1. LEGAL AND FINANCIAL ISSUES
H2020 GRANT AGREEMENT
LEGAL AND FINANCIAL ISSUES
European Commission
DG Research & Innovation
Directorate H, Transport Research

2. Disclaimer: Information not legally binding
H2020 Grant Agreement
Single article: subject of the agreement
Chapter 1: General
Action, duration and budget
Chapter 2: Action
Amount, reimbursement rates, eligible costs
Chapter 3: Grant
To implement the action: resources, in-kind contributions, subcontracts
Grant administration: reporting, payments, audits
Background and results: access rights, protection of results, exploitation, dissemination
Others: gender equality, ethics, confidentiality
Chapter 4: Rights and obligations
Roles and responsibilities, internal arrangements
Chapter 5: Division of roles
Rejection, reduction, recovery and penalties
Suspension and termination of the action
Chapter 6: Rejection, reduction, penalties, termination, etc
Accession, entry into force, amendments, applicable law
Chapter 7: Final provisions
Disclaimer: Information not legally binding

3. Disclaimer: Information not legally binding
Annexes to the Grant Agreement
Annex 1: Description of the action
Annex 2: Estimated budget
Annex 3: Accession Forms, 3a & 3b
Annex 4: Financial statements
Annex 5: Certificate on the financial statements
Annex 6: Certificate on the methodology
Disclaimer: Information not legally binding

4. Disclaimer: Information not legally binding
+ Consortium Agreement (CA)
Coordinator
Partner
CA is mandatory unless otherwise specified in the work programme
Article 41.3 of the H2020 Model Grant Agreement
Characteristics
It is a private agreement between the beneficiaries and does not involve the EC
Deals with the rights and obligations of the beneficiaries amongst themselves.
Examples: internal organisation, distribution of EU funding, additional rules on IPR, settlement of disputes, etc.
In principle to be concluded before signing the Grant Agreement
Disclaimer: Information not legally binding

5. Disclaimer: Information not legally binding
COORDINATOR
Contact point
must coordinate and manage the grant central contact point towards the Commission
GA Signatory
Directly signs the GA
Signs amendments to the GA on beneficiaries' behalf
Monitoring
Monitors the proper implementation of the action
Coo's duties and responsibilities towards the EC - Art GA
Internal arrangements in the Consortium agreement
Disclaimer: Information not legally binding

6. Coordinator's duties - Art. 41.1 GA
Requests and reviews any documents or information required by the EC
Submits the deliverables and reports to the Commission
Ensures that all payments are made to the beneficiaries without unjustified delay
Informs the EC of the amounts paid to each beneficiary, when required under the GA or requested by the EC
Disclaimer: Information not legally binding

7. Disclaimer: Information not legally binding
BENEFICIARIES
Accession to the GA
Sign accession forms within 30 days after the entry into force of the GA
Implementation
Jointly and severally liable for the technical implementation
Compliance
Must comply with their obligations under the GA
Duties and responsibilities towards the EC - Art GA
Internal arrangements - the Consortium agreement
Disclaimer: Information not legally binding

8. Beneficiaries' duties - Art. 41.1 GA
Keep information in the Beneficiary Register up to date;
Inform the coordinator immediately of any events likely to affect significantly the implementation;
Submit to the coordinator in good time: individual financial statements and CFS ( Art. 20);
- data needed to prepare Technical report (Art. 20);
- ethics committee notifications or authorisations (Art. 34);
- any other documents or information required by the EC.
Disclaimer: Information not legally binding

9. Acknowledgment of EU funding
Any communication activity related to the action must:
display the EU emblem and
include the following text:
“This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement No [number]”.
Disclaimer: Information not legally binding

10. THIRD PARTIES Beneficiary
THIRD PARTIES: carrying out work in the action
Beneficiary
Affiliated entities
Third parties with a legal link
Subcontractors
Legal link
Must be identified in the GA
Same cost eligibility criteria than beneficiaries
NEW: the Commission may request the beneficiary to accept joint and several liability for the EU contribution
Article 14 MGA
Linked third parties !
THIRD
PARTIES
Disclaimer: Information not legally binding

11. Beneficiary THIRD PARTIES: carrying out work in the action
Affiliated entities
Third parties with a legal link
Subcontractors
Linked third parties
Ensure best value for money and avoid any conflict of interests
Estimated costs and tasks must be identified in the budget and Annex 1
NEW: if not identified in Annex 1, Commission may still approve them (beneficiary bears the risk of rejection)
Article 13 MGA !
Disclaimer: Information not legally binding

