What type of costs must be incurred to be considered eligible?

To be considered eligible for project funding or reimbursement, costs must be actual costs incurred during the project. This means that the expenses have been realized and recorded in the financial system, reflecting money that has been spent or obligated in the context of the project.

In project management, distinguishing between actual costs and projected or estimated costs is crucial. Only actual costs provide a reliable basis for evaluating the financial status of the project and determining budget adherence. They also offer concrete evidence of resource utilization, which is often needed for audits, funding disbursements, and financial reporting.

Projected future costs, estimated administrative costs, and potential costs for new initiatives all represent anticipations or estimates rather than actual financial outflows. While they may help in planning and budgeting processes, they cannot be used for eligibility purposes, as they lack the verification that actual incurred costs provide. Hence, actual costs are the only type that meets the criteria for eligibility in project assessments.