• Type: Sub-task
    • Status: Resolved
    • Priority: Critical
    • Resolution: Fixed
    • Affects Version/s: None
    • Fix Version/s: None
    • Component/s: None
    • Labels:
    • Sprint:
      VBC 6 SGA2R
    • TVB-C Task:
      9 Disemination


      from Petra at the beginning of the project:

      ARTICLE 6 – Eligible and ineligible costs
      All costs that occur during the project duration (1.12.2018 – 30.11.2022) need to be properly recorded. This includes working time of the involved staff as well as materials, consumables, travel, publications, patent applications etc. Only eligible direct costs will be reimbursed by the EC.
      ‘Eligible costs’ are costs that meet the following criteria:
      (a) for actual costs:
      they must be actually incurred by the beneficiary;
      (ii) they must be incurred in the period set out in Article 3, with the exception of costs relating to the submission of the periodic report for the last reporting period and the final report (see Article 20);
      (iii) they must be indicated in the estimated budget set out in Annex 2;
      (iv) they must be incurred in connection with the action as described in Annex 1 and necessary for its implementation;
      (v) they must be identifiable and verifiable, in particular recorded in the beneficiary’s accounts in accordance with the accounting standards applicable in the country where the beneficiary is established and with the beneficiary’s usual cost accounting practices;
      (vi) they must comply with the applicable national law on taxes, labour and social security, and
      (vii) they must be reasonable, justified and must comply with the principle of sound financial management, in particular regarding economy and efficiency;
      Direct personnel costs
      A.1 Personnel costs are eligible, if they are related to personnel working for the beneficiary under an
      employment contract (or equivalent appointing act) and assigned to the action (‘costs for employees
      (or equivalent)’). They must be limited to salaries (including during parental leave), social security
      contributions, taxes and other costs included in the remuneration, if they arise from national law or
      the employment contract (or equivalent appointing act).
      The method how to calculate the ‘hourly rate’ of the personnel is described in the Grant Agreement. Special conditions for costs of SME owners as well.
      For the ‘number of annual productive hours’, the beneficiaries may choose one of the following:
      ‘fixed number of hours’: 1 720 hours for persons working full time (or corresponding pro-rata for persons not working full time);
      (ii) ‘individual annual productive hours’: the total number of hours worked by the person in the year for the beneficiary, calculated as described in the Grant Agreement.
      Any subcontracting needs to be described in the Grant Agreement. Minor subcontracting can be justified in the reports.
      Direct costs of subcontracting (including related duties, taxes and charges such as non-deductible value added tax (VAT) paid by the beneficiary) are eligible if the conditions in Article13.1.1 are met.
      Travel costs
      D.1 Travel costs and related subsistence allowances (including related duties, taxes and charges such as non-deductible value added tax (VAT) paid by the beneficiary) are eligible if they are in line with the beneficiary’s usual practices on travel.
      The costs of renting or leasing equipment,
      infrastructure or other assets (including related duties, taxes and charges such as non-deductible value added tax (VAT) paid by the beneficiary) are also eligible, if they do not exceed the depreciation costs of similar equipment, infrastructure or assets and do not include any financing fees.
      Indirect costs (overhead)
      are eligible if they are declared on the basis of the flat-rate of 25% of the eligible direct costs (see Article 5.2 and Points A to D above), from which are excluded:
      (a) costs of subcontracting and
      (b) costs of in-kind contributions provided by third parties which are not used on the beneficiary’s premises;
      Ineligible costs
      ‘Ineligible costs’ are:
      (a) costs that do not comply with the conditions set out above (Article 6.1 to 6.4), in particular:
      costs related to return on capital;
      (ii) debt and debt service charges;
      (iii) provisions for future losses or debts;
      (iv) interest owed;
      (v) doubtful debts;
      (vi) currency exchange losses;
      (vii) bank costs charged by the beneficiary’s bank for transfers from the Commission;
      (viii) excessive or reckless expenditure;
      (ix) deductible VAT;
      costs incurred during suspension of the implementation of the action (see Article 49);
      (b) costs declared under another EU or Euratom grant (including grants awarded by a Member
      State and financed by the EU or Euratom budget and grants awarded by bodies other than the
      Commission for the purpose of implementing the EU or Euratom budget); in particular, indirect
      costs if the beneficiary is already receiving an operating grant financed by the EU or Euratom
      budget in the same period, unless it can demonstrate that the operating grant does not cover
      any costs of the action.

      18.1 Obligation to keep records and other supporting documentation
      The beneficiaries must — for a period of five years after the payment of the balance — keep records
      and other supporting documentation in order to prove the proper implementation of the action and
      the costs they declare as eligible.
      They must make them available upon request (see Article 17) or in the context of checks, reviews,
      audits or investigations (see Article 22).

      Please record all working hours of the personnel, involved in any WP-task (not administration) with time sheets, a model timesheet is attached.
      You need to report on the person hours or person months (pm) per person and per Work package in the report to the EC.
      In case a person is working exclusively for the project, you can complete the attached declaration.
      See ‘how to calculate the hourly rate’ above.

      Please also record all direct material/travel… costs in your books, deduct VAT in the claim. Please allocate also these costs to Work packages.

      N.b.: All these records stay in your books. They will not be submitted to the EC. Nevertheless, they must be available in case of an audit (happens not seldom).

      You need to calculate the sum of all your direct costs in the frame of the reporting (Month 18, 36, end). The costs will be assessed against the Description of Action and your described activities in the related period. After acceptance of the costs by the EC, the costs plus indirect costs (25%) will be reimbursed.
      e.g.: If you claim 80.000 € costs, and all costs are accepted by the EC, the EC will reimburse 80.000 € + 20.000 € = 100.000 €.
      TP21 will coach the reporting and inform all partners in due time.

      A ‘certificate on the financial statements’ (by external independent auditors)
      (drawn up in accordance with Annex 5 of the Grant Agreement) needs to be supplied at project end, if you request a total contribution of EUR 325 000 or more.

      Find more details in the Grant Agreement.

      From Katarina on 30.03

      For the reporting we need to claim real direct costs, therefore we need to use the timesheets of persons who have done the work, calculated according to the rules of the financial guidelines. You need to calculate the hourly rate for the claim. The hourly rate depends on the methodology that you chose for calculating, and the calculation should be based on the last fully completed year, therefore that would be 2019. For more information, please refer to the Grant Agreement, Article 6 – Eligible and Ineligible Costs, below in that section you can find explanations for calculation methods.

      When the outcome is not exactly the same as what was estimated in the proposal it can be the case of an expected/ typical deviation or an unusual/critical deviation. In principal there is no need to be concerned, and if there were a major deviation, you would just need to supply a justification of the case for the reporting.
      No we do not need an amendment because it is a shift within your own budget without any change in the work program.

      For the second question, you are right that for a person who works exclusively on TVB-Cloud project for the time period only a declaration form is needed. The amount of information that you have provided in the form is sufficient. Please just make sure to tick the correct period of time that the person works on the project exclusively.

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                  Time Tracking

                  Original Estimate - 1 week
                  Time Spent - 2 days, 30 minutes Remaining Estimate - 2 days, 7 hours, 30 minutes
                  2d 7h 30m
                  Time Spent - 2 days, 30 minutes Remaining Estimate - 2 days, 7 hours, 30 minutes
                  2d 30m