Simplified Cost Options

Even though we do not encourage using abbreviations, you will not find a single person in your programme who does not know what the term SCOs stands for (if you do, make sure to give them the link to this page dedicated to simplified cost options).

Using SCOs is one of the key methods of simplifying the implementation of projects, programmes, control and audit procedures within a programme.

Where SCOs are used, the eligible costs are calculated according to a predefined method based on outputs, results or some other costs clearly identified in advance either by reference to an amount per unit or by applying a percentage.

This enables Interreg programmes and institutions involved to significantly reduce the administrative burden, focus on results, rather than tracing every euro. Finally, SCOs contribute to a more correct use of the programme funds (performed audits continuously show lower error rate).

Where to start

If you are new to SCOs, Interact launched a certified course dedicated to SCOs under the aegis of the Interact Academy. The course will introduce you to SCOs world and their utilisation in the Interreg environment. This is the mandatory position on your to-do list if you are the SCOs newbie.

As you may be aware, there are three types of SCOs- lump sums, unit costs and flat rates. They can be established in 5 different ways. For certain types of projects SCOs are the mandatory option to use. SCOs can be also used in combinations with real costs or with other SCOs. They can be used not only by programme beneficiaries but also by the EC to reimburse resources to programmes. If you are interested in programme practices please have a look at the collection of SCOs used by all Interreg programmes.

Would you like to know more?

There is also a dedicated SCOs section in the Interact library where you can find lots of interesting materials, programme experiences, tips and exchanges related to the topic.

What we are working on

Interact offers dedicated events focused on SCOs where practitioners have an opportunity to exchange on implementation challenges and experiences.  In 2026 we will continue collecting the best practices, interesting programme specific SCO examples to foster simplifications provided by SCOs and expand the knowledge and experience of Interreg programmes. As most programmes are well advanced in implementation we also would like to discuss the audit experiences. 

Last but not least as the discussions on the next programming period are ramping up, do expect discussions on the future of SCOs in Interreg.   

We didn't forget about the publication bringing together SCOs and Risk-Based Management Verification.  It took us more then originally expected, but we are collecting programmes' practices to make it as practical as possible. 

Contact

For more information please contact Grzegorz Golda.

Want to exchange on this topic?

Please visit our Financial management network collaboration space.   You will find there dedicated SCOs Interreg folder. You can also exchange with other Programmes on SCO related topics using dedicated Teams channel.  

 If you would like to learn more about this, please contact Grzegorz Golda.