![Page 1: 1 Eligibility: Simplified costs The COCOF Guidance note & scope of application Laurent SENS European Union Cohesion Policy Train the trainers European](https://reader038.vdocuments.us/reader038/viewer/2022110116/55152c7355034685568b4604/html5/thumbnails/1.jpg)
1
Eligibility: Simplified costsThe COCOF Guidance note
& scope of application
Laurent SENS
European UnionCohesion Policy
“Train the trainers”European Commission seminar for managing and
certifying authorities 17 June 2010
![Page 2: 1 Eligibility: Simplified costs The COCOF Guidance note & scope of application Laurent SENS European Union Cohesion Policy Train the trainers European](https://reader038.vdocuments.us/reader038/viewer/2022110116/55152c7355034685568b4604/html5/thumbnails/2.jpg)
2
Objectives of the presentation
• Presentation of the COCOF working document on the simplified cost options
• Scope of application of the simplified costs options
![Page 3: 1 Eligibility: Simplified costs The COCOF Guidance note & scope of application Laurent SENS European Union Cohesion Policy Train the trainers European](https://reader038.vdocuments.us/reader038/viewer/2022110116/55152c7355034685568b4604/html5/thumbnails/3.jpg)
3
Triggering event: the amendments to the ESF/ERDF Regulations• With the amendment there are now 4
options to manage grants co-financed by Structural Funds– real cost, – flat rate for indirect costs (already existing
for ESF but new for ERDF).2 new options for both funds: – standard scale of unit cost and – lump sums
![Page 4: 1 Eligibility: Simplified costs The COCOF Guidance note & scope of application Laurent SENS European Union Cohesion Policy Train the trainers European](https://reader038.vdocuments.us/reader038/viewer/2022110116/55152c7355034685568b4604/html5/thumbnails/4.jpg)
4
Drafting the COCOF guidance note• a single document including all the options and all
the management and audit issues.
• Based on:– Information note to the Council with additional
details and ESF ‘acquis’– Discussions during the ESF Technical Working
Group, COCOF Technical Meetings, COCOF meetings
– Discussions with the national audit authorities and the European Court of Auditors
![Page 5: 1 Eligibility: Simplified costs The COCOF Guidance note & scope of application Laurent SENS European Union Cohesion Policy Train the trainers European](https://reader038.vdocuments.us/reader038/viewer/2022110116/55152c7355034685568b4604/html5/thumbnails/5.jpg)
5
Structure of the Guidance note• 5 parts + annex:
– INTRODUCTION– CHAPTER 1: Indirect costs declared on a flat
rate basis– CHAPTER 2: Flat rate costs calculated by
application of standard scales of unit costs– CHAPTER 3: Lump sums– CHAPTER 4: Common horizontal provisions– ANNEX: Legal bases
![Page 6: 1 Eligibility: Simplified costs The COCOF Guidance note & scope of application Laurent SENS European Union Cohesion Policy Train the trainers European](https://reader038.vdocuments.us/reader038/viewer/2022110116/55152c7355034685568b4604/html5/thumbnails/6.jpg)
6
The Guidance note: Introduction
• Origin of the options
• Purpose of the working document
• Need for an audit approach
• Link to national eligibility rules
• Restriction to grants
![Page 7: 1 Eligibility: Simplified costs The COCOF Guidance note & scope of application Laurent SENS European Union Cohesion Policy Train the trainers European](https://reader038.vdocuments.us/reader038/viewer/2022110116/55152c7355034685568b4604/html5/thumbnails/7.jpg)
7
Restricted to grants!
• Simplified cost options apply only to grants: If the operation or project is subject to public procurement, no possibility to use the simplified cost options.
Why? : In the case of public procurement payment is made
on the basis of a fixed price included in the contract (that could already include standard scales of unit costs).
Operation = project … or group of projects! where the simplified cost options are applicable to the operation, determine if it can be applied to all projects of the operation.
![Page 8: 1 Eligibility: Simplified costs The COCOF Guidance note & scope of application Laurent SENS European Union Cohesion Policy Train the trainers European](https://reader038.vdocuments.us/reader038/viewer/2022110116/55152c7355034685568b4604/html5/thumbnails/8.jpg)
8
The Guidance note: I- Flat rate rule for indirect costs
• Implemented by ESF OPs since the beginning of the programming period: no change (‘ESF acquis’). Copy paste of the existing ESF note (except audit part).
