TN1302: BESTPRAC
Joint Meeting of WG1/WG2/WG3, Sofia, Bulgaria March 10-11, 2016
Cost BESTPRAC
Case study: third party in H2020
projects
Fifth Meeting of the WG 2 Finance COST Targeted Network TN1302: BESTPRAC
Author
Chelo Morán – Universidad Carlos III de Madrid
TN1302: BESTPRAC
Joint Meeting of WG1/WG2/WG3, Sofia, Bulgaria March 10-11, 2016
OVERVIEW
�What is a third party in Horizon 2020?
�Types of third parties
�Actual examples: NOTRE and MOVE projects
TN1302: BESTPRAC
Joint Meeting of WG1/WG2/WG3, Sofia, Bulgaria March 10-11, 2016
THIRD PARTIES INVOLVED IN THE PROJECT
�Third parties providing in-kind contributions
- Against payment (art. 11 AMGA)
- Free of charge (art. 12 AMGA)
They do not implement tasks in the project. Only provide
resources.
�Contractors providing good or services (art. 10 AMGA)
�Subcontractors (art. 13 AMGA)
�Linked third parties (art. 14 AMGA)
They implement specific action tasks
TN1302: BESTPRAC
Joint Meeting of WG1/WG2/WG3, Sofia, Bulgaria March 10-11, 2016
Th
ird
pa
rtie
s
In-kind contributions
Free of charge (art. 12
AMGA)
Against payment (art.
11 AMGA)
Implementation of
action tasks
Subcontractors (art. 13)
Other goods and
services (art. 10 AMGA)
Linked third parties (art.
14 AMGA)
TN1302: BESTPRAC
Joint Meeting of WG1/WG2/WG3, Sofia, Bulgaria March 10-11, 2016
SUBCONTRACTING (art. 13)
� Included in annex I. Example: building a prototype, survey.
� Form C: other direct cost - subcontracting . Not considered to
calculate overheads.
� Responsibility of tasks for the beneficiary.
� IPR: for the beneficiary.
� Elegibility: best price-quality offer or lowest price.
� Beneficiary receives and invoice to pay for an order.
TN1302: BESTPRAC
Joint Meeting of WG1/WG2/WG3, Sofia, Bulgaria March 10-11, 2016
COST OF SERVICES (art.10)
� Not included in annex I. Example: consulting costs, cost of
CFS, translation costs.
� Form C: other direct cost . Considered to calculate
overheads.
� Responsibility of tasks for the beneficiary.
� IPR: for the beneficiary.
� Elegibility: best price-quality offer or lowest price.
TN1302: BESTPRAC
Joint Meeting of WG1/WG2/WG3, Sofia, Bulgaria March 10-11, 2016
LINKED THIRD PARTIES (art. 14)
What is a linked third party?
� Only affiliated entities and entities with a legal link to a
beneficiary
� Legal link is an stablished relationship which is:
- Not specifically created for the action (duration must go
beyond the action duration).
- Legal relationship: legal structure (eg. Members of an
association) or agreement (eg. Collaboration agreement
for research).
TN1302: BESTPRAC
Joint Meeting of WG1/WG2/WG3, Sofia, Bulgaria March 10-11, 2016
LINKED THIRD PARTIES (art. 14)
� Tasks implemented by them must be included in Annex I.
� Elegibility conditions: the same as for beneficiaries .
� Form C: they declare their own costs in their own form C
� Responsibility of tasks for the beneficiary.
� IPR: for the beneficiary.
TN1302: BESTPRAC
Joint Meeting of WG1/WG2/WG3, Sofia, Bulgaria March 10-11, 2016
THIRD PARTIES PROVIDING IN-KIND CONTRIBUTIONS
In-kind contributions may be provided:
� free of charge (art. 12)
� against payment (art. 11)
Example: seconded personnel
THEY ARE NOT INVOLVED IN THE PROJECT
TN1302: BESTPRAC
Joint Meeting of WG1/WG2/WG3, Sofia, Bulgaria March 10-11, 2016
THIRD PARTIES PROVIDING IN-KIND CONTRIBUTIONS
AGAINST PAYMENT (art. 11)
In-kind contributions and estimated costs must be set
out in Annex I
Only actual costs of the third party are eligible
TN1302: BESTPRAC
Joint Meeting of WG1/WG2/WG3, Sofia, Bulgaria March 10-11, 2016
THIRD PARTIES PROVIDING IN-KIND CONTRIBUTIONS FREE OF
CHARGE (art. 12)
� Costs may be declared as eligible costs although there is
no cost incurred by the beneficiary.
� The in-kind contribution have to be declared as “receipts
of the project”.
� Elegibility conditions: estimated costs must be included in
Annex I of the GA and costs must be recorded in the
accounts of the third party.
