Contract Once the youth exchange has been approved, a financial agreement (contract) with the beneficiary will govern the use of the Community funds. The sending and host groups undertake to fulfill their contractual obligations. They should implement the project according to what is set out in their application. It is the shared responsibility of the host and sending groups to implement the project as specified in the application and to ensure evaluation and follow-up. The sending group is responsible for justifying travel costs and, together with the host group, the costs of preparing the participants and planning the project.

The European Commission, or a National Agency, may carry out on-site visits to check that all contractual obligations are being properly fulfilled.

If, in the course of the project, unforeseen circumstances disrupt its implementation, the partners should immediately contact their National Agencies, or the European Commission, to make appropriate arrangements.

Failure to carry out the project as agreed could lead to the National Agency, or the European Commission, recovering part, or all, of the grant.

Insurance

Both sending and host groups are obliged to arrange respectively for their group's insurance. This must cover illness, accident, death, permanent disability and repatriation in case of serious illness or accident. Insurance must also cover civil liability and the loss of identification and travel documents. This insurance must be complementary to cover under national social security systems, if the young person benefits from this by virtue of an E 111 or similar form.

Insurance contracted by the European Commission is recommended to both sending and host groups, particularly those sending organizations running mobility activities in the context of third country cooperation. However, they may also deal with other insurance companies, as long as the quality of the cover is the same.

Additional information regarding the insurance recommended by the European Commission is available from the National Agencies or National Coordinators.