The document provides guidance to beneficiaries of EU research grants on avoiding common errors in cost claims. It lists the 10 most frequent errors, including: costs not substantiated or linked to the project; unapproved use of third parties; improper depreciation charges; incorrect use of indirect cost models; including ineligible costs in indirect cost pools; improper calculation of personnel productive hours; and incorrectly charging hours worked. Beneficiaries are advised to carefully review financial rules and check that all claimed costs are real, paid, project-related, and properly calculated and documented to avoid errors and ensure timely reimbursement.
1_Introduction to Full Application preparationcsdialogue
How to write effective EU project proposals: Introduction to Full application preparation. Application Package for Applicants. Common mistakes.
Natasa Gospodjinacki
Kiev, 3-4 September 2015
1_Introduction to Full Application preparationcsdialogue
How to write effective EU project proposals: Introduction to Full application preparation. Application Package for Applicants. Common mistakes.
Natasa Gospodjinacki
Kiev, 3-4 September 2015
Question and Answer catalogue: Horizon 2020 Personnel Cost calculation and Re...Europa Media Trainings
These questions were asked by webinar participants where we talked about personnel cost calculation in H2020. The webinar recording is not available freely, but we publshed the Q&As (more than 50 questions).
International accounting standards aim to improve accounting practice by identifying matters related to accounting practices from presentation, disclosure, and measurement, in order to serve users of this information and financial statements. Through their reliance on financial statements prepared according to these standards, in addition to subjecting these statements to scrutiny in accordance with international auditing standards, these users' confidence in the financial statements will increase.
One of the important accounting standards that should be guided and applied when preparing financial statements, especially in the era of globalization, in order to serve users, is the international standard (IAS 23 — Borrowing Costs, 2007) which indicated the need to follow a unified policy regarding the application of capitalization of borrowing costs. He has laid down a set of specific rules that must be followed in the event that the company applies capitalization of borrowing costs. And clearly indicating importance of Adhere disclose the capitalization.
Participant Portal - Model Grant Agreement - Legal and Financial Issues | Pet...ISERD Israel
From ISERD’s INFO Day
Horizon 2020 Participants Portal System
Presented by Mr. Peter Haertwich, Deputy Head of Unit, European Commission, Brussels
Israel, October 2014
4 presentations:
1/4 Paperless Grant Management
2/4 Model Grant Agreement - Legal and Financial Issues
3/4 Validation of legal entities and financial capacity check
4/4 Detailed Description of H2020 Project
3 Videos:
Part 1 of 3: Participant Portal - Paperless Grant Management – video on YouTube: www.youtube.com/watch?v=Hr-JpOBdMXA&list=UU6c--_n765q4GN-Dknm8dEg&index=4
Part 2 of 3: Model Grant Agreement - Legal and Financial Issues – video on YouTube: www.youtube.com/watch?v=xEi1zXKag_M&list=UU6c--_n765q4GN-Dknm8dEg
Part 3 of 3: Detailed Description of H2020 Project – video on YouTube: www.youtube.com/watch?v=YqRnzE6_rCw&list=UU6c--_n765q4GN-Dknm8dEg&index=2
DIRECTED READING THREE PERCEPTIONS OF PROJECT COST D.H. Hamburg.docxduketjoy27252
DIRECTED READING: THREE PERCEPTIONS OF PROJECT COST*: D.H. Hamburger
Project cost seems to be a relatively simple expression, but “cost” is more than a four letter word. Different elements of the organization perceive cost differently, as the timing ofprojectcost identification affects their particular organizational function. The project manager charged with on-time, on-cost, on-spec execution of a project views the “on cost” component of his responsibility as a requirement to stay within the allocated budget, while satisfying a given setof specified conditions (scope of work), within a required time frame (schedule). To mostproject managers this simply means a commitment to project funds in 328329accordance with a prescribed plan (time-based budget). Others in the organization are less concerned with the commitment of funds. The accounting department addresses expense recognition related to aproject or an organizational profit and loss statement. The accountant’s ultimate goal is reporting profitability, while positively influencing the firm’s tax liability. The comptroller (finance department) is primarily concerned with the organization’s cash flow. It is that person’s responsibility to provide the funds for paying the bills, and putting the unused or available money to work for the company.
