EUROPEAN COMMISSION

                         Direction A: Ressources
                         Unité A-4: Financial management

                                               ANNEX IV


Commission européenne, L-2920 Luxembourg. Téléphone: (352) 43 01-1.
Bureau: B4/433. Téléphone: ligne directe (352) 43 01-4301 37347.
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1.   DEFINITION OF A GRANT AGREEMENT (GA)................................................... 4

2.   AUDIT CLAUSE ........................................................................................................ 4

     SUBCONTRACTOR .................................................................................................. 4
     3.1. What is a third party? ........................................................................................ 4
     3.2. What is a co-beneficiary? .................................................................................. 5
     3.3. What is an external sponsor?............................................................................. 5
     3.4. What is a subcontractor? ................................................................................... 6
     3.5. Possible roles of the different participants involved in the project ................... 6
4.   HOW FILL IN THE APPLICATION......................................................................... 7

5.   .ESTIMATE OF COSTS AND INCOME .................................................................. 8
     5.1. Expenditure / Eligible costs............................................................................... 8
     5.2. Categories of direct eligible costs ................................................................... 11
             5.2.1.       Costs of the staff assigned to the action ............................................ 11
             5.2.2.       Travel and subsistence costs for the staff involved in the
                          action ................................................................................................. 16
             5.2.3.       Purchase cost of equipment ............................................................... 16
             5.2.4.       Costs of consumables and supplies ................................................... 18
             5.2.5.       Costs entailed by other implementation contracts............................. 18
             5.2.6.       Any other direct costs........................................................................ 19
             5.2.7.       Indirect costs of implementation ....................................................... 20
     5.3. Non-eligible costs:........................................................................................... 20
     5.4. Income 21
6.   COMMISSION GRANT........................................................................................... 21
     6.1. Amount of grant .............................................................................................. 21
     6.2. Pro rata rule and non-profit rule ...................................................................... 22
     6.3. Payments.......................................................................................................... 24
     6.4. Calculation of final grant - Final accounts ...................................................... 24
     6.5. Account keeping.............................................................................................. 25
     6.6. Use of the Euro................................................................................................ 25
7.   TRAVEL AND SUBSISTENCE EXPENSES ......................................................... 25
     7.1. Transport.......................................................................................................... 25

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             7.1.1.      General rules...................................................................................... 25
             7.1.2.      Travel by rail ..................................................................................... 25
             7.1.3.      Travel by air ...................................................................................... 26
             7.1.4.      Travel by car...................................................................................... 26
             7.1.5.      –Shuttels, taxis and parking.............................................................. 27
     7.2. Daily subsistence allowances .......................................................................... 27
             7.2.1.      Calculation......................................................................................... 27
             7.2.2.      Expenses covered .............................................................................. 27
     7.3. Accommodation .............................................................................................. 28
     7.4. Supporting documents ..................................................................................... 30
     PROJECTS/ACTIONS.............................................................................................. 31

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A grant is a direct financial contribution, by way of donation, from the budget, in order to
finance an action intended to achieve an objective forming part of a European Union
A successful application for a grant for implementing an action results in a grant
agreement to be signed by the European Commission and the applicant.


A grant agreement always includes a control clause empowering officials of the
Commission and Court of Auditors of the European Communities to carry out an audit of
the use to which the grant has been put. By submitting an application, the applicant
agrees to collaborate fully if the action concerned is selected for an audit.


      3.1. What is a third party?

General rule: As the implementation of the action is the responsibility of the
beneficiaries (who must sign the grant agreement (GA)), beneficiaries should have the
capacity and shall have the necessary resources to carry out the work themselves.
Therefore the rule is that the costs eligible in an action must be incurred by the
beneficiaries, (the signatories to the GA).

Special situations: However, in some circumstances the GA accepts some third parties
whose costs may be eligible.

Accordingly to the Financial Regulation ( article 120 FR) and the implementing rules (
article 184a IR) applicable to the budget general of the European Communities, where
implementation of the action requires financial support to be given to third parties, the
beneficiary of a Community grant may give such financial support provided that the
financial support is not the primary aim of the action, the conditions for the giving of
such support are defined in the grant agreement (e.g. reasons for involving a third party,
the tasks to be performed, an estimation of the costs and the resources allocated to the
action) and the amounts concerned are small ( the maximum amount of financial support
that may be paid to third parties by a beneficiary shall be EUR 100 000, with a
maximum of EUR 10 000 per each third party).

A third party is a legal entity which is not a beneficiary of the GA, and is not a signatory
to it. Third parties only make available their resources to a beneficiary usually on the
basis of a previous agreement and in order to support a beneficiary by providing

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Costs incurred by third parties may be eligible under certain conditions:

   •    The third party, the tasks to be performed, an estimation of the costs and the
        resources allocated to the project must be identified and mentioned in the
        application form
   •    The third parties are bound to carry out the action on the same terms as the
   •    A letter of intent to carry out the action must be signed by each associate third
   •    In all cases, the beneficiary retains sole responsibility for the work of the third
        party and has to make sure that the third party complies with the provisions
        of the GA.
   •    Beneficiary reimburses the third party: the reimbursement of the third party
        for these costs will be a cost for the beneficiary, who in turn will be able to claim
        it as an eligible cost. There is a prior agreement that defines the frame in which
        these resources are made available and the reimbursement to the third party
        covers only costs, and there will not be a profit for the third party.
   •    The costs of the resources of a third party charged to the project by a beneficiary
        must always be the actual costs incurred by the third party. Like any other cost,
        these costs must comply with the conditions of Article II.14- Eligible costs of the

       3.2. What is a co-beneficiary?

in the cases where the financial support is more than EUR 10 000, the only solution is to
sign a multi-beneficiary grant agreement.

The co-beneficiary is a beneficiary of the GA, and is a signatory to it, directly or through
a power of attorney for the purposes of the signature of the agreement to the co-ordinator

The co-beneficiary shall participate in the action, for which their costs are borne and to
which they contribute financially;

The co-ordinator (main partner) and its co-beneficiaries (associated partners) shall agree
upon appropriate arrangements between themselves for the proper performance of the
action. The co-operation agreement shall include all aspects necessary for the
management of the partners and the implementation of the action;

The co-beneficiaries shall forward to the main beneficiary the data needed to draw up the
reports, financial statements and other documents provided for in the agreement
including its annexes;

       3.3. What is an external sponsor?

This is the case where a third party makes available some of its resources to a beneficiary
participating in his project, normally through a financial contribution to the project.
External sponsor have no contractual relationship with the Commission (Eurostat), nor
do they receive any EC funding.

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A letter committing the financial contribution must be signed by each external
sponsor of the action

       3.4. What is a subcontractor?

The general rule is that beneficiary shall implement the action and shall have the
necessary resources to that end. However, it is accepted that, when the GA provides for it
accordingly, and as an exception certain parts of the work may be subcontracted.

