1. Application form Section D - Eligibility rules -Flat rate - Partner budget breakdown Per Dahlström Managing Authority Christopher Parker, Joint Secretariat How to Apply Seminar 4th February 2015, Copenhgen, Denmark

2. Eligibility rules  The aim is to harmonize the regulatory framework as much as possible, so that the same rules apply regardless of which country the project partner operates in. Only in cases where expenditure is not covered by the European Commission rules and/or the NPA Eligibility Rules, national rules of the country where the expenditure is incurred shall apply.  The following expenditure categories are allowed in the NPA 2014- 2020: 1.Staff costs 2.Office and administrative expenditure 3.Travel and accommodation costs 4.External expertise and services costs 5.Equipment expenditure 6.In kind costs

3. General principles of eligibility  All expenditure in the allowed categories has to be project- related. This means that it should be clearly connected to project activities traceable in the approved application form. Furthermore, the expenditure has to be incurred, entered into the project accounts and paid by, or on behalf of, the project partner during the project period  National public procurement rules have to be observed for all purchases and full documentation of the procurement is obligatory for expenditure to be regarded as eligible.  Value added tax (VAT) is only eligible if it is non-recoverable for the project partner concerned and this is supported by a certificate from the tax authorities.

4. Application form, Section D  Monitoring System  Same ”Part 3” structure as in NPP 2007-2013  Budgets for every participating partner is registered in an Excel file.  Total budget and Total partner budget are self-generated from the individual partner budgets.

6. Staff Costs a.full-time b.part-time - part-time with a fixed percentage of time dedicated to the project - part-time with a flexible number of hours worked on the project - contracted on an hourly basis Forms of reimbursement  I. real costs, or  II. flat rate of (up to) 20% of direct costs other than staff costs,  Each partner organisation must decide on the reimbursement option and indicate the choice in the Application Form.  The same reimbursement option will apply to all staff members of the partner organisation working on the project. It will be set for the entire project duration.

7. 2 I. Real costs  Budget line specific rules  Staff costs cover real costs paid out based on a payslip or a document of equivalent probative value. Data from the organisation’s accounting system may be accepted.  The following costs are eligible components of staff costs:  a. Salary payments fixed in the employment/work contract, an appointment decision (in the case of natural persons working for the partner organisation under a contract other than an employment/work contact), or by law.  b. Any other costs directly linked to the salary payments, incurred and paid by the employer, such as employment taxes and social security including pensions as long as they are fixed in the employment document and they are in accordance with the legislation and standard practices in the country and/or organisation.

8. II. Flat rate Staff costs = 20% * eligible direct costs other than staff costs  Direct costs are all costs that can be attributed directly to the project and are identified by the partner organisation as such, in accordance with accounting principles and internal rules of the organisation.  Direct costs that form the basis for calculation of staff costs must be incurred and paid by the partner organisation as real costs.  Direct costs that form the basis for calculation of staff costs must not include any office and administration costs, if a flat rate option is used on the office and administration budget line.  Indirect costs (i.e. costs that cannot be assigned in full to the project) must not be taken into account in the calculation of staff costs.

9. Office and administration  Cover operating and administrative expenses of the partner organisation that support delivery of project activities either direct or indirect:  Direct costs are costs that can be attributed directly to the project and are identified by the partner organisation as such, in accordance with accounting principles and internal rules of the organisation.  Indirect costs are costs that cannot be assigned in full to the project, as they link to various activities of the organisation, including activities that do not relate to the project.  No cost item can be accounted for twice as this is considered “double funding” and not permissible under Common Provisions Regulation (EU) No 1303/2013 Article 65.11.

10.  Office and administrative expenditure shall be limited to the following:  office rent;  insurance and taxes related to the buildings where the staff is located and to the equipment of the office (e.g. fire, theft insurances);  utilities (e.g. electricity, heating, water);  office supplies;  general accounting provided within partner organisation;  archives;  maintenance, cleaning and repairs;  security;  IT systems;  communication (e.g. telephone, fax, internet, postal services, business cards);  bank charges for opening and administering requires a separate account to be opened and for transnational financial transactions

11.  Indirect costs, they may be calculated at a flat rate in one of the following ways:  a flat rate of up to 25% of eligible direct costs, provided that the flat rate is calculated on the basis of a fair, equitable and verifiable calculation method or a method applied under schemes for grants funded entirely by the Partner State for a similar type of operation and beneficiary;  a flat rate of up to 15% of eligible direct staff costs without there being a requirement for the Partner State to perform a calculation to determine the applicable rate.  A flat rate calculation covers all office and administration costs, i.e. there is no distinction between direct and indirect costs.

