Frequently asked questions
EC Funding Advice Line
Some examples of frequently asked questions:
Q: We are about to recruit staff for our new EC funded project. Do the rules of nationality apply to staff?
A: No they do not. Confirmation of this can be found under the EC’s FAQs for Grant contracts on their website: http://ec.europa.eu/europeaid/work/procedures/faq/grants_en.htm Staff are those who are on your payroll. Nationality rules will apply however for consultants hired under service contracts.
Q: Some of the co-financing for our EC grant is being provided by our partner who will be paying directly for some items/activities in the project. Is it necessary that their funds come via our bank account?
A: No, the partner can finance some activities or items such as salaries directly provided that there is clear supporting documentation showing that the expenditure covers costs as per the agreed EC budget and all receipts and other proof of expenditure required e.g. job contracts, time sheets, procurement documentation are available.
Q: If we have a few activities left over at the end of the project, can we pay for them in advance,but complete them after the end of the agreed implementation date?
A: No, all activities (with exceptions such as evaluation, final report and audit) must be completed by the end date of implementation – Article 14.1 of Annex II of your contract (General Conditions for European Union financed Grant Contracts for External Actions) says that all costs must be incurred between the start and end date of the project. You would have to ask for a no-cost extension (unless your project duration is already at the maximum allowed by the call for proposals).
Q: It is wise to always include a contingency fund in a budget? What things could you use the contingency fund for?
A: Not all NGOs put in a contingency fund – it is not obligatory. The EC does not give a definition of what it can be used to cover – by its nature it is to cover costs unforeseen at the time of budgeting but which are now necessary to help deliver the project. So it is up to you to ask and see what they say. Bear in mind that it is essential that you request use of the contingency fund at least one month in advance of spending it and get the EC’s written permission. There is now a template for requesting this attached to the new budget formats. It is very similar to requesting an amendment to the budget.
Q: Are timesheets compulsory?
A: If a staff member is only working part-time on an EC funded project then timesheets are necessary. There is now a standard EC template available – found as an attachment under the new Financial Management Toolkit on http://ec.europa.eu/europeaid/work/procedures/financial-management-toolkit_en.htm Remember that it is the auditor carrying out the financial verification of your project who will check supporting documentation and may require to see these timesheets. Failure to have supporting documentation can lead to expenditure being disallowed so make sure you have them. Make sure the timesheets are signed by the manager of the person concerned.
