1. Interreg annual meeting 2016 Brussels | 6 June 2016 Simplified cost options in Interreg CENTRAL EUROPE Luca Ferrarese | Interreg CENTRAL EUROPE Joint Secretariat

2. TAKING COOPERATION FORWARD 2 SCOs as part of a bigger (simplification) picture Paperless exchanges Unique entry point E-Cohesion Common rules Standardised procedures Harmonisation Simpler accounting and reporting SCOs Light formal/eligibility requirements Formal req. € +++ = Reduced administrative burden

3. TAKING COOPERATION FORWARD 3 SCOs in Interreg CENTRAL EUROPE  15 % for office/admin costs (compulsory)  20 % for staff costs (optional)  1.720 hours per year for calculating hourly unit costs (compulsory for staff working on flexible No of hours basis)  For preparation and contracting costs (EUR 12.750 ERDF)  Paid if the project is approved and started its implementation Flat rate financing Standard scales of unit costs Lump sums

4. TAKING COOPERATION FORWARD 4 SCOs vs audit: focus on staff costs When timesheets are not available:  how to document adequacy of costs?  how to avoid double funding?  how to link to missions? Possible questions from auditorsEnvisaged solution Six-monthly staff report When 20 % flat rate is applied:  how to document that project- related staff cost occurred? Self-declaration by beneficiary For hourly rate on 1.720 hours basis:  How to deal with overfinancing (project worked hours > 1.720)? Not more than 1.720 hours can be charged to CE projects (Question to EC pending)

5. TAKING COOPERATION FORWARD 5 Advantages in applying SCOs Reduced administrative burden for beneficiaries (in average, 40-50 % of an Interreg CE project budget is staff costs!) € Reduced risk of ineligible costs as consequence of reduced audit trail requirements Reduced amount of controls for national controllers/auditors as consequence of reduced audit trail requirements The programme will assess effects of the introduced simplifications in terms of reduction of administrative burden

6. TAKING COOPERATION FORWARD 6 To keep in mind when applying SCOs The application of SCOs requires a change of mindset at many levels. Information and training for beneficiaries and controllers is essential Experience in applying SCOs is still not mature: there is too much room for interpretation and it is necessary to increase legal certainty in order to avoid “gold plating” Ineligibility of cost items used as calculation basis is magnified by the flat rate calculation ! ? EC support is necessary!

7. TAKING COOPERATION FORWARD 7 The pathway to simplification goes on… Paperless exchanges Unique entry point E-Cohesion Common rules Standardised procedures Harmonisation Simpler accounting and reporting SCOs Light formal/eligibility requirements Formal req. € +++ = Reduced administrative burden One-size-fit-all solution for Interreg State aid +

8. TAKING COOPERATION FORWARD 8 Luca Ferrarese Joint Secretariat | Interreg CENTRAL EUROPE Programme +43 1 8908088-2401 ferrarese@interreg-central.eu www.interreg-central.eu THANK YOU facebook.com/CentralEuropeProgramme linkedin.com/in/centraleuropeprogramme twitter.com/interregce