{"id":155537,"date":"2025-11-20T09:15:46","date_gmt":"2025-11-20T08:15:46","guid":{"rendered":"https:\/\/euro-funding.com\/?p=155537"},"modified":"2026-04-07T09:31:31","modified_gmt":"2026-04-07T07:31:31","slug":"common-mistakes-in-the-financial-reporting-of-eu-funded-projects","status":"publish","type":"post","link":"https:\/\/euro-funding.rwdesarrollos2.es\/en\/blog\/common-mistakes-in-the-financial-reporting-of-eu-funded-projects\/","title":{"rendered":"Common mistakes in the financial reporting of EU-funded projects"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"155537\" class=\"elementor elementor-155537\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-4c9f939b elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"4c9f939b\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-9e76c8e\" data-id=\"9e76c8e\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-50169c9b elementor-widget elementor-widget-spacer\" data-id=\"50169c9b\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-6820b507 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"6820b507\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-58a7c7e0\" data-id=\"58a7c7e0\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-46ec6599 elementor-widget elementor-widget-heading\" data-id=\"46ec6599\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h1 class=\"elementor-heading-title elementor-size-default\">Common mistakes in the financial reporting of EU-Funded projects (and how to anticipate them)<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-3937baee elementor-widget elementor-widget-spacer\" data-id=\"3937baee\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-6c7372a elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"6c7372a\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-66 elementor-top-column elementor-element elementor-element-493d2fc4\" data-id=\"493d2fc4\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-ede489 elementor-widget elementor-widget-image\" data-id=\"ede489\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"968\" height=\"368\" src=\"https:\/\/euro-funding.rwdesarrollos2.es\/wp-content\/uploads\/2025\/11\/Fotos-encabezados-articulos-web-93.png\" class=\"attachment-large size-large wp-image-155539\" alt=\"\" srcset=\"https:\/\/euro-funding.rwdesarrollos2.es\/wp-content\/uploads\/2025\/11\/Fotos-encabezados-articulos-web-93.png 968w, https:\/\/euro-funding.rwdesarrollos2.es\/wp-content\/uploads\/2025\/11\/Fotos-encabezados-articulos-web-93-300x114.png 300w, https:\/\/euro-funding.rwdesarrollos2.es\/wp-content\/uploads\/2025\/11\/Fotos-encabezados-articulos-web-93-768x292.png 768w\" sizes=\"(max-width: 968px) 100vw, 968px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-248de251 elementor-share-buttons--view-icon elementor-share-buttons--skin-framed elementor-share-buttons--color-custom elementor-share-buttons--shape-square elementor-grid-0 elementor-widget elementor-widget-share-buttons\" data-id=\"248de251\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"share-buttons.default\">\n\t\t\t\t\t\t\t<div class=\"elementor-grid\" role=\"list\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-grid-item\" role=\"listitem\">\n\t\t\t\t\t\t<div class=\"elementor-share-btn elementor-share-btn_facebook\" role=\"button\" tabindex=\"0\" aria-label=\"Share on facebook\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-share-btn__icon\">\n\t\t\t\t\t\t\t\t<svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fab-facebook\" viewBox=\"0 0 512 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M504 256C504 119 393 8 256 8S8 119 8 256c0 123.78 90.69 226.38 209.25 245V327.69h-63V256h63v-54.64c0-62.15 37-96.48 93.67-96.48 27.14 0 55.52 4.84 55.52 4.84v61h-31.28c-30.8 0-40.41 19.12-40.41 38.73V256h68.78l-11 71.69h-57.78V501C413.31 482.38 504 379.78 504 256z\"><\/path><\/svg>\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-grid-item\" role=\"listitem\">\n\t\t\t\t\t\t<div class=\"elementor-share-btn elementor-share-btn_twitter\" role=\"button\" tabindex=\"0\" aria-label=\"Share on twitter\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-share-btn__icon\">\n\t\t\t\t\t\t\t\t<svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fab-twitter\" viewBox=\"0 0 512 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M459.37 151.716c.325 4.548.325 9.097.325 13.645 0 138.72-105.583 298.558-298.558 298.558-59.452 0-114.68-17.219-161.137-47.106 8.447.974 16.568 1.299 25.34 1.299 49.055 0 94.213-16.568 130.274-44.832-46.132-.975-84.792-31.188-98.112-72.772 6.498.974 12.995 1.624 19.818 1.624 9.421 0 18.843-1.3 27.614-3.573-48.081-9.747-84.143-51.98-84.143-102.985v-1.299c13.969 