HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN"L 61/28
EN
Official Journal of the European Union
8.3.2011
COMMISSION DECISION
of 2 March 2011
amending Decision 2008/456/EC laying down rules for the implementation of Decision
No 574/2007/EC of the European Parliament and of the Council establishing the External Borders
Fund for the period 2007 to 2013 as part of the General programme ‘Solidarity and Management of
Migration Flows’ as regards Member States’ management and control systems, the rules for
administrative and financial management and the eligibility of expenditure on projects co-
financed by the Fund
(notified under document C(2011) 1160)
(Only the Bulgarian, Czech, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Italian, Latvian,
Lithuanian, Maltese, Polish, Portuguese, Romanian, Slovak, Slovenian, Spanish and Swedish texts are authentic)
(2011/148/EU)
THE EUROPEAN COMMISSION,
annual programmes are ongoing, the revised rules on the
eligibility of expenditure of actions co-financed by the
External Borders Fund should apply from the 2011
annual programme. Member States should nonetheless
Having regard to the Treaty on the Functioning of the European
be given the possibility to apply those rules earlier
Union,
under certain conditions.
Having regard to Decision No 574/2007/EC of the European
Parliament and of the Council of 23 May 2007 establishing the
External Borders Fund for the period 2007 to 2013 as part of
(5)
In accordance with Articles 1 and 2 of the Protocol on
the General programme ‘Solidarity and Management of
the position of Denmark, annexed to the Treaty on
Migration Flows’
( 1 ), and in particular Article 25 and
European Union and the Treaty establishing the
Article 37(4) thereof,
European Community, Denmark has implemented
Decision No 574/2007/EC in its national law and is
therefore bound by this Decision.
Whereas:
(1)
In the light of the experience gained since the launch of
(6) This
Decision
constitutes
a
development
of
the
the External Borders Fund, it is appropriate to clarify the
provisions of the Schengen acquis in which the United
obligations in Commission Decision 2008/456/EC ( 2 )
Kingdom does not take part, in accordance with Council
relating to transparency, equal treatment and non-
Decision 2000/365/EC of 29 May 2000 concerning the
discrimination when implementing projects.
request of the United Kingdom of Great Britain and
Northern Ireland to take part in some of the provisions
of the Schengen acquis ( 3 ) and the subsequent Council
Decision 2004/926/EC of 22 December 2004 on the
(2) Member
States
are
required
to
report
on
the
implemen
putting into effect of parts of the Schengen acquis by
tation of the annual programmes. It is therefore appro
the United Kingdom of Great Britain and Northern
priate to clarify which information Member States have
Ireland ( 4 ). The United Kingdom is therefore not bound
to provide.
by it or subject to its application.
(3) In
order
to
reduce
the
administrative
burden
on
the
Member States and to provide greater legal certainty
the rules on the eligibility of expenditure of actions co-
(7) This
Decision
constitutes
a
development
of
the
financed by the External Borders Fund should be
provisions of the Schengen acquis in which Ireland does
simplified and clarified.
not take part, in accordance with Council Decision
2002/192/EC of 28 February 2002 concerning Ireland’s
request to take part in some of the provisions of the
Schengen acquis ( 5 ). Ireland is therefore not bound by it
(4) Most
of
the
changes
introduced
by
this
Decision
should
or subject to its application.
apply immediately. However, since the 2009 and 2010
( 3 ) OJ L 131, 1.6.2000, p. 43.
( 1 ) OJ L 144, 6.6.2007, p. 22.
( 4 ) OJ L 395, 31.12.2004, p. 70.
( 2 ) OJ L 167, 27.6.2008, p. 1.
( 5 ) OJ L 64, 7.3.2002, p. 20.

