1. Validation of legal entities and financial viability check
Horizon 2020 Coordinators' Day
Antonio BALESTRIERI Head of Sector
Participant Validation and Support
September 23rd, 2016

2. Outline of the Presentation
Validation workflow
Documents for validation
The LEAR
Financial Viability
Bank accounts
Messages and documents via PP
Guidance Documents

3. New participants via the Based blue-ink signature documents
1. Validation Workflow (i)
REGISTER
LEAR
FVC
H2020 Status
Core Data
VALIDATION
New participants via the
Beneficiary Register
Validated
on the basis of
Documents by
REA VS &
DG BUDG
Attribution
of status and
validated
PIC number
Mandatory
appointment
Based blue-ink signature documents If
needed,
financial
viability
check
COMMUNICATION VIA PARTICIPANT PORTAL'S
BENEFICIARY REGISTER

4. 1. Validation Workflow (ii)
The validation of a Participant is done once and lasts for the whole duration of the H2020 programme.
During the validation of a legal entity, the REA VS verifies:
(i) legal existence,
(ii) H2020 status of an applicant,
(iii) Mandate of the LEAR and
(iv) financial viability (when required).
Validation is always performed on the basis of supporting documents
Validation is required for all beneficiaries and third parties. The PIC of third parties, usually included in the consortium during grant preparation, must be introduced in the Participant Portal Grant Management Service (PPGMS).

5. 2. Documents for validation (i)
Legal entities form (template to be completed, dated, stamped and signed)
VAT extract (< 6 months)
If not registered for VAT – proof of VAT exemption
Registration extract (<6 months) – for private law body
Law/decree/decision – for public law body
Treaty – for international organisations
Statutes – for non-profit organisations
Based on supporting documents, the H2020 status of the applicant is determined

6. 2. Documents for validation (ii)
To qualify as "Research" organisation:
Two conditions have to be met:
Entity must be non-profit. This status is verified by the REA VS
Entity performs research activities. This status is based on self-declaration (no legal documents required)
NB Definition of non-profit organisations:
"A legal entity which, by its legal form, is non-profit making AND/OR which has a statutory obligation not to distribute profits to its shareholders or individual members "

7. 2. Documents for validation (iii)
SME status via the web-based
SME self-assessment
(no documents required for VS)
SME self-assessment is part of the Beneficiary Register
REA VS will carry out ex-post checks of the SME status on a random basis and/or upon request of the operational services
In this case, supporting documents will be required

8. 3. The LEAR (i) Under H2020 the LEAR appointment is mandatory.
(i) Notifies the EU of changes in legal data/status;
(ii) Submits legal and financial documents if required;
(iii) Nominates 'Account Administrators' and individuals authorised to sign:
Grant agreements and amendments (Legal signatories i.e. LSIGN)
Financial statements (Financial signatories, i.e. FSIGN)
(v) Informs own staff about the organisation's PIC

9. Research Executive Agency-Validation Services
3. The LEAR (ii)
Documents required for LEAR's extended mandate:
Letter of Appointment (duly signed by legal representative)
Roles and Duties (duly signed by both LEAR and legal representative)
Declaration of Consent (duly signed by legal representative)
Copy ID card of the LEAR
Copy ID card of the legal representative
Proof of empowerment of the legal representative
Original signed forms (pdf copies and electronic signatures are NOT accepted) to be sent via postal mail to:
Research Executive Agency-Validation Services
COV2 – 13/132
B-1049 BRUSSELS
Belgium

10. 3. The LEAR (iii)
Once LEAR data validated in the Beneficiary Register:
The LEAR's ECAS account needs to be linked to the PIC
Name and in PP LEAR section shall match name and address of the linked ECAS account
New LEAR or new = new account
REA VS will confirm the LEAR (re)appointment
PIN code is usually sent by service-desk via postal mail
Urgent request for PIN code: send an to OR
Provide in the LEAR appointment form the mobile phone number of the LEAR, which will be used by the service-desk only to communicate the PIN code

11. 4. Financial Viability Check (i)
In general, the financial capacity is checked if:
The beneficiary is a coordinator, and
The requested EU funding for the project is ≥ EUR.
Applicants for mono-beneficiary grants are not considered as 'coordinators'
A financial viability check can be performed on other beneficiaries at the request of the EU service in charge of the project

12. 4. Financial Viability Check (ii)
The FVC assessment is carried out via the Beneficiary Register. Ratios (weak, acceptable, good) are displayed online
At proposal level, coordinators are asked to self-declare their financial capacity. A self-declaration tool available in the Participant Portal, embeds the same calculations of the formal FVC. Those results, though, are not binding for EU services and if needed later on, a FVC will be performed by the REA VS against supporting documents
Final decision on the participation of an applicant with a 'weak' FVC result (based on the ratios) is taken by the EU services responsible for each individual project

13. 5. Bank accounts
Search for bank account is available in Participant Portal Grant Management Service (PPGMS) when session is open
If no account exists, PPGMS displays explanatory message on how to request the validation of a BA
Coordinator contact shall inform the LEAR to start BA creation request (upload of documents via the Beneficiary Register)
REA VS will launch BA creation and inform LEAR when validation is completed
Pdf copies are accepted. Original forms not required

14. 6. Messages and documents via PP (i)
Upload of documents for validation can be done from the Participant Portal, under the "Documents" tab (pdf copies accepted, except LEAR)
To do so, select 'My Organisations' on the Participant Portal, and click on 'Modify Organisation'. It can be done by the LEAR (for a "valid" PIC) or self-registrant (for a "declared" PIC)
Check "Messages" under PIC for follow-up requests from REA VS
The "Activity log" provides an overview of latest VS requests and actions

15. 6. Messages and documents via PP (ii)

16. 6. Messages and documents via PP (iii)
Messages are exchanged via the Participant Portal and can be seen in the system.
Messages from the REA VS are also sent as to the participant.

17. 6. Messages and documents via PP (iv)

18. 7. Guidance documents (i)
The H2020 Grants Manual is published on the Participant Portal
It includes a dedicated section on the legal and financial validation rules as well as the LEAR role and tasks.

19. Recurrent issues during the validation process
7. Guidance documents (ii)
Recurrent issues during the validation process
Incorrect of self-registrant or LEAR (IT helpdesk)
PIN code not received by the LEAR (IT helpdesk)
Delay in receiving original LEAR documents
Translations of documents from non-EU participants: must be certified + official + legal

20. Thank you for your attention!