To be an effective project manager, one must understand each cost, and also realize that the timing of cost identification can affect both project and corporate financial performance. Theproject manager must be aware of the different cost perceptions and the manner in which they are reported. With this knowledge, the project manager can control more than theproject’s cost of goods sold (a function often viewed as the project manager’s sole financial responsibility). The project manager can also influence the timing of cost to improve cash flow and the cost of financing the work, in addition to affecting revenue and expense reporting in the P&L statement.
Three Perceptions of Cost
To understand the three perceptionsof cost—commitments, expenses, and cash flow—consider the purchase of a major project component. Assume that a $120,000 compressor with delivery quoted at six months was purchased. Figure 1 depicts the order execution cycle. At time 0 an order is placed. Six months later the vendor makes two shipments, a large box containing the compressor and a small envelope containing an invoice. The received invoice is processed immediately, but payment is usually delayed to comply with corporate payment policy (30, 60, 90, or more days may pass before a check is actually mailed to the vendor). In this example, payment was made 60 days after receipt of the invoice or 8 months after the order for the compressor was given to the vendor.
Figure 1: Three perceptions of project cost.
Commitments—The Project Manager’s Concern
Placement of the purchase order represents a commitment to pay the vendor $120,000 following satisfactory delivery of the compressor..
Sheet1ActivityWork (hours)Resource NameLabor RateLabor CostsMaterial CostsTravel CostsFacility CostsSubcontractor CostsTotal Costs
Cost Management
235-AAH-CH
Professor: Behn Nikkhah
CLASS 3&4
2
3
Cost Estimation
Estimating project costs are important because:
• Can be used in feasibility study before starting the
project.
• It can facilitate decisions regarding project
financing and funding.
• It provides a standard against which actual costs
incurred during the execution can be compared.
• It gives the project manager a framework to
allocate scarce resources throughout the project.
4
Cost Estimation
This is a process of estimating the cost of the resources
required for each scheduled activity.
It is important to be certain to include all the costs
required to complete the work of the project.
5
Estimate Costs Inputs
• Project Management Plan (Cost management plan,
Quality Management Plan, Scope baseline)
• Project Documents (Lessons learned register, Project
schedule, resource requirements, Risk register)
• Enterprise environmental factors
• Organizational process assets.
6
Estimate Costs Inputs
Scope Baseline:
• Project scope statement
• WBS
• WBS dictionary
Project scope statement is a document that includes key
deliverables, constraints, assumptions, etc.
Constraints such as limited budget for the project can be
find in this document. There might be other constraints such
as delivery date that can impact the cost.
Project assumptions regarding costs might include
information regarding indirect costs in the estimate.
7
Estimate Costs Inputs
The WBS serves as the basis for estimating costs, as it includes all
deliverables and the control accounts that are typically
established at the work package level.
The WBS dictionary describes the deliverables, work
components, and other elements of the WBS.
All these information can be helpful in estimation of the costs.
For example if one of the deliverables is to get licenses you need
to see that as additional expenses to fulfill in the estimation.
8
Estimate Costs Inputs
The Project schedule along with the resource requirements for
each activity are key inputs in estimating costs of the project.t
You need to be aware of the duration as it can affect costs.
For example, you must account for costs such as interest
charges in a financed work of the project.
Another example is fluctuation in costs that can occur due to
seasonal or holiday demands.
9
Estimate Costs Inputs
The risk register contains the response plans, particularly for
those risks with negative impacts to the project.
When developing project cost estimates, you should consider
the cost of implementing risk response plans.
10
Estimate Costs Inputs
The enterprise environmental factors such as market conditions,
exchange rates and inflation are examples to be considered in
the project costs estimation.
The organization process assets such as lessons.
Actualmente algunas Comunidades Autónomas y Ayuntamientos conceden subvenciones o préstamos para determinadas actividades de interés para su zona de influencia y que necesitan ser auditadas por un auditor de cuentas inscrito en el ROAC como los de AOB Auditores.
Si quiere más información sobre auditores subvenciones no dude en visitar nuestra página web http://aobauditores.com/ y contactar con nosotros.
Question and Answer catalogue: Horizon 2020 Personnel Cost calculation and Re...Europa Media Trainings
These questions were asked by webinar participants where we talked about personnel cost calculation in H2020. The webinar recording is not available freely, but we publshed the Q&As (more than 50 questions).
