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Seminar for Beneficiaries 13-14 August Rēzekne, Latvia. Eligibility of costs. Joint Technical Secretariat. Eligible periods. Only costs made during the project implementation period a re eligible. 2. Eligible periods.

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Eligibility of costs

Seminar for Beneficiaries

13-14 August

Rēzekne, Latvia

Eligibility of costs

Joint Technical Secretariat

Eligible periods
Eligible periods

Only costs made during the projectimplementationperiodare eligible


Eligible periods1
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


Main eligibility rules
Main eligibility rules

In order to be eligible, costs have to be:

  • Shownin the approvedFullApplicationForm

  • Comply with the visibility requirements

  • Necessary for the implementation of the project


Main eligibility rules1
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


Main budgetary principles
Main budgetary principles

The project budget has to be in line with the principles of economy, efficiencyand effectiveness

  • The principle of economyrequires 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


Main budgetary principles1
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


Ineligible costs
Ineligible costs

  • Debts and provisions for losses or debts

  • Interest owed

  • Items already financed in another framework (double financing)

  • Purchases of land or buildings


Ineligible costs1
Ineligible costs

  • Currency exchange losses

  • Taxes (exceptemploymenttaxes, social security charges), including recoverable VAT

  • Credits (loans) to third parties

  • Fines, financial penalties and expenses of litigation


Human resources

Includes only the cost of the staff of the Beneficiary and the project partner(s) assigned directly to the projectonbaseofemployment (labour) contract– salary (including taxes, health insurance and other remuneration related costs due in the respective country)


Human resources1

  • 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


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)


Travel costs1

  • 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.



Travel costs2


  • Invoice from travel agency, including proof of payment;

  • Original transportation tickets (plane, train, boat),

  • Boarding passes,


Travel costs3

  • 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”


Equipment and supplies
Equipment and supplies

The purchase or rental of equipment and supplies (new or used) is eligible if it is specifically neededfor 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


Equipment and supplies1
Equipment and supplies

  • All equipment must be procured according to the nationallegislation

  • 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


Equipment and supplies2
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 (atleast 3 proposalsmustbecompared)

  • Proof of delivery

  • Invoice from contractor and proof of payment


Direct local office costs
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)


Direct local office costs1
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

  • 20

    Direct local office costs2
    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


    Other costs and external services
    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

    • Visibilityactivities

    • Bankservices

    • Externalexperts

    • Otherservices


    Other costs and external services1
    Other costs and external services

    The Beneficiary and the project partner(s) as well as associates are not allowed to sub-contract each other


    Other costs and external services2
    Other costs and external services

    Supporting documents:

    • Documents related to the award procedure

    • Proof of delivery of services

    • Invoices from contractors and proof of payment


    Other costs and external services3
    Other costs and external services

    Supporting documents:

    • Materials published

    • Proof of respect of the rules for visibility

    • Additional specific to action documents



    • Works and services related to construction, renovation, installation of infrastructure aswellas supervision costs (according to national legislation)

    • Investments co-financed by the Programme should be aimed at public use during the project implementation, i.e. their use can not be limited only to the partners of the project



    Relevant project partner has to be the owner of the land and/or have the building rights on the land




    • Documents related to the award procedure

    • Proof of infrastructureworkscompleted

    • Invoices from contractors and proof of payment




    • Proof of respect of the rules for visibility (onthesight)

    • Proof of respect of the rule of

      nationality and origin (for materials)


    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


    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


    In kind1

    • 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

    • Ifusingown premises – organisation’s order must be prepared, stating general rent cost for the premises.


    Supporting documents


    Supporting documents1


    Supporting documents2


    Contingency reserve
    Contingency reserve

    The contingency reserve can only be used in case of unforeseeable circumstances and with thewritten authorisation of the Joint ManagingAuthority


    10 rule
    10% rule

    Up to 10% of the project's total budget can be spent forimplementation of the project soft activities outside the Programme area:

    • Costshave to beclearlyindicated, specifiedandjustifiedinreports


    Double financing
    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


    Jts contacts
    JTS contacts

    Thank You for Your attention!


    Email:[email protected]

    Phone: +371 6750 9524

    Address: Ausekla Str. 14-3, Riga