{"id":6215,"date":"2026-04-14T15:49:19","date_gmt":"2026-04-14T13:49:19","guid":{"rendered":"https:\/\/ak-law.pl\/blog\/demand-for-repayment-of-funding-what-does-it-mean-and-how-should-you-respond\/"},"modified":"2026-09-23T11:05:17","modified_gmt":"2026-09-23T09:05:17","slug":"demand-for-repayment-of-funding-what-does-it-mean-and-how-should-you-respond","status":"publish","type":"post","link":"https:\/\/ak-law.pl\/en\/blog\/demand-for-repayment-of-funding-what-does-it-mean-and-how-should-you-respond\/","title":{"rendered":"The authority demands repayment of a grant \u2013 what does such a letter mean?"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Where an authority demands repayment of a grant awarded from the state budget, the starting point is <a href=\"https:\/\/isap.sejm.gov.pl\/isap.nsf\/DocDetails.xsp?id=wdu20091571240\" target=\"_blank\" rel=\"noopener\">Article 169 of the Public Finance Act<\/a>. This provision governs the repayment of grants used contrary to their intended purpose, received unduly or received in an excessive amount. <\/p>\n\n<p class=\"wp-block-paragraph\">In practice, a demand for repayment often follows a project control or the settlement of the grant. What matters most in such cases is which circumstances the authority regarded as grounds for repayment, when they were identified and whether the funding recipient challenged the earlier control findings. <\/p>\n\n<p class=\"wp-block-paragraph\">Different rules apply to the repayment of European funds under Article 207 of the Public Finance Act. I discuss that mechanism separately in the article on a <a href=\"https:\/\/ak-law.pl\/en\/blog\/do-i-have-to-repay-the-funding-after-receiving-a-demand-for-repayment\/\" data-type=\"post\" data-id=\"4112\">demand for repayment of funding<\/a>. <\/p>\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>When can a demand for repayment of a grant arise?<\/strong><\/h2>\n\n<p class=\"wp-block-paragraph\">A demand for repayment of a grant most often follows a <a href=\"https:\/\/ak-law.pl\/en\/blog\/when-does-a-project-control-lead-to-repayment-of-funding\/\" data-type=\"post\" data-id=\"4140\">project control<\/a>. During the control, the authority examines whether the funds were used for their intended purpose, whether the project was implemented in accordance with the agreement and whether the funding recipient fulfilled the obligations imposed on it. <\/p>\n\n<p class=\"wp-block-paragraph\">Article 169(1) of the Public Finance Act provides for repayment of a grant awarded from the state budget in three cases:  <\/p>\n\n<ul class=\"wp-block-list\">\n<li>use of the grant for purposes inconsistent with its intended purpose,<\/li>\n\n\n\n<li>receipt of the grant without entitlement,<\/li>\n\n\n\n<li>receipt of the grant in an excessive amount.<\/li>\n<\/ul>\n\n<p class=\"wp-block-paragraph\">Regardless of the grounds set out in Article 169 of the Public Finance Act, the obligation to repay a grant may also arise from the termination of the grant agreement. If the agreement provides for termination with immediate effect where the funding recipient fails to perform its fundamental obligations, such termination may result in a demand for repayment of the funds disbursed.  <\/p>\n\n<p class=\"wp-block-paragraph\">In practice, this may concern, among other things, cases involving: <\/p>\n\n<ul class=\"wp-block-list\">\n<li>failure to respond to requests from the authority,<\/li>\n\n\n\n<li>failure to submit the required reports,<\/li>\n\n\n\n<li>refusal to submit to a project control.<\/li>\n<\/ul>\n\n<p class=\"wp-block-paragraph\">In such cases, the scope of the consequences depends on the terms of the agreement and the grounds on which it was terminated.<\/p>\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Nature of documents issued following a project control<\/strong><\/h2>\n\n<p class=\"wp-block-paragraph\">After completion of a project control, a document setting out the control findings is prepared \u2014 in practice referred to as a control report, <a href=\"https:\/\/ak-law.pl\/blog\/czy-informacja-pokontrolna-oznacza-zwrot-dofinansowania\/\" data-type=\"post\" data-id=\"4097\">post-control report<\/a> or control statement, depending on the procedure \u2014 against which the funding recipient may submit objections. This is the stage at which the factual findings may be challenged and additional explanations or evidence may be presented. <\/p>\n\n<p class=\"wp-block-paragraph\">After the objections have been considered, the authority prepares a document summarising the project control. It contains the control findings in their final form and closes the control procedure. At that stage, the funding recipient no longer has an opportunity to challenge those findings again within the control procedure itself.  <\/p>\n\n<p class=\"wp-block-paragraph\">A post-control document is not an administrative decision and does not yet determine, in a binding manner, the amount to be repaid. Although in practice the question often arises whether an appeal or complaint may be lodged against it, it should be emphasised that the applicable provisions do not provide for such a remedy. <\/p>\n\n<p class=\"wp-block-paragraph\">This does not mean, however, that the significance of the post-control document is merely formal. It is of considerable practical importance, as the findings it contains often form the basis for a subsequent demand for repayment.  <\/p>\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>The significance of the project control stage for administrative proceedings<\/strong><\/h2>\n\n<p class=\"wp-block-paragraph\">In cases governed by Article 169 of the Public Finance Act, it is particularly important to determine when the \u201ccircumstances\u201d referred to in paragraph 1 of that provision were established. It is from that point that the statutory 15-day period for repayment of the grant begins to run. At first glance, it might appear that such circumstances are established already at the project control stage, in particular when the post-control document is prepared.    <\/p>\n\n<p class=\"wp-block-paragraph\">The case law of the administrative courts indicates, however, that different situations must be distinguished. As the Voivodeship Administrative Court in Gorz\u00f3w Wielkopolski has held, where the control findings are challenged by the funding recipient, the post-control document cannot be treated as the \u201cestablishment of circumstances\u201d within the meaning of Article 169(1) of the Public Finance Act. In such a situation, administrative proceedings must be conducted, in which the authority makes its own findings and issues a decision. Where the control findings are disputed, the authority must therefore make its own findings in the administrative proceedings, and the decision issued at the conclusion of those proceedings determines the amount to be repaid and the date from which interest accrues.     <\/p>\n\n<p class=\"wp-block-paragraph\">This means that a post-control document \u2014 particularly where its findings are disputed \u2014 cannot replace an administrative decision or finally determine the repayment obligation.<\/p>\n\n<p class=\"wp-block-paragraph\">At the same time, the practical importance of the project control findings should not be underestimated. They often determine the direction of the subsequent proceedings and frequently form the basis on which the authority formulates its repayment claim. Whether those findings are ultimately upheld, however, depends on the outcome of the administrative proceedings. <\/p>\n\n<p class=\"wp-block-paragraph\">It is also worth referring to a resolution of the Regional Chamber of Audit in Kielce, which held that a post-control statement does not constitute a legally binding obligation to repay a grant. If the funding recipient does not make a voluntary repayment, the matter should be resolved by way of an administrative decision, which only then forms the basis for enforcement of the amount due. <\/p>\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Can the authority demand repayment of a grant without a prior project control?<\/strong><\/h2>\n\n<p class=\"wp-block-paragraph\">In practice, a project control is the most common starting point in cases concerning repayment of grants, but it is not a necessary prerequisite. As the Supreme Administrative Court has held, omitting the project control stage and relying on evidence gathered directly in administrative proceedings does not prevent the authority from issuing a decision concerning repayment of the grant. <\/p>\n\n<p class=\"wp-block-paragraph\">This means that the absence of a prior project control does not preclude the issuance of a decision specifying the amount to be repaid.<\/p>\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>When does the obligation to repay arise?<\/strong><\/h2>\n\n<p class=\"wp-block-paragraph\">Under the Public Finance Act, the obligation to repay a grant arises where one of the grounds set out in Article 169 of the Act applies, namely where the grant has been used contrary to its intended purpose, received unduly or received in an excessive amount. <\/p>\n\n<p class=\"wp-block-paragraph\">It is accepted in the case law that the obligation to repay a grant arises by operation of law. This means that the repayment decision does not create the obligation, but determines its scope and enables its enforcement. In administrative proceedings (i.e. repayment proceedings), the authority makes its own findings and determines whether the grant was used contrary to its intended purpose, received unduly or received in an excessive amount \u2014 in other words, whether any of the grounds set out in Article 169 of the Public Finance Act apply \u2014 and what amount is subject to repayment.  <\/p>\n\n<p class=\"wp-block-paragraph\">As the Voivodeship Administrative Court in Gorz\u00f3w Wielkopolski has observed, where the funding recipient does not voluntarily settle the grant and challenges the project control findings, it is the authority\u2019s decision that determines in a binding manner the amount to be repaid.