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Frequently Asked Questions (FAQ) - Legal and Financial Issues
See AGA 4.0 p. 151:
The linked third parties may declare their costs (in their financial statements; see Article 20.3), if the eligibility conditions set out in Article 6.3 are fulfilled (e.g. actually incurred by the linked third party, necessary for the action, incurred during the action duration, etc.).
The costs must be recorded in the accounts of the linked third party.
- Linked third parties may declare costs for all cost categories (as provided for in Article 5), including indirect costs (at the 25% flat rate).
- Each linked third party declares its own costs. The costs of the linked third party must not be included in the beneficiary’s financial statements.
Each linked third party has its own financial statements, but these statements must be submitted by its beneficiary (since linked third parties cannot sign them in the IT system; see Article 20).
For this purpose, linked third parties must send their signed financial statements on paper to their beneficiary.
Yes. There should be no big deviations to the budget specified in the first stage. But you can make small corrections.
If you mean the second phase of the SME instrument: then yes. Otherwise: no.
You find the rules concerning in-house-consultants in the AGA 4.0 p. 72:
Direct personnel costs: Natural persons with direct contract (A.2)
1.2.1 What? This budget category covers typically the costs of in-house consultants and similar persons (i.e. self-employed natural persons) that worked on the action for the beneficiary under conditions similar to those of an employee, but under a contract which is NOT legally the same as for employees. It regards, in particular, contracts qualified as quasi-subordinate work contracts under national law when the conditions under which the work is carried out are similar to those of an employee.
No. The only costs eligible before project start are travel costs to the kick-of-meeting IF the travel itself took part within the project duration.
In the periodic report you have to report the work carried out – not what you had planned to do. So yes, you have to at least communicate it within the periodic report. Also it never hurts to let your project officer know what you are doing.
Yes. You have to depreciate according to the rules applicable for your company.
Yes. This is however not the case if you have personnel working 100% on the action. In that case you need to “sign a declaration on exclusive work for the action [ODT format] (one per reporting period), to confirm that the person worked exclusively for the action, either: during the whole reporting period or during an uninterrupted time-period, covering at least a full calendar month within the reporting period.” (see AGA 4.0 p.175)
If there are persons working part time; there is no special treatment compared to full time employees. For temporary workers see AGA 4.0 p.50: “Staff provided by a temporary work agency — A contract with a temporary work agency qualifies typically as a purchase of services (unless the temporary work agency carries out directly some task of the action — in which case it would be considered as subcontracting). Thus, although NOT eligible as personnel costs, the costs can be charged under other budget categories (i.e. D.3 other goods and services or B. subcontracting), if they comply with the eligibility conditions (e.g. best value for money and no conflict of interest; see Articles 10 and 13).”
“Unit costs” are a special type of costs. You can find the definition in Article 5.2. Regarding personnel costs you can use the “unit costs” in very few special cases:
“Personnel costs for SME owners or beneficiaries that are natural persons not receiving a salary (see Article 6.2, Points A.4 and A.5) must be declared on the basis of the amount per unit set out in Annex 2a (unit costs)”