A subcontractor is a legal entity which is not a beneficiary of the GA, and is not a
signatory to it. It appears in the project because one of the beneficiaries appeals to its
services to carry out part of the work, usually for specialised jobs that it cannot carry out
itself or because it is more efficient to use the services of a specialised organisation.

The subcontractor is defined by certain characteristics:

   •    The agreement is based on "business conditions"; this means that the
        subcontractor charges a price, which usually includes a profit for the
        subcontractor. This makes it different from other third parties' contributions
        where the third party charges only for the costs of the activity.
   •    The subcontractor works without the direct supervision of the beneficiary and is
        not hierarchically subordinate to the beneficiary (unlike an employee). The
        working place of the subcontractor, its accounting rules and internal organisation
        are also different.
   •    The subcontractor carries out parts of the work itself, whereas other third parties
        only make available their resources to a beneficiary usually on the basis of a
        previous agreement and in order to support a beneficiary by providing resources.
   •    The subcontractor's motivation is pecuniary. Its interest in the project is only the
        profit that the commercial transaction will bring. A subcontractor is paid in full
        for its contribution made to a project by the beneficiary with whom it has a
        subcontract. As a consequence subcontractors do not have any access or rights to
        the results of the action. Subcontractors are service providers to a partner who
        fully funds (100 %) their activity;
   •    Subcontractors shall not contribute financially to the project.
   •    The costs of the subcontract are part of the direct costs of the beneficiary and are
        registered in the accounts of the beneficiaries. The price of the subcontract is an
        eligible cost for the beneficiary, which like other costs must comply with the
        general eligibility criteria mentioned in Article II.14 of GA
   •    The responsibility vis-à-vis the EC for the work subcontracted lies fully with the
        beneficiary. The work that a subcontractor carries out belongs to the beneficiary
        in the GA. A subcontractor has no rights or obligations vis-à-vis the Commission
        or the other beneficiaries. However, the beneficiary must ensure that the
        subcontractor can be audited by the Commission or the Court of Auditors.
   •    Subcontracting may concern only certain parts of the action. The subcontracted
        parts should in principle not be "core" parts of the action.

       3.5. Possible roles of the different participants involved in the project

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                         Project       Project core          Eligible       Financial      Contractual
                       coordination    participation        costs to be    contribution    relationship
                                                           borne by the   to the project     with the
                                                              project                       awarding
Beneficiary                Yes              Yes                Yes            Yes              Yes
Co-beneficiary             No               Yes                Yes            Yes              Yes
Third party                No               No                 Yes            Yes               No
Subcontractor              No               No             Yes, invoice       No                No
                                                              to the
                                                           and /or co-
External sponsor            No              No                 No             Yes              No


The applicant for a grant must complete the standard application form. Using this form,
the applicant must give information on:

     •    administrative details;

     •    the action to be supported (description of the action, expected results, timetable);

     •    the amount of grant requested;

     •    any other sources of financing;

     •    estimated costs and income connected with the action.

The application can be submitted electronically, including the summary of the estimated
budget, but a paper version has to be posted before the deadline indicated in the call for
proposals/invitation to submit proposals. If the application has not been sent
electronically, a diskette or other removable storage medium containing the summary of
the estimated budget is to be included with the paper version.

In principle, proposals may be submitted in any official language of the European Union.
However, in order to facilitate assessment by evaluators, an English translation should
accompany any proposal written in another language. Therefore, applicants should
submit their applications both in the hard copy (i.e. paper) and in electronic format in
their own language and in English.

Signing the form occurs through signing the declarations of honour

N.B. When the first application for a grant is submitted, or when the bank details are
changed, one of the following must be submitted: either the financial information sheet
duly, completed and signed by the bank and the account holder, or a document issued by
the bank containing the following information: account number, name of account holder,
bank code, address of the branch, etc. The IBAN code must be indicated.

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All grant applications must be supported by an estimated budget showing all the
costs and revenue that the applicant considers necessary to carry out the project. This
forward budget must be presented using form “B” of this submission set (part B.1 for the
costs and part B.2 for the revenue).

The estimated budget must:

– give an indication on the different types of human resources and their related costs
(technical, administrative, etc.);
– be sufficiently detailed to allow identification, monitoring and control of the
operation(s) proposed;
– be in balance, i.e. total revenue and total expenditure must be equal;
– be expressed in Euro;

This part deals with all the eligible costs defined below. The amount representing the
total cost of every budgetary items (i.e. total staff cost, total travel / subsistence cost, etc)
shall be rounded to the nearest whole number (no decimals please).

All costs must be given in euro (NOT KILO €) and should exclude value-added tax
(VAT), unless the applicant can show that he is unable to recover it according to the
applicable national legislation.

      5.1. Expenditure / Eligible costs

Maximum grant is based on an estimation of eligible costs prepared by the beneficiary
and approved by the Commission (see Article 3 of the GA – Financing of the action).

Estimation of eligible costs of the action must be shown in detail in the estimated budget
included in the "Eurostat Standard grant application form" and subsequently in Annex II
of the GA

In order to be considered for reimbursement costs incurred by the beneficiaries in the
course of the implementation of the action must satisfy the eligibility criteria laid down
by the GA

Article II.14.1 of the grant agreement defines eligible costs as actually costs incurred by
the beneficiary, which must satisfy the following general criteria:

– they are incurred during the duration of the action as specified in Article I.2.2 of the
  agreement, with the exception of costs relating to final reports and certificates on the
  action’s financial statements and underlying accounts;
– they are connected with the subject of the agreement and they are indicated in the
  estimated overall budget of the action;
– they are necessary for the implementation of the action which is the subject of the
– they are identifiable and verifiable, in particular being recorded in the accounting
  records of the beneficiary and determined according to the applicable accounting
  standards of the country where the beneficiary is established and according to the
  usual cost-accounting practices of the beneficiary;
– they comply with the requirements of applicable tax and social legislation;
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– they are reasonable, justified, and comply with the requirements of sound financial
  management, in particular regarding economy and efficiency.

The beneficiary’s accounting and internal auditing procedures must permit direct
reconciliation of the costs and revenue declared in respect of the action with the
corresponding accounting statements and supporting documents.

• They must be connected with the subject of the grant agreement and they must be
  provided for in the technical annex and in the estimated budget annexed to it.

  These costs must be directly linked to the subject matter and scope foreseen. The costs
  must be coherent with the terms of reference (technical annex) and the results

  To be considered eligible, all costs must have been entered as eligible costs in the
  estimated budget annexed to the grant agreement.