International accounting standards aim to improve accounting practice by identifying matters related to accounting practices from presentation, disclosure, and measurement, in order to serve users of this information and financial statements. Through their reliance on financial statements prepared according to these standards, in addition to subjecting these statements to scrutiny in accordance with international auditing standards, these users' confidence in the financial statements will increase.
One of the important accounting standards that should be guided and applied when preparing financial statements, especially in the era of globalization, in order to serve users, is the international standard (IAS 23 — Borrowing Costs, 2007) which indicated the need to follow a unified policy regarding the application of capitalization of borrowing costs. He has laid down a set of specific rules that must be followed in the event that the company applies capitalization of borrowing costs. And clearly indicating importance of Adhere disclose the capitalization.
Participant Portal - Model Grant Agreement - Legal and Financial Issues | Pet...ISERD Israel
From ISERD’s INFO Day
Horizon 2020 Participants Portal System
Presented by Mr. Peter Haertwich, Deputy Head of Unit, European Commission, Brussels
Israel, October 2014
4 presentations:
1/4 Paperless Grant Management
2/4 Model Grant Agreement - Legal and Financial Issues
3/4 Validation of legal entities and financial capacity check
4/4 Detailed Description of H2020 Project
3 Videos:
Part 1 of 3: Participant Portal - Paperless Grant Management – video on YouTube: www.youtube.com/watch?v=Hr-JpOBdMXA&list=UU6c--_n765q4GN-Dknm8dEg&index=4
Part 2 of 3: Model Grant Agreement - Legal and Financial Issues – video on YouTube: www.youtube.com/watch?v=xEi1zXKag_M&list=UU6c--_n765q4GN-Dknm8dEg
Part 3 of 3: Detailed Description of H2020 Project – video on YouTube: www.youtube.com/watch?v=YqRnzE6_rCw&list=UU6c--_n765q4GN-Dknm8dEg&index=2
DIRECTED READING THREE PERCEPTIONS OF PROJECT COST D.H. Hamburg.docxduketjoy27252
DIRECTED READING: THREE PERCEPTIONS OF PROJECT COST*: D.H. Hamburger
Project cost seems to be a relatively simple expression, but “cost” is more than a four letter word. Different elements of the organization perceive cost differently, as the timing ofprojectcost identification affects their particular organizational function. The project manager charged with on-time, on-cost, on-spec execution of a project views the “on cost” component of his responsibility as a requirement to stay within the allocated budget, while satisfying a given setof specified conditions (scope of work), within a required time frame (schedule). To mostproject managers this simply means a commitment to project funds in 328329accordance with a prescribed plan (time-based budget). Others in the organization are less concerned with the commitment of funds. The accounting department addresses expense recognition related to aproject or an organizational profit and loss statement. The accountant’s ultimate goal is reporting profitability, while positively influencing the firm’s tax liability. The comptroller (finance department) is primarily concerned with the organization’s cash flow. It is that person’s responsibility to provide the funds for paying the bills, and putting the unused or available money to work for the company.
To be an effective project manager, one must understand each cost, and also realize that the timing of cost identification can affect both project and corporate financial performance. Theproject manager must be aware of the different cost perceptions and the manner in which they are reported. With this knowledge, the project manager can control more than theproject’s cost of goods sold (a function often viewed as the project manager’s sole financial responsibility). The project manager can also influence the timing of cost to improve cash flow and the cost of financing the work, in addition to affecting revenue and expense reporting in the P&L statement.
Three Perceptions of Cost
To understand the three perceptionsof cost—commitments, expenses, and cash flow—consider the purchase of a major project component. Assume that a $120,000 compressor with delivery quoted at six months was purchased. Figure 1 depicts the order execution cycle. At time 0 an order is placed. Six months later the vendor makes two shipments, a large box containing the compressor and a small envelope containing an invoice. The received invoice is processed immediately, but payment is usually delayed to comply with corporate payment policy (30, 60, 90, or more days may pass before a check is actually mailed to the vendor). In this example, payment was made 60 days after receipt of the invoice or 8 months after the order for the compressor was given to the vendor.
Figure 1: Three perceptions of project cost.
