Presentation on theme: "Security Research Seventh Framework Programme"— Presentation transcript:
1 Security Research Seventh Framework Programme 2007-2013 Research Executive AgencyAlessandra ForzanoAnna De Rycker-StefanczykREA S3 - Security ResearchSeventh Framework ProgrammeSecurity ResearchFP7 rules for participation and legal issuesInfo Day16th September 2009
2 Who can participate?Any undertaking, university, research centre or other legal entity established in aMember State (MS)Associated Country (AC = Iceland, Liechtenstein, Norway, Croatia, Serbia, Turkey, FYROM, Switzerland, Israel, Albania)If the conditions for participation are met:Minimum number: at least 3 independent participants from 3 MS/AC (Joint Research Centre (JRC) as if established in another MS/AC)Additional conditions of Work Programme (WP) or Specific Programme (SP) (i.e. number/type of participants, place of establishment)International organisations and participants from third countries only in addition to the minimaGeneral principles: co-financing and no profit
3 Eligibility for funding Legal entities from MS and AC or created under Community law (and JRC)International European interest organisationsLegal entities established in International Cooperation Partner Countries (ICPC), andInternational organisations and legal entities from third countries other than AC or ICPC only if:provided for in WP or SP; orthe EC financial contribution is essential for carrying out the action; orbilateral agreement between Community and the third country
4 Similarities with FP6 contract Structure:Core part: GA parametersAnnex I: DoWAnnex II: General ConditionsAnnex III: Specific provisions for funding schemesAnnex IV, V & VI: Forms A,B & CAnnex VII: Form D terms of reference for the certificate of costs and Form E certificate on the methodology (NEW)Consortium Agreement mandatory
5 New in FP7 Certificates 75% financing for some entities No cost models Guarantee FundLess checks – more auditLiquidated damages applied
6 Forms AThe coordinator shall endeavour to ensure that each beneficiary accedes to the grant agreement by signing Forms A in 3 originals, countersigned by the coordinatorAll Forms A are sent by coordinator within 45 days after the entry into force of the grant agreementAfter 45 days REA is no longer bound by its offer to the beneficiary who did not sign Form A. The consortium may propose to REA appropriate solutions to ensure the implementation of the project.Pre-financing is paid to the coordinator for distribution to partners which signed Form A after the minimum number of beneficiaries is reached (Article 6 GA).
8 II.2. Consortium organisation The coordinator shall:Administer the Community financial contribution (allocation per beneficiary and activity)Keep the records (always knows what portion of Community funding has been paid to whom)Inform the REA of the distribution of the Community financial contribution (when, how much)Review the reports before transmitting them to REAMonitor the compliance with obligations under GA
9 II.2. Consortium organisation The beneficiaries shall :Provide all detailed data requested by REA or CommissionCarry out the project jointly and severally vis-à-vis the CommunityEngage to foster dialogue and debate on the research agendaAllow the REA to take part in meetings concerning the projectRegulate by a written consortium agreement :i. the internal organisation of the consortium (also decision making procedures)ii. dissemination and use, and access rightsiii. the distribution of the Community financial contributioniv. the settlement of internal disputes (including cases of abuse of power)v. liability, indemnification and confidentiality arrangements between the beneficiaries
10 II.4-5 Reports and deliverables The Consortium submits to REA:A periodic report within 60 days after the end of each reporting periodA final report within 60 days after the end of the projectREA evaluates project reports and deliverables required by Annex I and pays within 105 days of their receipt (unless suspension of time-limits, payments or the project itself)If REA is unjustifiably late, it pays interests according to the applicable Rules, at the rate applied by the European Central Bank for its main re-financing operations in Euros, plus 3.5 points (exception: not applicable to public bodies of the EU Member States)The interest shall not be treated as a receipt for the project for the purposes of determining the final grant
11 II.6. Payment modalitiesOne pre-financing (45 days upon entry into force of GA)Interim payments based on financial statements (amounts justified & accepted)Retention 10% (PF + IP not beyond 90%)Final payment (adjustments)
12 Certifications Types of certificates: II 4.4 certificate on financial statements (CFS, Form D) expenditure verification - Mandatory base(applies to a project)II 4.4 certificate on the methodology (Form E)system verification – Voluntary base upon EC approval(applies to companies with multiple participation)it only covers indirect costsII.14 certificate on average personnel costsN.B.: The submission of certificates does not affect the right tocarry out audits
13 Certification on Financial Statements Summary:Form D - CFS: always if funding ≥ € when cumulated with all previous payments(if project > 2 years, if < only at the end)Form E - certificate on methodology:no interim CFS but always at the end of the project
14 II.7. Subcontractors SUBCONTRACTS To execute a limited part of projects (not the “core” part of the work)Tasks and costs estimation have to be indicated in Annex IAwarded according to best value for money principleCan be awarded under framework contractsNo indirect costs can be charged on subcontract, only a price, inclusive of profit
15 II.14.1.f Third parties Third parties making available resources Free of charge(3rd party incurs the costs and declares them in Form C – specific section)Beneficiary reimburses the third party(beneficiary itself declares the cost as belonging to him)b. Third parties carrying out part of the work (SC n.10)1. Relationship is broad and goes beyond:(i) the G.A. (e.g. ongoing previous agreement);(ii) the duration of the ProjectFormal external recognition (legal structure or sharing facilitiesExamples: European Economic Interest Grouping, Joint Research Units, affiliates and groupings (e.g. using the same laboratory)NB: - Tasks and costs estimation have to be indicated in Annex I- Third parties shall also be validated in URF!!