<\/p>\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>What is the purpose of a demand for repayment of funding?<\/strong><\/h2>\n\n<p class=\"wp-block-paragraph\">Article 169 of the Public Finance Act does not provide for a demand for repayment as a separate, statutorily regulated stage of the proceedings. The provision states that a grant must be repaid within 15 days from the date on which the circumstances justifying repayment are established.  <\/p>\n\n<p class=\"wp-block-paragraph\">In practice, the authority may send the funding recipient a letter specifying the basis for the demand, the amount to be repaid and the repayment deadline. Such a letter is not an administrative decision. If repayment is not made, Article 169(6) of the Public Finance Act provides for the issuance of a decision specifying the amount to be repaid and the date from which interest is calculated.    <\/p>\n\n<p class=\"wp-block-paragraph\">After receiving a demand, it is particularly important to determine which event the authority regards as the \u201cestablishment of circumstances\u201d referred to in Article 169(1) of the Public Finance Act, from which date it calculates the repayment period, and how it determined the amount to be repaid and the interest.  <\/p>\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Summary<\/strong><\/h2>\n\n<p class=\"wp-block-paragraph\">Cases concerning repayment of grants usually follow a similar course: from the authority\u2019s findings \u2014 most often made following a project control \u2014 through the stage of explanations and a demand for repayment, to administrative proceedings concluded by a decision.<\/p>\n\n<p class=\"wp-block-paragraph\">The most common mistake is either to treat the project control findings as the final determination or, conversely, to ignore them. In practice, it is at this stage that the material which will later form the basis of the administrative proceedings is largely shaped. <\/p>\n\n<p class=\"wp-block-paragraph\">A letter containing a demand for repayment of a grant should first be assessed against the appropriate legal basis. The key issue is to determine what the demand is based on, whether it concerns one of the situations specified in Article 169 of the Public Finance Act, or instead the settlement of unused funds under Article 168 of the Act. If you have received a letter indicating that a grant must be repaid and are unsure of its legal nature or what further steps may be available, it is worth verifying this before taking action.    <\/p>\n\n<p class=\"wp-block-paragraph\">It may seem obvious, but letters from an institution should not be left unanswered, even where their content raises serious doubts or objections. In practice, failure to respond often means that the authority bases its subsequent actions solely on its own findings, while the matter moves to the next stage, such as termination of the agreement and proceedings concerning repayment of the grant. <\/p>\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><em>Have you received a demand for repayment of a grant, a post-control document or a decision concerning repayment? See the matters in which I support recipients of public funding under <a href=\"https:\/\/ak-law.pl\/en\/scope-of-services\/project-controls-and-repayment-of-funding\/\" data-type=\"page\" data-id=\"4348\">Services \u2013 project controls and repayment of grants.<\/a> <\/em><\/p>\n<\/blockquote>\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Is an authority demanding repayment of a grant from the state budget? I explain when Article 169 of the Public Finance Act applies, what significance control findings have and what to check after receiving such a letter.  <\/p>\n","protected":false},"author":1,"featured_media":6508,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[91],"tags":[145,171,99,98],"class_list":["post-6215","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-financial-corrections-and-repayment-of-funding","tag-demand-for-repayment","tag-demand-for-repayment-2","tag-project-control","tag-repayment-of-funding-2"],"_links":{"self":[{"href":"https:\/\/ak-law.pl\/en\/wp-json\/wp\/v2\/posts\/6215","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ak-law.pl\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ak-law.pl\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ak-law.pl\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ak-law.pl\/en\/wp-json\/wp\/v2\/comments?post=6215"}],"version-history":[{"count":7,"href":"https:\/\/ak-law.pl\/en\/wp-json\/wp\/v2\/posts\/6215\/revisions"}],"predecessor-version":[{"id":6626,"href":"https:\/\/ak-law.pl\/en\/wp-json\/wp\/v2\/posts\/6215\/revisions\/6626"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ak-law.pl\/en\/wp-json\/wp\/v2\/media\/6508"}],"wp:attachment":[{"href":"https:\/\/ak-law.pl\/en\/wp-json\/wp\/v2\/media?parent=6215"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ak-law.pl\/en\/wp-json\/wp\/v2\/categories?post=6215"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ak-law.pl\/en\/wp-json\/wp\/v2\/tags?post=6215"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}