Goods refer to items intended for direct consumption or use by the beneficiaries.
The general rule is that goods are only eligible if used during the eligibility period. Thus, if the UN Agency has significant goods left over at the end of the Action, it must request an extension of the implementation period of the Action to use them for the benefit of the beneficiaries, otherwise they cannot be considered as “incurred” for the Action.
On the contrary, if the UN Agency has distributed to the beneficiaries most of the goods during the eligibility period and it has also reached the results, goods left over of a marginal quantity that were not used or distributed to beneficiaries may be eligible if the following conditions are respected.
Remaining goods not distributed to beneficiaries by the end of the implementation period of the Action or used in connection with the Action before the end of the reporting period may be transferred to another ECHO-funded Action of the UN Agency, provided that their destination is indicated in the Final Report.
All goods shall either be used or shall be donated at the end of the Action to which they were transferred.
If transfer is not possible or appropriate, the remaining goods may be donated to local communities, or to non-profit organisations and local authorities identified as Implementing Partners.
In duly justified cases, remaining goods may also be donated to local non-profit organisations or local authorities other than Implementing Partners, as well as to International Organisations and international non-governmental organisations. In such a case, the UN Agency shall obtain prior agreement of ECHO through an amendment by mutual consent. Under no circumstances may the remaining goods be donated to for-profit entities.
In all cases, the UN Agency shall submit with the Final Report information on the destination of the goods and shall retain documentary proof, namely a donation list or donation certificate.
Derogations and exceptions
The obligation to transfer or donate remaining goods can be derogated in the following cases
- the nature of the goods requires expert handling (e.g. nutrition or health related goods) and the UN Agency pledges to use the retained goods for the benefit of humanitarian actions. In this case UN Agency shall ask ECHO's prior approval: at proposal stage, filling in the Section 11 of the Single Form, or during the implementation, through the mutual consent procedure.
- remaining goods with a value of up to EUR 750 per category of items, namely identical or similar items used for the same purpose, are excluded from the obligation of transfer or donation and the UN Agency pledges to use these to the benefit of humanitarian actions.
- the Action is a Multidonor Action. In this case the UN Agency can decide how to handle remaining goods according to its internal rules and procedure.
References & useful links