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EN
8.3.2011 Official
Journal
of
the
European
Union L
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(8) As
regards Iceland and Norway, Decision No
several of such authorities or several of such bodies
574/2007/EC constitutes a development of provisions
governed by public law shall act in accordance with the
of the Schengen acquis within the meaning of the
applicable Union and national public procurement law and
Agreement concluded by the Council of the European
principles.
Union and the Republic of Iceland and the Kingdom of
Norway concerning the association of those two States
with the implementation, application and development of
Entities other than those referred to in the first paragraph
the Schengen acquis ( 1 ), which fall within the areas
shall award contracts for the implementation of the projects
referred to in Article 1, points A and B of Council
following appropriate publicity in order to ensure
Decision 1999/437/EC of 17 May 1999 on certain
compliance with the principles of transparency, non-
arrangements for the application of the Agreement
discrimination and equal treatment. Contracts with a value
concluded by the Council of the European Union and
of less than EUR 100 000 may be awarded provided the
the Republic of Iceland and the Kingdom of Norway
concerned entity requests at least three offers. Without
concerning the association of those two States with the
prejudice to national rules, contracts with a value of less
implementation, application and development of the
than EUR 5 000 shall not be subject to any procedural
Schengen acquis ( 2 ).
obligations.’;
(9) As
regards
Switzerland,
Decision
No
574/2007/EC 3. in Article 21, paragraph 1 is replaced by the following:
constitutes a development of the provisions of the
Schengen aquis within the meaning of the Agreement
signed by the European Union, the European
‘1. The
responsible
authority
shall
notify
the
Commission
Community and the Swiss Confederation on the latter’s
by formal letter of any substantial change in the
association with the implementation, application and
management and control system and shall send a revised
development of the Schengen acquis which fall within
description of the management and control system to the
the areas referred to in Article 4(1) of the Council
Commission as soon as possible and at the latest at the time
decision on the signing, on behalf of the European
any such change takes effect.’;
Community, and on the provisional application of
certain provisions of this Agreement.
4. in Article 24, paragraph 3 is replaced by the following:
(10) The
measures provided for in this Decision are in
accordance with the opinion of the common
Committee ‘Solidarity and management of Migration
‘3. The
financial
tables
linked
to
the
progress
reports
and
Flows’ established by Decision No 574/2007/EC.
final reports shall present a breakdown of the amounts both

by priority and by specific priority, as defined in the strategic
guidelines.’;
(11) Decision
2008/456/EC should therefore be amended
accordingly,
5. Article 25 is amended as follows:
HAS ADOPTED THIS DECISION:
(a) in paragraph 1 the following sentences are added:
Article 1
Decision 2008/456/EC is amended as follows:
‘Any changes to the audit strategy submitted in respect
of Article 32(1)(c) of the basic act and accepted by the
Commission shall be sent to the Commission as soon as
1. in Article 9(1), the second sentence is replaced by the
possible. The revised audit strategy shall be established in
following:
accordance with the model in Annex VI, marking the
revisions introduced.’;
‘Any substantial change to the content of the calls for
proposals shall also be published under the same
conditions.’;
(b) paragraph 2 is replaced by the following:
2. Article 11 is replaced by the following:
‘2. Except
when
each
of
the
last
two
annual
programmes adopted by the Commission corresponds
to an annual Community contribution of less than
‘Article 11
EUR 1 million, the audit authority shall submit an
Implementation contracts
annual audit plan before 15 February each year, as
from 2010. The audit plan shall be established in
When awarding contracts for the implementation of the
accordance with the model in Annex VI. Member
projects, the State, regional or local authorities, bodies
States are not required to resubmit the audit strategy
governed by public law, associations formed by one or
when submitting the annual audit plans. In the case of
a combined audit strategy, as provided for in Article
( 1 ) OJ L 176, 10.7.1999, p. 36.
32(2) of the basic act, a combined annual audit plan
( 2 ) OJ L 176, 10.7.1999, p. 31.
may be submitted.’;

