1. FP7 Rules for Participation and contractual aspects Mag. Carla Chibidziura FFG – European and International Programmes 02.07.2008 – FP7 Energy

2. Carla Chibidziura/EIPPage 2 Overview  Rules for Participation  Contractual Aspects

3. Carla Chibidziura/EIPPage 3 Rules for Participation I  Any undertaking,  university or research centre  or other legal entity,  whether established in a Member State or associated country, or in a third country, may participate in an indirect action provided that the minimum conditions have been met (Article 4, para. 1)

4. Carla Chibidziura/EIPPage 4 Rules for Participation II Article 5 - Minimum Conditions:  at least 3 legal entities must participate, each of which must be established in a Member State of the EU or in an Associated Country (AC) (not 2 in the same Member State or AC)  all 3 legal entities must be independent of each other within the meaning of Article 6  neither is under the direct or indirect control of the other or under the same direct or indirect control as the other

5. Carla Chibidziura/EIPPage 5 Rules for Participation III  participation of 1 legal entity (Not in case of coordination of research activities.) Article 8 - Minimum Condition for Coordination and support actions (CSA), and training and career development of researchers:

6. Carla Chibidziura/EIPPage 6 Rules for Participation IV Legal entity: means any natural person, or any legal person created under  national law or under  Community law or  international law, which has legal personality

7. Carla Chibidziura/EIPPage 7 Rules for Participation V If one of the participants is the  JRC (Joint Research Centre of the EC), or an  international European interest organisation (EEIG) or an  entity created under Community law, it shall be established in a Member State or AC other than any Member State or AC in which another participant in the same indirect action is established.

8. Carla Chibidziura/EIPPage 8 Rules for Participation VI Associated Country (AC):  means a third country which is party to an international agreement with the Community, under the terms or on the basis of which it makes a financial contribution to all or part of FP7  At the moment there are 11 ACs to FP7:  Albania  Croatia  Iceland  Israel  Liechtenstein  Macedonia  Montenegro  Norway  Serbia  Switzerland  Turkey

9. Carla Chibidziura/EIPPage 9 Rules for Participation VII Cooperation Activities dedicated to International Cooperation Partner Countries (ICPC)  at least 4 legal entities;  at least 2 of them must be established in Member States or Associated Countries (AC), but not established in the same Member State or AC;  at least 2 of them must be established in ICPC, but not established in the same ICPC unless otherwise specified in the work programme;  all 4 legal entities must be independent of each other

10. Carla Chibidziura/EIPPage 10 Overview  Rules for Participation  Contractual Aspects

11. Carla Chibidziura/EIPPage 11 Contractual Aspects I Before Submission of the Proposal  PIC (Participant Identification Code)  all participants in FP7 will be assigned a PIC  should already be used for proposal submission  PIC can be used 48 hours after registration in URF  URF (Unique Registration Facility)  ADVANTAGE: every organisation needs to register only once for all FP7 proposals and projects  LEAR (Legal Entity Appointed Representative)  correspondent towards the Commission on all issues related to the legal status of the entity

12. Carla Chibidziura/EIPPage 12

13. Carla Chibidziura/EIPPage 13 Contractual Aspects II Obligations  Specific obligations of the coordinator  intermediary for communication with EC  administration of the financial contribution  reviews and transmits the reports to EC  General obligations for all the beneficiaries carry out the work to be performed, as identified in Annex I (DoW) and in accordance with the specifications of the GA and its Annexes  Technical collective responsibility (but not financial)

14. Carla Chibidziura/EIPPage 14 Contractual Aspects III Negotiations  Beginning: “Letter of invitation to negotiations“  Coordinator negotiates with the Project Officer (PO) representing the European Commission  Aim of negotiations:  technical side: refining of Description of Work (Annex I) detailed objectives, working/time plan, deliverables  legal and financial side: agreement on budget, total (eligible) costs and reimbursement, pre-financing

15. Carla Chibidziura/EIPPage 15 Contractual Aspects IV Grant Agreement (GA)  End of negotiations: Signing of the GA  Enters into force as soon as the European Commission and the Coordinator signed the GA  Defines the rights and obligations of the beneficiaries

16. Carla Chibidziura/EIPPage 16 Contractual Aspects V Consortium Agreement (CA)  Mandatory for all projects (unless specifically excluded by the terms of the call for proposals)  Provides the legal basis for the details of the internal relationship and responsibilities between the beneficiaries  Should be finalised before the GA is signed  Each beneficiary should have entered into the CA before acceding the GA

17. Carla Chibidziura/EIPPage 17 Contractual Aspects VI  Eligible Costs  actual,  incurred by the beneficiary,  during the duration of the project,  determined in accordance with the usual accounting principles of the beneficiary recorded in his accounts,  for the purpose of achieving the project objectives,  indicated in the estimated budget  Non-eligible Costs  indirect taxes (VAT),  duties,  interest owed and debt,  provisions for possible losses or charges,  exchange losses, costs related to return on capital,  costs declared in another EC project,  excessive or reckless expenditure Eligible/Non-eligible Costs

18. Carla Chibidziura/EIPPage 18 Contractual Aspects VII  Direct costs  eligible costs which can be attributed directly to the project and identified as such in accordance with the beneficiary‘s accounting principles  personnel costs  Indirect costs  eligible costs not directly attributed to the project but in direct relationship with the project “Overheads“ Direct/indirect costs

19. Carla Chibidziura/EIPPage 19 Contractual Aspects VIII a Upper funding limits (direct costs) for CP Research activities – general reimbursement – 50%  SME – 75%  Non-profit public bodies – 75%  Universities and other educational org. – 75%  Research organisations – 75% Demonstration activities – 50% Other activities – 100%  Management activities (part of other activities) – 100%  Training activities (part of other activities) – 100%

20. Carla Chibidziura/EIPPage 20 Contractual Aspects VIII b Upper funding limits (Overview)

21. Carla Chibidziura/EIPPage 21 Contractual Aspects IX Funding of indirect costs (“Overheads“)  Real indirect costs of the project (indicated that the organisation has an analytical accounting system)  Simplified method can be used if:  based on actual costs from the last closed accounting year  follows the usual accounting principles and practices  direct ineligible costs (VAT, etc.) can be identified and excluded  at least allows for the allocation of the overheads at the level of the legal entity to the individual projects by using a fair "driver“ No previous registration/certification by the Commission required  Flat rate (20%)  Transitional flat rate (60%) – only applicable if the organisation is a SME, university or other research organisation and unable to identify its real indirect costs (until 2010, then at least 40%) Coordination and Support Actions (CSA): Max. 7% of direct costs

22. Carla Chibidziura/EIPPage 22 Contractual Aspects X Certificate on the Financial Statements (CFS)  Mandatory for all beneficiaries for all interim or final payments each time the cumulated EC contribution is not yet certified and ≥ € 375.000 EXCEPTIONS:  Projects ≤ 2 years – if total contribution ≥ € 375.000 only one CFS at the final payment  When Certificate of the Methodology (CoM) is accepted by EC, no CFS for interim payments needed

23. Carla Chibidziura/EIPPage 23 TIP: FFG-Akademie (for Austrian beneficiaries)  Newcomer  Project development and proposal  Project management in FP7

24. Carla Chibidziura/EIPPage 24 Legal and Financial Issues Contact: Mag. Carla Chibidziura FFG European and International Programmes Tel: +43 (0)5 7755 - 4005 carla.chibidziura@ffg.at Mag. Martin Baumgartner FFG European and International Programmes Tel: +43 (0)5 7755 - 4008 martin.baumgartner@ffg.at