WE-Mentor Enterprising women in European Research mentoring India/Israel/Romania/Turkey Financial and administrative aspects in FP7.

WE-Mentor Enterprising women in European Research mentoring India/Israel/Romania/Turkey GENERAL PRINCIPLES FORMS OF GRANTS Reimbursement of eligible costs Flat rates: a percentage for indirect costs or scales of unit costs Lump sum amounts Combination COST REPORTING MODELS ELIMINATED Participants charge direct (and indirect) costs For indirect costs flat rate is an option For certain participants indirect costs can be calculated using a simplified method to be established in the grant agreement CO-FINANCING, NO PROFIT

WE-Mentor Enterprising women in European Research mentoring India/Israel/Romania/Turkey ELIGIBILITY FOR FUNDING TYPE OF ORGANIZATIONS ELIGIBLE FOR EU FINANCIAL CONTRIBUTION: 1.Legal entities from MS and AC or created under Community law (and JRC) 2.International European interest organisations 3.Legal entities established in international cooperation partner countries (ICPC) and International organisations, third countries other than ICPC, if provided for in SP or WP; or essential for carrying out action; or provision for funding is provided for in a bilateral agreement between Community and the third country

WE-Mentor Enterprising women in European Research mentoring India/Israel/Romania/Turkey FP TYPE OF EU GRANTS Reimbursement of eligible costs Flat rates: a percentage for indirect costs or scales of unit costs Lump sum amounts Combination

WE-Mentor Enterprising women in European Research mentoring India/Israel/Romania/Turkey MAXIMUM FUNDING RATES Research and technological activities: – 50% of eligible costs except for: ▫ Public bodies: – 75% ▫ Secondary and higher education establishments: – 75% ▫ Research organisations (non-profit): – 75% ▫ SMEs: – 75% Demonstration activities: – 50% of eligible costs Other activities: – 100% including e.g. Management  Frontier research actions – 100%  Coordination and support actions – 100%  Training and career development of researchers actions – 100%

WE-Mentor Enterprising women in European Research mentoring India/Israel/Romania/Turkey REIMBURSEMENT OF ELIGIBLE COSTS Most funding schemes particularly at beginning of FP7 will use reimbursement of eligible costs DIRECT COSTS  Eligible costs: actual; incurred during the project; determined according to usual accounting and management principles/practices; used solely to achieve project objectives; consistent with principles of economy, efficiency and effectiveness; recorded in accounts (or the accounts of third parties); exclusive of non-eligible costs

WE-Mentor Enterprising women in European Research mentoring India/Israel/Romania/Turkey REIMBURSEMENT OF ELIGIBLE COSTS DIRECT COSTS  NON-ELIGIBLE COSTS: oindirect taxes including: ovalue added tax, oduties, ointerest owed, oprovisions for possible future losses or charges, oexchange losses, ocost related to return on capital, ocosts declared or incurred, or reimbursed in respect of another Community project, odebt and debt service charges, oexcessive or reckless expenditure, and oany other cost that does not meet the conditions referred to in points.

WE-Mentor Enterprising women in European Research mentoring India/Israel/Romania/Turkey MAIN COST CATEGORIES Expenses included in the budget of research project are usually grouped in the following categories: Personnel; Travel and subsistence; Equipment; Consumables; Other costs; Subcontracting; Indirect cost.  To be eligible cost must allocated only when and for the portion used to implement the project activities.  Expenses should be calculated in close approximation with real cost.

WE-Mentor Enterprising women in European Research mentoring India/Israel/Romania/Turkey PERSONNEL COSTS Technical and administrative staff assigned to the project (including Junior and Senior researchers) –To be directly hired by the beneficiary in accordance with national legislation, –To be work under the sole technical supervision and responsibility of the latter, and –be remunerated in accordance with the normal practices of the participant. To for Universities using AC in FP6: permanent staff can be considered; administrative management only for management costs; salary: gross amount, including social contribution;

WE-Mentor Enterprising women in European Research mentoring India/Israel/Romania/Turkey TRAVEL AND SUBSISTENCE Travel cost related to project meetings, technical meetings, exchange missions, conference, workshop etc. travel cost include: flight, hotel, restaurants, local transport; the number of events should be identified, as well as the possible location (national, European, International)

WE-Mentor Enterprising women in European Research mentoring India/Israel/Romania/Turkey EQUIPMENT Equipment consist of PC, machines, tools necessary for performing specific tasks of the project; Equipment can be charged to the project only for the value of the depreciation during the project life and only for the % pf allocation to the project; Depreciation is calculated according to the accountant procedures used in the country. IMPORTANT: a common fault is to allocate the whole value of the equipment during the budget preparation. to calculate the amount of the equipment: value of the equipment period of depreciation (according to the national legislation) period of use within the project; % of allocation of the equipment to the project.