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L 61/30
EN
Official Journal of the European Union
8.3.2011
6. Article 26 is replaced by the following:
Article 2
1. Points 1 to 8 of Article 1 and points 1 to 5 of the Annex
‘Article 26
shall apply from the date of adoption of this Decision.
Documents established by the certifying authority
1. The
certification
relating
to
the
request
for
a
second 2. Point
6
of
the
Annex
shall
apply
from
the
implementation
pre-financing payment referred to in Article 41(4) of the
of the 2011 annual programmes at the latest.
basic act shall be drawn up by the certifying authority and
transmitted by the responsible authority to the Commission
in the format in Annex VIII.
3. Member
States
may
decide
to
apply
point
6
of
the
Annex
in respect of ongoing or future projects as from the 2009 and
2. The
certification
relating
to
the
request
for
a
final 2010 annual programmes in full respect of the principles of
payment referred to in Article 42(1)(a) of the basic act
equal treatment, transparency and non-discrimination. In that
shall be drawn up by the certifying authority and transmitted
case Member States shall apply the new rules in their entirety to
by the responsible authority to the Commission in the
the project concerned and, where necessary, shall amend the
format in Annex IX.’;
grant agreement. In respect of technical assistance expenditure
only, Member States may decide to apply point 6 of the Annex
as from the 2008 annual programme.
7. Article 37 is replaced by the following:
‘Article 37
Article 3
Electronic exchange of documents
This Decision is addressed to the Kingdom of Belgium, the
Republic of Bulgaria, the Czech Republic, the Federal Republic
In addition to the duly signed paper versions of the
of Germany, the Republic of Estonia, the Hellenic Republic, the
documents referred to in Chapter 3, the information shall
Kingdom of Spain, the French Republic, the Italian Republic, the
also be sent by electronic means.’;
Republic of Cyprus, the Republic of Latvia, the Republic of
Lithuania, the Grand Duchy of Luxembourg, the Republic of
Hungary, the Republic of Malta, the Kingdom of the
8. Article 40(3)(b) is replaced by the following:
Netherlands, the Republic of Austria, the Republic of Poland,
the Portuguese Republic, Romania, the Republic of Slovenia, the
Slovak Republic, the Republic of Finland and the Kingdom of
‘(b) for all other additional costs, until 30 June of the year
Sweden.
N (*) +2.
___________
(*) Where “N” is the year referred to in the financing
decision approving the annual programmes of the
Done at Brussels, 2 March 2011.
Member States.’;
For the Commission
9. the Annexes are amended in accordance with the Annex to
Cecilia MALMSTRM
this Decision.
Member of the Commission

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8.3.2011 Official
Journal
of
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European
Union L
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ANNEX
The Annexes to Decision 2008/456/EC are amended as follows:
1. Annex
III
is
amended
as
follows:
1.1. point 2 is deleted;
1.2. point 4.2 is deleted;
2. Annex
IV
is
amended
as
follows:
2.1. Part A, point 1.2 is replaced by the following:
‘1.2. Description of the process concerning selection of projects (at the level of the Responsible Authority/Delegated
authority or associated bodies) and their results’;
2.2. in Part A, point 2, table 1, last column the word ‘eligible’ is deleted;
3. Annex
V,
Part
A
is
amended
as
follows:
3.1. point 1.2 is replaced by the following:
‘1.2. Update from the progress report on the description of the organisation of the selection of projects (at the level
of the Responsible Authority/Delegated authority or associated bodies) and their results, if appropriate’;
3.2. the following point 1.8 is added:
‘1.8. Confirmation that no substantial changes to the Management and control system have taken place since the
last revision notified to the Commission on …’;
3.3. point 4 is replaced by the following:

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‘4. FINANCIAL IMPLEMENTATION
Final report on the implementation of the annual programme
Table 1
Detailed financial report
EN
Member State: […]

