Simplified cost options

The programme aims to simplify the reporting of costs as much as possible. This is done by using some Simplified Cost Options (SCOs) such as flat rates and lump sums and, applicable from REG call 7, unit costs for staff.  When using SCOs, all partners must use the same method.

The benefits of SCOs are many. As SCOs are typically very easy to calculate, the beneficiary rarely makes mistakes in applying them. Reporting becomes much easier as there is no need to attach invoices. Thus, SCOs helps the programme to focus the efforts on what actually matters – results – and less on technicalities and practicalities that come with regular reporting. There can also be some downsides worth mentioning. As SCOs are calculated on the principle of being approximately suitable, some partners or projects will, by definition, be undercompensated where others will be overcompensated. Another aspect to consider is that SCOs are always defined in advance and cannot be modified later.

• The SCOs are reported based on pre-defined calculation methods and are not expected to match with accounting records.
• Costs covered by a SCO cannot be reported under any other cost category as real costs as this would be double financing.

The simplified cost options in Interreg Aurora

• Unit costs per hour for staff costs (applicable for regular projects call 7)
• A flat rate of 40% on top of the staff costs to cover all other costs (Method 1: The 40%-method)
• A flat rate of 15% on top of the staff costs to cover costs for office and administration (only possible in Method 2: All cost categories)
• A flat rate of 15% on top of the staff costs to cover costs for travel and accommodation (only possible in Method 2: All cost categories)
• Lump sums (only in approved small-scale projects)

Unit costs per hour (only for Regular projects, call 7)

• Optional – if chosen it must be used for all partners in the project.
• If your project is approved, you must use unit costs when applying for payment.

The hourly rate per country is the same for each employee regardless of the position and throughout the duration of the project. No other costs, such as social fees, shall be added to the staff cost, the unit cost covers all costs connected to the staff.

• Swedish partners = 534 SEK /hour
• Finnish partners = 39 EUR /hour
• Norwegian partners = 584 NOK /hour

The budget in the application form must be made in EUR as usual, see information about how to convert SEK and NOK into EUR here.

When reporting on an approved project, the amounts for SEK and NOK shall be used for Swedish and Norwegian partners respectively.

Lump sums
A lump sum is a method used when the managing authority is granting the support in small-scale projects. The grant is based on the draft budget submitted in the application for support. The draft budget must clearly define the planned costs either using the 40%-method or the method with all cost categories as shown above. The cost categories for real costs must be clearly specified even in small-scale applications. Please note that the simplified cost option unit costs regarding Staff costs is not applicable when you apply for a small scale project. 

When a small-scale application is approved, you do not need to report on the actual expenditure. A lump sum payment will be based on the results. If the final report is approved the lump sum will be paid and if the final report is not approved there will be no payment at all.