HISER project 3rd GA meeting Feb Orleans

Reporting and payments Lyon LAFARGE October 1 st reporting period (m1-m18) rv1rv2rv3 Present the work carried out, the main achievements and the use of the resources EASME (PO) will be assisted by external reviewers

Reporting and payments Periodic reports Give a clear account of the project activities during the reporting period (against the baseline of GA) What did we do? What did we achieve? Which problems did we encounter? How did we spend our budget? Any deviations? Clear, informative, straight to the point, concise Transparent communication On time

Reporting and payments Time-to-PayFrom One Pre-financing 30 days From: entry into force or 10 days before the starting date (whichever is the latest) → Retention 5 % of maximum grant for the Guarantee Fund Interim Payments 90 days From reception of periodic report → Based on financial statements (EU contribution= eligible costs approved * reimbursement rate) → Limit = 90 % of the maximum grant (Retention 10%) Payment of the Balance 90 days From reception of final reports

Reporting and payments PAYMENTS Linked to submission of complete and correct reports (technical + financial); signed financial reports and; deliverables. EASME shall evaluate and approve project reports and deliverables and disburse the corresponding payments within 90 days of their receipt.

Technical Report Technical report (in 2 parts) Part A structured tables from the grant management system: ◦ cover page ◦ publishable summary ◦ web-based tables covering issues related to the project implementation (e.g. work packages, deliverables, milestones, etc.) ◦ answers to the questionnaire about the economic and social impact, especially as measured against the Horizon 2020 key performance indicators and monitoring requirements. 1. Deliverables 2. Milestones 3. Ethical Issues (if applicable) 4. Critical implementation risks and mitigation measures 5. Dissemination & exploitation of results 6. Impact on SMEs 7. Open Research Data 8. Gender issues TABLES

Technical Report Technical report (in 2 parts) Part B is the free text, core part of the report that you must upload to the grant management tool under the Report Core tab, as a single PDF document with: ◦ explanations of the work carried out by all beneficiaries and linked third parties during the reporting period ◦ an overview of the progress towards the project objectives, justifying the differences between work expected under Annex I and work actually performed, if any. Templates for this and other documents can be found in

Project Financial Signatory On 13/01/2016, TECN sent an explaining how to assign the Project Financial Signatory to HISER, the following partners have not made it yet: ARCHIMEN, DUMOULIN, INASHCO, LAATUENERGIA, MEBIN, RTT, TIIHONEN, VCB and SELFRAG If you don’t do it, you will not be able to present the financial justification and you won’t receive any interim payment. Financial reporting

The first period finishes the 31/07/2016, on 01/08/2016: all partners will receive an automatic message with Subject: “NEW TASK: Your EU project HISER - REP ; start preparing the Periodic Report to the Commission” This message means that the module for preparing the report has been opened in the Participant Portal. This is, until the 01/08/2016, the financial justification application will not be available in the Participant Portal. Please, do not touch the amendments!

Financial reporting TECNALIA will send an Excel file to be filled in by all partners with all HISER costs related to the period 01/02/2016 – 31/07/2016. Once TECNALIA has checked and agreed with the costs declared, it´s time to upload the costs to the Participant Portal.

Financial reporting All of you who have Participant Contact role can access and fill in the financial justification, the procedure is the following: Access to the Participant Portal using your ECAS account. Select “My Project(s)” and tick on the green button [MP]. A new window will open and in the top a new module will appear titled “Periodic Reporting” showing three documents: – Technical Part of Periodic Report contribution – Financial Statement XXXXXX [PIC XXXXXXXXX] drafting – Periodic Report 1 composition

Financial reporting

Selecting on Financial Statement XXXXXX [PIC XXXXXXXXX] you will access to a window like: Explain in your financial statement how the resources were used during this period: for each cost you declare, you will be prompted to give a justification, by clicking View/Edit the Use of Resources

Financial reporting A. Direct personnel costs- line a)-c) Declare here your direct personnel costs a) as actual costs (ALL PARTNERS EXCEPT VTT AND TIIHONEN) or b) as unit costs (average costs) (ONLY VTT). If you are an SME owner or individual not receiving a salary /reimbursed on the basis of unit costs, declare your personnel costs in column A.4 (c) (ONLY DUMOULIN (in case his SME owner has worked in HISER during this period) and TIIHONEN). You need only supply data on the person-months per work-package (not per deliverable). At this stage, you don't have to provide details like names, level of experience etc. (though we may ask you to later).

