Government funding clause: Copy, customize, and use instantly
Introduction
A government funding clause outlines the terms under which government funding is provided or involved in the execution of an agreement. It details how government funds will be managed, any obligations the parties have in relation to the funding, and the conditions for use of these funds. This clause ensures transparency and accountability for the handling of public funds.
Below are templates for government funding clauses tailored to different scenarios. Copy, customize, and insert them into your agreement.
Standard government funding clause
This version includes basic terms for government funding.
The [Company] acknowledges that funding for this project has been provided by [Government Agency], and agrees to comply with all requirements set forth by the funding body, including the proper use of funds and adherence to the guidelines specified in [Schedule X]. Any funds received must be used exclusively for the purposes outlined in this Agreement.
Government funding clause with reporting and auditing requirements
This version includes reporting and auditing requirements.
The [Company] agrees to submit regular financial reports and progress updates regarding the use of government funds to the [Government Agency] as outlined in [Schedule X]. The [Government Agency] has the right to audit the [Company]’s use of funds at any time during the term of this Agreement to ensure compliance with the funding terms.
Government funding clause with use of funds restrictions
This version includes restrictions on the use of funds.
Government funds provided under this Agreement may only be used for the purposes specifically outlined in [Schedule X]. Any deviation from these purposes requires prior written approval from the [Government Agency]. The [Company] agrees not to use the funds for any unauthorized activities or expenditures.
Government funding clause with performance-based disbursement
This version ties funding disbursements to performance.
Disbursements of government funds will be made in installments based on the completion of specific performance milestones, as detailed in [Schedule X]. The [Company] must provide satisfactory evidence of the completion of each milestone before receiving the next installment of funding.
Government funding clause with compliance with government regulations
This version includes compliance with regulations.
The [Company] agrees to comply with all applicable government laws, regulations, and policies concerning the funding provided under this Agreement, including those relating to financial management, reporting, and auditing. The [Government Agency] has the right to terminate the funding if the [Company] fails to comply with these requirements.
Government funding clause with repayment of unused funds
This version includes repayment of unused funds.
If any government funds remain unused by the end of the project, the [Company] agrees to return the unused funds to the [Government Agency] within [X] days after the completion of the project. The [Company] will provide a detailed account of how the funds were spent.
Government funding clause with restrictions on subcontracting
This version includes restrictions on subcontracting.
The [Company] shall not subcontract any part of the project funded by government funds without obtaining prior written approval from the [Government Agency]. The [Company] remains fully responsible for the performance of the project and compliance with funding terms, even if subcontractors are used.
Government funding clause with government oversight
This version includes oversight by the government.
The [Government Agency] has the right to oversee the implementation of the project, including monitoring progress, reviewing financial records, and ensuring that government funds are used appropriately. The [Company] agrees to cooperate fully with the [Government Agency] in such oversight activities.
Government funding clause with funding adjustment for underperformance
This version includes funding adjustments for underperformance.
If the [Company] fails to meet the agreed-upon performance targets or milestones as set forth in [Schedule X], the [Government Agency] may reduce the funding amount or withhold further disbursements until the [Company] demonstrates satisfactory performance.
Government funding clause with intellectual property rights
This version includes intellectual property rights for funded projects.
Any intellectual property developed as part of the project funded by government funds shall be owned by the [Company], but the [Government Agency] retains a royalty-free, non-exclusive license to use such intellectual property for public purposes. The [Company] agrees to notify the [Government Agency] of any IP developed during the project.
Government funding clause with audit rights
This version includes audit rights for government agencies.
The [Government Agency] has the right to audit the [Company]’s use of government funds at any time during the term of this Agreement and for [X] years after project completion. The [Company] agrees to provide access to all relevant records and documentation to facilitate the audit.
Government funding clause with funding disbursement upon government approval
This version includes disbursement upon approval.
Government funds will be disbursed upon approval by the [Government Agency] based on the submission of a detailed funding request, which includes a breakdown of anticipated expenses and justification for the requested amount. The [Company] must obtain the approval before funds are disbursed.
Government funding clause with termination for non-compliance
This version includes termination for non-compliance.
If the [Company] fails to comply with the terms of the funding agreement, including improper use of funds or failure to meet reporting requirements, the [Government Agency] may terminate the funding and require repayment of any funds already disbursed.