12. Beneficiary THIRD PARTIES: others Contracts Contributions in kind
For the purchase of goods, works or services
Ensure best value for money and avoid any conflict of interests
Article 10 GA
Beneficiary
Contracts
necessary for the implementation
Contributions in kind
Free of charge or against payment are eligible costs if they meet the eligibility conditions
Must be set out in Annex 1
NEW:if not identified in Annex 1, Commission may still approve them (beneficiary bears the risk of rejection)
Articles 11 & 12 GA !
Disclaimer: Information not legally binding

13. Disclaimer: Information not legally binding
Reporting
Technical report
Financial reports
Requests for payment
Periodic report:
1-18 1 2
19-36
37-57 3
The coordinator must submit a periodic report within 60 days following the end of each reporting period.
In addition, the coordinator must submit the final report within 60 days following the end of the action.
Disclaimer: Information not legally binding

14. Disclaimer: Information not legally binding
Payments
Time-to-Pay
From
One Pre-financing
30 days
The latest between starting date and entry into force
→ 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
From reception of final reports
Disclaimer: Information not legally binding

15. Disclaimer: Information not legally binding
Forms of costs
Costs actually incurred, identifiable and verifiable, recorded in the accounts, etc
NEW: non-deductible VAT is eligible
Actual costs
A fixed amount per unit determined by the Commission. Examples: SME owners' unit cost /clinical trials if in the proposal.
For average personnel cost (based on the usual accounting practices)
Unit costs
A percentage to be calculated on the eligible costs (indirect costs 25% of direct costs)
Flat rate
Disclaimer: Information not legally binding

16. CSA Coordination and Support Action
Reimbursement rates
CSA Coordination and Support Action
100%
Direct costs
FLAT RATE
25%
Indirect costs
One action
One rate
For all beneficiaries and activities in the grant.
Defined in the Work Programme.
Disclaimer: Information not legally binding

17. Disclaimer: Information not legally binding
Budget categories
Disclaimer: Information not legally binding

18. Budget transfers and re-allocation
Amendment needed?
From one beneficiary to another NO
From one budget category to another
Re-allocation of Annex 1 tasks
YES
Transfers between forms of funding (actual costs, unit costs, etc)
YES if no budget was foreseen for the category receiving the transfer
New subcontracts
advised
Disclaimer: Information not legally binding

19. Receipts Receipts Financial contributions specifically assigned by
Income generated by the action
(except for action´s results)
Income generated from the sale of assets purchased in the GA
In-kind contributions:
- spec ifical ly for the acti on - rece ived free of char ge
Financial contributions specifically assigned by
the donors to finance
the eligible costs
No-profit rule is applied at the GA level, not per beneficiary!
Disclaimer: Information not legally binding

20. Disclaimer: Information not legally binding
Final grant amount: calculation
Step 1 — Application of reimbursement rates to eligible costs
Step 2 — Limit to the maximum grant amount
The grant amount is the lower of the two amounts set in Steps 1 and 2 .
Step 3 — Reduction due to the no-profit rule
Step 4 — Reduction due to improper implementation or breach of other obligations under the GA at the payment of the balance
Final grant amount is the lower of the following two amounts:
Amount obtained following Steps 1 to 3  Amount obtained in Step 4
Total approved eligible costs X reimbursement rate 100 %
The total obtained in Step 1 is capped at the maximum amount set in art. 5.1 GA
Profit means the surplus of the amount obtained in Steps 1+2 plus the action's total receipts over the total eligible costs
If there is a profit  grant amount obtained in Step 2 is reduced
If no profit  grant amount obtained in Step 2 is not reduced
Disclaimer: Information not legally binding

21. Approved eligible costs
Final grant amount: example
Maximum grant amount
Approved eligible costs
Funding rate
If Receipts
If Reduction
200
220
100% 30 20
Step 1
Total approved eligible costs X reimbursement rate
220 * 100 % = 220
Step 2
The lower between Step 1 and the maximum amount of the grant
Lower between (220; 200) = 200
Step 3
Step 2 - profit of the action (only if positive) = Step 2 + receipts – Eligible cost
200 – ( )  200 – 10 = 190
Step 4
The lower between Step 3 and the reduced maximum grant amount
Lower between (190; ( ))  Lower between (190; 180) = 180
Disclaimer: Information not legally binding

22. Disclaimer: Information not legally binding
Wider acceptance of average personnel costs
Broadening the acceptance of usual cost accounting practices (including cost-centre approaches) as unit costs.
Less requirements for time records
Example: No time records for researchers working exclusively on the project.
Acceptance of additional remuneration
→ Limited to non-profit legal entities
→ Up to 8000 Euro/year/person working full-time exclusively in the action
→ Subject to specific conditions (Art. 6,2 GA)
PERSONNEL COSTS: novelties
Disclaimer: Information not legally binding
PERSONNEL
COSTS

