How to create a budget?

Background information

Budget - a link between the functions of planning, implementation and controlling of project activities

• Expressed in measurable numerical form (in EUR, units – per day, per item, etc.)

• Use the template (excel table, Annex "XY" in

application form) which includes:1. Budget line items

2. Budget justification

3. Sources of funding

How to plan a budget?BUDGET – must be directly associated with the activities listed in the Application form

implementation of activities x, y,

z, etc...

means a,b,c, are needed to

implement...

costs that arise relating the means

for each set of activities.

The budget can not include anything that is not defined within the project activities!*

From activities to budget itemsActivities Means Costs Budget items

Training of tourism professionals about recreation tourism opportunities in xy area (2×3 days, 30 people, nonresidential)

Trainers (1 foreign expert and 1 local), project manager, project coordinator, materials, food / coffee

Daily fee for external experts (for the days of lectures and preparation), (for team members employed by the institution that implements this is included in salary), cost of materials ×60, food / coffee × No. of people, No. of days

1. Human resources 5. Services, conferences and seminars

Where cost are explained,(Budget justification), it is necessary that each budget item refers to the related activity set defined in the application form, which facilitates more effective budget planning and financial monitoring during and after implementation.

The general rules for eligibility of costs

Eligible costs are those that are necessary to perform the project activities.They should be within expressed rules for a given CfP/programme documentation and general EC rules .Project costs must be incurred within the projects programme area.

All IPA programs are exempt from paying VAT and all

amounts in the budget must be shown without VAT!*

Eligible costs

Total eligible costs

Part of own contribution

The required contribution

Budget item headings:1. Human resources2. Travel costs3. Equipment and supplies4. Local office costs5. Other costs/services6. Other7. Subtotal direct eligible costs of the Action8. Contingency reserve9. Total direct eligible costs of the Action10. Administrative costs

Before proceeding, look

at a Budget template!

1. Human resources

• The project team members (local and international) that concluded an agreement on regular employment on the project

• This category of costs relate only on employees who are

engaged on the project, including technical personnel (eg,

project coordinator, expert ...) and administrators (eg,

accountant, assistant to the project ...)For

details, see the

note

Example: Human resources in the budget planning1. Human Resources ALL YEARS  YEAR 11.1 Salaries (gross amounts, local staff)4                 1.1.1 Technical Per month     € 0.00 Per month     € 0.00 1.1.1.1 HGSS Project Manager - 33.33% Per month 6.00 € 1,769.00 € 10,614.00 Per month 4 € 1,769.00 € 7,076.00 1.1.1.2 HGSS GIS Coordinator - 16.66% Per month 3.00 € 1,360.00 € 4,080.00 Per month 2 € 1,360.00 € 2,720.00 1.1.1.3 HGSS S&R Coordinator -16.66% Per month 3.00 € 1,360.00 € 4,080.00 Per month 2 € 1,360.00 € 2,720.001.1.1.4 HGSS ILTS Coordinaor - 16.66% Per month 3.00 € 1,360.00 € 4,080.00 Per month 2 € 1,360.00 € 2,720.001.1.1.5 HGSS Finance administrator - 50% Per month 3.00 € 1,292.00 € 3,876.00 Per month 2 € 1,292.00 € 2,584.001.1.1.6 HGSS ILTS trainer - 5.55% Per month 1.00 € 1,292.00 € 1,292.00 Per month 1 € 1,292.00 € 1,292.00

