1. Financial aspects of PEOPLE program and actions managed by REA
Nicolo’ Giacomuzzi-Moore
Unit A.2 – Finance
Financial Verification
Marie Curie Monitoring Action and Information Days
Barcelona, June 9th-11th 2010
Financial aspects of PEOPLE program and actions managed by REA

2. Marie Curie Actions Researcher’s Night Initial training
ITN - Initial Training Networks
International dimension
IOF - International Outgoing Fellowships
for career development IIF - International Incoming Fellowships
IRSES - International Research Staff
Exchange Scheme
Researcher’s
Night
Life-long training
IEF - Intra-European Fellowships
for career development
ERG - European Reintegration Grants IRG - International Reintegration Grants
COFUND - Co-funding of regional,
national and international programmes
Industry - Academia
IAPP - Industry-Academia
Partnerships and Pathways

3. Marie Curie Actions
Eligible costs
Actual
however People specific programme includes the possibility of Flat rate costs
Incurred by the beneficiary within the duration of the project
Exception: final reports + CFS
Registered in the accounting following the usual practices of the beneficiaries
Used for the sole purpose of the project (economy efficiency effectiveness)
Have been indicated in the overall budget in Annex 1

4. Non eligible costs Identifiable taxes, including VAT Duties
Marie Curie Actions
Non eligible costs
Identifiable taxes, including VAT
Duties
Interest owed
Provisions for possible future losses/charges
Exchange losses
Costs reimbursed in respect of any other EU project
Debt and debt service charges
Excessive or reckless expenditure

5. General rules for Marie Curie Actions
The Community financial contribution to the Marie Curie indirect actions takes in general the form of grants covering up to 100% of the budget of the indirect action, comprising, if the case arises, predetermined scale of unit costs (flat rates) for various categories of expenses.
The eligible expenses that can be charged can be broadly divided into:
Eligible expenses for the activities carried out by the researchers
Eligible expenses for the activities carried out by the host organisations.

6. Cost categories for Marie Curie Actions
Researcher
Living allowance (salary)
Cost Category A
Mobility allowance
Travel allowance
Cost Category B
Career Exploratory allowance
Cost Category C
Contribution to research and training costs
Cost Category D
Beneficiary
(host)
Contribution to networking costs, costs of execution of the project
Cost Category E
Contribution to the organisation of external events
Cost Category F
Management
Cost Category G
Overheads
Cost Category H
Other
Cost Category I

7. Monthly living: Cost Category A
Marie Curie Actions
Monthly living: Cost Category A
For each eligible researcher, the host organisation can opt between recruiting the researcher under an employment contract or on a fixed amount fellowship with minimum social security, depending on the legal and/or administrative situation of the beneficiary and/or the researcher.
As a general rule, researchers should be appointed under an employment contract, except in adequately documented cases (such as for short stays) or where national regulation would prohibit this possibility.
Rates applicable are included in WP correspondant to the call.
For individual countries, correction factors mentioned in WP have to be applied

8. Monthly living allowance: Cost Category A
Marie Curie Actions
Monthly living allowance: Cost Category A WP
2007
2008
2009
2010
Categories
Employed researcher
Fixed amount minimum social sec.
Early stage
researchers
33800
16900
34500
17250
35300
17650
36700
18350
Experienced
(4-10 years experience)
52000
26000
53000
26500
54300
27150
56400
28200
Researchers
(>10 years experience)
78000
39000
79500
39750
81400
40700
84500
42250
For individual countries, correction factors mentioned in WP have to be applied

9. Monthly living and mobility allowance: Cost Category A
Marie Curie Actions
Monthly living and mobility allowance: Cost Category A
a "mobility allowance" will be paid for some categories of researchers, which will take due account of the researcher’s family situation
Researchers without a family 500€/month
Researchers with family 800€/month
Correction
Factor!

