1. FINANCIAL REPORTING Rules and Regulations
European Commission
Research DG-RTD-D-4
Alexis LONCKE
+32/2/
First INCO Conference: "Supporting Research Integration“ THIS PRESENTATION IS NOT LEGALLY BINDING

2. Financial Reporting
Purpose  provide EC officers with clear and precise information for approval of activities and costs.
Financial report  refers to the provisional budget of the proposal, the outcome of the negotiation process which is translated in the Grant Agreement.
Financial report  reflects the quality of the financial management.
First INCO Conference: "Supporting Research Integration“ THIS PRESENTATION IS NOT LEGALLY BINDING

3. FP7
Financial Rules
First INCO Conference: "Supporting Research Integration“ THIS PRESENTATION IS NOT LEGALLY BINDING

4. Eligible Costs Eligible costs must be:
Actual (special case for personnel costs (average))
Incurred by the beneficiary during duration of project
in accordance with the beneficiary’s usual accounting and management principles
Recorded in the accounts of beneficiary (during the period of reference excepted for specific costs related to the production of the final report (60 days after the end of the project))
Dedicated to the sole purpose of achieving the objectives of the project
Planned in the provisional (or amended) budget or agreed on by PO/FO
First INCO Conference: "Supporting Research Integration“ THIS PRESENTATION IS NOT LEGALLY BINDING 4

5. Organise your financial monitoring on this basis !
Eligible Costs
Eligible costs are classified in specific FP7 headings :
staff,
travel,
durable equipment (! Depreciation !), ALL DIRECT COSTS
subcontracting, DECLARED MUST
consumables, ALWAYS BE REAL
certificates costs, all these being direct costs, (not rounded, not averaged)
- Indirect cost (different types according to calculation method)
Organise your financial monitoring on this basis !
First INCO Conference: "Supporting Research Integration“ THIS PRESENTATION IS NOT LEGALLY BINDING 5

6. Not Eligible Costs e.g. Identifiable indirect taxes including VAT
Duties (tax on imported items)
Interest owed
Exchange losses
Costs declared reimbursed in respect of another Community project
debt and debt service charges, excessive or reckless expenditures
Etc.
First INCO Conference: "Supporting Research Integration“ THIS PRESENTATION IS NOT LEGALLY BINDING

7. Reimbursement Rates
First INCO Conference: "Supporting Research Integration“ THIS PRESENTATION IS NOT LEGALLY BINDING

8. FP7
Certification
First INCO Conference: "Supporting Research Integration“ THIS PRESENTATION IS NOT LEGALLY BINDING

9. Certification (1) 2 types of certificates:
Certificate on financial statements
Expenditure verification
Compulsory for EC contributions > 375,000 €
Certificate on the methodology
Certifies methodology of calculating Personnel & Indirect costs
Optional
Once accepted valid for all subsequent FP7 financial statements submitted
N.B.: The submission of any certificate does not waive the right of the Commission to carry out its own audits (Article II.22 of the FP7 model grant agreement)
First INCO Conference: "Supporting Research Integration“ THIS PRESENTATION IS NOT LEGALLY BINDING

10. FP7
Reporting
First INCO Conference: "Supporting Research Integration“ THIS PRESENTATION IS NOT LEGALLY BINDING

11. Reporting Participant portal: for coordinator and beneficiaries
Access all your projects
The role in the project is registered:
Participant / coordinator
Coordinator to grant access to participants
Unique platforms for all project reporting
SESAM: tool for submitting technical reports
FORCE: tool for submitting financial reports
Security: ECAS – European Commission Authentication System – Need to be identified
First INCO Conference: "Supporting Research Integration“ THIS PRESENTATION IS NOT LEGALLY BINDING

12. Reporting Deliverables defined in Grant Agreement and its annexes
Mandatory Reporting Forms annexed to the Grant Agreement
Periodic report submission within 60 days after end period
Overview progress work
Explanation uses resources
Form C together with a summary financial report and certificate on the financial statements if needed – Conversion rate (date incurred / first day)
Final report within 60 days after end project
Final publishable summary
Report on societal implications
Report on the distribution of EC contribution 30 days after receipt final payment
All reports to be sent electronically through coordinator
Original financial reports to be sent to the Commission
First INCO Conference: "Supporting Research Integration“ THIS PRESENTATION IS NOT LEGALLY BINDING

13. Reporting Commission has 105 days to analyse the reports
Commission may:
Approve reports and deliverables
Reject reports and deliverables
Suspend the delay for approval: additional info, correction,…
No tacit approval of reports
Automatic payment of interest in case of late payment (except for public bodies member states)
First INCO Conference: "Supporting Research Integration“ THIS PRESENTATION IS NOT LEGALLY BINDING

14. External Audit and Sanctions
FP7
External Audit and Sanctions
First INCO Conference: "Supporting Research Integration“ THIS PRESENTATION IS NOT LEGALLY BINDING

15. External Audit FP7 larger autonomy (no CFS) … BUT
‘at any time during the development of the project and up to 5 years after the end of the project, EC may arrange for audit to be carried out by external services or EC services themselves’
Purpose of the audit
For the Commission to obtain assurance that it is not overcharged
Declared Cost is backed by genuine expenditure
All claimed expenditure is recorded in the accounts
First INCO Conference: "Supporting Research Integration“ THIS PRESENTATION IS NOT LEGALLY BINDING 15

16. External Audit EC policy  increased number of audits on the spot
Commission staff or outsourced
Periodic Audit batch by sampling
Audit on request by EC officer (PO/FO) if
lack of cooperation and/or transparency
doubt on costs declared
Possibility of extension of audit results to all GA with the same beneficiary (extrapolation)
First INCO Conference: "Supporting Research Integration“ THIS PRESENTATION IS NOT LEGALLY BINDING

17. Sanctions
Recovery procedures (possible offset by EC (centrally) on other projects from the same beneficiary)
Liquidated damages (if costs overstatement)
strictly applied
unjustified Community financial contribution x (overstated amount/total Community financial contribution claimed)
Financial penalties (if false declarations)
Between 2% and 10% of the EC contribution
First INCO Conference: "Supporting Research Integration“ THIS PRESENTATION IS NOT LEGALLY BINDING 17

18. Thank you for your attention
First INCO Conference: "Supporting Research Integration“ THIS PRESENTATION IS NOT LEGALLY BINDING

19. Information http://ec.europa.eu/research/enquiries
Find a document 
FP7 Enqueries Service 
First INCO Conference: "Supporting Research Integration“ THIS PRESENTATION IS NOT LEGALLY BINDING 19