1.1.1.7 HGSS Caving trainer - 5.55% Per month 1.00 € 1,496.50 € 1,496.50 Per month 1 € 1,496.50 € 1,496.50 1.1.1.8 SUNCE Coordinator - 25% Per month 4.50 € 1,600.00 € 7,200.00 Per month 3 € 1,600.00 € 4,800.00 1.1.1.9 SUNCE Assistent - 30% Per month 5.40 € 1,350.00 € 7,290.00 Per month 4 € 1,350.00 € 5,400.00 1.1.1.10 CSTI Project Manager - 50% Per month 9 € 1,150.00 € 10,350.00 Per month 6 € 1,150.00 € 1,150.00 1.1.1.11 CSTI Project Coordinator - 50% Per month 9 € 900.00 € 8,100.00 Per month 6 € 900.00 € 900.00 1.1.1.12 CSTI Admin&Finance Officer - 50% Per month 9 € 820.00 € 7,380.00 Per month 6 € 820.00 € 820.001.1.1.13 UNDP Project manager Per month 6 € 1,650.00 € 9,900.00 Per month 3 € 1,650.00 € 4,950.001.1.1.14 UNDP Finance administrator Per month 4 € 1,650.00 € 6,600.00 Per month 2 € 1,650.00 € 3,300.001.1.1.15 UNDP GIS trainer Per month     € 0.00 Per month      1.1.1.16 UNDP Activity coordinator Per month 9 € 1,350.00 € 12,150.00 Per month 9 € 1,350.00 € 12,150.001.1.1.17 UNDP GIS Project manager Per month 6 € 1,650.00 € 9,900.00 Per month 3 € 1,650.00 € 4,950.00

1.1.2 Administrative/ support staff Per month     € 0.00 Per month     € 0.00 1.1.2.1 SUNCE trainer - 10% Per month 1.8 € 1,350.00 € 2,430.00 Per month 1.8 € 1,350.00 € 2,430.00

1.1.2.2 UNDP program assistant Per month 7 € 1,350.00 € 9,450.00 Per month 3 € 1,350.00 € 4,050.001.2 Salaries (gross amounts, expat/int. staff) Per month     € 0.00 Per month     € 0.001.3 Per diems for missions/travel5       € 0.00       € 0.00 1.3.1 Abroad (staff assigned to the Action) Per diem     € 0.00 Per diem     € 0.00 1.3.1.1 Project coordination meetings Per diem 24.00 € 80.00 € 1,920.00 Per diem 18 € 80.00 € 1,440.00 1.3.1.2 Biodiversity trainings Per diem 16.00 € 80.00 € 1,280.00 Per diem 16 € 80.00 € 1,280.00 1.3.1.3 cave guide trainings Per diem 12.00 € 80.00 € 960.00 Per diem 12 € 80.00 € 960.00 1.3.1.4 rescue and ITLS trainings Per diem 6.00 € 80.00 € 480.00 Per diem 6 € 80.00 € 480.00 1.3.1.5 joint excercise Per diem 30.00 € 80.00 € 2,400.00 Per diem 30 € 80.00 € 2,400.00 1.3.1.6 GIS trainings Per diem 100.00 € 120.00 € 12,000.00 Per diem 100 € 120.00 € 12,000.00

1.3.1.17 Kickoff meeting in Dubrovnik Per diem 3 € 180.00 € 540.00 Per diem 3 € 180.00 € 540.001.3.1.8 Project coordination meeting CSTI and SUNCE 2 persons Per diem 12 € 180.00 € 2,160.00   12 € 180.00 € 2,160.00

1.3.2 Local (staff assigned to the Action) Per diem     € 0.00 Per diem     € 0.00 1.3.2.1 Project coordination meetings Per diem 24.00 € 80.00 € 1,920.00 Per diem 18 € 80.00 € 1,440.00 1.3.2.2 Biodiversity training Per diem 16.00 € 80.00 € 1,280.00 Per diem 16 € 80.00 € 1,280.00 1.3.2.3 meeting with stakeholders Per diem 24.00 € 80.00 € 1,920.00 Per diem 24 € 80.00 € 1,920.00 1.3.2.4 GSS situation analaysis and operational guidelines Herceg Novi Per diem 3 € 180.00 € 540.00   3 € 180.00 € 540.00 1.3.2.5 Wrapup event Per diem 1 € 100.00 € 100.00   1 € 100.00 € 100.001.3.2.6 Project cordination meetings CSTI and SUNCE 2 persons Per diem 12 € 100.00 € 1,200.00   12 € 100.00 € 1,200.00

1.3.3 Seminar/conference participants Per diem     € 0.00 Per diem     € 0.00 1.3.3.1 attendance at cave guide trainings Per diem 1 € 100.00 € 100.00   1 € 100.00 € 100.00 1.3.3.2 attendance at rescue and ITLS trainings Per diem 3 € 100.00 € 300.00   1 € 100.00 € 100.001.3.3.3 attendance at joint excercise Per diem 1 € 100.00 € 100.00     € 100.00 € 0.00 1.3.3.4 attendance at GIS trainings Per diem 1 € 100.00 € 100.00   1 € 100.00 € 100.00

Subtotal Human Resources       € 149,568.50       € 93,548.50

Notice that staff time is broken down by the

percentage of their total work

time which is dedicated to this

project

All salaries are listed in total amount and

then calculated according to

the percentage

2. Travel costs

Travel costs of all participants, (partners), in the project.

