Budget amounts can be reallocated from one cost category to another, and the budget of a cost category can be exceeded (without a maximum limit) if this is fully justified by a project’s needs and the project’s activities remain in line with the application form.

Budget amounts can be re-allocated between partners too. Two types of budget change between partners are possible:

1. A budget reallocation of up to 20% of the total partner budget stated in the latest approved application form (flexibility rule) A partner’s total budget can be exceeded by a maximum of 20 % of the original total amount if this is compensated by an underspend in the budget(s) of other partner(s). This type of budget reallocation does not require the programme’s formal prior approval but must be reported and justified through the progress report.
2. A budget reallocation of over 20% of the total partner budget stated in the latest approved application form A budget reallocation between partners greater than the 20% budget flexibility limit requires a formal approval by the managing authority/ joint secretariat and it must be incorporated in the application form through a request for change procedure (“major budget change”). In principle, a major budget change should happen only once during a project’s lifetime.

Budget reallocations between partners and cost categories are possible on the condition that the total amount(s) of Interreg Funds and/or Norwegian funding awarded to a project are not exceeded.

Based on Regulation (EU) No 2021/1059, the different cost categories applicable in the programme are:

• staff
• office and administration
• travel and accommodation
• external expertise and services
• equipment
• infrastructure and works (only for pilot actions)

Costs for project activities are eligible from the date of the monitoring committee’s approval of the project until the end date of the project.

The end date of the project marks the end of the eligibility period for expenditure, and it is the date by which the last progress report must be submitted to the joint secretariat.

Under Interreg Europe programme rules, staff costs can only be reported according to the fixed percentage method.

It is therefore not possible to use other methods such as the calculation of staff costs on an hourly basis with timesheets.

The staff costs of employees working part-time on the project must be calculated on a real costs basis using a fixed percentage of the gross employment cost (incl. employer’s contributions) in accordance with article 55 (5) of Regulation (EU) No 2021/1060.

The project end date marks the end of the eligibility of the expenditure.

This means that by this date:

• all project activities must be completed (incl. all procedures related to the administrative closure of the project, such as financial control)
• all payments must have been made, meaning debited from the bank account
• the last progress report is submitted to the joint secretariat.

Any expenditure incurred, invoiced, or paid after the project end date indicated in the latest approved application form will be ineligible.

Therefore, in order to be eligible, costs for the verification of expenditure of the final progress report have to be paid out before the end date of the project, provided the check itself is be concluded before the end date.

Country-specific information, including information about the control system and the verification of expenditure can be found on Interreg Europe website.

Costs for project activities are eligible from the date of the monitoring committee’s approval of the project until the end date of the project.

The end date of the project marks the end of the eligibility period for expenditure, and it is the date by which the last progress report must be submitted to the joint secretariat.

Costs for pilot actions should be planned under the different relevant cost categories as for any other project activity.

There is no separate budget to fill in the application form for pilot actions.