FP7 - August EUROPEAN COMMISSION – DG Research – 2007 FP7 Cooperation Rules of the Game Stefano Puppin European Commission, DG Research Energy Conversion and Distribution Systems

FP7 - August EUROPEAN COMMISSION – DG Research – 2007 What’s new in FP7  “Frontier research”, JTIs & ERANET+  Increased funding rates  Flexible funding schemes  Rationalisation of Audit Certificates  The Unique Registration Facility  The Joint Guarantee Fund  The Risk Sharing Financial Facility  Logistics and administrative tasks -> external structures  Work Programmes & Call for Proposals adopted at the same time each year

FP7 - August EUROPEAN COMMISSION – DG Research – 2007 The legislative package Framework Programme (EC) Rules for Participation (EC) 4 Specific Programmes

FP7 - August EUROPEAN COMMISSION – DG Research – 2007 Where do RP come from State Aid Framework for R&D&I Financial Regulations FP7 Needs FP7 Rules for Participation

FP7 - August EUROPEAN COMMISSION – DG Research – 2007 Rules for Participation  The Rules for Participation cover: Partner eligibility Proposal submission, evaluation and negotiation Legal & financial rules Community financial contribution Maximum funding rates Implementation and grant agreements Cost Reporting Intellectual Property Rights Procedures for appointment of external experts

FP7 - August EUROPEAN COMMISSION – DG Research – 2007 Terminology changes FP6  FP7 Contract  Grant Agreement Proposer  Applicant Instrument  Funding scheme Financial Guidelines  Financial Rules INCO  ICPC Audit Certificates  Certificate on the financial statements

FP7 - August EUROPEAN COMMISSION – DG Research – 2007 Important definitions Public body means any legal entity established as such by national law, and international organisations Research organisation means a legal entity established as a non profit organisation which carries out research or technological development as one of its main objectives Higher and secondary education establishments -Term used by Financial Regulation / Implementing Rules, includes universities, schools for applied sciences and similar SMEs mean micro, small and medium-sized enterprises within the meaning of Recommendation 2003/361/EC in the version of 6 May 2003 (OJ L 124, , p. 36) International cooperation partner countries (ICPC) = FP6 INCO countries

FP7 - August EUROPEAN COMMISSION – DG Research – 2007 Who can participate?  Type of participants Undertakings Universities Research Centres International Organisations Any Other legal entity Natural Persons  Place of Establishment Member States Associated Countries Third Countries Additional Conditions may be included in the Work Programme Normally, non IPCP third countries are not eligible for funding

FP7 - August EUROPEAN COMMISSION – DG Research – 2007 Eligibility for Funding  Legal entities from MS and AC or created under Community law (and JRC)  International European interest organisations  Legal entities established in international cooperation partner countries (ICPC) and  International organisations, third countries other than ICPC, if provided for in SP or WP; or essential for carrying out action; or provision for funding is provided for in a bilateral agreement between Community and the third country

FP7 - August EUROPEAN COMMISSION – DG Research – 2007 Third Countries  Industrialised countries (US, Japan, Canada, Australia, New Zealand, Korea)  Associated countries  International Cooperation Partner Countries (ICPC) Mediterranean partner Countries, Western Balkans, Eastern European and Central Asian countries (inc. Russia) ACP, ASIA, Latin America Emerging economies (e.g. China, India, Brazil, Russia, South Africa, Mexico)

FP7 - August EUROPEAN COMMISSION – DG Research – 2007 Minimum conditions for participation  General rule 3 independent participants from 3 different MS or AC (Associated Countries)  Specific International Cooperation Actions 2 participants MS or AC and 2 participants ICPC (International Cooperation Partner Countries)  Coordination and support actions, Training of Researchers, “Frontier” research projects 1 participant  Sole participants composed of members that meet the criteria above can participate  Work Programme or Specific Programme can add conditions on number or type of participant, place of establishment, etc

FP7 - August EUROPEAN COMMISSION – DG Research – 2007 FP7 Funding Schemes  Collaborative Projects (small to medium / large / targeted to specific groups)  Networks of Excellence  Coordination and Support Actions  Support for Frontier Research (ERC)  Research for the Benefit of Specific Groups  Support for Training and Career Development of Researchers (Marie Curie)  Joint Technology Initiatives  Joint implementation of national research programmes (Article 169)

FP7 - August EUROPEAN COMMISSION – DG Research – 2007 Collaborative Projects (CP)  Purpose: objective driven research projects, developing new knowledge, new technology, products, including scientific coordination and/or demonstration activities or common resources for research  Size & Resources: the number of participants and volume of resources should be compatible with overall objective and manageability  Indicative average duration: months  Activities: Research, Demonstration, Management of the consortium, Other activities (such as dissemination, training)

