Financials Seventh Framework

Program

Warsaw, 12th December 2007 Willem Wolters & Peter Jongebloed, Wageningen International Helpdesk

Contents

Seventh Framework Program (FP7)

Financials in general

Financials of Cooperation

FP7, from AC towards FC

Only one costs system for FP7

Additional Costs system is dead

Full Costs system incl. transition periods

FP7, structure (four pillars)

Cooperation (follow-up FP6), 32.4 billion €

Ideas (basic/frontier research), 7.5 billion €

People (Marie Curie fellowships), 4.75 billon €

Capacities (target groups), 4.1 billion €

See CORDIS website: http://cordis.europa.eu/fp7/home_en.html

Cooperation – Collaborative researchCooperation – Collaborative research

People – Human PotentialPeople – Human Potential

Ideas – Frontier ResearchIdeas – Frontier Research

Capacities – Research CapacityCapacities – Research Capacity

FP7, Specific Programmes

FP7, pillar Cooperation: ten themes

Health ( 6.1 billion €) Food, agriculture and biotechnology ( 1.9 billion €) Information & communication technologies ( 9.1

billion €) Nanosciences, nanotechnologies, materials & new

production technologies ( 3.5 billion €) Energy ( 2.3 billion €) Environment (incl. climate change) ( 1.9 billion €) Transport (incl. aeronautics) ( 4.2 billion €) Socio-economic sciences & humanities ( 0.6 billion €) Security (1.4 billion €) Space ( 1.4 billion €)

Cooperation – Collaborative researchCooperation – Collaborative research

People – Human PotentialPeople – Human Potential

Ideas – Frontier ResearchIdeas – Frontier Research

Capacities – Research CapacityCapacities – Research Capacity

FP7, Specific Programmes

FP7, pillar Ideas

ERC Starting Independent Research Grant

ERC Advanced Investigator Grant

Cooperation – Collaborative researchCooperation – Collaborative research

People – Human PotentialPeople – Human Potential

Ideas – Frontier ResearchIdeas – Frontier Research

Capacities – Research CapacityCapacities – Research Capacity

FP7, Specific Programmes

FP7, pillar People Initial Training

Marie Curie Research Training Networks (RTN) Marie Curie Host Fellowships for Early Stage Research Training (EST) Marie Curie actions-Large conferences (LCF) Marie Curie actions-Series of events (SCF) Marie Curie Chairs (EXC)

Life-long Training Marie Curie Intra-European Fellowships (EIF) Marie Curie European Reintegration Grants (ERG)

Industry academia Marie Curie Host Fellowships for the Transfer of Knowledge (TOK)

International dimension Marie Curie Outgoing International Fellowships (OIF)

Marie Curie Incoming International Fellowships (IIF)Marie Curie International Reintegration Grants (IRG)

Specific actions Specific Support Actions

Marie Curie Excellence Awards (EXA)

Cooperation – Collaborative researchCooperation – Collaborative research

People – Human PotentialPeople – Human Potential

Ideas – Frontier ResearchIdeas – Frontier Research

Capacities – Research CapacityCapacities – Research Capacity

FP7, Specific Programmes

FP7, pillar Capacities Research infrastructures NEW

Research for the benefit of SMEs

Regions of knowledgeNEW

Research potential of Convergence RegionsNEW

Science in society

Coherent development of research policies

International cooperation

Cooperation – Collaborative researchCooperation – Collaborative research

People – Human PotentialPeople – Human Potential

Ideas – Frontier ResearchIdeas – Frontier Research

Capacities – Research CapacityCapacities – Research Capacity

FP7, Specific Programmes

FP7, pillar Cooperation: ten themes

Health ( 6.1 billion €) Food, agriculture and biotechnology ( 1.9 billion €) Information & communication technologies ( 9.1

billion €) Nanosciences, nanotechnologies, materials & new

production technologies ( 3.5 billion €) Energy ( 2.3 billion €) Environment (incl. climate change) ( 1.9 billion €) Transport (incl. aeronautics) ( 4.2 billion €) Socio-economic sciences & humanities ( 0.6 billion €) Security (1.4 billion €) Space ( 1.4 billion €)

FP7, instruments

‘Traditional’ instruments Small and large collaborative projects Networks of Excellence Coordination and Support Actions SME instruments Various fellowships

Instruments for frontier research

Joint Technology Initiatives, ERA-net, article 169

FP7, activities

Research and technological development

Demonstration

Training

Management of the consortium

Other specific activities (coordination/support)

FP7, management of consortium

No maximum (as in FP6), but a practical ceiling This activity includes:

Maintenance of the consortium agreement Overall legal, ethical, financial and administrative

management Implementation of competitive calls (new

beneficiaries) Any other management activities foreseen by the

annexes

Please note: scientific coordination = RTD!

