Eligibility of costs in the Horizon 2020 funded EUROfusion project

Presented by:Melanie John, EUROfusion Coordinator Unit, Max-Planck-Institute for Plasma Physics

Garching, 3 December 2015

Other Direct Costs: »Travel, Equipment, Other Goods & Services

H2020 - Eligibility of costs

Actual Costs Unit CostsFlat-rate Costs

Direct Costs Indirect Costs Specific Costs

Subcontracting

Personnel

Travel Equipment

Goods & Services

Mobility

Other Direct Costs

Unit Costs General Eligibility Conditions

Specific Eligibility Conditions

‘Overheads’

Eligibility of Direct Costs

Actual Costs

Direct Costs

Subcontracting

Personnel

Travel Equipment

Goods & Services

Other Direct Costs

Unit Costs

General Eligibility Conditions

Specific Eligibility Conditions

Eligibility of Other Direct Costs

Specific Eligibility Conditions

Direct Costs Costs that are directly linked to the action implementation and can therefore be attributed to it directly.

caused » in full by the action or caused in full by several actions and the »attribution to a single action can, and has been, directly measured

Actual Costs General Eligibility Conditions

Travel Equipment

Goods & Services

Other Direct Costs

Other Direct Costs - general eligibility conditions

Actual General conditions for actual costs to be eligible

‘Eligible actual costs’ must meet the following criteria: OKactually incurred » by the beneficiary

incurred » during the action duration (exception for final report)

indicated » in estimated budget set out in Annex 2

incurred in connection with the action » as described in Annex 1 and necessary for its implementation

identifiable » and verifiable, properly recorded in the beneficiary’s accounts

in compliance » with applicable national law on taxes, labour & social security

reasonable » , justified, complying with principle of sound financial management

Art. 6.1

Other Direct Costs - Travel

» transportation costs of the staff of beneficiaries(flight and train tickets as well as local transport from or to airport or train station, related duties, taxes & charges paid by the beneficiary)

for missions to European countries listed in Annex 2a for which allowances

What is covered? Art. 6.2 dTravel

» transportation costs and subsistence allowance according to national law for:•

• all other European missions andall missions outside Europe

under cost category “Mobility of personnel” can and should be claimed

Travel Costs - Specific eligibility conditions

Specific eligibility conditions Art. 6.2 dTravel

Specific eligibility conditions for travel costs: OKScope and range covered by this budget category:

transportation for missions to European countries listed in Annex 2a for which »allowances under cost category “Mobility of personnel” can be claimed ortransportation and subsistence allowance according to national law for: »

all other European countries• all missions outside Europe•

the travel for which costs are claimed is necessary for the action »

travel costs are limited to the needs of the action »

they are adequately recorded »

they are in line with the beneficiary’s usual practices on travel »

Indicative list of ineligible costs

Travel Costs - ineligible costs

Subsistence allowances covered by budget category “Costs of Mobility” (daily, monthly and family allowance based on unit costs)

Travel costs related to extensions (for other professional or private reasons)

Travel costs related to an event at which the beneficiary carried out work that was not specifically related to EUROfusion

Travel costs exceeding the beneficiary’s usual practices on travel (e. g. business class tickets instead of usually purchased economy class tickets)

Art. 6.2 dTravel

What are the eligible costs to be reported in this cost category?

Travel Costs - Exercise

Researcher travelling to General Assembly meeting in Budapest

Local transport to Munich airport, departure 4:30 am 10 €

Return flight Munich - Budapest: 230 €FareTaxes, fees, charges 180 €

Hotel Budapest, one night: 32,972 Forint 108 €Credit card fees 2 €

Local transport from Munich airport, arrival 7:00 pm 10 €

Travelling researcher qualifies for unit cost allowances under cost category “Mobility of personnel” »Local transport in Budapest (airport - hotel - airport) was organised and paid for by host »Meals (lunch, dinner, breakfast, lunch) were organised and paid for by host »Boat trip on river Danube organised and paid for by host »

Additional information:

Subsistence allowance for meals and accommodation according to national law:

Country meals 24h stay meals - 8h to less than 24h accomodationHungary 30 € 20 € 75 €

TravelCosts

What are the eligible costs to be reported in this cost category?

Travel Costs - Exercise

Researcher travelling to General Assembly meeting in Budapest

Local transport to Munich airport, departure 4:30 am 10 €

Return flight Munich - Budapest: 230 €FareTaxes, fees, charges 180 €

Local transport from Munich airport, arrival 7:00 pm 10 €

Hungary is listed in Annex 2a of the Grant Agreement. The travelling person is a researcher. »The General Assembly meeting is considered a research activity. Therefore, subsistence allowance is covered by daily allowances under cost category “Mobility of Personnel”.

Additional information:

TravelCosts

430 €Total eligible travel costs:

Costs for local transport in Budapest (airport - hotel - airport) organised and paid for by host »institution can be reported by host (cost category: “Other goods and services”)Costs for boat trip on river Danube organised and paid for by host institution are ineligible »

Eligibility of Other Direct Costs

Specific Eligibility Conditions

Direct Costs Costs that are directly linked to the action implementation and can therefore be attributed to it directly.

caused » in full by the action or caused in full by several actions and the »attribution to a single action can, and has been, directly measured

Actual Costs General Eligibility Conditions

Travel Equipment

Goods & Services

Other Direct Costs

Other Direct Costs - Equipment

Purchase costs of durable equipment can only be co-financed if it is necessary for the implementation of the action. Beneficiaries may declare one of the following types of equipment costs:

What can be declared? Art. 6.2 dEquipment

either depreciation costs of equipment, infrastructure or other assets or

full purchase costs of equipment as outlined in GA, Annex 7 AWP 2014, Table 2.3f Purchase of equipment foreseen to be included in the JET facilities or

costs of renting or leasing of equipment, infrastructure or other assets or

costs of equipment, infrastructure or other assets contributed in-kind against payment.

a)

b)

c)

d)

Other Direct Costs - Equipment

Generally, only the depreciation costs will be considered eligible. They must be calculated for each reporting period. The depreciable amount (purchase price) of an asset must be allocated on a systematic basis over its useful life span.

