budget planning for EU external actions

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

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  • For the second component - CBC -three worksheets per applicant plus one joint (7 total)
  • *Insofar as project management and related costs are not defined in the activities portion of the application, they are still shown in the budget as human resources costs
  • The only exception regarding taxation is in salaries which are not VAT, but are nonetheless shown in gross amounts.
  • Calculation and claiming expenses for staff must follow the following rules:Calculation of salaries must be based on actual direct costs (gross salaries in accordance with national law) of each employee who is actually involved in the project activities. Calculation must be based on the hourly rate (timesheet) resulting from the actual costs of personnel of the claimed period (adequacy of the cost);For people who don't work full time should indicate % of time spent on the project (in explaining is necessary to emphasize that whether a person is an employee of the institution / organization / applicant / partner or would it be employed only for purposes of implementing the project). Employees on part-time is also filled tzv.timesheet that shows the work done by days / months.All costs for subcontractors must be expressed under category 5. Other costs related to the activity which will be involved.Employees in institutions that are beneficiaries of state / local budgets can not be paid from the budget of the project but their contribution to (work / cost) on the project can be displayed only as co-financing. Institution / user of grant can hire a new person on the project in accordance with national legislation.
  • Includes all other (external) costs such as:Cost of publications - preparation and printing of brochure design, research, studies (such services are usually subcontracted)The costs of external experts / associates – costs per diems, travel and accommodation partners' employees or other participants who are not employees of the project but participate in project activities, are also acceptable and should be anticipated in the budget (paragraph 5 Other costs, costs of external associates).Recommendation: To avoid additional administration costs of subcontractors, proposed that the fee agreed to be involved and travel costs, accommodation costs and allowancesThe costs of organizing events (eg meetings, conferences, training, workshops and seminars) that are directly linked to project objectives may include the rental of rooms and equipment, costs for travel and accommodation for participants, where necessary, translations, materials / prospectus and costs for food.The costs of promotion and information - presentation of project results is the responsibility of the project implementers (eg, publications, brochures, press releases, ads, newspaper, website, etc.);Cost of audit - audit for grants over € 100,000 is requiredThe costs of translation of materials / workshopsFinancial services (cost of bank guarantees, etc.) - the costs directly resulting from the implementation of the Agreement with an emphasis on the cost of financial services (transaction costs, fees and financial guarantees)Rental equipment is eligible if it is directly related to the objectives of the project.
  • Must see Programme Guide for the programme that you have decided to establish the amount of own contribution.The amount of funding depends on the programme!
  • Ineligible costs are also: housing, taxes on the purchase of real estate, buying gifts and art, special awards and bonuses to employees, unpaid partial amounts of invoices (eg, discounts for cash), buying a business / stock shares, dividends and fees, fines, financial penalties and costs of legal disputes.
  • budget planning for EU external actions

