Southern Africa Development Community Secretariat – Procurement and Grants Policy PART TWO GRANTS CHAPTER I. SCOPE Article 51. Scope of Application (1) This Policy shall apply to all grants financed by SADC Secretariat except when otherwise provided in the legal frame (e.g. convention, contribution agreement, or contract) agreed by the SADC Secretariat. (2) This Policy does not apply to Member States contributions as defined in Articles 26 and 28 of the Treaty. Article 52. Purpose of Grants (1) The purpose of Grants is to allow no profit financial contributions from the budget to a beneficiary in order to finance any of the following: (a) an action or group of actions oriented to achieve a SADC objective. These are action grants and finance specific actions; or (b) the functioning of a body, which pursues an aim of general interest for SADC. These are operational grants and finance a work program. (2) Grants shall be covered by a written agreement (contribution agreement, contract, convention). (3) Budget support actions are not considered grants. (4) SADC Secretariat may award grants for communication activities where, for duly justified reasons, the use of procurement procedures is not appropriate. (5) Grants shall take any of the following forms: (a) reimbursement of a specified proportion of the eligible cost; (b) reimbursement on the basis of unit costs; (c) lump sums; (d) flat rate financing; or (e) a combination of the above (6) When determining the appropriate form of a grant, SADC Secretariat shall take into consideration the beneficiary’s interest and the accounting methods. CHAPTER II. PRINCIPLES Article 53. General principles applicable to Grants (1) Grants shall be subject to the principles of transparency and equal treatment. (2) Grants shall not be cumulative or awarded retrospectively 38