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).
Specific case. For in-kind contributions provided by third parties free of charge and costs of linked third parties, eligible direct costs must be actually incurred by the third party. • incurred during the action duration (i.e. the generating event that triggers the costs must take place during the duration of the action) The duration of the action is the period running from the starting date of the action to the end date of the action (see Article 3).
Specific case. It is to be noted that in 2002 the internal auditor’s withholding of approval of a payment was overruled by the Director, whose decision was confirmed by the Executive Board.
Specific case. This case is a dispute between the Centre and a staff member seeking reimbursement of education expenses (€ 1250 a year). The lawyer consulted by the Centre was of the opinion that the Centre should pay, and it is the case that the European Commission refunds its staff for expenses of this type. He was also of the opinion that the staff member would win on appeal. It was therefore in order to avoid pointless proceedings in which the Centre was bound to lose, and the additional legal costs involved, that the Director overruled the internal auditor’s withholding of approval of this payment and, in accordance with the current Financial Regulation, informed the Executive Board of his decision, which was endorsed by the Board.
Specific case. Notwithstanding any other provision in this Agreement and unless otherwise permitted by applicable law, the indemnification provided for herein shall be made only as authorized in the specific case upon a determination, made in the manner provided by applicable law, that indemnification of Indemnitee is proper under the circumstances.
