Lump sum grants in Horizon Europe place the emphasis on completing work packages (WPs) rather than submitting detailed cost reports. This can lighten the administrative burden but does not eliminate checks on your capacity to perform the work or the possibility of audits. Below is an overview of how lump sum funding works, why splitting WPs can help your cash flow, and how Kronis supports reporting periods and documentation.
How Lump Sum Grants Work
Payment for Results
Once a WP is finished and accepted, you can receive the agreed lump sum for that WP after acceptance in the following Reporting Period.No Detailed Cost Reporting
You don’t need monthly or quarterly cost statements. Travel, staff hours, and other expenses do not require the same level of itemised documentation, although audits remain, so it is not advisable to follow a different procedure as with your usual accounting.Audits Remain
Although you won’t be required to keep timesheets, you may be asked to show that your team actually carried out the tasks and had sufficient staff, equipment, and expertise to do so. So what happens if you are audited several projects (lump-sum & not lump-sum) at once? How do you demonstrate the same researchers have not been working over their productive time overall?Risk of Partial Payment
If you only deliver part of a WP, the payment for that package may be proportionally reduced.
Splitting Work Packages for Better Cash Flow
Many projects have broad WPs (e.g. “Project Management” or “Dissemination”) that last the entire project. Under a lump sum, payment for such a WP only arrives at the end. Splitting those WPs across reporting periods can help:
Improve Cash Flow
Instead of waiting for a large payment at the end, you receive partial funds throughout the project.Align with Milestones
Dividing a WP into segments (e.g. “Management WP1,” “Management WP2,” etc.) makes it clear which tasks are due at each stage.Balance Detail vs. Complexity
More, smaller WPs bring frequent payments but require extra tracking. Pick a structure that suits your team without creating too much admin overhead.
Managing Reporting Periods with Kronis
Kronis does not manage tasks at a granular level, but it helps you organize reporting periods and store evidences of your costs:
Reporting Period Setup
You define reporting periods that match your WP splits, which ensures clarity on how much needs to be spent—and by when—to trigger earlier payments.Document and Deliverable Storage
Though no cost breakdowns are required, you must keep tangible evidence (reports, prototypes, etc.). Kronis stores these files in a single repository.Audit Readiness
If auditors need proof of execution capacity, Kronis can show when each WP was declared complete, and how your researchers contributed.
Recommendations for Lump Sum Success
Plan WPs Carefully
Split them if you want more regular payments, but avoid unnecessary micromanagement.Keep Evidence Organized
Store design documents, test results, meeting notes—anything that proves you performed the work.Prepare for Partial Reductions
If a WP isn’t fully delivered, the payment might drop. Monitor progress closely to avoid last-minute surprises.Stay Audit-Ready
Lump sum doesn’t remove audits. Have a clear method for showing that your team and equipment were in place to do the job.
Conclusion
Lump sum grants in Horizon Europe save time by removing monthly cost reporting, but they still demand a solid structure, consistent documentation, and the ability to prove that tasks are completed. Splitting WPs can enhance cash flow, while a clear reporting setup ensures that everyone knows their responsibilities. Kronis helps coordinate these elements by offering a repository for deliverables and straightforward tracking of reporting periods.
Feel free to register totally free at kronis.app and check how we can help you manage your Horizon Europe Lump Sum Projects.