10. Travel allowance: Cost Category B
Marie Curie Actions
Travel allowance: Cost Category B
Researchers entitled to the monthly mobility allowance shall also receive a travel allowance calculated on the distance between the place of origin and the beneficiary’s premises. The travel allowance is paid for every period of 12 months or less
Distance (km)
Fixed-amount contribution (€)
< 500
250
500 – 1 000
500
750
1000
1500
2000
>10 000
2500

11. Living, mobility and travel allowances: Cost Category A and B
Marie Curie Actions
Living, mobility and travel allowances: Cost Category A and B
What records do we need to keep for EU audit purposes?
Flat rates are intended to be to the exclusive benefit of the researcher. The Host must therefor be able to demonstrate – upon REA’s request – that salary, allowance, employer’s social security charges are at least equal to the declared flat rate.
Proof of payment of the salary to the fellow and of the deductions for social security etc
Employment contract/agreement with the fellow 11

12. Living, mobility and travel allowances: Cost Category A and B
Marie Curie Actions
Living, mobility and travel allowances: Cost Category A and B
Evidence that the fellow worked full time on the project: this can include lab books, conference abstracts, library records, etc
Time sheets are not an obligation for the Marie Curie Fellows. However, if this is required across the institute then the fellow can also be asked to complete them
Evidence of the family status of the fellow at the time of recruitment and at the call deadline (Individual actions)
Evidence of the distance between the place of origin and the beneficiary’s premises

13. Career exploratory awards and participation to seminars
Marie Curie Actions
Eligible expenses for activities carried out by researchers: Cost Category C and D
Career exploratory awards and participation to seminars
Career exploratory awards allowance is a single payment of €2000/fellow paid only for recruited researchers appointed under the project for at least one year, and is intended to enable each researcher to help develop their career
Contribution to participation to seminars is managed by the beneficiary for expenses related to the participation of the researchers in research and training activities (contribution to research-related costs, meetings, conference attendance, training actions, etc). It consists of a fixed amount:
€600 per researcher-month recruited for initial training: for laboratory based research projects + €300 per researcher-month recruited for initial training: for non-laboratory based research projects (ITN)
€800 per researcher-month recruited for initial training: for laboratory based research projects + €500 per researcher-month recruited for initial training: for non-laboratory based research projects (Individual actions)

14. Cost Categories C and D Marie Curie Actions
What records do we need to provide for EU audit of category C costs?
Evidence that the fellow has been working on the project for at least 1 year.
Records of payments to the fellow
What records do we need to keep for EU audit of category D costs?
Flat rate for which no proof of actual spending is required
REA may withhold all or part of the flat rate for category D when it becomes aware that the beneficiary is not supporting the researcher for participation to seminars/conferences 14

15. Marie Curie Actions
Category E: Contribution to the research training / transfer of knowledge programme expenses
This is flat rate contribution of a fixed amount per researcher/month, depending on the type of host driven action, that goes to the beneficiary for the execution of the project.
It covers the participation of eligible researchers in research and transfer of knowledge activities (research costs, participation in meetings and conference attendance, etc) and contribution to the expenses related to the coordination between participants (partnership meetings, secondment of staff, etc).
Different on the base of WP
YEAR
2007
2008
2009
2010
ITN
600€
600
1200
IAPP
800€
800

16. Research/Training/ToK: Cost Category E
Marie Curie Actions
Research/Training/ToK: Cost Category E
What records do we need to provide for EU audit purposes?
For the purposes of the Grant Agreement, you do not need to keep detailed records of what the money was used for
However, please ensure you keep sufficient records to comply with the accounting rules of your institution as they will normally require more records than that required by the Grant Agreement 16

17. Marie Curie Actions
Contribution to the organisation of international conferences, workshops and events - Category F
This category is valid for ITN/IAPP only
This contribution fo 300€ researcher/day for researchers from outside the partnership is managed by the beneficiary for the organisation of international conferences, workshops and events open to participants outside the network, including: organisational expenses (invitation of keynote speakers, publications, rental of premises, web casting) and participation fees of eligible researchers from outside the partnership.
This category was abolished from 2009 WP

18. External events – Cost Category F
Marie Curie Actions
External events – Cost Category F
What records do we need to provide for EU audit purposes?
For the purposes of the Grant Agreement, you have to provide evidence and records that the conference effectively took place and ensure you keep sufficient records to comply with the accounting rules of your institution as they will normally require more records than that required by the Grant Agreement
In the case of an audit by the EU, the consortium will need to provide the attendance list for the event showing clearly the presence of the external researchers
If you make a profit with this event, you must report it 18

