However, when selecting this option, the ESF Project cannot then claim any additional ESF other direct costs for their project Option 2: ESF Direct Bid Projects can choose to calculate their Flat Rate Indirect Costs at a rate of 40% of their ESF Direct Staff Costs.
Where a project chooses to use this option, they may also claim ESF Other Direct Costs over and above this Option 1: ESF Direct Bid Projects can choose to calculate their Flat Rate Indirect Costs at a rate of 15% of their ESF Direct Staff Costs.In accordance with Article 68(b) of the Common Provisions Regulation and Article 14(2) of the ESF Regulation referred to above, where the implementation of an ESF project gives rise to indirect costs, there are two SCO methodologies available for ESF Direct Bid projects to choose from to calculate their ‘Flat Rate Indirect Costs’: The above list is not exhaustive because every organisation is different and it would be impossible to describe all the possibilities in a guidance document. Where costs (such as premises, staff, utilities for example) can be easily calculated as direct costs then these may be claimed as direct costs. Indirect costs are shared organisational costs, which are difficult to calculate in terms of the amount that can be attributed to the project. Indirect costs may cover (as an example): Flat Rate Indirect Costs ( ESF Direct Bid Projects Only)Ĭosts associated with delivery of ESF Projects can fall into two categories: indirect costs and direct costs.įor ESF Direct Bid Projects only, where indirect costs are applicable to the delivery of that project, EU Regulations allow for those indirect costs to be calculated and claimed on a ‘flat rate’ basis.Īs explained in the ESF Eligibility Rules and Programme Guidance published on GOV.UK, indirect costs are shared organisational costs, which cannot be directly linked to project activity because it is difficult, or impossible, to quantify a precise amount attributable solely to a single operation/project. In addition to the SCO’s above the Managing Authority can also use the following SCOs if it is appropriate for ESF projects - standard scales of unit costs and lump sums. calculation of Direct Staff Costs using a fixed percentage methodology.calculation of direct staff Costs using a standardised 1720 hourly rate calculation and or.calculation of indirect costs (for ESF Direct Bid projects only) – known as ‘Flat Rate Indirect Costs’.In the ESF programme, SCOs can currently be used for: SCOs are designed to simplify administration and, where used, they must be applied in line with EU Common Provisions Regulations ( CPR) and associated EU SCO guidance and ESF regulations. In the England ESF Operational Programme, SCOs are standard methodologies which can be used to calculate specific costs associated with ESF Project delivery. What are Simplified Cost Options (SCOs) ?
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