Presentation on theme: "Characteristics of projects in EU research programmes"— Presentation transcript:
1Characteristics of projects in EU research programmes Kai TulliusDG Information Society and MediaUnit E204/01/2006
2Outline of Presentation Project Selection ProcessContract overviewOverview of reporting & financingReportingReviewCosts / ReceiptsPaymentAudit certificatesAmendmentsCollective ResponsibilityConclusions
3Project Selection Process ProcedureCall for proposalsSubmissionEvaluation by external expertsHearing for IPsNegotiation
4Contract Overview Contract – between whom? Between EC and co-ordinator (the legal representative of the consortium)All contractors must accede within time limit specified in contract (30 days) from the date of the signatureMore than before, the co-ordinator is the legal link between the EC and the consortium04/01/2006
5Contract OverviewConsortium agreement in place, EC contract takes precedence in case of conflictsShould cover issues:Decision-making process and dispute settlingIPRPayment modalities between partnersGlobal Risk Management
6Adjusted pre-financing Adjusted pre-financing Initial pre-financing Contract OverviewMonthsPayment & ReportingSchedule (IP)ReportingAccepted costsReportingDetailed work planAccepted costsAdjusted pre-financingReportingAccepted costsDetailed work planAdjusted pre-financingDetailed work planInitial pre-financing
7Reporting 45 days after end of each reporting period Annual Activity ReportAnnual Management ReportReport on the distribution between contractors of the Community financial contributionAny additional report defined in AnnexesUpdated Implementation Plan (IP only)Financial Statements (Form C) and Audit Certificates (if applicable)Final period:all +Final Activity Report covering the full durationFinal management report covering the full duration.Any additional report defined in annexes.Report on the final financial distribution (60 days after receiving it)
8Annual ReviewReview is a contractual requirement to be carried out after each reporting period - successful outcome required for paymentReview is based on:Reports and Deliverables (technical objectives timely achieved with adequate quality?)Resources deployed appropriate?Annual Management Reportproposal for update to Implementation Plan (IP)
9Costs / Receipts Cost basis FC/FCF/AC Direct/indirect Costs AC participants cannot charge costs of permanent staff (except for management)Direct/indirect CostsEligible/ineligibleeligible = economic and necessaryNo reckless expenditureno sub-contracting unless specified in Technical Annex, except for minor tasks (services, brochures, audit certificates)ineligible costs include bank interest, losses etc.in general, follow your internal rules and practicesmust be auditable -> document carefullyReceipts have to be declared
10Payment Pre-financing max. 80% of estimated cost of first 18 months Next payment within 45 days of approval of annual activity reportsPayment for a period normally combined with pre-financing for next periodUsual provisions concerning suspension of payment terms due to missing/incomplete information etc.Receipts reduce grant and must be declared in cost claims.
11Audit Certificates Audit certificates (depending on contract) Free to chose auditor (no need for tendering…)Independent, external auditor, qualified to national regulations – exception: “Competent public officer” for public bodiesCertify that costs incurred during period meet the conditions required by the contract, should expressly state amounts verifiedmake early contract with your external auditorestablish with him how to submit cost claims/certificates 45 days after end of period - continuous assessment process?Payments supported by audit certificates are finalexcept in case of fraud, over-charging etc.Cost of audit certificates is an eligible cost (if economic!)
12Amendments Amendments: no tacit approval To be submitted by registered mail by an AUTHORISED signatory of the COORDINATOR with all supporting documentsRequest must adhere strictly to template (amendment guidelines on Cordis)May include 1 or many modificationsBinary processing: everything acceptable or everything rejected
13Collective Responsibility 1. Technical Collective ResponsibilityEach contractor obliged to take all necessary measures to attain the objectives of the project and to carry out the work incumbent on the defaulting contractor2. Financial Collective ResponsibilityShould either the contract or participation of a contractor be terminated and any contractor does not honour the reimbursement of the amount due by that contractor, the Consortium is responsible to reimburse that amount to the CommissionAmount to be recovered to be allocated between the remaining contractors in accordance with their pro rata share in the project
14Conclusion you must deliver!! FP6 very different to FP5! Increased responsibility for consortiumall aspects - management, budget, technical work…...Expenditure/accounting according to your own, normal rules and practicesno more permission requests - but you may have to justify your actions/expenditure later!Bigger projects, greater opportunity, greater riskGreater visibility and higher expectationsExpect more scrutiny from tax-payer and politiciansMore than ever, need strong management in all areas, clear focus, effective implementation!you must deliver!!
15ConclusionNew financial regulations require strict compliance with contract and deadlinesEC must also demonstrate that it has implemented contracts correctly and ensure proper use of public moneyespecially important for annual activity reports, cost claims, audit certificatesavoid delays with review and approval of programme of work/amendment for following period