Article 5

The Commission shall provide financing under the Programme in the form of grants and only upon receipt of an appropriate work programme and an estimated overall budget. Community financing shall be awarded in the form of operating grants or action grants, subject to the following conditions: in the case of the beneficiaries listed in Section A of the Annex, Community financing must be awarded in the form of operating grants; and in the case of the beneficiaries listed in Section B of the Annex: the beneficiaries may choose between an action grant and an operating grant; and when submitting its work programme and estimated overall budget to the Commission pursuant to paragraph 1, the beneficiary must provide the Commission with written confirmation that its request for financing does not undermine the independence of the Committee of Supervisors to which that beneficiary provides an administrative support function. Operating grants shall be granted only to finance the operating costs and expenses of the beneficiaries including the running of their secretariats and the remuneration of their employees. In the event of renewal, operating grants shall not be automatically decreased. Action grants shall be granted only for the activities set out in Article 6 and shall be subject to the following conditions: their exclusive aim must be to enable the beneficiaries listed in Section B of the Annex to provide an administrative support function to the Committees of Supervisors to develop and implement the projects identified in the decisions providing for the action grants; and the administrative support function of the beneficiaries listed in Section B of the Annex must be clearly set out in their respective statutes. The administrative support function referred to in point (b) shall be the sole purpose of the beneficiaries listed in Section B of the Annex and shall include the carrying out of the activities laid down in Article 6 for the benefit of the Committees of Supervisors. The Commission shall decide on the amounts and the maximum percentage of financing and shall make such decisions public.

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Source: EUR-Lex (Cellar) · retrieved 2026-10-28 · Text as adopted (Official Journal); later amendments are not incorporated in this text.