Common use of Budget Flexibility Clause in Contracts

Budget Flexibility. 7. Budget transfers (budget flexibility) The budget in Annex 2 is an estimation. The budget is therefore in principle flexible (with certain exceptions, see below). The maximum grant amount (see Article 5.2 and data sheet (point 3)) can however NOT be increased. Be aware however that the budget table is considered by the granting authority to reflect the actual situation and will accordingly be the basis for decisions such as the calculation of amounts to be offset from (pre-financing) payments for beneficiaries that have outstanding debts to the Commission (see Article 22). As a general principle, beneficiaries may transfer budget among themselves, between affiliated entities or between budget categories (without requesting an amendment; see Article 39) and — at the time of reporting — declare costs that are different from the estimated budget. If the incurred eligible costs during the action implementation turn out to be lower than the estimated eligible costs, the difference can thus be allocated to another beneficiary or another budget category. The amount reimbursed for the other beneficiary/other budget category (to which the budget transfer is intended) may thus be higher than planned. Example: The estimated budget includes personnel costs of EUR 60 000 for beneficiary A and EUR 75 000 for beneficiary B. However, at the end of the action, the actual personnel costs of beneficiary A are EUR 75 000 due to an increase in salaries or to the need to employ additional personnel to carry out the tasks mentioned in Annex 1 while the actual personnel costs of beneficiary B are EUR 60 000. This may be acceptable provided the additional costs of beneficiary A fulfil the eligibility requirements of Article 6 and up to the maximum grant amount set out in the Data Sheet, Point 3 (at the level of the action). The following changes always require an amendment:  changes to the description of the action in Annex 1  changes to the budget category for volunteers (if used)  changes to budget categories with lump sums costs or contributions (if used; including financing not linked to costs)  changes to budget categories with higher funding rates or budget ceilings (if used). The following require either an amendment or a simplified approval procedure:  addition of amounts for subcontracts not provided for in Annex 1

Budget Flexibility. 7. Budget transfers (budget flexibility) The budget in Annex 2 is an estimation. The budget is therefore in principle flexible (with certain exceptions, see below). The maximum grant amount (see Article 5.2 and data sheet (point 3)) can however NOT be increased. Be aware however that the budget table is considered by the granting authority to reflect the actual situation and will accordingly be the basis for decisions such as the calculation of amounts to be offset from (pre-financing) payments for beneficiaries that have outstanding debts to the Commission (see Article 22). As a general principle, beneficiaries may transfer budget among themselves, between affiliated entities or between budget categories (without requesting an amendment; see Article 39) and — at the time of reporting — declare costs that are different from the estimated budget. If the incurred eligible costs during the action implementation turn out to be lower than the estimated eligible costs, the difference can thus be allocated to another beneficiary or another budget category. The amount reimbursed for the other beneficiary/other budget category (to which the budget transfer is intended) may thus be higher than planned. Example: The estimated budget includes personnel costs of EUR 60 000 for beneficiary A and EUR 75 000 for beneficiary B. However, at the end of the action, the actual personnel costs of beneficiary A are EUR 75 000 due to an increase in salaries or to the need to employ additional personnel to carry out the tasks mentioned in Annex 1 while the actual personnel costs of beneficiary B are EUR 60 000. This may be acceptable provided the additional costs of beneficiary A fulfil the eligibility requirements of Article 6 and up to the maximum grant amount set out in the Data Sheet, Point 3 (at the level of the action). The following changes always require an amendment:  − changes to the description of the action in Annex 1  − changes to the budget category for volunteers (if used)  − changes to budget categories with lump sums costs or contributions (if used; including financing not linked to costs)  − changes to budget categories with higher funding rates or budget ceilings (if used). The following require either an amendment or a simplified approval procedure:  − addition of amounts for subcontracts not provided for in Annex 1

Budget Flexibility. 7. Budget transfers (budget flexibility) The budget in Annex 2 is an estimation. The budget is therefore in principle flexible (with certain exceptions, see below). The A transfer can NOT lead to an increase of the maximum grant amount (see Article 5.2 and data sheet (point 3)) can however NOT be increased). Be aware however that the budget table is considered by the granting authority to reflect the actual situation and will accordingly be the basis for decisions such as the calculation of amounts to be offset from (pre-financing) payments for beneficiaries that have outstanding debts to the Commission (see Article 22). As a general principle, beneficiaries may transfer budget among themselves, between affiliated entities or between budget categories (without requesting an amendment; see Article 39) and — at the time of reporting — declare costs that are different from the estimated budgetbudget provided that the action remains in line with the description of the action (if this is not the case, an amendment is needed, under the conditions of article 39). If the incurred eligible costs during the action implementation turn out to be lower than the estimated eligible costs, the difference can thus be allocated to another beneficiary or another budget category. The amount reimbursed for the other beneficiary/other budget category (to which the budget transfer is intended) may thus be higher than planned. Example: The estimated budget includes personnel costs of EUR 60 000 for beneficiary A and EUR 75 000 for beneficiary B. However, at the end of the action, the actual personnel costs of beneficiary A are EUR 75 000 due to an increase in salaries or to the need to employ additional personnel to carry out the tasks mentioned in Annex 1 while the actual personnel costs of beneficiary B are EUR 60 000. This may be acceptable provided the additional costs of beneficiary A fulfil the eligibility requirements of Article 6 and up to the maximum grant amount set out in the Data Sheet, Point 3 (at the level of the action). The following changes always require an amendment:  − changes to the description of the action in Annex 1  − changes to the budget category for volunteers (if used)  − changes to budget categories with lump sums costs or contributions (if used; including financing not linked to costs)  − changes to budget categories or activities with higher funding rates or budget ceilings (if used). − activation of the contingency reserve (where foreseen in the grant agreement) The following require either an amendment or a simplified approval procedure:  − addition of amounts for subcontracts not provided for in Annex 11 − other changes in certain specific cost categories, if specifically provided for in Article 6.2.

