What’s New for EU Funding Beneficiaries?
The European Commission has officially released the Annotated Grant Agreement (AGA) Version 2, effective from 1st April 2025. At Kronis.app, we’ve analyzed the document carefully to highlight the essential updates and clarify their implications for your EU-funded projects.
What is the Annotated Grant Agreement (AGA)?
The Annotated Grant Agreement is the European Commission’s key document that details how EU grant agreements should be interpreted and implemented. It provides beneficiaries with guidance on the eligibility and management of costs and project activities, ensuring compliance and avoiding common pitfalls during project execution.
Find this new version on this link.
Key Changes in Article 6: Personnel Cost Eligibility
One of the most significant updates for beneficiaries is found in Article 6, addressing personnel cost eligibility. Previously, eligible costs needed to be both “identifiable and verifiable,” meaning they had to be “actually paid and recorded in the beneficiary’s accounts.”
Now, the wording has subtly but significantly changed to “actually paid or recorded in the beneficiary’s accounts.”
Why does this “or” matter? Let’s explore two practical examples:
Delayed invoice payments: An invoice with a 60-day payment period could previously pose eligibility challenges. Now, if this invoice is recorded in your Profit & Loss accounts from day one—even if the actual payment occurs on day 60—it’s clearly eligible under the new rules.
Cascade funding (FSTP): Financial Support to Third Parties (FSTP) often faces cash-flow delays, especially when funds to subgrantees depend on final EC payments. The updated AGA now explicitly accommodates this scenario, providing greater security and clarity for cascade funding managers.
Improved Document Navigation
Another practical improvement is the addition of hyperlinks to different Articles throughout the AGA. With a comprehensive 431-page document, this improvement substantially enhances user experience, making it easier and faster to navigate specific articles and clauses.
Guidelines and Recommendations for FSTP: Coming Soon
Interestingly, the Commission announced the creation of specific guidelines and best practice recommendations for cascade funding managers (FSTP). However, the document is not yet available. It currently displays a placeholder stating “coming soon.” Keep an eye on this space here.
Personnel Costs for Final Reporting and Project Review
In previous versions, the AGA allowed the time dedicated to preparing the final report to be eligible. The new update expands this eligibility to also include personnel time spent on project reviews. However, it’s important to note that if your project has already reached the maximum day equivalents (215 days per year), these additional hours will not increase your allowed limit, creating a bittersweet scenario.
Kronis.app: Integrating AGA V2 Updates
At Kronis.app, we are proactively integrating these latest changes into our platform to ensure your projects remain compliant and efficiently managed. Stay tuned for coming news about how these modifications will be included in our solution.
To experience how Kronis.app simplifies your grant management processes with the latest updates, sign up today for a free 30-day trial!
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