• Indirect costs reimbursed on a flat rate basis, as percentage of paid direct costs
• Rate and definition of direct costs to be established ex ante, i.e. agreed before or in the grant agreement
![Page 9: 1 Eligibility: Simplified costs The COCOF Guidance note & scope of application Laurent SENS European Union Cohesion Policy Train the trainers European](https://reader038.vdocuments.us/reader038/viewer/2022110116/55152c7355034685568b4604/html5/thumbnails/9.jpg)
9
The Guidance note: II- The standard scales of unit costs / III- Lump sumsSame structure for this chapter and the one on lump sums.
• General principles• Consequences in terms of financial management• Key points for the managing authority: calculation, correlation quantities / payments, justification of quantities, choice of the standard scale• Audit approach
![Page 10: 1 Eligibility: Simplified costs The COCOF Guidance note & scope of application Laurent SENS European Union Cohesion Policy Train the trainers European](https://reader038.vdocuments.us/reader038/viewer/2022110116/55152c7355034685568b4604/html5/thumbnails/10.jpg)
10
The Guidance note: IV - Common horizontal provisions
• Calculation
• General audit approach
• Retrospective entry into force
• Combination of options
• Impact on certification of expenditure
• Cross financing
• Compatibility with state aid rules
![Page 11: 1 Eligibility: Simplified costs The COCOF Guidance note & scope of application Laurent SENS European Union Cohesion Policy Train the trainers European](https://reader038.vdocuments.us/reader038/viewer/2022110116/55152c7355034685568b4604/html5/thumbnails/11.jpg)
11
Don’t forget …
• An important step towards simplification
• National authorities have 4 possible options for grants.
• No choice = use of ‘real cost’ principle
• Choice to do => fully understand the three simplified cost options and their consequences
![Page 13: 1 Eligibility: Simplified costs The COCOF Guidance note & scope of application Laurent SENS European Union Cohesion Policy Train the trainers European](https://reader038.vdocuments.us/reader038/viewer/2022110116/55152c7355034685568b4604/html5/thumbnails/13.jpg)
13
Simplified cost options: restricted to grants
• Explain Point 4. of the introduction of the working document on simplified cost options
• In order to clarify when these options are applicable or not
• Based on examples, from the simplest one to more complex examples.
![Page 14: 1 Eligibility: Simplified costs The COCOF Guidance note & scope of application Laurent SENS European Union Cohesion Policy Train the trainers European](https://reader038.vdocuments.us/reader038/viewer/2022110116/55152c7355034685568b4604/html5/thumbnails/14.jpg)
14
Operation = project
Ben
efic
iary
Operation?
![Page 15: 1 Eligibility: Simplified costs The COCOF Guidance note & scope of application Laurent SENS European Union Cohesion Policy Train the trainers European](https://reader038.vdocuments.us/reader038/viewer/2022110116/55152c7355034685568b4604/html5/thumbnails/15.jpg)
15
Operation = project … or group of projects
Ben
efic
iary
(ie
s)
Variation of what is considered as an operation or a project
Operation?
![Page 16: 1 Eligibility: Simplified costs The COCOF Guidance note & scope of application Laurent SENS European Union Cohesion Policy Train the trainers European](https://reader038.vdocuments.us/reader038/viewer/2022110116/55152c7355034685568b4604/html5/thumbnails/16.jpg)
16
Are simplified cost options applicable to the operation to be supported?
Start with the simplest case = the operation includes only one project.
![Page 17: 1 Eligibility: Simplified costs The COCOF Guidance note & scope of application Laurent SENS European Union Cohesion Policy Train the trainers European](https://reader038.vdocuments.us/reader038/viewer/2022110116/55152c7355034685568b4604/html5/thumbnails/17.jpg)
17
Working Document:
Point 4. Is the operation subject to public procurement contract?
![Page 18: 1 Eligibility: Simplified costs The COCOF Guidance note & scope of application Laurent SENS European Union Cohesion Policy Train the trainers European](https://reader038.vdocuments.us/reader038/viewer/2022110116/55152c7355034685568b4604/html5/thumbnails/18.jpg)
18Simplified Cost Options not applicable
Working Document:
Point 4. Is the operation subject to public procurement contract? YES
![Page 19: 1 Eligibility: Simplified costs The COCOF Guidance note & scope of application Laurent SENS European Union Cohesion Policy Train the trainers European](https://reader038.vdocuments.us/reader038/viewer/2022110116/55152c7355034685568b4604/html5/thumbnails/19.jpg)
19
Working Document:
Point 4.1. Is the project subject to public procurement contract?
