Bank charges are normally recorded in the organisations accounts as overheads, and assuming this to be the partners’ normal practice, then the costs are not eligible direct costs but are eligible indirect costs.
On the other hand, it is our view that the bank charges paid by the coordinator from the consortium/coordination bank account are exceptional to his “normal” transactions. As such, in his books of account and audited and management accounts, he should record them as direct costs not overheads. If he does this, then in our opinion, the EU should accept the bank charges as a direct management cost in form C.
If the above action is taken by the coordinator and he transfers to each partner with an instruction to his bank “to pay net of all bank charges for payer and payee”, then he will record the bank charges of both parties (which have been debited to the consortium/coordination bank account) as direct costs in his books of account and audited and management accounts, he should record all of them as direct costs not overheads on form C.
In FP6 as apposed to FP5, the Commission have removed from contracts that the coordinator has to transfer money to the partners net of bank charges.
Many “new” Coordinators are therefore saying that the partners bear all the bank charges.
In fact, the coordinator should pay them and then claim them back under the management activity were they are eligible costs and are covered at 100%.