Budget Flexibility. 7. Budget transfers (budget flexibility) The budget in Annex 2 is an estimation. The budget is therefore in principle flexible (with certain exceptions, see below). The A transfer can NOT lead to an increase of the maximum grant amount (see Article 5.2 and data sheet (point 3)) can however NOT be increased). Be aware however that the budget table is considered by the granting authority to reflect the actual situation and will accordingly be the basis for decisions such as the calculation of amounts to be offset from (pre-financing) payments for beneficiaries that have outstanding debts to the Commission (see Article 22). As a general principle, beneficiaries may transfer budget among themselves, between affiliated entities or between budget categories (without requesting an amendment; see Article 39) and — at the time of reporting — declare costs that are different from the estimated budgetbudget provided that the action remains in line with the description of the action (if this is not the case, an amendment is needed, under the conditions of article 39). If the incurred eligible costs during the action implementation turn out to be lower than the estimated eligible costs, the difference can thus be allocated to another beneficiary or another budget category. The amount reimbursed for the other beneficiary/other budget category (to which the budget transfer is intended) may thus be higher than planned. Example: The estimated budget includes personnel costs of EUR 60 000 for beneficiary A and EUR 75 000 for beneficiary B. However, at the end of the action, the actual personnel costs of beneficiary A are EUR 75 000 due to an increase in salaries or to the need to employ additional personnel to carry out the tasks mentioned in Annex 1 while the actual personnel costs of beneficiary B are EUR 60 000. This may be acceptable provided the additional costs of beneficiary A fulfil the eligibility requirements of Article 6 and up to the maximum grant amount set out in the Data Sheet, Point 3 (at the level of the action). The following changes always require an amendment:  changes to the description of the action in Annex 1  changes to the budget category for volunteers (if used)  changes to budget categories with lump sums costs or contributions (if used; including financing not linked to costs)  changes to budget categories or activities with higher funding rates or budget ceilings (if used).  activation of the contingency reserve (where foreseen in the grant agreement) The following require either an amendment or a simplified approval procedure:  addition of amounts for subcontracts not provided for in Annex 11  other changes in certain specific cost categories, if specifically provided for in Article 6.2.

Budget Flexibility. 7. Budget transfers (budget flexibility) The budget in Annex 2 is an estimation. The budget is therefore in principle flexible (with certain exceptions, see below). The A transfer can NOT lead to an increase of the maximum grant amount (see Article 5.2 and data sheet (point 3)) can however NOT be increased). Be aware however that the budget table is considered by the granting authority to reflect the actual situation and will accordingly be the basis for decisions such as the calculation of amounts to be offset from (pre-financing) payments for beneficiaries that have outstanding debts to the Commission (see Article 22). As a general principle, beneficiaries may transfer budget among themselves, between affiliated entities or between budget categories (without requesting an amendment; see Article 39) and — at the time of reporting — declare costs that are different from the estimated budgetbudget provided that the action remains in line with the description of the action (if this is not the case, an amendment is needed, under the conditions of article 39). If the incurred eligible costs during the action implementation turn out to be lower than the estimated eligible costs, the difference can thus be allocated to another beneficiary or another budget category. The amount reimbursed for the other beneficiary/other budget category (to which the budget transfer is intended) may thus be higher than planned. Example: The estimated budget includes personnel costs of EUR 60 000 for beneficiary A and EUR 75 000 for beneficiary B. However, at the end of the action, the actual personnel costs of beneficiary A are EUR 75 000 due to an increase in salaries or to the need to employ additional personnel to carry out the tasks mentioned in Annex 1 while the actual personnel costs of beneficiary B are EUR 60 000. This may be acceptable provided the additional costs of beneficiary A fulfil the eligibility requirements of Article 6 and up to the maximum grant amount set out in the Data Sheet, Point 3 (at the level of the action). The following changes always require an amendment:  changes to the description of the action in Annex 1  changes to the budget category for volunteers (if used)  changes to budget categories with lump sums costs or contributions (if used; including financing not linked to costs)  changes to budget categories or activities with higher funding rates or budget ceilings (if used). activation of the contingency reserve (where foreseen in the grant agreement) The following require either an amendment or a simplified approval procedure:  addition of amounts for subcontracts not provided for in Annex 11 other changes in certain specific cost categories, if specifically provided for in Article 6.2.