DEPRECIATION

If the vehicle does not have an economic value anymore, the Partner is free to decide how to use it.  Therefore, it can also decide to sell it, and DG ECHO’s prior approval is not required.

Depreciation or rental costs for the use of durable equipment may be charged to the DG ECHO funded Action in proportion to its actual use as long as the rules on eligibility in Article 6.2 (C.2) are observed. This  option is foreseen for both, the Partner and Implementing Partner as far as the depreciated equipment was necessary for the implementation of the action.

The depreciation/rental costs must be reflected in the accounting system in a consistent and verifiable way. An important exception to this is if the durable equipment was bought using DG ECHO funding. In cases where DG ECHO has already covered or contributed to the purchase cost of a part of durable equipment the related depreciation or rental costs can never be charged to a future DG ECHO funded Action. This practice is contrary to normal financial safeguards and would constitute double funding. In cases where it is not possible to charge rent/depreciation to a DG ECHO funded Action it may still be possible to charge the maintenance and running costs of that durable equipment to the Action's budget.

It's possible to charge a depreciation rate related to the local office building. This is different from a mortgage loan, which is not eligible under the MGA.

The assessment of the residual economic value will be done at the end of the Action, when the partner will have to decide on the end use of the equipment fully charged to the Action. To calculate this value, the partner has to simulate the depreciation costs of the equipment as if it was proposed for a depreciation from the date of its purchase until the end of the Action. This remains the same even if the equipment was used by an Implementing Partner .