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Communication campaign Most common issues identified : Personnel costs & Other direct costs Antonio Requena Fernández FCH JU Financial Officer. Personnel costs. Hours dedicated to the project. Personnel costs. Hourly rate. =. X. Hourly rate. Salary. Social security. - PowerPoint PPT Presentation
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Communication campaignMost common issues identified:
Personnel costs & Other direct costs
Antonio Requena Fernández FCH
JU Financial Officer
2
Personnel costs
Personnel costs
Hours dedicated
to the project
Hourly rateX=
3
Hourly rate
Hourly rate of
an employe
e=
Other statutary costs…
Health insurance
Pension contribution
Social securitySalary
Total annual costs
Total annual costs
Total annual costs
Total annual costsTotal annual costs
Annual productive hours
4
Hourly rate: Productive hours
Standard (ALL employees)
Total days in a year 365Weekends -104
Subtotal 261Annual holidays -21Statutory holidays -15Illness & others -15
Productive days per year
210
Working hours per day
8
Productive hours per year
1 680
Actual (individual)You compute the actual individual number of productive hours for each employee
vs
Don’t use billable hours!!!
If actual productive hours exceeds standard use actual!!!
The time recording system must allow keeping track of this number of actual individual productive hours
5
Overtime
Overtime may be accepted
In any other case: either overtime not paid or there is not clear distinction between normal and overtime hours
The hourly rate applicable to these «overtime» hours has to be calculated separately from the hourly rate applicable to the normal working hoursThe hourly rate is calculated:• Adding in the numerator:
normal costs + «overtime» costs (if any)
• Adding in the denominator: normal hours + «overtime» hours
If actually paid according to beneficiary’s policy AND
If there is a system that allows the identification of normal / overtime hours worked for the project
6
Hourly rate: Productive hours
Activities includedNormal working activities of the personnel, including: Sales and Marketing Preparation of proposals Administrative time Non-project related,
general research activities Teaching, training and
similar hours (in the case of universities/similar bodies)
Activities excluded General training (if not
project related) General internal meetings
(if not project related)
7
To be assessed by the auditors
Must give the same level of assurance as the timesheets
Alternative evidence
Name and signature of a supervisor
Amount of hours claimed for the project
Daily, weekly or monthly basis
Whole duration of the project
Timesheets
The golden rule: Claim ONLY actual hours worked on the project
Hours dedicated to the project
Full name of beneficiary Name and signature of employee
Title of the project
Reconcilable with the absences register
8
Example of timesheet
Project ReferenceName of BeneficiaryName of staff memberCalendar YearCalendar Month
Calendar Day 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 TotalHours worked on this project * 0.0Hours worked on other projects** 0.0Hours worked on other projects** 0.0Hours worked on other projects** 0.0Hours worked on other projects** 0.0Hours worked on other projects** 0.0Other activities 0.0Total hours 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0* In case of absence, indicate one of the reason codes below
** Indicate project reference
AbsencesWeekend WESick leave SLPublic holidays PHAnnual holidays AHOther absence OA
Hours worked on other projects* 0.0
Summary for this monthHours worked on this project 0.0Hours worked on other projects* 0.0
Hours worked on other projects* 0.0Hours worked on other projects* 0.0Hours worked on other projects* 0.0
Date and signature of staff member Date and signature of Project Manager/ Coordinator/Responsible
Other activities 0.0Total hours 0.0
Reference to the WP
Brief description of tasks
9
Actual personnel costs. Some errors
= X Productive hours
Annual costsHou
rsHours
Personnel
costsPerson
nel costs
Timesheets not reliable Claim of more hours than dedicated to
the project Claim of more hours than
substantiated by timesheets
+
10
Actual personnel costs. Some errors
= X Productive hours
Annual costs
HoursHoursPersonnel
costs
Personnel
costs
Timesheets not reliable Claim of less hours than dedicated to
the project Claim of less hours than substantiated
by timesheets
-
11
Actual personnel costs. Some errors
= XProductive hoursProductive
hours
Annual costsHou
rs
Personnel
costsPerson
nel costs
Use of standard hours instead of actual when the latter are higher
Use of billable hours instead of productive hours
-
12
Number of productive hours shall correspond to usual management practice of the beneficiary and reflects its actual working standards
They exclude any ineligible cost item and any cost claimed under other costs categories in order to avoid double funding
Based on the actual personnel costs of the beneficiary as registered in its statutory accounts, without estimated or budgeted elements
Based on the usual cost accounting practice of the beneficiary and consistently applied to their participations in the Framework Programme
Acceptability criteria for average personnel costs
Average personnel costs
13
SME owners and other natural person who do not receive a salary
SME owners
= X1 575
Annual living allowance corresponding to the appropriate research
category published in the ‘People’ Work Programme
of the year of the publication of the call to which the proposal has
been submittedHourly
rate 100
Country correction
factor published
in the same document
14
100
106.9X
1 57558 500 €/year
=39.71 €/h
Example: SME owner without salary from Austria with 5 years of experience at the time of deadline of submission of a proposal 2011
SME owners
Use the tool available at CORDIS
15
Travel costs• Only for staff taking part in the project• In case of conferences/seminars: copy of the
presentations to show direct link to the project• Expenses related to daily commute to work are not
considered travel costs.
Other direct costsThe golden rule: Costs attributed directly to the
project which can be identified as such according to the accounting principls of the beneficiary
Consumables and supplies• If they are necessary for the implementation of the
project• Subject to the accounting principles of the beneficiary,
the following consumables/supplies can be considered either direct or indirect costs:• Water, heating, electricity, maintenance, insurance• Communication expenses, postal charges, office
supplies• Costs related to general administration and
management• Miscellaneous recurring consumables
16
Minor tasks• Minor services not identifed in Annex I but needed for
the implementation of the project• Examples:
• Organisation of the rooms and catering for a meeting (logistic support)
• Printing of material, leaflets, etc.• Services related to setting up and maintenance of
a project website• To be reported under type of activity “Management”,
category of costs “Subcontracting”
Other direct costsThe golden rule: Costs attributed directly to the
project which can be identified as such according to the accounting principls of the beneficiary
17
Other direct costsThe golden rule: Costs attributed directly to the
project which can be identified as such according to the accounting principls of the beneficiary
Equipment• If necessary for the implementation of the project• Costs to be determined according to the
beneficiary’s usual accounting practice• Possibility of charge 100% equipment acquisition
price in 1 reporting period if national legislation allows it
• Otherwise, depreciation to be charged in each relevant periodic report
• Consider percentage of use in the project• Depreciation costs for equipment bought before the
start of the project• Yes, if the equipment has not yet been fully
depreciated , then the remaining depreciation can be eligible under the project
• Subject to the accounting principles of the beneficiary, computers and office software can be considered either direct or indirect costs