Only costs generated during the lifetime of the project can be eligible. Generally, costs must be actually incurred (actual costs). That means that they must be real and not estimated, budgeted or imputed. Only costs generated during the lifetime of the project can be eligible.
Costs must be determined in accordance with the usual accounting and management principles and practices of the beneficiary. The accounting procedures used in the recording of costs and receipts shall respect the accounting rules of the State in which the beneficiary is established. The beneficiary’s internal accounting and auditing procedures must permit direct reconciliation of the costs and receipts declared in respect of the project with the corresponding financial documents.
Cost must be used for the sole purpose of achieving the objectives of the project and its expected results, in a manner consistent with the principles of economy, efficiency and effectiveness. Finally the costs must be indicated in the proposal and finally the technical annex to the sub-grant agreement.
Moreover, personnel costs are only the costs of the actual hours worked by the persons directly carrying out work under the project and shall reflect the total remuneration: salaries plus social security charges (holiday pay, pension contribution, health insurance, etc.) and other statutory costs included in the remuneration. Such persons must:

  • be directly hired by the participant in accordance with its national legislation,
  • be working under the sole technical supervision and responsibility of the latter, and
  • be remunerated in accordance with the normal practices of the participant.

A subcontractor (i.e. a third party which has entered into an agreement on business conditions with your organisation) is not considered eligible for realising your planned work. Since a subcontractor that would carry out part of the work of the project would work without the direct supervision of your organisation and without a relationship of subordination.
However, a small travel budget and dissemination material in order to present your project in the FIWARE events and FInish accelerator related activities would be eligible.
We would not recommend to plan for equipment, since assuming a relatively short time period of the project, the time for depreciation would be expected too long. However, if you see an explicit need, please explain at sufficient detail in your proposal how the depreciation costs are accounted for enabling the external evaluators to assess the eligibility.
The following costs shall be considered as non-eligible and may not be charged to the project:

  1. identifiable indirect taxes including value added tax,
  2. duties,
  3. interest owed,
  4. provisions for possible future losses or charges,
  5. exchange losses, cost related to return on capital,
  6. costs declared or incurred, or reimbursed in respect of another project of the Union or of Euratom,
  7. debt and debt service charges, excessive or reckless expenditure.

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