EU grants settlement

Signing a funding agreement means the beneficiary assumes a range of formal obligations governed by regulations on state aid, public procurement, and expenditure eligibility. Violating these rules — even unintentionally — can result in a financial correction or the need to return part of the grant. Innology eliminates this risk by training the client's team before project implementation begins.

The training covers five areas critical to proper project implementation:

• Competitiveness principle and public procurement — how to correctly conduct tender procedures for project purchases (value thresholds, obligation to publish inquiries in the Competitiveness Database, bid evaluation criteria, documenting contractor selection).
• Cost recording in accounting books — analytical separation of project costs, description of accounting documents, assignment of expenditures to the appropriate eligible cost categories.
• Reporting R&D work progress — documenting the completion of research tasks, achievement of milestones, and output/result indicators required by the funding agreement.
• Project change notification procedure — when a change requires approval from the intermediary institution (PARP, NCBR) and when notification is sufficient; which changes are permissible and which may jeopardize funding.
• Information and promotional obligations — required labeling of documents, materials, and equipment purchased under the project in accordance with EU funds visibility guidelines.

Duration: 1–2 workshop days, conducted within the first 2–4 weeks of signing the funding agreement.

EU grant settlement is a continuous process — it lasts throughout the entire project implementation period (typically 2–4 years) and requires regular submission of documentation to the intermediary institution (PARP, NCBR). Innology assumes full responsibility for preparing this documentation, ensuring timeliness, completeness, and compliance with program requirements.

The scope of documentation prepared by Innology includes:

• Payment requests — periodic requests (advance, reimbursement, or advance settlement) submitted in the CST2021 system, containing a summary of eligible expenditures incurred and a description of substantive progress. Typical frequency: every 3–6 months depending on the program and agreement terms.
• Tender procedure documentation — complete handling of procurements carried out in accordance with the competitiveness principle: preparation of the request for proposals, publication in the Competitiveness Database, analysis and evaluation of bids, contractor selection report, archiving of procedure documentation.
• Project change requests — when implementation deviates from assumptions (schedule changes, budget reallocations, indicator modifications), Innology prepares a formal change request or annex to the funding agreement and manages correspondence with the institution until approval is obtained.
• Milestone documentation — compiling and verifying documents confirming milestone achievement (research reports, test protocols, prototype documentation, external opinions).
• Final report — the concluding document submitted after project completion, summarizing achieved results, expenditures incurred, and fulfillment of funding agreement conditions.

The client provides source data: invoices, payroll lists, timesheets, R&D work reports, and procurement documents. Innology verifies their eligibility, processes them, and compiles them into ready settlement documentation.

Duration: continuous service — from signing the funding agreement to submitting the final report (typically 2–4 years of project implementation).

Completing project implementation and receiving the final payment does not mean the end of the beneficiary's obligations. After settlement closure, the sustainability period begins — a time during which the beneficiary must maintain the project's results or risk returning all or part of the received funding. Innology provides advisory support throughout this entire period, minimizing the risk of violating sustainability conditions.

The sustainability period under FENG programs (SMART Pathway, Ecological Credit, STEP) is 3 years for SMEs and 5 years for large enterprises, counted from the date of the final payment. Under EIC programs, sustainability rules are governed by the Grant Agreement signed with EISMEA (European Innovation Council and SMEs Executive Agency).

Beneficiary obligations during the sustainability period include:

• Maintaining result indicators — indicators achieved in the project (e.g., number of implemented innovations, commercialization revenue, number of new jobs) must be maintained throughout the sustainability period and reported at specified deadlines.
• Prohibition on disposing of project infrastructure — equipment, research apparatus, and intangible assets acquired or created in the project may not be sold, transferred outside the territory of Poland, or allocated for purposes unrelated to the project.
• Maintaining business operations — the beneficiary may not cease the business activity related to the project or relocate it outside the area covered by the operational program.
• Readiness for audits — during the sustainability period, institutions (PARP, NCBR, National Revenue Administration, European Commission, OLAF) have the right to conduct ex-post audits verifying the correctness of project implementation and maintenance of its results.

Innology monitors reporting deadlines, prepares required sustainability reports, and advises in situations threatening its maintenance (e.g., planned company restructuring, change of business profile, sale of assets).

Duration: 3 years (SMEs) or 5 years (large enterprises) from the date of the final payment.