Funding topic 4 of 12
Government and institutional grants
A sanction, a disbursement and income recognition are different events.
Read the entire sanction
Check applicant eligibility, component, eligible costs, application and purchase dates, own contribution, disbursement basis, output targets, procurement rules, reporting, inspection and clawback. Do not buy equipment assuming a later sanction will reimburse it. A lender guarantee, interest subsidy and cash grant are different forms of assistance.
Prepare the funding plan
List approved cost, eligible cost, own funds, debt, grant and timing. Record whether taxes, land, salaries, used equipment and contingencies qualify. Disclose other assistance; obtain written permission for convergence. Never submit the same expenditure twice as fully funded by different donors.
Changes require evidence
Seek written approval before changing location, beneficiaries, vendor conditions, project scope or budget beyond permitted flexibility. Keep expenditure incurred before approval in a separate exception log. Recognise receivables or grant income only when the applicable accounting requirements are satisfied; an application or announcement is not income.
Practical questions
Can we combine a government subsidy and CSR contribution?
Only if both arrangements allow the proposed convergence. Disclose the funding sources, allocate costs clearly and obtain written clarification where needed. Never claim the same cost twice as fully financed.
Read the topic and sourcesCan pre-sanction expenditure be reimbursed?
Only if the scheme or funder allows it. Preserve purchase and payment dates and obtain written eligibility confirmation. A later approval does not automatically make earlier spending eligible.
Read the topic and sourcesCan we change the budget after receiving funds?
Use any flexibility expressly provided in the agreement; otherwise seek approval before changing costs or outputs. Keep a versioned budget and approval trail. Do not retrospectively alter the original budget to hide an overrun.
Read the topic and sources