European Territorial Co-operation

Eligibility of expenditure for co-operation programmes

(Art. 17(1) ETC Reg.

18th meeting of the Expert Group on Delegated and Implementing Acts for the ESI funds

25 October 2013

Modifications made on Fiche 11 dated 20 September 2013

5 categories covered:•Staff costs•Office and administrative expenditure•Travel and accommodation costs•External expertise and service costs•Equipment expenditure

Point 2. Clarification

Sentence"…less stricter rules…" deleted, since if categories are eligible, they are applicable in their entirety.

Section 1: Subject matter and scope

EXAMPLE : MED transnational programme 2007-2013The Monitoring Committee of the programme may decide that the "Office and administrative expenditure" category will not be eligible for priority 2.

•priority 1 "Strengthening innovation capacities"•priority 2 "Protection of the environment & promotion of a sustainable territorial development" •priority 3 "Improvement of mobility and of territorial accessibility"•priority 4 "Promotion of a polycentric and integrated development of the Med space"•priority 5 "Technical Assistance"

• Par. 2 "Any costs related to any of the expenditure categories… " included in this section since it covers all categories.

• Par. 3b – reference to art. 58(2) added "hourly rate…calculated by dividing .. Annual gross employment costs by 1720 hours"

• Point 4 clarified and completed.

Section 2: General provisions

This section has been completely revised for better clarification and to take into consideration comments made following meeting of 27/9

Identification of 4 types of staff working on an operation:a. On a full time basisb. On a part-time basis with a fixed percentage of time worked per monthc. On a part-time basis with a flexible number of hours worked per monthd. On an hourly basis

Staff cots are reimbursed:a. On real cost basisb. Under simplified costs options (Art. 57 CPR Reg)c. As a flat rate (art. 18 ETC Reg (not CPR as wrongly mentioned in the

fiche)

Section 3: Staff costs

a) On a full time basis

The employee works on the operation 100% of his/her time (which does not necessarily mean 40 hours/week).

Staff costs are in line with beneficiary salary/wages and any other costs directly linked to the salary payments … (Section 3.2c)

b) On a part-time basis with a fixed percentage of time worked per month

The employee works a fixed percentage of his or her time on an operation (20%, 50% or 75%..= same every month)

Staff costs are in line with beneficiary salary/wages and any other costs directly linked to the salary payments … (Section 3.2c)

No time sheets are necessary, the employment contract is sufficient as proof for the reimbursement of costs.

c) On a part-time basis with a flexible number of hours worked per month

The employee works a number of hours varying from one month to the other.

Hours are based on a time registration system.

Staff costs can be calculated: either based on an hourly rate / month (example 1) or on an hourly rate / year (example 2)

Example 1

Example 2

Example: Monthly gross employment cost: 1500 EUR – Month divided in 168 Hours (no difference even is February has less days – average)

MONTHS JANUARY FEBRUARY MARCH

Hours actually worked on the operation

15 hours 40 hours 10 hours

Costs related to the operation

1500/168x15= ~134 EUR

1500/168x40= ~357 EUR

1500/168x10=~89 EUR

Example: Annual gross employment cost 18.000 EUR – Year divided by 1720 hours

MONTHS JANUARY FEBRUARY MARCH

Hours actually worked 15 hours 40 hours 10 hours

Costs on the operation 18000/1720x15= ~157 EUR

18000/1720x40= ~419 EUR

18000/1720x10=~106 EUR

d) On a hourly basis

Staff costs are calculated: (Number of hours) x (hourly rate)

Hourly rate calculated as a standard unit cost established in accordance with Art. 57(4) of CPR

• Completed with some proposals made further to meeting of 27/9• Foreign exchange difference costs: deleted• Charges for national financial transactions: excluded.

Section 4: Office & administrative expenditure

Section 5: Travel and accommodation costs

• Point 1 simplified and clarified• Point 3, reference to Article 19.3 added (TA, promotional activities,

capacity-building will in principle be usual costs incurred outside the eligible area.

Section 6: External expertise & services costs

• Completed with some proposals made further to meeting of 27/9• Reference to Article 22.4 on controls of ETC regulation added

Section 7: Equipment & investment expenditure

• Point 2 regarding depreciation completed to include all possibilities.

QUESTIONS?