Commitments—The Project Manager’s Concern
Placement of the purchase order represents a commitment to pay the vendor $120,000 following satisfactory delivery of the compressor..
Sheet1ActivityWork (hours)Resource NameLabor RateLabor CostsMaterial CostsTravel CostsFacility CostsSubcontractor CostsTotal Costs
Cost Management
235-AAH-CH
Professor: Behn Nikkhah
CLASS 3&4
2
3
Cost Estimation
Estimating project costs are important because:
• Can be used in feasibility study before starting the
project.
• It can facilitate decisions regarding project
financing and funding.
• It provides a standard against which actual costs
incurred during the execution can be compared.
• It gives the project manager a framework to
allocate scarce resources throughout the project.
4
Cost Estimation
This is a process of estimating the cost of the resources
required for each scheduled activity.
It is important to be certain to include all the costs
required to complete the work of the project.
5
Estimate Costs Inputs
• Project Management Plan (Cost management plan,
Quality Management Plan, Scope baseline)
• Project Documents (Lessons learned register, Project
schedule, resource requirements, Risk register)
• Enterprise environmental factors
• Organizational process assets.
6
Estimate Costs Inputs
Scope Baseline:
• Project scope statement
• WBS
• WBS dictionary
Project scope statement is a document that includes key
deliverables, constraints, assumptions, etc.
Constraints such as limited budget for the project can be
find in this document. There might be other constraints such
as delivery date that can impact the cost.
Project assumptions regarding costs might include
information regarding indirect costs in the estimate.
7
Estimate Costs Inputs
The WBS serves as the basis for estimating costs, as it includes all
deliverables and the control accounts that are typically
established at the work package level.
The WBS dictionary describes the deliverables, work
components, and other elements of the WBS.
All these information can be helpful in estimation of the costs.
For example if one of the deliverables is to get licenses you need
to see that as additional expenses to fulfill in the estimation.
8
Estimate Costs Inputs
The Project schedule along with the resource requirements for
each activity are key inputs in estimating costs of the project.t
You need to be aware of the duration as it can affect costs.
For example, you must account for costs such as interest
charges in a financed work of the project.
Another example is fluctuation in costs that can occur due to
seasonal or holiday demands.
9
Estimate Costs Inputs
The risk register contains the response plans, particularly for
those risks with negative impacts to the project.
When developing project cost estimates, you should consider
the cost of implementing risk response plans.
10
Estimate Costs Inputs
The enterprise environmental factors such as market conditions,
exchange rates and inflation are examples to be considered in
the project costs estimation.
The organization process assets such as lessons.
Actualmente algunas Comunidades Autónomas y Ayuntamientos conceden subvenciones o préstamos para determinadas actividades de interés para su zona de influencia y que necesitan ser auditadas por un auditor de cuentas inscrito en el ROAC como los de AOB Auditores.
Si quiere más información sobre auditores subvenciones no dude en visitar nuestra página web http://aobauditores.com/ y contactar con nosotros.
Auditorias del Proyecto innoempresa, auditores especializados en proyectos de empresas innoempresa requiere informe de auditor. AOB auditores empresa especialziada.
Modelo de informe de auditoria de justificación de gastos del proyecto INNPACTO por AOB AUDITORES expertos en trabajos de este tipo. Puedes vernes en www.aobsl.com
AOB Auditores - Cierre contable del ejercicio 2012 y novedades contables.AOB Auditores
Programa y apuntes de la charla ofrecida por nuestro auditor (Carlos Villanueva) sobre cierre contable 2012, consultas ICAC, novedades contables del 2012 y próximas novedades contables, actualización de balances.
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
Seminar: Gender Board Diversity through Ownership NetworksGRAPE
Seminar on gender diversity spillovers through ownership networks at FAME|GRAPE. Presenting novel research. Studies in economics and management using econometrics methods.
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
The Evolution of Non-Banking Financial Companies (NBFCs) in India: Challenges...beulahfernandes8
Role in Financial System
NBFCs are critical in bridging the financial inclusion gap.
They provide specialized financial services that cater to segments often neglected by traditional banks.
Economic Impact
NBFCs contribute significantly to India's GDP.
They support sectors like micro, small, and medium enterprises (MSMEs), housing finance, and personal loans.
