Here is our presentation of budget preparation for EU external action and IPA applications.

1. How to create a budget?

2. Background information
Budget - a link between the functions of planning,
implementation and controlling of project activities
• Expressed in measurable numerical form (in EUR, units –
per day, per item, etc.)
• Use the template (excel table, Annex "XY" in
application form) which includes:
1. Budget line items
2. Budget justification
3. Sources of funding

3. How to plan a budget?
BUDGET – must be directly associated with the activities listed
in the Application form
costs that arise
implementation means a,b,c, are
relating the means
of activities x, y, needed to
for each set of
z, etc... implement...
activities.
The budget can not include anything that is not defined
within the project activities!*

4. From activities to budget items
Activities Means Costs Budget items
Training of Trainers (1 foreign expert and Daily fee for 1. Human resources
tourism 1 local), project manager, external experts (for 5. Services, conferences
professionals project coordinator, materials, the days of lectures and seminars
about recreation food / coffee and preparation),
tourism (for team members
opportunities in employed by the
xy area (2×3 institution that
days, 30 people, implements this is
nonresidential) included in salary),
cost of materials
×60, food / coffee ×
No. of people, No.
of days
Where cost are explained,(Budget justification), it is necessary that
each budget item refers to the related activity set defined in the
application form, which facilitates more effective budget planning and
financial monitoring during and after implementation.

5. The general rules for eligibility of costs
Eligible costs are those that are necessary to perform the
project activities.
They should be within expressed rules for a given
CfP/programme documentation and general EC rules .
Project costs must be incurred within the projects
programme area.
All IPA programs are exempt
from paying VAT and all
amounts in the budget must be
shown without VAT!*

6. Eligible costs
Total eligible Part of own The required
costs contribution contribution

7. Budget item headings:
Before
1. Human resources proceeding, look
2. Travel costs at a Budget
3. Equipment and supplies template!
4. Local office costs
5. Other costs/services
6. Other
7. Subtotal direct eligible costs of the Action
8. Contingency reserve
9. Total direct eligible costs of the Action
10. Administrative costs

8. 1. Human resources
• The project team members (local and international) that
concluded an agreement on regular employment on the
project
• This category of costs relate only on employees who are
engaged on the project, including technical personnel (eg,
project coordinator, expert ...) and administrators (eg,
accountant, assistant to the project ...) For
details,
see the
note

