1. Outi Kauppinen, 28 Oct 2015, Rome HNN2.0/SiSNet2.0
Budgeting in H2020
Outi Kauppinen, 28 Oct 2015, Rome HNN2.0/SiSNet2.0
Tekes, NCP Academy

2. Horizon 2020 Structure 1. Excellent Science 2. Industrial Leadership
3. Societal Challenges
The European Research Council
Future and Emerging Technologies
Marie Skłodowska –Curie Actions
Research Infrastructure
Leadership in Enabling and Industrial Technologies (LEIT) (ICT, Nanotech, Adv. mat., Biotech, Adv. manu Space)
Access to risk finance
Innovation in SMEs
Health
Bioeconomy
Energy
Transport
Climate Action
Inclusive Societies
Secure Societies
4. Spreading Excellence and Widening Participation
5. Science with and for Society
Outi Kauppinen TEKES - Rome, 28 Oct 2015

3. Types of Actions in the WP
1. Excellent Science
2. Industrial Leadership
3. Societal Challenges
The European Research Council
Future and Emerging Technologies
Marie Skłodowska –Curie Actions
Research Infrastructure
Leadership in Enabling and Industrial Technologies (LEIT) (ICT, Nanotech, Adv. mat., Biotech, Adv. manu Space)
Access to risk finance
Innovation in SMEs
Health
Bioeconomy
Energy
Transport
Climate Action
Inclusive Societies
Secure Societies
Focus today:
1. Research and Innovation Actions (RIA)
2. Innovation Actions (IA)
3. Coordination and Support Actions (CSA)
4. Spreading Excellence and Widening Participation
5. Science with and for Society
Outi Kauppinen, Tekes, Rome, 28 Oct 2015

4. Outi Kauppinen, Tekes, Rome 28 Oct 2015
Guide to Understanding the Rules
he ‘AGA — Annotated Model Grant Agreement’ is a user guide that aims to explain to applicants and beneficiaries the General Model Grant Agreement (‘General MGA’) and the different specific Model Grant Agreements (‘Specific MGAs’) for the Horizon 2020 Framework Programme for The purpose of this document is to help users understand and interpret the GAs, by avoiding technical vocabulary, legal references and jargon, and seeking to help readers find answers to any practical questions they may have about particular parts of the GAs. In the same spirit, the document’s structure mirrors that of the GAs. It explains each GA Article and includes examples where appropriate. Since the Specific MGAs have a similar set-up and provisions as the General MGA (i.e. they are all derived from the General MGA), the annotations will focus mainly on the General MGA (and the annotations of the other MGAs will be limited to major differences from that MGA). The key provisions on the amount, cost forms and conditions for eligibility of your grant are however explained for all MGAs (see Articles 4-6 of each MGA). The annotations are — with some exceptions — done on the multi-beneficiary versions. The multi- and mono-beneficiary versions are largely identical.
Link to the Annotated Model Grant Agreement
Outi Kauppinen, Tekes, Rome 28 Oct 2015

5. Outi Kauppinen, Tekes, Rome 28 Oct 2015
Who can participate? Who gets EU funding?
Outi Kauppinen, Tekes, Rome 28 Oct 2015

6. Outi Kauppinen, Tekes, Rome 28 Oct 2015
Definitions
Legal entity/Participant/Beneficiary
Member States (MS)
Associated Countries (AC)
Overseas Countries and Territories (OCT) linked to the Member States
Third countries
Outi Kauppinen, Tekes, Rome 28 Oct 2015

7. Legal entities that may participate in the actions (RfP Art. 7)
Any legal entity
BUT
Restrictions to the participation may be indicated in the relevant work programme
Outi Kauppinen, Tekes, Rome 28 Oct 2015

8. Conditions for participation (RfP Art. 9)
Minimum conditions
Additional conditions
For ”standard” actions:
At least, 3 legal entities, each established in different MS/AC, and independent of each other
To be set out in the work programme (i.e. number of participants, type of participants, place of establishment etc.)
For the SME Instrument, Coordination and Support Actions, the European Research Council, Co-fund Actions, as well as training and mobility actions:
1 legal entity established in a MS/AC
Outi Kauppinen, Tekes, Rome 28 Oct 2015

9. Eligibility for funding (RfP Art. 10)
The following participants are eligible for funding from the Union: • Entities established in a Member State, Associated Country* and developing countries ** • Entities created under Union law • International European interest organisation Legal entities established in industrialised (and emerging economy) countries and international organisations, may receive funding if: • Their participation is essential • There is a bilateral agreement between that country and the EU • The country is explicitly identified in the relevant work programme and call for proposal as being eligible for funding *Associated Countries **Annex A of the Horizon 2020 Work Programmes
Outi Kauppinen, Tekes, Rome 28 Oct 2015

10. Eligibility for funding (RfP Art. 10)
The country is explicitly identified in the relevant work programme and call for proposal as being eligible for funding
Outi Kauppinen, Tekes, Rome 28 Oct 2015

