Common use of Identification of direct and indirect costs Clause in Contracts

Identification of direct and indirect costs. 1. Direct costs are all those eligible costs which can be attributed directly to the action and are identified by the beneficiary as such, in accordance with its accounting principles and its usual internal rules. In particular, the following categories of costs are eligible direct costs, provided that they satisfy the conditions of eligibility set out in Article II.13 as well as the following conditions: (a) the costs of personnel working under an employment contract with the beneficiary or an equivalent appointing act and assigned to the action, provided that these costs are in line with the beneficiary’s usual policy on remuneration. Those costs include actual salaries plus social security contributions and other statutory costs included in the remuneration. They may also comprise additional remunerations, including payments on the basis of supplementary contracts regardless of the nature of those contracts, provided that they are paid in a consistent manner whenever the same kind of work or expertise is required, independently from the source of funding used. The costs of natural persons working under a contract with the beneficiary other than an employment contract or seconded to the beneficiary by a third party against payment may be assimilated to such costs of personnel, provided that the following conditions are fulfilled: (i) the natural person works under the instructions of the beneficiary and, unless otherwise agreed with the beneficiary, in the premises of the beneficiary; (ii) the result of the work belongs to the beneficiary; and (iii) the costs are not significantly different from the costs of staff performing similar tasks under an employment contract with the beneficiary; (b) costs of travel and related subsistence allowances, provided that these costs are in line with the beneficiary’s usual practices on travel; (c) the depreciation costs of equipment or other assets (new or second-hand) as recorded in the accounting statements of the beneficiary, provided that the asset: (i) is written off in accordance with the international accounting standards and the usual accounting practices of the beneficiary and (ii) has been purchased in accordance with Article II.8.4 if the purchase occurred within the implementation period; The costs of rental or lease of equipment or other assets are also eligible, provided that these costs do not exceed the depreciation costs of similar equipment or assets and are exclusive of any finance fee; Only the portion of the equipment’s depreciation, rental or lease costs corresponding to the implementation period and the rate of actual use for the purposes of the action may be taken into account. By way of exception, the Special clauses in Article I.6 may provide for the eligibility of the full cost of purchase of equipment, where justified by the nature of the action and the context of the use of the equipment or assets; (d) costs of consumables and supplies, provided that they: (i) are purchased in accordance with Article II.8.4 and (ii) are directly assigned to the action; (e) costs arising directly from requirements imposed by the Agreement (dissemination of information, specific evaluation of the action, audits, translations, reproduction), including the costs of requested financial guarantees, provided that the corresponding services are purchased in accordance with Article II.8.4; (f) costs entailed by subcontracts within the meaning of Article II.8.1, provided that the conditions laid down in Article II.11.1 to II.11.3 are met; (g) duties, taxes and charges paid by the beneficiary, notably value added tax (VAT) which cannot be refunded to the beneficiary according to the applicable national legislation, provided that they are included in eligible direct costs; (h) costs relating to a pre-financing guarantee lodged by the beneficiary where that guarantee is required by Fusion for Energy; (i) costs relating to external audits where such audits are required in support of the requests for payments by Fusion for Energy. 2. Indirect costs are all those eligible costs which cannot be identified by the beneficiary as being directly attributed to the action but which can be identified and justified by its accounting system as being incurred in direct relationship with the eligible direct costs attributed to the action. They may not include any eligible direct costs. Indirect costs shall represent a fair apportionment of the overall overheads of the organisation. They may be identified according to one of the following methods: (a) Based on actual indirect costs for those beneficiaries which have an analytical accounting system to identify their indirect costs as indicated above. For this purpose, a beneficiary is allowed to use a simplified method of calculation of its full indirect eligible costs at the level of its legal entity if this is in accordance with its usual accounting and management principles and practices. Use of such a method is only acceptable where the lack of analytical accounting or the legal requirement to use a form of cash-based accounting prevents detailed cost allocation. The simplified approach shall be based on actual costs derived from the financial accounts of the last closed accounting year. (b) A beneficiary may opt for a flat rate of [x≤25%] of its total direct eligible costs, excluding its direct eligible costs for subcontracting. 3. The beneficiary shall apply the option chosen in paragraph 2 to all grant agreements concluded with Fusion for Energy. However, any beneficiary that has opted for the possibility described in paragraph 2(b) in a previous grant agreement may opt in this grant agreement for one of the methods described in paragraph 2(a). However, it shall then use that method in subsequent grant agreements.