7.797 30.214 12.67 47.431 13.319-28.264-18.843-46.781-51.005-46.781-87.391 0-19.492 5.197-37.36 14.294-52.954 51.655 63.675 129.3 105.258 216.365 109.807-1.624-7.797-2.599-15.918-2.599-24.04 0-57.828 46.782-104.934 104.934-104.934 30.213 0 57.502 12.67 76.67 33.137 23.715-4.548 46.456-13.32 66.599-25.34-7.798 24.366-24.366 44.833-46.132 57.827 21.117-2.273 41.584-8.122 60.426-16.243-14.292 20.791-32.161 39.308-52.628 54.253z\"><\/path><\/svg>\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-grid-item\" role=\"listitem\">\n\t\t\t\t\t\t<div class=\"elementor-share-btn elementor-share-btn_linkedin\" role=\"button\" tabindex=\"0\" aria-label=\"Share on linkedin\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-share-btn__icon\">\n\t\t\t\t\t\t\t\t<svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fab-linkedin\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 32H31.9C14.3 32 0 46.5 0 64.3v383.4C0 465.5 14.3 480 31.9 480H416c17.6 0 32-14.5 32-32.3V64.3c0-17.8-14.4-32.3-32-32.3zM135.4 416H69V202.2h66.5V416zm-33.2-243c-21.3 0-38.5-17.3-38.5-38.5S80.9 96 102.2 96c21.2 0 38.5 17.3 38.5 38.5 0 21.3-17.2 38.5-38.5 38.5zm282.1 243h-66.4V312c0-24.8-.5-56.7-34.5-56.7-34.6 0-39.9 27-39.9 54.9V416h-66.4V202.2h63.7v29.2h.9c8.9-16.8 30.6-34.5 62.9-34.5 67.2 0 79.7 44.3 79.7 101.9V416z\"><\/path><\/svg>\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-33 elementor-top-column elementor-element elementor-element-628e76b7\" data-id=\"628e76b7\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-2e424e1f elementor-widget elementor-widget-spacer\" data-id=\"2e424e1f\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-321b6e65 elementor-widget elementor-widget-simple_author_box_elementor\" data-id=\"321b6e65\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"simple_author_box_elementor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"sabox-plus-item\"><div class=\"saboxplugin-wrap\" itemtype=\"http:\/\/schema.org\/Person\" itemscope itemprop=\"author\"><div class=\"saboxplugin-tab saboxplugin-tab-about\"><div class=\"saboxplugin-gravatar\"><a  href='https:\/\/euro-funding.rwdesarrollos2.es\/en\/blog\/author\/oscar-ramirez\/'><img decoding=\"async\" src=\"https:\/\/euro-funding.rwdesarrollos2.es\/wp-content\/uploads\/2025\/11\/Oscar-Ramirez.jpg\" width=\"140\"  height=\"140\" alt=\"\" itemprop=\"image\"><\/a><\/div><div class=\"saboxplugin-authorname\"><a href=\"https:\/\/euro-funding.rwdesarrollos2.es\/en\/blog\/author\/oscar-ramirez\/\" class=\"vcard author\" rel=\"author\" itemprop=\"url\"><span class=\"fn\" itemprop=\"name\">\u00d3scar Ramirez<\/span><\/a><span class=\"sabox-job-title\" itemprop=\"jobTitle\"><span class=\"sabox-job-title-par\">(<\/span> Technical Manager EU Projects <span class=\"sabox-job-title-par\">)<\/span><\/span><\/div><div class=\"saboxplugin-desc\"><div itemprop=\"description\"><\/div><\/div><div class=\"clearfix\"><\/div><div class=\"saboxplugin-socials \"><a target=\"_self\" href=\"https:\/\/www.linkedin.com\/in\/oramig\/\" title=\"Linkedin\" rel=\"nofollow\" class=\"saboxplugin-icon-grey\"><svg aria-hidden=\"true\" class=\"sab-linkedin\" role=\"img\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path fill=\"currentColor\" d=\"M100.3 480H7.4V180.9h92.9V480zM53.8 140.1C24.1 140.1 0 115.5 0 85.8 0 56.1 24.1 32 53.8 32c29.7 0 53.8 24.1 53.8 53.8 0 29.7-24.1 54.3-53.8 54.3zM448 480h-92.7V334.4c0-34.7-.7-79.2-48.3-79.2-48.3 0-55.7 37.7-55.7 76.7V480h-92.8V180.9h89.1v40.8h1.3c12.4-23.5 42.7-48.3 87.9-48.3 94 0 111.3 61.9 111.3 142.3V480z\"><\/path><\/svg><\/span><\/a><\/div><\/div><\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-16326696 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"16326696\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-4e114708\" data-id=\"4e114708\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-4d9fd385 elementor-widget elementor-widget-text-editor\" data-id=\"4d9fd385\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p><span data-contrast=\"auto\">One of the main hurdles faced by beneficiaries of European grants with limited experience in EU project management is not so much the technical implementation of the action, but rather the mistakes related to the financial management of the funds received for the project, particularly during the financial reporting of incurred costs. <strong><span style=\"color: #013e77;\">Poor financial reporting may ultimately lead to significant reductions following the Commission\u2019s review or an ex post audit.