Return of funds is the process by which the recipient returns to the provider the entire non-repayable financial contribution or part of it, due to a breach of contractual conditions, confirmed irregularities, financial corrections, failure to meet measurable indicators, breach of sustainability, or receipt of a payment to which there was no entitlement. The process begins with a request for the return of funds, in which the provider quantifies the amount relating to EU funds and the state budget and sets a payment deadline. If the recipient does not pay voluntarily, administrative proceedings follow under the act on contributions from EU funds, or possibly proceedings for breach of financial discipline under the act on budgetary rules, which can also bring a penalty. For serious breaches, the provider withdraws from the contract and recovers the entire contribution. A recipient in a difficult situation can apply for a repayment schedule. The best defence is prevention – consulting on disputed steps in advance and responding to the findings of inspections within the deadlines, while a remedy is still possible.
See also: Irregularity.
