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Decision in case 1227/2021/LM concerning the decision of the European Commission to consider certain costs declared under a grant contract with an NGO as ineligible
Decision
Case 1227/2021/LM - Opened on Thursday | 28 October 2021 - Decision on Tuesday | 08 March 2022 - Institution concerned European Commission ( Settled by the institution ) - Country France
Master X, Master Y
You have lodged a complaint with the European Ombudsman concerning the European Commission’s decision to declare ineligible certain costs (relating to human resources and VAT) incurred by Première Urgence Internationale under the contract ‘Water infrastructure rehabilitation for rural communities in Akkar district’[1].
In the Ombudsman’s inquiry, the Commission stated on 26 January 2022 that the cost allocation methodology proposed by Première Urgence Internationale reflected and respected the principles set out in Annex 1 to Commission Decision C(2016)3634 [2]. In addition, the Commission acknowledged the difficulties encountered by Première Urgence in obtaining a tax number and subsequently benefiting from a tax exemption. Therefore, the Commission acknowledged that staff costs and VAT-related costs were eligible and agreed to revise the decision and correct the recovery order.
In the light of the foregoing, I consider that the case is settled.
Thank you for contacting the European Ombudsman.
Please accept, gentlemen, my distinguished greetings.
Tina Nilsson
Head of Business Management Unit
Strasbourg, 08/03/2022
[1] Ref. ENPI/2014/342-920.
[2] Decision 3634 C(2016)3634 of the European Commission of 16.6.2016 replacing and repealing COM decision C(2015)3174 on the reimbursement of office costs on the basis of a allocated allocation method.