  Any amendment of the estimated budget which would alter the action planned, the
  base or allocation of Community financing, may be allowed only if it has been the
  subject of a written supplementary agreement between the parties ( see article II.13 of
  the GA). It should, however, be noted that, by way of exception the GA authorise
  certain transfers of costs between eligible direct cost items in the estimated budget,
  without a supplementary agreement. The article I.3.4 of the GA limit these transfers to
  20% of the amount of each item to which the costs are transferred, provided that such
  transfers do not affect the completion of the action.

• They must be necessary for the performance of the action covered by the

  The concept of correctly matching estimated costs and expected achievements is a
  fundamental criterion: the beneficiary must be able to justify the resources used to
  attain the objectives set in line with the objectives of the grant agreement.
  These costs must be essential for the performance of the operation in question and
  would not be incurred if the action did not take place.

• They must be reasonable and justified and they must accord with the principles of
  sound financial management, in particular in terms of value for money and cost-

  The principles of economy, efficiency and effectiveness refer to the standard of “good
  housekeeping” for spending public money effectively. Economy can be understood as
  minimising the costs of resources used for an activity (input) while providing
  appropriate quality. It can be linked to efficiency, i.e. the relationship between the
  outputs and the resources used to produce them. Effectiveness measures the extent to
  which the objectives have been achieved and the relationship between the intended
  impact and the actual impact of an activity. Cost-effectiveness means the relationship
  between project costs and outcomes, expressed as costs per unit of outcome achieved;

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• They must be generated during the lifetime of the action. They must be actually
  incurred by the beneficiaries, be recorded in their accounts in accordance with
  applicable accounting principles, and be declared to follow the requirements of the
  applicable tax and social legislation;

     Only costs generated during the lifetime of the action can be eligible. As a result, the
     period during which the action runs determines the period of eligibility of the
     corresponding costs (Article I.2 of the GA – Durations). Costs related to preparing
     and submitting the proposal can never be charged to the action.

     It should be remembered that:

     - no grant may be awarded retrospectively for actions already completed;
     - a grant may be awarded for an action which has already begun only where the
     applicant can demonstrate the need to start the action before the agreement is signed,
     but then the
     period of eligibility of costs will start no earlier than the date on which an admissible
     grant application is submitted.

     The Implementing Rules of the Financial Regulations foresees an exception for costs
     incurred in relation to final reports as well as audit certificates on the final financial
     statements. These last costs may be incurred during the period of submission of
     reports and other documents referred to in Article I.5 – Submission of reports and
     other documents.

     It should be noted that the cost must be generated during the lifetime of the action,
     which does not necessarily mean that the cost has in fact to be paid during that
     lifetime1 It may be that some costs have not been paid when the request for the final
     payment is sent, in particular because the beneficiary is waiting for the final payment
     of the grant in order to be able to pay this expenditure. This situation is acceptable if it
     is certain that a debt exists (invoice or equivalent) for services or goods actually
     supplied during the lifetime of the action and the final cost is known; the Commission
     is entitled to check that payment was actually made by asking for supporting
     documents to be produced when the payment has been made or during an ex post
     control to be carried out later.

     According to the Article II.10.4 of the GA the beneficiary have to pay all the invoices
     and expenditure within a maximum time period of 6 months as from the receipt of the
     final payment of the balance of the grant by the Commission.

• They must be actually incurred by the beneficiaries, be recorded in their accounts in
  accordance with applicable accounting principles, and be declared to follow the
  requirements of the applicable tax and social legislation

    So costs relating to services or equipment supplied in order to carry out the action may be invoiced and
      paid after the action has been completed, provided that the service/goods were in fact supplied during
      the lifetime of the action and that this is indicated on the invoice

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   Payments will be made on the basis of real costs incurred by the beneficiary and
   recorded in its accounts. That means that they must be real and are not estimated,
   budgeted or imputed costs.


• They must be identifiable and verifiable. The beneficiaries’ accounting and internal
  auditing procedures must permit direct reconciliation of the costs and revenue
  declared in respect of the action with the corresponding accounting statements and
  supporting documents.

   Costs must ultimately be incurred by the beneficiary (or co-beneficiary in the case of a
   multi-beneficiary grant).

   Supporting documents must be produced for all costs. The beneficiary (or co-
   beneficiary) must enter costs in his accounts in accordance with the applicable rules.

   Costs which cannot be justified are, as matter of principle, to be considered not
   eligible. The GA state that “The beneficiaries’ internal accounting and auditing
   procedures must permit direct reconciliation of the costs and revenue declared in
   respect of the action with the corresponding accounting statements and supporting

   The purpose of this provision is to give some assurance on the source of the costs and
   receipts declared, which must come directly from the beneficiary’s accounts and be
   backed up by appropriate supporting documents.

   However, when the GA allows the beneficiary of a grant for action to charge
   overheads at a flat rate, these overheads do not need to be supported by accounting
   documents (see Article II.14.3 of the GA).

       5.2. Categories of direct eligible costs

The eligible direct costs of the action are those costs which, with due regard to the
conditions of eligibility referred to above, are identifiable as specific costs directly linked
to performance of the action and which can therefore be booked to it directly. In
particular, the following direct costs are eligible:

             5.2.1. Costs of the staff assigned to the action

Three components enter in the determination of the real cost of staff assigned to a

• the people who were assigned to the project,

• the time the people assigned to the project have spent on carrying out the project
  (through, for example, a manual or electronic time registration system).

• the remuneration and connected charges the employer incurred for these people
  (through, for example, extracts from the payroll system).

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Staff assigned to the action is understood to mean permanent or temporary staff
employed by the beneficiary (or the associated or co-beneficiaries). The application form
allows for a detailed overview of the type of staff working on the specific action
(permanent staff versus temporary recruitment specifically for implementing the action).

If they are service providers, the corresponding costs must be presented under the
heading of implementing contracts or subcontracting.

Consequently, to be eligible as staff costs

  •   The staff must be directly hired by the beneficiary in accordance with its national
      legislation. The beneficiary has a contract (under labour law) to engage a physical
      person to work for it and some of that work involves tasks to be carried out under
      the EC project.
  •   The staff must work under the sole technical supervision and responsibility of the
      beneficiary (i.e. the work is decided, designed and supervised by the beneficiary).
  •   The staff must be remunerated in accordance with the normal practices of the
      applicant and included in the salary payroll.

Staff cost components

According to this Article II.14 of the GA, the cost of the staff assigned to the action,
comprising actual salaries plus social security charges and other statutory costs included
in the remuneration may be eligible, provided that this does not exceed the average rates
corresponding to the beneficiary's usual policy on remuneration. This Article reflects the
requirements of sound financial management, in particular regarding economy and
efficiency, laid down in Article 172 (a) of the Implementing Rules. Its purpose is to
avoid any unjustified increase in salaries based on the origin of the funding (national or
The cost of staff assigned to the action comprises actual gross salaries plus social
security charges and other costs corresponding to statutory obligations included in the
remuneration (net amount WITHOUT overheads).
In case the applicant is obliged to pay non periodical salary components (e.g. Christmas
allowances, holiday allowances, an additional month's pay at the end of the year, etc.)
these costs can be allocated to the action on a pro rata temporis basis.