Each trip must be justified by project activities and necessary for successful project implementation.

Example – Travel costs in the budget planning2. Travel6                

2.1. International travel Per flight     € 0.00 Per flight     € 0.00

2.1.1 SUNCE travel to montenegro for activities per km 3800.00 € 0.25 € 950.00 per km 3800.00 € 0.25 € 950.00

2.1.2 CMRS travel to montenegro for activities per km 3800.00 € 0.25 € 950.00 per km 3800.00 € 0.25 € 950.00

2.1.13 Travel to Dubrovnik from Podgorica and back for kickoff event Per km 350 € 0.17 € 59.50   350€ 0.17

€ 59.50

2.2 Local transportation Per month     € 0.00 Per month     € 0.00

2.2.1 SUNCE travel for activities per km 3000.00 € 0.25 € 750.00 per km 3000.00 € 0.25 € 750.00

2.2.2 CMRS travel for activities per km 3000.00 € 0.25 € 750.00 per km 3000.00 € 0.25 € 750.00

2.2.3 Transport to HN from Podgorica and back for GSS meetings Per km 250 € 0.17 € 42.50   250€ 0.17

€ 42.50

2.2.4 Transport to HN from Podgorica and back for Cave Guide trainings

Per km 250 € 0.17 € 42.50   125

€ 0.17

€ 21.25

2.2.5 Transport to HN from Podgorica and back for Rescue trainings Per km 750 € 0.17 € 127.50   500€ 0.17

€ 85.00

2.2.6 Transport to HN from Podgorica and back for ITLS training Per km 250 € 0.17 € 42.50   125€ 0.17

€ 21.25

2.2.7 Transport to HN from Podgorica and back for Joint exercise Per km 250 € 0.17 € 42.50   250€ 0.17

€ 42.50

2.2.8 Transport to HN from Podgorica and back for GSS Situation analysis and operational guidelines

Per km 250 € 0.17 € 42.50   125

€ 0.17

€ 21.25

Subtotal Travel       € 3,799.50       € 3,693.25

For travel by car costs are listed in price by KM

traveled, with a breakdown by activities

where able to do so. Where not… Place total

anticipated KM. Travel by air or other form is listed

per person/trip

3. Equipment and Supplies

All costs of purchase / rent of equipment that is needed to implement the project (eg, projector, computer, technical equipment, car, etc.)

Cost of equipment can be approved only if they precisely indicate which activities are related and why they are necessary to implement these activities

The user of the application will have to clarify what will happen with this equipment when project activities end

The rule is that the equipment remains in use to end users of the project in order to satisfy long-term goals

Example - Equipment and Supplies in the budget planning

Purchase or rent of vehicle - This budget category includes rental or purchase of a vehicle only if it is really needed to be carried out the project. If the anticipated rent of vehicles for a specific event such as a seminar - then this cost is not reported here but under 5.7. Costs of conferences / seminars.

3. Equipment and supplies7                

3.1 Purchase or rent of vehiclesPer

vehicle     € 0.00Per

vehicle     € 0.00

3.2 Furniture, computer equipment       € 0.00       € 0.00

3.3 Machines, tools…       € 0.00       € 0.00

3.4 Spare parts/equipment for machines, tools       € 0.00       € 0.00

3.5 Other (please specify)       € 0.00       € 0.00

3.5.1 Rescue equipment for CMRS Per set 1 € 27,290.00 € 27,290.00 Per set 1 € 27,290.00€

27,290.00

3.5.2 Rescue equipment for MRS MNE per set   € 27,290.00 € 27,290.00 Per set 1 € 27,290.00€

27,290.00

Subtotal Equipment and supplies       € 54,580.00      €

54,580.00

4. Local office costs

Complete only if the project takes the needs of the rental

separate office! If we use existing office space all

expenses rent, the cost of using fax, internet access, telephone charges, etc. are not shown here, rather they are included under the administrative costs

5. Other Costs/Services

Need to be grouped by activity (e.g. printing of brochure) or event (e.g.seminar) in a common item with subparagraph

Includes all other (external) costs such as:• Cost of publications• The costs of external experts / associates• The costs of organizing events• The costs of promotion and information• Cost of audit• The costs of translation of materials / workshops• Financial services• Rental of equipment

Detailed in the notes!