9. Example: Human resources in the budget planning
1. Human Resources ALL YEARS YEAR 1
1.1 Salaries (gross amounts, local staff)4
1.1.1 Technical Per month € 0.00 Per month € 0.00
1.1.1.1 HGSS Project Manager - 33.33% Per month 6.00 € 1,769.00 € 10,614.00 Per month 4 € 1,769.00 € 7,076.00
Notice that staff
1.1.1.2 HGSS GIS Coordinator - 16.66% Per month 3.00 € 1,360.00 € 4,080.00 Per month 2 € 1,360.00 € 2,720.00
time is broken
1.1.1.3 HGSS S&R Coordinator -16.66% Per month 3.00 € 1,360.00 € 4,080.00 Per month 2 € 1,360.00 € 2,720.00
1.1.1.4 HGSS ILTS Coordinaor - 16.66% down by the Per month 3.00 € 1,360.00 € 4,080.00 Per month 2 € 1,360.00 € 2,720.00
1.1.1.5 HGSS Finance administrator - 50% percentage of Per month 3.00 € 1,292.00 € 3,876.00 Per month 2 € 1,292.00 € 2,584.00
1.1.1.6 HGSS ILTS trainer - 5.55% their total work Per month 1.00 € 1,292.00 € 1,292.00 Per month 1 € 1,292.00 € 1,292.00
1.1.1.7 HGSS Caving trainer - 5.55% time which is Per month 1.00 € 1,496.50 € 1,496.50 Per month 1 € 1,496.50 € 1,496.50
1.1.1.8 SUNCE Coordinator - 25% dedicated to this Per month 4.50 € 1,600.00 € 7,200.00 Per month 3 € 1,600.00 € 4,800.00
1.1.1.9 SUNCE Assistent - 30% project Per month 5.40 € 1,350.00 € 7,290.00 Per month 4 € 1,350.00 € 5,400.00
1.1.1.10 CSTI Project Manager - 50% Per month 9 € 1,150.00 € 10,350.00 Per month 6 € 1,150.00 € 1,150.00
1.1.1.11 CSTI Project Coordinator - 50% Per month 9 € 900.00 € 8,100.00 Per month 6 € 900.00 € 900.00
1.1.1.12 CSTI Admin&Finance Officer - 50% Per month 9 € 820.00 € 7,380.00 Per month 6 € 820.00 € 820.00
1.1.1.13 UNDP Project manager Per month 6 € 1,650.00 € 9,900.00 Per month 3 € 1,650.00 € 4,950.00
1.1.1.14 UNDP Finance administrator Per month 4 € 1,650.00 € 6,600.00 Per month 2 € 1,650.00 € 3,300.00
1.1.1.15 UNDP GIS trainer Per month € 0.00 Per month
1.1.1.16 UNDP Activity coordinator Per month 9 € 1,350.00 € 12,150.00 Per month 9 € 1,350.00 € 12,150.00
1.1.1.17 UNDP GIS Project manager Per month 6 € 1,650.00 € 9,900.00 Per month 3 € 1,650.00 € 4,950.00
1.1.2 Administrative/ support staff All salaries are Per month € 0.00 Per month € 0.00
1.1.2.1 SUNCE trainer - 10% listed in total Per month 1.8 € 1,350.00 € 2,430.00 Per month 1.8 € 1,350.00 € 2,430.00
1.1.2.2 UNDP program assistant amount and Per month 7 € 1,350.00 € 9,450.00 Per month 3 € 1,350.00 € 4,050.00
1.2 Salaries (gross amounts, expat/int. staff) then calculated Per month € 0.00 Per month € 0.00
1.3 Per diems for missions/travel5 € 0.00 € 0.00
1.3.1 Abroad (staff assigned to the Action)
according to Per diem € 0.00 Per diem € 0.00
1.3.1.1 Project coordination meetings the percentage Per diem 24.00 € 80.00 € 1,920.00 Per diem 18 € 80.00 € 1,440.00
1.3.1.2 Biodiversity trainings Per diem 16.00 € 80.00 € 1,280.00 Per diem 16 € 80.00 € 1,280.00
1.3.1.3 cave guide trainings Per diem 12.00 € 80.00 € 960.00 Per diem 12 € 80.00 € 960.00
1.3.1.4 rescue and ITLS trainings Per diem 6.00 € 80.00 € 480.00 Per diem 6 € 80.00 € 480.00
1.3.1.5 joint excercise Per diem 30.00 € 80.00 € 2,400.00 Per diem 30 € 80.00 € 2,400.00
1.3.1.6 GIS trainings Per diem 100.00 € 120.00 € 12,000.00 Per diem 100 € 120.00 € 12,000.00
1.3.1.17 Kickoff meeting in Dubrovnik Per diem 3 € 180.00 € 540.00 Per diem 3 € 180.00 € 540.00
1.3.1.8 Project coordination meeting CSTI and SUNCE 2 persons Per diem 12 € 180.00 € 2,160.00 12 € 180.00 € 2,160.00
1.3.2 Local (staff assigned to the Action) Per diem € 0.00 Per diem € 0.00
1.3.2.1 Project coordination meetings Per diem 24.00 € 80.00 € 1,920.00 Per diem 18 € 80.00 € 1,440.00
1.3.2.2 Biodiversity training Per diem 16.00 € 80.00 € 1,280.00 Per diem 16 € 80.00 € 1,280.00
1.3.2.3 meeting with stakeholders Per diem 24.00 € 80.00 € 1,920.00 Per diem 24 € 80.00 € 1,920.00
1.3.2.4 GSS situation analaysis and operational guidelines Herceg Novi Per diem 3 € 180.00 € 540.00 3 € 180.00 € 540.00
1.3.2.5 Wrapup event Per diem 1 € 100.00 € 100.00 1 € 100.00 € 100.00
1.3.2.6 Project cordination meetings CSTI and SUNCE 2 persons Per diem 12 € 100.00 € 1,200.00 12 € 100.00 € 1,200.00
1.3.3 Seminar/conference participants Per diem € 0.00 Per diem € 0.00
1.3.3.1 attendance at cave guide trainings Per diem 1 € 100.00 € 100.00 1 € 100.00 € 100.00
1.3.3.2 attendance at rescue and ITLS trainings Per diem 3 € 100.00 € 300.00 1 € 100.00 € 100.00
1.3.3.3 attendance at joint excercise Per diem 1 € 100.00 € 100.00 € 100.00 € 0.00
1.3.3.4 attendance at GIS trainings Per diem 1 € 100.00 € 100.00 1 € 100.00 € 100.00
Subtotal Human Resources € 149,568.50 € 93,548.50

10. 2. Travel costs
Travel costs of all participants, (partners), in the
project.
Each trip must be justified by project activities
and necessary for successful project
implementation.

