2.5 Project Reporting Scenario
Besides the budget categories, you should know what is considered an eligible or ineligible cost.
Take a look at the graphic below.

Eligible and Non-Eligible Costs
Eligible Costs
-
- Related to the purpose of the action
- Generated during the project duration
- Necessary for the fulfilment of the project
- Included in the estimated budget
- Identifiable and verifiable
- Recorded in the accounts
Non-eligible Costs
- Any profit margin
- Unnecessary or ill-considered expenses
- Provisions for losses or possible future losses or charges
- VAT (only eligible if not recoverable)
- Resources made available to a participant free-of-charge
- Exchange losses
Module 2: Page 5 of 7