Ben
efic
iary
Working Document:
Point 4. Is the operation subject to public procurement contract? NO
Operation = 1 project
Tra
inin
g
![Page 20: 1 Eligibility: Simplified costs The COCOF Guidance note & scope of application Laurent SENS European Union Cohesion Policy Train the trainers European](https://reader038.vdocuments.us/reader038/viewer/2022110116/55152c7355034685568b4604/html5/thumbnails/20.jpg)
20
Working Document:
Point 4.1. Is the project subject to public procurement contract? YES
Ben
efic
iary
Working Document:
Point 4. Is the operation subject to public procurement contract? NO
Simplified Cost Options not applicable
Operation = 1 project
Tra
inin
g
![Page 21: 1 Eligibility: Simplified costs The COCOF Guidance note & scope of application Laurent SENS European Union Cohesion Policy Train the trainers European](https://reader038.vdocuments.us/reader038/viewer/2022110116/55152c7355034685568b4604/html5/thumbnails/21.jpg)
21
Working Document:
Point 4.1. Is the project subject to public procurement contract? NO
Ben
efic
iary
Working Document:
Point 4. Is the operation subject to public procurement contract? NO
Simplified Cost Options applicable
Operation = 1 project
Tra
inin
g
![Page 22: 1 Eligibility: Simplified costs The COCOF Guidance note & scope of application Laurent SENS European Union Cohesion Policy Train the trainers European](https://reader038.vdocuments.us/reader038/viewer/2022110116/55152c7355034685568b4604/html5/thumbnails/22.jpg)
22
Are simplified cost options applicable to the operation to be supported?
But some operations include more than one project… operation = group of projects
Case 1: all projects implemented on the same basis
![Page 23: 1 Eligibility: Simplified costs The COCOF Guidance note & scope of application Laurent SENS European Union Cohesion Policy Train the trainers European](https://reader038.vdocuments.us/reader038/viewer/2022110116/55152c7355034685568b4604/html5/thumbnails/23.jpg)
23
Ben
efic
iary
(ies)
Tra
inin
g
Tra
inin
g
Tra
inin
g
Tra
inin
g
Tra
inin
g
Tra
inin
gT
rain
ing
Tra
inin
g
Tra
inin
g
Tra
inin
g
Tra
inin
g
Operation = group of projects
Operation = group of projects
![Page 24: 1 Eligibility: Simplified costs The COCOF Guidance note & scope of application Laurent SENS European Union Cohesion Policy Train the trainers European](https://reader038.vdocuments.us/reader038/viewer/2022110116/55152c7355034685568b4604/html5/thumbnails/24.jpg)
24
Working Document:
Point 4.1 Are the projects subject to public procurement contracts?
Ben
efic
iary
(ies)
Working Document:
Point 4. Is the operation subject to public procurement contract? NO
Tra
inin
g
Tra
inin
g
Tra
inin
g
Tra
inin
g
Tra
inin
g
Tra
inin
gT
rain
ing
Tra
inin
g
Tra
inin
g
Tra
inin
g
Tra
inin
g
Operation = group of projects
![Page 25: 1 Eligibility: Simplified costs The COCOF Guidance note & scope of application Laurent SENS European Union Cohesion Policy Train the trainers European](https://reader038.vdocuments.us/reader038/viewer/2022110116/55152c7355034685568b4604/html5/thumbnails/25.jpg)
25
Working Document:
Point 4.1 Are the projects subject to public procurement contracts? YES
Ben
efic
iary
(ies)
Working Document:
Point 4. Is the operation subject to public procurement contract? NO
Simplified Cost Options not applicable
Tra
inin
g
Tra
inin
g
Tra
inin
g
Tra
inin
g
Tra
inin
g
Tra
inin
gT
rain
ing
Tra
inin
g
Tra
inin
g
Tra
inin
g
Tra
inin
g
Operation = group of projects
![Page 26: 1 Eligibility: Simplified costs The COCOF Guidance note & scope of application Laurent SENS European Union Cohesion Policy Train the trainers European](https://reader038.vdocuments.us/reader038/viewer/2022110116/55152c7355034685568b4604/html5/thumbnails/26.jpg)
26
Working Document:
Point 4.1 Are the projects subject to public procurement contracts? NO
Ben
efic
iary
(ies)
Working Document:
Point 4. Is the operation subject to public procurement contract? NO
Simplified Cost Options applicable
Tra
inin
g
Tra
inin
g
Tra
inin
g
Tra
inin
g
Tra
inin
g
Tra
inin
gT
rain
ing
Tra
inin
g
Tra
inin
g
Tra
inin
g
Tra
inin
g
Operation = group of projects
![Page 27: 1 Eligibility: Simplified costs The COCOF Guidance note & scope of application Laurent SENS European Union Cohesion Policy Train the trainers European](https://reader038.vdocuments.us/reader038/viewer/2022110116/55152c7355034685568b4604/html5/thumbnails/27.jpg)
27
Are simplified cost options applicable to the operation to be supported?