<\/span><\/strong><\/span><strong><span style=\"color: #013e77;\" data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6}\">\u00a0<\/span><\/strong><\/p><p><span data-contrast=\"auto\">Below, we look at some of the most frequent errors identified by the Euro-Funding Project Management Office (PMO) team and, above all, how to anticipate them.<\/span><span data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6}\">\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5b0a5e6 separador-4-izq elementor-widget elementor-widget-heading\" data-id=\"5b0a5e6\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Maximum declarable day-equivalents<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6dd7050 elementor-widget elementor-widget-text-editor\" data-id=\"6dd7050\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p><span class=\"TextRun SCXW80529272 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW80529272 BCX0\">One of the most common errors in the current EU framework relates to the treatment of <\/span><span class=\"NormalTextRun SCXW80529272 BCX0\">maximum<\/span><span class=\"NormalTextRun SCXW80529272 BCX0\"> declarable day-equivalents. In Horizon Europe, there is a horizontal ceiling for personnel costs: according to Article 6.2.A.1 of the Horizon Europe Model Grant Agreement, the total number of day-equivalents that a person may declare across all EU and Euratom projects cannot exceed 215 per calendar year. In practice, this limit corresponds to approximately 1,720 working hours per year for a full-time employee (assuming eight hours per day<\/span><span class=\"NormalTextRun ContextualSpellingAndGrammarErrorV2Themed SCXW80529272 BCX0\">), and<\/span><span class=\"NormalTextRun SCXW80529272 BCX0\"> serves as a reference ceiling to verify that the days charged to the project are consistent with the employment contract and working time arrangements.<\/span><\/span><span class=\"EOP SCXW80529272 BCX0\" data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6}\">\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7817d04d separador-4-izq elementor-widget elementor-widget-heading\" data-id=\"7817d04d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Incorrect calculation of the daily rate<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-171a383 elementor-widget elementor-widget-text-editor\" data-id=\"171a383\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p><span data-contrast=\"auto\">The calculation of the daily rate is probably one of the most frequent sources of error in the financial reporting of EU projects. Under Horizon Europe, it must be <strong><span style=\"color: #013e77;\">based on the actual annual personnel costs incurred for each worker<\/span><\/strong>, according to the organisation\u2019s accounts and payroll, and include only eligible remuneration components: salary, social security contributions, taxes and other employment-related costs required by law or contract.<\/span><span data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">Based on this cleansed annual amount, the daily rate is obtained by dividing the personnel cost by the maximum of 215 day-equivalents per calendar year (or the corresponding limit).<\/span><span data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">Deviations from this principle often arise from using monthly salaries or prorated amounts instead of the actual annual remuneration; including extraordinary or one-off payments that are not part of regular remuneration nor based on objective criteria; failing to adjust for part-time contracts; or not properly accounting for unpaid absences. In addition, some beneficiaries operate with hourly rates without properly converting them into day-equivalents, even though the rules require personnel costs to be declared on a daily basis.<\/span><span data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">To ensure compliance with Horizon Europe rules, <strong><span style=\"color: #013e77;\">the daily rate must therefore always be derived from a final, auditable annual personnel cost<\/span><\/strong>, adjusted for the percentage of time worked and for periods actually paid, cleansed of non-recurring payments, and divided by the applicable number of day-equivalents. It is also essential to verify that the total number of days declared across all EU-funded projects does not exceed the annual ceiling of 215 day-equivalents per person. A clearly documented calculation methodology helps to ensure internal consistency and facilitates the defence of the justification during any review or audit.