12.  Flat rate  Calculation of office and administration costs  I.Flat rate 15%  Office and administration costs are calculated as a flat rate of 15% of staff costs.  Office and administration costs = 15% * eligible staff costs

13.  The flat rate covers all office and administration costs, i.e. there is no distinction between direct and indirect costs.  Office and administration costs can be calculated as flat rate regardless of the form of reimbursement applied under the staff costs budget line, e.g. staff costs calculated as a flat rate can still form the basis for the calculation of office and administration costs.  By applying the 15% flat rate option, partners do not need to document that the expenditure has been incurred and paid, or that the flat rate corresponds to the reality.

14.  II.Flat rate 25%  Office and administration costs are calculated as a flat rate of 25% of eligible direct costs.  The flat rate covers all direct eligible costs.  A flat rate of up to 25% of eligible direct costs, provided that the flat rate is calculated on the basis of a fair, equitable and verifiable calculation method or a method applied under schemes for grants funded entirely by the Partner State for a similar type of operation and beneficiary.

15. Travel and accommodation General principles  Travel and accommodation costs must clearly link to the project and be essential for effective delivery of the project activities.  Costs must be definitely borne by the partner organisation. Direct payment by a staff member of the partner organisation must be supported by a proof of reimbursement from the employer.  Any expenditure item defined as travel costs, accommodation costs, costs of meals or travel-visa costs that is already covered by a daily allowance, cannot be eligible in addition to the daily allowance, i.e. no double funding is permissible (ref: Article 65.11 Common Provisions Regulation (EU) No 1303/2013).

16. Budget line specific rules  Costs of travel and accommodation related to activities outside (the Union part of) the programme area are only eligible, if they have been included in the approved Application Form or approved by the programme following a request for travel. In all cases, benefits of such activities to the programme area must be demonstrated.  Maximum daily rates for hotel and subsistence should be respected, please use 150 EUR/night for hotel Programme-specific conditions  Travel and accommodation costs outside the Union part of the programme area are eligible under the following conditions:  the operation is for the benefit of the programme area

17.  the total amount allocated under the cooperation programme to operations located outside the Union part of the programme area does not exceed 20 % of the support from the ERDF at programme level, Please note that planned travelling outside the programme area should, as far as possible, be described and justified in the project application with regards to the benefit for the programme area.  For travels outside the programme area that have not been included in the approved project application, pre-approval by the Joint secretariat (in writing), is requested to confirm that it is for the benefit of the programme area. This applies to all travelling outside the programme area except for:  Travelling to and from the Joint Secretariat in Copenhagen for meetings and seminars;  Travelling to and from project partners located outside the programme area.

18. External expertise and services Definition  Expenditure for the financing of external expertise and services provided by a public or private body external to project partner organisation.  “External expertise and services” covers costs paid on the basis of contracts/written agreements are expected to be supported by invoices, and linked to the delivery of the project.

19. General principles  The work by external experts and service providers must be essential to the project.  Each project partner organisation is responsible for ensuring that EU and national public procurement rules are respected, follow principles of transparency and non-discrimination.  Sub-contracting by external experts, not part of the original bid, is only eligible, if it forms a minor part of the of the contracted activities of the External Expert’s contract, and is clearly adding value to the project not leading to any additional costs.  Sub-contracting between project partners is not allowed.  Project partners cannot be contracted as external experts.  Please note Associated Partners are not entitled to have external expert fees.  Expenses, such as travel costs may be covered by the project.

20. Budget line specific rules  All additional costs related to external experts (e.g. travel and accommodation expenses for external experts) should be recorded under this budget line.  External expertise and services purchased for the purpose of the project auditing, and communications should be included under this budget line.