Annual programme concerned: […]
Situation at: [day/month/year]
Programmed by MS (as in the
(all figures in euro)
Commission approved annual
Committed at the level of the MS
Actual figures accepted by the responsible authority
programme)
(costs incurred by the beneficiaries and final EC contribution)
Receipts
Payment/
Total pro-
EC
% EC
Total
EC
% EC
Total
EC
% EC
Contribu-
generated Recovery to
Actions Projects Ref.
priority Ref. specific grammed
contribu
contribu
eligible
contribu
contribu
eligible
contribu
contribu
tions from
by the
be made by
priority (1 )
costs
tion
tion
costs
tion
tion
costs
tion
tion
third parties
project
the RA
Off
(a)
(b)
(c = b/a)
(d)
(e)
(f = e/d)
(g)
(h)
(i = h/g)
(j)
(k)
(l)
icial
Action 1: […] project
1:
[…]
Jour
nal
project N: […]
of
the
Total Action 1
European
Action …: […] project
1:
[…]
project N: […]
Union
Total Action …: […]
Action N: […] project
1:
[…]
project N: […]
Total Action N
Technical assistance
Other operations (1 )
TOTAL
0
0 0
%
0
0 0
%
0
0 0
%
0
(1 ) If applicable.’;
8.3.2011

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8.3.2011 Off
3.4. point 6 is replaced by the following:
‘6. ANNEXES
Project eligible expenditure and income compliance with the non-profit rule and project summary description.
Final report on the implementation of the annual programme
Table 6 A
EN

Project eligible cost and sources of income Compliance with the principle of non-profit as set out in item I.3.3 of Annex XI
Situation at: day/month/year
Eligible cost Sources
of
income
Total income
Direct costs Indirect
costs Total
eligible
cost
Contribution from the Contribution from third Receipts generated by
EU
parties
the project
(as set out in item I.3.3
of Annex XI)
(a) (b)
(c) = (a) + (b) (e) (f) (g)
(h)= (e) + (f) + (g)
icial
Project reference
Jour
Project reference
nal
Project reference
of
etc.
the
TOTAL ACTION 1
European
Project reference
Project reference
Union
Project reference
etc.
TOTAL ACTION 2
Project reference
Project reference
Project reference
etc.
TOTAL ACTION N
TECHNICAL ASSISTANCE
TOTAL ANNUAL PROGRAMME
L
61/33

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EN
Official Journal of the European Union
8.3.2011

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8.3.2011 Official
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European
Union L
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4. Annex
VIII
is
amended
as
follows:
4.1. the title is replaced by the following:
‘MODEL CERTIFICATION FOR SECOND PRE-FINANCING’;
4.2. in footnote 1 the word ‘eligible’ is deleted;
4.3. point 2 is replaced by the following:
‘2. the expenditure declared has been incurred in respect of actions selected for funding in accordance with the
criteria applicable to the annual programme;’;
5. in Annex IX, the title is replaced by the following:
‘MODEL CERTIFICATION FOR FINAL PAYMENT’;
6. Annex
XI
is
replaced
by
the
following:
‘ANNEX XI
RULES ON THE ELIGIBILITY OF EXPENDITURE EXTERNAL BORDERS FUND
I. General Principles
I.1. Basic
Principles
1. In accordance with the basic act, for it to be eligible, expenditure must be:
(a) within the scope of the Fund and within its objectives, as described in Articles 1 and 3 of the basic
act;
(b) within the eligible actions listed in Articles 4 and 6 of the basic act;
(c) needed to carry out the activities covered by the project, forming part of the multiannual and annual
programmes, as approved by the Commission;
(d) reasonable and comply with the principles of sound financial management, in particular, value for
money and cost-effectiveness;
(e) incurred by the final beneficiary and/or the partners in the project, who shall be established and
registered in a Member State, except in the case of international public sector organisations set up by
intergovernmental agreements, and specialised agencies set up by such organisations, the Inter
national Committee of the Red Cross (ICRC) and the International Federation of National Red
Cross and Red Crescent Societies. With regard to Article 39 of this Decision, the rules applicable
to the final beneficiary shall apply mutatis mutandis to the partners in the project;
(f) incurred in accordance with the specific provisions in the grant agreement.
2. In the case of multiannual actions within the meaning of Article 16(6) of the basic act, only the part of
the action co-financed by an annual programme is considered to be a project for the application of these
eligibility rules.
3. Projects supported by the Fund shall not be financed by other sources covered by the Community
budget. Projects supported by the Fund shall be co-financed by public or private sources.
I.2. Budget
of
a
project
The budget of a project shall be presented as follows:
Expenditure Income
+ Direct costs (DC)
+ Contribution from the EC (defined as the lowest of
+ Indirect costs (fixed percentage of DC, defined in the
the three amounts indicated in Article 12 of this
grant agreement)
Decision)
+ Contribution from the final beneficiary and the
partners in the project
+ Contribution from third parties
+ Receipts generated by the project
= Total Eligible Cost (TEC) =
Total
Income (TI)