Government funding clause with late payment penalties
This version includes penalties for late payments.
If the [Company] does not submit required reports or financial statements on time, the [Government Agency] may impose a penalty on any outstanding payments, as specified in [Schedule X]. The [Company] agrees to pay any penalties incurred due to late reporting.
Government funding clause with insurance requirements
This version includes insurance requirements for funded projects.
The [Company] agrees to maintain insurance coverage sufficient to cover any potential liabilities arising from the use of government funds under this Agreement. The [Company] will provide proof of insurance to the [Government Agency] upon request.
Government funding clause with cost-sharing arrangement
This version includes a cost-sharing arrangement.
The [Government Agency] will fund [X]% of the total project cost, with the [Company] responsible for covering the remaining [Y]%. The [Company] agrees to match the government funding by providing equal or greater resources to complete the project.
Government funding clause with grant funding
This version includes grant funding details.
The [Company] acknowledges that this Agreement involves the provision of grant funding by the [Government Agency]. The [Company] agrees to use the funds exclusively for the purposes of the project outlined in the grant application and to comply with all conditions set forth in the grant terms.
Government funding clause with eligibility for future funding
This version includes eligibility for future funding.
The [Company] agrees that successful completion of this project and proper use of government funds may make it eligible for additional government funding for related projects. The [Company] agrees to follow all applicable procedures for future funding applications.
Government funding clause with restriction on use of funds for political activities
This version restricts the use of funds for political activities.
The [Company] agrees not to use government funds for any political activities, including lobbying, advocacy, or contributions to political campaigns, as defined under [Relevant Laws or Regulations]. Any such use will result in immediate termination of funding.
Government funding clause with use for specific program
This version specifies use for a specific program.
The government funds provided under this Agreement must only be used for the [specific program] outlined in [Schedule X]. The [Company] agrees to refrain from using these funds for any activities outside the scope of the program.
Government funding clause with eligibility for audit
This version includes eligibility for audit.
The [Company] agrees that the [Government Agency] or any authorized third party may audit its use of government funds to ensure compliance with the terms of this Agreement. The [Company] will provide access to all relevant records for auditing purposes.
Government funding clause with matching funds requirement
This version includes a matching funds requirement.
The [Investor] agrees to provide matching funds equal to the government funding for the project. The total project budget must be funded by both the [Government Agency] and the [Investor], with the funds to be used exclusively for the project.
Government funding clause with reporting on expenditures
This version includes reporting on expenditures.
The [Company] agrees to provide detailed reports of all expenditures made using government funds, including receipts and invoices, to the [Government Agency] every [quarter/month] for the duration of this Agreement.
Government funding clause with required government notification
This version includes notification to the government.
The [Company] agrees to notify the [Government Agency] immediately if there is any deviation from the agreed-upon use of funds or any risk of underperforming against the project milestones outlined in [Schedule X].
Government funding clause with restriction on funds transfer
This version includes restrictions on transferring funds.
The [Company] agrees not to transfer any portion of the government funds to any third party without prior written approval from the [Government Agency]. All funds must be used solely for the purposes specified in this Agreement.
Government funding clause with penalty for misuse of funds
This version includes a penalty for misuse.
If the [Company] misuses any portion of the government funds, the [Company] will be required to repay the misused funds to the [Government Agency] and will incur a penalty equal to [X]% of the amount misused.
Government funding clause with payment schedule for fund disbursement
This version includes a payment schedule.
Government funds will be disbursed in accordance with the following schedule: [X]% upon the execution of this Agreement, [Y]% upon the completion of [milestone], and the final [Z]% upon project completion. Payments will be contingent on the satisfactory completion of each milestone.
Government funding clause with restriction on interest-bearing funds
This version includes a restriction on interest-bearing funds.
Any funds provided by the government under this Agreement will not bear interest unless specifically authorized by the [Government Agency]. The [Company] agrees not to treat government funds as interest-bearing accounts.
Government funding clause with reimbursement for government audits
This version includes reimbursement for government audits.
If the [Government Agency] conducts an audit and finds discrepancies or errors in the use of funds, the [Company] agrees to cover the costs of the audit, including any additional administrative or legal fees incurred during the audit process.
Government funding clause with matching for certain costs
This version includes matching for certain costs.
The [Government Agency] will match the [Company]’s expenses up to a maximum amount of [$X] for [specific costs, e.g., equipment, labor]. Any cost exceeding the matched amount will be borne entirely by the [Company].
