DG Research and Innovation Model Grant Agreement DG Research and Innovation

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

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

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

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

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

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

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

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

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)

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

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

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

5. Personnel Costs - II Personnel costs Acceptance of Additional remuneration for non-profit organisations of up to 8000 euros/year/person Less requirements for time records …and more in the Horizon 2020 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

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 ≥ €325 000 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

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".

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)

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;

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

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

Thank you very much for your attention! Find out more: www.ec.europa/research/horizon2020 21