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Official Journal of the European Union
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The budget shall be balanced: Total Eligible Cost shall be equal to Total Income.
I.3. Income
and
Non-Profit
Principle
1. Projects supported by the Fund must be of a non-profit-making nature. If, at the end of the project, the
sources of income, including receipts, exceed expenditure, the contribution to the project from the Fund
shall be reduced accordingly. All sources of income for the project must be recorded in the final
beneficiary’s accounts or tax documents, and must be identifiable and controllable.
2. Project income shall come from all financial contributions granted to the project by the Fund, from
public or private sources, including the final beneficiary’s own contribution, and from any receipts
generated by the project. “Receipts” for the purpose of this rule covers revenue received by a project
during the eligibility period as described in point I.4, from sales, rentals, services, enrolment/fees or other
equivalent income.
3. The Community contribution resulting from the application of the principle of non-profit, as referred to
under Article 12(c) of this Decision, will be the “total eligible cost” minus the “contribution from third
parties” and “receipts generated by the project”.
I.4. Eligibility
Period
1. Costs relating to a project must be incurred and the respective payments (except for depreciation) made
after 1 January of the year referred to in the financing decision approving the annual programmes of the
Member States. The eligibility period is until 30 June of the year N (*) + 2, meaning that the costs
relating to a project must be incurred before this date.
2. An exception to the eligibility period provided for in paragraph 1 is made for technical assistance for
Member States (refer to point IV.3).
___________
(*) Where “N” is the year referred to in the financing decision approving the annual programmes of the Member States.
I.5. Record
of
expenditure
1. Expenditure shall correspond to payments made by the final beneficiary. These must be in the form of
financial (cash) transactions, with the exception of depreciation.
2. As a rule, expenditure shall be justified by official invoices. Where this cannot be done, expenditure shall
be supported by accounting documents or supporting documents of equivalent evidential value.
3. Expenditure must be identifiable and verifiable. In particular,
(a) it must be recorded in the accounting records of the final beneficiary;
(b) it must be determined in accordance with the applicable accounting standards of the country where
the final beneficiary is established and with the usual cost accounting practices of the final bene
ficiary; and
(c) it must be declared in accordance with the requirements of applicable tax and social legislation.
4. As necessary, the final beneficiaries are obliged to keep certified copies of the accounting documents
justifying income and expenditure incurred by the partners in relation to the project concerned.
5. The storage and processing of records provided for in paragraphs 2 to 4 must comply with the national
data protection legislation.
I.6. Territorial
scope
1. Expenditure for actions described in Articles 4 and 6 of the basic act must be incurred in the territory of
the Member States, by the final beneficiaries defined in point I.1.1.(e), with the exception of:
— expenditure implementing actions relating to the general objective defined in Article 3(1)(d) of the
basic act; expenditures for those actions may be incurred in the territory of the Member States and in
third countries,

