{"id":6864,"date":"2026-09-18T10:03:56","date_gmt":"2026-09-18T08:03:56","guid":{"rendered":"https:\/\/ak-law.pl\/blog\/board-member-remuneration-under-feng\/"},"modified":"2026-09-25T17:47:34","modified_gmt":"2026-09-25T15:47:34","slug":"board-member-remuneration-under-feng","status":"publish","type":"post","link":"https:\/\/ak-law.pl\/en\/blog\/board-member-remuneration-under-feng\/","title":{"rendered":"Board member remuneration under FENG"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">A member of a company\u2019s management board may also be one of its key specialists. They may develop technology, conduct research, design experiments or be responsible for the substantive aspects of R&amp;D activities. In a project funded under FENG, they may therefore genuinely work as a researcher.  <\/p>\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Can board member remuneration for work on a project be reported as a direct project personnel cost?<\/h2>\n\n<p class=\"wp-block-paragraph\">According to the position currently taken by NCBR, as a rule it cannot, if the same person simultaneously performs management, supervisory or coordination functions for the funding recipient. In such a case, their remuneration is to be covered entirely as an indirect cost, even where a significant proportion of their time is devoted directly to R&amp;D activities. <\/p>\n\n<p class=\"wp-block-paragraph\">In 2026, NCBR has been consistently aligning the documentation for successive FENG calls with this approach. For companies preparing new projects, this primarily means that the budget and project team need to be planned accordingly. For funding recipients already implementing projects, the situation requires a more individual assessment, as the documentation applicable to the specific call, its version, the approved budget and the way in which the remuneration has been recorded and reported to date may all be relevant.   <\/p>\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>How does NCBR currently classify the remuneration of persons performing management functions?<\/strong><\/h2>\n\n<p class=\"wp-block-paragraph\">The current wording of the FENG Eligibility Guides is broad. If a person performs tasks involving the management, supervision or coordination of an R&amp;D project, or management, supervision or coordination functions within the applicant\u2019s business, their remuneration is not reported under the \u201cProject Personnel\u201d category. <\/p>\n\n<p class=\"wp-block-paragraph\">The documentation lists, among others, the following examples of such persons:<\/p>\n\n<ul class=\"wp-block-list\">\n<li>R&amp;D manager, <\/li>\n\n\n\n<li>managing manager, <\/li>\n\n\n\n<li>director, <\/li>\n\n\n\n<li>management board members, <\/li>\n\n\n\n<li>commercial proxies,<\/li>\n\n\n\n<li>authorised representatives. <\/li>\n<\/ul>\n\n<p class=\"wp-block-paragraph\">At the same time, the guidance states that this rule applies to the entire remuneration, irrespective of the proportion of time spent on management activities and research work. In practice, this means that merely identifying the time devoted to R&amp;D activities does not currently allow the remuneration of one person to be split between direct and indirect costs. For example, a company president may spend one day a week performing typical management duties and the rest of the time conducting research in a laboratory. Under NCBR\u2019s current approach, their entire remuneration nevertheless remains an indirect cost.   <\/p>\n\n<p class=\"wp-block-paragraph\">A similar situation may apply to persons who are not formally members of the management board. In its FAQ, NCBR indicates that a person holding a managerial or director-level position within the company who is assigned exclusively to R&amp;D activities in the project should likewise be accounted for under indirect costs. <\/p>\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>How is board member remuneration funded through indirect costs in practice?<\/strong><\/h2>\n\n<p class=\"wp-block-paragraph\">This distinction is important for budget planning.<\/p>\n\n<p class=\"wp-block-paragraph\">In FENG projects where indirect costs are calculated using a flat rate, the funding recipient does not report board member remuneration as a separate cost and does not receive reimbursement corresponding to the specific amount of that remuneration. Instead, indirect costs are calculated by applying the rate applicable to the project to a specified base of direct costs. <\/p>\n\n<p class=\"wp-block-paragraph\">The remuneration of a person performing management functions is therefore one of the expenses that the funding recipient must cover from the flat-rate amount. If the actual costs of management personnel are high, the flat-rate amount does not increase as a result. <\/p>\n\n<p class=\"wp-block-paragraph\">As a result, a change in the classification of remuneration has implications beyond the technical reallocation of a budget item from one category to another. It may affect the actual level of funding available for the work of the R&amp;D team and the amount of the funding recipient\u2019s own resources required to implement the project. <\/p>\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Why does NCBR take this approach?