Common use of Specific case Clause in Contracts

Specific case. For personnel costs declared as a unit cost (on the basis of the beneficiary’s usual cost accounting practices, i.e. ‘average personnel costs’), the hourly rate must be calculated by the beneficiary in accordance with its usual cost accounting practices for determining the hourly rates of its personnel. The GA sets the following conditions: − the cost accounting practices used must be applied in a consistent manner, based on objective criteria, regardless of the source of funding The beneficiary must consistently apply its usual cost accounting practices based on objective criteria that must be verifiable if there is an audit. It must do this no matter who is funding the action. This does not mean that cost accounting practices must be the same for all types of employees, departments or cost centres. If, for instance, the beneficiary’s usual cost accounting practices include different calculation methods for permanent personnel and temporary personnel, this is acceptable. However, the beneficiary cannot use different methods for specific research actions or projects on an ad-hoc basis. Example (acceptable usual cost accounting practices): Individual (actual) personnel costs are used for researchers, average personnel costs (unit costs calculated in accordance with the beneficiary’s usual cost accounting practices) are used for technical support staff. Example (unacceptable usual cost accounting practices): Average personnel costs are used to calculate costs in externally-funded projects only. − the hourly rate must be calculated using the actual personnel costs recorded in the beneficiary’s accounts, excluding any ineligible cost or costs already included in other budget categories Any cost considered ineligible by the Commission but included in the beneficiary’s usual accounting practices must be excluded when calculating the personnel costs for the action. If necessary, it must be adjusted to fulfil all eligibility criteria. Example: A beneficiary calculates the hourly rate in accordance with its usual cost accounting practices and includes taxes not included in remuneration. These are ineligible and must therefore be removed from the hourly rate declared for personnel working on the action. Costs that are already included in other budget categories must be taken out (double funding of the same costs).