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— actions relating to the surveillance of external borders; those actions may take place both within and
beyond the territory of Member States.
2. Partners in the project registered and established in third countries may participate in projects only on a
no-cost basis, except in the case of international public sector organisations set up by intergovernmental
agreements, and specialised agencies set up by such organisations, the International Committee of the
Red Cross (ICRC) and the International Federation of National Red Cross and Red Crescent Societies.
II. Categories of eligible costs (at project level)
II.1. Direct
eligible
costs
The direct eligible costs of the project are costs that, with due regard to the general conditions of eligibility
set out in part I, are identifiable as specific costs directly linked to the implementation of the project. Direct
costs shall be included in the estimated overall budget of the project.
The following direct costs are eligible:
II.1.1. S
t
a
f
f
c
o
s
t
s
1. The cost of staff assigned to the project, comprising actual salaries plus social security charges and other
statutory costs is eligible, provided that this corresponds to the beneficiary’s usual policy on remu-
neration.
2. For international organisations, the eligible staff cost may include provisions to cover statutory obli
gations and entitlements relating to remuneration.
3. The corresponding staff costs of staff of public bodies are eligible to the extent that they relate to the
cost of activities which the relevant public body would not carry out if the project concerned were not
undertaken; this staff shall be seconded or assigned to the implementation of the project by a written
decision of the final beneficiary.
4. Staff costs shall be detailed in the forward budget, indicating functions and number of staff.
II.1.2. T r a v e l a n d s u b s i s t e n c e c o s t s
1. Travel and subsistence costs are eligible as direct costs for staff or other persons who participate in the
activities of the project and whose travel is necessary for the implementation of the project.
2. Travel costs shall be eligible on the basis of the actual costs incurred. Reimbursement rates shall be based
on the cheapest form of public transport and flights shall, as a rule, be permitted only for journeys over
800 km (return trip), or where the geographical destination justifies travelling by air. Where a private car
is used, reimbursement is normally made either on the basis of the cost of public transport, or on the
basis of mileage rates in accordance with published official rules in the Member State concerned or used
by the final beneficiary.
3. Subsistence costs shall be eligible on the basis of real costs or a daily allowance. Where an organisation
has its own daily rates (subsistence allowances), they shall be applied within ceilings established by the
Member State in accordance with national legislation and practice. Subsistence allowances are normally
understood to cover local transport (including taxis), accommodation, meals, local telephone calls and
sundries.
II.1.3. E q u i p m e n t
II.1.3.1. General rules
Costs pertaining to the acquisition of equipment (based on any of the following: rental, leasing, purchase
based on the full or partial cost, or depreciation of purchased assets) are only eligible if they are essential to
the implementation of the project. Equipment shall have the technical properties needed for the project and
comply with applicable norms and standards.
II.1.3.2. Renting and leasing
Expenditure in relation to renting and leasing operations is eligible for co-financing subject to the rules
established in the Member State, national legislation and practice and the duration of the rental or lease for
the purpose of the project.

