1. Budget and Finances Kick-Off Meeting in Geneva

2. Kick-Off Meeting in Geneva: Budget and FinancesSlide 2 22.04.2007 Budget and Finances Outline 1.General funding principles 2.Cost structure 3.Payments and distribution of funds

3. Kick-Off Meeting in Geneva: Budget and FinancesSlide 3 22.04.2007 1. General funding principles Eligible costs of the project Actual, economic, necessary Determined, recorded and audited according to accounting rules of the contractor Incurred within duration of the project (except for costs related to preparation of the final report) Reimbursement on the basis of actual costs (expenses), allowances, flat rate

4. Kick-Off Meeting in Geneva: Budget and FinancesSlide 4 22.04.2007 1. General funding principles Non-eligible costs Indirect taxes (e.g. VAT, duties) Interest owed Provisions for possible future losses or charges Exchange losses Costs related to return on capital Debt and debt service charges Costs declared, incurred or reimbursed in respect of another Community project

5. Kick-Off Meeting in Geneva: Budget and FinancesSlide 5 22.04.2007 1. General funding principles Definition Receipts Receipts are transfers (financial, in kind) from third parties to the contractor Income generated by the project Interests yielded through Commission funding Receipts Community financial contribution cannot give rise to any profit for the contractors. (Eligible costs – receipts for the projects) ≥ Community financial contribution

6. Kick-Off Meeting in Geneva: Budget and FinancesSlide 6 22.04.2007 Budget and Finances Outline 1.General funding principles 2.Cost structure 3.Payments and distribution of funds

7. Kick-Off Meeting in Geneva: Budget and FinancesSlide 7 22.04.2007 2. Cost structure max. 10% of direct costs max. 7% of total eligible costs Minimum 65% of total eligible costs OverheadManage- ment expenses Research training / Transfer of Know- ledge(ToK) Partici pation expen- ses Career explora -tory allow. Mobility allow. Travel allow. Monthly living allowan- ce Contribution to the benefit of the contractors Contribution to the benefit of the researcher Eligible costs of the project

8. Kick-Off Meeting in Geneva: Budget and FinancesSlide 8 22.04.2007 2. Cost structure Contribution to the benefit of the researchers (fellows): Monthly living allowance (basic salary according to Marie Curie rates x country coefficient) Travel allowance (paid once in 12 months according to distance to home destination) Mobility allowance (monthly supplement to basic salary, 500/800€ × country coefficient) Career exploratory allowance (one-off payment of 2,000€ if contract exceeds 12 months)

9. Kick-Off Meeting in Geneva: Budget and FinancesSlide 9 22.04.2007 2. Cost structure Contribution to the benefit of the researchers (fellows) - Participation expenses Expenses incurred by/for the researchers Calculated on the basis of 400€ per person-month Administered by the host institution (NOT directly paid to the researcher!) Paid according to the actual cost incurred For the purpose of training, networking, ToK

10. Kick-Off Meeting in Geneva: Budget and FinancesSlide 10 22.04.2007 2. Cost structure Contribution to the benefit of the contractors (partners): Research-, training-, ToK-expenses Expenses incurred by the host institutions For the purpose of supporting The organisation as well as the implementation of the project (e.g. consumables, exchange of material etc.) The participation of the non-appointed researchers from the network teams in the networking and ToK activities

11. Kick-Off Meeting in Geneva: Budget and FinancesSlide 11 22.04.2007 2. Cost structure Management expenses Maximum of 7% of the total budget Paid towards the management of the project and the expenses related to the auditing of the financial reports of the RTN

12. Kick-Off Meeting in Geneva: Budget and FinancesSlide 12 22.04.2007 2. Cost structure Overhead Flat rate payment of 10% of the direct costs (i.e. costs that can be identified by each contractor in accordance with its accounting system, can be attributed directly to the project and satisfy certain criteria) excluding costs of subcontracting

13. Kick-Off Meeting in Geneva: Budget and FinancesSlide 13 22.04.2007 2. Cost structure max. 10% of direct costs max. 7% of total eligible costs Minimum 65% of total eligible costs OverheadManage- ment expenses Research training / ToK Partici pation expen- ses Career explora -tory allow. Mobility allow. Travel allow. Monthly living allowan- ce Contribution to the benefit of the contractors Contribution to the benefit of the researcher Eligible costs of the project

14. Kick-Off Meeting in Geneva: Budget and FinancesSlide 14 22.04.2007 2. Cost structure Expenses for ESR and ER (Example) Assuming one single ESR from Denmark and one married ER from Spain for the JLU in Giessen The Correction coefficient for Germany is 103.8% (or 1.038) for both fellows The fixed-amount contributions for the travel allowances based on the direct distance are 500€ (Denmark) and 750€ (Spain)

15. Kick-Off Meeting in Geneva: Budget and FinancesSlide 15 22.04.2007 2. Cost structure Expenses for ESR and ER (Example) - cont’d Expenses for the benefit of the ERS and ER Monthly living allow. Travel allow. Mobility allow.Career expl. allow. Partici- pation expenses Total ES R 3 years × 30,550 € × 1.038 = 95,133 € 3 years × 500 € = 1,500 € 36 months × 500 € × 1.038 = 18,684 € 2,000€36 months × 400 € = 14,400 € 129,717 € ER3 years × 47,000€ × 1.038 = 146,358 € 3 years × 750 € = 2,250 € 36 months × 800 € × 1.038 = 29,894 € 2,000€36 months × 400€ = 14,400€ 194,902 €