21. Equipment expenditure General principles  Costs of equipment are eligible if they have been approved by the programme.  Costs of equipment are eligible if no other EU funds have contributed towards financing of the same expenditure item, i.e. no double funding is permissible (ref: Article 65.11 Common Provisions Regulation (EU) No 1303/2013).  All costs are subject to applicable public procurement rules and each partner organisation is responsible for ensuring that these rules have been respected.

22. Budget line specific rules  Purchase cost of equipment is eligible, if it is used solely for the purpose of the project or the target group in line with objectives of the project and incurred and paid within the eligible period.  Depreciation applies if the economic life-time of equipment exceeds the duration of the project (ref. Article 69.2 Common Provisions Regulation (EU) 1303/2013). The cost has to be calculated in accordance with the legislation and general accounting policy of the partner organisation.  Full purchase cost of equipment that is not depreciable (e.g. low-value asset) is eligible.

23. Programme-specific conditions  For the calculation of depreciation, the amount of the expenditure should be duly justified by supporting document having equivalent probative value to invoices for eligible costs. The costs could relate exclusively to the project period determined in the Grant offer Letter.  The following information is required for the calculation: (a)The cost and description of the purchased item. (b)The purchasing date. (c)The % of the item use devoted solely to the project, over the life of the item. (d)Public grants should not have contributed to the depreciated asset. (e)Depreciation expenditure is only eligible provided that the full purchase price of the asset is not declared as eligible expenditure.

24. In-Kind Definition In-kind contributions refers to contributions either public or private from an organisation outside the project partnership. In-kind match-funding in the projects can take the form of: a)Own used resources from a “third party organisation” participating in the project, such as the provision of works, goods, services, land and real estate b)Cash contributions from external financiers outside the project partnership. c)In-kind contributions from external financiers outside the project partnership.

25. General principles  (a) The support paid to a project, which includes contributions in In-kind should not exceed the total eligible expenditure at the end of the project period;  (b) The value attributed to contributions of In-kind should not exceed the costs generally accepted in the market;  (c) The value and the delivery of the In-Kind contribution can be independently assessed and verified.

26. Net Revenue Definition:  “Net revenue “means cash in-flows directly paid by users for the goods or services provided by the operation, such as charges borne directly by users for the use of infrastructure, sale or rent of land or buildings, or payments for services less any operating costs and replacement costs of short-life equipment incurred during the corresponding period.  Operating cost- savings generated by the operation shall be treated as net revenue unless they are offset by an equal reduction in operating subsidies

27.  Where not all the investment cost is eligible for co-financing, the net revenue shall be allocated pro rata to the eligible and non- eligible parts of the investment cost.  The eligible expenditure of the operation to be con-financed from the ESI Funds shall be reduced in advanced taking into account the potential of the operation to generate net revenue over a specific reference period that covers both implementation of the operation and the period after its completion.

28.  Operations whose total eligible cost before application does not exceed EUR 1 000 000 do not need to calculate the expected net revenue after the implementation of the project.  However the net revenue generated during the implementation of such projects and not taken into account at the time of approval of the project must still be deducted from the eligible expenditure. No later than the final payment claim submitted by the beneficiary.  Please take a look at regulation 1303/2013 article 61 and 65.8 for more information.

29. Template for partner budget breakdown Northern Periphery and Arctic Programme 2014 -2020 Project title: Partner number: Partner name in English: In order to enable a complete assessment of the proposed project budget (Main Application, Part D) the applicant is required to provide the Programme Secretariat with a project breakdown highlighting each type of expenditure. After showing how each type of expenditure is calculated, the total costs shall be allocated into the different project years in the right hand section. Please note that the breakdown totals must equal the totals in the project cost budget (Main Application, Part D). Please note that all amounts must be provided in Euro. The data sheet contains figures as an example. Please remember to delete this!

