Project budget and EU indirect costs Following EU standards, all costs for the project are indicated in terms of “direct costs”, complemented with “indirect costs” to obtain “total cost” “direct costs” + “indirect costs” = “total cost” Indirect cost rates depend on agreements between your institute and the EU. In FP7, many non-profit public research organisations use a flat 60% indirect cost rate (see examples on next slide). Within FP7, the “full cost model” is applied, so in the financial reporting you will have to declare all costs, including the costs incurred by your laboratory. Depending on the type of activity, the EU applies “maximum reimbursement rates for indirect costs”, independently of the actual indirect cost claimed by your institute. Indirect costs apply to: personnel costs, consumables, travel, materials. No indirect costs for: subcontracting

Examples of indirect cost rates applied by various labs Participant short name Rate for personnel indirect costs (%) Rate for material (etc) indirect costs (%) CERN60% AGH-UST60% CEA-Saclay64%0% CIEMAT109%0% CNRS-IN2P360% CTU60% DESY60% Durham Univ.20% ETH Zürich60% FOM-NIKHEF60% GSI60% Imperial60% INFN60% PSI20% STFC(RAL,DL,ASTEC) 105%0% UNIGE60%

Reimbursement rates Activity typeCodeMax. indirect reimb. rate. ManagementMGTActual rate Coordination (networking)COORD7% Transnational access activities or service activities (support) SUPP7% Joint research activitiesRTDActual rate Maximum reimbursement rates for indirect costs: Maximum EU contribution to total costs per type of activity: Type of activityMax EU contr. Management100% Coordination (networking)100% Joint research activities75% Transnational access20% of the TOTAL cost of providing access to the installation for the duration of the project

Proposed budget convention In view of the potential size of the present project, and the expected maximum EU participation we propose the following convention for the budget sharing for each contributing institute and for each activity: “Total cost participation by the EU” : “Total cost by the participating institute” = 1:2 Note that both entities include indirect costs. This convention allows for a fair sharing of the budget independently of how each institute handles its indirect costs. Taking into account the EU maximum reimbursement rates for indirect costs, we expect this to lead approximately to the following ratio: “EU contribution” / “total declared project cost” = ~30%