30th meeting of the Expert Group on DA and IA for

the ESI Funds

Fiche No 37 based on Fiche No 21Article 14(1) ESF Reg.

Brussels, 18 May 2015

Structure of the intervention

1.Overview of Article 14(1) ESF mechanism2.The empowerment and the delegated act (DA)3.The Swedish experience

Part 1:Overview of Article 14(1) ESF

mechanism

Article 14(1) ESF Regulation

Is relevant for all types of ESF operations (no minimum/maximum value).

But:• No cross-financing is allowed• The COM will only consider assessing data set

when the scheme is expected to cover more than EUR 1 million over the programming period.

Two main options for the coverage of costs with 14(1) ESF:

•All the eligible costs of the operation are covered and declared on the basis of Article 14(1) ESF (example 1)•Part of the eligible costs are covered by Article 14(1) ESF (example 2)

Example 1 — an operation where all eligible costs are covered by Article 14(1) of the ESF Regulation

Commission

Managing Authority

Delegated act: EUR 700 / student who completes a training

The expenditure included in a payment application sent to the Commission will be based on the justified indicator included in the DA.

 

Managing Authority

Beneficiary

The Managing Authority has four options for reimbursing the beneficiary:  Option 1: the standard scale of unit costs (Article 14(1) of the ESF Regulation)

is applied to the beneficiary Option 2: real costs are applied to the beneficiary Option 3: another SCO system is applied to the beneficiary Option 4: a combination of real costs and SCOs is applied to the beneficiary

Example 1 — an operation where all eligible costs are covered by Article 14(1) of the ESF Regulation

  Total eligible expenditure = standard scale of unit costs under Article 14(1) ESF

 Commission

Managing Authority

Delegated act: EUR 700 / student who completes the training

EUR 700 x 50 students who complete the training = EUR 35 000 

Managing Authority

Beneficiary

Option 1:Article 14(1) is applied to the

beneficiary

Option 2: real costs are applied to the beneficiary

Option 3: another SCO system is applied

EUR 700 x 50 students who complete the training = EUR

35 000

Invoices/salary slips etc. = EUR 36 000

Lump sum of EUR 35 500 if at least 45

students complete the training = EUR 35 500

Example 2– Basis for reimbursement linked to an operation where eligible costs are partly covered by a standard scale of unit costs under Article 14(1) of the ESF Regulation

Commission

Managing Authority

The payment application sent to the Commission includes: the operation’s direct staff costs, based on the justified indicator

(delegated act: EUR 20/hour); the operation’s other direct costs, declared based on real costs; the indirect costs, declared based on a flat rate.

Managing Authority

Beneficiary

The Managing Authority should apply the same methodology: the operation’s direct staff costs should be based on the justified indicator

(delegated act: EUR 20 / hour); the operation’s other direct costs should be declared based on real costs; the indirect costs should be declared based on a flat rate.

Example 2– Basis for reimbursement linked to an operation where eligible costs are partly covered by a standard scale of unit costs under Article 14(1) of the ESF Regulation

Methodology used to cover the different categories of costs in one operation

Standard scale of unit costs under

Article 14(1) of the ESF Regulation

Real costsArticle 67(1) (a) CPR

Flat rate financingArticle 68(1) (b) CPR

Expenditure of one operation =

Delegated act: direct staff costs =

EUR 10/hour

Direct costs other than staff costs

Indirect costs15 % x direct staff costs

Commission

Managing Authority

EUR 10 x 120 hours = EUR 1.200

EUR 80015 % x EUR 1.200 =

EUR 180

Managing Authority

Beneficiary

EUR 10 x 120 hours = EUR 1.200

EUR 80015 % x EUR 1.200 =

EUR 180

Part 2:The empowerment and the

delegated act (DA)

Article 14(1) ESF Reg.

The Commission may reimburse expenditure paid by MS on the basis of standard scales of unit costs and lump sums define by the Commission.

The Commission shall be empowered to adopt DA (…) concerning the types of operations covered, the definitions of the standard scales of unit costs and lump sums and their maximum amounts, which may be adjusted according to the applicable commonly agreed methods, taking due account of experience gained during the previous programming period.

The empowerment means…

• That there is no obligation to act for the Commission.

• But there is a strong political commitment from the Commission to support MS in implementing SCOs.

The unit costs and lump sums…

Included in the DA could be:• Designed by the Commission• Based on data from the MS

The DA will be…

Made of two parts:1. The main part applicable to all MS2. The annexes (one per MS)

There will be a unique DA amended when deemed necessary.

The main part of the DA

Articles 1 to 4 cover:• Subject matter and scope• Types of operations• Definitions of standard scales of unit costs and

lump sums and their amounts• Adjustment of amounts

The Annex of the DA

Is made of two parts:1. Definition of standard scales of unit costs/lump

sums2. Adjustment of amounts

Part 3:The Swedish experience

Indicator 1: hourly staff cost PA1

Hourly wage group

Stockholm (SE 11)(SEK)

All regions except Stockholm (SE 12-33) (SEK)

1 237 2422 266 2633 307 2924 349 3245 433 3796 574 5357 A 765 7657 B 829 6477 C 543 444

Indicator 2: hourly participant cost PA1

Region: Stockholm (SE 11)(unit cost per hour - amount in SEK)

All regions except Stockholm (SE 12-33) (unit cost per hour - amount in SEK)

229 234

Indicator 3: hourly staff cost PA2&3Occupational category Region: Stockholm (SE

11)

(unit cost per hour - amount in SEK)

All regions except Stockholm (SE 12-33) (unit cost per hour - amount in SEK)

Project leader for operations where the total eligible expenditure as stated in the document setting out the conditions for support is above 20 million in SEK) 535 435Project leader for operations where the total eligible expenditure as stated in the document setting out the conditions for support is below or equal to 20 million (in SEK) / assistant project leader for operations where the total eligible expenditure as stated in the document setting out the conditions for support is above 20 million (in SEK)

478 405Project worker 331 300Project economist 427 363Administrator 297 270

Indicator 4: hourly participant cost PA2&3 (1/4)

Social assistance (unit cost per hour) (SEK)

Age 18-24 years 3225-29 years 4030-64 years 46

Indicator 4: hourly participant cost PA2&3 (2/4)

Activity grant and development allowance (unit cost per hour) (SEK)

Age 15-19 years 1720-24 years 3325-29 years 5130-44 years 5545-69 years 68

Indicator 4: hourly participant cost PA2&3 (3/4)

Social security and sickness benefit (unit cost per hour) (SEK)Age

19-29 years (social security benefit) 5130-64 years (sickness benefit) 58

Indicator 4: hourly participant cost PA2&3 (4/4)

Sickness benefit, rehabilitation benefit, and work and professional injury benefit (unit cost per hour)

(SEK)

Age – 19 years 4820-64 years 68

Please send your comments on the Fiche No 37 to EMPL-SCO-JAP@ec.europa.eu

By Friday 22/05 cob at the latest.

Thank you!