European Territorial Cooperation Eligibility of expenditure for cooperation

European Territorial Co-operation Eligibility of expenditure for co-operation programmes (Art. 17(1) ETC Reg. 18 th 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

Section 1: Subject matter and scope 5 categories covered: • Staff costs • Office and administrative expenditure • Travel and accommodation costs • External expertise and service costs • Equipment expenditure Point 2. Clarification EXAMPLE : MED transnational programme 2007 -2013 The Monitoring Committee of the programme may decide that the administrative expenditure" category will not be eligible for priority 2. • priority • priority 1 2 3 4 5 "Office and "Strengthening innovation capacities" "Protection of the environment & promotion of a sustainable territorial development" "Improvement of mobility and of territorial accessibility" "Promotion of a polycentric and integrated development of the Med space" "Technical Assistance" Sentence"…less stricter rules…" deleted, since if categories are eligible, they are applicable in their entirety.

Section 2: General provisions • Par. 2 "Any costs related to any of the expenditure categories… " included in this section since it covers all categories. • Par. 3 b – reference to art. 58(2) added "hourly rate…calculated by dividing. . Annual gross employment costs by 1720 hours" • Point 4 clarified and completed.

Section 3: Staff costs Ø This section has been completely revised for better clarification and to take into consideration comments made following meeting of 27/9 Ø Identification of 4 types of staff working on an operation: a. On a full time basis b. On a part-time basis with a fixed percentage of time worked per month c. On a part-time basis with a flexible number of hours worked per month d. On an hourly basis Ø Staff cots are reimbursed: a. On real cost basis b. 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)

a) On a full time basis Ø The employee works on the operation 100% of his/her time (which does not necessarily mean 40 hours/week). Ø Staff costs are in line with beneficiary salary/wages and any other costs directly linked to the salary payments … (Section 3. 2 c)

b) On a part-time basis with a fixed percentage of time worked per month Ø The employee works a fixed percentage of his or her time on an operation (20%, 50% or 75%. . = same every month) Ø Staff costs are in line with beneficiary salary/wages and any other costs directly linked to the salary payments … (Section 3. 2 c) Ø 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 Ø The employee works a number of hours varying from one month to the other. Ø Hours are based on a time registration system. Ø 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: 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 1500/168 x 15= ~134 EUR 1500/168 x 40= ~357 EUR 1500/168 x 10=~89 EUR Example 2 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 18000/1720 x 15= ~157 EUR 18000/1720 x 40= ~419 EUR 18000/1720 x 10=~106 EUR

d) On a hourly basis Ø Staff costs are calculated: (Number of hours) x (hourly rate) Ø Hourly rate calculated as a standard unit cost established in accordance with Art. 57(4) of CPR

Section 4: Office & administrative expenditure • • • Completed with some proposals made further to meeting of 27/9 Foreign exchange difference costs: deleted Charges for national financial transactions: excluded. 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?