11. Example – Travel costs in the budget planning
2. Travel6
2.1. International travel Per flight € 0.00 Per flight € 0.00
2.1.1 SUNCE travel to montenegro for activities per km 3800.00 € 0.25 € 950.00 per km 3800.00 € 0.25 € 950.00
2.1.2 CMRS travel to montenegro for activities per km 3800.00 € 0.25 € 950.00 per km 3800.00 € 0.25 € 950.00
2.1.13 Travel to Dubrovnik from Podgorica and back for kickoff event Per km 350 € 0.17 € 59.50 350 € 59.50
€ 0.17
2.2 Local transportation Per month € 0.00 Per month € 0.00
2.2.1 SUNCE travel for activities per km 3000.00 € 0.25 € 750.00 per km 3000.00 € 0.25 € 750.00
2.2.2 CMRS travel for activities per km 3000.00 € 0.25 € 750.00 per km 3000.00 € 0.25 € 750.00
2.2.3 Transport to HN from Podgorica and back for GSS meetings Per km 250 € 0.17 € 42.50 250 € 42.50
€ 0.17
2.2.4 Transport to HN from Podgorica and back for Cave Guide
Per km 250 € 0.17 € 42.50 125 € 21.25
trainings
€ 0.17
2.2.5 Transport to HN from Podgorica and back for Rescue trainings Per km 750 € 0.17 € 127.50 500 € 85.00
For travel by car costs are
€ 0.17
listed in price by KM
2.2.6 Transport to HN from Podgorica and back for ITLS training Per km 250 € 0.17 € 42.50 125
traveled, with a € 21.25
€ 0.17
breakdown by activities
2.2.7 Transport to HN from Podgorica and back for Joint exercise Per km 250 € 0.17 € 42.50 where able to do so.
250 € 42.50
€ 0.17
Where not… Place total
2.2.8 Transport to HN from Podgorica and back for GSS Situation
Per km 250 € 0.17 € 42.50 anticipated KM. Travel by
125 € 21.25
analysis and operational guidelines
air or other form is€listed
0.17
per person/trip
Subtotal Travel € 3,799.50 € 3,693.25

12. 3. Equipment and Supplies
All costs of purchase / rent of equipment that is needed to
implement the project (eg, projector, computer, technical
equipment, car, etc.)
Cost of equipment can be approved only if they precisely
indicate which activities are related and why they are
necessary to implement these activities
The user of the application will have to clarify what will
happen with this equipment when project activities end
The rule is that the equipment remains in use to end users of
the project in order to satisfy long-term goals

13. Example - Equipment and Supplies in the
budget planning
3. Equipment and supplies7
Per Per
3.1 Purchase or rent of vehicles vehicle € 0.00 vehicle € 0.00
3.2 Furniture, computer equipment € 0.00 € 0.00
3.3 Machines, tools… € 0.00 € 0.00
3.4 Spare parts/equipment for machines, tools € 0.00 € 0.00
3.5 Other (please specify) € 0.00 € 0.00
3.5.1 Rescue equipment for CMRS Per set 1 € 27,290.00 € 27,290.00 Per set 1 € 27,290.00 € 27,290.00
3.5.2 Rescue equipment for MRS MNE per set € 27,290.00 € 27,290.00 Per set 1 € 27,290.00 € 27,290.00
Subtotal Equipment and supplies € 54,580.00 € 54,580.00
Purchase or rent of vehicle - This budget category includes rental or purchase
of a vehicle only if it is really needed to be carried out the project. If the
anticipated rent of vehicles for a specific event such as a seminar - then this
cost is not reported here but under 5.7. Costs of conferences / seminars.