Due to the diversity of national legislative conditions in remunerating employees it is not
possible to give an exhaustive list of eligible staff cost components, but beneficiaries
have to abide by their respective national regulation.

Employer's contribution such as social insurance contributions, healthcare, pension, early
retirement, labour disability, unemployment, taxes on wages can also be allocated to the

Non statutory, non mandatory and discretionary premiums or bonuses are not

Calculating staff costs

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The staff costs will be charged to an action on the basis of the time actually spent on the
action by the staff of the beneficiary and will be calculated on the basis of real eligible
salary cost of each person assigned to the action.

Only the costs of the actual hours worked by the persons directly carrying out work
under the action may be charged. Working time represents the number of hours made
available by the employee in a year after the deduction of weekends, annual holidays,
legal holidays and illness. The total number of working days per year can be calculated
by deducting the number of days corresponding to week-ends, the legal holidays, the
individual number of annual holidays and number of sick leave days for the staff
assigned to the action, from the total number of days during a year. The total number of
working hours per year could be calculated by multiplying the total number of working
days by the number of normal working hours per day

In case the unit costs would be calculated on the exclusive basis of a number of hours
lower than the total number of working hours (i.e. the so-called 'direct productive hours'),
a non-eligible cost (i.e. a cost not directly connected with the subject matter of the
agreement) would be integrated in what is presented as the eligible cost. The use of this
basis leads to an erroneous hourly rate.
"Direct productive hours” exclude activities such as training hours, conferences,
seminars, studies on general information, etc. However, all these activities are included
in the "Working time". The correct basis for the calculation should not exclude these
activities as also explained in during the annual Working group on financial partnership
of 26 September 2007. It was clarified that reference to that total working time should be
made to the number of real "working hours" and not to "direct productive working hours"
or any other similar concept (whatever the wording or the label attached to it). A question
was clarified on how the real hourly staff cost rates should be determined if a distinction is
made into 1,400 direct hours per year and 680 indirect hours per year. For example the
following answer was provided for a fictive employee:

             Annual direct hours                      1,400

             Annual indirect hours                     680    (of which 380 hours vacation
                                                                   and 300 hours training)

             Annual total hours                       2,080

             Annual salary including
             social security contributions
             and other statutory costs:         € 41,600

The eligible hourly rate is calculated by dividing the annual salary of this person by their
hours of presence, i.e. € 41.600 / 1.700 hours = 24.47 €/hour. The 1,700 hours are made
up of the 1,400 direct hours and the 300 hours spent on attending training sessions. If the
person spent 400 hours on an action, the eligible related cost of staff would be €9,788

On average, the Commission (Eurostat) considers a figure of around 210-220 days per
year and full-time employee should be reasonable and representative in most cases.

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While average rates may be used for calculating staff cost estimations for grant
applications the final financial statement has to be calculated with actual salaries per

Salary slips and time sheets could be required as evidence of these costs.

Time recording

An effective time-recording system (a system which certifies the reality of the hours
worked) is a requisite for the eligibility of the costs.

Working time to be charged must be recorded throughout the duration of the action
(contemporary registration needed) by any reasonable means (e.g. timesheets).

Employees have to record their time daily using a paper or a computer-based system. The
time-records should be authorised by the project manager or other superior.

Any time recording ( e.g. timesheets) should meet at least the basic requirements
indicated below:

  - title of the action and Estat grant agreement number as indicated in the GA;
  - full name, signature and date of signature of the employee directly contributing to the
  action and their immediate superior.
  - amount of hours claimed on the action;
Concerning actions financed by European Commission Budget, the complete time
recording system should enable reconciliation of total hours in cases where staff work on
several tasks during the same period.

In cases where the staff is recruited specifically for implementation the action (temporary
staff) and the link between this temporary recruitment and the implementation of the
action is established in the contract, the contract provisions should be sufficient to justify
time recording and staff costs eligibility.


• The cost of administrative and support staff whose contribution to the action are
eligible as direct costs provided that time spent in the implementation of the action is
recorded by an effective time recording system (e.g. timesheets).

• In cases where an electronic system for recording the time is not available (e.g.
technical problems, missions, teleworking, etc.) the time must be recorded by another
system that allows the identification of the hours worked for the action.

• Overtime: may be accepted if there is a system that allows the identification of the
hours worked overtime for the action and is in conformity with the national regulation.
This system must allow the discrimination between hours worked in the working day and

• Staff costs of national administration: according to the new Implementing rules of
the Financial Regulation "the salary costs of personnel of national administrations are
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eligible to the extent that they relate to the cost of activities which the relevant public
authority would not carry out if the project concerned were not undertaken".

• Particular conditions concerning costs of civil contracts
It is to be remembered that remuneration costs under "civil" contracts depart from the
definition of staff costs, as strictly interpreted, since staff costs only refer to costs of
persons hired under "employment" contracts, i.e. contracts governed by national labour
laws. This will consequently not apply to people hired under "employment contracts".

It seems necessary to explicitly establish the particular conditions that costs of civil
contracts shall meet to be eligible either under the "personnel costs" heading or under the
"subcontracting costs" heading, beyond the general eligibility criteria mentioned in
Article 172a IR and article II.14.1 of the grant agreement:

Eligibility as sub-contracting costs: This would imply that the provisions of article II.9
of the grant agreement, about the award of procurement contracts, are duly respected.
This seems reasonable considering that only those workers who can qualify as experts
would benefit from this arrangement.

Eligibility as staff costs: Beyond the following-detailed criteria (points (a) to (d)), it
could also be underlined that costs of "civil" contracts may only be eligible if this
mechanism complies with the requirements of applicable tax and social legislation
(article II.14.1, fifth indent), in other terms, if the use of "civil" contracts concerns non-
regular functions and specific tasks that do not usually fall under "labour" contracts and
does not have the effect of circumventing the beneficiaries' tax and social obligations.

(a) Whether the costs of employing a natural person under a "civil" contract are not
    significantly different from the personnel costs of employees of the same category
    working on a project under labour law contract when the same kind of work and
    expertise is required;

(b) Whether the beneficiaries consistently apply the same hourly rate to the same kind of
    work (same category of staff, same expertise required) whatever the origin of the
    project funding;

(c) Whether the payments are made according to the contract;

(d) Whether the costs related to "civil" contracts may be considered to be "staff costs" in
    the cost statements submitted to the Commission, depending on the following
    additional criteria:

    -    The beneficiary has a contract to engage a natural person to work for it, and
         some of that work involves tasks to be carried out under the Union project;
    -    The natural person must work under the instructions of the beneficiary (i.e. the
         work is decided, designed and supervised by the beneficiary);
    -    The natural person must work in the premises of the beneficiary (except in the
         case of teleworking agreed between both parties);
    -    The result of the work belongs to the beneficiary.

