RULES ON ELIGIBILITY OF COSTS

Transcription

1 Annex III RULES ON ELIGIBILITY OF COSTS Eligible csts are an essential instrument fr guaranteeing cmpliance with the principle f sund financial management and ensuring that the Cmmunity grant serves t reimburse real csts. Eligible csts are the cst base frm which is the maximum Cmmunity grant is determined, expressed as a maximum amunt and percentage f such eligible csts. Eligible csts f the actin receiving ECDC grants must be shwn in detail in the estimated budget annexed t the grant agreement. These csts must satisfy the eligibility criteria laid dwn by the Financial Regulatin applicable t the general budget f the Eurpean Cmmunities 1. It must be stressed that subject t these criteria, it is always fr ECDC t take the final decisin n the nature and amunt f the csts t be cnsidered eligible, either when analysing prpsals fr the establishment f the estimated budget t be annexed t the grant agreement r when examining statements f csts actually incurred fr the purpse f determining the final grant. Accrding t the Financial Regulatin and its Implementing Rules, the eligible csts shuld meet all the fllwing criteria: (a) They are incurred during the lifetime f the actin r f the wrk prgramme, with the exceptin f csts relating t final reprts and audit certificates; (b) They are indicated in the estimated verall budget f the actin r wrk prgramme; (c) They are necessary fr the implementatin f the actin r f the wrk prgramme which is the subject f the grant; (d) they are identifiable and verifiable, in particular being recrded in the accunting recrds f the beneficiary and determined accrding t the applicable accunting standards f the cuntry where the beneficiary is established and accrding t the usual cst-accunting practices f the beneficiary; (e) They cmply with the requirements f applicable tax and scial legislatin; (f) They are reasnable, justified, and cmply with the requirements f sund financial management, in particular regarding ecnmy and efficiency. The beneficiary f a grant shall keep at ECDC's dispsal all riginal dcuments, especially accunting and tax recrds, r, in exceptinal and duly justified cases, certified cpies f riginal dcuments relating t the agreement fr a perid f five years frm the date f payment f the balance. ECDC may have an audit f the use made f the grant carried ut either directly by its wn staff r by any ther utside bdy authrised t d s n its behalf. Such audits may be carried ut thrughut the perid f implementatin f the agreement until the balance is paid and fr a perid f five years frm the date f payment f the balance. 1 COUNCIL REGULATION (EC, Euratm) N 1995/2006 f 13 December 2006 amending Regulatin N 1605/2002.

2 1) List f csts which may be cnsidered eligible Abut the eligible csts, there is a distinctin between direct csts and indirect csts, relevant nly in the case f a grant fr an actin. At all events any ne cst cannt be taken int accunt twice as a direct cst and an indirect cst. I). Direct csts They are defined in the standard agreement as csts which, with due regard fr the cnditins f eligibility set ut abve, are identifiable as specific csts directly linked t perfrmance f the actin and which can therefre be bked t it direct. The fllwing direct csts (this list is nt exhaustive and extra details can be included r additins made depending n the nature f the actins invlved) may be cnsidered eligible: (a) the cst f staff assigned t the actin: Staff assigned t the actin is understd t mean permanent r temprary staff emplyed by the beneficiary (r the assciated beneficiaries). If they are service prviders, the crrespnding csts must be presented under the head f implementing cntracts r subcntracting. The cst f such staff must be actual salaries plus scial security charges and ther statutry csts included in the remuneratin. (b) travel and subsistence allwances fr staff taking part in the actin: In rder t prevent any cheating n travel csts, such csts can be cnsidered eligible prvided that they are in line with the beneficiary s usual practices n travel csts r d nt exceed the scales apprved annually by ECDC. DESTINATIONS Daily allwance in Maximum htel price in (reimbursement will be made against invice up t the stated maximum ceiling) Austria Belgium Bulgaria Cyprus Czech Republic Denmark Estnia Finland France

3 Germany Greece Hungary Iceland Ireland Italy Latvia Liechtenstein Lithuania Luxemburg Malta Netherlands Nrway Pland Prtugal Rmania Slvakia Slvenia Spain Sweden Switzerland United Kingdm Missins in ther cuntries nt mentined in the table abve shall be submitted t the prir agreement frm the services f ECDC. This agreement shall be related t the bjectives f the missin, its csts and its mtivatin. Travel and subsistence expenses shall be reimbursed, where apprpriate, n the basis f the shrtest itinerary n prductin f riginal supprting dcuments, including receipts and used tickets. Travel expenses shall be reimbursed as fllws:

