Common use of Eligibility of expenditures Clause in Contracts

Eligibility of expenditures. 4.1 General principles on the eligibility of costs in projects 1. The principles set forth in this Article shall apply mutatis mutandis to all eligible expenditures unless otherwise stated in this Agreement. 2. Eligible expenditures of projects are those actually incurred by the project promoter or the project partner, which meet the following criteria: a) they are incurred between the first and final dates of eligibility of a project as specified in the project contract; b) they are connected with the subject of the project contract and they are indicated in the detailed budget of the project; c) they are proportionate and necessary for the implementation of the project; d) they are used for the sole purpose of achieving the objective of the project and its expected outcome(s), in a manner consistent with the principles of economy, efficiency and effectiveness; e) they are identifiable and verifiable, in particular through being recorded in the accounting records of the project promoter and determined according to the applicable accounting standards and generally accepted accounting principles; and f) they comply with the requirements of applicable tax and social legislation. 3. Expenditures are considered to have been incurred when the cost has been invoiced, paid and the subject matter delivered (in case of goods) or performed (in case of services and works). Exceptionally, costs in respect of which an invoice has been issued in the final month of eligibility are also deemed to be incurred within the dates of eligibility if the costs are paid within 30 days of the final date of eligibility. Overheads and depreciation of equipment are considered to have been incurred when they are recorded on the accounts of the project promoter and/or project partner. 4. The project promoter’s internal accounting and auditing procedures must permit direct reconciliation of the expenditures and revenue declared in respect of the project with the corresponding accounting statements and supporting documents.

Eligibility of expenditures. ‌ 4.1 General principles on the eligibility of costs in projectsprojects‌ 1. The principles set forth in this Article shall apply mutatis mutandis to all eligible expenditures unless otherwise stated in this Agreement. 2. Eligible expenditures of projects are those actually incurred by the project promoter or the project partner, which meet the following criteria: a) they are incurred between the first and final dates of eligibility of a project as specified in the project contract; b) they are connected with the subject of the project contract and they are indicated in the detailed budget of the project; c) they are proportionate and necessary for the implementation of the project; d) they are used for the sole purpose of achieving the objective of the project and its expected outcome(s), in a manner consistent with the principles of economy, efficiency and effectiveness; e) they are identifiable and verifiable, in particular through being recorded in the accounting records of the project promoter and determined according to the applicable accounting standards and generally accepted accounting principles; and f) they comply with the requirements of applicable tax and social legislation. 3. Expenditures are considered to have been incurred when the cost has been invoiced, paid and the subject matter delivered (in case of goods) or performed (in case of services and works). Exceptionally, costs in respect of which an invoice has been issued in the final month of eligibility are also deemed to be incurred within the dates of eligibility if the costs are paid within 30 days of the final date of eligibility. Overheads and depreciation of equipment are considered to have been incurred when they are recorded on the accounts of the project promoter and/or project partner. 4. The project promoter’s internal accounting and auditing procedures must permit direct reconciliation of the expenditures and revenue declared in respect of the project with the corresponding accounting statements and supporting documents.