Eligibility of costs INTERREG III B CADSES Katowice, 09.12.2004r.

1. Eligibility of costsINTERREG III B CADSESKatowice, 09.12.2004r. Implementing Authority for Cross Border Co-operation Programme Phare Wspólna Street 2/4 00-926 Warszawa Poland

2. Implementing Authority for Cross Border Co-operation Programme Phare • EU funds administrated by CBC IA • Pre-accession funds • Phare CBC and JHA • including investment projects as well as Small Project Funds- Euroregions • Phare SSG • Schengen Facility • European Refugee Fund

3. Implementing Authority for Cross Border Co-operation Programme Phare • INTERREG Office Poland • INTERREG III A • Joint Technical Secretariat for Poland-SlovakRepublic • Joint Technical Secretariat for Poland-Ukraine-Bielarus • INTERREG III B & C, EPSON, INTERACT • First level Control Unit

4. INTERREG III B Eligibility of expenses • Commission Regulation (EC) No 448/2004 of 10 March 2004 amending Regulation (EC) No 1685/2000 laying down detailed rules for the implementation of Council Regulation (EC) No 1260/1999 as regards the eligibility of expenditure of operations co-financed by the Structural Funds and withdrawing Regulation (EC) No 1145/2003

5. INTERREG III B Eligibility of expenses • Commission Regulation (EC) No 448/2004 Rule No 1: Expenditure actually paid- in cash Exceptions: depreciation, contributions in kind, overheads

6. INTERREG III B Eligibility of expenses • Commission Regulation (EC) No 448/2004 Depreciation of real estate or equipment -direct link with objectives of the project • No national or community grant towards purchase • Calculated according to national accountancy rules • Costs limited to co-financing period

7. INTERREG III B Eligibility of expenses • Commission Regulation (EC) No 448/2004 In kind contribution: • land or buildings • equipment or materials • research or professional activity • unpaid voluntary work • value can be independently assessed and audited • land or buildings, independent qualified valuer • unpaid voluntary work- national or local fees

8. INTERREG III B Eligibility of expenses • Commission Regulation (EC) No 448/2004 Overheads: • eligible expenditure if based on real costs, • must relate to the implementation of the project, • allocated to the project pro-rata according to a duly justified, fair and equitable method. Co-financing from ERDF may no exceed 75% for Polish Partners, excluding contributions in kind.

9. INTERREG III B Eligibility of expenses • Commission Regulation (EC) No 448/2004 Co-financing from ERDF may no exceed 75% for Polish Partners, excluding contributions in kind and VAT.

10. INTERREG III B Eligibility of expenses • Commission Regulation (EC) No 448/2004 Rule No 2: Accounting Treatment of Receipts Revenue received is deducted from eligible expenditure

11. INTERREG III B Eligibility of expenses • Commission Regulation (EC) No 448/2004 Rule No 3: Financial and other charges and legal expenses Ineligible: debit interests, foreign exchange commissions and losses, fines, financial penalties, expenses of litigation Bank charges on accounts eligible only if co-financing requires opening a separate account Legal fees, notary fees, cost of technical or financial expertise, accountancy or audit costs- eligible if they are directly linked to the project or required by MA There are no audit costs (first-level control) for Polish partners

12. INTERREG III B Eligibility of expenses • Commission Regulation (EC) No 448/2004 Rule No 7: VAT and other taxes and charges VAT is eligible only if it cannot be reclaimed by a final beneficiary For audit purposes: Partners have to certify that VAT cannot be reclaimed referring to proper law regulations Co-financing from ERDF may no exceed 75% for Polish Partners, excluding contributions in kind and VAT.

13. INTERREG III BBudget Lines • Project co-ordination: • direct administration costs related to the overall management of the project and not calculated under overhead costs, • documents: invoices or other documents proving that the payment was effected, • e.g. legal fees, fees for bank guarantees, insurance fees, courier services, etc.

14. INTERREG III B Budget Lines • Personnel (including overhead costs): • fees of the Project Partners’ staff paid in the context of the project based on the actual cost of employing a person including social contributions and payroll taxes, • documents: timesheets, payrolls, bank statements or other documents proving that the payment was effected, • external staff must be budgeted under “External expertise and audit”.

15. INTERREG III B Budget Lines • Personnel (including overhead costs): • overhead costs based on real costs, which directly relate to the implementation of the operation, allocated pro rata to a duly justified and equitable method, • documents: invoices or other documents proving that the cost was borne.

16. INTERREG III B Budget Lines • Meetings, conferences, seminars: • e.g. rental of the venue, rental of equipment, documents, translators and interpreters and meals if not covered by daily allowances, • fees of trainers, speakers, and facilitators should be mentioned under the “external expertise” header. • documents: invoices or other documents proving that the payment was effected, minutes form the meetings, presence list, etc.

17. INTERREG III B Budget Lines • Travel and accommodation: • expenditures related to international or national travel, • documents: statement of delegation, invoices or other documents proving that the payment was effected and costs actually borne, • allowances accounted in compliance with national rules, • flight tickets should be economy class.

18. INTERREG III B Budget Lines • Promotion and publications: • costs related to promotion activities or publications, • documents: invoices or other documents proving that the payment was effected and costs actually borne.

19. INTERREG III B Budget Lines • External expertise and audit: • subcontracting of external staff, speakers for workshops, trainers, web designer, studies, services, etc., • documents: invoices or other documents proving that the payment was effected and costs actually borne, protocol of receiving goods or services, • subcontracting must be in compliance with public procurement law, • there are no 1-level control costs for Polish partners.

20. INTERREG III B Budget Lines • Others: • any other costs, which do not fit under any of the other headings, • documents: invoices or other documents proving that the payment was effected and costs actually borne.

21. INTERREG III B Budget Lines • Small scale investment: • small-scale infrastructure investments, • only costs of equipment or works, • subcontracting must be in compliance with public procurement law, • documents: invoices or other documents proving that the payment was effected and costs actually borne, certificate of taking over of the investment, photos, • office equipment (computers, printers, fax machines etc.) cannot be considered “infrastructure” and must be listed under “Other costs.”

22. INTERREG III B INTERREG OFFICE POLAND Please contact with the following people: Sylwia Tyszko sylwia.tyszko@wwpwp.it.pl tel. + 48 22 661 88 04 Izabela Niedostatkiewicz izabela.niedostatkiewicz@wwpwp.it.pl tel. + 48 22 661 88 26 Małgorzata Piórkowska malgorzata.piorkowska@wwpwp.it.pl tel. + 48 22 661 88 25 Magdalena Zawadzka magdalena.zawadzka@wwpwp.it.pl tel. + 48 22 661 88 14

23. INTERREG III B INTERREG OFFICE POLAND Władza Wdrażająca Program Współpracy Przygranicznej Phare ul. Wspólna 2/4 00-926 Warszawa Our website: www.wwpwp.it.pl