Simplified Cost Options (SCOs) and Financing Not Linked to Cost (FNLC) are key tools that make the European Social Fund Plus (ESF+) more efficient and focused on achieving results.
What are simplified cost options?
Simplified cost options are predetermined amounts or percentages that reflect the best possible estimation of actual costs for implementing an action. They provide a streamlined approach to cost management, reducing complexity in the funding process.
What is financing not linked to costs?
Financing not linked to cost is a form of funding where reimbursements are tied to meeting specific conditions or achieving pre-defined results, rather than to the exact costs incurred for implementing specific actions. This ensures a clear link between funding and outcomes.
Why use these tools?
With these tools, it is no longer necessary to trace every euro of co-financed expenditure to individual supporting documents. This leads to:
- Reduced administrative burden for managing authorities and beneficiaries
- More emphasis on policy objectives, shifting the focus away from paperwork and towards achieving tangible results.
Watch the recording of the webinar on SCOs in the 2021-2027 programming period or look at the presentation for more details.
Related documents
Financing not linked to costs (FNLC)
- Financing not linked to costs models: October 2025
- Financing not linked to costs models: September 2025
- Recommendation paper on financing not linked to costs
- How to obtain assurance when using FNLC
Simplified cost options
Meetings of the ESF+ Transnational Network on Simplification
The ESF+ practitioners network supports wider use of SCO and FNLC by bringing people together to share ideas and experiences. Representatives from all 27 EU Member States have the opportunity to learn from each other and to develop and test ideas through informal discussions. The documents from their meetings are published on this page.