                                                                            Version 1/03/2010 for grant beneficiaries who wish to declare staff costs on the basis
               of their official minimum tariffs per grade

Grant beneficiaries who wish to declare an action's staff costs on the basis of their
official tariffs per grade might do so under certain conditions. They need to inform
Eurostat of that fact in the grant application and provide a copy of these official tariffs.
Eurostat will then include a special condition in the grant agreement stating that the
eligible staff costs will be determined on the basis of the five following elements:
- the identity of the individual people that were assigned to the action,
- the time actually spent by these people on the action,
- the grade in which these people were classified during the action through appropriate
- the actual official tariffs that were in force during the action and which fixed the pay
scales of minimum salary rates applicable per grade in the beneficiary’s organisation, and
- an official confirmation from the organisation's payroll department that these people
were actually remunerated during the eligible period.
This option is only possible where the grant beneficiary applies official tariffs which are
applicable to his organisation and which represent the minimum pay scales per grade.
For the purpose of the grant agreement this means that such 'minimum staff costs' can be
equal to or lower than the actually incurred staff costs, but not higher.

             5.2.2. Travel and subsistence costs for the staff involved in the action
The standard grant agreement states that travel and subsistence allowances for staff
taking part in the action can be considered eligible “provided that they are in line with
the beneficiary’s usual practices on travel costs or do not exceed the scales approved
annually by the Commission” ( article II.14.2 of the grant agreement)
Only travel and living expenses that are directly linked to the project, concerning precise
activities, clearly identifiable and pertaining to the implementation of the action shall be
considered as eligible.
Travel and insurance costs are based on the real costs incurred. The most economical
tariffs must be used. Travel insurance expenses, up to a reasonable amount, are eligible.
Accommodation and living expenses are eligible provided that:
· they are necessary and reasonable, taking account of the location of the stay;
· they are calculated in accordance with the internal regulations of the beneficiary in

The internal rules of the partners have precedence. In case the beneficiary has no usual
practices on travel costs, the travel and subsistence allowances for staff taking part in the
action shall not exceed the scales approved annually by the Commission (please, see
section 7)

             5.2.3. Purchase cost of equipment

                                                                        Version 1/03/2010

The purchase cost of equipment (new or second-hand), provided that it is written off in
accordance with the tax and accounting rules applicable to the partner and generally
accepted for items of the same kind. Only the portion of the equipment's depreciation
corresponding to the duration of the action and the rate of actual use for the purposes of
the action may be taken into account by the Commission. Applicant shall inform the
Commission about their internal rules on depreciation of equipment.

The applicant must detail in the "application form" the price of purchasing of the
equipment, the rule of depreciation and the rate of actual use for the purposes of the
The percentage of use of the equipment on the project must be communicated in the
application form and must be controllable, for example, this percentage of use should be
coherent with the time worked by the staff assigned to the action.
The depreciation period and rules are calculated according to the customary practice of
the beneficiary and the country in which they are based.

The complete calculation to enter the equipment expenses in the accounts is as follows:

       (A / B) x C x D

       A = duration in months during which the equipment has been used within the
       framework of the project

       B = depreciation period

       C = real cost of the material excluding VAT

       D = percentage of use of the equipment on the project


During the first year (12 months), the admissible costs for computer equipment
(depreciation period equal to 36 months) of a value of 10,000 EUR, used 50% of the time
within the framework of the project, amounts to 10,000 x 33.33% (12 months/36 months)
x 50% = 1,666 EUR.

During the second year, the admissible costs likewise amount to 1,666 EUR if the
percentage of use of the material or equipment remains the same. If, during this second
year, the material or equipment is not used within the framework of the project, no costs
are eligible (depreciation or other).

The use of the partner's existing equipment and installations which are indirectly linked
to implementation of the action may be partly covered via the indirect cost.

Specific software will be considered under this cost nature if it is purchased for the

Common software should be covered by the 7% flat rate maximum overheads allowance
(see point 7).

                                                                             Version 1/03/2010

Can depreciation costs for equipment used for the action but bought before the start of
the action be eligible?

If the equipment has not yet been fully depreciated according to the usual accounting
practices of principles of the beneficiary, then the remaining depreciation (according to
the amount of use, in percentage and time) can be eligible under the action. Only the
portion of depreciation according to the rules of depreciation and the rate of actual use
for the purposes of the action is eligible.

Equipment bought in January 2008, with a depreciation period of 48 months according to the
beneficiary's accounting practices. This equipment is necessary for the implementation of the
action. If a GA is signed in January 2010 (when 24 months of depreciation have already passed),
and the equipment is used for this GA, the beneficiary can declare the depreciation costs incurred
under the action for the remaining 24 months. In any case, only the proportion of the equipment’s
depreciation corresponding to the duration of the action and the rate of actual use for the
purposes of the action may be taken into account by the Commission.

             5.2.4. Costs of consumables and supplies

Costs of consumables and supplies, provided that they are identifiable and assigned to
the action.

The terms “identifiable” and “assigned to the action” are of utmost importance in order
to avoid double cover by way of indirect costs. The nature of the action and the fact that
the costs are specific to the action are key factors justifying direct cover of certain costs.

Costs that can typically be presented under this item are postal charges, envelopes,
telephone costs or purchase of small technical items, provided that they fulfil the above
mentioned criteria and are directly connected with the implementation of the action.
Certain costs can be totally eligible for certain actions and others rendered eligible with
considerable difficulty (for example: telephone and postal costs which although eligible a
priori within the framework of major field surveys are not so easily eligible in the context
of methodological research). In the second of these two cases, the difficulty in
demonstrating these costs and the disproportional charges generated by the calculation,
suggest considering them in the indirect costs determined as a percentage of the eligible
direct costs.

             5.2.5. Costs entailed by other implementation contracts

Costs entailed by other contracts awarded by the partner for the purposes of carrying out
the action, provided that the conditions laid down in Article II.9 of the grant agreement
template are met.

                                                                         Version 1/03/2010

These are all the other contracts (except for those for the purchase of equipment
mentioned above) that the applicant would have to conclude for the purposes of carrying
out the action. This heading can cover the costs of subcontracting or provision of services
as part of the action (consultancy fees, provision of external staff, hire of material or
specific equipment, production of documents, studies, etc.).