FP7, training activities

Internal and external groups

No salary costs of those being trained eligible

Funding schemes

Network of Excellence (NoE)

Collaborative project: Large-scale integrating project Small or medium-scale focused research project Project for specific cooperation action dedicated

to international cooperation (SICA)

Research project for the benefit of specific groups (SMEs)

Coordination and support action (CSA)

Funding principles

Grant Reimbursement of eligible costs Flat rate Lump sum

Co-financing

No profit

Full Cost

Eligible costs

Actual Incurred during the duration of the project In accordance with usual accounting and

management principles and practices of the beneficiary

Used only to achieve project deliverables Consistent with principles of economy,

efficiency and effectiveness Recorded in accounts of the beneficiary Exclusive of non-eligible costs

Non-eligible costs

Identifiable indirect taxes including VAT Levies for airplane tickets are eligible!

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 EC project Debt and debt service charges, excessive or

reckless expenditure

Eligible costs

Qualifications usual accounting system

One system for all funding schemes

Has to be audit proof to own auditor

Has to be European Commission audit proof

Direct costs

Attributed directly to the project

Personnel costs (incl. permanent staff) Actual hours worked Directly hired by the beneficiary, work under the sole

supervision and responsibility of the beneficiary and remunerated in accordance with the normal practices of the beneficiary

Individual Averages are allowed (certification needed)

Travel and subsistence, consumables, equipment, etc.

Indirect costs, definition

Not being identified as directly attributed to project

Accounted as being incurred in direct relationship with eligible direct costs, attributed to the project

Representing fair apportionment of overall overheads

Indirect costs, methods for identifying Real indirect costs (possible a simplified method)

Flat-rate of 20% of direct eligible costs (excl. subcontracts) (without any justification)

Flat-rate of 60% of direct eligible costs (excl. subcontracts) for calls before 1 January 2010; (non-profit public bodies, secondary and higher education establishments, research organisations and SMEs)

Flat-rate of 40% for calls after 1 January 2010

CSA: max. 7% of direct costs (excl. subcontracts)

Reimbursement rates of activities

Research and technological development Basic 50% Topping up 25% (some groups, such as higher education

and SMEs)

Demonstration 50%

Management, training, networking and dissemination 100%

Coordination and support actions (CSA) 100%

Reimbursement rates

Reimbursement rates, an exampleResearch Managemen

tTotal

Personnel 100 5 105

Travel 20 20

Indirect costs

110 5,5

115,5

Total 230 10,5 240,5

EC contribution

172,5 10,5 183

Contracting phase, consortium agreement Internal organisation of the consortium, including

decision making procedures

Rules on dissemination, use, access rights

Distribution of the EC financial contribution

Settlement of internal disputes

Liability, indemnification and confidentiality arrangements

Executing phase, Guide to financial issues

Explanation by the EC

Many examples

Update every 6 months

Not legally binding

Executing phase, role of coordinator

Administer EC contribution

Review reports to verify consistency with the project tasks before transmitting them to the EC

Monitor the compliance by beneficiaries with their obligations under the grant agreement

Executing phase, payments

Pre-financing (budget/number of periods x 160%) Deduction of 5% x maximum EC grant (Guarantee Fund)

Interim payments following each reporting period

Maximum 85%

Final payment

Executing phase, reporting 1

Periods are in grant agreement (article 4)

Periodic report within 60 days: Overview of progress of work Explanation of the use of the resources Financial statement (form C) from each beneficiary Summary financial report

Executing phase, reporting 2

Final report within 60 days: Final publishable summary report (results, conclusions,

socio-economic impact) Report covering wider societal implications (gender, ethical,

plan to use and dissemination of foreground Report on distribution of the EC contribution

Certificate on the financial statements (form D) Only if EC contribution = or > € 375,000

Projects of >2 years: every € 375,000 per participant (cumulative)

Projects of max. 2 years: only at the end

Executing phase, transfer of budget

Transfer of budget between activities and beneficiaries allowed without an amendment

Condition: work carried out as foreseen in Annex I

Reimbursement rates of new activities and beneficiaries will apply

Maximum EC contribution cannot be increased

Transfer of funds to lump sum is not allowed

Costs systems Framework Programmes

Full Costs (FC) model system from FP1

Additional Costs (AC) system from FP3

AC to accommodate universities temporary

FC only cost model permitted from FP7

Background FP7 adjustments

Simplification

EUA Glasgow declaration

FP7, funding regimes

Full Costs Collaborative research projects

Transition period for AC users only Collaborative research projects

Lump sum Fellowships Frontier research

Full Costs system, possible advantages

Supportive to output funding

Transparency of costs calculation

Reimbursement of more indirect costs

Reimbursement of permanent staff costs

EC contribution FP6 versus FP7 (personnel)Cost

modelEligible personnel costs €

IndirectCosts%

TotalCosts €

ECContr.%

ECContr.€

FC FP6 100+10 80 198 50 99

AC FP6 100 20 120 100 120

FC FP7 100+10 80 198 75 148,5

FC FP7 100+10 60 176 75 132

FC FP7 100+10 40 154 75 115,5

FC system, how to implement?

How to calculate direct costs? Number of productive hours?

How to calculate indirect costs? Per university / faculty / department / project?

How to introduce time recording? Complete time writing all activities or project

activities? Everybody or project personnel?

Getting ready for Full Costs system

Preparing for transition now

Transfer to FC in 2007 or in 2010

Communication with all stakeholders

Be aware for psychological resistance

Further information

http://cordis.europa.eu/fp7/home_en.html

your local / regional EU contact persons

your National Contact Point