<\/strong><\/h2>\n\n<p class=\"wp-block-paragraph\">NCBR has publicly explained the basis for its current position. It refers primarily to the European Commission\u2019s findings arising from an audit conducted under the Smart Growth Operational Programme and to the <a href=\"https:\/\/funduszeuedlamazowsza.eu\/wp-content\/uploads\/2023\/03\/Wytyczne-dotyczace-kwalifikowalnosci-2021-2027.pdf?_gl=1*s4gv11*_up*MQ..*_ga*NDgxMDE5LjE3ODk3MTc4MDk.*_ga_GF51127620*czE3ODk3MTc4MDgkbzEkZzAkdDE3ODk3MTc4MDgkajYwJGwwJGgw&amp;gclid=CjwKCAjwwrPVBhA1EiwAv_YO-VNgNCw7qi1A9t_jl3SnS7DKsiCf50_26ItVkB2Q2jCy_B98QuQJNBoCJSsQAvD_BwE&amp;gbraid=0AAAAA-QbhExLnaS71Zil64iP2NeV1Zc_p\" target=\"_blank\" rel=\"noopener\">Guidelines on the eligibility of expenditure for 2021\u20132027<\/a>. According to NCBR, the European Commission challenged the possibility of treating management personnel remuneration as a direct cost while simultaneously applying a flat rate for indirect costs, due to the risk of double funding. NCBR also states that attempts were made to justify a proportional allocation of remuneration between management duties and substantive project work, but the Commission maintained its position.   <\/p>\n\n<p class=\"wp-block-paragraph\">The Guidelines classify as indirect costs, among other things, the costs of the project coordinator and personnel involved in the management, financial administration and monitoring of the project, as well as management board costs covering the remuneration of persons authorised to represent the entity whose duties are not assigned exclusively to the project. The Guidelines also state that costs treated as indirect costs may not simultaneously be reported as direct costs.  <\/p>\n\n<p class=\"wp-block-paragraph\">From NCBR\u2019s perspective, the current approach is therefore intended to ensure a clear separation between costs covered by the flat rate and personnel costs financed as direct costs.<\/p>\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Has this been the approach since the beginning of FENG?<\/strong><\/h2>\n\n<p class=\"wp-block-paragraph\">The first FENG calls took a different approach to this issue.<\/p>\n\n<p class=\"wp-block-paragraph\">In the first SMART Path call in 2023, NCBR addressed directly in its FAQ the question of whether members of a company\u2019s management board could form part of the research staff and receive remuneration as personnel costs. The answer allowed for this possibility. The remuneration of a company president or management board member could be reported under the remuneration cost category if an agreement had been concluded with the company for carrying out R&amp;D activities and the scope of those duties had been clearly defined. At that time, indirect costs covered the remuneration of a person performing tasks related to the management, supervision or coordination of the project itself.    <\/p>\n\n<p class=\"wp-block-paragraph\">The difference is therefore significant.<\/p>\n\n<p class=\"wp-block-paragraph\">Under that approach, the primary point of reference was the scope of tasks performed by a particular person within the project. The current approach also takes into account management functions performed within the company itself. A person may therefore perform exclusively research tasks in the project, while their role outside the project may still affect how their remuneration is treated for cost-reporting purposes. <\/p>\n\n<p class=\"wp-block-paragraph\">NCBR consistently describes the changes introduced as a \u201c<em>clarification<\/em>\u201d of the rules and an \u201c<em>alignment of the provisions with the other FENG calls<\/em>\u201d. In May 2026, when updating the documentation, NCBR also indicated that the amendments to the Eligibility Guide resulted from arrangements with the European Commission.  <\/p>\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>The alignment of the documentation is continuing<\/strong><\/h2>\n\n<p class=\"wp-block-paragraph\">In September 2026, NCBR successively updated the documentation for STEP calls concerning digital technologies and clean and resource-efficient technologies. The Instructions for Completing the Application clarified, among other things, that the R&amp;D manager, managing manager and member of the management team are identified as members of the project team, while their remuneration is accounted for under indirect costs.<\/p>\n\n<p class=\"wp-block-paragraph\">NCBR expressly stated that the changes do not introduce new rules on the eligibility of expenditure, but merely clarify how persons involved in a project are to be reported and how their remuneration is to be accounted for. The amended documents were given specific effective dates: 14 September 2026 for calls concerning digital technologies and 17 September 2026 for calls concerning clean and resource-efficient technologies.   <\/p>\n\n<p class=\"wp-block-paragraph\">An institution may harmonise the rules for the future. From a legal perspective, it is considerably more difficult to apply the current interpretation to a project whose budget was previously assessed, approved and incorporated into a funding agreement. <\/p>\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>What do the current rules mean for new FENG projects?<\/strong><\/h2>\n\n<p class=\"wp-block-paragraph\">When preparing a new project, it is worth determining the structure of the R&amp;D team before finalising the budget.