Example 1: No breach
A participant is approved for £100 with a grant rate of 50%, but has spent £98 completing the project. The participant claims £98, all of which is eligible. There are no breaches and no penalties and we will pay
£98 x 50% = £49
Example 2: Over the agreed amount - but not a breach
A participant is approved for £100 with a grant rate of 50%, but has spent £112 completing the project. All £112 is eligible and supported by invoices, and this is what the participant is asked to declare on his claim form. Because it is all eligible expenditure, this constitutes a declaration of expenditure, not an over-claim. We will use the approved amount (£100) in calculating the amount due:
£100 x 50% = £50
Example 3: Under the agreed amount - but a breach
A participant is approved for £100 with a grant rate of 50%, but has spent £98 completing the project. The participant claims £98, but on checking the invoices, the eligible items come to only £92. This is an over-declaration of £6 or 6.5%. The over-claim is greater than 3%, so in addition to deducting ineligible amounts, we will deduct the same amount again as a penalty. The amount due will be:
(£92-£6) x 50% = £43
Example 4: Includes ineligible items - but still not a breach
A participant is approved for £100 with a grant rate of 50%, but has spent £120 completing the project and declares this. The eligible items only total £110. This is a breach. However, because there is sufficient eligible expenditure to justify paying out the full agreed amount, we will do so and there will be no penalty:
£100 x 50% = £50
Example 5: Ineligible item
A participant is approved for £100 with a grant rate of 100%. He submits total costs of £110. As part of the claim, he submits an invoice for an ineligible item worth £43. The amount on this invoice will be deducted from the amount due, and an equivalent amount deducted again as a penalty
Approved £100
Eligible Invoices £110 -£43 (ineligible amount)= £67
Difference £100* - £67 = £33
Eligible payment £100 -£33-£33 = £34
* This is the amount payable to the beneficiary base solely on the claim before examination.