FP7 - August EUROPEAN COMMISSION – DG Research – 2007 Coordination Actions (CA)  Purpose: coordinating research activities and policies  Size & Resources: the size, scope and internal organisation of coordination actions can vary from research theme to research theme and from topic to topic  Indicative average duration: months  Activities: organisation of events - including conferences, meetings, workshops or seminars -, related studies, exchanges of personnel, exchange and dissemination of good practices, and, if necessary, the definition, organisation and management of joint or common initiatives, together with management of the action. Research, technological development or demonstration activities cannot be supported within this scheme

FP7 - August EUROPEAN COMMISSION – DG Research – 2007 Maximum funding rates  Research activities: 50% of eligible costs, except for: SMEs: 75% Non-profit public bodies: 75% Secondary and higher education establishments: 75% Research organisations (non-profit): 75%  Demonstration activities: 50% of eligible costs  “Frontier” research actions: 100%  Coordination and support actions: 100%  Training and career development of researchers actions: 100%  Other activities (management, training, etc): 100% Receipts to be taken into account

FP7 - August EUROPEAN COMMISSION – DG Research – 2007 Upper funding limits

FP7 - August EUROPEAN COMMISSION – DG Research – 2007 Forms of Grants  Three forms of grants: reimbursement of eligible costs (vast majority) lump sums financing (eg NoEs) flat-rate financing, including scale of unit costs (eg. indirect costs, Marie Curie).  Different forms of grants may be used in combination.  Lump sums and flat rates will not require justification of eligible costs  Gradual introduction of lump sums and flat rates  FR fundamental principle: a grant cannot generate a profit

FP7 - August EUROPEAN COMMISSION – DG Research – 2007 Eligible Costs Eligible actual* during duration of project in accordance with its usual accounting and management principles recorded in the accounts of beneficiary used for the sole purpose of achieving the objectives of the project (in FP6: “necessary for the project”) Non-eligible (identifiable indirect taxes including VAT…) - same as in FP6

FP7 - August EUROPEAN COMMISSION – DG Research – 2007 Cost Reporting Modes  Cost reporting models (FC, AC, etc) have been eliminated Participants charge direct (and indirect) costs For indirect costs, a flat rate is an option Average personnel costs may be used if they do not differ significantly from actual costs  Audit certificates continued, but rationalised Now called Certificate on the financial statements No Certificate required for participants receiving <= €375,000 For projects of 2 years, if required, maximum one Certificate per partner at the end of the project

FP7 - August EUROPEAN COMMISSION – DG Research – 2007 Indirect costs  Eligible costs = direct costs + indirect costs  Preferred solution: real indirect costs.  Flat rate always an option. 20%  For non-profit public-bodies, universities, research centres and SMEs. Grant awarded: before 1st January 2010  60% after 1st January 2010  tbd but > 40%  Coordination & Support Actions  7%

FP7 - August EUROPEAN COMMISSION – DG Research – 2007 Certification Certificate on financial statements (Form D)  Mandatory when requested funding reaches 375,000 Euro (except for project of 2 years or less - submitted at the end) except  If above the threshold, mandatory for every beneficiary and every period, except if a certification on the methodology (Form E) is provided

FP7 - August EUROPEAN COMMISSION – DG Research – 2007 Grant Agreement signature procedure  Signature by Commission & coordinator only  Accession of beneficiaries via “Form A”  Later accession of new beneficiaries via “Form B”  Entry into force upon signature by coordinator & Commission

FP7 - August EUROPEAN COMMISSION – DG Research – 2007 Guarantee fund mechanism ● Replaces FP6 concept of “Collective financial responsibility” ● Participants contribute 5% of their EC grant to the fund to insure against losses of a defaulting partner ● Does not apply to: ● public bodies, secondary and higher education and entities guaranteed by MS or AC ● participants in certain types of funding schemes (training, frontier research, actions for benefit of specific groups except SMEs) Consequence -> Ex-ante financial viability check only for coordinators and participants receiving more than € 500,000

FP7 - August EUROPEAN COMMISSION – DG Research – 2007 Payment modalities pre-financing  Only one pre-financing for the whole duration – up to 150% of the EC contribution of the average funding per period (for projects with more than 2 periods) – to be agreed during negotiations  Interim payments  Interim payments based on financial statements (EC contribution = amounts justified & accepted * funding rate)  Retention (at least 10%)  Final payment