But some operations include more than one project… operation = group of projects
Case 2: projects implemented on different bases
![Page 28: 1 Eligibility: Simplified costs The COCOF Guidance note & scope of application Laurent SENS European Union Cohesion Policy Train the trainers European](https://reader038.vdocuments.us/reader038/viewer/2022110116/55152c7355034685568b4604/html5/thumbnails/28.jpg)
28
Working Document:
Point 4.1. Are the projects subject to public procurement contracts?
Ben
efic
iary
(ies)
Working Document:
Point 4. Is the operation subject to public procurement contract? NO
Operation = group of projects
Tra
inin
g
Tra
inin
g
Tra
inin
g
Tra
inin
g
Tra
inin
g
Tra
inin
gT
rain
ing
Tra
inin
g
Tra
inin
g
Tra
inin
g
Tra
inin
g
Management costs
Per
son
alis
ed s
upp
ort
Per
son
alis
ed s
upp
ort
Per
son
alis
ed s
upp
ort
![Page 29: 1 Eligibility: Simplified costs The COCOF Guidance note & scope of application Laurent SENS European Union Cohesion Policy Train the trainers European](https://reader038.vdocuments.us/reader038/viewer/2022110116/55152c7355034685568b4604/html5/thumbnails/29.jpg)
29
Working Document:
Point 4.1. Are the projects subject to public procurement contracts?
Working Document:
Point 4. Is the operation subject to public procurement contract? NO
Operation = group of projects
Tra
inin
g
Tra
inin
g
Tra
inin
g
Tra
inin
g
Tra
inin
g
Tra
inin
gT
rain
ing
Tra
inin
g
Tra
inin
g
Tra
inin
g
Tra
inin
g
Management costs
Per
son
alis
ed s
upp
ort
Per
son
alis
ed s
upp
ort
Per
son
alis
ed s
upp
ort
YESNO
![Page 30: 1 Eligibility: Simplified costs The COCOF Guidance note & scope of application Laurent SENS European Union Cohesion Policy Train the trainers European](https://reader038.vdocuments.us/reader038/viewer/2022110116/55152c7355034685568b4604/html5/thumbnails/30.jpg)
30
Working Document:
Point 4.1 Are the projects subject to public procurement contracts?
Working Document:
Point 4. Is the operation subject to public procurement contract? NO
Operation = group of projects
Tra
inin
g
Tra
inin
g
Tra
inin
g
Tra
inin
g
Tra
inin
g
Tra
inin
gT
rain
ing
Tra
inin
g
Tra
inin
g
Tra
inin
g
Tra
inin
g
Management costs
Per
son
alis
ed s
upp
ort
Per
son
alis
ed s
upp
ort
Per
son
alis
ed s
upp
ort
Simplified Cost Options not applicable
Simplified Cost Options applicable
YES
NO
![Page 31: 1 Eligibility: Simplified costs The COCOF Guidance note & scope of application Laurent SENS European Union Cohesion Policy Train the trainers European](https://reader038.vdocuments.us/reader038/viewer/2022110116/55152c7355034685568b4604/html5/thumbnails/31.jpg)
31
Point 4.1. Are the projects subject to public procurement contracts? NO
Working Document:
Point 4. Is the operation subject to public procurement contract? NO
Point 4.2
Per
son
alis
ed s
upp
ort
Simplified Cost Options applicable
Detailed Budget
-Internal personnel costs-External personnel costs-Transport home/work-Travel costs-Rental costs-Purchase of consumables-Telephone, fax, postal costs-Water and electricity -Publicity-Depreciation of equipments-Cleaning services-…
The beneficiary implements itself the project: the simplified costs options are applicable, even if some of the budget lines or expenditure items within the project are outsourced.
! Assess impact of outsourcing on flat rate for indirect costs.