Specific eligibility rules a) Depreciation Costs Art. 6.2 dEquipment

Specific eligibility conditions for equipment costs: OKpurchased in accordance with relevant public procurement rules to ensure » best value for money or, if appropriate, lowest price

written off in accordance with the beneficiary’s » usual accounting practices and with international accounting standards for equipment not exclusively used for the action: »

only • portion of costs corresponding to duration of action is declared only • percentage of actual use and time used for the action is declared amount of use (percentage and time used) is • auditable

Other Direct Costs - Equipment

Specific eligibility rules b) Full purchase costs Art. 6.2 dEquipment

This category covers the full purchase costs of equipment, infrastructure or other assets to be included in JET facilities. The respective items eligible for co-funding are listed in the Grant Agreement, Annex 7 - AWP , Table 2.3 f.

Other Direct Costs - Equipment

Specific eligibility rules b) Full purchase costs Art. 6.2 dEquipment

Specific eligibility conditions for equipment costs: OKpurchased in accordance with relevant public procurement rules to ensure » best value for money or, if appropriate, lowest price

costs concern equipment, infrastructure or other assets (new or second-hand) to »be included in JET facilities

identified in Annex 1 and in the annual work plans approved by the Commission »

capitalised or expensed by the beneficiary in accordance with international »accounting standards and the beneficiary’s usual accounting practice

This category covers the full purchase costs of equipment, infrastructure or other assets to be included in JET facilities. The respective items eligible for co-funding are listed in the Grant Agreement, Annex 7 - AWP , Table 2.3 f.

Other Direct Costs - Equipment

Specific eligibility rules c) Renting or leasing Art. 6.2 dEquipment

comply with the following specific eligibility conditions: OKFor leasing (finance leasing) with the option to buy the durable equipment:

equipment is recorded as an asset of the beneficiary »depreciation costs are declared in accordance with the beneficiary’s usual »accounting practicesleasing costs do not exceed the depreciation costs of similar equipment »and do not include any financing fees »

For renting and operational leasing: equipment rented or leased by the beneficiary is » not recorded as an assetrental or lease costs follow the beneficiary’s usual practices and »do » not exceed the costs of purchasing the equipment

Costs for renting or leasing equipment, infrastructure or assets are eligible for co-funding if they are based on actual costs and

Other Direct Costs - Equipment

Specific eligibility rules d) in-kind against paymentEquipment

Specific eligibility conditions for contributions in-kind against payment: OK

costs for equipment, infrastructure or other assets contributed in-kind against »payment must correspond to amount paid by beneficiary

costs contributed in-kind against payment do not exceed the depreciation costs »of similar equipment, infrastructure or assets

they do not include any financing fees »

must not exceed the depreciation cost of the third party »

third parties and their contributions are set out in Annex 1 of the GA »(Commission may approve in-kind contributions not set out in Annex 1 without amendment if certain requirements are fulfilled)

Indicative list of ineligible costs

Equipment Costs - ineligible costs

purchase of equipment that is not clearly project related (e.g. office furniture, vehicles)

purchase of equipment that has already been co-funded by EU or national funds

Art. 6.2 dEquipment

Declaring the full price of an asset in one single year might be considered either as not compliant with the international accounting standards or as an ‘excessive’ cost, if the asset is expected to be used over more than one year. It may therefore be considered ineligible.

depreciated equipment costs that exceed the equipment’s purchase price

renting or leasing costs that exceed the depreciation costs of similar equipment, infra-structure or assets

financing fees

Eligibility of Other Direct Costs

Specific Eligibility Conditions

Direct Costs Costs that are directly linked to the action implementation and can therefore be attributed to it directly.

caused » in full by the action or caused in full by several actions and the »attribution to a single action can, and has been, directly measured

Actual Costs General Eligibility Conditions

Travel Equipment

Goods & Services

Other Direct Costs

Other Direct Costs - Other Goods and Services

»

Costs for goods that were purchased for the action (or contributed in-kind against payment) and services provided by external service providers contracted to carry out certain activities linked to the delivery of the project, including:

What is covered? Art. 6.2 dOther goods & services

»costs for consumables and suppliesdissemination costs and conference fees for presenting project-related research costs related to intellectual property rights costs for necessary certificates on financial statements and certificates on methodology translation costs ...

»

»

»

Other Direct Costs - Other Goods and Services

Specific eligibility conditions Art. 6.2 dOther goods & services

Specific eligibility conditions for costs for other goods and services: OKGoods and services have been:

either purchased specifically for the action and in accordance with the »relevant public procurement rules to ensure best value for money or, if appropriate, lowest price, or

contributed in-kind against payment by a third party as set out in Annex 1 of »the Grant Agreement

the third parties and their contributions are set out in Annex 1 of the GA »(Commission may approve in-kind contributions not set out in Annex 1 without amendment if certain requirements are fulfilled)

Other Goods and Services - ineligible costs

Purchase of goods that are not clearly project related (e. g. coffee, flowers, presents, silverware)

Costs that are invoiced to a third party and therefore not born by the beneficiary

Unpaid invoice parts (e. g. discounts)

Costs related to an invoice not addressed to the beneficiary respectively not paid by the beneficiary

Costs related to other goods and services not based on proper tender documentation

Indicative list of ineligible costs Art. 6.2 dOther goods & services