Project budget: The project budget is calculated using the notional hourly rates determined for personnel and material costs in the application and is considered the planned budget for the project. Including the overhead, this gives you the funding budget.
Cost ceiling: The cost ceiling is calculated by means of the maximum hourly rates for project staff in the application and is stipulated in the funding agreement together with the project budget. The cost ceiling may be used up without amending the funding agreement provided the increase in personnel costs is due to reasonable salary increases, necessary higher contributions to social insurances, measures to compensate for inflation, salary increases due to changes in personnel within the same project function category, minor adjustments to the distribution of estimated working hours among the various personnel functions, or approved changes to key personnel. However, both the financial contribution (cash contribution) and the implementation partner’s own contribution are set in the funding agreement according to the funding budget and are not variable.
Effective costs: The effective costs are the verifiable costs incurred as a result of the project, which must be reported in the project’s final statement of accounts (including the relevant supporting documents). The amount of the final funding instalment and the amount actually paid out is determined on the basis of the final statement of accounts.