GRIP- IT

Governance of Regionally Integrated Projects using Innovative Tools. (Structural Funds implementation in an integrated approach)

EXPENDITURES

INFO DAY FOR SUBPROJECT PARTICIPANTSUDINE 17th October

Regulation

Commission Regulation (EC) No 438/2001 of 2 March 2001

INTERREG IIIC Programme manualChapter 5 - Financial Frameworkwww.grip-it.info/download/eu_programme_manual.pdf

Co-financing structure

Basic rules

Only cost related to the development of the subproject

They have to be occurred and paid out during the subproject realization:

after 1.7.2006 and before 30.6.2007

Ineligible Expenditure I.

VAT and other taxes and charges if these are legally recoverableAny costs paid outside the eligible period of the operationExpenditure which is already supported by a European, or other international or national grantService charges arising on finance leases and hire purchase agreementsDepreciation of assets purchased with the help of Government or European Community grantsmaintenance of a capital facility

Financial expenses:Loan chargesDebit interestCharges for financial transactionsForeign exchange commissions and lossesother purely financial expenses

Costs involved in closing the company,Compensation for loss of office,Fines, financial penalties and expenses of litigation,Contingencies and contingent liabilities,Bad debtsIneligible Expenditure II.

Income

revenue received by an operation from e.g.:

SalesRentalsServicesenrolment fees or other equivalent receiptsreduces the total amount of eligibile expenditures!

Subproject budget

Lead participant principle

Joint budgetCosts for the whole of the operationDivided in 6-month periods (due to operation cash-flow)Divided in Budget linesDivided in Components

Staff costs

Personel costsSalary, tax, employers contribution for nacional social security schemescalculated in accordance with the national legislationregular employment contractsThese costs must be certified on the basis of documents that are requiered by national auditor

Administration costs

all direct general costs (office rent, mail, fax, phone, copying costs, consumables, etc.)

and indirect general costs (overhead related to the operations activities, based on real costs and calculated on a pro rata basis according to a duly justified, fair and equitable method)

Overhead costs linked to the services provided by external experts must be listed in the budget line External expertise

External expertisecosts paid on the basis of contracts and against invoices to external service providers who are sub-contracted to carry out certain tasks of the operation (e.g. studies and surveys, translation, management or audit of the operation if sub-contracted, etc.)Public procurement rules must be observed in selecting a company or individual to provide external expertiseExternal expertise related to meetings and events, and promotion should not occur under External expertise but under the relevant budget linesExternal expertise realated to meeting and events, organised by you Meetings and eventsExternal expertise realted to promotion campaing of the subproject Promotion

Travel and accommodation

Cost related with participation in meetings and seminarssubsistence allowances, travel allowances

most economic way of transport must be used

Daily allowances and accommodation costs must be in line with the conditions set for public authorities of the respective Member State

Meetings and eventscosts related to the organization of meetings

renting of premises and equipment, interpretation, printing, etc.

paid on the basis of contracts with and invoices from external providers

public procurement rules must be observed in selecting a company or individual, which will carry out the assignment

Promotion costs

press releases, inserts in newspapers, leaflets, TV shows, brochures, newsletters and other publication costs not linked to specific events or seminars

These costs shall be paid on the basis of the contracts with and invoices from the service providers

Public procurement rules must be observed in selecting company or individual, which will carry out the assignment

InvestmentsINTERREG IIIC isnt focused on investment promotionPurchases, construction work connected with the achievement operation objectives

Other eligible costsrelevant to the operation should be included in this budget linespecify the nature of these costs

In-Kind Contributions

Only voluntary unpaid work is considered as an in-kind contribution

Staff costs, if properly accounted for and reported, are not considered as in-kind costs, but as cash contribution

For that reason in practice in-kind contributions do not play an important role in the financing of INTERREG IIIC operations

Thank you for your attention

Successful implementation of your subproject