TN1302: BESTPRAC
Joint Meeting of WG1/WG2/WG3, Sofia, Bulgaria March 10-11, 2016
INDIRECT COSTS OF IN-KIND CONTRIBUTIONS
Example: seconded staff
- If staff is in the premises of the beneficiary: direct costs will be
included by the beneficiary under “Personnel costs” category +
25% of “Overheads” as indirect costs.
- If staff is in the premises of the third party: direct personnel
costs + 25% of “overheads” will be included by the beneficiary
under “Personnel costs”
TN1302: BESTPRAC
Joint Meeting of WG1/WG2/WG3, Sofia, Bulgaria March 10-11, 2016
THIRD PARTIES PROVIDING IN-KIND CONTRIBUTIONS
Staff on the
premises of the
beneficiary
Staff on the
premises of the
third party
Personnel costs 40.000 EUR 50.000 EUR
Overheads 10.000 EUR 0 EUR
TOTAL 50.000 EUR 50.000 EUR
TN1302: BESTPRAC
Joint Meeting of WG1/WG2/WG3, Sofia, Bulgaria March 10-11, 2016
Annotated Model Grant Agreement
TN1302: BESTPRAC
Joint Meeting of WG1/WG2/WG3, Sofia, Bulgaria March 10-11, 2016
ACTUAL Examples: UC3M as LINKED THIRD PARTY
NOTRE Project
Call: H2020-TWINN-2015 – Type of action: CSA – 5 partners
Title: “Network for sOcial cumpuTing Research – NOTRE” – GA 692058
Information related to third parties included in the proposal:
TN1302: BESTPRAC
Joint Meeting of WG1/WG2/WG3, Sofia, Bulgaria March 10-11, 2016
Estimated UC3M budget included in “other costs” of the
beneficiary at the proposal stage.
TN1302: BESTPRAC
Joint Meeting of WG1/WG2/WG3, Sofia, Bulgaria March 10-11, 2016
Participant portal before signature of the GA:
TN1302: BESTPRAC
Joint Meeting of WG1/WG2/WG3, Sofia, Bulgaria March 10-11, 2016
NOTRE Project
- UC3M as third party does not have project role in the PP – we do
not sign the GA BUT we see specific information about UC3M
TN1302: BESTPRAC
Joint Meeting of WG1/WG2/WG3, Sofia, Bulgaria March 10-11, 2016
UC3M as THIRD PARTY PROVIDING IN-KIND CONTRIBUTION
AGAINST PAYMENT
MOVE Project
Call: H2020-YOUNG-SOCIETY-2014-RTD – Type of action: RIA – 9 partners
Title: “Mapping mobility-pathways, institutions and structural effects of youth
mobility in Europe – NOTRE” – GA 692058
� Information related to third parties not included in the proposal
UC3M acts as third party with in-kind contribution against payment (art. 11)
- personnel. Tasks will be developed on UC3M premises.
- Included in annex I but as part of beneficiary’s description.
- Internal agreement between UC3M and the beneficiary (TO HAVE A LINK
BETWEEN BOTH INSTITUTIONS)
TN1302: BESTPRAC
Joint Meeting of WG1/WG2/WG3, Sofia, Bulgaria March 10-11, 2016
Internal agreement between UC3M and the beneficiary
including:
� Reference to the European project (MOVE).
� Specific tasks to be developed by UC3M in the project.
� Name and number of hours of personnel involved.
� Actual cost for UC3M.
� Scientific supervisor of UC3M’s tasks on behalf of the
beneficiary.
� Confidentiality and IPR clauses.
TN1302: BESTPRAC
Joint Meeting of WG1/WG2/WG3, Sofia, Bulgaria March 10-11, 2016
Please enter the costs for in-kind contributions that are made by third parties against
payment or free of charge and that are not used on the beneficiary's premises. Use one row
for each beneficiary.
Include costs of linked third parties, if any, in the beneficiary's budget. (PP information)
TN1302: BESTPRAC
Joint Meeting of WG1/WG2/WG3, Sofia, Bulgaria March 10-11, 2016
These costs (E) are already included in the 'direct personnel costs' (A) and 'other direct
costs' (B). They need to be declared specifically in this column so that they can be
subtracted from the sum of direct personnel costs (A) and direct other costs (B) before
the indirect costs (F) are calculated.
UC3M example:
- Personnel costs = 2.660 EUR
- Overheads = 665 EUR
TOTAL = 3.325 EUR
To be included in the beneficiary’s budget because tasks are
performed on UC3M premises. Not in “E column”??
TN1302: BESTPRAC
Joint Meeting of WG1/WG2/WG3, Sofia, Bulgaria March 10-11, 2016
Actual UC3M situation:
UC3M does not appear in the GA budget (as in NOTRE project).
Ammendment in process to include UC3M as third party in the
GA.
- Is this possible?
- Do we see some information in the Participant Portal after the
signature of the amendment?