Science, Research and DevelopmentEuropean Commission THE 5 th FRAMEWORK PROGRAMME /10/ NAS I ã PROPOSALS TO BE SUBMITTED FOR THE EXTENSION OF RUNNING PROJECTS ã RTD, THEMATIC NETWORKS, CONCERTED ACTIONS ã TO BE SUBMITTED BY THE CO- ORDINATOR LE 5 ème PROGRAMME - CADRE

Science, Research and DevelopmentEuropean Commission THE 5 th FRAMEWORK PROGRAMME /10/ NAS I LEGAL AND BUDGETARY ISSUES Forms to be filled: By the coordinator (A0, A1,A2,A4)  By the existing participants (A3)  New participants (A3)  Budget overview (concerns only the budget of the extension) LE 5 ème PROGRAMME - CADRE

Science, Research and DevelopmentEuropean Commission THE 5 th FRAMEWORK PROGRAMME /10/ Accompanying measures Which area ? Accompanying measures will contribute to the implementation of the specific programmes or the preparation of future activities, with a view to enable them: - to achieve their strategic objectives, - to prepare for or to support other indirect RTD/RTDT activities. Measures devoted to the commercialisation of products, processes or services, marketing activities and sales promotion are excluded.

Science, Research and DevelopmentEuropean Commission THE 5 th FRAMEWORK PROGRAMME /10/ Accompanying measures What is the minimum number of participants? * Principle - at least one principal contractor * Grant Agreement - one beneficiary

Science, Research and DevelopmentEuropean Commission THE 5 th FRAMEWORK PROGRAMME /10/ Accompanying measures What is the rate of FP5 participation? * Principle - Maximum 1/3 of the total normal activities * Grant Agreement - Maximum 1/3 of the total normal activities

Science, Research and DevelopmentEuropean Commission THE 5 th FRAMEWORK PROGRAMME /10/ Eligible costs: definition

Science, Research and DevelopmentEuropean Commission THE 5 th FRAMEWORK PROGRAMME /10/ What are the eligible costs? ã Needed for the research project ã Provided for in the contract ã Incurred during the duration of the project ã For which expenditure has actually been effected, and ãWhich are recorded in the accounts and tax documents

Science, Research and DevelopmentEuropean Commission THE 5 th FRAMEWORK PROGRAMME /10/ Which costs are not eligible? ãcosts concerning return on invested capital ãprovisions for losses or future charges ãdebt interest ãresourses made available free of charge to the contractor ãcontributions in kind ãexclusion of any profit margin

Science, Research and DevelopmentEuropean Commission THE 5 th FRAMEWORK PROGRAMME /10/ Which costs are not eligible? ãunnecessary or ill-considered expenditure ãmarketing/distribution costs ãindirect taxes and duties (including VAT) ãrepresentation expenses ãany cost incurred or reimbursed in respect of another project

Science, Research and DevelopmentEuropean Commission THE 5 th FRAMEWORK PROGRAMME /10/ Transfer of amounts ãBetween categories of costs for the individual contractor (with the exception of knowledge protection costs) ãBetween contractors: Õ if < 20% - inform the Commission Õ if > 20% - agreement of the Commission Õ objective of the project remains unchanged

Science, Research and DevelopmentEuropean Commission THE 5 th FRAMEWORK PROGRAMME /10/ types of categories of costs ã Direct costs ã Indirect costs

Science, Research and DevelopmentEuropean Commission THE 5 th FRAMEWORK PROGRAMME /10/ Categories of costs 1. Personnel 2. Durable equipment 3. Sub-contracting 4. Travel and subsistence 5. Consumables 6. Computing 7. Protection of knowledge 8. Other specific costs 9. Overheads

Science, Research and DevelopmentEuropean Commission THE 5 th FRAMEWORK PROGRAMME /10/ Personnel costs ãActual hours of scientific and technical staff ãemployed by the contractor ãunder the technical supervision of the contractor ãremunerated on the basis of the contractor ’s customary practices Obligatory: recording of hours spent on the project spent on the project

Science, Research and DevelopmentEuropean Commission THE 5 th FRAMEWORK PROGRAMME /10/ Personnel costs Hours …..X hourly costs Hours …..X hourly costs ã Hours: recording of time spent on the research project on the research project Personnel costs Productive hours Productive hours = ã Hourly cost

Science, Research and DevelopmentEuropean Commission THE 5 th FRAMEWORK PROGRAMME /10/ Productive hours ã Hours spent on the research ã Working time available less holidays, sickness, training,... Õ ‘standard’ time Õ actual time recorded ã The basis used must be objectively verifiable e.g. 210 days x 7.5 hours = productive hours

