[ParlTrack]

Proposal for a regulation
Part 1 – article 117 – paragraph 4

4. Grants may not have the purpose or effect of producing a profit within the framework of the action or the work programme of the beneficiary. The first subparagraph shall not apply to: (a) actions the objective of which is the reinforcement of the financial capacity of a beneficiary or the generation of an income~~; (b) study, research or training scholarships paid to natural persons;~~ or actions like operating grants which generate an income to ensure their sustainability after the period of Union financing (aa) Union external action programmes for refugees and unemployed persons; (b) study, research or training scholarships paid to natural persons; (ba) grants in the form of flat-rate and/or lump sum funding and standard scale of unit costs where the profit does not derive from the calculation of the individual unit costs; (bb) very low value grants. Where a profit is made, the Commission shall be entitled to recover the percentage of the profit corresponding to the Union contribution to the eligible costs actually incurred by the beneficiary to carry out the action or work programme.

2011/06/17
Committee: BUDG

Jutta HAUG

Proposal for a regulation
Part 1 – article 117 a (new)

Article 117a Eligible costs 1. Grants shall not exceed an overall ceiling expressed in terms of an absolute value which is established on the basis of estimated eligible costs. They shall not exceed the eligible costs. 2. Eligible costs are costs actually incurred by the beneficiary of a grant which meet all the following criteria: (a) they are incurred during the duration of the action or of the work programme, with the exception of costs relating to final reports and audit certificates; (b) they are indicated in the estimated overall budget of the action or work programme; (c) they are necessary for the implementation of the action or of the work programme which is the subject of the grant; (d) they are identifiable and verifiable, in particular being recorded in the accounting records of the beneficiary and determined according to the applicable accounting standards of the country where the beneficiary is established and according to the usual cost-accounting practices of the beneficiary; (e) they comply with the requirements of applicable tax and social legislation. 3. Without prejudice to paragraph 1 and to the basic act to which Article 2 applies, the call for proposals shall specify the categories of costs considered eligible for Union funding. The following costs shall be considered as eligible by the competent authorising officer by delegation: (a) costs relating to a bank guarantee or comparable surety to be lodged by the beneficiary of the grant pursuant to Article 125; (b) costs relating to external audits required by the competent authorising officer either upon the request for financing or upon the cost statement; (c) value added tax (‘VAT’) paid by, and which cannot be refunded to, the beneficiary according to the applicable national legislation. The Commission is entitled to reclaim an amount equal to the VAT paid from the tax-competent Member State. This shall apply mutatis mutandis to third countries, where respective agreements exist; (d) depreciation costs, provided they are actually incurred by the beneficiary; (e) administrative expenditure, staff and equipment costs, including the salary costs of personnel of national administrations to the extent that they relate to the cost of activities which the relevant public authority would not carry out if the project concerned were not undertaken; (f) other than in the case of operating grants, costs incurred that are necessary for the continued functioning of the business, but which cannot be immediately associated with the products/services being offered ('indirect' or 'overhead' cost) of 10% of the total direct eligible cost of the action where this does not exceed EUR 250 000 and 8% thereafter on a flat rate basis. This percentage may be increased in particular for coordinating legal entities in accordance with the delegated regulations. 4. Costs incurred by affiliated members as referred to in Article 115a shall be accepted as eligible provided that the affiliated members concerned are identified in the grant agreement or decision and abide by the rules applicable to the beneficiary under the grant agreement or decision, including those concerning the rights of the Commission, OLAF and the Court of Auditors to control the spending of expenditure in accordance with the grant rules.

2011/06/17
Committee: BUDG

Jutta HAUG

Proposal for a regulation
Part 1 – article 117 b (new)

Article 117b Co-financing in kind 1. For the purpose of calculating the profit generated by the grant, co- financing in the form of in-kind contributions shall not be taken into account. 2. The authorising officer responsible may accept in-kind contributions as co- financing, if considered necessary or appropriate. Where co-financing in kind is offered in support of low value grants and the authorising officer intends to refuse this, he shall justify why it is not necessary or inappropriate. Such contributions must not exceed: (a) either the costs actually borne and duly supported by accounting documents; (b) or, in the absence of such documents, the costs generally accepted on the market in question. In-kind contributions shall be presented separately in the estimated budget to reflect the total resources allocated to the action. Their unit value is evaluated in the provisional budget and shall not be subject to subsequent changes. In-kind contributions shall comply with national tax and social security rules.

2011/06/17
Committee: BUDG

Jutta HAUG

Proposal for a regulation
Part 1 – article 122 – paragraph 1

1. The maximum time limit for processing applications shall be six months from the submission of the application. This time- limit may exceptionally be exceeded where the specific nature and subject-matter of the grant so require. Where this is the case, the provisional time limit shall be announced in the respective call for proposals. Where the time limit cannot be met due to other reasons, the authorising officer by delegation shall include this into his annual activity report together with the reasons and proposals for remedial action. He shall report in the following annual activity report on the success of the remedial action. Applications for operating grants should be processed before the beginning of the beneficiary fiscal year. Grant applications shall be submitted in writing.

2011/06/17
Committee: BUDG

Jutta HAUG

Proposal for a regulation
Part 1 – article 122 a (new)

Article 122a The maximum time limit for processing applications shall be six months from the submission of the application. This time- limit may exceptionally be exceeded where the specific nature and subject-matter of the grant so require. Where this is the case, the provisional time limit shall be announced in the respective call for proposals. Where the time limit cannot be met due to other reasons, the authorising officer by delegation shall include this into his annual activity report together with the reasons and proposals for remedial action. He shall report in the following annual activity report on the success of the remedial action.

2011/06/17
Committee: BUDG

Jutta HAUG

Proposal for a regulation
Part 1 – article 125

Article 125 Article 125 The authorising officer responsible may, if he deems it appropriate and proportionate, on a case-by-case basis and subject to risk analysis,require the beneficiary to lodge a guarantee in advance in order to limit the financial risks connected with the payment of pre- financing. Guarantees shall not be required in the case of low and very low value grants or where the beneficiary received at least one grant every year over the last five years.

2011/06/17
Committee: BUDG

Jutta HAUG

Proposal for a regulation
Part 1 – article 126 – paragraph 1

1. The amount of the grant shall not become final until after the competent authorising officer ~~responsible~~by delegation has accepted the final reports and accounts, without prejudice to subsequent checks by the institution, which shall be based on the following principles: the check shall be planned ahead and procedural matters such as timing, scope of the check, questions to be raised to the management of the beneficiary, nature of financial information, shall be agreed upon in good faith by the institution and the beneficiary in advance.

2011/06/17
Committee: BUDG

Jutta HAUG

Proposal for a regulation
Part 1 – article 126 a (new)

Article 126a Periods for record keeping 1. Beneficiaries shall keep records, supporting documents, statistical records and other records pertinent to a grant for: (a) three years following the submission of the final project report in the case of very small grants; (b) six years following the submission of the final project report in the case of small grants; (c) in the case of all other grants, seven years following (i) the submission of the final project report, or (ii) the end of the multiannual financial framework which has been applicable to the respective funding, whichever the earlier. 2. Records related to audits, appeals, litigation or the settlement of claims arising out of the performance of the project shall be retained until such audits, appeals, litigation or claims have been disposed of.

2011/06/17
Committee: BUDG

8 Amendments of Jutta HAUG related to 2010/0395(COD)

ParlTrack - 2011-2024