In order to avoid situations where beneficiaries simply act as intermediaries
subcontracting all or virtually all of their actions, the subcontract only covers the
execution of a limited part of the action. . Core elements of the project cannot be

The applicant must, at least, be in a position to demonstrate that he has chosen the
subcontractor offering the best value for money, that is to say, to the one offering the best
price-quality ratio, in compliance with the principles of transparency and equal treatment
of potential contractors and taking care to avoid any conflict of interests. In that respect,
national public bodies have to follow their national public procurement rules.

When it is planned to use subcontracting to carry out an action, it is necessary to verify
the underlying motives and the total percentage of the subcontracted part in relation to
the total cost, in order to assess the application. More extensive explanations are
necessary when the value of the subcontract exceeds 20% of the total estimated value of
the action.

Subcontracting must be mentioned in the application and will be included explicitly in
the agreement. If it is requested during the implementation of the action, it must have the
prior written agreement of the Commission by way of addendum to the agreement.

The particular case of consultants
Consultants are natural (physical) persons, working for one or more beneficiaries in an
action granted by Eurostat. Please note that external experts or consultants who work on
the action and are fully paid by the beneficiary on the basis of an invoice shall be
considered as a subcontracting cost and not as staff costs.

            5.2.6. Any other direct costs

Costs arising directly from requirements imposed by the grant agreement (dissemination
of information, specific evaluation of the action, audits, translations, reproduction, cost
of events organised by partners in the context of the action, etc.) subject to the prior
written approval of the Commission.

A sufficient level of detail has to be indicated in the application form to enable the
verification of the estimations made (e.g. for translation: the number of pages and from
which language to which language; for dissemination: the number of pages, the use of
colour or specific paper, etc.).

Costs relating to the preparation of final technical and financial reports and costs relating
to audit certificates are eligible even if they have not been incurred during the duration of
the action but not later then the date required for submitting the final report as
determined in the grant agreement.
                                                                        Version 1/03/2010

If the Community contribution is EUR 300 000 or more a certificate on the financial
statements and underlying accounts, produced by an approved auditor or in case of
public bodies, by a competent and independent public officer is compulsory. The
certificate shall certify that the costs declared by the beneficiary in the financial
statements on which the request for payment is based are real, accurately recorded and
eligible in accordance with the grant agreement

In the case of a grant agreement for an action with multiple beneficiaries, such costs may
also include specific costs incurred by the co-ordinator for fulfilling his responsibilities
in his capacity of the body responsible for the overall management of the action and the
coordination of the beneficiaries.

            5.2.7. Indirect costs of implementation

Indirect costs are eligible in compliance with article II.14.3 of the grant agreement

The indirect costs incurred in carrying out an action may be eligible for flat-rate funding
fixed at not more than 7% of the total eligible direct costs. They need not be supported
by accounting documents.

The 7% indirect cost is calculated on all the direct costs, including subcontracting.
However in cases where the cost of subcontracting represents more than 20% of the total
cost of the action, the indirect costs should be calculated from all other direct costs
excluding subcontracting.

      5.3. Non-eligible costs:

The following items of costs shall not be eligible and should therefore not be included
under any headings in the application form and declaration of expenditure:

   o expenditure incurred before or after the period of eligibility for the expenditure
      indicated in the Grant Agreement;
   o costs declared and borne in connection with another project or work programme
      receiving a Community grant;
   o contributions in kind (see Article II.14.5 of the Grant Agreement);
   o return on capital;
   o debts and the debt service charges;
   o provisions for losses or potential future liabilities;
   o provisions for liquidation, winding up of business or breaking off a lease;
   o provisions for contractual or moral obligations;
   o interest owed;
   o doubtful debts;
   o exchange losses;

                                                                          Version 1/03/2010

     o VAT, unless the beneficiary can show that it is unable to recover it according to
       the applicable national legislation
        Evidence must be in the form of an official document, from the appropriate tax
        authority, certifying that the beneficiary is not subject or is exempt for the actions
        in question, and not by the simple fact that the beneficiary does not wish to be
        subject to VAT.

     o excessive or reckless expenditure;
     o entertainment or representation expenses;

        Furthermore, often small gifts and/or incentives are given in data collection
        exercises to people interviewed in order to have better quality replies to the (often
        long) questionnaires with a view to improving the data quality.

        Although such expenditure is part of the overall cost of an action and it is
        recognised as lowering the overall costs of an action, the expenditure related to
        this cannot be considered eligible for community funding.

       5.4. Income

       All income, whether resulting from the beneficiary’s own contribution or from
       third parties, must be estimated and declared. Income includes the beneficiary’s
       own contribution and the contributions of third parties.

       The income side of the estimated budget should show:

       – the direct monetary contribution from the applicant and, if applicable, its
       contribution from its own resources (e.g. cost of personnel involved,… );

       – the direct monetary contribution from any other fund providers;

       – any income generated by the project (e.g. the yield from sales of publications
       during the operation, or the fees charged to participants attending a conference);

       – the grant sought from the Commission, with a breakdown where several
       applications have been made to the Commission;


       6.1. Amount of grant

             The maximum amount of any grant is the total amount of actual eligible
             costs. Furthermore, co-financing is obligatory, the applicant being required
             to find the money to pay for part of the action. The minimum co-financing
             percentage is indicated in advance.

                                                                            Version 1/03/2010

      6.2. Pro rata rule and non-profit rule

                 The pro rata rule requires that, where actual allowable expenditure is less
                 than the estimate of action costs, the Commission grant will be limited to the
                 percentage indicated in the agreement.

                 The non-profit rule states that a grant may not have the purpose or effect of
                 producing a profit for the beneficiary. A profit is defined as a surplus of
                 receipts over the costs of the action, not only all costs but also the income
                 side of the action needs to be looked at.


A Community contribution of 37.000 € (34,5794 %) has been awarded for a grant for an
action with the following estimated budget:

Eligible costs                                   Income

Staff costs                        40.000Beneficiary      50.000

Travel and subsistence             60.000Receipts from the action

Equipment costs                                  Other co-financer      20.000

Consumables and supplies                         Community contribution 37.000 = 34,5794%

Subcontracting costs

Other direct costs

Total eligible direct costs       100.000

Indirect costs (flat rate 7%)       7.000

Total cost of the action          107.000Total income                   107.000

                                                                               Version 1/03/2010

After the end of the action, the actual costs differ from what was estimated, without there
being a request from the beneficiary to amend the estimated budget. Also, the beneficiary
has been able to generate more income of the action than initially foreseen. The final
financial statement shows the following figures:

                                Actual    Eligible

                                Costs     Costs            Income

Staff costs                     50.000    48.000           Beneficiary            11.600,04

Travel and subsistence          40.000    40.000           Receipts from the action20.000

Equipment costs                 10.000            0        Other co-financer      30.000

Consumables and supplies                                   Community contribution 32.559,96


Subcontracting costs

Other direct costs

Total eligible direct costs     100.000   88.000

Indirect costs (flat rate 7%)     7.000    6.160

Total cost of the action        107.000   94.160                                  94.160

Keeping the budgeted amounts of financing from the beneficiary and the Commission
would result in surplus, given the increase in other funding sources. Since it is the
beneficiary's merit to have found other funding sources, the Commission's contribution is
first determined with the ceilings mentioned in the grant agreement and based on the
eligible costs of the action. Of the direct costs are first excluded the non-eligible
elements (increase in staff costs exceeding 20% and unforeseen equipment costs) and
the 7% indirect cost flat rate is then applied, resulting in a total eligible cost of 94.160 €.
With the original percentage, the Community contribution is therefore 32.559,96 €,
leaving 11.600,04 € to be co-financed by the beneficiary.