Financial reporting B. Direct costs of subcontracting - line d) In this pop-up, break down the total direct costs for the period into the costs for individual subcontractors. According to the GA, only ASM, DUMOULIN, INASHCO (now ADR), KNAUF, and RTT have budget assigned to Subcontracting, in case a Partner has subcontracting unforeseen, he must answer No in the field “Foreseen in Annex I” and write an explanation in the field “Explanations (if not foreseen in Annex I)” (in addition to the information provided in the technical report - par.1.2). Unforeseen subcontracting can be considered not eligible!

Financial reporting D. Other direct costs – line f) You should have detailed costs related to contracts to third parties for providing goods, works or services in line f). If costs declared under "other direct costs" are equal to or less than 15% of the personnel costs you are claiming for this reporting period, you do not need to provide an explanation (though you must still keep all the proof you have of any costs you declare as eligible, in case you are audited). If costs declared under "other direct costs" are higher than 15% of these personnel costs, then you must explain other major direct cost items (This means costs declared in your accounts according to your internal accounting practices.) in the table provided in the pop up in line f). You must explain all items apart from those that add up to less than 15% of your personnel cost. Start from the highest-value cost items.

Financial reporting D. Other direct costs – line f) If you are reporting other direct cost items, you must provide: if indicated in the DoA – a simple reference to the DoA if not indicated in the DoA – cost/amount per item, description of the item, nature of item (travel, equipment, other goods & services), work package(s), project relevance/explanation

Financial reporting Example: Personnel costs: €100,000 Other directs costs: €35,000 Since the other direct costs represent 35% of the personnel costs, you must justify an amount representing 20% of the personnel costs, i.e. €20,000. If the €35,000 is the sum of items recorded in the accounts (e.g. €8,500 + €7,500 + €6,500 + €5,500 + €4, x €1,000) You must list and justify the items €8,500, €7,500 and €6,500. The remaining amount (a total of €12,500) is less than 15% of the personnel costs, so no details are required for it.

Financial reporting Once you have filled in all data, you can get it “Frozen” so the Coordinator can check it: If there is something to fix up, you will have to select the button [Unlock to draft] If it is Okay, the Project Financial Signatory will have to electronically sign it. This Financial Justification can be only electronically signed if the Project Financial Signatory has been appointed.

Aspects to take into account when preparing the Financial Report Whenever you have a doubt about the costs, please, check the Annotated Model Grant Agreement: grants_manual/amga/h2020-amga_en.pdf

Aspects to take into account when preparing the Financial Report Personnel costs: For calculating them, it must be always used the last closed financial year; this is, if your financial year ends the 31st of December: 01/02/201531/07/2016 Hourly rates of 2015 will also be used for justifying these months

Aspects to take into account when preparing the Financial Report Deductible VAT is NOT eligible: ‘Deductible VAT’ means VAT that is recoverable under the national ‘VAT system’ (i.e. the system of collection and deduction under the national VAT legislation). The cost and revenue accounts should exclude deductible VAT; such VAT should be recorded in separate payable or receivable accounts, without effect on revenue or cost line items. Conversely, if VAT is NOT deductible, it is an eligible cost. Non-identifiable VAT — In exceptional cases where the beneficiary cannot identify the VAT charged by the supplier (e.g. small non-EU invoices), the full purchase price can be recorded in the accounts, since non-identifiable VAT is not deductible. VAT is thus eligible.

Aspects to take into account when preparing the Financial Report Financial statements must be drafted in euro: Beneficiaries with accounting established in a currency other than the euro must convert the costs recorded in their accounts into euro, at the average of the daily exchange rates published in the C series of the Official Journal of the European Union, calculated over the corresponding reporting period. If no daily euro exchange rate is published in the Official Journal of the European Union for the currency in question, they must be converted at the average of the monthly accounting rates published on the Commission’s website, calculated over the corresponding reporting period. Beneficiaries with accounting established in euro must convert costs incurred in another currency into euro according to their usual accounting practices. Explained in the Annotated Model Grant Agreement: GA: 20.6 Currency for financial statements and conversion into euro.

Aspects to take into account when preparing the Financial Report Regular financial errors: Declaration of the agreed budget for the project – the budget is a maximum amount, not THE amount or the price! Staff working on the project and sick or on holiday at the same time!! Hours claimed cannot be supported - Impossible number of hours claimed No demonstrated link of consumables to the project “Best value" not demonstrated You may not, under any circumstances, sub-contract to a project partner (MGA Article 13)