As stipulated in sections 2.1.1 and 2.1.2 of the Guidelines for grant Applicants, if the proposal is selected, the Applicant (the "beneficiary") will act as the only contracting party to the Contracting Authority. The Applicant is in charge of the overall project management and is responsible to the EU for the implementation of the contract and for the use of funds. The Applicant signs the contract, receives funds, reports (both technical and financial) on the implementation of the action and on the use funds. It is up to the Applicant to decide how the funds advanced by the Contracting Authority are allocated and distributed to and between the partners, in line with the objectives of the action. Each partner must provide evidence of expenditure modalities and that they have been indeed incurred to the Applicant, who in turn reports to the Contracting Authority. In this respect it may be advisable that the Applicant and the partners sign an agreement including reporting modalities and an internal budget breakdown between the Applicant and the partners.