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FP7 Rules for Participation and Grant Agreement 25 th September 2008

FP7 Rules for Participation and Grant Agreement 25 th September 2008. Anthea Frendo National Contact Point for FP7. FP6-FP7 Terminology. “Contract” becomes “Grant Agreement” “Contractor” becomes “Beneficiary” “Instruments” become “Funding Schemes”

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FP7 Rules for Participation and Grant Agreement 25 th September 2008

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  1. FP7 Rules for Participation and Grant Agreement 25th September 2008 Anthea Frendo National Contact Point for FP7

  2. FP6-FP7 Terminology • “Contract” becomes “Grant Agreement” • “Contractor” becomes “Beneficiary” • “Instruments” become “Funding Schemes” • “Audit Certificate” becomes “Certificate on Financial Statements” • “Cost Models” no longer exist: “actual direct/indirect costs” • NEW: “Certificate on methodology”

  3. FP7 GA: Structure • Core Part: Grant Agreement parameters • Annex I: Description of Work • Annex II: General Conditions • Annex III: Specific provisions for funding schemes • Annex IV, V & VI: Forms A, B and C • Annex VII: Form D: Certificate on financial statements & Form E: Certificate on the methodology (NEW) Consortium Agreement mandatory (except if excluded by the Call) before start date of project

  4. Who can participate? • Any natural person or legal entity established in a: • Member State (MS) or • Associated Country (AC), or • Candidate Country (Croatia, Turkey, FYROM) • International organisations and participants from 3rd countries can participate only if in addition to the minima established by the call for proposals • Minimum number: as a general rule at least 3 independent participants from 3 different MS or AC

  5. Forms of Grants • Reimbursement of direct and indirect eligible costs according to: • Legal status of the organisation • Funding scheme • Type of activity • Lump sum amounts, in particular as option for participants from ICPC Principles of co-financing and non-profit

  6. 1. Legal Status • Legal status, name, address and ICM of beneficiary recorded in FP7 database (PDM-URF) • Analysed and validated by the central validation team: • Allocation of a Participant Identification Code (PIC) for validated participants • New: Identification of a Legal Entity Appointed Representative (LEAR) after validation, who will be in contact with the CVT for updating legal and financial data held by the Commission

  7. 2. Funding Schemes • Collaborative Projects: at least 3 independent legal entities • Coordinating and Support Actions (Coordinating): At least 3 independent legal entities • Coordinating and Support Actions (Supporting): At least 1 independent legal entity • Specific International Cooperation Actions: At least 4 partners (2 from MS/AC and 2 from ICPs)

  8. 3. Type of Activity • RTD Activities • Up to 50% of eligible costs • Up to 75% for non-profit public bodies, secondary and higher education establishments, research organisations and SMEs • Demonstration activities: up to 50% • Management of the consortium: up to 100% • Other activities: up to 100%

  9. Upper funding limits

  10. Eligible Costs • Actual • Incurred by the beneficiary during duration of the project • In accordance with the usual accounting and management principles of the beneficiary • Recorded in the accounts of the beneficiary • Used for the sole purpose of achieving the objectives of the project

  11. Non-Eligible Costs • Identifiable indirect taxes including VAT • Tolls, bank-debts, exchange rate differences • Costs in other EU-projects • Overpriced or economically unjustified costs

  12. Direct Costs • All beneficiaries report all their real direct costs • Personnel Costs: total remuneration of the actual hours worked on the project by the permanent or temporary employees directly hired by the beneficiary. Working time to be charged must be recorded throughout the duration of the project by any reasonable means (e.g. timesheets) on a daily, weekly or monthly basis. The time records have to be authorised by the project manager or superior

  13. Typical Direct Costs • Personnel Costs/Staff Salaries • Travel and subsistence • Durable Equipment • Consumables • Subcontracting costs

  14. Indirect Costs (Overheads) • Actual Indirect Costs • Flat Rate • Special case of CSA

  15. 1. Actual Indirect Costs • Real Indirect Costs • Simplified method: • A participant may use a simplified method to calculate its indirect costs at the level of the legal entity: • If the organisation does not have an accounting system with detailed cost allocation • If in accordance with its usual management and accounting principles • Based on actual costs of the last closed accounting year

  16. 2. Flat Rate • Standard Flat Rate of 20% • Special transitional* flat rate of 60% only applicable for funding schemes with RTD activities for: • Non-profit Public Bodies • Secondary and Higher Education Establishments • Research Organisations • SMEs * Until end 2009 Calculation: Flat rate * Direct Costs Excluding Subcontracting

  17. 3. Special case of CSA • The reimbursement of indirect costs cannot exceed a maximum of 7% of the direct eligible costs • This 7% is not a flat rate but a maximum reimbursement rate

  18. Example of estimation of costs & EC Contribution University participating in a Collaborative Project using the 60% flat rate for indirect costs Direct Costs RTD activities 100,000 Demo activities 50,000 Other activities 10,000 Total 160,000

  19. Example of estimation of costs & EC Contribution + Indirect Costs (60%) RTD activities (100,000+60,000) 160,000 Demo activities (50,000+30,000) 80,000 Other activities (10,000+6,000) 16,000 Total 256,000

  20. Example of estimation of costs & EC Contribution RTD (160,000 * 75%) = 120,000 Demo (80,000 * 50%) = 40,000 Management (16,000 * 100%) = 16,000 Total EC Contribution = 176,000

  21. Certificate on financial statements (Audit) • Mandatory for a beneficiary when its cumulative EC contribution exceeds € 375,000 • When the EC contribution is less than € 375,000 no CFS is required not even at the end of the project • For projects of 2 years or less, no intermediate CFS – obligation of submission only at the end and if contribution ≥ € 375,000 and covering all eligible costs

  22. Example Example of project of a duration of more than 2 years:

  23. Payment Modalities • Pre-financing (45 days after entry into force of GA = date of signature by EC) • Interim payments (based on financial statements) • Final payment

  24. Example …1/2 • Project running for 36 months with 2 reporting periods • P1 = Months 1-18 • P2 = Months 19-36 • Maximum EC contribution: EUR 3,000,000 • 90% rule • Pre-financing + Interim payments ≤ 90% = € 2,700,000

  25. Example …2/2 • Pre-financing (60%) • € 1,800,000 – €150,000 (5% to Guarantee Fund) = €1,650,000 • Interim Payment • € 1,000,000 accepted but payment € 900,000 (90% rule) • Final Payment (left over) • € 2,550,000 already paid: € 150,000 (from Guarantee Fund + € 300,000 (from 10% retention)

  26. Further Information • FP7 Documents and Guidance http://cordis.europa.eu/fp7/find-doc_en.html • Specific Programmes • Financial Guidelines • Model Grant Agreement • Guide to IPR issues • Negotiation Guidelines • …

  27. Thank you for your attention anthea.frendo@gov.mt

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