14. 4. Local office costs
Complete only if the project
takes the needs of the rental
separate office!
If we use existing office space all
expenses rent, the cost of using
fax, internet access, telephone
charges, etc. are not shown here,
rather they are included under the
administrative costs

15. 5. Other Costs/Services
Need to be grouped by activity (e.g. printing of brochure) or event
(e.g.seminar) in a common item with subparagraph
Includes all other (external) costs such as:
• Cost of publications
• The costs of external experts / associates
• The costs of organizing events
• The costs of promotion and information Detailed
• Cost of audit in the
• The costs of translation of materials / workshops notes!
• Financial services
• Rental of equipment

16. Example – Other Costs/Services in the budget planning
5. Other costs, services8
5.1 Publications9 € 0.00 € 0.00
5.1.1 Design of environmental info signs per design 1.00 € 1,500.00 € 1,500.00
5.1.2 production and installation of environmetal info signs per sign 6.00 € 150.00 € 900.00
5.1.3 production and instalation of trail markers per marker 30.00 € 150.00 € 4,500.00
5.1.4 Design and printing of the Guideline for cave guides Per guideline 100 € 5.00 € 500.00 Per guideline 100 € 5.00 € 500.00
5.1.5 Printing guideline for sea kayak guides Per guideline 500 € 2.00 € 1,000.00 Per guideline 500 € 2.00 € 1,000.00
5.2 Studies, research9 € 0.00 € 0.00
5.3 Auditing costs per audit 2.00 € 2,000.00 € 4,000.00 € 0.00
per
5.4 Evaluation costs evaluation 2.00 € 2,000.00 € 4,000.00 € 0.00
5.5 Translation, interpreters Per project 1 € 3,000.00 € 3,000.00 Per project 1 € 3,000.00 € 3,000.00
per
5.5.1 translation of text for environmental info signs translation 1.00 € 2,100.00 € 2,100.00
5.6 Financial services (bank guarantee costs etc.) € 0.00 € 0.00
5.7 Costs of conferences/seminars9 € 0.00 € 0.00
5.7.1 Guide trainings € 0.00
5.7.1.1 Hiking Guide Training per training 1 € 9,500.00 € 9,500.00
5.7.1.2 Bike Guide Training per training 1 € 9,500.00 € 9,500.00
5.7.1.3 Sea Kayak Guide Training per training 1 € 9,500.00 € 9,500.00
5.7.2 Refreshment for meetings - 6 events with 16 people
per event Per person 96 € 5.00 480
5.7.3 Premises for joint meetings Per meeting 6 € 170.00 1020 Per meeting 4 € 170.00 € 680.00
5.8. Visibility actions € 0.00 € 0.00
5.8.1 Design and printing broshures promoting nature
per item 25000 € 1,750.00
based activities € 0.07
5.8.2 Design and printing tourism maps based on GIS per item 8000 € 0.45 € 3,600.00
5.8.3 Educational info signs per piece 2 € 400.00 € 800.00
per per
5.8.4 Press conferences CRO confernece 3.00 € 450.00 € 1,350.00 confernece 2.00 € 450.00 € 900.00
per per
5.8.5 Press conferences for the media MNE 3 € 1,290.00 2 € 860.00
conference € 430.00 conference € 430.00
5.9 External consultants € 0.00
5.9.1 Tourism Consultant Per day 20 € 200.00 € 4,000.00 Per day 20 € 200.00 € 4,000.00
5.9.2 IT Consultant Per day 30 € 150.00 € 4,500.00 Per day 30 € 150.00 € 4,500.00
Subtotal Other costs, services € 72,290.00 € 18,940.00

17. 6. Other
Costs necessary for the implementation of project
activities, not explicitly stated in some form of budgetary
items such as:
- Infrastructure Works (Eng. Small Scale Infrastructure)
- Mapping the territory
- Organization of various training, (without outsourcing),
etc.