19. Management activities: Cost Category G
Marie Curie Actions
Management activities: Cost Category G
The amount of eligible expenses for management activities is defined in the Work Programme relevant to the call under which the proposal was submitted and in Annex I to the grant agreement. Various modalities have been defined, dependent on the action and relevant Work Programme:
Variant 1: based on actual costs incurred for the management of the project, up to a maximum of 3% or 7% of the total Community contribution depending on the action and number of beneficiaries
Variant 2 (for individual fellowships – IEF, IIF, IOF – since 2009 Work Programme onwards): a flat rate amount of 700€ per researcher/month covering not only the management of the project but also a contribution to indirect costs (correction factor applies for this category)

20. Management: Cost Category G
Marie Curie Actions
Management: Cost Category G
What records do we need to keep for EU audit purposes?
FOR VARIANT 1
This is a real cost category therefore you need to keep full evidence:
All records of expenditure
Full timesheets for personnel costs
These do not need to be provided to the REA with the reports, however the periodic report must give an explanation of the breakdown of costs charged to cost category G and proof documents should be provided upon request
FOR VARIANT 2
For the purposes of the Grant Agreement, you do not need to keep detailed records of what the money was used for
However, please ensure you keep sufficient records to comply with the accounting rules of your institution as they will normally require more records than that required by the Grant Agreement 20

21. Contribution to indirect costs: Cost Category H
Marie Curie Actions
Contribution to indirect costs: Cost Category H
The amount of eligible expenses for indirect costs is defined in the Work Programme relevant to the call under which the proposal was submitted and in Annex I to the grant agreement. Various modalities have been defined, dependent on the action and relevant Work Programme:
Variant 1: a flat rate payment up to 10% of the direct costs, excluding costs for subcontracting. The flat rate applies per period per project: participants are free to declare more or less overheads within the ceiling of 10% overheads for the project as a whole.
Variant 2 (for individual fellowships – IEF, IIF, IOF – from the 2009 Work Programme onwards): category merged with G in a sigle flat rate.

22. Other types of eligible expenses: Cost Category I
Marie Curie Actions
Other types of eligible expenses: Cost Category I
With respect to the Marie Curie Industry-Academia Partnerships and Pathways (IAPP), participating SMEs can charge small equipment expenses to the project up to a maximum of 10% of the total negotiated contribution to the SME participant, provided that they are:
duly justified for the project;
based on real costs;
with prior agreement by the Commission and included in ANNEX I.
IRG ERG contribution to integration of Researcher in host organisation:
ERG euro per researcher/year (max 3 years)
IRG euro per researcher/year (max 4 years)
With respect to reintegration grants as well as the Incoming International Fellowships (IIF) this is the only relevant category of expenses. A fixed amount per researcher/year is specified in the Work Programme relevant to the call under which the proposal has been submitted. This amount is managed by the beneficiary with the objective to reintegrate the researcher in the organisation of the beneficiary.

23. Other type of eligible expenses – Cost Category I
Marie Curie Actions
Other type of eligible expenses – Cost Category I
What records do we need to provide for EU audit purposes?
For 10% SMEs equipment: This is a real cost category therefore you need to keep full evidence of
All receipts of expenditure
Detailed calculation of the depreciation in accordance to the local accounting principles
For IRG ERG flat:
For the purposes of the Grant Agreement, you do not need to keep detailed records of what the money was used for
However, please ensure you keep sufficient records to comply with the accounting rules of your institution as they will normally require more records than that required by the Grant Agreement 23

24. Specific Actions managed by REA
Marie Curie Actions
Specific Actions managed by REA

25. ERG/IRG Cost categories :
Marie Curie Actions
ERG/IRG
Cost categories :
(I) Other type of costs = expenses by hosting organisation related to integration of researcher
ERG = Fixed amount € per researcher/year up to 3 years
IRG = Fixed amount € per researcher/year up to 4 years

26. IEF IOF IIF IEF cost categories (A B C D G/H):
Marie Curie Actions
IEF IOF IIF
IEF cost categories (A B C D G/H):
Monthly living and mobility allowance (see tables and apply correction coefficient)
Travel allowance
Career exploratory allowance
Contribution to participation expenses
Management activities ( ): maximum 3% of EC contribution
Overheads ( ): 10% of direct costs
Since 2009: Management + Overheads = 700€ per researcher/month up to 20% of total direct costs

27. IEF IOF IIF IOF cost categories (A B D G/H): Marie Curie Actions
Monthly living and mobility allowance (see tables and apply correction coefficient)
Travel allowance
Contribution to participation expenses
Management activities: maximum 3% of EC contribution
Management activities ( ): maximum 3% of EC contribution
Overheads ( ): 10% of direct costs
Since 2009: Management + Overheads = 700€ per researcher/month up to 20% of total direct costs

