Figuring out how to calculate personnel costs per unit is super important for anyone applying for funding through Horizon Europe. The European Commission is all about making sure projects budget smartly and openly, so getting this right is a big deal. In this article, we’re going to break down five important questions from their webinar. We’ll keep it simple and give you the lowdown on how to calculate personnel costs effectively for your grant application. Let’s dive in!
Q: What currency rate shall be used in the wizard?
A: The guidance regarding which exchange rate to utilize for calculating the rate is detailed within the Auditor Certificate issued by the European Commission, at the bottom of the page 2:
“If the statutory accounts are in a currency other than the euro, the amount must be converted into euro at the average of the daily exchange rates published in the C series of the Official Journal of the European Union (ECB website) calculated over the corresponding financial year. To calculate this rate, you can use the editable charts on the ECB website (see the ‘Chart’ function next to your currency).”
Q: If we applied this unit costs for HE? Must we use this unit costs for other calls funded under European grants? i.e PRIMA or INTERREG or European TENDERS
A: The unit cost calculation method must be consistently applied exclusively for projects funded under the Horizon Europe and Euratom programmes, wherein actual personnel costs are deemed eligible.
Q: If we already use unit costs on current (running) projects, are we able to switch them to personnel unit cost?
A: No, the transition to unit cost is only applicable upon request and will be effective implemented starting from May 1st only for the new grants, solely applicable to grants that have not yet been signed.
Q: Should partners with <430 k€ budget, still has to have audit certificate for personnel costs? Is it something with CFS? Or all entities from now on have audit?
A: Indeed, partners with a budget under €430k are still required to obtain an audit certificate for personnel costs, irrespective they have to provide a CFS. The certificate for Personnel unit cost entails a distinct scope of work: accuracy of total cost of the company with the employees. Therefore, all entities are obligated to undergo this separate audit process for compliance if they want to use the Unit cost method.
Q: The wording „unit costs“ is quite confusing as there is already unit costs method for actual average costs. Will both methods coexist?
A: The term ‘unit costs’ can indeed create ambiguity, especially considering the existing method for calculating actual average costs using unit costs. However, under the guidelines outlined in the ‘DECISION authorizing the use of unit costs for personnel costs for actions under the Horizon Europe and Euratom Programmes,’ it is mandated that the Personnel unit cost method be uniformly applied. Consequently, it is not permissible to combine this method with any alternative approach for calculating personnel costs.
Q: There is a template of the audit certificate or it is possible to use a year financial statement of the organization?
A: In addition to the organization’s annual financial statement, it is imperative to obtain an audit certificate issued by a certified auditor. You may access the prescribed template for the audit certificate via the following link: https://ec.europa.eu/info/funding-tenders/opportunities/docs/2021-2027/common/temp-form/lev/personnel-unit-cost-audit-certificate_en.docx
In summary, mastering the calculation of personnel costs per unit is vital for securing Horizon Europe funding. This article has addressed key questions from the Unit Cost Calculation for Personnel Cost seminar, clarifying currency conversion guidelines, exclusivity of unit cost methods, transition processes, and audit requirements. Adhering to these guidelines is essential for compliance and success in grant applications.
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