Government funding clause with cost escalation review
This version includes a cost escalation review.
If the cost of the project increases by more than [X]% during the term of this Agreement, the [Company] agrees to notify the [Government Agency] and submit a revised budget for approval before proceeding with the increased costs.
Government funding clause with eligible expenditures criteria
This version defines eligible expenditures.
Only expenses directly related to the implementation of the project, as outlined in [Schedule X], will be considered eligible for reimbursement under the government funding. Any non-related expenses must be pre-approved by the [Government Agency].
Government funding clause with liability for improper spending
This version includes liability for improper spending.
The [Company] acknowledges that improper use of government funds, including misuse or misallocation, will result in immediate liability for the full amount of the misused funds, plus any penalties or interest imposed by the [Government Agency].
Government funding clause with audit rights of the [Investor]
This version includes audit rights for the [Investor].
The [Investor] has the right to audit the [Company]’s financial records related to the use of government funds at any time during the term of this Agreement and for [X] years after the completion of the project.
Government funding clause with government-owned materials
This version includes government-owned materials.
Any materials purchased with government funds will remain the property of the [Government Agency], even if the project is completed. The [Company] agrees to return any unused materials to the [Government Agency] at the completion of the project.
Government funding clause with funding recovery for underperformance
This version includes funding recovery.
If the [Company] fails to meet any performance targets or milestones specified in this Agreement, the [Government Agency] has the right to demand the return of any disbursed funds that were paid in advance for unmet deliverables.
Government funding clause with transparency of fund allocation
This version ensures transparency.
The [Company] agrees to maintain transparency in the allocation of government funds. Detailed reports of how the funds are spent, including all invoices, receipts, and expense reports, will be provided to the [Government Agency] for review at regular intervals.
Government funding clause with additional government assistance
This version includes additional government assistance.
In addition to the funds provided, the [Government Agency] may offer additional assistance in the form of resources, technology, or expertise to help the [Company] achieve project milestones. This assistance will be provided at no additional cost to the [Company].
Government funding clause with tax reporting obligations
This version includes tax reporting obligations.
The [Company] agrees to include the government funds received under this Agreement in its tax filings and to comply with all applicable tax reporting requirements. The [Investor] agrees to assist the [Company] in ensuring that the tax treatment of the funding is correct.
Government funding clause with compliance with public policy
This version includes compliance with public policy.
The [Company] agrees that any activities funded by government funds will comply with the public policy goals of the [Government Agency] and will align with the [specific public policy goals] outlined in [Schedule X].
Government funding clause with cross-border funding restrictions
This version includes cross-border restrictions.
If the [Company] is located outside of the [Country], the [Company] will ensure that the funds received under this Agreement are not used for activities outside of the agreed jurisdiction without the prior written consent of the [Government Agency].
Government funding clause with late funding penalties
This version includes penalties for late funding.
If the government funds are delayed due to administrative issues or errors, the [Government Agency] will notify the [Company] and work to resolve the matter. If the delay results in project disruptions, the [Government Agency] agrees to provide a penalty equal to [X]% of the delayed payment per month.
Government funding clause with final audit report
This version includes a final audit report.
At the completion of the project, the [Company] shall submit a final audit report, detailing the use of government funds, to the [Government Agency]. The report will include a breakdown of all expenditures and supporting documentation to ensure compliance with the terms of this Agreement.
Government funding clause with special conditions for high-risk projects
This version includes conditions for high-risk projects.
For high-risk projects, as defined by the [Government Agency], the [Company] agrees to meet additional compliance requirements. These may include additional oversight, risk management procedures, and progress reporting in order to mitigate risks associated with the project.
Government funding clause with timely return of unspent funds
This version requires timely return of unspent funds.
The [Company] agrees to return any unspent government funds within [X] days of the project’s completion or termination. The return will be made in full, and any interest earned on unspent funds will also be returned.
Government funding clause with penalties for unauthorized expenditure
This version includes penalties for unauthorized expenditure.
If any funds provided under this Agreement are spent in a manner not authorized by the [Government Agency], the [Company] agrees to repay the unauthorized expenditure along with a penalty equal to [X]% of the misused amount.
Government funding clause with payment schedule tied to progress reports
This version ties payments to progress reports.