                                                                 Version 1/03/2010

6.3. Payments

      The rule for all grants is that payment is either made in one single payment
      or a pre-financing payment and the final payment of the balance.

      Pre-financing payments will not normally be made for Community
      contributions of less than EUR 100 000. However, at the specific request of
      the beneficiary, pre-financing may be paid for grants of EUR 50 000. In
      Eurostat’s case, the pre-financing payment, where applicable, is fixed at
      40% of the amount of the grant awarded. The pre-financing payment will be
      made automatically following the signing of the grant agreement by the two
      contracting parties, without the beneficiary needing to request it. On the
      basis of its risks assessment Eurostat may ask the beneficiary to lodge a
      guarantee in advance, for up to the same amount as the pre-financing.

6.4. Calculation of final grant - Final accounts

      A copy of the final situation of the income and expenditure for the action,
      certified as being true and correct by a duly authorised representative of the
      beneficiary, is to be submitted within the deadline laid down in the
      agreement. If these documents are not produced during this period and the
      beneficiary fails to respond to the reminders sent to him in accordance with
      the procedure laid down in the agreement, no sum will be paid.

      The final accounts must cover the whole action in terms of eligible costs and
      must be submitted together with a full summary statement of expenditure
      and income for the action.

      The Commission shall be entitled to withhold payment if the final report and
      request for payment of the balance are not submitted by the stipulated date.
      The Commission will pay the balance as laid down in the agreement, on the
      basis of an examination of the final accounts.

      In no circumstances may the total amount paid by the Commission be higher
      than the maximum laid down in the agreement, even if the actual costs
      exceed those in the budget set out in Annex II of the specific grant

      The beneficiary accepts that the grant is limited to the amount needed to
      balance the expenditure and income for the action, and that in no
      circumstances shall he make a profit from the grant.

      The maximum amount of the grant to be paid by the Commission will be
      reduced proportionately if examination of the final accounts in relation to the
      total budget as estimated in the agreement reveals that:

      – total income exceeds total expenditure;

      – income generated by the action exceeds the total income shown in the
        budget estimate;

      – eligible real costs are less than shown in the budget estimate.

                                                                        Version 1/03/2010

     6.5. Account keeping

            In order to provide final accounts based on actual expenditure and income
            the partners should, where appropriate, keep separate accounts to record
            expenditure and income relating to the action.

            The accounts and originals of all supporting documents shall be kept for
            auditing purposes for five years after the date of receipt of the final payment.

     6.6. Use of the Euro

            The maximum grant indicated in the agreement is expressed in euros. All
            amounts due will be paid in Euros.

            Actual expenditure and income shown in the financial statements in national
            currency are converted into euros at the exchange rate established by the
            Commission and published in the Official Journal of the European Union
            applicable on the first working day of the month following the end of the


     In case the partners have no usual practices on travel costs, the travel and
     subsistence allowances for staff taking part in the action shall not exceed the scales
     approved annually by the Commission and the following rules on travel and
     subsistence expenses shall apply:

     7.1. Transport

            7.1.1. General rules

            Staff travelling on mission must use the most appropriate and cost-effective
            means of transport for achieving the purposes of the mission in the interests
            of the service.

            Travel expenses incurred for the purposes of a mission are reimbursed
            exclusively on the basis of the cost of the most appropriate and cost-
            effective means of transport between the place of employment and the place
            of the mission. Reimbursement will take account of the times of meetings,
            and will be based on the best rates available from the preferential rates
            negotiated and other promotional fares available on the market through the
            approved travel agency.

            7.1.2. Travel by rail

            Travel expenses are reimbursed on presentation of supporting documents on
            the basis of the
            first-class rail fare, including the cost of seat reservations and any

                                                                            Version 1/03/2010

                 7.1.3. Travel by air

                 As the agency is unable to issue tickets for "low-cost" companies, which
                 may provide an efficient solution for certain destinations, staff going on
                 mission may make reservations and payment directly by Internet and claim
                 reimbursement on their statement of mission expenses

                 (1) Air travel may be booked:

                 (a) in economy class or equivalent, at the lowest available rates, taking into
                 account the times of meetings and/or special features of the mission, for all
                 segments that involve less than four hours continuous flying time;

                 (b) in business-class or equivalent, at the lowest available rates, taking into
                 account the times of meetings and/or special features of the mission, if the
                 journey includes at least one segment involving at least four hours
                 continuous flying time..

                 (2) Tiring journeys

                 Where a journey involves a time difference of more than four hours, a day’s
                 rest is allowed at the place of the mission before official engagements begin.

                 7.1.4. Travel by car

                 The use of a car is authorised where, in view of the specific features of the
                 mission, it improves the cost effectiveness of travel and/or of the mission
                 itself, particularly where the vehicle is shared by a number of colleagues.

                 Car hire

                 Staff going on mission may reserve hire cars through the approved travel
                 agency or directly with a hire company. The category of vehicle must
                 correspond to the requirements of the mission, taking account of the number
                 of passengers, the distance to be travelled and the place of mission.

                 Private car

                 The Commission strongly advises staff against using their own cars when
                 going on mission.

                 Travel by private car for professional reasons

                 Where use of a private car is necessary for professional reasons, travel costs
                 are reimbursed on the basis of the first-class rail fare. However, when staff
                 members carry out missions in special circumstances where there are
                 definite disadvantages to any alternatives, authorising officers may decide to
                 grant the staff members concerned a kilometre allowance2. In such cases,

    The current rate is EUR 0.22 per kilometre

                                                                Version 1/03/2010

     other expenses (motorway tolls, parking, ferry crossings, etc.) can also be
     reimbursed on presentation of the corresponding supporting documents.

     7.1.5. –Shuttels, taxis and parking

      The Commission encourages the use of public transport. Airport transfers
      are reimbursed on request at the price of the shuttle service or on
      presentation of supporting documents.

