitute the Grant and will be accounted for, identified and reported on separately. 6.5. The Recipient may not veer (move) funds between this Grant and other grants made to it. 6.6. The Recipient shall account for the Grant on an accruals basis. This requires the cost of goods or services to be recognised when the goods or services are received, rather than when they are paid for. 6.7. In support of Grant Claims, and in accordance with the monitoring and reporting requirements detailed in Schedule 3, using the template at Annex A the Recipient shall highlight any significant financial variances, underspend or overspend. 6.8. Where an underspend is identified by the Recipient, the Authority may require that (i) a revised budget toolkit is submitted, and (ii) subsequent payment values noted in Schedule 2 are adjusted accordingly. 6.9. At the end of the Funding Period, the Recipient shall submit an Outturn Statement to the Authority. This Outturn Statement must: a. be in the format set out in Annex B, and

Managing the Grant. 6.1. Each Party shall record the contact details of their Authorised Representatives at Annex C. At a minimum these must be the Grant Sponsor and Project Manager. 6.2. The Recipient shall: a. have sound administration and audit processes, including financial safeguards against fraud, theft, money laundering, counter-terrorist financing or any other impropriety or mismanagement in connection with the administration of the Grant, b. ensure that the adequacy of the systems in place are subject to independent audit, the results of which must be shared with the Authority, and c. ensure that appropriate professional arrangements are put in place for the management of the Grant and the reporting of expenditure. 6.3. The Recipient should take all necessary steps to ensure that the Grant is accounted for and monitored separately from the Recipient’s other funding streams. 6.4. Monies and income derived from Third Parties as Supplementary Funding shall not constitute the Grant and will be accounted for, identified and reported on separately. 6.5. The Recipient may not veer vire (move) funds between this Grant and other grants made to it. 6.6. The Recipient shall account for the Grant on an accruals basis. This requires the cost of goods or services to be recognised when the goods or services are received, rather than when they are paid for. 6.7. In support of Grant Claims, and in accordance with the monitoring and reporting requirements detailed in Schedule 3, using the template at Annex A the Recipient shall highlight provide the Authority with narrative reports detailing progress against Key Performance Indicators (KPIs); these should also include headline financial reconciliations highlighting spend and any significant financial variances, underspend or overspend. 6.8. Where an underspend is identified by the Recipient, the Authority may require that (i) a revised budget toolkit is submitted, and (ii) subsequent payment values noted in Schedule 2 are adjusted accordingly. 6.9. At the end of the Funding Period, the Recipient shall submit an Outturn Statement to the Authority. This Outturn Statement must: : a. be in the format set out in Annex B, and b. be signed by a Finance Officer. 6.10. The Authority may ask the Recipient to clarify any information provided to it. If so, the Recipient shall comply with any such request. 6.11. The Authority may at its discretion provide the Recipient with feedback on the adequacy of any report or claim and may also require the Recipient to re-submit a report or claim, having taken into account any issues raised in the Authority’s feedback. 6.12. The Recipient shall promptly notify and repay to the Authority any overpayment or monies incorrectly paid to it. This includes (without limitation) situations where either an incorrect sum of money has been paid or where Grant has been paid in error before the Recipient has complied with all conditions attaching to the Grant. 6.13. At the end of the Funding Period, or upon termination howsoever caused, the Recipient shall ensure that all Unspent Monies are returned to the Authority, unless otherwise agreed in writing by the Authority and at its sole discretion. 6.14. For the purposes of accounting, reconciliation and the repatriation of Unspent Monies at termination or at any other point provided for within this Grant Agreement, the Grant shall consist of: a. all Grant monies paid to the Recipient, b. all interest and returns generated from the investment of the Grant; and 6.15. The Recipient shall be mindful of the UK Government’s “Greening Government Commitments”1 and ensure that all its activities and those of its Delivery Partners are delivered in accordance with these. 6.16. The Recipient shall have appropriate and proportionate contingency plans in place to ensure continuity of delivery of the Purpose, and the Authority shall have sight of these contingency plans and shall have the right to request assurance from the Recipient as to their implementation, where necessary, to ensure continuity of delivery of the Purpose. 6.17. The Recipient must ensure it has in place suitable measures for the orderly management of its business operations following the expiry of termination of this Grant Agreement howsoever caused;