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1 Simplified Cst Optins in Omnibus changes: New Ptential fr Uptake f SCOs Partnership Agreement Crdinatin Cmmittee Warsaw, 08/03/18 Maria Sumela
2 1. Why use SCOs? Key advantages Ptentially huge benefits thrugh reduced verificatin. Less dcumentatin t be retained by beneficiaries. Fewer cst types and therefre less scpe fr errr. Resurces can be re-directed t utputs and results 2
3 2. Key cnclusins f the survey 1. WHY USE SCOs Key cnclusins f the survey n the current & intended use f SCOs study launched in July 2017 replies frm 27 Member States, cvering 208 f 295 OPs and 77% f the ttal ERDF-CF budget 2
4 The uptake f SCOs at ESIF level Prgrammes (OPs/RDPs) using SCOs 100% 90% Prjects using SCOs Budget declared under SCOs 95% 80% 70% 60% 50% 73% 50% 64% 65% 40% 30% 20% 10% 0% 19% 9% 4% ERDF/CF EARDF ESF 33%
5 Number f ERDF/CF OPs using SCOs by the end f the prgramming perid OPs already using SCO OPs expected t use SCOs by the end f the prgramming perid 100% 90% 80% 70% 67% 74% 90% 92% 73% 78% 60% 50% 40% 30% 20% 10% 0% Mainstream OPs ETC OPs ttal ERDF/CF OPs
6 Budget cvered by SCOs Actual budget cverage Expected budget cverage by the end f the prgramming perid 20,0% 18,0% 16,0% 14,0% 12,0% 10,0% 8,0% 6,0% 4,0% 2,0% 0,0% 17,3% 17,5% 3,6% 3,9% 4,1% 4,4% Mainstream OPs ETC OPs ttal OPs
7 SCO budget cverage varies greatly by Member State (ERDF/CF) DK NL IE SI ETC SE BE UK DE FI SK FR HR LU CZ Tt. AT IT LT ES PT PL MT LV HU GR BG RO EE CY 0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
8 Flat rate is the mst used type f SCO in ERDF/CF Type f peratins and csts Research and develpment Business develpment Technical assistance
9 Key reasns fr nt using SCOs Key reasns fr using SCOs
10 PL results f the survey 21 OPs (ut f 21) cvered: SCOs uptake is very limited and expected t very slightly increase. Sme 0.3% f the ERDF budget is expected t be declared under SCOs ver the prgraming perid amunting t (0.3% under existing SCOs amunting t ). The SCOs put in place cncern ERDF and are mainly flat-rate fr indirect csts.
11 PL results f the survey Tw MAs declared their intensin t design new SCOs fr the r intrduce the use f ff-the-shelf flat rates. 33% f the OPs intend t use additinal financing simplificatin measures fllwing Omnibus. 19% wuld use additinal ff-theshelf flat rates. Limited number f respndents prvided figures fr fully publicly prcured peratins; the weight f fully publicly prcured peratins is underestimated. Reasns fr nt using SCOs have nt been prvided (except fr Technical Assistance CF and Infrastructure and Envirnment - ERDF/CF where they indicate SCOs nt being suitable fr the prgramme).
12 3. Overview f Omnibus changes Omnibus Regulatin: A greater ptential fr SCOs 13
13 Type f SCOs/Frms f supprt Lump sums: remval f the upper limit (Art. 67(1)(c) CPR) Intrductin f a new frm fr grants and repayable assistance: financing based n the fulfilment f cnditins related t prgress in implementatin r the achievement f bjectives f prgrammes - t be defined in delegated acts. Audit shall exclusively aim at verifying that the cnditins fr reimbursement have been fulfilled.
14 Methdlgies fr establishing SCOs The fair, equitable and verifiable calculatin methd may als be based n an expert judgement (Art. 67(5)(a)(i) CPR) Additinal methdlgy fr determining a SCO: use f a draft budget n a case by case basis and agreed ex ante by the managing authrity in case the public supprt des nt exceed EUR (Art. 67(5)(a)(bis) CPR) Off the shelf SCOs: pssibility fr COM t adpt delegated acts fr the definitin f standard scales f unit csts and flat rates and related methds (Art. 67(5a) CPR)
15 Cmpulsry use f SCOs fr ERDF and ESF grants/repayable assistance where the public supprt des nt exceed EUR fr peratins nt implemented exclusively thrugh public prcurement (mved frm ESF Regulatin) - (Art. 67(2a) CPR) Des nt apply t peratins fr which the supprt cnstitutes State aid, except when the supprt cnstitutes de minimis aid applies in case f de minimis aid
16 New flat rates 1. Calculatin f direct staff csts Flat rate f up t 20% f the direct csts ther than staff csts (frm ETC Regulatin) (Art.68(a)CPR). N need t perfrm a calculatin t establish the applicable rate. Caveat: flat rate cannt be used if the direct csts f the peratin include public wrks cntracts abve threshld in the public prcurement directive.
17 2. Calculatin f the remaining eligible csts (ther than direct staff csts) flat rate f up t 40% f eligible direct staff csts (Art. 68b CPR) N requirement t execute any calculatin t determine the applicable rate Cannt be applied t staff csts calculated n the basis f a flat rate.
18 Increased flexibility fr calculatin f hurly rate fr staff csts Rules fr calculating an hurly rate fr staff csts (latest dcumented annual grss emplyment cst/1720 hurs) have been clarified (Art. 68a(2)(3) and (4) CPR): in case f part-time wrk: pr rata Where annual grss emplyment csts are nt available: available data r emplyment cntract adjusted fr a 12 mnth perid may be used. Number f hurs declared/year cannt exceed the number f hurs used fr the calculatin f the hurly rate
19 QUESTIONS?
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