Use of the subsidy
The subsidy must be used only for the intended purpose and to cover the expenses specified in the application. Expenses must be essential and reasonable.
Subsidies may cover only a portion of the total funding of the project or operations, so they may not be used to cover all expenses.
The call for applications for operational subsidies specifies the share of eligible expenses that the subsidy may cover. The amount of the subsidy combined with other State support may not exceed the total amount of eligible expenses (100%). Eligible expenses are those that can be recognised as expenses for the financial year in question in accordance with the Accounting Act and Decree and generally accepted accounting principles.
The share of eligible expenses that special subsidies may cover is usually not defined, unless otherwise specified in the call for applications or decision. For special subsidies, Taike takes into account other subsidies awarded for the same purpose, as well as income earned from the project. If the project generates a profit, you may be asked to return the subsidy in full or in part.
Subsidies may not be used to cover the following:
- Depreciation, fundraising, business costs and investment costs
- Reservations and deferred items that are not based on actual realised expenses
- Interest on loans or loan instalments
- Non-statutory supplementary pension contributions
- Severance pay or non-compulsory pay for the period of notice
- Performance-based bonuses
- Legal costs or damages
- Penalties, such as fines or interest on late payment
Subsidies may not be used to pay tax-exempt grant unless specified otherwise in the decision. Social security contributions and other relevant payments must be paid on all fees and wages paid from subsidies.
Procurements and accounting
If your community is subject to the Act on Public Contracts (348/2007, Section 6: Contracting Authorities), tenders must be invited for all procurements amounting to more than 60,000 euros.
The community must organise accounting in the manner stipulated in the Accounting Act, so that the use of the subsidy can be monitored reliably from its accounting.
Detailed information about the terms and conditions for using the subsidy is provided in the decision.