1. Simplified Cost Options in the Netherlands
How did SCOs improve our work?
Pieter Melis

2. Use of SCOs in the Netherlands
Programming Period :
SCO for the calculation of the hourly rate of staff costs;
SCO for the calculation of costs of vocational education leading to a qualification.
Programming Period :
40% flat rate on direct staff costs to calculate the remaining eligible costs of an operation (ESF regulation article 14(2);
Cost per participant per calendar day in the intervention in custodial institutions (delegated act, ESF regulation article 14(1)).
Simplified Cost Options in the Netherlands

3. Work in progress
SCO on technical assistance: a fixed amount of technical assistance for every EUR 100,000 included in a payment claim;
Education of pupils in special schools. (outcome or output based?);
Labour market activation Difficulty: heterogeneity of pathways and costs. Highly interested in work on EU level SCO.
Simplified Cost Options in the Netherlands

4. our work? How did it improve How dit it improve
Introduction of SCOs led to:
A reduction of administrative burden for beneficiaries, the Managing Authority and the Audit Authority;
A reduction of errors found in ESF funded projects at all levels.
Simplified Cost Options in the Netherlands

5. What does it practically mean for beneficiaries?
Custodial Institutions Agency The first feedback from the users of the SCOs used in Custodial Institutions is very positive:
“Finally we can focus on talking about content and not on how to fill in time sheets.”
“Both case managers and supporting officers see the use of this simplified way of administrating.”
“the 40% flat rate is already helping to reduce administrative burden greatly. Most of the errors found based on the internal control system were related to invoices, this is no issue anymore with the 40% flat rate and this highly reduces the administrative burden.”
Thanks to a bonus-malus arrangement the focus has shifted to achieving better results.
Simplified Cost Options in the Netherlands

6. What does it practically mean for MA and AA?
“Management verifications have become less complex. We also see a reduction in the number of errors.”
An example: “ the verification of the many different components in employers’ costs was very labour intensive and led to many discussions. Now, this does not have to be checked anymore”
AA:
“SCOs lead to a reduction in the number of errors and a reduction in administrative burden.”
An example: “many discussions and errors found were related to the price of purchased goods and services. In projects using the 40% flat rate, these discussions are history”.
Simplified Cost Options in the Netherlands

7. Only good experiences?
Off course the introduction of SCOs also brings difficulties and sometimes even resistance:
Beneficiaries are often hesitant to work with SCOs: “I have worked hard to develop an ESF-proof administration, this SCO cannot guarantee the same amount of ESF funding”
It takes a lot of effort to develop an SCO and to underpin it with evidence. This means a lot of work in advance, while not yet knowing what the SCO will yield in the end.
Simplified Cost Options in the Netherlands

8. Only good experiences?
The process of getting an SCO adopted by the Commission (delegated act, ESF art. 14(1) requires some patience by the member state.
Not all situations can be predicted in advance. Some interpretation discussions can still occur, even after adoption of an SCO.
Simplified Cost Options in the Netherlands

9. Tips and trics Involve the Audit Authority from the start;
Involve the Commission before formally submitting proposals;
Involve the beneficiaries and help them to see the benefits of using SCOs (you will need them in order to get the data underpinning the SCO);
Propose simplifications in line with article 14(1) to get a delegated act in order to attain legal certainty.
To the COM: Keep up the good work in supporting Member States. Continue working on EU level SCOs and do not impose the use of SCOs to MS.
Simplified Cost Options in the Netherlands

10. Questions? Pieter Melis Ministry of Social Affairs and Employment
Simplified Cost Options in the Netherlands