      Taxis may be used for transfers to airports or stations at the place of
      employment or the place of mission where public transport is not a suitable
      alternative (for example, for safety reasons). Expenses on taxis are
      reimbursed on presentation of the original supporting documents duly and
      clearly completed.

      Parking expenses are reimbursed on the same terms as expenses on taxis

7.2. Daily subsistence allowances

      Reimbursement will be made according to the ceilings related in table

     7.2.1. Calculation

        Daily subsistence allowances are calculated according to the length of the
        • six hours or less: 20% of the daily allowance and any transport costs on
        the basis of supporting documents, up to EUR 0.22/km if a private car is
        used or the first-class rail fare if the staff member travels by train;
        • more than six hours but not more than twelve hours: half the daily
        • more than twelve hours, but not more than twenty-four hours: the daily
        • each successive 12-hour period: half the daily allowance.
        The daily allowance rates are subject to periodic review.
        The following give entitlement to daily allowances:
        – rest days granted by the Commission under the rules on tiring journeys
        – days spent at the place of mission between meetings, where justified by
        the requirements of the mission and where cost-effective.
     7.2.2.   Expenses covered

        The daily subsistence allowance is paid as a flat-rate amount and covers
        breakfast and the two main meals, and any other personal daily expenses,
        including local transport.

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7.3. Accommodation

    Accommodation costs are reimbursed together with the daily subsistence
    Accommodation is reimbursed within the ceilings related in table below.
    Staff going on mission are required to stay in facilities formally serving that
    purpose. Evidence of payment (hotel bills or equivalent) must comply with
    local tax legislation.
    Such evidence must be attached to the statement of expenses and must state
    separately any breakfast taken as breakfast is, by default, covered by the
    daily subsistence allowance.

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DESTINATIONS             Daily allowance Maximum         hotel Per diem rates
                               in €      price in €

Austria                          95                130                   225
Belgium                          92                140                   232
Bulgaria                         58                169                   227
Czech Republic                   75                155                   230
Cyprus                           93                145                   238
Denmark                         120                150                   270
Estonia                          71                110                   181
Finland                         104                140                   244
France                           95                150                   245
Germany                          93                115                   208
Greece                           82                140                   222
Hungary                          72                150                   222
Ireland                         104                150                   254
Italy                            95                135                   230
Latvia                           66                145                   211
Lithuania                        68                115                   183
Luxembourg                       92                145                   237
Malta                            90                115                   205
Netherland                       93                170                   263
Poland                           72                145                   217
Portugal                         84                120                   204
Romania                          52                170                   222
Slovak Republic                  80                125                   205
Slovenia                         70                110                   180
Spain                            87                125                   212
Sweden                           97                160                   257
United Kingdom                  101                175                   276

The scales approved annually by the European Commission ( for EU Member States and
for other countries) can be found at

                                                                       Version 1/03/2010

     7.4.   Supporting documents

The following documents are accepted as proof of expenditure, to be kept by the partners
(non exhaustive list):

-      journeys by train: the tickets used, including documents for seat reservations and
       any supplements;
-      journeys by car: signed declaration by the travellers, stating the route taken;
       requests for car hire and car hire contract; car hire bill;
-      journeys by air: travel agency’s invoice, the tickets used and boarding cards;
-      hotel accommodation bill;
-      documents relating to the purpose of the trip (e.g. invitation to a meeting, minutes
       of the meeting and the list of participants giving the times of the start and end of
       the meeting, etc.).

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All applications will be examined and assessed by an evaluation committee.

The assessment of each proposal will be based on the information provided by the
applicants in the proposal submitted in reply to this call for proposals. In addition, the
Commission reserves the right to use any other information from public or specialist

All the information will be assessed in light of the eligibility, exclusion, selection and
evaluation criteria set out in the call for proposals. The eligibility, selection and
evaluation procedure consists of successive stages. Only the proposals meeting the
requirements of one stage of the assessment will pass on to the next.

The evaluation committee may ask an applicant to provide additional information or to
clarify the supporting document submitted in connection with the application, in
particular in the case of evident material errors.

At the end of the evaluation, the evaluation committee draws up a list of proposals,
which may be financed, in order of merit, indicating the proposed amount to be financed
by Union funds.

The conclusion of the evaluation committee is recorded in a report signed by the
members of the committee and proposed to the authorising officer.

Only one proposal by country will be awarded. This means that any proposal, although
passing all thresholds, will be rejected if a proposal covering the same country is higher

Further information concerning the evaluation

When assessing the proposals against the evaluation criteria set out in the call for
proposals, the evaluation committee generally pays attention to the following elements.
Please note that those elements, which are indicative and non-exhaustive, are given on
the basis of transparency and in order to help applicants to improve their applications.

 Criterion                                                                    Score
 Content of the action and deliverables (description of the planned results
 in accordance with the aims and objectives), understanding of tasks and      (0-XX)
 quality of proposed approach
 Presentation of expected results, expected impact and sustainability of
 the action
 Time schedule of the action (work plan) and evaluation of progress of
 the action
 Overall and detailed budget in the sense of the evaluation of the
 coherence between the budget proposed and the objectives to be               (0-XX)
 Maximum total score                                                          100

                                                                          Version 1/03/2010

The actions could be evaluated against above award criteria which will carry equal or
unequal weighting within the overall assessment. Within the general conclusions, the
evaluation will provide a qualitative judgment on the overall value for money, comparing
the outcomes based on the above award criteria with the costs and efforts involved.

If a proposal is to be classified as worth funding, the grand total of the marks for all the
award criteria should be equal to or greater than thresholds specified in the invitations to
submit proposals (e.g. 50 % or 65 % of the maximum possible score) for the whole
evaluation, as well as, where appropriate, for each of the criterion. Proposal falling below
those thresholds will not be evaluated further.

Proposals that pass these thresholds will be considered for funding. At the end of the
evaluation, proposals will be ranked on the basis of the evaluation results.

Funding decisions will be made on the basis of this ranking and within the limits of the
available budget.

Decision of the contracting authority

On the basis of the list of merit drawn up by the evaluation committee, the authorising
officer adopts the final list and allocates the grants.

Please note that a decision to reject an application or not to award a grant could be based
on the following grounds (this list is not exhaustive):

• the application was sent after the closing date (date as postmarked);

• the application is incomplete or otherwise non-compliant with the stated administrative
conditions or in any other way does not comply with the eligibility criteria as set out in
the call for proposals;

• the applicant or one or more participants are ineligible;

• the technical capacity is considered insufficient;

• the financial capacity is considered insufficient;

• the proposal has not reached the minimum score for one or several of the evaluation
criteria or of the total;

• the score obtained by the proposal is not ranked amongst the best proposals considered
for the award;


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