Budgetary questions

Explain in the easiest way possible the difference between Lump sums and Flat rates.

Lump sums are for money provided to a third party; flat-rates are money retained by the Applicant.

How should the Budget be distributed between Applicant and partners?

As stipulated in sections 2.1.1 and 2.1.2 of the Guidelines for grant Applicants, if the proposal is selected, the Applicant (the "beneficiary") will act as the only contracting party to the Contracting Authority. The Applicant is in charge of the overall project management and is responsible to the EU for the implementation of the contract and for the use of funds. The Applicant signs the contract, receives funds, reports (both technical and financial) on the implementation of the action and on the use funds. It is up to the Applicant to decide how the funds advanced by the Contracting Authority are allocated and distributed to and between the partners, in line with the objectives of the action. Each partner must provide evidence of expenditure modalities and that they have been indeed incurred to the Applicant, who in turn reports to the Contracting Authority. In this respect it may be advisable that the Applicant and the partners sign an agreement including reporting modalities and an internal budget breakdown between the Applicant and the partners.

The budget template has some formulas. Can we add formulas?

Please do not change existing formulas, in order to not interfere with the document’s configuration.

The budget does not have detail for activities. Should this be the case or do you need details to be added?

The budget must be filled in based on the available budget lines in the template, allowing for flexibility and sufficient details. Any other costs not included in the specific lines can be added (in more lines) dedicated to other costs. Each of the added budget line in other costs must be clearly indicated and described.

What types of cost can be considered as eligible costs?

For eligible costs, please refer to section 2.1.4 of the Guidelines for grant Applicants.

From which sources should the balance be financed?

As stipulated in section 1.3 of the Guidelines for grant Applicants, the balance (i.e. the difference between the total cost of the action and the amount requested from the Contracting Authority) must be financed by the Applicant’s and/or partner’s own resources or other sources apart from the European Union budget or the European Development Fund. This being said, it is up to the Applicant to decide on the most appropriate sources of funding for the action.

Can staff salaries be counted as contributions in kind?

As set out in Section 2.1.4 of the Guidelines for grant Applicants, the cost of staff assigned to the action is not a contribution in kind and may be considered as co-financing in the budget of the action when paid by the beneficiary or partners. Nevertheless, salaries paid to staff working for other projects cannot be charged to the new proposed action. Furthermore, unpaid staff (voluntary works) would be considered as a contribution in kind.

When converting from a local currency into EUR, should the current exchange rate be used or the exchange rate applicable at the end of each respective financial year?

For the purpose of preparing an application, the exchange rate used should be the most recent one published on the InforEuro website at the time of proposal submission. The InforEuro site can be accessed at the following address: http://ec.europa.eu/budget/inforeuro/index.cfm?Language=en
As stipulated in Article 15.8 of the General Conditions, your final financial report should consider the average InforEuro rate of exchange of the months during which the action is implemented.

Are action costs incurred before the signing of the contract eligible for co-financing?

As indicated in section 6.2.8 of the Practical Guide to contract procedures for EC external actions (PRAG)
Grants may, as a rule, only cover costs incurred after the date on which the grant contract is signed.

Is it possible to finance the travel costs completely with funds other than from the EU?

All costs related to the project should be listed in the budget regardless of who pays for what component. Co-financing is applied to the entire budget and not to certain segments of it. The EU will contribute based on the percentage of the total eligible cost indicated in the contract Special Conditions and the beneficiary is responsible to co-fund the rest from whatever sources (see also answer 55).

Is it correct that (under Action 2 EVS) volunteer accommodation and meals are excluded from eligible costs? Should these costs then not be included in the budget?

No, that is incorrect, there is a specific budget component of a lump sum of 360 euro’s per month per volunteer specifically designated to cover such costs (table 1 of article 2.1.4). Thus it is eligible, but included in a lump sum format. In addition a monthly allowance allocation is also eligible (table 2 of article 2.1.4).

In regard to the Budget Appendix Table: there is a separate line for the budget, including taxes, while in another line it is required to write the full amount without tax (excluding taxes). Is there a need to separate the tax from the estimated price of each section (line)? If so, how can you calculate it, since some of the sections are intended for other countries, then the percentage of the tax changes?

This budget line is only to be utilised: “Taxes, including VAT. Only to be filled in where the Beneficiary (or where applicable, its partners) can show it cannot reclaim them.” All other costs
must exclude any taxes and/or VAT.

In relation to eligible costs for action 3- training and networking - activity per cost, base A ( food & lodging ) does not appear (Guidelines table Article 2.1.4). The same enquiry applies for Action 1- Youth exchange/ activity per cost, where Base B & C are not indicated?

For Action 3, there is Flat rate + Lump sum (base C) + Lump sum (base B), and this is clearly indicated
under eligible costs: lodging, meals, ...
For Action 1: Flat rate (360) + Flat rate (200) + Lump sum (Base A), and this is clearly indicated under
eligible costs: lodging, meals, ...


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Euro-Med Youth Programme


Arab Republic of Egypt
جمهورية مصر العربية

This programme is funded by the European Union