Coordinators Information day Research Executive Agency Katrien Steijleman REA.A1 « FP7 Support Unit » URF – PDM Presentation Coordinators Information day 7 May 2012

Part 1:How to obtain a PIC Acronyms URF – Unique Registration Facility PDM – Participant Data Management PIC – Participant Identification Code LEAR – Legal Entity Appointed Representative VS – Validation Services

The validation process

The validation process The validation of a participant is unique and valid throughout the entire FP7 programme; During the validation of a legal entity, the validation services verify the (i) legal existence and (ii) FP7 status of an applicant and (iii) the ICM; These verifications are based on supporting documents; Documents can be uploaded directly on the URF or sent via e-mail to the validation mailbox: REA-URF-Validation@ec.europa.eu; When sending an e-mail, always quote your PIC number and proposal number (when applicable) in the subject title.

The validation process Types of Legal Entities under FP7: Public and Private International Organisation Higher or Secondary Education Profit and non-profit Research organisation Enterprise SME The legal status of an organisation determines: The maximum level of EC financial contribution for RTD activities The Indirect Cost Model

Documents required for the validation: The validation process Documents required for the validation: For All Types of entities: The Legal Entity Form, dated, duly filled-in, signed and stamped (please use only that which is appropriate to your status "Public" or "Private"); http://ec.europa.eu/budget/contracts_grants/info_contracts/legal_entities/legal_entities_en.cfm For Public Entities: A copy of the resolution or law or decree or decision legally establishing your organisation; Extract proving your VAT registration number or proof of VAT exemption (not older than 6 months); Note: a "public body" has to be a legal entity established as such by national law, and international organisations. "Established" in turn signifies that the legal entity either has to be incorporated as a public body in the formal act or, governed by public law. (Article 2.13 of the FP7 rules)

The validation process For Private Entities An extract of registration in the Chamber of Commerce (or its equivalent: Company Register, Official Journal etc) showing the name of your organisation, the address of the head office, its registration number. Extract proving your VAT registration number or proof of VAT exemption (not older than 6 months);

The validation process Documents required for the validation: For Research Organisations: A legal document that proves that your organisation is: considered as a non-profit organisation by national or international law; and carries out research or technological development as one of its main objectives For Non–profit Organisations: A legal document which mentions the non-profit character of your organisation. Note: (i)The absence of a lucrative aim does not necessarily imply the absence of profits; (ii) the commitment from an organisation to not redistribute profits to its shareholders is not a sufficient condition for the entity to be considered as "non profit".

SME definition 9 Definition of an ENTERPRISE COMMISSION RECOMMENDATION OF 6 MAY 2003 concerning the definition of micro, small and medium enterprises Article 1 «AN ENTERPRISE IS CONSIDERED TO BE AN ENTITY ENGAGED IN AN ECONOMIC ACTIVITY, IRRESPECTIVE OF ITS LEGAL FORM. THIS INCLUDES, IN PARTICULAR, SELF-EMPLOYED PERSONS AND FAMILY BUSINESS ENGAGED IN CRAFT OR OTHER ACTIVITIES, AND PARTNERSHIPS OR ASSOCIATIONS REGULARLY ENGAGED IN AN ECONOMIC ACTIVITY »

The validation process THE THRESHOLDS COMMISSION RECOMMENDATION OF 6 MAY 2003 concerning the definition of micro, small and medium enterprises STAFF HEADCOUNT (ARTICLE 5) ANNUAL TURNOVER (ARTICLE 4) ANNUAL BALANCE SHEET (ARTICLE 4) ENTERPRISE CATEGORY STAFF HEADCOUNT ANNUAL TURNOVER OR ANNUAL BALANCE SHEET TOTAL Medium-sized < 250 ≤ EUR 50 million AND/OR ≤ EUR 43 million Small < 50 ≤ EUR 10 million AND/OR ≤ EUR 10 million Micro < 10 ≤ EUR 2 million AND/OR

AUTONOMOUS, PARTNER OR LINKED? COMMISSION RECOMMENDATION OF 6 MAY 2003 The validation process AUTONOMOUS, PARTNER OR LINKED? COMMISSION RECOMMENDATION OF 6 MAY 2003 AUTONOMOUS (Article 3.1) PARTNER (Article 3.2) LINKED (Art.3.3) Totally independent Holds less than 25% (capital or voting rights) in another and/or Another holds less than 25% - Holds between 25% and 50% (capital or voting rights) in another and/or Another holds between 25% and 50% Not linked to another enterprise Direct or indirect control of the majority of voting rights/Capital EXCEPTIONS (Art.3.2 (a-d)): Venture Capital Companies, Universities, Institutional Investors and Autonomous local authorities are permitted to hold a stake between 25% and 50% without affecting company’s autonomous status. An enterprise is NOT an SME if 25% or more of capital or voting rights are directly or indirectly controlled, jointly or individually, by one or more public bodies.

Documents required for the validation of SME’s: The validation process 12 Documents required for the validation of SME’s: SME CHECK LIST Duly signed and bearing the name of the legal representative (provided by the REA) BALANCE SHEET Clear mention of company’s total assets and liabilities (ANNUAL BALANCE SHEET THRESHOLD) PROFIT & LOSS ACCOUNT Clear mention of company’s turnover (ANNUAL TURNOVER THRESHOLD) The kind of income the company generates help us understand if it is involved in a commercial/economic activity. STATEMENT OF THE STAFF HEADCOUNT In case there is no mention on any of the Balance Sheet, the Profit & Loss account or accompanying notes NB. According to Art.339 of the Lisbon Treaty « EC Staff is not allowed to disclose any information about undertakings, their business relations or their cost components. » Protection of data is also mentioned in the Code of Good Administrative Behaviour and FP7 rules for participation.

The validation process The ICM options: In FP7- 4 methods available for overheads: 1.a  Actual (real) indirect costs;     1.b  Simplified method for determining real indirect costs;  2.  Standard Flat Rate (20%) 3 . Specific Flat Rate of 60%. The choice of the ICM is related to the legal status of your organisation and to the type of accounting system that you use.  ICM is unique for the legal entity in all grants  

The validation process Once the validation completed: Based on the supporting documents, the Validation Services determines the FP7 status of the organisation; The participant receives an e-mail with his final PIC number, his FP7 status and the link for appointing the Legal Entity Appointed Representative (LEAR). http://cordis.europa.eu/fp7/urf-lear_en.html

After Validation

The validation process LEAR role and responsibilities: Contact person between an organisation and the EC; responsible for providing the Commission with up-to-date legal and financial data and commits to maintain the information up-to-date ; communicates his/her role internally in his/her organisation and provides the PIC to other employees dealing with proposals and grant agreements; Only person allowed to request updates to a valid PIC number; Can nominate account administrator in the Participant Portal

LEAR request: Workflow After validation LEAR request: Workflow LEAR registers change request via URF Validation Services request supporting documents Analysis of the documents received Validation Services accept or reject the change request Confirmation mail is sent to LEAR Automatic notification to all project officers of grants (ongoing and in negotiation) in which the PIC appears

Questions? Contact details: REA-URF-Validation@ec.europa.eu