1. FP7 Legal, financial and administrative aspects NCP INFO DAY on Science in Society Wednesday 8 September 2010

2. Need for consistency on legal, financial and administrative matters for : -Evaluation -Negotiation -Management

3. I General basic rules from FP7

4. Funding Schemes Collaborative projects – small or medium-scale focused research projects: At least 3 independent legal entities from MS or AC, maximum EU contribution €1.5m Coordination and Support Actions (supporting): At least 1 independent legal entity from MS or AC up to 100% with the exception of topic 2.1.1-1 (up to 70%) Coordination and Support Actions - (supporting - MML Actions & Innovatice methods in Science education): At least 10 independent legal entities from MS or AC (minimum duration : 3 years) - (supporting- structural change in Universities/Research organizations) : At least 3 independent legal entities from MS or AC

5. Forms of Grants Reimbursement of direct and indirect eligible costs according to: the legal status of the organisation the funding scheme the type of activity Lump sum amounts, in particular as option for participants from ICPC Principles of co-financing and non-profit

6. Reimbursement rates per type of activity RTD activities: Up to 50% of eligible costs Up to 75% for: Non profit public bodies, secondary and higher education Establishments, research organisations and SMEs Demonstration activities: up to 50% Management of the consortium: up to 100% Other activities: up to 100%

7. Eligible Costs The reimbursement of beneficiaries shall be based on their eligible direct and indirect costs

8. Eligible Costs –Eligible Actual/average personnel costs Incurred during duration of project In accordance with the usual accounting and management principles of beneficiary Recorded in the accounts of beneficiary Used for the sole purpose of achieving the objectives of the project –Non-eligible (identifiable indirect taxes including VAT…)

9. Direct costs No cost models All beneficiaries report all their real direct costs Personnel costs: total remuneration of the actual hours worked on the project by permanent or temporary employees directly hired by the beneficiary.

10. Indirect Costs a) Actual indirect costs b) Flat rate c) Special case of CSA

11. a)Indirect Costs: actual 1)Real indirect costs 2)Simplified method: A participant may use a simplified method to calculate its indirect costs at the level of the legal entity

12. b)Indirect Costs: flat rate 1)Standard flat rate of 20% 2)Special transitional flat rate of 60% only applicable for funding schemes with RTD activities* for: —Non-profit Public Bodies —Secondary and Higher Education establishments —Research Organisations —SME * Not applicable for CSA Calculation = Flat rate * Direct costs (personnel+other direct costs) excluding subcontracting & resources from 3rd parties not used on the premises of the beneficiary

13. c)Special case of CSA The reimbursement of indirect costs cannot exceed a maximum of 7% of the direct eligible costs (personnel+other excluding subcontracting) This 7% is not a flat rate, it is a maximum reimbursement rate

14. Third parties Beneficiaries should have the capacity to carry out the work themselves: 3rd party: any legal entity which does not sign the GA Third parties:  making their resources available to a beneficiary  carrying out part of the work: Subcontracting Special Clause 10

15. Subcontracting Core parts of the project cannot be subcontracted Tasks and estimation of costs duly described and justified in Annex I Principle of best value for money Charging a price (profit for the subcontractor) Subcontracting should not occur between beneficiaries External support services may be subcontracted for minor tasks: not in Annex I

16. Specific case: Individual consultants Self-employed or working for a third party They can be considered as : Subcontractor In-house consultant Beneficiary

17. In-house consultant In order to be considered as personnel costs, they have to meet the conditions outlined in the financial guidelines (p 53). Main conditions are : he/she should work under the supervision of the beneficiary he/she should work in the premises of the beneficiary he/she should have a contract, payment should be based on working hours (rather than results) and with a remuneration similar to same category of the beneficiary’s staff The result of the work belongs to the beneficiary

18. Community Financial Contribution Total requested EU contribution ≤ Maximum EU contribution fixed in negotiation Determined by applying the upper funding limits per activity and per beneficiary to the estimated actual eligible costs per beneficiary Cannot give rise to any profit: EU contribution ≤ eligible costs-receipts

19. Payment modalities 1.Pre-financing (45 days after entry into force of GA=date of signature by EU) 2.Interim payments based on financial statements (EU contribution= amounts justified & accepted * funding rate) 3.Final payment

20. II FP7 Legal, financial and administrative aspects What’s new ?

21. II – 1 What’s new at FP7 level ?

22. Novelties Flat rates for daily allowances Participants have the option to claim daily subsistence costs and accommodation (related to travel as part of the implementation of a project) on the basis of flat rates. ftp://ftp.cordis.europa.eu/pub/fp7/docs/flat-rates-subsistence_en.pdf Interest bearing bank account (II-19) Extension of the duration for the transitional 60% flat rate for indirect costs (II-15) New Guidance notes on project reporting ftp://ftp.cordis.europa.eu/pub/fp7/docs/project_reporting_en.pdf New guidelines on financial certificates ftp://ftp.cordis.europa.eu/pub/fp7/docs/guidelines-audit- certification_en.pdf

23. Compiled in the New version of financial guidelines Modifications, clarifications and additional information on : -Certificate of methodology -Eligible costs II-14(subcontracting, third parties,etc…) -Identification of direct and indirect costs II-15 -ftp://ftp.cordis.europa.eu/pub/fp7/d ocs/financialguide_en.pdfftp://ftp.cordis.europa.eu/pub/fp7/d ocs/financialguide_en.pdf

24. II – 2 What’s new in WP 2011 ?

25. Lump sums payments 1- optional ! 2- only for members/affiliates from stakeholders organizations ! (ie associations) who will be considered as third party

26. Lump sum payments in WP 2011 SiS.2011.1.0-1 Mobilisation and Mutual Learning (MML) Action Plans on societal challenges SiS.2011.1.3.3-1 Reinforcing European strategies on access, dissemination and preservation of scientific information in the digital age SiS.2011.1.3.4-1 Clusters of cities of scientific culture for innovation SiS.2011.2.2.1-1 Supporting and coordinating actions on innovative methods in science education: teacher training on inquiry based teaching methods on a large scale in Europe

27. Objective : facilitating participation of members from stakeholders organizations Conditions : -Prexisting link (will be considered as third party) -Identification in Part B -Estimation of actual eligible costs Limitation : 25 000€ per member Total available for lump sums shall not exceed 15% of the overall grant amount

28. Example = Consortium F E D C B A A-B-C-D-E-F = Beneficiaries F1 F2 F3 F1 Formal member/ affiliate of beneficiary F Special clause 10 ← Lump sum

29. How will it work ? Identification of the organization in the part B (name, tasks and budget) No need to sign the grant agreement or to fill any specific form at submission stage Validation of the organization (PIC number) once evaluation has been positive (preferably in parallel to submission) Insertion of a special clause 10 at negotiation stage Fund paid proportionnaly on the basis of the approval of the periodic reports and deliverables as foreseen in the grant agreement Financial reporting : Form C no further justification needed But…need to keep track of evidence material in case of audit.

30. Special Clauses The Special Clauses to be inserted to the Grant Agreement are determined during the negotiation. List of Special Clauses is available at: ftp://ftp.cordis.europa.eu/pub/fp7/docs//fp7-ga- clauses-v6_en.pdf ftp://ftp.cordis.europa.eu/pub/fp7/docs//fp7-ga- clauses-v6_en.pdf Special Clause 39 on Open Access is inserted to all SIS Grant Agreements Further information available at: http://ec.europa.eu/research/science- society/scientific_information http://ec.europa.eu/research/science- society/scientific_information Special Clause 40 is inserted into Science Education projects

31. Special clause 40 Link with science education portal : www.scientix.eu To be foreseen at negotiation stage for projects financed under SiS.2011.2.2.1-1 Supporting and coordinating actions on innovative methods in science education: teacher training on inquiry based teaching methods on a large scale in Europe "The Commission shall be authorised to publish any foreground disseminated by the consortium in whatever form and on or by whatever medium, in particular via a European level information provider on its behalf. To enhance the accessibility of this foreground for third parties, it may adapt such foreground in any manner, including by making translations thereof. Any third party shall be allowed to utilise this published foreground for free for non-commercial educational purposes. To ensure the above, the consortium, acting through the coordinatorshall upon dissemination of any foreground provide the Commission with an electronic copy thereof and shall ensure that any necessary authorisations have been obtained and that it has not accepted legal obligations which could conflict with this clause". => Consortium agreement

32. Guidance documents on Financial Aspects –Standard model GA: Annex II –Negotiation guidance notes –Guide to financial issues NEW VERSION ! –Consortium agreement checklist –Reporting guidelines NEW VERSION ! http://cordis.europa.eu/fp7/find-doc_en.html

33. FP7 Enquiry Helpdesk  http://ec.europa.eu/research/enquiries http://ec.europa.eu/research/enquiries FP7 Documents and guidance  http://cordis.europa.eu/fp7/find- doc_en.html http://cordis.europa.eu/fp7/find- doc_en.html Information

34. How can a participant Register in Participant Portal? Link to the participant portal main page: http://ec.europa.eu/research/participants/portal/appmanager/participants/portal Link to the participant portal main page: http://ec.europa.eu/research/participants/portal/appmanager/participants/portal

35. Thank you very much for your attention!