The subsidy determination is the decision by which an administrative body fixes the final amount of a subsidy and thereby establishes a claim to payment. It follows the award, in which the amount is still conditional.
Legal basis
Title 4.2 of the General Administrative Law Act governs subsidies. Articles 4:29 and following concern the award, Articles 4:42 and following the determination. Article 4:46 provides that the subsidy is determined in accordance with the award, but allows a lower determination where the activities did not take place or not fully, where obligations were not met, where incorrect information was supplied, or where the award was incorrect and the recipient knew or should have known. Articles 4:48 and 4:49 govern withdrawal and amendment of the award and the determination, with a five-year period under Article 4:49. Article 4:57 confers the power to recover sums paid without basis, likewise within five years.
How it works in practice
Accountability is decisive. The award decision states which documents must accompany the application for determination: an activity report, a financial report and sometimes an auditor’s statement. Records must be kept during the project so that costs can be traced to activities. European subsidies impose further requirements, and corrections can follow years later.
Where it goes wrong
Recipients depart from the plan during the project without seeking approval, after which part of the costs turn out not to be eligible. A second error is a timesheet drawn up afterwards. Third, the application for determination is filed late, which in itself can justify a lower determination.
Related terms
The determination is an administrative decision open to a notice of objection, and connects to the policy rule containing the subsidy conditions.
Facing a lower determination or recovery? Our administrative lawyers conduct the defence.