23. PERSONNEL COSTS: overview
CALCULATING PERSONNEL COSTS
ACTUAL PERSONNEL COSTS
Calculation method defined in the model GA
UNIT COSTS
Calculated by the beneficiary in accordance to its usual accounting practices
(Average personnel costs)
Fixed by the Commission
for the owners of SME beneficiaries without a salary and natural persons without a salary
Disclaimer: Information not legally binding

24. Actual personnel costs: structure
TOTAL REMUNERATION
Standard remuneration
Additional remuneration
Basic Salary
"Mandatory extras"
Fixed by law or by contract to remunerate the main activity of the employee
Payment not subject to discretion by the employer
Not linked to a specific project
Examples: 13th month, hazardous work allowance, etc.
Other bonuses
Only eligible for non- profit legal entities
Subject to specific eligibility criteria
Maybe triggered by the participation in a specific project
Hourly rate
Disclaimer: Information not legally binding

25. Actual Personnel Cost = Hours worked for the project x Hourly rate
Actual personnel costs: calculation - I
Actual Personnel Cost =
Hours worked for the project x Hourly rate
where
Annual personnel costs
Annual productive hours
Hourly rate =
 The hourly rate is to be calculated per financial year
 If the financial year is not closed at the time of reporting, the beneficiary must use the last closed financial year available.
Disclaimer: Information not legally binding

26. Individual annual productive hours Standard annual productive hours
Actual personnel costs: annual productive hours
1720 hours
Individual annual productive hours
Standard annual productive hours
Formula: annual workable hours + overtime - absences
According to the beneficiary's usual accounting practices; Minimum threshold: annual productive hours ≥ 90 % of the standard workable hours
Disclaimer: Information not legally binding

27. Amendments - Article 55 GA
Modification of GA terms and conditions
Unless the decision awarding the grant called in question
The amended text becomes an integral part of the GA
All other provisions remain unchanged
Prepared electronically
Requesting party will encode the amendment request
Submitted & signed electronically (PLSIGN)
Counter signed electronically (PLSIGN)
Disclaimer: Information not legally binding

28. Disclaimer: Information not legally binding
Examples
Change of name or address of a coordinator vs. update of beneficiaries' data in the Participant portal
Changes to Annex 1: a significant change of the action tasks; changes concerning in-kind contributions or subcontracts
Changes to Annex 2 = estimated budget: form of costs that is not in Annex 2,..
Removal of a beneficiary for non-accession to GA
Change of beneficiary due to universal takeover
Disclaimer: Information not legally binding

29. IP rights – https://www.iprhelpdesk.eu/
Beneficiaries must provide rights to use their IP, if necessary for implementation
In Consortium agreement (CA)
ACCESS RIGHTS TO BACKGROUND
In general rule, owned by the beneficiary that generates them
OWNERSHIP OF RESULTS
Each beneficiary must examine the possibility of protecting its results and adequately protect them
PROTECTION OF RESULTS
If necessary for implementation
Written request for access and/or CA
ACESS RIGHTS TO RESULTS
Disclaimer: Information not legally binding

30. Disclaimer: Information not legally binding
Certificate on the financial statements: Only for final payments when total EU contribution claimed by the beneficiary on the basis of actual costs + unit costs for average personnel ≥ EUR ( excluding e.g. flat rates !)
Certificate on the methodology: Optional for average personnel costs (now under unit costs)
Financial viability
Most beneficiaries exempt from detailed analysis; only systematic check for coordinators when requested EU funding for the action is ≥ EUR
Controls and audits: ex-ante
Certificates
Disclaimer: Information not legally binding !
CONTROLS
AND
AUDITS

31. Disclaimer: Information not legally binding
Controls and audits: ex-post
Ex-post audits
Audits of the Commission limited to five years after the payment of the balance.
The beneficiary must — for a period of five years after the balance is paid — keep adequate records and supporting documentation
Extension of audit findings
Former "extrapolation" (FP7) now included in the MGA
In the case of systemic or recurrent errors, irregularities, fraud or breach of obligations
Disclaimer: Information not legally binding

32. Disclaimer: Information not legally binding
ADDITIONAL INFO:
Participant Portal
At:
Horizon 2020 Documents
Horizon 2020 Annotated Model Grant Agreement amga_en.pdf
Horizon 2020 On-line Manual
Questions? Research Enquiry Service
Disclaimer: Information not legally binding

33. Thank you for your attention!
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