Home Register Feedback SiteMap Disclaimer Copyright Contact
Find an Auditor
About Us
Public Workshops
Customised Workshops
Horizon2020 Links
Leaflets and Tools
News
Newsletters
Helpline
Glossary
FP7 Financial Info and FAQs
FP7 Links
FP6 Financial Info & FAQs
FP6 Links
Project Admin
FP6 Financial Info & FAQs --> Project --> Costs --> Eligible Costs --> Misc

Q:

As a project coordinator, we distribute the pre-financing received from the Commission to the Partners. In doing that, the single payments are reduced by the amount of the bank transfer costs, specifically (a) by the costs of the source bank (our bank), and (b) by the costs of the receiving bank (partner’s bank). Are these costs eligible as management costs, and if this is the case, both of them or only (a) costs?

A:

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%.



Site Developed by S.Y. Technologies Last updated: 11/6/2017