FP7 basic financial issues How much money do I get from Brussels? Kim Kruisinga, Agentschap NL

Complex rules - simple principles FAQ: – How much money do I get from Brussels? The rules are complex, but the principles are simple Short introduction to the principles Exercise to find out more…

What do you think? You are involved in an FP7 project and you have a budget of € How much money will the EU give you?

Lesson 1 - be prepared Involve your financial staff from the very beginning…

Lesson 2 - basic rules The grant is only for actual costs made in the project You always have to pay part of it yourself You can not make a profit from an FP7 grant Not all costs are eligible

Actual costs during the project Nothing before the start-date of the project Nothing after the end-date of the project Costs should be verifiably registered in the books Only for activities described in the contract

You always pay part of it yourself Reimbursement “up to” 100% Some non-eligible costs will be paid by you (e.g. VAT)

You can not make a profit from an FP7 grant No commercial rates allowed No stacking of funding beyond the total budget Receipts to project activities can lead to smaller EU contribution Depreciation of equipment taken into account You are allowed to make money out of the project results!!!

Which costs are eligible? Direct costs – directly related to project activities – Personnel – Travel – Consumables – Equipment – Subcontracting

Which costs are eligible? Indirect costs – overheads – Secretariat – Administration – Housing – Office supplies

Indirect costs Real indirect costs – You can calculate your overheads accurately Flat rate percentage for indirect costs – Standard: you get a 20% flat rate over your direct costs – Special transition rate: you get a 60% flat rate over direct costs

Non-eligible costs Identifiable indirect taxes, incl. VAT Interest owed Provisions for future losses or charges Exchange losses Costs declared on any other EC project Debt and debt service charges Excessive or reckless expenditure!

Reimbursement rates Based on activities in the project Based on type of organisation Based on type of project

Reimbursement overview StandardSMEs, research institutes, public bodies… Research 50 %75% Demonstration 50% Other (training, dissemination etc…) 100% Management 100%

So how does it work? Example: research activities Eligible costs € Overheads (60%)€ Total€ EU grant 75% € (for research activities)

Lesson 3 - money matters The budget is important, so make it a priority…

Further information Excellent official document full of examples: – Guide to Financial Issues relating to FP7 Indirect Actions ftp://ftp.cordis.europa.eu/pub/fp7/docs/financialguide_en.pdf Contact your legal-financial NCP colleague!!

Let’s see if you got the picture Example from an Italian SME Involved in a research project Two members of research staff active What is their total budget? How much do they get from the EU?

Remember… Involve financial staff immediately Budget has priority as soon as someone becomes involved The grant is only for actual costs made in the project You always have to pay part of it yourself You can not make a profit from an FP7 grant Not all costs are eligible