Lecture slide titled Fraud Risk Mitigation, Webinar Lecture Delivered at the Society for West African Internal Audit Practitioners (SWAIAP) on Wednesday, November 8, 2023.
1. Note for beneficiaries
in the 7th Framework Programme
for Research and Innovation
How to avoid common errors identified in cost claims
1. INTRODUCTION
As a beneficiary of grant support under the 7th Framework programme, it is in your interest
to make sure that your claims for cost reimbursement are as error-free as possible. This
will considerably speed-up repayment of your eligible project costs, and should prevent you
having to reimburse some or all of the EU financial contribution received should errors be
detected during the course of financial audits. These reimbursements may be increased by
liquidated damages, which is a greater incentive to avoid the errors in the first place.
In fact, the vast majority of errors arise from misunderstandings of the rules or a lack of
attention to the detail of the provisions of the grant agreements and associated guidelines:
they are, therefore, mostly avoidable.
To help you, we have listed below 10 of the most frequently recurring errors along with
some explanatory notes. More information on possible exceptions or unusual cases can be
found in the Guide to Financial Issues relating to FP7 Indirect Actions1 that you have
already received (see especially Section 1: General Financial Provisions). This Guide
remains the basic reference document for all financial issues. However, it is hoped that you
will pay particular attention to the issues set out below when preparing your cost claims: it
helps us and it will help you!
You are reminded that there is also a help desk to which you can address your questions on
the EU research programmes. You can access the service via the Cordis website at
http://cordis.europa.eu/fp7/get-support_en.html.
2. THE 10 MOST FREQUENT ERRORS IDENTIFIED
2.1. Costs claimed that are not substantiated or are not linked to the project
All costs claimed, with the exception of applicable lump sums and flat rates, should
be based on the real costs incurred. They must be supported by evidence that they
are real (recorded in the accounts of the beneficiary and supported by invoices for
example), paid (supported by bank statements for example), and linked to the
funded project. As a general rule, neither estimated amounts, nor budgeted
amounts, are acceptable. Where these conditions are not met the amounts will be
deemed to be ineligible.
1
ftp://ftp.cordis.europa.eu/pub/fp7/docs/financialguide_en.pdf
2. For example the cost of consumables charged to the project needs to reflect the real
cost of consumables used for the funded project in the course of each reporting
period. Each set of consumables used needs to be substantiated by an invoice,
indicating the unit price and the quantity used.
Any allocation/breakdown of consumables in a funded project must be substantiated
by relevant supporting documentation (i.e. invoices or delivery notes).
2.2. Third parties and sub-contracting
The use of third parties and/or sub-contractors should generally be identified during
the negotiations of the project, and be set out in Annex I ("Description of Work") to
the grant agreement. Otherwise any amounts claimed will generally not be
eligible.
If you wish to use third parties and/or sub-contractors that are not yet included in
Annex I, you should send an amendment request through the project coordinator to
the Commission service that signed the grant agreement. If this request is approved
your grant agreement will be amended and the costs will then be eligible for
inclusion in your cost claims.
In addition, it is underlined that sub-contracting between partners of the consortium
is not permitted under any circumstances.
Furthermore, costs for sub-contracting and the costs of resources made available by
third parties that are not used on the premises of the beneficiary cannot be used as
a basis for calculating indirect costs. In both cases, the overheads are not incurred
by the beneficiary but by the sub-contractor or the third party.
2.3. Depreciation
If you purchase equipment for your project then you are not, in general, entitled to
claim the full cost of the equipment immediately.
Rather, you are entitled to charge to the project the corresponding depreciation of
the equipment over the part of its useful economic life that falls within the project.
The amounts that you can claim annually should be based on the amount of
depreciation that is incurred annually for the equipment. You should use your usual
depreciation policy. Moreover, only the part of the equipment (percentage used and
time of use) dedicated to the project may be charged.
For example, a beneficiary participates in a project that lasts for 3 years. In the
second year of the project it acquires a machine that costs €100,000, and has a
useful economic life of 5 years. The normal accounting policy of the beneficiary is to
apply "straight line" depreciation. The eligible amount would be €40,000, reflecting
the depreciation charge for the 2 remaining years until the end of the project. The
residual value of €60,000 cannot be charged to the project since it falls outside the
project's period.
