1. Financials Seventh Framework Program Warsaw, 12 th December 2007 Willem Wolters & Peter Jongebloed, Wageningen International Helpdesk

2. Contents  Seventh Framework Program (FP7)  Financials in general  Financials of Cooperation

3. FP7, from AC towards FC  Only one costs system for FP7  Additional Costs system is dead  Full Costs system incl. transition periods

4. FP7, structure (four pillars) Cooperation (follow-up FP6), 32.4 billion € Ideas (basic/frontier research), 7.5 billion € People (Marie Curie fellowships), 4.75 billon € Capacities (target groups), 4.1 billion € See CORDIS website: http://cordis.europa.eu/fp7/home_en.htmlhttp://cordis.europa.eu/fp7/home_en.html

5. Cooperation – Collaborative research People – Human Potential Ideas – Frontier Research Capacities – Research Capacity FP7, Specific Programmes

6. FP7, pillar Cooperation: ten themes Health ( 6.1 billion €) Food, agriculture and biotechnology ( 1.9 billion €) Information & communication technologies ( 9.1 billion €) Nanosciences, nanotechnologies, materials & new production technologies ( 3.5 billion €) Energy ( 2.3 billion €) Environment (incl. climate change) ( 1.9 billion €) Transport (incl. aeronautics) ( 4.2 billion €) Socio-economic sciences & humanities ( 0.6 billion €) Security (1.4 billion €) Space ( 1.4 billion €)

7. Cooperation – Collaborative research People – Human Potential Ideas – Frontier Research Capacities – Research Capacity FP7, Specific Programmes

8. FP7, pillar Ideas ERC Starting Independent Research Grant ERC Advanced Investigator Grant

9. Cooperation – Collaborative research People – Human Potential Ideas – Frontier Research Capacities – Research Capacity FP7, Specific Programmes

10. FP7, pillar People Initial Training Marie Curie Research Training Networks (RTN) Marie Curie Host Fellowships for Early Stage Research Training (EST) Marie Curie actions-Large conferences (LCF) Marie Curie actions-Series of events (SCF) Marie Curie Chairs (EXC) Life-long Training Marie Curie Intra-European Fellowships (EIF) Marie Curie European Reintegration Grants (ERG) Industry academia Marie Curie Host Fellowships for the Transfer of Knowledge (TOK) International dimension Marie Curie Outgoing International Fellowships (OIF) Marie Curie Incoming International Fellowships (IIF) Marie Curie International Reintegration Grants (IRG) Specific actions Specific Support Actions Marie Curie Excellence Awards (EXA)

11. Cooperation – Collaborative research People – Human Potential Ideas – Frontier Research Capacities – Research Capacity FP7, Specific Programmes

12. FP7, pillar Capacities Research infrastructuresNEW Research for the benefit of SMEs Regions of knowledge NEW Research potential of Convergence RegionsNEW Science in society Coherent development of research policies International cooperation

13. Cooperation – Collaborative research People – Human Potential Ideas – Frontier Research Capacities – Research Capacity FP7, Specific Programmes

14. FP7, pillar Cooperation: ten themes Health ( 6.1 billion €) Food, agriculture and biotechnology ( 1.9 billion €) Information & communication technologies ( 9.1 billion €) Nanosciences, nanotechnologies, materials & new production technologies ( 3.5 billion €) Energy ( 2.3 billion €) Environment (incl. climate change) ( 1.9 billion €) Transport (incl. aeronautics) ( 4.2 billion €) Socio-economic sciences & humanities ( 0.6 billion €) Security (1.4 billion €) Space ( 1.4 billion €)

15. FP7, instruments ‘ Traditional’ instruments Small and large collaborative projects Networks of Excellence Coordination and Support Actions SME instruments Various fellowships Instruments for frontier research Joint Technology Initiatives, ERA-net, article 169

16. FP7, activities Research and technological development Demonstration Training Management of the consortium Other specific activities (coordination/support)

17. FP7, management of consortium  No maximum (as in FP6), but a practical ceiling  This activity includes:  Maintenance of the consortium agreement  Overall legal, ethical, financial and administrative management  Implementation of competitive calls (new beneficiaries)  Any other management activities foreseen by the annexes  Please note: scientific coordination = RTD!

18. FP7, training activities  Internal and external groups  No salary costs of those being trained eligible

19. Funding schemes  Network of Excellence (NoE)  Collaborative project:  Large-scale integrating project  Small or medium-scale focused research project  Project for specific cooperation action dedicated to international cooperation (SICA)  Research project for the benefit of specific groups (SMEs)  Coordination and support action (CSA)

20. Funding principles  Grant  Reimbursement of eligible costs  Flat rate  Lump sum  Co-financing  No profit  Full Cost

21. Eligible costs  Actual  Incurred during the duration of the project  In accordance with usual accounting and management principles and practices of the beneficiary  Used only to achieve project deliverables  Consistent with principles of economy, efficiency and effectiveness  Recorded in accounts of the beneficiary  Exclusive of non-eligible costs

