The programme aims to simplify the reporting of costs as much as possible. This is done by using some Simplified Cost Options (SCOs):
· Flat rates – calculated as a percentage of the staff cost
· Lump sums – are paid once the intended result has been fully reached
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.