WE-Mentor Enterprising women in European Research mentoring India/Israel/Romania/Turkey CONSUMABLES AND OTHER COSTS CONSUMABLES: Material to be used to perform the experiments or specific activities of the project; Software necessary for the implementation of the activities; No generic expenses (such as paper and generic per office) to be included in Indirect costs; OTHER COST: All other direct cost related to the project and not included in the above mentioned categories (admission fees for events, cost for organizing seminars, workshops, meetings, including costs for the rooms, catering, dissemination material, etc.)

WE-Mentor Enterprising women in European Research mentoring India/Israel/Romania/Turkey SUBCONTRACTING A subcontractor is a third party having an agreement on business conditions with one or more participants, in order to carry out part of the work of the project without the direct supervision of the participant –subcontracts may only cover the execution of a limited part of the project; –recourse to the award of subcontracts must be duly justified in Part B –Any subcontract, the costs of which are to be claimed as an eligible cost, must be awarded according to the principles of best value for money (best price-quality ratio), transparency and equal treatment. Subcontract = estimation of the value of the subcontract (best value for money)

WE-Mentor Enterprising women in European Research mentoring India/Israel/Romania/Turkey INDIRECT COSTS Indirect eligible costs = costs which are not attributable directly to the action, but which have been incurred in direct relationship with the direct eligible costs attributed to the action participant may opt for a flat-rate of its total direct eligible costs, excluding its direct eligible costs for subcontracting. flat rates will be based on a close approximation of the real indirect costs concerned, in accordance with the Financial Regulation and its Implementing Rules. The participant shall apply the method chosen in all grant agreements under the Seventh Framework Programme.

WE-Mentor Enterprising women in European Research mentoring India/Israel/Romania/Turkey INDIRECT COSTS Four different methods to quantify indirect costs in FP7: A) REAL INDIRECT COST: for all participants who are able to quantify the real indirect cost. Simplified approach must be based on actual costs derived from the financial accounts of the period in question; –Identification of the real % of overheads (usually based on personnel) B) FLAT RATE OF 20%: for all participants it is possible to use this approach (the same than FCF in FP6) –Indirect costs = 20% of direct cost excluding subcontract; C) FLAT RATE OF 60%: only for no profit public bodies, secondary and higher education establishments, and research organisations and SMEs, unable to quantify real indirect costs –Indirect costs = 60% of direct costs excluding subcontract For ICPC country Lamp sum. Procedure to be defined

WE-Mentor Enterprising women in European Research mentoring India/Israel/Romania/Turkey METHOD OF CALCULATING INDIRECT COSTS REAL INDIRECT COSTS A participant may use a simplified method of calculation of its full indirect eligible cost at the level of its legal entity if it is in accordance with its usual accounting and management principles and practices. Use of such a method is only acceptable where the lack of analytical accounting or the legal requirement to use a form of cash-based accounting prevents detailed cost allocation. The simplified approach must be based on actual costs derived from the financial accounts of the period in question.

WE-Mentor Enterprising women in European Research mentoring India/Israel/Romania/Turkey METHOD OF CALCULATING INDIRECT COSTS FLAT RATE OF 20% A participant may opt for a flat-rate of 20% of its total direct eligible costs, excluding its direct eligible costs for subcontracting and the costs of reimbursement of resources made available by third parties which are not used on the premises of the participant. All participant may apply for this method

WE-Mentor Enterprising women in European Research mentoring India/Israel/Romania/Turkey METHOD OF CALCULATING INDIRECT COSTS FLAT-RATE OF 60% Non-profit public bodies, secondary and higher education establishments, and research organisations and SMEs, which are unable to identify with certainty their real indirect costs for the project, for funding schemes which include research and technological development and demonstration activities may opt for –a flat-rate of 60% of the total direct eligible costs excluding costs for subcontracting and the costs of reimbursement of resources made available by third parties which are not used on the premises of the participant. If these participants change their status during the life of the project, this flat rate shall be applicable up to the moment they lose their status.