Example – Other Costs/Services in the budget planning 5. Other costs, services8                5.1 Publications9       € 0.00       € 0.005.1.1 Design of environmental info signs per design 1.00 € 1,500.00 € 1,500.00        5.1.2 production and installation of environmetal info signs per sign 6.00 € 150.00 € 900.00        5.1.3 production and instalation of trail markers per marker 30.00 € 150.00 € 4,500.00        

5.1.4 Design and printing of the Guideline for cave guides Per guideline 100 € 5.00 € 500.00 Per guideline 100 € 5.00 € 500.00

5.1.5 Printing guideline for sea kayak guides Per guideline 500 € 2.00 € 1,000.00 Per guideline 500 € 2.00 € 1,000.00

5.2 Studies, research9       € 0.00       € 0.005.3 Auditing costs per audit 2.00 € 2,000.00 € 4,000.00       € 0.00

5.4 Evaluation costsper

evaluation 2.00 € 2,000.00 € 4,000.00       € 0.005.5 Translation, interpreters Per project 1 € 3,000.00 € 3,000.00 Per project 1 € 3,000.00 € 3,000.00

5.5.1 translation of text for environmental info signsper

translation 1.00 € 2,100.00 € 2,100.00        5.6 Financial services (bank guarantee costs etc.)       € 0.00       € 0.005.7 Costs of conferences/seminars9       € 0.00       € 0.005.7.1 Guide trainings       € 0.00        5.7.1.1 Hiking Guide Training per training 1 € 9,500.00 € 9,500.00        5.7.1.2 Bike Guide Training per training 1 € 9,500.00 € 9,500.00        5.7.1.3 Sea Kayak Guide Training per training 1 € 9,500.00 € 9,500.00        

5.7.2 Refreshment for meetings - 6 events with 16 people per event Per person 96 € 5.00 480

    

 

5.7.3 Premises for joint meetings Per meeting 6 € 170.00 1020 Per meeting 4 € 170.00 € 680.005.8. Visibility actions       € 0.00       € 0.00 5.8.1 Design and printing broshures promoting nature based activities

per item 25000€ 0.07

€ 1,750.00     

 

5.8.2 Design and printing tourism maps based on GIS per item 8000 € 0.45 € 3,600.00         5.8.3 Educational info signs per piece 2 € 400.00 € 800.00        

5.8.4 Press conferences CROper

confernece 3.00 € 450.00 € 1,350.00per

confernece 2.00 € 450.00 € 900.00

5.8.5 Press conferences for the media MNEper

conference 3

€ 430.00€ 1,290.00

per conference

2€ 430.00

€ 860.00

5.9 External consultants               € 0.00 5.9.1 Tourism Consultant Per day 20 € 200.00 € 4,000.00 Per day 20 € 200.00 € 4,000.00 5.9.2 IT Consultant Per day 30 € 150.00 € 4,500.00 Per day 30 € 150.00 € 4,500.00Subtotal Other costs, services       € 72,290.00       € 18,940.00

6. Other

Costs necessary for the implementation of project activities, not explicitly stated in some form of budgetary items such as:- Infrastructure Works (Eng. Small Scale Infrastructure)- Mapping the territory- Organization of various training, (without outsourcing), etc.

