Origin of best practice example
Austria Member State
Responsible Federal Chancellery authority
Description of best practice example
(including, if possible, the following information)
- title of the Introduction of a "flat rate for indirect costs" and “standard scale of unit costs” for staff costs and unpaid work / initiative in-kind contributions of self-employed persons as eligible costs within the Austrian operational programmes
co-financed by the European Fund for Regional Development (ERDF)
- substantive EU cohesion policy / ERDF co-financed programmes
On EU-level it is expected that the application of the provisions on simplified costs in the framework of the ERDF and
the ESF will lighten the administrative burden on beneficiaries and management bodies and will contribute both to a
more efficient and correct use of the Funds. (Source: EC Guidance Note COCOF 09/0025/04-EN, final version of
The decision to make use of these opportunities within the ERDF in Austria is combined with the purpose to open the
way for Austrian implementing bodies and beneficiaries to these simplified costs models introduced with the
amendment of the ERDF Regulation beginning with October 2010.
Regarding the necessary high efforts and in order to obtain a positive cost-benefit ratio it is however important, that the
models can be continuously used for the next funding period starting 2014.
COUNCIL REGULATION (EC) No 1083/2006 of 11 July 2006
laying down general provisions on the European Regional Development Fund, the European Social Fund and the
Cohesion Fund and repealing Regulation (EC) No 1260/1999
REGULATION (EC) No 1080/2006 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 5 July 2006 on - related EU the European Regional Development Fund and repealing Regulation (EC) No 1783/1999 law
REGULATION (EC) No 397/2009 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 6 May 2009
amending Regulation (EC) No 1080/2006 on the European Regional Development Fund as regards the eligibility of
energy efficiency and renewable energy investments in housing
national / Subsidiary National Eligibility Rules for expenditure co-financed from the European Regional Development Fund regional / local (ERDF) law if
detailed In its annual report for 2007 the European Court of Auditors has suggested that the majority of errors found in description structural actions expenditure are partly due to the complexity of the legal and implementing framework. For this of best practice reason it recommended to simplify "the basis of calculation of eligible cost and making greater use of lump sum or flat
and its effects rate payments instead of reimbursement of 'real costs'". The Financial Regulation applicable to the general budget of
incl. (to the the European Communities and its implementing rules already allowed such approach for direct management
expenditure. These provisions are an important step towards simplification. Experience in Member States has shown extent
that a large proportion of the supporting documents inspected by controllers and auditors are needed to justify a minor possible): part of expenditure. This means that a great deal of the human resources and administrative effort involved in the management of the structural funds is absorbed in accumulating and verifying documents, rather than focusing on the
achievement of policy objectives.
1In the context of the “EU-Recovery Package” from November 2008 the European Commission proposed the
application of flat rate for indirect costs, standard scales of unit costs and lump sums grants within the ERDF by an
amendment of Article 7 of Regulation (EC) No 1080/2006 (ERDF Regulation).
Therefore, the ERDF Regulation No 1080/2006 as amended by Regulation (EC) No 397/2009 (OJ L 126, 21.5.2009,
p.3.) include the possibility of applying flat rate for indirect costs, standard scales of unit costs and lump sums.
(Source: EC Guidance Note COCOF 09/0025/04-EN, final version of 28.1.2010).
To be able to implement the “simplified costs models” on the project level, it is necessary to introduce corresponding
rules into the eligibility rules, which are defined on national level (see article 56(4) of Reg. (EC) 1083/2006).
Projects from the area of research and development, technology and innovation play a key role within the EU-cohesion
policy to reach the strategic targets set in EU2020. In Austria it became clear that it is precisely in the areas mentioned
that the administrative requirements make an adequate implementation of the projects very difficult e.g. due to the
large share accounted for by personnel costs, which are a crucial element of financial assistance. Due to these difficult
framework conditions, the bodies involved in the programme assessed the possibilities introduced of being able to
apply simplified procedures to indirect costs as well as personnel costs under the amendment to the ERDF Regulation
as urgently needed.
The Austrian authorities responsible for implementing the structural funds programmes welcomed this development
and decided to introduce the following models into the “Subsidiary National Eligibility Rules for expenditure co-financed
from the European Regional Development Fund (ERDF)”:
1. flat rate for indirect costs on the basis of eligible direct costs from wages and salaries which are directly linked to a
project as the most
appropriate basis. This approach both provides a simple calculation method and makes things easier for the
controlling units of the agencies involved.
2. Simplified calculation of staff costs. The method is to be applied to the financial assistance granted to projects
involving personnel costs. These are primarily projects from the area of research and development, technology and
innovation that play a key role in the Austrian Structural Funds programmes 2007 to 2013. The method may be
applied to all project carriers and project types for the Objectives “Convergence” and “Regional Competitiveness”,
because there are no project-specific differences.
3. Flat rate for unpaid work / in-kind contribution of self-employed persons.
Within the Objectives “Convergence” and “Regional Competitiveness” it is possible to claim own unpaid work done
by self-employed persons (single-person entities, members of partnerships, freelancers) within a subsidized
research, innovation and cooperation project granting a flat rate of ? 30 per hour according to hours worked if the
defined requirements are met.
beneficiaries Who: Predominantly SMEs, but also e.g. R&D-institutions (who, how How many/how often: Cannot be assessed at the current stage many, how
1 Communication from the Commission to the European Council on A European Economic Recovery
Plan, COM(2008) 800 final, 26.11.2008.
Reduction of (administrative) effort for accumulating and verifying documents.
The option of declaring indirect costs on a flat-rate basis acc. Article 7(4) of ERDF means that once direct costs have
been clearly defined in the granting decision and properly justified by the beneficiaries by means of supporting paid
invoices, beneficiaries can apply the agreed flat rate to declare and justify indirect costs linked to this ERDF operation,
improvements without any further justification. This leads to a