Ministry of Finance will propose flat rate for administrative costs of the European Social Fund projects
On Thursday, October 1, in the meeting of State Secretaries the Ministry of Finance (MoF) will propose amendments to the Regulation of the Cabinet of Ministers on Procedures, by which Institutions Involved in the Management of European Union Structural Funds and the Cohesion Fund Ensure the Preparation of Planning Documents and the Implementation of Such Funds.
Most significant amendments to the Regulation envisage simpler administration of indirect costs of the European Social Fund projects (costs which could not be attributed to individual activities of the final beneficiary, but which are planned for project administrative activities), setting flat rate for them (percentage of direct costs).
Therefore administrative burden on final beneficiaries will reduce considerably because in future they will not have to submit expenditure justifying documents for such costs as project management personnel costs, stationery costs, rent of premises for project administration needs and others.
In future, the project implementer will receive a flat payment depending on the size of the project and kind of the final beneficiary in the range from 13% till 20% which complies with the limit set by the European Commission – 20% of direct costs of the project.
With introduction of a flat rate for indirect costs the final beneficiary will be able to prepare the payment request faster, however responsible institutions will be able to consider and accept this request faster. Besides, the time the final beneficiary have to keeping expenditure justifying documents will also decrease.
The amendments envisage decrease in the number of working days from 30 to 15 when the contract should be signed with the final beneficiary after approval of the project application if the decision does not provide for specific conditions. The number of working days will decrease from 25 to 20 when the responsible or cooperation institution, who has signed the contract, has to assess the amendments to the project submitted by the final beneficiary.
Also possibilities for project updates have been widened after a decision has been made and before a contract on project implementation has been signed. Previously it was possible to amend only the contact information and bank requisites of the final beneficiary and distribution of the financing by years, which often causes a need for amendments right after signing the contract with a project implementer.
Therefore amendments will lighten and clarify requirements for the final beneficiary and optimize the work of institutions involved in the EU funds acquisition.
Measures already implemented by the MoF for simplification of the EU funds acquisition resulting in considerably faster financing circulation in projects and facilitated project implementation are available in Latvia on the EU funds homepage.
Information prepared by:
Agnese Beļkeviča
Press Division
Phone 67083938
Agnese.Belkevica@fm.gov.lv
