Transcript United by borders theme

Seminar for Beneficiaries
13-14 August
Rēzekne, Latvia
Eligibility of costs
Joint Technical Secretariat
Eligible periods
Only costs made during the project
implementation period are eligible
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Eligible periods
 The only exception are costs relating to
final reports, expenditure verification
and evaluation of the project, which can
be incurred not later than the date of
submission of the final report
 Preparatory costs (expenditures before
project starting date) are ineligible
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Main eligibility rules
In order to be eligible, costs have to be:
Shown in the approved Full Application
Form
Comply with the visibility requirements
 Necessary for the implementation of
the project
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Main eligibility rules
Identifiable and verifiable, in particular
being recorded in the accounting
records
Incurred in compliance with the relevant
procurement procedures
Reasonable, justified and comply with
the requirements of sound financial
management
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Main budgetary principles
The project budget has to be in line with the
principles of economy, efficiency and
effectiveness
The principle of economy requires that
the resources used by the institution for
the pursuit of its activities shall be made in
due time, in appropriate quantity and
quality and at the best price
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Main budgetary principles
The principle of efficiency is concerned
with the best relationship between
resources employed and results achieved
The principle of effectiveness is
concerned with attaining the specific
objectives set and achieving the intended
results
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Ineligible costs
Debts and provisions for losses or
debts
Interest owed
Items already financed in another
framework (double financing)
Purchases of land or buildings
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Ineligible costs
 Currency exchange losses
 Taxes (except employment taxes, social
security charges), including recoverable VAT
 Credits (loans) to third parties
 Fines, financial penalties and expenses of
litigation
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Human resources
Includes only the cost of the staff of the
Beneficiary and the project partner(s)
assigned directly to the project on base
of employment (labour) contract –
salary (including taxes, health insurance
and other remuneration related costs
due in the respective country)
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Human resources
Pay attention:
Please do not exceed rates and
workload stated in the FAF
Prepare copy of contracts, orders and
other supporting documents
Start filling-in the timesheet from the
very beginning
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Travel costs
 Costs can include - flight, train and bus tickets
(economy class), fuel for a car, rent of vehicle for
travel,
visa
and
travel
insurance
costs,
accommodation
(hotel
expenses),
local
transportation within the place of mission
Only costs for staff and participants can be
covered
Subsistence costs may be paid directly to travel
agencies (i.e. the hotel) or to the persons
(reimbursement sheets or pay slips)
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Travel costs
Costs may not exceed those normally borne by
the Beneficiary or partner;
Any flat-rate for the subsistence (Daily
allowance, per diems) must be in accordance
with national legislation and not exceed the
rates set out in the project budget and
published by the European Commission at the
time of signing the contract.
http://ec.europa.eu/europeaid/work/procedure
s/implementation/per_diems/index_en.htm
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Travel costs
Supporting documents:
Invoice from travel agency, including
proof of payment;
Original transportation tickets (plane,
train, boat),
Boarding passes,
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Travel costs
Meeting or event related documents: agenda,
list
of
participants,
materials,
pictures,
organisation's internal documents (orders etc.)