Example – Other in the budget planning 6. Other            

6.1. Reconstruction TIC              

6.1.1. Reconstruction 2 TIC Croatia - LAG LauraPer

contract 2 4,800.00 9,600.00 per contract 2.00 4,800.00 9,600.00

6.1.2. Reconstruction 2 TIC BiH - LAG Una-Sanaper

contract 2 4,800.00 9,600.00 per contract 2.00 4,800.00 9,600.00

6.2. MT support for local associations for the safety of tourists             0.00

6.2.1. MT support for associations Croatia - LAG Laura

Per contract 6 5,000.00 30,000.00 per contract 0.00 0.00 0.00

6.2.2. MT support for associations BiH - LAG Una-Sana

per contract 6 5,000.00 30,000.00 per contract 0.00 0.00 0.00

6.3. Participation and organization of gastronomic fairs               0.00

6.3.1. "Gastro table fair - Biograd n/m", Croatia - LAG Laura               0.00

6.3.1.1. Expenses for participation "Gastro fest - Bosanska Krupa", BiH - LAG Laura

per participant 20 100.00 2,000.00 per participant 0.00 0.00 0.00

6.3.2. "Gastro fest - Bosanska Krupa", BiH - LAG Una-Sana                

6.3.2.1. Expenses for organization "Gastro fest - Bosanska Krupa", BiH - LAG Una-Sana per event 1 4,000.00 4,000.00 per event 0.00 0.00 0.00

6.3.2.2. Expenses for participation "Gastro table fair - Biograd n/m", Croatia - LAG Una-Sana

per participant 20 100.00 2,000.00 per participant 0.00 0.00 0.00

Subtotal Other       87,200.00       19,200.00

Costs listed here can include events not

subcontracted, infrastructure, and other support actions that do

fall into the headings provided thus far.

8. Contingency reserve

For unforeseen expenses that can’t be predicted at the stage of project preparation, can be used only with prior written approval of the Contracting Authority

Examples: changes in laws, damage to existing infrastructure in execution of works, etc.

Look at the note!

Example - Contingency reserve in the budget planning

7. Subtotal direct eligible costs of the Action (1-6)

 

    407,844.00       176,267.00

8. Provision for contingency reserve (maximum 5% of 7, subtotal of direct eligible costs of the Action)

 

1.00 0.05 20,392.20   1.00 0.05 8,813.35

9. Total direct eligible costs of the Action (7+ 8)

 

    428,236.20       185,080.35

This total represents 5% of the above listed subtotal. It is often not completed as a portion of

budget planning as usage of the contingency is rare at best.

Usually it is better to leave this blank.

The Total direct costs are then derived by

adding the contingency to the

subtotal.

10. Administrative costs

• Office supplies, photocopying• Mail, deliver

• Phone, fax, internet• Cleaning, heating, electricity

• Accounting (if external)• Fuel costs for company car• Other administrative expenses necessary for

the project

Example – Administrative costs in the budget planning

9. Total direct eligible costs of the Action (7+ 8)       428,236.20       185,080.35

10. Administrative costs (maximum 7% of 9, total direct eligible costs of the Action)   1.00 0.07 29,976.53   1.00 0.07 12,955.62

11. Total eligible costs (9+10)       458,212.73       198,035.97

Here is where administrative costs are shown instead of under #4 “local office”. This is 7% of the TDEC and

added together gives the Total eligible costs.

Own and Contracting Authority Contribution

-Own contribution for any project is expressed in a % as defined within the project documentation, (e.g. for IPA 15% of the total project budget)

Own contribution includes funding from:Applicant’s financial contribution, (usually shown through staff labor costs)Funding from other EU Institutions or EU Member StatesFunding from other organizations / banks

Look at the notes!

Own contributionRequested funding

from the Contracting Authority (Grant)

Total budget

Justification and Clarification of the Budget

The allowances can be paid off only in case of travel with overnight stays! In calculating the allowance it’s necessary to check the current list:

http://ec.europa.eu/comm/europeaid/perdiem/index_en.htm

Is’s necessary to specify the mileage (KM) for travel, useful link to justify expenses is www.viamichelin.com

Always choose most suitable means of transport!

Only economy class of vehicle is acceptable (train, bus, boat, airplane) and accommodation at the hotel to 3 ***!

When purchasing products / services it is not allowed to mention the brand of goods / services but only technical specifications that the product / service must satisfy

Contributions in kind

All material / immaterial contributions which are not included in the budget, but contribute to the quality and overall achievement of the project, (e.g., donated conference space...), can not be shown as a own contribution!

Ineligible costs• Debts and provisions for losses or debts• Interest on debt• Items that are already funded by other means / programs• Buying or rental land with an existing facility already built• Foreign exchange losses• Taxes, including VAT (not including labor taxes)• Customs and import duties• Cost of used (second hand) equipment / product• Bank fees and guarantees