A stringent, coherent cost and finance plan is an important criterion for the awarding of funding, because the total costs and the financing of the project are presented here. The cost and finance plan shows the funding agencies what the project will cost, how it will be financed and how much funding must be applied for from the funding agency.

However, the cost and finance plan is not only important for the funding agencies, but also for yourself to get an idea of the scope of your project. Therefore, the cost and finance plan should be clear and easy to understand. It should not be too detailed (do not list every pencil). It is advisable to make a precise calculation beforehand and then summarize the individual cost elements under items. You can see which items usually belong in the cost and financing plan below in the annotated template.

Once your grant has been approved, the cost and finance plan will be an important basis for the final statement of account/proof of use - but more on this later.
 

• Accessibility: Concepts and corresponding funding for accessibility should be included in the cost and finance plans for applications. This is not only about the accessibility of buildings, but also about the barrier-free experience of culture and art. This is often associated with concerns about "additional" costs. Here is a recommendation: If accessibility is included in the preparation and conception of a project from the outset, this makes implementation and financial planning easier. 
• Expenses = income: The costs of the project must be fully offset by the funding (e.g. ticket revenue and promotion). This means that the income must be as high as the expenses. Only when projects are fully financed they will be funded.
• Transparency: In principle, the cost and finance plan should be clearly understandable. If an item cannot be claimed in the plan, a detailed explanation should be added. It's important for the funding body to know what their money is going to be used for. All costs that are itemised must be comprehensible, so it's not possible to include items such as 'contingencies' or 'other'.
• Read first: Before preparing a cost and finance plan, you should read the funding guidelines carefully. Here you will often find important information about the eligible costs and the fee rates. Funding bodies usually only fund project-specific costs and often certain items are not funded. Investment or construction measures, for example, are often not eligible for funding. In addition, sometimes a certain percentage of the total funding amount may not be exceeded for specific expenses (e.g., 15% of the total funding amount for technical expenses). It is therefore worth checking these criteria in advance. 
• Cost estimates: Cost and finance plans are also checked by the funding bodies with regard to proportionality. If an individual item is particularly high, there should be a justification for it. In the case of higher individual items, it is advisable to obtain cost estimates. Some funding bodies require this. If in doubt, it is worth asking. Please note that only costs incurred within the framework of the project for which the funding can be applied for can be claimed.
• If the applicant is entitled to deduct input tax, this must be taken into account and stated in the cost and finance plan.

Calculating costs accurately in advance is difficult because costs can change later. However, if costs are calculated too generously to absorb future fluctuations, the project may not be approved. If, on the other hand, costs are calculated too tightly, the applicant will be stuck with them. The trick, therefore, is to draw up a detailed enough cost and finance plan to ensure that it is comprehensible. On the other hand, there must still be enough leeway for implementation and accounting. If costs can only be poorly estimated in advance, the market can be used as a guide: What are standard salaries for technicians in the industry? What are the lower fee limits? It can also be helpful to look at applications that were funded in the previous funding round.

But what happens if, despite thorough calculations, costs change in the meantime? In this case, the funding body should be informed in good time, and the changes should be reported and justified. Depending on the funding body, it may be possible to submit an amendment application, which will result in a notification of amendment.
 

Since the cost and finance plan forms the basis for the proof of use, standard budgetary principles should be adhered to, namely necessity, economy, efficiency, subsidiarity, annuality, the gross principle, factual commitment and accounting and document obligation.
Once the funding has been approved, the applicant receives a notification of funding. The notice specifies an approval period. Costs can only be claimed within this period. Most grants are earmarked and can only be used for the stated purpose. This must be clearly confirmed in your statement of accounts.
Analogous to the cost and finance plan, a list of receipts should be prepared for the proof of use. You should also keep original receipts and comparative offers for expenses.