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Official Journal of the European Union
8.3.2011
II.1.3.3. Purchasing
1. Costs pertaining to the acquisition of equipment (systems, operating equipment, means of transport,
inter alia, as referred to in Article 5(1)(c) to (f) of the basic act) are eligible in accordance with national
rules. Such costs are eligible for co-financing on the basis of the full or partial cost of the purchase if:
(a) they are directly linked to the realisation of the project;
(b) incurred in accordance with national procurement rules established in the Member State;
(c) the equipment has the technical characteristics necessary for the project and complies with applicable
norms and standards;
(d) the equipment will continue to be used for the same objectives pursued by the project, after the day
of purchase and for a minimum duration of:
— three years or more for Information and Communication Technology (ICT) equipment,
— five years or more for other types of equipment such as operating equipment and means of
transport, except for the ones indicated below,
— ten years for helicopters, vessels and aircrafts.
2. Alternatively, costs for the abovementioned equipment may be eligible on the basis of depreciation in
accordance with national rules. In that case conditions in (a), (b) and (c) in paragraph 1 shall apply.
Furthermore, the following conditions must also be satisfied:
(a) Where equipment is purchased before or during the lifetime of the project, the portion of equipment
depreciation is eligible on the basis of the duration of use for the project and the rate of actual use
for the project.
(b) Equipment that was purchased before the lifetime of the project, but which is used for the purpose
of the project, is eligible on the basis of depreciation. However these costs are ineligible if the
equipment was originally purchased through a Community grant.
(c) Purchase costs of equipment shall correspond to normal market costs and the value of the items
concerned is written off in accordance with the tax and accounting rules applicable to the final
beneficiary.
II.1.4. R e a l e s t a t e
II.1.4.1. General rules
In the case of either purchase of real estate, construction or renovation of real estate, or rental of real estate,
it shall have the technical properties needed for the project and comply with the applicable norms and
standards.
II.1.4.2. Purchase, construction or renovation
1. Where the acquisition of real estate is essential for implementation of the project and is clearly linked
with its objectives, the purchase of real estate, i.e. buildings already constructed, or construction of real
estate, is eligible for co-financing on the basis of the full or partial cost, or on the basis of depreciation,
under the conditions set out below, without prejudice to the application of stricter national rules:
(a) a certificate is obtained from an independent qualified valuer or duly authorised official body
establishing that the price does not exceed the market value, either attesting that the real estate is
in conformity with national regulations or specifying the points which are not in conformity that the
final beneficiary plans to rectify as part of the project;
(b) the real estate has not been purchased through a Community grant at any time prior to the
implementation of the project;

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(c) the real estate is to be used solely for the purpose stated in the project for a period of at least 10
years after the end date of the project unless the Commission specifically authorises otherwise in the
case of co-financing of the full or partial costs; in the case of co-financing on the basis of
depreciation this period is reduced to 5 years;
(d) the purchase of the real estate respects the principles of value for money and cost-effectiveness and is
being considered as proportionate to the aim to be achieved through the implementation of the
project;
(e) in the case of co-financing on the basis of depreciation, only the portion of the depreciation of these
assets corresponding to the duration of use for the project and the rate of actual use for the project
is eligible; depreciation shall be calculated according to national accounting rules.
2. Expenses for renovation of real estate are eligible for co-financing on the basis of the full or partial cost
or on the basis of depreciation. In the case of renovation costs only conditions (c) and (e) in paragraph 1
apply.
II.1.4.3. Rental
Rental of real estate is eligible for co-financing where there is a clear link between the rental and the
objectives of the project concerned, under the conditions set out below and without prejudice to the
application of stricter national rules:
(a) the real estate has not been purchased through a Community grant;
(b) the real estate is to be used solely for implementation of the project. If not, only the portion of the costs
corresponding to the use for the project is eligible.
II.1.5. C o n s u m a b l e s , s u p p l i e s a n d g e n e r a l s e r v i c e s
The costs of consumables, supplies and general services are eligible provided that they are identifiable and
directly necessary for the implementation of the project.
II.1.6. S u b c o n t r a c t i n g
1. As a general rule, final beneficiaries must have the capacity to manage the projects themselves. The
amount corresponding to tasks to be subcontracted under the project will have to be clearly indicated in
the grant agreement.
2. Expenditure relating to the following subcontracts is not eligible for co-financing by the Fund:
(a) subcontracting of tasks relating to the overall management of the project;
(b) subcontracting that adds to the cost of the project without adding proportionate value to it;
(c) subcontracting with intermediaries or consultants where payment is defined as a percentage of the
total cost of the project, unless such payment is justified by the final beneficiary by reference to the
actual value of the work or services provided.
3. For all subcontracts, subcontractors shall undertake to provide all audit and control bodies with all the
necessary information relating to subcontracted activities.
II.1.7. C o s t s d e r i v i n g d i r e c t l y f r o m t h e r e q u i r e m e n t s l i n k e d t o U n i o n c o - f i n a n c i n g
Costs needed to meet the requirements linked to Union co-financing, such as publicity, transparency,
evaluation of the project, external audit, bank guarantees, translation costs, etc., are eligible as direct costs.
II.1.8. E x p e r t f e e s
Legal consultancy fees, notarial fees and costs of technical and financial experts are eligible.
II.2. Indirect
eligible
costs
1. The eligible indirect costs for the action are those costs which, with due regard for the conditions of
eligibility described in point I.1.1, are not identifiable as specific costs directly linked to performance of
the project.

