NGO FPA

Exchange Rate

All reports for any ECHO funded Action must be submitted in euro. The use of any other currency will result in the report being rejected.

The report of costs will be drawn up or derived from the DG ECHO Partner’s financial reporting system. In fact, according to Article 8.1 c) of the General conditions, all costs have to be recorded in the accounting records of the Partner.

For Partners in the Euro zone there is no need to convert currencies as the books of account and the report are in euro.

Specific rules for Partners which HQ uses a currency other than euro


Article 18.5 c) of the General Conditions stipulates: Humanitarian Organisations with general accounts in a currency other than the euro shall convert the costs incurred into euro using the exchange rate published on the European Central Bank website as that used when the European Community’s first pre-financing payment was recorded in the Partner’s accounts

Where justified in a particular Action, the partner may request a derogation and use another exchange rate. The derogation can be requested in section 11 of the Single Form.

Alternatively, if the partner intends to use a different exchange rate on a permanent basis, it can request a permanent derogation to ECHO.

Please note that exchange rate losses are not eligible costs and will not be compensated, according to Article 8.4 of the General Conditions.

CURRENCY AND IMPLEMENTING PARTNERS/CONSORTIUM

The lead partner is responsible for the financial reporting to ECHO. The exchanges rate for costs incurred by implementing partners/consortium members is an internal matter agreed upon the lead and other members.

CONVERSION BETWEEN THE HQ CURRENCY AND OTHER CURRENCIES USED FOR THE ACTION

The way that a Humanitarian Organisation converts other currencies used in the implementation of the Action (e.g. Dollars or local currencies in countries of implementation) into the currency of its general accounts at HQ (e.g. Euros or Pounds Sterling) is primarily an internal matter which must be performed in compliance with the Organisation's usual accounting practices and foreign exchange rules.

There are different systems for recording expenditure in different currencies, for example using the rate on the first day of the month, the rate on the actual day or weighted monthly averages.
The Partner may decide which conversion method to apply in a given Action on the condition that the foreign exchange conversion system:

  • is according to its usual accounting practices;
  • is applied consistently throughout the whole Action, to all types of transactions and funding sources;
  • can be evidenced (i.e. the decision/policy is documented in writing) for purposes of any future audit.



References & useful links