Article 14 - Eligible Costs
14.1 Eligible costs are costs actually incurred by the beneficiary of this grant which meet all the following criteria:
14.1 Eligible costs are costs actually incurred by the beneficiary of this grant which meet all the following criteria:
a) They are incurred during the implementation of the action as specified in Article 2 of the Special Conditions with the exception of costs relating to final reports, expenditure verification and evaluation of the action, Whatever the time of actual disbursement by the Beneficiary and/or its partners. Procedures to award sub contracts for goods/services/works, as referred to in the article 1.3 paragraph 3, may have been initiated but contracts may not be concluded by the Beneficiary or its partners before the start of the implementation period of the Action, provided the provisions of Annex IV were respected.
b) must be indicated in the estimated overall budget of the action,
c) must be necessary for the implementation of the action which is the subject of the grant.
d) they are identifiable and verifiable, in particular being recorded in the accounting records of the beneficiary and determined according to the applicable accounting standards of the country where the beneficiary is established and according to the usual cost accounting practices of the beneficiary,
e) must be reasonable, justified and comply with the requirements of sound financial management, in particular regarding economy and efficiency.
14.2 Subject to the above and where relevant to the provisions of Annex IV being respected, the following direct costs of the Beneficiary and its partners shall be eligible:
- The cost of staff assigned to the Action, Corresponding to actual gross salaries including social security charges and other remuneration - related costs: salaries and cost must not exceed those normally borne by the Beneficiary or its partners, as the case may be, unless it is justified by showing that it is essential to carry out the action;
- Travel and subsistence costs for staff and other taking part in the Action, provided they do not exceed those normally borne by the Beneficiary or its partners, as the case may be, Any flat rate reimbursement of the subsistence costs must not exceed the rates set out in Annex III, which correspond to the scale published by the European Commission at the time of signing this contract;
- Purchase or rental costs for the equipment and supplies (new or used) specifically for the purposes of the Action, and cost of services, provided they correspond to market rates;
- Cost of consumables;
- Subcontracting expenditure
- Costs deriving directly from the requirements of the contract (dissemination of the information, evaluation specific to the Action, audits, translation, reproduction, insurance, etc) including financial service costs ( in particular the costs of transfers and financial quarantees);
14.3 A contigency reserve not exceeding 5 % of the direct eligible costs may be included in the budget of the Action. It can be used only with the prior written authorisation of the Contracting Authority
14.4 A fixed percentage not exceeding 7% of the total amount of direct eligible costs of the Action may be claimed as indirect costs to cover the Administrative overhead incurred by the Beneficiary for the Action, save where the Beneficiary is in receipt of an communities's budget. The flat rate funding in respect of indirect
Costs does not need to be supported by the accounting documents.
Indirect costs are eligible provided that they do not include costs assigned to another heading of the budget of this contract.
This article 14.4 does not apply in the case of an operating grant.
14.5 Any contributions in kind, which must be listed separately at Annex III, do not represent actual expenditure and are not eligible costs. Unless other wise specified in the special conditions, the contributions in kind may not be treated as co-financing by the Beneficiary. The cost of staff assigned to the Action is not a contribution in kind and may be considered as co-financing in the Budget of the Action when paid by the Beneficiary or its partners.
Notwithstanding to the above, if the description of the Action foresees the contributions in kind, such contributions have to be provided.
14.6 The following costs shall not be considered eligible:
- Debts and provisions for losses or debts
- Interest owned
- Items already financed in another framework;
- Purchases of land or buildings, except where necessary for the direct implementation of the Action, in which case ownership must be transfered to the final beneficiaries and /or local partners, at the latest at the end of the action
- Currency exchange losses
- Taxes, including VAT, unless the Beneficiary (or where applicable, its partners) can show it cannot reclaim and the applicable regulations authorise coverage of taxes;
- Credits to the third parties.
Source: Annex II General Conditions applicable to European Community - financed grant contracts for the external actions, AEMAS Project
b) must be indicated in the estimated overall budget of the action,
c) must be necessary for the implementation of the action which is the subject of the grant.
d) they are identifiable and verifiable, in particular being recorded in the accounting records of the beneficiary and determined according to the applicable accounting standards of the country where the beneficiary is established and according to the usual cost accounting practices of the beneficiary,
e) must be reasonable, justified and comply with the requirements of sound financial management, in particular regarding economy and efficiency.
14.2 Subject to the above and where relevant to the provisions of Annex IV being respected, the following direct costs of the Beneficiary and its partners shall be eligible:
- The cost of staff assigned to the Action, Corresponding to actual gross salaries including social security charges and other remuneration - related costs: salaries and cost must not exceed those normally borne by the Beneficiary or its partners, as the case may be, unless it is justified by showing that it is essential to carry out the action;
- Travel and subsistence costs for staff and other taking part in the Action, provided they do not exceed those normally borne by the Beneficiary or its partners, as the case may be, Any flat rate reimbursement of the subsistence costs must not exceed the rates set out in Annex III, which correspond to the scale published by the European Commission at the time of signing this contract;
- Purchase or rental costs for the equipment and supplies (new or used) specifically for the purposes of the Action, and cost of services, provided they correspond to market rates;
- Cost of consumables;
- Subcontracting expenditure
- Costs deriving directly from the requirements of the contract (dissemination of the information, evaluation specific to the Action, audits, translation, reproduction, insurance, etc) including financial service costs ( in particular the costs of transfers and financial quarantees);
14.3 A contigency reserve not exceeding 5 % of the direct eligible costs may be included in the budget of the Action. It can be used only with the prior written authorisation of the Contracting Authority
14.4 A fixed percentage not exceeding 7% of the total amount of direct eligible costs of the Action may be claimed as indirect costs to cover the Administrative overhead incurred by the Beneficiary for the Action, save where the Beneficiary is in receipt of an communities's budget. The flat rate funding in respect of indirect
Costs does not need to be supported by the accounting documents.
Indirect costs are eligible provided that they do not include costs assigned to another heading of the budget of this contract.
This article 14.4 does not apply in the case of an operating grant.
14.5 Any contributions in kind, which must be listed separately at Annex III, do not represent actual expenditure and are not eligible costs. Unless other wise specified in the special conditions, the contributions in kind may not be treated as co-financing by the Beneficiary. The cost of staff assigned to the Action is not a contribution in kind and may be considered as co-financing in the Budget of the Action when paid by the Beneficiary or its partners.
Notwithstanding to the above, if the description of the Action foresees the contributions in kind, such contributions have to be provided.
14.6 The following costs shall not be considered eligible:
- Debts and provisions for losses or debts
- Interest owned
- Items already financed in another framework;
- Purchases of land or buildings, except where necessary for the direct implementation of the Action, in which case ownership must be transfered to the final beneficiaries and /or local partners, at the latest at the end of the action
- Currency exchange losses
- Taxes, including VAT, unless the Beneficiary (or where applicable, its partners) can show it cannot reclaim and the applicable regulations authorise coverage of taxes;
- Credits to the third parties.
Source: Annex II General Conditions applicable to European Community - financed grant contracts for the external actions, AEMAS Project
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