18. Example – Other in the budget planning
6. Other
6.1. Reconstruction TIC
Per
6.1.1. Reconstruction 2 TIC Croatia - LAG Laura contract 2 4,800.00 9,600.00 per contract 2.00 4,800.00 9,600.00
per
6.1.2. Reconstruction 2 TIC BiH - LAG Una-Sana contract 2 4,800.00 9,600.00 per contract 2.00 4,800.00 9,600.00
Costs listed here can
6.2. MT support for local associations for the safety include events not
of tourists subcontracted, 0.00
6.2.1. MT support for associations Croatia - LAG Per infrastructure, and other
Laura contract 6 5,000.00 30,000.00 per contract 0.00 0.00 0.00
support actions that do
6.2.2. MT support for associations BiH - LAG Una- per fall into the headings
Sana contract 6 5,000.00 30,000.00 per contract 0.00 0.00 0.00
provided thus far.
6.3. Participation and organization of gastronomic
fairs 0.00
6.3.1. "Gastro table fair - Biograd n/m", Croatia -
LAG Laura 0.00
6.3.1.1. Expenses for participation "Gastro fest - per
Bosanska Krupa", BiH - LAG Laura participant 20 100.00 2,000.00 per participant 0.00 0.00 0.00
6.3.2. "Gastro fest - Bosanska Krupa", BiH - LAG
Una-Sana
6.3.2.1. Expenses for organization "Gastro fest -
Bosanska Krupa", BiH - LAG Una-Sana per event 1 4,000.00 4,000.00 per event 0.00 0.00 0.00
6.3.2.2. Expenses for participation "Gastro table per
fair - Biograd n/m", Croatia - LAG Una-Sana participant 20 100.00 2,000.00 per participant 0.00 0.00 0.00
Subtotal Other 87,200.00 19,200.00

19. 8. Contingency reserve
For unforeseen expenses that can’t be predicted
at the stage of project preparation, can be used
only with prior written approval of the
Contracting Authority
Examples: changes in laws, damage to existing
infrastructure in execution of works, etc.
Look at the
note!

20. Example - Contingency reserve in the
budget planning
7. Subtotal direct eligible costs of the Action (1-6) 407,844.00 176,267.00
8. Provision for contingency reserve (maximum 5% of 7,
1.00 0.05 20,392.20 1.00 0.05 8,813.35
subtotal of direct eligible costs of the Action)
9. Total direct eligible costs of the Action (7+ 8) 428,236.20 185,080.35
This total represents 5% of the The Total direct costs
above listed subtotal. It is often are then derived by
not completed as a portion of adding the
budget planning as usage of the contingency to the
contingency is rare at best. subtotal.
Usually it is better to leave this
blank.

21. 10. Administrative costs
• Office supplies, photocopying
• Mail, deliver
• Phone, fax, internet
• Cleaning, heating, electricity
• Accounting (if external)
• Fuel costs for company car
• Other administrative expenses necessary for
the project

22. Example – Administrative costs in the budget planning
9. Total direct eligible costs of the Action (7+ 8) 428,236.20 185,080.35
10. Administrative costs (maximum 7% of 9, total
1.00 0.07 29,976.53 1.00 0.07 12,955.62
direct eligible costs of the Action)
11. Total eligible costs (9+10) 458,212.73 198,035.97
Here is where administrative costs are
shown instead of under #4 “local
office”. This is 7% of the TDEC and
added together gives the Total eligible
costs.

23. Own and Contracting Authority Contribution
-Own contribution for any Own contribution includes
project is expressed in a % as funding from:
defined within the project Applicant’s financial
documentation, (e.g. for IPA contribution, (usually shown
15% of the total project through staff labor costs)
budget) Funding from other EU
Institutions or EU Member
States
Look at the notes! Funding from other
organizations / banks

24. Requested funding
Own contribution from the Contracting Total budget
Authority (Grant)

25. Justification and Clarification of the Budget
The allowances can be paid off only in case of travel with overnight stays! In calculating
the allowance it’s necessary to check the current list:
http://ec.europa.eu/comm/europeaid/perdiem/index_en.htm
Is’s necessary to specify the mileage (KM) for travel, useful link to justify expenses is
www.viamichelin.com
Always choose most suitable means of transport!
Only economy class of vehicle is acceptable (train, bus, boat, airplane) and
accommodation at the hotel to 3 ***!
When purchasing products / services it is not allowed to mention the brand of goods /
services but only technical specifications that the product / service must satisfy

26. Contributions in kind
All material / immaterial contributions
which are not included in the budget,
but contribute to the quality and overall
achievement of the project, (e.g.,
donated conference space...), can not
be shown as a own contribution!

27. Ineligible costs
• Debts and provisions for losses or debts
• Interest on debt
• Items that are already funded by other means / programs
• Buying or rental land with an existing facility already built
• Foreign exchange losses
• Taxes, including VAT (not including labor taxes)
• Customs and import duties
• Cost of used (second hand) equipment / product
• Bank fees and guarantees