WE-Mentor Enterprising women in European Research mentoring India/Israel/Romania/Turkey FINANCIAL AND ADMINISTRATIVE ASPECTS IN FP7

WE-Mentor Enterprising women in European Research mentoring India/Israel/Romania/Turkey USE OF LUMP-SUM AND FLAT RATE FINANCING SCHEMES Greater use of lump sum or flat rate financing in future for certain actions whose characteristics and objectives permit (e.g. possibly some Coordination and Support actions, and some Marie Curie schemes) Lump sums are established by the Financial Regulation and implementing rules – per category/per beneficiary Lump sum and/or flat rate financing (scale of unit costs) could be used for the whole action, or; A specific lump sum is identified for Networks of Excellence (NoEs) (unless otherwise provided for in WP), Flat-rates/lump sums for certain costs can be combined with reimbursement of eligible costs;

WE-Mentor Enterprising women in European Research mentoring India/Israel/Romania/Turkey SPECIAL LUMP-SUM FOR NETWORKS OF EXCELLENCE For Networks of Excellence, a special lump sum is proposed in the Rules [if this form of financing is indicated in the work programme] The lump sum would be € 23,500 per researcher per year (with update every two years) Payments based on assessment of progress in implementing the joint programme of activity (measured by indicators of integration)

WE-Mentor Enterprising women in European Research mentoring India/Israel/Romania/Turkey IDENTIFICATION OF DIRECT AND INDIRECT COSTS PER ACTIVITY Direct and indirect cost identified above should be split in costs for R&D activities; costs for demonstration activities; costs for management activities; cost for other activities (e.g. training) Identify specific WPs/Tasks for each activity in the workplan;  In FP7 no more limit of 7% for management costs.

WE-Mentor Enterprising women in European Research mentoring India/Israel/Romania/Turkey EC CONTRIBUTION The requested EC contribution will be determined by applying the upper funding limits indicated per activity and per participant to the costs listed above: Research and technological development = 50% or 75%* Demonstration activities = 50% Management activities = 100% Other activities = 100% (*) no profit public bodies, secondary and higher education establishments, and research organisations and SMEs

WE-Mentor Enterprising women in European Research mentoring India/Israel/Romania/Turkey REPORTING AND AUDIT OF ELIGIBLE COSTS –Periodic reports regarding eligible costs, financial interest yielded by pre-financing, and receipts in relation with the indirect action concerned… …and, where appropriate, certified by an audit certificate, in accordance with the Financial Regulation. –The existence of co-financing in relation with the concerned action to be reported and, where appropriate, certified at the end of the action. –Audit certificates shall not be required for indirect actions entirely reimbursed by means of lump sums or flat rates. –In the case of public bodies, research organisations, and higher education establishments, an audit certificate by a competent public officer.

WE-Mentor Enterprising women in European Research mentoring India/Israel/Romania/Turkey MAIN CHANGES BETWEEN FP6 AND FP7 The Abolishment of Cost Models Overhead Rates No AC model on Universities 75% funding for SMEs for R&D activities “Financial Collective Responsibility” is replaced by a “Mechanism to cover financial loss”; Different “Forms of Grant” could be used together in a given project; Partner's total claim of less than €25,000 may not require an Audit; Audit mandatory when total claimed reaches €325,000;

WE-Mentor Enterprising women in European Research mentoring India/Israel/Romania/Turkey TERMINOLOGY CHANGES INCO becomes ICPC (International Cooperation Partner Countries); “Instruments” become “Funding Schemes”; The separate “Coordination Actions” and “Support Actions” are grouped together to become “Coordination and Support Actions” (CSA); “Financial Guidelines” become “Financial Rules”; “Model Contract” becomes “Model Grant Agreement” Under Eligible Costs, the word “Necessary” is replaced with “Used solely to achieve Project Objectives”

WE-Mentor Enterprising women in European Research mentoring India/Israel/Romania/Turkey THANK YOU! Alberto Sciuto Innova S.p.A. Via Giacomo Peroni, Rome, Italy Tel Fax