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FAQ 25 - Can a partner sell a vehicle fully purchased under an ECHO Action if this vehicle does not have anymore an economic value based on depreciation rules of the partner? If yes, is ECHO’s prior approval required in such cases?

REMAINING SUPPLIES | DEPRECIATION

If the vehicle does not have an economic value anymore, the Partner is free to decide how to use it. Therefore it can also decide to sell it, and ECHO’s prior approval is not required.

FAQ 27 - Which date should the partner use when calculating the residual economic value of an asset? Should this always be the end date of the eligibility period for the Action?

DEPRECIATION

The assessment of the residual economic value will be done at the end of the eligibility period of the Action, when the partner will have to decide on the end use of the equipment fully charged to the Action. To calculate this value, the partner has to simulate the depreciation costs of the equipment as if it was proposed for a depreciation from the date of its purchase until the end of the eligibility period of the Action. This remains the same even if the equipment was used by an Implementing Partner .

FAQ 44 - What happens if the equipment still has an economic value after several transfers but there is no eligible recipient for donation, nor any action to which to transfer it again?

TRANSFER OF REMAINING SUPPLIES | REMAINING SUPPLIES

The obligation to transfer or donate remains valid until the equipment has been fully depreciated. Therefore, if at the end of the Action to which the transfer was made the equipment is not fully depreciated and donation or transfer are not possible, DG ECHO could either recover the remaining value according to the applicable depreciation rules, or, if justified, grant the Partner a derogation to keep the equipment.

FAQ 46 - Can remaining supplies be transferred to a DG ECHO-funded Action managed by another FPA Partner, by a UN Agency or by an International Organisation?

TRANSFER OF REMAINING SUPPLIES | REMAINING SUPPLIES

Transfer to another DG ECHO-funded Action is only possible if the Action is implemented by the Partner that intends to transfer the remaining supplies. This rule allows DG ECHO to have a direct control over the end use of the equipment and safeguards sound financial management of humanitarian aid funds.

Transfer to a DG ECHO-funded action implemented by another Partner is not possible, but in such cases a donation could be envisaged.

FAQ 47 - How many times can a Partner transfer remaining goods?

TRANSFER OF REMAINING SUPPLIES | REMAINING SUPPLIES

Goods may be transferred only once. This means that goods must be either used up by the end of the Action to which they were transferred or otherwise they must be donated. If donation is not feasible, the full purchase price will be recovered by DG ECHO.
In any case, DG ECHO expects that these remaining goods represent a minimal quantity and that the fact that they were left over did not affect the results of your Action, as otherwise they would be considered as ineligible costs.

FAQ 48 - According to Article 8.1 of the General Conditions the only activities for which costs may be eligible if incurred after the eligibility period are: the preparation of the Final Report, the post-distribution monitoring and the final evaluation or audit. Is this list exhaustive or are there any other exceptions (e.g. distribution of remaining supplies)?

ELIGIBILITY OF COSTS

Yes, the costs related to these activities are the only costs that can be considered eligible even if incurred after the eligibility period. This means that all the other activities have to be finalized within the end of the eligibility period of the Action (GC Art 8.1), or alternatively, the partner can request a no-cost extension.

FAQ 105 - How ECHO calculates the 5% as marginal quantity of remaining goods in similar type? Is the calculation done on the price of the goods or on their quantity?

TRANSFER OF REMAINING SUPPLIES

The calculation is done on the quantity of the goods.

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