diff --git a/cadence/contracts/FlowALPRebalancerv1.cdc b/cadence/contracts/FlowALPRebalancerv1.cdc
index b4a50495..c65756a0 100644
--- a/cadence/contracts/FlowALPRebalancerv1.cdc
+++ b/cadence/contracts/FlowALPRebalancerv1.cdc
@@ -283,8 +283,8 @@ access(all) contract FlowALPRebalancerv1 {
 
         /// Update schedule and fee config. Cancels existing scheduled transactions and schedules the next run with the new config.
         access(Configure) fun setRecurringConfig(_ config: {RecurringConfig}) {
-            self.recurringConfig = config
             self.cancelAllScheduledTransactions()
+            self.recurringConfig = config
             let nextScheduledTimestamp = self.scheduleNextRebalance()
             if nextScheduledTimestamp == nil {
                 panic("Failed to schedule next rebalance after setting recurring config")
diff --git a/cadence/tests/paid_auto_balance_test.cdc b/cadence/tests/paid_auto_balance_test.cdc
index 989aa44a..e55440c4 100644
--- a/cadence/tests/paid_auto_balance_test.cdc
+++ b/cadence/tests/paid_auto_balance_test.cdc
@@ -47,14 +47,14 @@ access(all) fun setup() {
     let evts = Test.eventsOfType(Type<FlowALPRebalancerv1.CreatedRebalancer>())
     let paidRebalancerUUID = evts[0] as! FlowALPRebalancerv1.CreatedRebalancer
     createSupervisor(
-        signer: userAccount, 
+        signer: userAccount,
         cronExpression: "0 * * * *",
         cronHandlerStoragePath: cronHandlerStoragePath,
         keeperExecutionEffort: 1000,
         executorExecutionEffort: 1000,
         supervisorStoragePath: supervisorStoragePath
     )
-    
+
     snapshot = getCurrentBlockHeight()
 }
 
@@ -167,6 +167,44 @@ access(all) fun test_fix_reschedule_no_funds() {
     Test.assertEqual(2, evts.length)
 }
 
+// FLO-17 regression: when setRecurringConfig is called, cancel must use the OLD config's funder
+// so that pre-paid fees are refunded to the original payer, not the new funder.
+access(all) fun test_flo17_refund_goes_to_old_funder_not_new_funder() {
+    // The rebalancer was created in setup() with protocolAccount as the txFunder.
+    // A scheduled transaction with fees pre-paid from protocolAccount already exists.
+    let createdEvts = Test.eventsOfType(Type<FlowALPRebalancerPaidv1.CreatedRebalancerPaid>())
+    Test.assertEqual(1, createdEvts.length)
+    let e = createdEvts[0] as! FlowALPRebalancerPaidv1.CreatedRebalancerPaid
+
+    // Create a new funder account — this should NOT receive the refund for previously paid fees.
+    let newFunderAccount = Test.createAccount()
+    let _ = mintFlow(to: newFunderAccount, amount: 100.0)
+
+    let oldFunderBalanceBefore = getBalance(address: protocolAccount.address, vaultPublicPath: /public/flowTokenBalance)!
+    let newFunderBalanceBefore = getBalance(address: newFunderAccount.address, vaultPublicPath: /public/flowTokenBalance)!
+
+    // Switch the recurring config to use newFunderAccount as the fee payer going forward.
+    // This calls setRecurringConfig, which cancels the existing scheduled tx and refunds its fee.
+    changePaidFunder(
+        adminSigner: protocolAccount,
+        newFunderSigner: newFunderAccount,
+        uuid: e.uuid,
+        interval: 100,
+        expectFailure: false
+    )
+
+    let oldFunderBalanceAfter = getBalance(address: protocolAccount.address, vaultPublicPath: /public/flowTokenBalance)!
+    let newFunderBalanceAfter = getBalance(address: newFunderAccount.address, vaultPublicPath: /public/flowTokenBalance)!
+
+    // The pre-paid fee must be refunded to the OLD funder (protocolAccount), not the new one.
+    Test.assert(
+        oldFunderBalanceAfter > oldFunderBalanceBefore,
+        message: "FLO-17: old funder should receive refund on config change, balance before=\(oldFunderBalanceBefore) after=\(oldFunderBalanceAfter)"
+    )
+    // New funder must not receive a windfall
+    Test.assert(newFunderBalanceBefore >= newFunderBalanceAfter)
+}
+
 access(all) fun test_change_recurring_config_as_user() {
     var evts = Test.eventsOfType(Type<FlowALPRebalancerv1.CreatedRebalancer>())
     Test.assertEqual(1, evts.length)
diff --git a/cadence/tests/test_helpers_rebalance.cdc b/cadence/tests/test_helpers_rebalance.cdc
index 381998d7..6eaed8b2 100644
--- a/cadence/tests/test_helpers_rebalance.cdc
+++ b/cadence/tests/test_helpers_rebalance.cdc
@@ -39,6 +39,24 @@ fun addPaidRebalancerToSupervisor(
     Test.expect(setRes, Test.beSucceeded())
 }
 