22. Non-eligible costs  Identifiable indirect taxes including VAT  Levies for airplane tickets are eligible!  Duties  Interest owed  Provisions for possible future losses or charges  Exchange losses, cost related to return on capital  Costs declared or incurred, or reimbursed in respect of another EC project  Debt and debt service charges, excessive or reckless expenditure

23. Eligible costs  Qualifications usual accounting system  One system for all funding schemes  Has to be audit proof to own auditor  Has to be European Commission audit proof

24. Direct costs  Attributed directly to the project  Personnel costs (incl. permanent staff)  Actual hours worked  Directly hired by the beneficiary, work under the sole supervision and responsibility of the beneficiary and remunerated in accordance with the normal practices of the beneficiary  Individual  Averages are allowed (certification needed)  Travel and subsistence, consumables, equipment, etc.

25. Indirect costs, definition  Not being identified as directly attributed to project  Accounted as being incurred in direct relationship with eligible direct costs, attributed to the project  Representing fair apportionment of overall overheads

26. Indirect costs, methods for identifying  Real indirect costs (possible a simplified method)  Flat-rate of 20% of direct eligible costs (excl. subcontracts)(without any justification)  Flat-rate of 60% of direct eligible costs (excl. subcontracts) for calls before 1 January 2010; (non-profit public bodies, secondary and higher education establishments, research organisations and SMEs)  Flat-rate of 40% for calls after 1 January 2010  CSA: max. 7% of direct costs (excl. subcontracts)

27. Reimbursement rates of activities  Research and technological development  Basic 50%  Topping up 25% (some groups, such as higher education and SMEs)  Demonstration  50%  Management, training, networking and dissemination  100%  Coordination and support actions (CSA)  100%

28. Reimbursement rates

29. Reimbursement rates, an example ResearchManagementTotal Personnel100 5105 Travel 20 Indirect costs110 5,5 115,5 Total23010,5240,5 EC contribution 172,510,5183

30. Contracting phase, consortium agreement  Internal organisation of the consortium, including decision making procedures  Rules on dissemination, use, access rights  Distribution of the EC financial contribution  Settlement of internal disputes  Liability, indemnification and confidentiality arrangements

31. Executing phase, Guide to financial issues  Explanation by the EC  Many examples  Update every 6 months  Not legally binding

32. Executing phase, role of coordinator  Administer EC contribution  Review reports to verify consistency with the project tasks before transmitting them to the EC  Monitor the compliance by beneficiaries with their obligations under the grant agreement

33. Executing phase, payments  Pre-financing (budget/number of periods x 160%)  Deduction of 5% x maximum EC grant (Guarantee Fund)  Interim payments following each reporting period  Maximum 85%  Final payment

34. Executing phase, reporting 1  Periods are in grant agreement (article 4)  Periodic report within 60 days:  Overview of progress of work  Explanation of the use of the resources  Financial statement (form C) from each beneficiary  Summary financial report

35. Executing phase, reporting 2  Final report within 60 days:  Final publishable summary report (results, conclusions, socio- economic impact)  Report covering wider societal implications (gender, ethical, plan to use and dissemination of foreground  Report on distribution of the EC contribution  Certificate on the financial statements (form D)  Only if EC contribution = or > € 375,000  Projects of >2 years: every € 375,000 per participant (cumulative)  Projects of max. 2 years: only at the end

36. Executing phase, transfer of budget  Transfer of budget between activities and beneficiaries allowed without an amendment  Condition: work carried out as foreseen in Annex I  Reimbursement rates of new activities and beneficiaries will apply  Maximum EC contribution cannot be increased  Transfer of funds to lump sum is not allowed

37. Costs systems Framework Programmes  Full Costs (FC) model system from FP1  Additional Costs (AC) system from FP3  AC to accommodate universities temporary  FC only cost model permitted from FP7

38. Background FP7 adjustments  Simplification  EUA Glasgow declaration

39. FP7, funding regimes  Full Costs  Collaborative research projects  Transition period for AC users only  Collaborative research projects  Lump sum  Fellowships  Frontier research

40. Full Costs system, possible advantages  Supportive to output funding  Transparency of costs calculation  Reimbursement of more indirect costs  Reimbursement of permanent staff costs

41. EC contribution FP6 versus FP7 (personnel) Cost model Eligible personnel costs € Indirect Costs % Total Costs € EC Contr. % EC Contr. € FC FP6100+10801985099 AC FP610020120100120 FC FP7100+108019875148,5 FC FP7100+106017675132 FC FP7100+104015475115,5

42. FC system, how to implement?  How to calculate direct costs?  Number of productive hours?  How to calculate indirect costs?  Per university / faculty / department / project?  How to introduce time recording?  Complete time writing all activities or project activities?  Everybody or project personnel?

43. Getting ready for Full Costs system  Preparing for transition now  Transfer to FC in 2007 or in 2010  Communication with all stakeholders  Be aware for psychological resistance

44. Further information http://cordis.europa.eu/fp7/home_en.html your local / regional EU contact persons your National Contact Point