This section provides technical information for organisations tasked with implementing the ESF+ such as Managing Authorities or Implementing Bodies.

Simplified reimbursement tools

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.

Financial instruments

The fi-compass web portal offers a wide range of resources for Member States, managing authorities, financial institutions, project leaders and all stakeholders. It provides comprehensive information on the use of financial instruments under the different EU funds jointly delivered with Member States and regions.

Financial instruments co-funded by the European Social Fund Plus are a sustainable and efficient way to invest in the growth and development of people and their skills in order to promote employment and social inclusion goals across the European Union.

A financial instrument can be defined as an equity investment, loan, guarantee or other risk-sharing financial package. New 2021-2027 rules strengthen the use of financial instruments as a way of implementing ESF+ activities. They can support a broad range of development objectives, benefitting a wide range of recipients – with the potential for funds to be reused for further investments.