FP7 - August EUROPEAN COMMISSION – DG Research – 2007 Reporting  Periodic reports to be submitted by coordinator 60 days after end of period: - progress of the work - use of the resources and - Financial Statement (Form C)  Final reports to be submitted by coordinator 60 days after end of project: - publishable summary report, conclusions and socioeconomic impact - covering wider societal implications and a plan on use and dissemination of results

FP7 - August EUROPEAN COMMISSION – DG Research – 2007 Consortium Agreement  Compulsory, unless explicitly excluded in the text of the call.  Commission will publish Guidelines on the Consortium Agreement  Consortium Agreement must cover: Internal organisation of the consortium The distribution of EC financial contribution Specific rules of dissemination and IPR Rules for settlements of dispute Liability, indemnification and confidentiality arrangements

FP7 - August EUROPEAN COMMISSION – DG Research – 2007 Call Proposal EvaluationNegotiation Implementation Exploitation / Dissemination The Project Life Cycle

FP7 - August EUROPEAN COMMISSION – DG Research – 2007 Proposals  Call for proposals  Evaluation criteria established in RP and WP.  1 Specific Programme  1 Annual Work Programme  1 publication date of the calls.  Work Programme will specify: Topics with associated Type of funding scheme (Collaborative projects, Networks of Excellence, Coordination and support actions) Indicative budgets Type of evaluation procedure (one / two stage / hearings) Particular requirements (criteria, minimum conditions, etc)  EPSS Electronic Submission Only

FP7 - August EUROPEAN COMMISSION – DG Research – 2007 Evaluation. General Principles Same principles than in FP6,  Quality, Transparency, Impartiality, Equal treatment  peer review - independent evaluators – [hearings] but:  More use of two-stage submission procedure  More use of remote evaluation  New set of evaluation criteria

FP7 - August EUROPEAN COMMISSION – DG Research – 2007 The experts  The Commission draws on a wide pool of evaluators applications from individuals; and from institutions Applications via CORDIS  Commission invites individuals, call-by-call  Expertise, and experience are paramount Geography, gender and “rotation” also considered  Typically, an individual will review about 10 proposals “remotely”….  …then spend a few days in Brussels for consensus stage  Some will participate in “hearings” with the consortia  Experts sign confidentiality and conflict of interest declaration

FP7 - August EUROPEAN COMMISSION – DG Research – 2007 The criteria  Criteria adapted to each funding scheme specified in the work programme  Divided into three main criteria: S&T Quality (relevant to the topic of the call)  Concept, objective, work-plan Implementation  Individual participants and consortium as a whole  Allocation of resources Impact  Contribution to expected impacts listed in work programme  Plans for dissemination/exploitation New for FP7

FP7 - August EUROPEAN COMMISSION – DG Research – 2007 Evaluation Process  Process Eligibility checks (time of receipt, completeness, partnership) Individual reading and marking (3-5 experts) Consensus discussion and final marking Evaluation Summary Report (Panel + Hearings) Commission decision on ranking (Selected, Reserve, Rejected) Start of negotiation for the selected proposals

FP7 - August EUROPEAN COMMISSION – DG Research – 2007 For each proposal: Proposal X copy 1 Proposal X copy 2 Proposal X copy 3 IAR expert 1 IAR expert 2 IAR expert 3 Consensus meeting CR 3 experts Note: There may be more than 3 evaluators IAR=Individual assessment report CR=Consensus Report May be “remote”

Proposal Individual evaluation Consensus Panel review Consultation of programme committee (if required) Commission funding and/or rejection decision with hearing (optional) Thresholds Eligibility Negotiation Commission ranking Commission rejection decision Ethical Review (if needed) Security Scrutiny (if needed) Applicants informed of results of expert evaluation* invitation to submit second-stage proposal, when applicable Evaluation in FP7 Applicants informed of Commission decision

FP7 - August EUROPEAN COMMISSION – DG Research – 2007  Built on the basis of the individual assessments of all the evaluators  Usually involves a discussion  Moderated by a commission staff-member  One expert acts as rapporteur  Agreement on consensus marks and comments for each of the criteria Consensus

FP7 - August EUROPEAN COMMISSION – DG Research – 2007 Panel review  Optional Hearings with proposers may be convened Questions to the invited proposal coordinators Small number of proposal representatives  Panel Meeting Compare consensus reports Examines proposals with same consensus score (if needed) Final marks and comments for each proposal Suggestions on order of priority, clustering, amendments, etc.

FP7 - August EUROPEAN COMMISSION – DG Research – 2007 Commission Follow-up  Evaluation summary reports sent to applicants  Draw up final ranked lists  Information to the Programme Committee  Commission decisions on rejected proposals  Formal consultation of Programme Committee (when required)  Contract negotiation  Proposals selected for funding New for FP7