Identification of direct and indirect costs. 1. Direct costs are all those eligible costs which can be attributed directly to the action and are identified by the beneficiary as such, in accordance with its accounting principles and its usual internal rules. In particular, the following categories of costs are eligible direct costs, provided that they satisfy the conditions of eligibility set out in Article II.13 II.12 as well as the following conditions: (a) the costs of personnel working under an employment contract with the beneficiary or an equivalent appointing act and assigned to the action, provided that these costs are in line with the beneficiary’s usual policy on remuneration. Those costs include actual salaries plus social security contributions and other statutory costs included in the remuneration. They may also comprise additional remunerations, including payments on the basis of supplementary contracts regardless of the nature of those contracts, provided that they are paid in a consistent manner whenever the same kind of work or expertise is required, independently from the source of funding used. The costs of natural persons working under a contract with the beneficiary other than an employment contract or seconded to the beneficiary by a third party against payment may be assimilated to such costs of personnel, provided that the following conditions are fulfilled: (i) the natural person works under the instructions of the beneficiary and, unless otherwise agreed with the beneficiary, in the premises of the beneficiary; (ii) the result of the work belongs to the beneficiary; and (iii) the costs are not significantly different from the costs of staff performing similar tasks under an employment contract with the beneficiary; (b) costs of travel and related subsistence allowances, provided that these costs are in line with the beneficiary’s usual practices on travel; (c) the depreciation costs of equipment or other assets (new or second-hand) as recorded in the accounting statements of the beneficiary, provided that the asset: (i) is written off in accordance with the international accounting standards and the usual accounting practices of the beneficiary and (ii) has been purchased in accordance with Article II.8.4 II.7.4 if the purchase occurred within the implementation period; The costs of rental or lease of equipment or other assets are also eligible, provided that these costs do not exceed the depreciation costs of similar equipment or assets and are exclusive of any finance fee; Only the portion of the equipment’s depreciation, rental or lease costs corresponding to the implementation period and the rate of actual use for the purposes of the action may be taken into account. By way of exception, the Special clauses in Article I.6 may provide for the eligibility of the full cost of purchase of equipment, where justified by the nature of the action and the context of the use of the equipment or assets; (d) costs of consumables and supplies, provided that they: (i) are purchased in accordance with Article II.8.4 II.7.4 and (ii) are directly assigned to the action; (e) costs arising directly from requirements imposed by the Agreement (dissemination of information, specific evaluation of the action, audits, translations, reproduction), including the costs of requested financial guarantees, provided that the corresponding services are purchased in accordance with Article II.8.4II.7.4; (f) costs entailed by subcontracts within the meaning of Article II.8.1II.7.1, provided that the conditions laid down in Article II.11.1 II.10.1 to II.11.3 II.10.3 are met; (g) duties, taxes and charges paid by the beneficiary, notably value added tax (VAT) which cannot be refunded to the beneficiary according to the applicable national legislation, provided that they are included in eligible direct costs; (h) costs relating to a pre-financing guarantee lodged by the beneficiary where that guarantee is required by Fusion for Energy; (i) costs relating to external audits where such audits are required in support of the requests for payments by Fusion for Energy. 2. Indirect costs are all those eligible costs which cannot be identified by the beneficiary as being directly attributed to the action but which can be identified and justified by its accounting system as being incurred in direct relationship with the eligible direct costs attributed to the action. They may not include any eligible direct costs. Indirect costs shall represent a fair apportionment of the overall overheads of the organisation. They may be identified according to one of the following methods: (a) Based on actual indirect costs for those beneficiaries which have the beneficiary who has an analytical accounting system to identify their its indirect costs as indicated above. For this purpose, a the beneficiary is allowed to use a simplified method of calculation of its full indirect eligible costs at the level of its legal entity if this is in accordance with its usual accounting and management principles and practices. Use of such a method is only acceptable where the lack of analytical accounting or the legal requirement to use a form of cash-based accounting prevents detailed cost allocation. The simplified approach shall be based on actual costs derived from the financial accounts of the last closed accounting year. (b) A The beneficiary may opt for a flat rate of [x≤25%] of its total direct eligible costs, excluding its direct eligible costs for subcontracting. 3. The beneficiary shall apply the option chosen in paragraph 2 to all grant agreements concluded with Fusion for Energy. However, any if the beneficiary that has opted for the possibility described in paragraph 2(b) in a previous grant agreement it may opt in this grant agreement for one of the methods described in paragraph 2(a). However, it shall then use that method in subsequent grant agreements.

