Ineligible expenditure comprises project costs that do not meet the eligibility conditions defined by the call, the contract for the provision of the NFP, or EU and Slovak legislation, and which therefore cannot be financed from the non-repayable financial contribution. Typically ineligible expenditure includes loan interest, fines and penalties, exchange-rate losses, expenditure incurred outside the eligible period, inflated prices above benchmark levels, VAT for payers entitled to deduct it, or expenditure procured in breach of public procurement rules. Ineligibility may already be determined in the call, or additionally during the review of a payment claim, at which point expenditure is reduced. The recipient covers ineligible expenditure from its own resources, so diligent budget planning and ongoing eligibility checks are a key part of the project's financial management.
See also: Eligible expenditure, Financial correction.