28. IEF IOF IIF IIF cost categories (A B D G/H I): Marie Curie Actions
Monthly living and mobility allowance (see tables and apply correction coefficient)
Travel allowance
Contribution to participation expenses
Management activities ( ): maximum 3% of EC contribution
Overheads ( ): 10% of direct costs
Since 2009: Management + Overheads = 700€ per researcher/month up to 20% of total direct costs
Optional return Phase € under (I) for reintegration of researcher

29. NIGHT Up to 100% of costs (CSA) Mono/Multi-beneficiary
Marie Curie Actions
NIGHT
Up to 100% of costs (CSA)
Mono/Multi-beneficiary
Indirect costs max 7% of direct costs (not a flat rate, it is a ceiling)
Duration 7 months

30. Marie Curie Actions
IRSES:
1800€ per seconded researcher per months (management Included) covering mobility costs
Not a salary/allowance!
Mono-beneficiary (2007/08)
Multi-beneficiary (2009/10)

31. COFUND Financing for funding bodies and fellowship schemes
Marie Curie Actions
COFUND
Financing for funding bodies and fellowship schemes
EC contribution = 40% of fellowship cost for eligible researchers
Max 5 million € per single applicant per call
Scale unit costs method = flat rate amount calculated on negotiated budget per project

32. ITN the recruitment of researchers to be trained;
Marie Curie Actions
ITN
the recruitment of researchers to be trained;
networking costs and the organisation of short training events (workshops, seminars, summer schools and conferences).
where applicable, the recruitment of the senior “visiting researchers”;

33. ITN Cost categories (A B C D E F G/H):
Marie Curie Actions
ITN
Cost categories (A B C D E F G/H):
Monthly living and mobility allowance
Travel allowance
Career exploratory award
Contribution to participation expenses
Contribution to research/transfer of knowledge
Please not that since 2009 these two categories were merged
Management costs
Indirect costs
Maximum of 40% of the EU contribution to any one country in the network

34. Marie Curie Actions
IAPP
Exchange of know-how and experience through two-way or one-way secondments of research staff between commercial and non-commercial partners
Recruitment of experienced researchers from outside the partnership, for involvement in the transfer of knowledge and⁄or the training of researchers
Networking, workshops and conferences involving external researchers as well as the partners' own research staff.

35. IAPP Cost categories (A B C D E F G/H):
Marie Curie Actions
IAPP
Cost categories (A B C D E F G/H):
Monthly living and mobility allowance
Travel allowance
Career exploratory award
Contribution to participation expenses
Contribution to research/transfer of knowledge
Please not that since 2009 these two categories were merged
Management costs
Indirect costs
Small equipment expenses for SMEs participating (Max 10% of negotiated SMEs contribution)

36. Summary of « People » Actions
Elegible cost categories for
activities carried out by researcher
Monthly living allowance A
Travel allowance B
Exploratory award C
Participation expenses D
ITN
YES
600€ per researcher/month for lab projects and 300€ for non-lab projects
IAPP
For newly recruited researchers only, not for seconded staff NO
IEF/IOF/IIF
IOF IIF NO
800€ per researcher/month for lab projects and €500 for non-lab projects
IEF YES
IRG/ ERG
General rules
For specific amounts see table correspondent WP
2000€ per fellow
Fixed amount per researcher/month for lab projects and for non-lab projects

37. Summary of « People » Actions
Cost Categories for activities carried out by host
TRANSFER OF
KNOWLEDGE
CONFERENCES
MANAGEMENT
INDIRECT COSTS
OTHER
ITN
600€ per researcher/month
YES
7% for networks
3% for mono beneficiary and twinning
10% of direct costs NO
Since WP 2009
1200€ per researcher/month
IAPP
800€ per researcher/month 3%
10%
Max 10% of beneficiaries contribution can be charged by SMEs for equipment
IEF
IOF
IIF
15.000€ per researcher/years for return phase IOF/IIF
700€ per researcher/month
(starting with WP 2009)
up to 20% of total direct costs
IRG/ ERG
(2007 WP)
15.000€ per researcher/year ERG
25.000€ per researcher/year IRG
(2008 onwards)
General rules
800€ or 600€
per researcher/month
300€ per researcher/day
7% or 3%
of EC contribution
10% of direct costs, except subcontractors

