Q: Auditors are considered as subcontractors therefore the costs associated with the obtaining of cost statements cannot be included in the calculation of indirect costs flat rates?

A: If an external auditor is used to provide the audit certificate (which is a form of subcontract) then no overheads can be claimed on this amount because the flat rate does not apply to subcontracting costs; If an internal auditor is used (for public bodies only) this cost will be considered as an eligible cost and the related overheads can be claimed.