30. Type of expenditure, page 1: 1. Staff costs Job titleAnnual salary (EUR) Social contributions (EUR) Annual amount of working hours Hourly rateEstimated no of hours in project Total cost Project Manager40 00020 0001 76034,09500,0017 045,45 Project officer35 00015 0001 60031,25125,003 906,25 0,00 Subtotal 20 951,70 2. Office and adminstration costs Type of office cost Unit price (if possible)UnitsOther costs Total cost 4,0030,00 3120,00 10,00 2100,00 50,0045,00 2 250,00 Subtotal 2 470,00 3.Travel and accommodation Activity (state travelling from - to) Number of hotel nights Hotel cost / person / nightSubsistence /person/day Travel cost / person ParticipantsTotal cost 100,0015,00 1 500,00 0,00 Subtotal 1 500,00

31. Period 1Period 2Period 3Period 4Period 5Period 6 Cost 5 000,00 2 045,4517 045,45 1 000,00 906,253 906,25 0,00 6 000,00 0,00 2 951,7020 951,70 Period 1Period 2Period 3Period 4Period 5Period 6 Cost 0,00 650,00 1 170,001 820,00 650,00 0,00 1 170,002 470,00 Period 1Period 2Period 3Period 4Period 5Period 6 Cost 1 500,00 0,00 1 500,00

32. 4. External expertise and service costs Type of service Unit price (if possible)UnitsOther costs Total cost External Ltd25 000,0012000 27 000,00 0,00 Subtotal 27 000,00 5. Equipment expenditures Type of equipmnetUnit price (if possible)UnitsOther costs Total cost computer5004 2 000,00 300,0010,001 166,67 4 166,67 Subtotal 4 166,67 6. In-Kind Type of in kind contribution Unit price (if possible)Units Total cost 0,00 Subtotal 0,00 7. Reduction: Planned project revenue (-) Type of costUnit price (if possible)Units Total costs Associate partner staff costs10,0010 100,00 0,00 Subtotal 100,00 Total55 988,37

33. Period 1Period 2Period 3Period 4Period 5Period 6 Cost 15 000,0012 000,00 27 000,00 0,00 15 000,0012 000,000,00 27 000,00 Period 1Period 2Period 3Period 4Period 5Period 6 Cost 666,666 2 000,00 1 196,00 1 186,00 588,674 166,67 1 196,00 1 186,000,00 588,674 166,67 Period 1Period 2Period 3Period 4Period 5Period 6 Cost 0,00 Period 1Period 2Period 3Period 4Period 5Period 6 Cost 100,00 0,00 100,000,00 100,00 Total55 988,37

34. PartnerName Project Title:P2 The figures provided below will automatically filter through into the self generated "Total Budget" table in Sheet 1. COST BUDGET (IN EURO)Month 1-6Month 7-12Month 13-18Month 19-24Month 25-30Month 31-36Total Budget lines 1. Staff costs50 000,00 2. Office and administrative expenditure50 000,00 3. Travel and accommodation costs50 000,00 4. External expertise and services costs50 000,00 5. Equipment expenditure50 000,00 6. In kind cost50 000,000,00 50 000,00 Reduce: Planned project revenue (-)-50 000,00 Total eligible costs250 000,000,00 250 000,00 Travel and accommodation costs outside the European Union part of the programme area (For ERDF partners only, not ERDF 20% 0,00 and ERDF Equivalent)

35. FINANCING PLAN (IN EURO)Month 1-6Month 7-12Month 13-18Month 19-24Month 25-30Month 31-36Total Public match funding, Cash (source, type) Note: Signed Co-financing Commitment should be provided when sumbitting the main application 0,00 Public match funding, In kind (source) Note: Signed Co-financing Commitment should be provided when sumbitting the main application 50 000,00 0,00 Maximum public match funding:50 000,000,00 50 000,00 Private match funding, Cash (source, type) Note: Signed Co-financing Commitment should be provided when sumbitting the main application 37 500,00 0,00 Private match funding, In kind (source) Note: Signed Co-financing Commitment should be provided when sumbitting the main application 0,00 Maximum private match funding:37 500,000,00 37 500,00 Total match funding (Public + Private)87 500,000,00 37 500,00

36. FINANCING PLAN (IN EURO)Month 1-6Month 7-12Month 13-18Month 19-24Month 25-30Month 31-36Total Public match funding, Cash (source, type)Note: Signed Co-financing Commitment should be provided when sumbitting the main application 0,00 Public match funding, In kind (source)Note: Signed Co-financing Commitment should be provided when sumbitting the main application 50 000,00 0,00 Maximum public match funding:50 000,000,00 50 000,00