+access(all)
+fun changePaidFunder(
+    adminSigner: Test.TestAccount,
+    newFunderSigner: Test.TestAccount,
+    uuid: UInt64,
+    interval: UInt64,
+    expectFailure: Bool
+) {
+    let txn = Test.Transaction(
+        code: Test.readFile("./transactions/rebalancer/change_paid_funder.cdc"),
+        authorizers: [adminSigner.address, newFunderSigner.address],
+        signers: [adminSigner, newFunderSigner],
+        arguments: [uuid, interval]
+    )
+    let result = Test.executeTransaction(txn)
+    Test.expect(result, expectFailure ? Test.beFailed() : Test.beSucceeded())
+}
+
 access(all)
 fun changePaidInterval(
     signer: Test.TestAccount,
diff --git a/cadence/tests/transactions/rebalancer/change_paid_funder.cdc b/cadence/tests/transactions/rebalancer/change_paid_funder.cdc
new file mode 100644
index 00000000..3831b6c0
--- /dev/null
+++ b/cadence/tests/transactions/rebalancer/change_paid_funder.cdc
@@ -0,0 +1,40 @@
+import "FungibleToken"
+import "FungibleTokenConnectors"
+import "FlowALPRebalancerv1"
+import "FlowALPRebalancerPaidv1"
+import "FlowToken"
+import "FlowTransactionScheduler"
+
+// Changes the recurring config for a paid rebalancer, using a different account as txFunder.
+// `admin` must hold FlowALPRebalancerPaidv1.Admin; `newFunder` provides the new fee vault.
+transaction(uuid: UInt64, interval: UInt64) {
+    let adminCap: Capability<&FlowALPRebalancerPaidv1.Admin>
+    let newFunderVaultCap: Capability<auth(FungibleToken.Withdraw) &FlowToken.Vault>
+
+    prepare(admin: auth(IssueStorageCapabilityController) &Account, newFunder: auth(IssueStorageCapabilityController) &Account) {
+        self.adminCap = admin.capabilities.storage.issue<&FlowALPRebalancerPaidv1.Admin>(
+            FlowALPRebalancerPaidv1.adminStoragePath
+        )
+        assert(self.adminCap.check(), message: "Invalid admin capability")
+
+        self.newFunderVaultCap = newFunder.capabilities.storage.issue<auth(FungibleToken.Withdraw) &FlowToken.Vault>(
+            /storage/flowTokenVault
+        )
+        assert(self.newFunderVaultCap.check(), message: "Invalid new funder vault capability")
+    }
+
+    execute {
+        let sinkSource = FungibleTokenConnectors.VaultSinkAndSource(
+            min: nil, max: nil, vault: self.newFunderVaultCap, uniqueID: nil
+        )
+        let config = FlowALPRebalancerv1.RecurringConfigImplv1(
+            interval: interval,
+            priority: FlowTransactionScheduler.Priority.Medium,
+            executionEffort: 1000,
+            estimationMargin: 1.05,
+            forceRebalance: false,
+            txFunder: sinkSource
+        )
+        self.adminCap.borrow()!.updateRecurringConfig(uuid: uuid, recurringConfig: config)
+    }
+}