INFODAY PRESENTATIONSINFODAY PRESENTATIONS BUDGET PREPARATIONBUDGET PREPARATION

Aleš ZupanAleš Zupan

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BUDGET IS ONE OF THE KEY ELEMENTS IN THE PROJECT, MOREOVER IT REFLECTS THE OVERALL

QUALITY OF PROPOSAL - Systematic and detailed prepared budget on contrary to lump-sums and overall estimation - Clear relation between project results, activities and expenditures instead of confusion - Reasonable amount in relation to outputs, in particular realistic per unit prices

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• ELIGIBILITY OF COSTS - All costs presented in the budget table should be checked for eligibility, as presented in earlier presentations - Any expenditure considered ineligible will be the responsibility and cost of the grant beneficiary - In the application phase the budgets will be cleared of ineligible costs, therefore strongly recommendable to operate with real, justified costs

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• TYPES OF COSTS - Staff costs (salaries and per-diems) - Travel costs - Equipment costs - Costs of local office - Cost of external services - Other costs (for instance works)

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• HORIZONTAL LOGIC - CALCULATION - Unit - Number of units - Unit price - Total cost of budget category number of units x unit price = total cost

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• EXAMPLES - UNITS - Staff costs: monthly salary (brutto-brutto), daily-fee (brutto!), local per-diem - Travel costs: km traveled, cost of flight (economy class) - Equipment: computer, video-beam, laboratory equipment, furniture set, production facility - External services: translation day, copy of brochure, auditing contract, promotion event - - Number of units - Unit price - Total cost of budget category number of units x unit price = total cost

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• PLANNING RESOURCES AND FINANCES - For each element of the project (result, activity) plan inputs necessary (amount, type) - Estimate per unit price for each of the inputs necessary - Estimate overall budget - Divide the budget among partners

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• PLANNING INPUTS - Establish close relation with activities and results, every cost needs to be justified in the application•ESTIMATING UNIT PRICES - Use market standards, !!! in case of equipment ask more than 1 potential supplier for quotation•DIVIDING BUDGET AMONG PARTNERS - Clearly define who gets what, !!! Define co-financing obligations

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• SALARIES - If engaged for part time, per-unit rate is always 100%, engagement is regulated through number of units•TRY TO CLUSTER COSTS - Similar type of costs should appear in one category (for instance promotion, meetings, travel), they should not be everywhere in the budget table

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• FINDING RIGHT BALANCE OF TYPE OF COSTS - Balance between human resources, equipment, external services, construction depending on type of project•PERSPECTIVE OF IMPLEMENTATION - What does it mean for implementation? Does it require procurement procedure? Equipment purchase – does it have EU origin? Is it realistic that the budget will cover the expected inputs?

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• CAREFUL PLANNING - In the process of implementation it is difficult to change budget, therefore plan carefully •GRANT MAXIMUM AMOUNT - The indicated amount is maximum what you will get, but not necessarily that you get it at 100%•CO-FINANCING - Be carful when planning co-financing resources. You will have to fulfil your commitments fully.

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