37. Private match funding, Cash (source, type) Note: Signed Co-financing Commitment should be provided when sumbitting the main application 37 500,00 0,00 Private match funding, In kind (source) Note: Signed Co-financing Commitment should be provided when sumbitting the main application 0,00 Maximum private match funding:37 500,000,00 37 500,00 Total match funding (Public + Private)87 500,000,00 37 500,00 Member State ERDF:162 500,00 ERDF 20% (Partners outside the Progamme area) 0,00 Norway ERDF equivalent: 0,00 Iceland ERDF equivalent: 0,00 Faroe Island ERDF equivalent: 0,00 Greenland ERDF equivalent: 0,00 Total financial contribution250 000,000,00 200 000,00 Grant rate:65,0% Public match funding rate:20,0% Private match funding rate:15,0%

38. Member State ERDF:162 500,00 ERDF 20% (Partners outside the Progamme area) 0,00 Norway ERDF equivalent: 0,00 Iceland ERDF equivalent: 0,00 Faroe Island ERDF equivalent: 0,00 Greenland ERDF equivalent: 0,00 Total financial contribution250 000,000,00 200 000,00 Grant rate:65,0% Public match funding rate:20,0% Private match funding rate:15,0%

39. Total budget Project title: Note: This table is self-generated from the individual partner budgets and does not need to be filled in. TOTAL COST BUDGET (IN EURO)Month 1-6Month 7-12Month 13-18Month 19-24Month 25-30Month 31-36Total Types of expenditure 1. Staff costs50 000,000,00 50 000,00 2. Office and administrative expenditure50 000,000,00 50 000,00 3. Travel and accommodation costs50 000,000,00 50 000,00 4. External expertise and services costs50 000,000,00 50 000,00 5. Equipment expenditure50 000,000,00 50 000,00 6. In kind cost50 000,000,00 50 000,00 Reduction: Planned project revenue (-)-50 000,000,00 -50 000,00 Total eligible costs250 000,000,00 250 000,00 Travel and accommodation costs outside the European Union part of the programme area (For ERDF partners only, not ERDF 20% 0,00 and ERDF Equivalent) TOTAL FINANCING PLAN (IN EURO)Month 1-6Month 7-12Month 13-18Month 19-24Month 25-30Month 31-36Total Member State ERDF:162 500,000,00 162 500,00 ERDF 20% (Partners outside the Progamme area)0,00 Norway ERDF equivalent:0,00 Iceland ERDF equivalent:0,00 Faroe Island ERDF equivalent:0,00 Greenland ERDF equivalent:0,00 Public Match Funding:50 000,000,00 50 000,00 Private Match Funding:37 500,000,00 37 500,00 Total financial contribution250 000,000,00 250 000,00

40. Total partner budget Project title: Note: This table is self-generated from the individual partner budgets and does not need to be filled in. TOTAL COST BUDGET (IN EURO)LPP2P3P4P5P6P7P8Total Types of expenditure 1. Staff costs0,0050 000,000,00 50 000,00 2. Office and administrative expenditure0,0050 000,000,00 50 000,00 3. Travel and accommodation costs0,0050 000,000,00 50 000,00 4. External expertise and services costs0,0050 000,000,00 50 000,00 5. Equipment expenditure0,0050 000,000,00 50 000,00 6. In kind cost0,0050 000,000,00 50 000,00 Reduction: Planned project revenue (-)0,00-50 000,000,00 -50 000,00 Total eligible costs0,00250 000,000,00 250 000,00 Travel and accommodation costs outside the European Union part of the programme area Amount (For ERDF partners only, not ERDF 20% 0,00 and ERDF Equivalent) TOTAL FINANCING PLAN (IN EURO)LPP2P3P4P5P6P7P8Total Member State ERDF:0,00162 500,000,00 162 500,00 ERDF 20% (Partners outside the Progamme area)0,00 Norway ERDF equivalent:0,00 Iceland ERDF equivalent:0,00 Faroe Island ERDF equivalent:0,00 Greenland ERDF equivalent:0,00 Public Match Funding:0,0050 000,000,00 50 000,00 Private Match Funding:0,0037 500,000,00 37 500,00 Total financial contribution0,00250 000,000,00 250 000,00

41. Thank you for listening!  Per Dahlström  Stefan Nyström Managing Authority Tel.: +46 102254496 +46 102254505 E-mail: per.dahlstrom@lansstyrelsen.se  www.interreg-npa.eu