<\/span><span data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6}\">\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-66748303 separador-4-izq elementor-widget elementor-widget-heading\" data-id=\"66748303\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Parental leave and other absences in the calculation of personnel costs<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2b65ac61 elementor-widget elementor-widget-text-editor\" data-id=\"2b65ac61\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p><span data-contrast=\"auto\">Long-term absences are often a critical point when calculating personnel costs. <strong><span style=\"color: #013e77;\">The most frequent mistake is treating periods of maternity leave, paternity leave or other parental absences<\/span><\/strong> as if they were ordinary productive working days, maintaining the same number of day-equivalents as in a full working year. However, in Horizon Europe, parental leave may be deducted from the annual maximum day-equivalents, which implies adjusting both the maximum number of declarable days and the associated daily rate.<\/span><span data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">In addition, any part of the remuneration reimbursed by Social Security or other national schemes must be excluded from the annual personnel cost: only the costs actually borne by the beneficiary are eligible. In practice, this requires close coordination with the HR department, ensuring that all long absences are recorded and reflected both in the productive days considered and in the annual costs used for the calculation. It is equally important to explicitly document how these periods have been treated, so that in the event of a review or audit, the declared days and applied daily rate can be shown to be consistent with the employment contract and with the amounts actually paid by the organisation.<\/span><span data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6}\">\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-da8c0d5 separador-4-izq elementor-widget elementor-widget-heading\" data-id=\"da8c0d5\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Lack of rigorous time tracking (timesheets) <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-de565cd elementor-widget elementor-widget-text-editor\" data-id=\"de565cd\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p><span data-contrast=\"auto\">In many projects, personnel costs are declared throughout the life of the action without maintaining proper parallel time tracking. <strong><span style=\"color: #013e77;\">It is common to find incomplete timesheets<\/span><\/strong>, documents signed in bulk at the end of the year, or even no timesheets at all. Time records that do not match payroll, holidays, or HR-registered absences are also frequent.<\/span><span data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">This may become a serious problem: in an audit, the auditor may reject the declared hours due to lack of traceability and consider the associated personnel costs ineligible.<\/span><span data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">To minimise this risk, it is advisable to implement from the very beginning a simple time-tracking system (for instance, a shared spreadsheet or an internal tool) enabling staff to record at least monthly the time worked, with declarations signed by the employee and their supervisor with correct dates. Internal periodic checks should also be conducted to detect inconsistencies (such as people who, across all their projects, declare more than 100% of their working time). In short, maintaining a monthly time-tracking system, signed by both employee and supervisor and consistent with payroll and absences, is exactly what the Commission expects during a review or audit.<\/span><span data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6}\">\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-75be3de separador-4-izq elementor-widget elementor-widget-heading\" data-id=\"75be3de\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Travel not supported by sufficient evidence<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b365d2f elementor-widget elementor-widget-text-editor\" data-id=\"b365d2f\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p><span data-contrast=\"auto\">Poor documentation of expenses\u2014particularly in the category of Other goods, works and services\u2014is a recurrent source of adjustments in EU projects. Problems typically arise when costs are charged without keeping full supporting documentation or without clearly demonstrating that the expense was necessary for the project. For travel, this occurs when tickets, boarding passes, hotel invoices, invitations or agendas are not kept, or when there is no evidence linking the trip to a consortium meeting, workshop, review with the Commission or a specific task in the work plan.