4 travel by air shall be reimbursed up t the maximum cst f an ecnmy class ticket at the time f the reservatin; travel by bat r rail shall be reimbursed up t the maximum cst f a first class ticket; travel by car shall be reimbursed at the rate f ne first class rail ticket fr the same jurney and n the same day; travel utside Cmmunity territry shall be reimbursed under the general cnditins stated abve prvided ECDC has given its prir written agreement. (c) the purchase cst f equipment (new r secnd-hand): Only equipment purchased fr the purpses f carrying ut the actin can be charged as direct csts, and as a rule nly in respect f the prtin f the equipment s depreciatin crrespnding t the duratin f the actin and the rate f actual use fr the purpses f the actin, prvided that it is written ff in accrdance with the tax and accunting rules applicable t the beneficiary and generally accepted fr items f the same kind. Because f the principle that grants may nt be awarded retrspectively (Article 109 FR), items purchased prir t the actin, even if they are used fr the purpses f the actin, cannt be cnsidered eligible direct csts f the actin. (The use f existing equipment and the beneficiary's installatins is partly cvered via the indirect cst.) Csts relating t the purchase f buildings and land shuld nt give rise t Cmmunity financing by way f grants and are nt included in the list f eligible csts mentined in the standard agreements.. (d) the csts f cnsumables and supplies, prvided they are identifiable and assigned t the actin: Unlike the equipment referred t abve, these are cnsumables, i.e. items that are nt entered as fixed assets in the accunts (r inventry) f the rganisatin and are nt written ff. The terms identifiable and assigned t the actin are f utmst imprtance in rder t avid duble cver by way f indirect csts. The nature f the actin and the fact that the csts are specific t the actin are key factrs justifying direct cver f certain csts. (e) miscellaneus the csts arising directly frm requirements impsed by the agreement (disseminatin f infrmatin, specific evaluatin f the actin, audits, translatins, reprductin, etc.), including the csts f any financial services (especially the cst f financial guarantees): The mst frequent examples are: financial guarantee fr prefinancing (the cst f this guarantee is eligible fr the duratin f validity f the guarantee as laid dwn in the agreement) audit csts, where an external audit is required when the beneficiary submits a request fr payment as stipulated in the agreement (including when the audit is carried ut upn cmpletin f the actin) csts f pening a specific bank accunt fr the actin where this is required by the agreement translatins required by the Cmmissin. II. Indirect csts These csts are nt identifiable as specific csts directly linked t perfrmance f the actin which can be bked t it direct, but can be identified and justified by the beneficiary using his accunting system as having been incurred in cnnectin with the eligible direct csts fr

5 the actin. Indirect csts make up a prprtin f the actin s verheads and may eligible fr a flat rate funding fixed at nt mre than 7% f the ttal eligible direct csts fr the actin. Overheads are all the structural and supprt csts f an administrative, technical and lgistical nature which are crss-cutting fr the peratin f the beneficiary bdy s varius activities and cannt therefre be bked in full t the actin fr which the grant is awarded because this grant is nly ne part f thse activities. Overheads cmprise csts cnnected with infrastructures and the general peratin f the rganisatin such as hiring r depreciatin f buildings and plant, water/gas/electricity, maintenance, insurance, supplies and petty ffice equipment, cmmunicatin and cnnectin csts, pstage, etc. and csts cnnected with hrizntal services such as administrative and financial management, human resurces, training, legal advice, dcumentatin, etc. 2) Nn-eligible csts In the interests f sund financial management certain csts are, as a matter f principle, t be excluded frm the csts fr which an ECDC grant may be awarded. The list f these csts appearing in the standard agreements must be regarded as a minimum reference list and must be fully cmplied with; additins may be made t the list r details may be specified if ECDC cnsider this apprpriate in cnnectin with certain actins. The standard agreement prvides that the fllwing csts are nt eligible: - return n capital - debt and debt service charges - prvisins fr lsses r ptential future liabilities - interest wed - dubtful debts - exchange lsses - VAT, unless the beneficiary can shw that he is unable t recver it - csts declared by the beneficiary and cvered by anther actin r wrk prgramme receiving a Cmmunity grant 3) Flexibility within the budget After the estimated budget has been apprved by ECDC it becmes part f the Grant Agreement. Due t the fact that the estimated budgets based n estimates, frm a practical pint f view, it is imprtant that the beneficiary has the pprtunity t adjust it, t a certain extent, during the curse f the prject implementatin, if it prves necessary. Therefre, the beneficiaries may, when carrying ut the actin, adjust the estimated budget by transfers between items f eligible csts, prvided that: - this adjustment f expenditure des nt affect implementatin f the actin, - the transfer between items des nt exceed 10% f the amunt f each item f estimated eligible csts fr which the transfer is intended,

6 - the transfer des nt cause the riginal ttal amunt f eligible csts t be exceeded. Please nte that the first and the third cnditins must be met in all cases. If the secnd cnditin is met then the beneficiary nly has t infrm ECDC in writing. If the secnd cnditin is nt met, i.e. the 10% ceiling is ging t be passed, a prir apprval must be sught frm ECDC and an addendum t the Grant agreement will then be necessary. This transfer prcedure may nt be used t amend the heading fr the eligible indirect csts.