38. Summary of « People » Actions
Financial rules for other actions
IRSES
1800€ per seconded researcher/months
NIGHT
100% of costs, during 7 months (CSA)
COFUND
40% of the fellowship costs for eligible researchers, with a maximum overall of EUR 5 million to a single applicant entity

39. Marie Curie Actions
Recurrent questions

40. Payments flow TOTAL EU CONTRIBUTON = 100% Marie Curie Actions
Pre-financing
5% for Guarantee fund
month 2
Project duration
month 12
Interim Payment
Final Payment
Month 24
Guarantee Fund restitution = 5%
After final payment

41. Marie Curie Actions
Guarantee Fund
FP7 Guarantee Funds of the Participants (GF) has been established in order to cover amounts due and not reimbursed by defaulting partners
GF intervene in favor of the consortium for the amount not spent by the defaulting participant in order to ensure the continuation of the project
At the end of the project the 5% of EU contribution is returned to the beneficiaries

42. Purchase of durable equipment
Marie Curie Actions
Purchase of durable equipment
General Rules:
Direct cost
No VAT
Depreciation for the period must be charged
In which category?
Category E/D
Look for which activity the durable equipment is used

43. More on cost categories
Marie Curie Actions
More on cost categories
Transfer of costs between categories
Allowed only in some exceptional cases
Allowed within the two large categories (HOST/FELLOW)
Allowed from the HOST towards the FELLOW
Ask for agreement from PO
Underpayment of the fellow
Not possible
Breach of the contract

44. Subcontracting Marie Curie Actions Is subcontracting allowed?
Yes, if foreseen in Annex 1 of the Grant Agreement
What can be subcontracted?
Only non-core tasks
Many tasks of the coordinator cannot be subcontracted
What procedures do we need to follow?
You need to follow the rules of your institution
In addition the choice of subcontractor must be transparent, on the basis of equal treatment and represent best value for money.
Why do I need to record all subcontracting costs?
Subcontracting costs do not generate overheads (cat H) therefore must be recorded separately to ensure correct calculation of Cat H

45. Maternity leave Marie Curie Actions
Can a fellow take maternity or parental leave?
Yes, in accordance with the national legislation
Are the costs of the leave eligible?
When mandatory under national law and not refundable from social secutiry
What costs can we claim?
The difference between the amount provided by social security and the amount payable to the fellow (the latter capped at the flat rate provided in the GA)
Will the EU contribution automatically be increased by that amount?
This is examined on a case-by-case basis and is not decided until the end of the project
Often, by the end of the project the total amount of costs claimed are less than the maximum EU contribution therefore no increase is necessary

46. Interest on prefinancing
Marie Curie Actions
Interest on prefinancing
Interest bearing bank account (for new projects)
Obligation to use Interest bearing bank account for all coordinators and mono-beneficiaries
Exception for pre-financing of less than euro
Following GA and FR, interest must be recovered
How to declare interests
Interest generated by pre-financing must be declared in the FORM C (specific box)
They will be offset, usually at the final payment

47. FORM C: What is it? Marie Curie Actions
It is a cost statement, a declaration on honour that its content is real and reliable (also from Audit point of view)
Has to be filled and submitted by beneficiaries not later than 60 days after the end of each reporting period (electronically and paper)
Has to be signed by beneficiary’s representative
Includes projects details, cost categories, indication of receipts, certificates to be included
It is checked by REA officials against FP7 rules, the GA conditions and the provisional budget established
If inconsistencies are found beneficiaries are contacted in order to have complementary information

48. Certificate on financial statement
Marie Curie Actions
Certificate on financial statement
Certificates on the Financial Statements (CFS) are not required for indirect actions entirely reimbursed by means of lump sums or flat rates.
CFS should be provided only once the threshold mentioned in the GA (EUR 375,000) has been reached.
EC contribution is equal or superior to EUR 375,000 when cumulated with all previous payments
Standard EU templates provided
Filled by authorised Auditor at EU level

49. Marie Curie Actions

50. Thank you and good luck! Nicolo' Giacomuzzi-Moore
Head of Sector - Financial Verification
Research Executive Agency
COVE 15/102
Place Rogier,16 ,B-1049 Brussels
Tel: