1. DG Research and Innovation
Model Grant Agreement
DG Research and Innovation

2. Simplification Flexibility Coherence Continuity
Horizon 2020 model Grant Agreement:
Objectives
Simplification
Provisions
Wording
Flexibility
To accommodate particularities
Usual cost accounting practices
Coherence
Within H2020 and with other EU programmes
Continuity
Where possible and adequate

3. Accommodating specificities
Horizon 2020 model Grant Agreement:
Accommodating specificities
General Model Grant Agreement
ERC MGA
SME instrument MGA
Co-fund MGA
Marie-Sklodowska Curie MGA

4. General conditions Annex II Specific provisions Annexes III
Horizon 2020 model Grant Agreement:
A single document with all provisions
General conditions Annex II
Core text
Specific provisions Annexes III
Special clauses
FP7

5. Grant Agreement
Some novelties
Global architecture common with the other EU programmes; with all the possibilities offered by the new FR
Terminology: terms and meanings defined in the Financial Regulation except for those terms specific to H2020
On-line explanations for each article of the grant ("annotated GA") 5

6. Electronic communication for the management of the Grant:
Electronic signature
Of the Grant Agreement
Of the Amendments
Financial Statements and Technical reports
Communication between the Commission and the beneficiaries
Through the Participant Portal
Electronic-only submission of reports

7. H2020 Grant Agreement Chapter 1: General Chapter 2: Action
Single article: subject of the agreement
Chapter 1: General
Action, duration and budget
Chapter 2: Action
Amount, reimbursement rates, eligible costs
Chapter 3: Grant
To implement the action: resources, in-kind contributions, subcontracts
Grant administration: reporting, payments, audits
Background and results: access rights, protection of results, exploitation, dissemination
Others: gender equality, ethics, confidentiality
Chapter 4: Rights and obligations
Roles and responsibilities, internal arrangements
Chapter 5: Division of roles
Rejection, reduction, recovery and penalties
Suspension and termination of the action
Chapter 6: Rejection, reduction, penalties, termination, etc
Accession, entry into force, amendments, applicable law
Chapter 7: Final provisions

8. Annexes to the grant Horizon 2020 model Grant Agreement:
Annex I: Description of the action
Annex II: Estimated budget
Annex III: Accession Form
Annex IV: Financial statements
Annex V: Certificate on the financial statements
Annex VI: Certificate on the methodology

9. 1. Forms of costs Actual Unit costs Flat rate Lump sum
Costs actually incurred, identifiable and verifiable, recorded in the accounts, duration, etc
Actual
A fixed amount per unit determined by the Commission, except for average personnel costs
Example: SME owner unit costs
Unit costs
A percentage to be calculated on the eligible costs
Example: Indirect costs = 25 % Direct costs
Flat rate
A global amount to cover the whole costs of the project or one cost category
Example: Phase 1 of the SME instrument
Lump sum

10. Maximum reimbursement rates Demonstration activities
2. Funding rate
FP7
One project = One rate
for research actions
For all beneficiaries and all activities in the grant.
Defined in the Work Programme:
Up to 100 % of the eligible costs for research actions;
up to 70 % for innovation actions (exception for non-profit organisations – up to 100%).
Maximum reimbursement rates
Research and technological development activities (*)
Demonstration activities
Other activities
Network of excellence
50%
75% (**)
100%
Collaborative project(****)
Coordination and support action
100% (***)
(*) Research and technological development includes scientific coordination.
(**) For beneficiaries that are non-profit public bodies, secondary and higher education establishments, research organisations and SMEs
(***) The reimbursement of indirect eligible costs, in the case of coordination and support actions, may reach a maximum 7% of the direct eligible costs, excluding the direct eligible costs for subcontracting and the costs of resources made available by third parties which are not used on the premises of the beneficiary.
(****) Including research for the benefit of specific groups (in particular SMEs)

11. FP7 3. Single indirect cost rate 20% ? 60% ? Real ? Simplified?
Single Flat Rate:
25 %
FP7
Simplifying project management and reducing recurrent errors. Combined with practical guidance for large research infrastructures on how costs can be accepted as direct costs

12. 4. New funding model: what impact on the EU contribution?
An example
Direct costs
Indirect costs
Total costs
% EU contribution
EU contribution
75/60 Funding
100 60
160
75%
€ 120
FP7
Majority of HES & ROs
In FP7, around 90 % of the Universities and more than a half of the Research Organisations apply the 60 % flat-rate for indirect costs.
For all these participants the impact on the EU contribution of the H2020 funding model will be favourable:
Direct costs
Indirect costs
Total costs
% EU contribution
EU contribution
100/25 Funding
100 25
125
100%
€ 125

13. CALCULATING PERSONNEL COSTS ACTUAL PERSONNEL COSTS
5. Personnel Costs - I
CALCULATING PERSONNEL COSTS
ACTUAL PERSONNEL COSTS
Calculation method defined in the model grant agreement
UNIT COSTS
Calculated by the beneficiary according to its usual accounting practices
(Average personnel cost)
Fixed by Commission for SME owners and natural persons without a salary

14. 5. Personnel Costs - II Personnel costs
Acceptance of Additional remuneration
for non-profit organisations of up to euros/year/person
Less requirements for time records
…and more in the Horizon Grant Agreement
Cost system for SME owners and physical persons without a salary
No time records for researchers working exclusively on the project
Simplified provisions on productive hours and clear minimum rules on time-recording

15. 6. Controls and Audits Financial viability
Only to coordinators for projects ≥ €500 k
Certificates
CFS: Only for final payments/per beneficiary/for actual costs and unit costs based on usual accounting practices ≥ €
Methodology on average personnel costs: Optional
Ex-post audits
Provisions in Horizon 2020 Regulation!
Commission's audits up to two years after payment of the balance
Audit strategy focused on risk and fraud prevention
details in the MGA
Extrapolation
New Financial Regulation applies
Continuity with FP7
Guarantee Fund

16. 7. Large Research Infrastructures - I
The commitment
Commission's statement at the Council "Competitiveness" meeting on 10/11 October 2012
"For large infrastructures, the Commission will, based on best practices, issue guidelines on how some indirect costs can be moved to direct costs, i.e. where those costs can be directly attributed to the project".

17. 7. Large Research Infrastructures - II
The deliverable
The guidelines have been issued
The guidelines are being adopted by Commission decision
The MGA includes definitions and conditions
Research Infrastructure according to FP art. 2,f
20M€ (large)
75% (research as the core business)
Ex-ante positive assessment (legal certainty)

18. 8. Intellectual Property Rights - I
We keep
Ownership
for the participant who generates results,
joint-ownership only in specific circumstances
Exploitation
General obligation to exploit
Dissemination
principle maintained;

19. 9. Intellectual Property Rights - II
Transfer and exclusive licences outside the Union/Associated Countries
the grant agreement may foresee right to object if a participant has received Union funding
Access rights
for implementation and for exploitation purposes (also for affiliated entities established in MS/AC)
Tailor-made provisions in the MGA for:
security-related activities,
ERC frontier research,
SME instrument,
mobility

20. NEW 10. Intellectual Property Rights - III What is
Additional exploitation /dissemination obligations
(in the work programme)
Open access:
obligatory for scientific publications and,
to research data (in appropriate areas and when foreseen in the work programme)
Access rights:
for the Union under all parts of the programme and,
for MS under 'Secure societies',
Specific provision:
for pre-commercial public procurement and
for procurement of innovative solutions

21. Thank you very much for your attention!
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