<\/p>\n\n<p class=\"wp-block-paragraph\">Particular attention should be paid to persons who combine technological expertise with management functions. This is a common model, especially in technology SMEs. A company founder may simultaneously be its president, the creator of the technology and its lead scientist. An R&amp;D director may manage a department while also personally carrying out part of the research. A laboratory manager may remain one of the most experienced specialists required to perform the experiments.    <\/p>\n\n<p class=\"wp-block-paragraph\">The current FENG documentation requires these functions to be taken into account when structuring project financing. If the remuneration of such a person is to be covered from the flat-rate amount for indirect costs, it is necessary to consider how this affects the overall budget structure, the amount of the funding recipient\u2019s own resources and the availability of the personnel required to carry out the planned work. When planning the team, it is therefore necessary to consider both the expertise required to conduct the research and how the cost of that personnel will be accounted for.  <\/p>\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>What should a funding recipient already implementing a FENG project check?<\/strong><\/h2>\n\n<p class=\"wp-block-paragraph\">This situation requires greater caution.<\/p>\n\n<p class=\"wp-block-paragraph\">NCBR\u2019s current position does not in itself answer the question of how remuneration reported in a project selected for funding under an earlier version of the documentation should be assessed.<\/p>\n\n<p class=\"wp-block-paragraph\">In such a case, four elements should be established in particular:<\/p>\n\n<ul class=\"wp-block-list\">\n<li>the version of the Rules for Project Selection (RWP), the Eligibility Guide, the Instructions and any other documents applicable to the relevant call;<\/li>\n\n\n\n<li>where FAQs were published for the call, the content of those FAQs applicable during the preparation and assessment of the application;<\/li>\n\n\n\n<li>the content of the approved application, the implementation and financial schedule, and the description of the particular person\u2019s role within the team;<\/li>\n\n\n\n<li>the person\u2019s actual involvement in the project and the way in which their remuneration has been reported to date in payment applications.<\/li>\n<\/ul>\n\n<p class=\"wp-block-paragraph\">Only by considering all of this information together is it possible to assess whether NCBR\u2019s current position is consistent with the rules arising from the documentation applicable to the particular project, or whether the treatment of the remuneration for eligibility purposes was described differently in that documentation.<\/p>\n\n<p class=\"wp-block-paragraph\">This is also important because personnel remuneration and the composition of the project team are not merely incidental budget items. The expertise of particular individuals may form part of the project assessment, while personnel costs affect the overall financial structure of the project. <\/p>\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Do older projects necessarily mean a dispute with NCBR?<\/strong><\/h2>\n\n<p class=\"wp-block-paragraph\">The difference between the earlier and current documentation does not in itself determine this.<\/p>\n\n<p class=\"wp-block-paragraph\">On the one hand, the funding recipient implements the project within a specific legal framework and on the basis of the call documentation that set out the conditions for preparing and assessing the application and for the subsequent implementation of the project. In older calls, the manner in which NCBR approved the budget of the particular project may also be relevant. <\/p>\n\n<p class=\"wp-block-paragraph\">On the other hand, NCBR currently maintains a consistent position that the changes constitute a clarification of the rules arising from the Guidelines and reflect the need to take account of the European Commission\u2019s findings concerning the risk of double funding. However, merely referring to the Commission\u2019s audit and to a \u201c<em>clarification<\/em>\u201d of the rules does not in itself establish that the current position can be applied without qualification to projects implemented on the basis of earlier documentation. In such cases, the provisions of the <a href=\"https:\/\/isap.sejm.gov.pl\/isap.nsf\/download.xsp\/WDU20220001079\/U\/D20221079Lj.pdf\" target=\"_blank\" rel=\"noopener\">Implementation Act<\/a>, the documentation applicable to the particular call, the approved budget and the principle of protecting the funding recipient\u2019s legitimate expectations may also be relevant.  <\/p>\n\n<p class=\"wp-block-paragraph\"><strong>If, on this basis, the institution challenges expenditure previously reported, <a href=\"https:\/\/ak-law.pl\/en\/blog\/does-a-financial-correction-mean-repayment-of-funding\/\" data-type=\"post\" data-id=\"4086\">imposes a financial correction<\/a> or <a href=\"https:\/\/ak-law.pl\/en\/blog\/demand-for-repayment-of-funding-what-does-it-mean-and-how-should-you-respond\/\" data-type=\"post\" data-id=\"4030\">seeks repayment of funds<\/a>, it is necessary to examine whether the current interpretation is in fact supported by the rules applicable to the particular project. If the earlier documentation, the manner in which the application was assessed and the approved budget support a different treatment of the costs for eligibility purposes, there may be grounds for challenging the institution\u2019s position and defending the project expenditure as reported. <\/strong><\/p>\n\n<p class=\"wp-block-paragraph\">Assessing an older project requires both of these perspectives to be considered together. Only then can it be determined whether the application of NCBR\u2019s current position to the particular project raises legal concerns. For the funding recipient, the key issue is to identify the problem while the project is still being implemented, before it arises during expenditure verification, a <a href=\"https:\/\/ak-law.pl\/en\/blog\/when-does-a-project-control-lead-to-repayment-of-funding\/\" data-type=\"post\" data-id=\"4140\">project control<\/a> or the final settlement of the project. <\/p>\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Management personnel remuneration under FENG \u2013 what does the current direction of change mean?<\/strong><\/h2>\n\n<p class=\"wp-block-paragraph\">Under FENG, NCBR is aligning the treatment of remuneration for persons who combine substantive R&amp;D activities with management functions.<\/p>\n\n<p class=\"wp-block-paragraph\">In new calls, the rule is now formulated broadly. Performing a management function within the company may result in the person\u2019s entire remuneration being accounted for under indirect costs, even if they carry out genuine and highly specialised research activities within the project itself. <\/p>\n\n<p class=\"wp-block-paragraph\">For projects already under implementation, the rules applicable to the particular call should be established and considered against the approved project structure and the way costs have been reported to date. The current documentation for successive FENG calls reflects NCBR\u2019s present position. For older projects, the difference between the documentation applicable at the time of the call and NCBR\u2019s current position may be directly relevant to the possibility of defending costs that have been challenged. Any financial correction or <a href=\"https:\/\/ak-law.pl\/en\/blog\/do-i-have-to-repay-the-funding-after-receiving-a-demand-for-repayment\/\">demand for repayment of funds<\/a> on this basis should therefore be assessed individually and, where it has no basis in the project documentation, challenged by the funding recipient.   <\/p>\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><strong><em>Are you facing a similar issue in a FENG project?<\/em><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>AK-LAW supports FENG funding recipients at every stage of project implementation \u2013 from <a href=\"https:\/\/ak-law.pl\/en\/scope-of-services\/ongoing-legal-support\/\" data-type=\"page\" data-id=\"4466\">budget planning and assessing cost eligibility, through project changes and correspondence with NCBR<\/a>, to <a href=\"https:\/\/ak-law.pl\/en\/scope-of-services\/project-controls-and-repayment-of-funding\/\" data-type=\"page\" data-id=\"4348\">project controls, financial corrections<\/a> and <a href=\"https:\/\/ak-law.pl\/en\/scope-of-services\/administrative-proceedings\/\" data-type=\"page\" data-id=\"4383\">proceedings concerning the repayment of funds<\/a>.<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><em>We can review the documentation for your call, the way personnel costs have been reported and the implementation of the project to date, and determine what action is required in your particular situation.<\/em><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n<\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>Under FENG, NCBR treats the remuneration of persons performing management functions as an indirect cost. We explain the implications for new and ongoing projects. <\/p>\n","protected":false},"author":1,"featured_media":6865,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[131],"tags":[240,230,238,239,128],"class_list":["post-6864","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-project-modifications","tag-board-member-remuneration","tag-feng","tag-indirect-costs","tag-management-personnel","tag-ncbr"],"_links":{"self":[{"href":"https:\/\/ak-law.pl\/en\/wp-json\/wp\/v2\/posts\/6864","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ak-law.pl\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ak-law.pl\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ak-law.pl\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ak-law.pl\/en\/wp-json\/wp\/v2\/comments?post=6864"}],"version-history":[{"count":1,"href":"https:\/\/ak-law.pl\/en\/wp-json\/wp\/v2\/posts\/6864\/revisions"}],"predecessor-version":[{"id":6866,"href":"https:\/\/ak-law.pl\/en\/wp-json\/wp\/v2\/posts\/6864\/revisions\/6866"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ak-law.pl\/en\/wp-json\/wp\/v2\/media\/6865"}],"wp:attachment":[{"href":"https:\/\/ak-law.pl\/en\/wp-json\/wp\/v2\/media?parent=6864"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ak-law.pl\/en\/wp-json\/wp\/v2\/categories?post=6864"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ak-law.pl\/en\/wp-json\/wp\/v2\/tags?post=6864"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}