16 II.9. ConfidentialityConfidential information: any data, documents or other material identified as confidential in relation to the project execution;Obligation lasts until 5 years after the completion of project or other period established in the consortium agreement;Classified information or information subject to security restrictions or export /transfer- control, must follow the applicable rules under the relevant national and Community legislation for such information
17 II.14. Eligible Costs Eligible ActualIncurred by the beneficiary during duration of projectIn accordance with beneficiary’s usual accounting and management principles and recorded in its accountsUsed for the sole purpose of achieving the objectives of the projectProof should be available (time sheets)List of non-eligible costs under II.14.3Average personnel costs accepted if under a methodology approved by the Commission
18 II.15. Direct Costs No cost models (NEW) All beneficiaries report all their real direct costs even for permanent personnel costs
19 II.15. Indirect Costs All beneficiaries: Actual Indirect CostsSimplified Method (to calculate indirect costs at the level of the legal entity, and not at a detailed level)Standard Flat Rate of 20% of direct costsCertain beneficiaries (Non-profit Public Bodies, Secondary and Higher Education Establishments, Research Organisations, SMEs) unable to identify real indirect costs, may apply for a Special Transitional Flat Rate of 60% of direct costsCSA limit of 7% of direct costs
20 II.16. Upper funding limits Reimbursement according to type of organisation, action, activityResearch and technological development activities:up to 50% of eligible costs;but up to 75% for Non profit public bodies, secondary and higher education establishments and research organisations, SMEsUp to75% for security research RTDDemonstration activities: up to 50%Other activities including management: up to 100%Coordination and support actions: up to 100%
21 II. 20 Guarantee FundThe Fund belongs to all beneficiaries of grant agreements under the FP7All beneficiaries contribute to the Fund to insure against financial losses of the projectThe contribution equals 5% of the Community financial contribution foreseen for each participantDeducted from the pre-financingFinancial interest generated by the Fund will serve to cover financial risksIn principle the amount contributed to the Fund will be reimbursed at the end of the actionConsequence: No bank/financial guarantee requested anymore
22 Liquidated damages and financial penalties LIQUIDATED DAMAGES for beneficiaries that received an unjustified financial contribution from the Community (overstated amounts) is liable to:Pay back the unjustified financial contributionPay, in addition, damages liquidated in proportion to the overstated amountFormula: LD = unjustified Community financial contribution x (overstated amount/total Community financial contribution claimed)FINANCIAL PENALTIES for beneficiaries guilty of false declarations or who seriously failed to meet their obligations :Between 2% and 10% of contribution received4% and 20% if repeated offence within 5 years timeframeExclusion from all Community grants (max 2 years from the decision date)
23 Amendments to the GA Upon request of Coordinator or REA Exchange of 2 letters following given templates:Reply within 45 days (rule: tacit refusal, but approval if addition/withdrawal)NEW!! Information Letters for:Universal transfer of rights & obligations– Change of legal name or details– Change of FP7 legal status (i.e. SMEs) and mistake in indirect cost calculationAdvantages:Directly from the beneficiary to REAOne letter per beneficiary not per GASignature of contact person is enough
24 Thank you for your attention ! Much more in the GA and its explanatory documents ….Thank you for your attention !