2.4. Indirect cost models
The FP7 indirect cost reporting methods are:
- Actual indirect costs; possibly using a simplified method, and
- Flat rates based on the real direct costs; 20% or 60% under limited
circumstances.
If you use the "actual costs" reporting method, then this must be based on the real
costs incurred, with evidence that they can be linked to the project.
3. If you have an analytical accounting system then you must charge the indirect costs
that are calculated by this system or chose the 20% flat rate method.
If you can establish the "actual indirect costs", removing ineligible items and using
fair and reliable cost drivers, but you do not have an analytical accounting system,
then you may choose the simplified method for reporting indirect costs or use
instead the flat rate system.
If you are unable to establish the actual costs then you should use a flat rate
method, either the 20% flat rate - optional for any beneficiary - or the 60% flat rate
if you fulfil the eligibility criteria2.
2.5. Indirect costs - Ineligible costs included in the pool of indirect costs
If you use the actual indirect costs model then the indirect costs must have a
relationship with the eligible direct costs attributed to the project.
There are a series of costs that do not meet the cost eligibility criteria or which
cannot be linked to the direct costs of the project. These should be removed from
the calculation of the actual indirect cots. The ineligible costs would include
marketing and sales costs, financing costs, exchange rate losses, goodwill, etc; as
well as those costs with no relationship to the project.
Many examples have been identified of companies including ineligible costs in their
calculation of indirect costs. These have included the costs of purchasing other
companies, costs of sales offices, costs of arranging loans, losses from exchange
rate operations, etc. These are all ineligible items.
In general, beneficiaries are reminded that eligible indirect costs accepted are those
costs that cannot be identified as directly attributed to the project, but which can be
proved to be incurred in direct relationship with the eligible direct costs attributed to
the project.
2.6. Personnel costs - Calculation of productive hours
The calculation of actual personnel costs requires the establishment of the
productive hours for personnel. Productive hours should include all the time that the
employee is available to undertake activities for the organisation (research and non-
research activities). It should exclude weekends and holidays, but should include for
instance teaching time, preparation of proposals, etc.
As a guide, 1680 hours per year is considered to be a benchmark for productive
hours. If your productive hours deviate from this benchmark the difference has to be
substantiated.
Please remember that productive hours may be very different from "billable" hours.
The use of billable hours to calculate the hourly rates to be charged to EU research
projects is not accepted by the Commission.
For example, staff at a beneficiary were contracted to work 36 hours per week. The
calculation of cost charged to customers assumed 30 billable hours per week, and
the 30 hours were used as the basis for calculating hourly rates. However, the 36
hours contracted per week should be used as the basis for calculating rates charged
to EU projects.
2
60 % flat rate is reserved for non-profit public bodies, secondary and higher education establishments, research
organisations and SMEs; without an analytical accounting system.
4. 2.7. Personnel costs - charging of hours worked on the project
You must be able to produce evidence to support the number of hours that each
person has worked on the project. This can be by the use of a reliable time
recording system or adequate alternative evidence giving an equivalent level of
assurance.
We have regularly identified time charged to the project while the staff member is
on leave or attending conferences unrelated to the project, which puts into question
the reliability of the time recording system as a whole. If timesheets are used,
please ensure that they are completed in good time and are properly authorised.
2.8. Personnel costs - Use of average personnel costs
It is now permitted to use average personnel costs for the calculation of staff costs
under certain conditions3. If you are unable to meet the criteria for the use of
average personnel costs, you should declare real costs.
2.9. Payment of salaries to owner/managers of SMEs
Under the FP7 rules SME owners may decide on whether or not to pay themselves a
salary. SME owners who do not have a salary registered in the accounts should
claim a flat rate payment based on the "Marie Curie" rates. Please note that, even if
as an SME owner you are remunerated by means of dividends or withdrawals, you
still need to charge "Marie Curie" flat rates.
2.10. VAT
In the 7th Framework programme identifiable VAT, whether recoverable or not,
is totally ineligible. Please ensure that VAT is always excluded from your cost
claims.
3. CONCLUSION
It is in all our interest to avoid errors in cost claims. Please examine this note, and the Guidance
on financial issues, carefully and let us all try to avoid errors.
3
See the four criteria for using average personnel costs, adopted by Commission Decision 174 of 24/1/2011, in the
FP7 Guide to Financial Issues.