Common use of Eligibility of expenditures Clause in Contracts

Eligibility of expenditures. 1. The expenditures related to the Operation are eligible only if they are in accordance with the relevant EU legislation, Programme rules and national legislation, and if they observe the terms and conditions stipulated in the Contract. 2. Eligible costs are costs actually incurred and paid by the beneficiaries, which meet all of the following criteria: a) they are incurred during the implementation period of the Operation, with the exception of preparatory costs and closure costs; b) they are indicated in the estimated total budget of the Operation; c) they are necessary for the implementation of the Operation; d) they are identifiable and verifiable, in particular being recorded in the accounting records of the beneficiary and determined according to the applicable accounting standards of the country where the beneficiaries are established and according to the usual cost accounting practices of the beneficiaries; e) they comply with the requirements of applicable tax and social security legislation; f) they are reasonable, justified, and comply with the principle of sound financial management, in particular regarding economy and efficiency; g) they are not listed as ineligible expenditure in the Programme Rules on Eligibility of Expenditure and in the call specific documents; h) they are not co-financed from other sources under the Union Funds or other (national) Funds. 3. In line with the Application, the Lead Beneficiary is entitled to receive the reimbursement of preparatory and closure costs on behalf of the partnership in the form of a lump sum based on the approved Project Progress Report for period 0 (Zero Progress Report).