NB! Subsistence costs under “Human resources”
may be paid to staff or to participants of seminars
and conferences. Any subsistence cost to external
experts has to be included in the contract of
particular expert under Budget Heading 5 “Other
costs and external services”
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Equipment and supplies
The purchase or rental of equipment and
supplies (new or used) is eligible if it is
specifically needed for the purposes of
the project
The cost of related services, such as
transportation or installation is also
eligible. The costs have to correspond to
market rates
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Equipment and supplies
All equipment must be procured
according to the national legislation
Every co-financed piece of equipment
must comply with the information and
publicity rules
NB! The production equipment, which is
used for the profit generation is not
eligible under the Programme
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Equipment and supplies
Supporting documents:
Documents related to the award
procedure, including a contract and a
purchase order. They have to give
evidence of the market rates (at least 3
proposals must be compared)
Proof of delivery
Invoice from contractor and proof of
payment
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Direct local office costs
Costs which are invoiced directly to the
project - costs of the local office in case
a separate office is rented for the needs
of the project, office running and
transport costs (rent or lending of a car
used by the project on daily base)
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Direct local office costs
 The activity reports have to indicate which is the
staff working in the local office and its tasks have
to correspond to its cost. The cost has to be
reasonable and according to the principle of
efficiency
 Rent of a separate office is rather exceptional and
its need has to be clearly justified
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Direct local office costs
Supporting documents:
Documents related to the award procedure
(procurement)
Invoices from contractors and proof of
payment
The cost of the headquarters of the
beneficiary and partners has to be
financed through the administrative
costs
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Other costs and external services
All services/works sub-contracted to an external
service provider based on the applicable public
procurement procedure, such as:
 Audit
 Visibility activities
 Bank services
 External experts
 Other services
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Other costs and external services
The Beneficiary and the project partner(s)
as well as associates are not allowed to
sub-contract each other
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Other costs and external services
Supporting documents:
Documents
procedure
related
to
the
award
Proof of delivery of services
Invoices from contractors and proof of
payment
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Other costs and external services
Supporting documents:
Materials published
Proof of respect of the rules for visibility
Additional specific to action documents
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Infrastructure
Works and services related to construction,
renovation, installation of infrastructure as
well as supervision costs (according to
national legislation)
Investments
co-financed
by
Programme should be aimed at public
during the project implementation,
their use can not be limited only to
partners of the project
the
use
i.e.
the
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Infrastructure
Relevant project partner has to be the
owner of the land and/or have the
building rights on the land
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Infrastructure
Supporting documents:
Documents related to the award
procedure
Proof of infrastructure works completed
Invoices from contractors and proof of
payment
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Infrastructure
Supporting documents:
Proof of respect of the rules for visibility
(on the sight)
Proof of respect of the rule of
nationality and origin (for materials)
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Administrative costs
Indirect administrative costs are related to
office running for the purposes of the
project (electricity, heating, consumables,
Internet costs…)
Indirect costs are eligible if they do not
include costs assigned to another heading
of the budget
The flat rate does not need to be
supported by accounting documents
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In-kind
Unpaid voluntary work and use of the
Beneficiary’s and/or the project partner’s
own premises for implementation of the
project activities (max 10% from the total
project budget and not exceed own funds).
Unpaid voluntary work must be:
essential to the project
based on a written agreement
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In-kind
 proved by timesheets indicating the hours worked
for the project and signed by the volunteer and
his/her supervisor
 minimum monthly or hourly official national net
salary level is followed when calculating the value
of in-kind contribution
 If using own premises – organisation’s order must
be prepared, stating general rent cost for the
premises.
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Supporting documents
Proof of procurement procedures such as
tendering documents, bids from tenderers and
evaluation reports
Proof of commitments such as contracts and order
forms
Proof of delivery of services such as approved
reports, time sheets, transport
tickets , proof of attending seminars, conferences
and training courses (including
relevant documentation and material obtained,
certificates), etc
Proof of receipt of goods such as delivery slips from
suppliers
Proof of completion of works, such as acceptance
certificates
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Supporting documents
Proof of purchase such as invoices and receipts
Proof of payment such as bank statements, debit
notices, proof of settlement by
the contractor
Proof that taxes and/or VAT that have been paid
cannot actually be reclaimed
For fuel and oil expenses, a summary list of the
distance covered, the average
consumption of the vehicles used, fuel costs and
maintenance costs
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Supporting documents
Yes/No
Staff and payroll records such as
contracts, salary statements, time
sheets, details of remuneration paid,
duly substantiated by the person in
charge locally, broken down into gross
salary,
social
security
charges,
insurance and net salary.
Proof of rules of nationality and origin
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Contingency reserve
The contingency reserve can only
be used in case of unforeseeable
circumstances and with the written
authorisation of the Joint Managing
Authority
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10% rule
Up to 10% of the project's total
budget
can
be
spent
for
implementation of the project soft
activities outside the Programme
area:
Costs have to be clearly indicated,
specified and justified in reports
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Double financing
No single project and activity may be
financed by more than one European
Community grant
The project activities duplicated those
already financed from any EU fund,
international, national, regional and/or
local funds are not eligible as this is
considered double-financing
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JTS contacts
Thank You for Your attention!
www.estlatrus.eu
Email: [email protected]
Phone: +371 6750 9524
Address: Ausekla Str. 14-3, Riga
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