There are different levels of eligibility rules for expenditure:
- European level: EU regulations.
- European Urban Initiative level: specific EUI-IA rules (i.e. EUI-IA Guidance).
- National level: national rules applicable in each Member State.
- Partner institutional level: internal rules applicable to each Project Partner.
In case of differences between the rules, the stricter one prevails. Generally speaking, to be eligible, project costs must:
- Be reasonable, justified, and in accordance with the principles of sound financial management.
- Be identifiable, verifiable, plausible, and determined in accordance with the relevant accounting principles.
- Be incurred and paid by the Project Partner (except where expenditure is reimbursed on the basis of a lump sum, flat rate or unit costs).
- Relate to activities set out in the Application Form, be essential for the implementation of a project and not have been incurred if the project had not been carried out (additionality).
- Be in euro when reported to EUI-IA; expenditure incurred in a currency other than the euro shall be converted into euro by the Project Partner.
- Comply with the principles of efficiency, economy and effectiveness (provide value for money).
- Double financing of the same costs is not allowed (e.g. expenditure which is already co-financed from another funding source).
- Expenses related to contracts between Project Partners concerning the delivery of services, supplies or works among themselves are not eligible.
- When applicable, the relevant public procurement procedures must be observed.
 In practice, the expenses are reported in their original currency in the Financial Claim on the EUI-IA EEP. The latter automatically makes the conversion using the exchange rate of the month when the Financial Claim is submitted for validation to the FLC. See Chapter 7.5.2 “Use of the euro and exchange rates” for more information.