Rules for participation and
financial issues
Oskar Otsus
October 21 2013
Santo Domingo
The forms of EC contribution of costs:
Reimbursement of eligible costs – the statement of actual eligible costs, made
during the project
Flat rate (including scale of unit costs) –
Flat rate can be:
1) scale of unit costs (for example one researcher in Marie Curie actions)
2) indirect costs / direct costs x 100%
Lump-sum – fixed amount
There is a possibility to combine the funding schemes within the project. For example: travel
costs as lump sum, research activities as reimbursement of costs
For International Cooperation Partner Countries (ICPC) the Commission proposes simplified
method –flat rate lump-sum amounts. They have been defined on the basis of World Bank data
on cross national income levels in different countries. The partners from ICPC can still
request the standard reimbursement of eligible costs.
Reimbursement of eligible costs
Cost
Eligible
Direct
Non-eligible
Indirect
Non-eligible costs
The following costs are considered as non-eligible:
WILL BECOME ELIGIBLE!
Identifiable indirect taxes including value added tax,
Duties,
Interest owed,
Provisions for possible future losses or charges,
Exchange losses, cost related to return on capital,
Costs declared or incurred, or reimbursed in respect of another
Community project
Debt and debt service charges, excessive or reckless expenditure
Eligible costs of the project
In order to be considered eligible the costs must be:
(FP7 Grant Agreement – Annex II.14.):




Actual
Incurred by the beneficiary
Incurred during the duration of the project
Determined in accordance with the usual accounting and
management principles and practices of the beneficiary
 Used for the sole purpose of achieving the objectives of the
project
 Recorded in the accounts of the beneficiary
Direct and Indirect costs
Direct costs:
• Personnel costs
• Consumables
• Travel costs
• Durable equipment (depreciation)
• Subcontracting
• Other
Indirect costs (overheads):
Everything that is neccesary for the project, appears in relation with the
project but is not directly linked only to the project. Like electricity,
phones, administrative staff, etc.
Funding rates
Instead of different funding rates for R&D activities, demonstration
activities, coordination and support actions, management activities and
other activities in HORIZON 2020 there will be two funding rates:
1) Research projects – 100 % funding
2) Innovation activities – 70 % funding
In addition to that: 25 % for indirect costs
How to calculate costs?
A university participates in a Horizon 2020 project:
It is an innovation activity with 70 % funding rate:
Costs of the university:
Direct costs
100 000.- EUR
Indirect costs (25%)
25 000.- EUR
------------------------------------------------Total costs
125 000.- EUR
EC contribution: (125 000 x 70%)
87 500.- EUR
Example of budget – FP7
Example of budget –
Horizon 2020
Personnel costs
You must know the value of your person month
Person month = salary + social charges + regular bonuses
Example:
Your person month rate is 2500 €
Researcher works 6 month for the project (50% of his time)
Personnel costs = 2 500 * 6/2 = 7 500
In FP7 you have to keep timesheets, unless you have a better system of proving
your dedicated working time. Timesheets must be filled in with one day accuracy.
Standard productive hours = 1720 hours/per year = 143,3 hours/per month
Lump-sum for ICPC countries
ICPC categories and EC funding for 1 researcher/1 year work in project:
1.Low-income – Kyrgyz Republic, Tajikistan, Uzbekistan – 8000 EUR
2.Lower-Middle income – Armenia, Dominican Republic, Belarus, Georgia,
Kazakhstan, Moldova, Turkmenistan, Ukraine – 9800 EUR
3.Upper-Middle income – Russia, Argentina – 20 700 EUR
Example: from Dominican university 3 researchers work in a 3 year project
for 3 years and 1 researcher works 0,5 years
The costs will be: 3 x 3 x 9800 + 0,5 x 9800 = 93 100 EUR
The lump-sum funding covers all the costs of beneficiary!
Time contributed to the project
Timesheets are mandatory in FP7 projects, unless you have a better time
recording system.
Minimum recuirements for timesheets:
• Beneficiary name
• Name and signature of the employee
• Project name
• Number of hours worked (daily)
• Name and signature of the superior
• Timesheets must comply with sick leaves, holidays and travels
Additional recommendations for timesheets
• Hours devided by work packages
• Explanation of work done
Payment modalities
Pre Financing
• There is only one payment of pre-financing during the project.
•
For projects with duration of more than two reporting periods, it should be
equivalent to 160% of the average EC contribution per period.
•
For projects with one or two reporting periods, the amount of the prefinancing should be between 60-80% of the total EC contribution.
•
The pre-financing payment will be received by the coordinator within 45 days
of the entry into force of the grant agreement and distributed to the other
beneficiaries
Interim Payments
The total amount of interim payments + pre-financing will be limited to 90% of
the maximum EC contribution.
Final Payment
After the final report has been approved
Guarantee Fund
5% of EC contribution
Funding during the project
3 year project receiving 3.000.000 € in EC contribution:
1. First year
Pre-financing :
Guarantee fund contribution:
Advance to consortium:
2. Second year
1st interim payment to consortium:
3. Third year
2nd interim payment to consortium:
4. After the project
Final Payment to consortium:
+ Reimbursement from Guarantee Fund
Total Final payment:
1.600.000 €
-150.000 €
1.450.000 €
1.000.000 €
100.000 €
300.000 €
150.000 €
450.000 €
Funding during the project
What did we talk about?
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Eligibility criteria
Direct and indirect costs
Personnel costs
Timesheets
Payment modalities
Oskar Otsus
Estonian Research Council
tel: +372 7 317 350
e-mail: [email protected]