Communication campaign Most common issues identified : Personnel costs & Other direct costs

Communication campaign Mostcommonissuesidentified: Personnelcosts & Otherdirectcosts Antonio Requena Fernández FCH JU Financial Officer

Personnelcosts Hours dedicated to the project Personnel costs Hourly rate = X

Hourlyrate Salary Social security Pensioncontribution Total annualcosts Healthinsurance Total annualcosts Total annualcosts Otherstatutarycosts… Total annualcosts Total annualcosts Hourly rate of an employee = Annualproductivehours

Hourlyrate: Productivehours vs The time recordingsystemmustallowkeepingtrack of thisnumber of actual individual productivehours If actual productivehoursexceedsstandard use actual!!! Don’t use billablehours!!!

Overtime Overtimemay be accepted Thehourlyrateapplicabletothese «overtime» hours has to be calculatedseparatelyfromthehourlyrateapplicabletothe normal workinghours • In anyother case: eitherovertimenotpaidorthereisnotcleardistinctionbetween normal and overtimehours • Ifactuallypaidaccordingtobeneficiary’spolicyAND • Ifthereis a systemthatallowstheidentification of normal / overtimehoursworkedfortheproject • Thehourlyrateiscalculated: • Adding in thenumerator: normal costs + «overtime» costs (ifany) • Adding in thedenominator: normal hours + «overtime» hours

Hourlyrate: Productivehours

Hoursdedicatedtotheproject Thegolden rule: Claim ONLY actual hoursworkedontheproject Timesheets Alternativeevidence • Wholeduration of theproject • Mustgivethesamelevel of assurance as thetimesheets • Full name of beneficiary • Name and signature of employee • To be assessedbytheauditors • Title of theproject • Daily, weeklyormonthlybasis • Amount of hoursclaimedfortheproject • Name and signature of a supervisor • Reconcilablewiththeabsencesregister

Example of timesheet • Reference to the WP • Briefdescription of tasks

Actual personnelcosts. Someerrors Personnelcosts Annualcosts Hours Personnelcosts = Hours X Productivehours + • Timesheetsnotreliable • Claim of more hoursthandedicatedtotheproject • Claim of more hoursthansubstantiatedbytimesheets

Actual personnelcosts. Someerrors Annualcosts Personnelcosts = Hours X Personnelcosts Hours Productivehours - • Timesheetsnotreliable • Claim of lesshoursthandedicatedtotheproject • Claim of lesshoursthansubstantiatedbytimesheets

Actual personnelcosts. Someerrors Personnelcosts Annualcosts Personnelcosts = Hours X Productivehours - Productivehours • Use of standard hoursinstead of actual whenthelatter are higher • Use of billablehoursinstead of productivehours

Averagepersonnelcosts Acceptabilitycriteriaforaveragepersonnelcosts • Based on the usual cost accounting practice of the beneficiary and consistently applied to their participations in the Framework Programme • Based on the actualpersonnel costs of the beneficiary as registered in its statutory accounts, without estimated or budgeted elements • They excludeany ineligible cost item and any cost claimed under other costs categoriesin order to avoid double funding • Number of productive hours shall correspond to usual management practice of the beneficiary and reflects its actual working standards

SME owners SME owners and other natural personwho do notreceive a salary Annual living allowancecorrespondingtotheappropriateresearchcategorypublished in the ‘People’ WorkProgramme of theyear of thepublication of thecalltowhichtheproposal has beensubmitted Country correction factor published in thesamedocument = Hourlyrate X 100 1 575

SME owners Example: SME ownerwithoutsalaryfrom Austria with 5 years of experience at the time of deadline of submission of a proposal 2011 Use thetoolavailable at CORDIS 58 500 €/year 106.9 = 39.71 €/h X 100 1 575

Otherdirectcosts Thegolden rule: Costsattributeddirectly to theprojectwhich can be identified as suchaccording to theaccountingprincipls of thebeneficiary • Travelcosts • Only for staff taking part in the project • In case of conferences/seminars: copy of the presentations to show direct link to the project • Expenses related to daily commute to work are not considered travel costs. • Consumables and supplies • If they are necessary for the implementation of the project • Subject to theaccountingprinciples of thebeneficiary, thefollowingconsumables/supplies can be consideredeitherdirectorindirectcosts: • Water, heating, electricity, maintenance, insurance • Communication expenses, postal charges, office supplies • Costsrelated to general administration and management • Miscellaneousrecurringconsumables

Otherdirectcosts Thegolden rule: Costsattributeddirectly to theprojectwhich can be identified as suchaccording to theaccountingprincipls of thebeneficiary • Minortasks • Minor services not identifed in Annex I but needed for the implementation of the project • Examples: • Organisation of the rooms and catering for a meeting (logistic support) • Printing of material, leaflets, etc. • Services related to setting up and maintenance of a project website • To be reportedundertype of activity “Management”, category of costs “Subcontracting”

Otherdirectcosts Thegolden rule: Costsattributeddirectly to theprojectwhich can be identified as suchaccording to theaccountingprincipls of thebeneficiary • Equipment • If necessary for the implementation of the project • Costs to be determinedaccording to thebeneficiary’s usual accountingpractice • Possibility of charge100% equipmentacquisitionprice in 1 reportingperiodifnationallegislationallowsit • Otherwise, depreciation to be charged in eachrelevantperiodicreport • Considerpercentage of use in theproject • Depreciationcostsforequipmentboughtbeforethestart of theproject • Yes, ifthe equipmenthas not yet been fully depreciated , then the remaining depreciation can be eligible under the project • Subject to theaccountingprinciples of thebeneficiary, computersand office software can be consideredeitherdirectorindirectcosts

Communication campaign Most common issues identified : Personnel costs & Other direct costs