2.9 Simplified Cost Options
In order to minimize the administrative burden on the beneficiaries of the INTERREG NPA programme, the below Simplified Cost Options (SCOs) provided for in the EU regulations are made available to projects:
It is mandatory to use a 15% flat rate for office and administration on staff costs.
It is optional to use a 15% flat rate for travel on staff costs.
There is also an option to report costs as staff costs + a 40% flat rate for all other costs than staff. Only the staff cost will be verified by Controllers. This SCO will be available on a case-by-case basis, but not mandatory. Project applicants apply based on a draft budget detailing all cost categories. If relevant, this will be changed by the programme administration after project submission.
For staff cost related to individuals who work on part-time assignments, the costs should be calculated as a fixed percentage of the gross employment cost, in line with a fixed percentage of time worked on the project per month, with no obligation to establish a separate working time registration system.
Lump sums for small-scale projects will be mandatory for projects where the total cost of the operation is less than EUR 200 000 (the EU part), except for operations for which the support constitutes State Aid.
Audit trail for SCOs
In the implementation of projects, verification of SCOs shall aim at verifying that the conditions for reimbursement of expenditure to the beneficiary have been met and that the established rates and amounts for SCOs have been correctly applied. Underlying financial or procurement documents shall not be requested with a view to check the amounts incurred and paid by the beneficiary.
In case of flat rate financing, only the basis cost will be controlled and verified, i.e. staff costs.
Verification of lump sums will cover the achievement of deliverables as outlined in the Grant Letter. This is checked by the JS before a payment of the lump sum is made by the MA.
For the audit/ control of the correct application of the SCO, the following documents should be in place:
For flat rates: programme rules to verify that the flat rate takes into account the correct cost categories, and that the correct percentage is used, and that calculations are correct; basis costs; verification that other reported project expenditure is not already covered by flat rates.
For lump sums: evidence of lump sum deliverables as outlined in the Grant Letter; criteria for the payment of the lump sum (payment triggers); verification that other reported project expenditure is not already covered by the lump sum