Government funding payments will be made based on the completion of specific project milestones. Payments will only be disbursed following the submission and approval of the [Company]’s progress reports, as outlined in [Schedule X].
Government funding clause with escalation procedure for disputes
This version includes a dispute escalation procedure.
In the event of a disagreement regarding the use of government funds or the execution of this Agreement, the parties agree to follow an escalation procedure. Initial efforts will involve informal negotiations, followed by mediation or arbitration if necessary.
Government funding clause with independent third-party review
This version includes independent review.
The [Government Agency] reserves the right to appoint an independent third party to review the use of government funds under this Agreement. The [Company] agrees to provide the third party with all relevant documentation and cooperate fully in the review process.
Government funding clause with funding for project-related equipment
This version includes funding for equipment.
The [Government Agency] agrees to fund the purchase of necessary equipment for the successful execution of the project. The [Company] will ensure that all equipment purchased with government funds is used solely for the project and will be reported accordingly.
Government funding clause with compliance with environmental standards
This version includes environmental compliance.
The [Company] agrees to comply with all applicable environmental regulations when utilizing government funds. This includes ensuring that all project activities are carried out in an environmentally responsible manner, with proper waste management and pollution controls.
Government funding clause with no liability for project delays
This version limits liability for project delays.
The [Government Agency] will not be held liable for any delays in the execution of the project caused by factors beyond the control of the [Company], such as delays in government fund disbursement, changes in regulatory requirements, or unforeseen external circumstances.
Government funding clause with funding for research and development
This version includes funding for R&D.
The government funds provided under this Agreement will be used exclusively for research and development activities as defined in [Schedule X]. The [Company] agrees to allocate the funds in a manner that directly supports the R&D efforts outlined in the project plan.
Government funding clause with annual financial audits
This version includes annual financial audits.
The [Company] agrees to undergo an annual financial audit for the duration of this Agreement to ensure that government funds are being used appropriately. The audit will be conducted by an independent firm and the results will be shared with the [Government Agency].
Government funding clause with loss of funding due to non-compliance
This version includes loss of funding due to non-compliance.
The [Company] acknowledges that failure to comply with the terms of this Agreement, including improper use of government funds, will result in the loss of funding for the project. In such cases, any funds already received must be returned within [X] days.
Government funding clause with restriction on political use of funds
This version includes restrictions on political use.
The [Company] agrees not to use any government funds for political activities, including lobbying, political contributions, or advocacy for political causes. The [Company] will immediately report any unauthorized use of funds to the [Government Agency].
Government funding clause with equal distribution of funds
This version includes equal fund distribution.
The total amount of government funds provided will be equally distributed across the project’s phases, unless otherwise agreed upon by both parties. Each phase will be funded based on the completion of the prior phase and the approval of related deliverables.
Government funding clause with public disclosure of funding
This version includes public disclosure.
The [Company] agrees to disclose, in the final report, the total amount of government funding received under this Agreement. The [Investor] may also choose to publicly disclose the funding amount in official publications, as long as the [Company] consents to such disclosures.
Government funding clause with funding for capacity building
This version includes capacity-building funding.
The [Company] agrees to use a portion of the government funding to invest in capacity-building activities, such as training programs for staff, upgrading systems, and enhancing internal processes, to ensure the long-term sustainability of the project.
Government funding clause with change of scope notification
This version includes change of scope notification.
The [Company] must notify the [Government Agency] in writing if any changes are made to the scope of work outlined in [Schedule X]. The notification must include an explanation of the changes and their potential impact on the use of government funds.
Government funding clause with retroactive funding adjustment
This version includes retroactive funding adjustment.
If it is determined that the government funds were allocated incorrectly or the [Company] failed to meet milestones as specified in [Schedule X], the [Government Agency] may adjust funding amounts retroactively and require the [Company] to return any overpayments.
Government funding clause with funding for administrative costs
This version includes funding for administrative costs.
The [Company] may allocate up to [X]% of the government funds for necessary administrative costs directly related to the project, including project management, accounting, and reporting costs, as detailed in the project budget.
Government funding clause with funding for dissemination activities
This version includes funding for dissemination activities.
The [Government Agency] has agreed to provide funds for dissemination activities related to the results of the project. These funds may be used for publications, conferences, or public awareness campaigns to share the outcomes of the project with relevant stakeholders.
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