16. Kick-Off Meeting in Geneva: Budget and FinancesSlide 16 22.04.2007 2. Cost structure max. 10% of direct costs max. 7% of total eligible costs Minimum 65% of total eligible costs OverheadManage- ment expenses Research training / ToK Partici pation expen- ses Career explora -tory allow. Mobility allow. Travel allow. Monthly living allowan- ce Contribution to the benefit of the contractors Contribution to the benefit of the researcher Eligible costs of the project

17. Kick-Off Meeting in Geneva: Budget and FinancesSlide 17 22.04.2007 2. Cost structure Financing of a workshop (Example) Workshop in Essex (ESR from Klagenfurt, ESR & ER from Giessen) Researchers Partners (Team members) Travelling, accommodation, conference fee Budget Essex Research, training, ToK Participation expenses Budget Klagenfurt Budget Giessen

18. Kick-Off Meeting in Geneva: Budget and FinancesSlide 18 22.04.2007 2. Cost structure Expenses for training and ToK - Budget (Example) Essex organizes a tutorial (T1) and a workshop (WS), Giessen - a tutorial (T2), and Berlin - a summer school (SS) For each event, each organizer has to cover the costs for research, training, ToK including participation expenses for team members (not fellows) Participation expenses of the fellows are born by each participant (i.e. eligible researcher)

19. Kick-Off Meeting in Geneva: Budget and FinancesSlide 19 22.04.2007 2. Cost structure Expenses for training and ToK - Budget (Example) – cont’d Partici- pants Costs per person and day DaysTravel expen- ses per person Semi- nar room Invited speakers Elig. resear -chers Team mem- bers Participa- tion expenses ToK, etc. Total costs T1-T28150.00€3500.00 € 200.00 € 1,500.00€534,750.00€4,550.00 € 9,300.00 € WS7130.00€2500.00 € 300.00 € 3,000.00€433,040.00€5,580.00 € 8,620.00 € SS5120.00€4500.00 € 600.00 € 750.00€413,920.00€2,330.00 € 6,250.00 €

20. Kick-Off Meeting in Geneva: Budget and FinancesSlide 20 22.04.2007 Budget and Finances Outline 1.General funding principles 2.Cost structure 3.Payments and distribution of funds

21. Kick-Off Meeting in Geneva: Budget and FinancesSlide 21 22.04.2007 3. Payments and distribution of funds Distribution of funds Community financial contribution is paid to the co- ordinating institution (i.e. JLU Giessen) Co-ordinator distributes the funds to partners without unjustified delay Distribution of funds to partners is conducted according to CPF (Contract Preparation Forms) or other internal agreements. The Commission is to be notified and to approve any major changes to the original budget breakdown

22. Kick-Off Meeting in Geneva: Budget and FinancesSlide 22 22.04.2007 3. Payments and distribution of funds Payment modalities Pre-financing (initial as well as periodic) consists of 80% of the total budget for subsequent 18 months according to CPF budget planning or to financial planning in the periodic management report Initial pre-financing Periodic payments Within 45 days after approval of the periodic report Based on pre-financing for the upcoming (next) reporting period (adjusted for amounts accepted for respective period)

23. Kick-Off Meeting in Geneva: Budget and FinancesSlide 23 22.04.2007 3. Payments and distribution of funds Payment modalities Periodic payments (Example 1) Initial pre-financing for reporting period 1: 1,000,000€ Accepted costs for reporting period 1: 400,000€ 600,000 € not spent Planned pre-financing for period 2: 1,200,000€ Effective pre-financing for period 2: 600,000€ = 1,200,000€ - 600,000€

24. Kick-Off Meeting in Geneva: Budget and FinancesSlide 24 22.04.2007 3. Payments and distribution of funds Payment modalities Periodic payments (Example 2) Initial pre-financing for reporting period 1: 1,000,000€ Accepted costs for reporting period 1: 1,200,000€ 200,000 € overspent Planned pre-financing for period 2: 1,200,000€ Effective pre-financing for period 2: 1,400,000€ = 1,200,000€ - (-200,000)€

25. Kick-Off Meeting in Geneva: Budget and FinancesSlide 25 22.04.2007 3. Payments and distribution of funds Payment modalities Periodic payments Total amount of pre-financing cannot exceed 80% of Community financial contribution (i.e. total budget for the respective period) Final payment Within 45 days after approval of the final report

26. Kick-Off Meeting in Geneva: Budget and FinancesSlide 26 22.04.2007 3. Payments and distribution of funds 70% rule Only applies to periodic reports submitted without audit certificates If less than 70% of pre-financing is spent in the reporting period, then NO pre-financing for the subsequent reporting period! Unless: A complementary management report is provided once 70% of pre-financing has been spent or audit certificates (provided by each partner) are submitted for the reporting period we should use the second option.