Nicola Lavin, NW Growth Delivery Team
Arpley House
Warrington
[email protected]
Tel:0303 444 6494
SESSION 2: ESIF Simplification Workshop –
Update on Simplified Cost Options (SCOs)
20XX
Advantages of Simplified Costs
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Reduces the administration burden to beneficiaries
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Reduces the administrative burden for the managing authorities
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Supports N+3
Role of the MA changes to one of support
Easier reporting to EC
Reduces the risk of error rate
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No more discussion on whether or not costs are linked to the project - reduced time to develop
No more collection and archiving of every (small) cost
No audit of underlying financial documents
Audit only on results achieved and or activities performed
audit less time consuming
ECA Annual Reports 2012 & 2013 did not detect any costs related to the specific use of SCO
Focus on results
The Cost Options
(for grants and repayable assistance)
•
Costs actually incurred, identifiable and verifiable,
recorded in the accounts, etc.
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A percentage to be calculated on the eligible costs
Example: Indirect costs = 15% Direct staff costs
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A fixed amount per unit determined by the MA
Example: person attending a seminar
•
For average personnel cost (based on the usual
accounting practices)
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A global amount to cover one or several cost categories not
exceeding EUR 100,000 of public contribution
Example: Hosting of a event/production of information videos
MA status
Current position
• Flat rate of 15% to calculate indirect costs
– 15% of direct eligible staff costs
Emerging
• For research and innovation activity
– Making use of Horizon 2020 for similar activity and beneficiaries
– Indirect costs can be calculated on the basis of 25% of total direct eligible costs
(less subcontracting costs and the resources made available by third parties
which are not used on the premises of the beneficiary, as well as financial
support to third parties)
Future ( New Year)
• Standardised Unit costs
– Define activity
– Review data available on cost driver
Future simplified cost options
Indirect costs = 15% of direct staff costs
Direct costs = £113,772
1. Personnel cost
1.1 Internal personnel - remuneration
1.2 Int. pers. – transport home/work
1.3 Internal personnel – travel costs
1.4 External personnel – remuneration
1.5 External personnel – travel costs
2. Product develop & consumption
2.1 Non depreciable consumption goods
2.2 Publicity
2.3 Organisation costs
2.4 Other costs
100,763
60,895
622
104
39,143
0
13,009
9,056
3,096
857
0
A. Direct staff costs =
60,895 + 39,143 = £100,038
B. Indirect costs – 15% of direct staff costs
= 100,038 x 15% = £15,006
C Other direct costs = £13,735
TOTAL ELIGIBLE:
A = B = C = £128,779
Next steps
• Guidance on SCO released in December by EC
• Confirmation by DCLG of the use of 25% flat rate (of eligible direct
costs less sub contracting etc) to fund indirect costs for similar
beneficiaries and activity (Research and Innovation)
• New Year begin in earnest unit costs analysis.