1. Participation and dissemination Rules and Contracts FP6

2. PRESENTATION OUTLINE è Legal Framework & General Principles è Participation è Contract Structure è Collective Approach l signature and entry into force l collective Responsibility l consortium Agreement è Provisions of general conditions, special reference to: l financial provisions l controls and sanctions

3. Legal Framework EC TREATY FRAMEWORK PROGRAMME SPECIFIC PROGRAMMES PARTICIPATION AND DISSEMINATION RULES CONTRACTS Other relevant EC Regulations FINANCIAL REGULATION INTERNATIONAL AGREEMENTS WORK PROGRAMMES GUIDELINES ON EVALUATION AND SELECTION PROCEDURES

4. General Principles Reflect requirements of the Legal Framework Simplification No different categories of contractors Reduction of the number of contracts Collective approach Greater flexibility Greater autonomy for participants

5. Minimum number of participants Can be increased by work-programmes At least 3 independent legal entities established in 3 different Member States or Associated States, of which at least 2 in Member States or Associated Candidate Countries 1 single legal entity for specific support actions New Legal entities established in the Associated Candidate Countries and International European Interest Organisations = legal entities from Member States

6. Entities established in third countries and International organisations INTEGRATING PART Participation open for all over the minimum number Funding FOR INCO COUNTRIES like Member States with a budgetary limit FOR OTHERS if essential to carry out the project or if foreseen by the Work Programme or the call

7. Entities established in other countries and International organisations STRUCTURING & REINFORCING PARTS Participation COUNTRIES WITH CO-OPERATION AGREEMENT under the Agreement’s conditions COUNTRIES WITHOUT CO-OPERATION AGREEMENT if necessary to carry out the project or if foreseen by the Work Programme or the call Funding if essential to carry out the project or if foressen by the Work Programme or the call

8. Contract Structure 4 Core contract (standard with specifics of project) 4 Annex I (technical tasks - the “project”) 4 Annex II - general conditions (standard, applicable to every instrument) 4 Annex III - instrument specific provisions (variable per instrument)

9. Signature and entry into force 4Contractual link of all contractors with the Commission 4 - New Contract enters into force upon signature of coordinator and Commission 4 Coordinator must ensure other contractors sign within delays 4 Distribution of advance possible after minimum requirements met 4 Project begins in the date established in the contract (this can be before the contract enters into force but usually later)

10. Changes in consortium membership – New at the request of the coordinator, deemed to act on behalf of the consortium – New with implicit agreement of the Commission within 6 weeks – New in IP/NoE, enlargement of the consortium to new participants and new activities may be foreseen. This enlargement follows then a call launched by the consortium with evaluation of proposals by external experts

11. New Collective responsibility Technical Responsibility Financial Responsibility Used as a last resort Limited in proportion to the participant’s share to the project, up to the total amount they are entitled to receive International Organisations, public bodies or entities guaranteed by MS/AS solely responsible for their own debts Exceptions for specific actions for SME’s and fellowships, and when duly justified for specific support actions

12. Consortium agreement Regulates internal organisation and management of consortium New Compulsory unless otherwise mentioned in the call for proposal Between contractors - NOT signed nor approved by the Commission After or (preferably) before signing the contract ( some decisions must be made by the participants before signature of contract, e.g. exclusion of pre-existing know-how) Non binding guidelines provided by the Commission

13. Financial Provisions Grant for integration Grant to the budget Flat-rate Networks of excellence Integrated Projects Specific targeted research projects Specific research projects for SMEs Integrated initiatives relating to infrastructure Actions to promote human resources & mobility Coordination actions Specific support actions

14. Financial Provisions Grant for integration (NoE) New mechanism Calculation basis: number of researchers to be integrated not as a %age of the budget for the JPA Payment basis: completion of the JPA + costs certificates mentioning that the costs incurred are greater than the grant itself

15. Financial Provisions Grant to the budget Calculation basis: %age of the preliminary budget of the execution plan Payment basis: covers a share of the expenditure incurred, necessary for the execution of the indirect action %age depends on:  type of activity  participant involved (cost models)

16. Financial Provisions Cost Models and maximum reimbursement rates 3 FC: 50% of actual direct and indirect costs For Specific Support Actions and Coordination Actions the Indirect cost are limited to % of total actual direct costs, except subcontracting New FCF : 50% of actual direct costs + flat rate for indirect costs (% of total actual direct costs, except subcontracting) ACF: 100% of actual additional direct costs + flat rate for indirect costs (% of total actual direct costs, except subcontracting )

17. Financial Provisions Type of activity Research and technological development (including innovation related activity) - 50% (100% AC) Demonstration - 35% (100% AC) Training - 100% (100% AC) New Consortium Management - reimbursed up to 100% within the limit of 7% of community contribution Other activities specific to an instrument - 100% (100% AC)

18. Financial Provisions Identification of costs New No cost categories but list of ineligible costs To be eligible costs must be : actual, economic and necessary for the project incurred during the duration of the project recorded in the accounts follow contractors own accounting rules Not give rise to profit Audit certificates by external auditor (For public bodies - competent public auditor)

19. Controls and Audits Objective to reinforce ex-post controls To simplify and streamline ex-ante controls As a counterbalance to increased autonomy for participants

20. Controls and Audits 4Reports Periodic activity and financial reports Supplementary reports if foreseen (in Annex I or III) 4 Audit certificates 4 New monitoring by Commission with external experts 4 Other reviews 4 Scientific, technological, and financial audits 4 Ethical audits

21. Sanctions Financial irregularity: exclusion criterion Recovery decisions (art. 256 EC Treaty) Other sanctions in contracts (overclaims)

22. Thank You For more information http://europa.eu.int/comm/research/fp6/workin g-groups/model-contract/index_en.html