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2. By way of derogation from point I.1.1(e) and point I.5, the indirect costs incurred in carrying out the
action may be eligible for flat rate funding fixed at not more than 2,5 % of the total eligible direct costs.
3. Organisations receiving an operating grant from the Union budget cannot include indirect costs in their
forward budget.
III. Ineligible expenditure
The following costs are not eligible:
(a) VAT, except where the final beneficiary can show that he is unable to recover it;
(b) return on capital, debt and debt service charges, debit interest, foreign exchange commissions and
exchange losses, provisions for losses or potential future liabilities, interest owed, doubtful debts,
fines, financial penalties, litigation costs, and excessive or reckless expenditure;
(c) entertainment costs exclusively for project staff; reasonable hospitality costs at social events justified by
the project, such as an event at the end of the project or meetings of the project steering group, are
permitted;
(d) costs declared by the final beneficiary and covered by another project or work programme receiving a
Community grant;
(e) purchase of land;
(f) contributions in kind.
IV. Technical assistance at the initiative of Member States
1. All the costs necessary for the implementation of the Fund by the responsible authority, delegated
authority, audit authority, certifying authority or other bodies assisting in the tasks listed in
paragraph 2 are eligible under technical assistance within the limits specified in Article 18 of the
basic act.
2. This includes the following measures:
(a) expenditure relating to the preparation, selection, appraisal, management and monitoring of actions;
(b) expenditure relating to audits and on-the-spot checks of actions or projects;
(c) expenditure relating to evaluations of actions or projects;
(d) expenditure relating to information, dissemination and transparency in relation to actions;
(e) expenditure on the acquisition, installation and maintenance of computerised systems for the
management, monitoring and evaluation of the Funds;
(f) expenditure on meetings of monitoring committees and sub-committees relating to the implemen
tation of actions; this expenditure may also include the costs of experts and other participants in
these committees, including third-country participants, where their presence is essential to the
effective implementation of actions;
(g) expenditure for the reinforcement of the administrative capacity for the implementation of the Fund.
3. Activities linked to technical assistance must be performed and the corresponding payments made after
1 January of the year referred to in the financing decision approving the annual programmes of the
Member States. The eligibility period lasts until the deadline for the submission of the final report on the
implementation of the annual programme.
4. Any procurement must be carried out in accordance with national procurement rules established in the
Member State.

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8.3.2011 Official
Journal
of
the
European
Union L
61/41
5. Member States may implement technical assistance measures for this Fund together with technical
assistance measures for some or all of the four Funds. However, in that case only the portion of the
costs used to implement the common measure corresponding to this Fund shall be eligible for financing
under this Fund, and Member States shall ensure that:
(a) the portion of costs for common measures is charged to the corresponding Fund in a reasonable and
verifiable manner; and
(b) there is no double financing of costs.
V. Special Transit Scheme
In accordance with Article 40(1), the rules in the basic act and this Decision regarding the implementation
of annual programmes shall apply mutatis mutandis to the support for the implementation of the Special
Transit Scheme. However, with regard to the eligibility rules contained in this Annex, the following specific
rules shall apply in the case of the Special Transit Scheme:
(a) the eligibility period for expenditure shall be in accordance with Article 40(3) of this Decision;
(b) by virtue of Article 6(2)(c) of the basic act, staff costs of public bodies are eligible expenditure provided
that they are based on real additional costs related to the implementation of the Special Transit Scheme
(STS) and are allocated to the operation according to a duly justified and equitable method; the
expenditure must be certified on the basis of documents which permit the identification of real costs
paid by the public body concerned in relation to the STS, arising beyond its statutory responsibilities or
day-to-day tasks.’

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