Communication campaign Most common issues identified : Personnel costs

1. Communication campaign Mostcommonissuesidentified: Personnelcosts Antonio Requena Fernández FCH JU Financial Officer

2. Personnelcosts Hours dedicated to the project Personnel costs Hourly rate = X

3. Hourlyrate Salary Social security Pensioncontribution Total annualcosts Healthinsurance Total annualcosts Total annualcosts Otherstatutarycosts… Total annualcosts Total annualcosts Hourly rate of an employee = Annualproductivehours

4. Hourlyrate: Productivehours vs The time recordingsystemmustallowkeepingtrack of thisnumber of actual individual productivehours If actual productivehoursexceedsstandard use actual!!! Don’t use billablehours!!!

5. Hourlyrate: Productivehours

6. Overtime Overtimemay be accepted Thehourlyrateapplicabletothese «overtime» hours has to be calculatedseparatelyfromthehourlyrateapplicabletothe normal workinghours • In anyother case: eitherovertimenotpaidorthereisnotcleardistinctionbetween normal and overtimehours • Ifactuallypaidaccordingtobeneficiary’spolicyAND • Ifthereis a systemthatallowstheidentification of normal / overtimehoursworkedfortheproject • Thehourlyrateiscalculated: • Adding in thenumerator: normal costs + «overtime» costs (ifany) • Adding in thedenominator: normal hours + «overtime» hours

7. Hoursdedicatedtotheproject Thegolden rule: Claim ONLY actual hoursworkedontheproject Alternativeevidence Timesheets • Wholeduration of theproject • Mustgivethesamelevel of assurance as thetimesheets • Daily, weeklyormonthlybasis • Authorisedbyproject manager orother superior • To be assessedbytheauditors • Indication of allhoursworked, notonlyproject-relatedtasks • Project-relatedtasks: referencetothe WP/task in theDoW

8. Actual personnelcosts. Someerrors Personnelcosts Annualcosts Hours Personnelcosts = Hours X Productivehours + • Timesheetsnotreliable • Claim of more hoursthandedicatedtotheproject • Claim of more hoursthansubstantiatedbytimesheets

9. Actual personnelcosts. Someerrors Annualcosts Personnelcosts = Hours X Personnelcosts Hours Productivehours - • Timesheetsnotreliable • Claim of lesshoursthandedicatedtotheproject • Claim of lesshoursthansubstantiatedbytimesheets

10. Actual personnelcosts. Someerrors Personnelcosts Annualcosts Personnelcosts = Hours X Productivehours - Productivehours • Use of standard hoursinstead of actual whenthelatter are higher • Use of billablehoursinstead of productivehours

11. Averagepersonnelcosts Acceptabilitycriteriaforaveragepersonnelcosts • Based on the usual cost accounting practice of the beneficiary and consistently applied to their participations in the Framework Programme • Based on the actualpersonnel costs of the beneficiary as registered in its statutory accounts, without estimated or budgeted elements • They excludeany ineligible cost item and any cost claimed under other costs categoriesin order to avoid double funding • Number of productive hours shall correspond to usual management practice of the beneficiary and reflects its actual working standards

12. SME owners SME owners and other natural personwho do notreceive a salary Annual living allowancecorrespondingtotheappropriateresearchcategorypublished in the ‘People’ WorkProgramme of theyear of thepublication of thecalltowhichtheproposal has beensubmitted Country correction factor published in thesamedocument = Hourlyrate X 100 1 575

13. SME owners Example: SME ownerwithoutsalaryfrom Austria with 5 years of experience at the time of deadline of submission of a proposal 2011 Use thetoolavailableat theParticipant portal 58 500 €/year 106.9 = 39.71 €/h X 100 1 575