<\/span><span data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">Similarly, for purchases and services, the risk increases when offers or price comparisons, purchase orders, contracts, detailed invoices or delivery\/acceptance records are missing. If it is not clear which work package, deliverable or milestone justifies the cost, the auditor may conclude that it was not necessary for the action or that procurement rules were not respected, and therefore declare it ineligible.<\/span><span data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">To anticipate these issues, it is useful to define from the outset a checklist of minimum documentation per type of cost. For travel, this should include at least an invitation or agenda, tickets, boarding passes when applicable, personalised invoices and a brief participation report. For purchases and services, it is advisable to keep requests and comparisons of offers (when applicable), internal approvals, contracts or purchase orders, invoices and evidence of delivery or execution. In all cases, each expense should be explicitly linked to a specific project task (WP, deliverable, milestone, meeting, dissemination activity, etc.).<\/span><span data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">Finally, <strong><span style=\"color: #013e77;\">it is recommended to apply a prudent approach to potentially sensitive expenses<\/span><\/strong>: travel above economy class, additional overnight stays without justification, purchases clearly exceeding the project\u2019s reasonable needs, or services contracted without proper transparency. Complete and coherent documentation\u2014both for travel and for purchases and services\u2014significantly reduces the risk of adjustments during a review or audit.<\/span><span data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6}\">\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0782e94 separador-4-izq elementor-widget elementor-widget-heading\" data-id=\"0782e94\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Conclusion: prevention is the best defence <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-66c5758 elementor-widget elementor-widget-text-editor\" data-id=\"66c5758\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p><span data-contrast=\"auto\">Financial reporting in an EU-funded project should not become an obstacle course at the end, but rather an integrated process embedded in day-to-day management:<\/span> <span data-contrast=\"auto\">Plan resources and budget from the outset, a<\/span><span data-contrast=\"auto\">lways document: how you calculate, which rules you follow, and which evidence you keep and c<\/span><span data-contrast=\"auto\">arry out small \u201cinternal audits\u201d before submitting each report.<\/span><span data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">Anticipating these common errors not only reduces the risk of financial cuts, but also reassures partners and the Commission that the project is well managed. And in an increasingly competitive landscape, that is also a strategic advantage.<\/span><span data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6}\">\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-161dee8 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"161dee8\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-44a701c5\" data-id=\"44a701c5\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-4639f385 elementor-widget elementor-widget-spacer\" data-id=\"4639f385\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-1f801ca elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"1f801ca\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-top-column elementor-element elementor-element-3a26f03\" data-id=\"3a26f03\" data-element_type=\"column\" data-e-type=\"column\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t<div 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of&#8230;<\/p>\n","protected":false},"author":92,"featured_media":155539,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[146],"tags":[230,231],"class_list":["post-155537","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-grants","tag-innovation"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Common mistakes in the financial reporting of EU-funded projects - Euro Funding<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/euro-funding.rwdesarrollos2.es\/es\/blog\/los-errores-mas-comunes-en-la-justificacion-financiera-de-proyectos-europeos\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta 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