Identification of direct and indirect costs. 1. Direct costs are all those eligible costs which can be attributed directly to the action and are identified by the beneficiary as such, in accordance with its accounting principles and its usual internal rules. In particular, the following categories of costs are eligible direct costs, provided that they satisfy the conditions of eligibility set out in Article II.13 II.12 as well as the following conditions: (a) the costs of personnel working under an employment contract with the beneficiary or an equivalent appointing act and assigned to the action, provided that these costs are in line with the beneficiary’s usual policy on remuneration. Those costs include actual salaries plus social security contributions and other statutory costs included in the remuneration. They may also comprise additional remunerations, including payments on the basis of supplementary contracts regardless of the nature of those contracts, provided that they are paid in a consistent manner whenever the same kind of work or expertise is required, independently from the source of funding used. The costs of natural persons working under a contract with the beneficiary other than an employment contract or seconded to the beneficiary by a third party against payment may be assimilated to such costs of personnel, provided that the following conditions are fulfilled: (i) the natural person works under the instructions of the beneficiary and, unless otherwise agreed with the beneficiary, in the premises of the beneficiary; (ii) the result of the work belongs to the beneficiary; and (iii) the costs are not significantly different from the costs of staff performing similar tasks under an employment contract with the beneficiary; (b) costs of travel and related subsistence allowances, provided that these costs are in line with the beneficiary’s usual practices on travel; (c) the depreciation costs of equipment or other assets (new or second-hand) as recorded in the accounting statements of the beneficiary, provided that the asset: (i) is written off in accordance with the international accounting standards and the usual accounting practices of the beneficiary and (ii) has been purchased in accordance with Article II.8.4 II.7.4 if the purchase occurred within the implementation period; The costs of rental or lease of equipment or other assets are also eligible, provided that these costs do not exceed the depreciation costs of similar equipment or assets and are exclusive of any finance fee; Only the portion of the equipment’s depreciation, rental or lease costs corresponding to the implementation period and the rate of actual use for the purposes of the action may be taken into account. By way of exception, the Special clauses in Article I.6 may provide for the eligibility of the full cost of purchase of equipment, where justified by the nature of the action and the context of the use of the equipment or assets; (d) costs of consumables and supplies, provided that they: : (i) are purchased in accordance with Article II.8.4 II.7.4 and (ii) are directly assigned to the action; (e) costs arising directly from requirements imposed by the Agreement (dissemination of information, specific evaluation of the action, audits, translations, reproduction), including the costs of requested financial guarantees, provided that the corresponding services are purchased in accordance with Article II.8.4; (f) costs entailed by subcontracts within the meaning of Article II.8.1, provided that the conditions laid down in Article II.11.1 to II.11.3 are met; (g) duties, taxes and charges paid by the beneficiary, notably value added tax (VAT) which cannot be refunded to the beneficiary according to the applicable national legislation, provided that they are included in eligible direct costs; (h) costs relating to a pre-financing guarantee lodged by the beneficiary where that guarantee is required by Fusion for Energy; (i) costs relating to external audits where such audits are required in support of the requests for payments by Fusion for Energy. 2. Indirect costs are all those eligible costs which cannot be identified by the beneficiary as being directly attributed to the action but which can be identified and justified by its accounting system as being incurred in direct relationship with the eligible direct costs attributed to the action. They may not include any eligible direct costs. Indirect costs shall represent a fair apportionment of the overall overheads of the organisation. They may be identified according to one of the following methods: (a) Based on actual indirect costs for those beneficiaries which have an analytical accounting system to identify their indirect costs as indicated above. For this purpose, a beneficiary is allowed to use a simplified method of calculation of its full indirect eligible costs at the level of its legal entity if this is in accordance with its usual accounting and management principles and practices. Use of such a method is only acceptable where the lack of analytical accounting or the legal requirement to use a form of cash-based accounting prevents detailed cost allocation. The simplified approach shall be based on actual costs derived from the financial accounts of the last closed accounting year. (b) A beneficiary may opt for a flat rate of [x≤25%] of its total direct eligible costs, excluding its direct eligible costs for subcontracting. 3. The beneficiary shall apply the option chosen in paragraph 2 to all grant agreements concluded with Fusion for Energy. However, any beneficiary that has opted for the possibility described in paragraph 2(b) in a previous grant agreement may opt in this grant agreement for one of the methods described in paragraph 2(a). However, it shall then use that method in subsequent grant agreements.