    1. 1. How to create a budget?
    2. 2. Background informationBudget - 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 items2. Budget justification3. Sources of funding
    3. 3. How to plan a budget?BUDGET – must be directly associated with the activities listedin the Application form costs that ariseimplementation means a,b,c, are relating the meansof 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. 4. From activities to budget itemsActivities Means Costs Budget itemsTraining of Trainers (1 foreign expert and Daily fee for 1. Human resourcestourism 1 local), project manager, external experts (for 5. Services, conferencesprofessionals project coordinator, materials, the days of lectures and seminarsabout recreation food / coffee and preparation),tourism (for team membersopportunities in employed by thexy area (2×3 institution thatdays, 30 people, implements this isnonresidential) 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. 5. The general rules for eligibility of costsEligible costs are those that are necessary to perform theproject activities.They should be within expressed rules for a givenCfP/programme documentation and general EC rules .Project costs must be incurred within the projectsprogramme area. All IPA programs are exempt from paying VAT and all amounts in the budget must be shown without VAT!*
    6. 6. Eligible costsTotal eligible Part of own The required costs contribution contribution
    7. 7. Budget item headings: Before1. Human resources proceeding, look2. Travel costs at a Budget3. Equipment and supplies template!4. Local office costs5. Other costs/services6. Other7. Subtotal direct eligible costs of the Action8. Contingency reserve9. Total direct eligible costs of the Action10. Administrative costs
    8. 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. 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. 10. 2. Travel costsTravel costs of all participants, (partners), in theproject.Each trip must be justified by project activitiesand necessary for successful projectimplementation.
    11. 11. Example – Travel costs in the budget planning2. Travel62.1. 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 € 0.172.2 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/tripSubtotal Travel € 3,799.50 € 3,693.25
    12. 12. 3. Equipment and SuppliesAll costs of purchase / rent of equipment that is needed toimplement the project (eg, projector, computer, technicalequipment, car, etc.)Cost of equipment can be approved only if they preciselyindicate which activities are related and why they arenecessary to implement these activitiesThe user of the application will have to clarify what willhappen with this equipment when project activities endThe rule is that the equipment remains in use to end users ofthe project in order to satisfy long-term goals
    13. 13. Example - Equipment and Supplies in the budget planning3. Equipment and supplies7 Per Per3.1 Purchase or rent of vehicles vehicle € 0.00 vehicle € 0.003.2 Furniture, computer equipment € 0.00 € 0.003.3 Machines, tools… € 0.00 € 0.003.4 Spare parts/equipment for machines, tools € 0.00 € 0.003.5 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 € 27,290.00Subtotal Equipment and supplies € 54,580.00 € 54,580.00Purchase or rent of vehicle - This budget category includes rental or purchaseof a vehicle only if it is really needed to be carried out the project. If theanticipated rent of vehicles for a specific event such as a seminar - then thiscost is not reported here but under 5.7. Costs of conferences / seminars.
    14. 14. 4. Local office costsComplete only if the projecttakes 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. 15. 5. Other Costs/ServicesNeed 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. 16. Example – Other Costs/Services in the budget planning5. Other costs, services85.1 Publications9 € 0.00 € 0.005.1.1 Design of environmental info signs per design 1.00 € 1,500.00 € 1,500.005.1.2 production and installation of environmetal info signs per sign 6.00 € 150.00 € 900.005.1.3 production and instalation of trail markers per marker 30.00 € 150.00 € 4,500.005.1.4 Design and printing of the Guideline for cave guides Per guideline 100 € 5.00 € 500.00 Per guideline 100 € 5.00 € 500.005.1.5 Printing guideline for sea kayak guides Per guideline 500 € 2.00 € 1,000.00 Per guideline 500 € 2.00 € 1,000.005.2 Studies, research9 € 0.00 € 0.005.3 Auditing costs per audit 2.00 € 2,000.00 € 4,000.00 € 0.00 per5.4 Evaluation costs evaluation 2.00 € 2,000.00 € 4,000.00 € 0.005.5 Translation, interpreters Per project 1 € 3,000.00 € 3,000.00 Per project 1 € 3,000.00 € 3,000.00 per5.5.1 translation of text for environmental info signs translation 1.00 € 2,100.00 € 2,100.005.6 Financial services (bank guarantee costs etc.) € 0.00 € 0.005.7 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 peopleper 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 € 680.005.8. Visibility actions € 0.00 € 0.00 5.8.1 Design and printing broshures promoting nature per item 25000 € 1,750.00based 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 per5.8.4 Press conferences CRO confernece 3.00 € 450.00 € 1,350.00 confernece 2.00 € 450.00 € 900.00 per per5.8.5 Press conferences for the media MNE 3 € 1,290.00 2 € 860.00 conference € 430.00 conference € 430.005.9 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 € 4,500.00Subtotal Other costs, services € 72,290.00 € 18,940.00
    17. 17. 6. OtherCosts necessary for the implementation of projectactivities, not explicitly stated in some form of budgetaryitems such as:- Infrastructure Works (Eng. Small Scale Infrastructure)- Mapping the territory- Organization of various training, (without outsourcing),etc.
    18. 18. Example – Other in the budget planning6. 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 0.00Subtotal Other 87,200.00 19,200.00
    19. 19. 8. Contingency reserveFor unforeseen expenses that can’t be predictedat the stage of project preparation, can be usedonly with prior written approval of theContracting AuthorityExamples: changes in laws, damage to existinginfrastructure in execution of works, etc. Look at the note!
    20. 20. Example - Contingency reserve in the budget planning7. Subtotal direct eligible costs of the Action (1-6) 407,844.00 176,267.008. Provision for contingency reserve (maximum 5% of 7, 1.00 0.05 20,392.20 1.00 0.05 8,813.35subtotal 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. 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. 22. Example – Administrative costs in the budget planning9. Total direct eligible costs of the Action (7+ 8) 428,236.20 185,080.3510. Administrative costs (maximum 7% of 9, total 1.00 0.07 29,976.53 1.00 0.07 12,955.62direct 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. 23. Own and Contracting Authority Contribution-Own contribution for any Own contribution includesproject is expressed in a % as funding from:defined within the project Applicant’s financialdocumentation, (e.g. for IPA contribution, (usually shown15% 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. 24. Requested fundingOwn contribution from the Contracting Total budget Authority (Grant)
    25. 25. Justification and Clarification of the BudgetThe allowances can be paid off only in case of travel with overnight stays! In calculatingthe allowance it’s necessary to check the current list:http://ec.europa.eu/comm/europeaid/perdiem/index_en.htmIs’s necessary to specify the mileage (KM) for travel, useful link to justify expenses iswww.viamichelin.comAlways choose most suitable means of transport!Only economy class of vehicle is acceptable (train, bus, boat, airplane) andaccommodation 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. 26. Contributions in kindAll material / immaterial contributionswhich are not included in the budget,but contribute to the quality and overallachievement of the project, (e.g.,donated conference space...), can notbe shown as a own contribution!
    27. 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

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