Grant Repayment Procedures and Beneficiary Obligations

Repayment Procedures for Subsidies (LSubv)

Beneficiary Obligations (Art. 14 LSubv)

Beneficiaries must adhere to the following requirements:

• Execution: Completion of the subsidized activity.
• Justification: Providing proof of expenditure to the Administration.
• Transparency: Communicating the receipt of other grants or aid.
• Reimbursement: Returning any unused or ineligible amounts.

The LSubv establishes a regulatory framework for validating and stamping expenditure proofs to prevent fraud and improve the efficiency of verification and control procedures.

Invalidity and Reimbursement

The general scheme mandates reimbursement if the concession agreement is deemed invalid. Article 36 of the LSubv (referencing Act 30/92) outlines grounds for invalidity, including inadequate budgetary provision and other breaches of the legal system, which necessitate the return of funds.

Causes for Repayment (Art. 37 LSubv)

Beneficiaries and collaborating institutions must repay funds under the following circumstances:

• a) Obtaining the subsidy by distorting or hiding conditions.
• b) Total or partial failure to meet the project target.
• c) Failure to provide sufficient justification for expenses.
• d) Failure to implement required dissemination measures.
• e) Obstruction or refusal to cooperate with financial control or accounting audits.
• f) Breach of obligations imposed by the Administration regarding project objectives.
• g) Breach of obligations that make it impossible to verify the use of funds.
• h) Adoption of measures under provisions 87 to 89 of the TEC.
• i) Any other cases specified by the LSubv.

Compliance and Enforcement

Partial returns may be permitted if the recipient has substantially complied with the objectives. The obligation to repay is independent of any administrative sanctions.

Statute of Limitations

The Administration's right to demand reimbursement expires after 4 years from the grant date.

Responsible Parties

Reinstatement obligations apply to:

• Recipients and collaborating institutions.
• Managers of commercial companies and legal representatives.
• Partners and participants in dissolved or liquidated entities.
• Heirs or legatees, as established by law.

Penalties (Art. 52–58 LSubv): The law includes a legal regime for penalties commensurate with the nature of the breach, distinct from criminal offenses.