Science, Research and DevelopmentEuropean Commission THE 5 th FRAMEWORK PROGRAMME /10/ Durable equipment ã Purchase ã Leasing (equipment cost ceiling) NB hire with the option of purchase = sub-contracting NB hire with the option of purchase = sub-contracting ã Depreciation ã A/B x C x DA = month of use B = depreciation period 36 months (computer equipment < EUR ) 60 months C = equipment cost D = percentage of use for the project Reminder with regard to A ã Before project commencement (6 months) ã May be the remainder of the depreciation of an earlier RDT contract

Science, Research and DevelopmentEuropean Commission THE 5 th FRAMEWORK PROGRAMME /10/ SPECIAL CONDITIONS  contractors may charge costs relating to purchases of durable equipment by or for the same contractors without taking account of the depreciation period, provided the equipment remains on their premises throughout the duration of the project and after completion of the project.  the costs of permanent staff may also be charged to the contract  the flat-rate amount for overheads to this contract shall be reduced to 10% of the direct costs where the personnel costs for permanent staff are charged to the contract  the flat-rate amount for overheads to this contract shall be reduced to 10% of the direct costs where the personnel costs for permanent staff are charged to the contract  contractors may charge costs relating to purchases of durable equipment by or for the same contractors without taking account of the depreciation period, provided the equipment remains on their premises throughout the duration of the project and after completion of the project.  the costs of permanent staff may also be charged to the contract  the flat-rate amount for overheads to this contract shall be reduced to 10% of the direct costs where the personnel costs for permanent staff are charged to the contract  the flat-rate amount for overheads to this contract shall be reduced to 10% of the direct costs where the personnel costs for permanent staff are charged to the contract

Science, Research and DevelopmentEuropean Commission THE 5 th FRAMEWORK PROGRAMME /10/ Sub-contracting ãPrior written agreement of the Commission where the cumulative amount of a contractor ’s sub-contracts exceeds í 20% of the estimated eligible costs í EUR (EXCEPT IF DETAILED IN THE TECHNICAL ANNEX) ã Customary procedures ã Market prices ã Copy attached to the statement of costs NB COORDINATION CANNOT BE SUB-CONTRACTED (except for CRAFT)

Science, Research and DevelopmentEuropean Commission THE 5 th FRAMEWORK PROGRAMME /10/ Travel and subsistence ã Prior agreement if í outside the Member States í associated States í third countries Unless provided for in the technical annex

Science, Research and DevelopmentEuropean Commission THE 5 th FRAMEWORK PROGRAMME /10/ Consumables ã Link with the project ã may include software licences In the case of total costs contractors - choice: ã direct costs ã indirect costs (if usual policy)

Science, Research and DevelopmentEuropean Commission THE 5 th FRAMEWORK PROGRAMME /10/ Computing ãUse of computer services in accordance with customary practices In the case of total costs contractors - choice: ãdirect costs ãindirect costs

Science, Research and DevelopmentEuropean Commission THE 5 th FRAMEWORK PROGRAMME /10/ Other specific costs ãCosts not falling within any other category ãPrior agreement of the Commission unless provided for in the technical annex

Science, Research and DevelopmentEuropean Commission THE 5 th FRAMEWORK PROGRAMME /10/ Indirect costs Indirect costs ãActual: actual indirect costs (administration, buildings, administration, water, electricity, telecoms,...) - 50% reimbursement ãFlat rate: ã total costs : 80% of the costs of staff assigned to the project - 50% reimbursement ã additional costs: 20% of the direct costs (less sub-contracting) - 100% reimbursement

Science, Research and DevelopmentEuropean Commission THE 5 th FRAMEWORK PROGRAMME /10/ Coordination costs ãDirect and indirect costs relating to the adminstrative and financial coordination of the contract ãOnly the coordinator can charge them ãVia the categories of existing costs ãIn the case of personnel costs: ã administrative and financial staff ã same rules as for research staff (e.g. recording of working time) recording of working time) ã not included in the overheads

Science, Research and DevelopmentEuropean Commission THE 5 th FRAMEWORK PROGRAMME /10/ Financial audit ÙThe Commission or any authorised representative (firm of auditors) ÙWithin five years of each payment ÙAnnounced by registered letter ÙCommunication of conclusions ÙRight of reply (1 month) ÙRecommendations / Adjustment  European Court of Auditors ãWho? ãWhen? ãHow?  Follow-up?