A presentation of Mr. Vittorio Morelli, Deputy Head of Unit of Common Audit Service (CAS) under the European Commission (EC) Directorate-General (DG) Research and Innovation, named as “Avoiding Common Financial Errors in H2020” was published in the EC official Horizon 2020 (H2020) Programme website.
The presentation includes information about why do the EC do financial audits, what changed from 7th Framework Programme (FP7) to H2020, why do errors still occur and five most common errors expected in H2020.
Based on the information in the presentation and the note for beneficiaries on how to avoid common errors identified in cost claims, it is vital to underline below issues:
- All expenses occurred in the project must be related to the project and this relation must be defined in the Grant Agreement (GA),
- All expenses occurred in the project must be declared as actual; it must not be budgeted, average or approximate,
- Only the depreciation calculated according to the useful life of the equipment and the portion used on the action must be declared in financial reports and these amounts of use must be auditable,
- Only personnel cost for employees or equivalent (persons working for the beneficiary on the basis of an employment contract or equivalent appointing act) that worked in the action are eligible to be declared,
- Hourly rate calculation must be done according to the preferred/appropriate annual productive hour calculation method and basic remuneration (and additional remuneration, if any) of the personnel,
- Only the number of hours/person months for all the personnel actually worked on the action must be declared and these figures must be recorded with a reliable time recording system,
- All travel expenses occurred in the project must be in line with the related national law and usual accounting practices of the beneficiary,
- All expenses occurred in the project, although some of them may occur as EUR, must be recorded as TRY in the accounts of the beneficiary and all these amount must be converted into EUR via the average daily exchange rates published in the C series of the Official Journal of the European Union, calculated over the corresponding period.
Please click in order to open the presentation.
Please feel free to contact the H2020 Team of Legal and Financial Matters in Turkey for any question.