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| FP6 Financial Info & FAQs --> Project --> Costs --> Eligible Costs --> Equipment --> Equipment FAQs |
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Q: | We have purchased a server for the use in one of our EC projects. According to the EC rules on depreciation we will only be reimbursed for the percentage use of the equipment in the EC project and this amount of use must be auditable. The server will be available for our EC project 100% of the time, but at the same time it is likely to serve computers that are not connected to the project as well. How do we calculate the percentage use in our case and how do we document it for auditing purposes? |
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A: | The depreciation (according to your normal accounting rules) should be a direct cost for the project. The problem seems to be that in practice it will not be used 100% of its time on the project. It is assumed that the main reason for the purchase of the serve was for the EU project. The problem is how to determine the percentage for EU. The rules applied for accounting for other projects in the organisation should be used. Failing that we suggest a reasonable formula be used – e.g. Charge on basis of number of computers using the server and the number not in the project. So if there are 10 computers using the server and 8 are for EU project charge 80% to EU. Care should be taken, since it may be that the server should be viewed as an indirect cost – e.g. if there were 100 computers using the server and only 5 were for EU, it is difficult to see why the server was purchased primarily for the EU project. |
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