FAQ – financial
Frequently asked questions
Why might I experience stress before the deadlines of the Eindhoven Engine OpenCall?
- Experience shows that many people preparing a project proposal underestimate the effort it takes to form a consortium, to formulate a convincing project proposal and to obtain all the necessary signatures in time.
• Filling in the budget sheet also requires attention and will take time. After the budget sheet has been completely filled in, the correct figures for possible cash and/or in kind contributions are shown (to be filled in on the application form).
What is the difference between coordinators, partners and enablers?
- The coordinator is the leading participant of the consortium of the Eindhoven Engine project and submits the application on behalf of the consortium. The coordinator fills out and signs the coordinator application form and provides the coordinator budget sheet.
- A partner is a participant that will also conduct work under the Eindhoven Engine extension project and will eventually also receive Eindhoven Engine funding for the associated costs. A partner fills out and signs the partner application form and provides input for the budget sheet.
- An enabler is a participant that is part of the base project consortium but will not conduct work under the Eindhoven Engine extension project (and will therefore not receive Eindhoven Engine funding). However, these participants do provide co-financing. An enabler fills out and signs the enabler application and provides input for the budget sheet. When the project is approved the enabler must also sign the enabler statement form.
Which rates can be used?
- Option 1: integral cost system. This may only be used if there is a state-enacted integral tariff, such as by the Netherlands Enterprise Agency (RVO) (hour standard organization).
- Option 2: wage costs plus fixed storage system plus surcharge of 25% (hour standard organization).
- Option 3: fixed hourly rate system = €42.34; this rate then pertains to all personnel costs of the participant (hour standard 1650 hours per year).
It is not possible to use more than one system for one partner.
Is indexation possible for the integral cost system or labor cost tariff?
- Yes, it is possible to index the integral cost and labor cost rates by 2% per year.
Which costs are eligible?
- Costs that are directly allocable to the project.
- Costs that are covered by the definition of fundamental and/or industrial research and/or experimental development and/or feasibility study.
- Costs incurred after the approval date of the project and before the end of the project.
- Costs incurred after the opening date can be declared in kind.
Is there a VAT tax liability?
- The financial contribution is capped and includes VAT, which may not be eligible for settlement or compensation. The applicant is responsible for the payment, settlement or compensation of VAT.
Is an auditor’s report required? And are the audit fees eligible?
- Halfway through and at the end of the project, an auditor’s report must be provided for each participant.
- Audit fees which are directly related to the project are eligible and can be claimed at item project-specific costs due for third parties. So this can be included in your project budget.
Are payments to MSc and BSc students eligible?
- Students are not formal participants in the projects. The consortium itself is responsible for ensuring that the students actually incur hours.
- Actual payments on the basis of salary/(internship) compensation can be claimed at item project-specific costs due for third parties.
Are computers eligible?
- The costs of standard workplace computers are not eligible; however, laboratory computers and calculation computers for research are.
How should equipment costs be calculated and accounted?
- Equipment must depreciate over at least 5 years, according to the common accounting practices of the participant.
- Equipment costs may not be claimed if they are included in a full cost price.
How is Eindhoven Engine’s (mandatory) contribution calculated? And what is it for?
- The (mandatory) contribution for Eindhoven Engine is 25% of the requested contribution of a maximum of 500 k€, so the maximum contribution is 125 k€.
- The fee for Eindhoven Engine is the contribution for co-location, access to Eindhoven Engine Academy activities, unique way of working etc.
Does the budget for Eindhoven Engine projects have to be spent in full in order to receive the full grant from Eindhoven Engine?
- Yes, in order to maintain the full grant, the total budget (cost) must be substantiated.
Is it possible to underspend in one cost category and overspend in another cost category within the allocated budget?
- Small shifts of budget are allowed, however major shifts of the budget must be reported as a Change Request (to be approved by the Eindhoven Engine Office).
Is it possible to use WBSO budget (tax credit for research and development) as co-financing in the proposal?
- No, this is not possible.
May I contribute partial co-financing (co-financing before the start of this project and or consisting of part of another project)?
- Yes, but in the case of a contribution of co-financing realized before the start of the project and/or consisting of part of another project, a request can be made that all costs of the (other) project be accounted for according to the general conditions and assessment criteria of Regio Deal Brainport Eindhoven of Regio Deal V8. In any case, this contributed co-financing and the co-financing of the entire project must be directly related to the Eindhoven Engine project at all times and the relationship should be described in the project plan.
Which consistency checks should I do?
- Do all the figures entered in the application form match the figures in the budget sheet?
What is the definition of economic activity?
- Any activity in which goods or services are offered in a market is an economic activity. This means that State Aid rules only apply when a particular activity is performed in a market environment.
What are the definitions of fundamental research, industrial research, experimental development and feasibility studies?
- See Eindhoven Engine Bluebook General Regulations (financial aspects chapter, pages 4-5)
What is NOW?
- Due to the coronavirus, you may have less or no work for your employees. You can claim NOW for a substantial compensation of their wages. You can find more information on the government’s website (in Dutch).