11. Outi Kauppinen, Tekes, Rome 28 Oct 2015
Eligibility for funding: ”non-EU countries’” or “third countries” (RfP Art. 10)
Outi Kauppinen, Tekes, Rome 28 Oct 2015

12. Individual researchers

13. Question Do third countries receive H2020 funding in this call?
Outi Kauppinen, Tekes, Rome 28 Oct 2015

14. Outi Kauppinen, Tekes, Rome 28 Oct 2015
Question
A client asks how to handle a third country participant in the consortium. What do you advise?
Outi Kauppinen, Tekes, Rome 28 Oct 2015

15. Outi Kauppinen, Tekes, Rome 28 Oct 2015
Horizon 2020 Funding Rates
Outi Kauppinen, Tekes, Rome 28 Oct 2015

16. Outi Kauppinen, Tekes, Rome 28 Oct 2015
One project — one funding rate….. almost!
Research and Innovation Action (RIA)
Coordination and Support Action (CSA)
Direct costs
100 %
Indirect costs
25 % flat-rate
Total
All activities and all beneficiaries
100 euros
25 euros
125
Innovation Action (IA)
Direct costs
70 % (100%)
Indirect costs
25 % flat-rate
Total
Profit beneficiaries
70 euros
17,5 euros
87,5
Non-profit beneficiaries
100 euros
25 euros
125
Outi Kauppinen, Tekes, Rome 28 Oct 2015

17. Outi Kauppinen, Tekes, Rome 28 Oct 2015
IA: what about private universities. Profit or non-profit? How do you know?
Outi Kauppinen, Tekes, Rome 28 Oct 2015

18. Outi Kauppinen, Tekes, Rome 28 Oct 2015
Estimated Budget and Transfers
Outi Kauppinen, Tekes, Rome 28 Oct 2015

19. Estimated Budget and Budget Transfers (GA Art. 4)
The estimated budget for the action is set out in Annex II
The estimated budget breakdown indicated in Annex 2 may be adjusted by transfers of amounts between beneficiaries or between budget categories (or both). This does not require an amendment according to Article 55, if the action is implemented as described in Annex 1.
The project has to be the same as evaluated.
Outi Kauppinen, Tekes, Rome 28 Oct 2015

20. Outi Kauppinen, Tekes, Rome 28 Oct 2015
Questions
We want to split the costs of one subcontract between the partners. Ok?
Can the coordinator book hotels and plane tickets for the consortium and then invoice the other partners?
The idea here is that costs are budgeted PER BENEFICIARY. Each is responsible for his/her own.
Outi Kauppinen, Tekes, Rome 28 Oct 2015

21. Outi Kauppinen, Tekes, Rome 28 Oct 2015
H2020 Eligible and Ineligible Costs
Outi Kauppinen, Tekes, Rome 28 Oct 2015

22. Types of costs: Direct and indirect (Art. 6.2)
Direct costs are specific costs directly linked to the performance of the action and which can therefore be directly booked to it.
Indirect costs are costs that cannot be identified as specific costs directly linked to the performance of the action.
Salaries
Electricity
Water
Audit certificate
Admin services
Travel
Outi Kauppinen, Tekes, Rome 28 Oct 2015

23. Outi Kauppinen, Tekes, Rome 28 Oct 2015
DIRECT COSTS
INDIRECT COSTS
Actual costs
Real. Not estimated or budgeted
Flat-rate
Calculated by applying a percentage fixed in advance (25%) to other types of eligible costs. The following costs are excluded from the calculation:
-subcontracting
-in-kind contributions provided by third parties which are not used on the beneficiary’s premises
-costs of providing financial support to third parties (if applies)
-costs from specific cost categories (unit or lump-sum costs) that include indirect costs
Unit costs
a) direct personnel costs of SME owners/natural persons not receiving a salary (calculated by the Com)
b) direct personnel costs calculated by the beneficiaries in accordance with their usual cost accounting practices (average personnel costs)
Lump sum costs
Global amount deemed to cover all costs of the action or a specific category of costs.
Outi Kauppinen, Tekes, Rome 28 Oct 2015

24. General eligibility criteria (Art. 6.1)
For actual costs
For unit costs
Actually incurred by the beneficiary
Incurred in the project period
Indicated in the budget
Incurred in connection with the action as described in Annex 1
Identifiable and verifiable, recorded in the accounts
Complying with the applicable legislation
Reasonable, justified and complying with the principle of sound financial management (in particular regarding economy and efficiency)
Calculated correctly
Actually used in the period
Necessary for implementing the action
Number of units must be identifiable and verifiable
Outi Kauppinen, Tekes, Rome 28 Oct 2015

25. Ineligible costs (Art. 6.5)
In particular:
Costs related to return on capital
Debt and debt service charges
Provisions for future losses or debts
Interest owed
Doubtful debts
Currency exchange losses
Bank costs charged by the beneficiary’s bank for transfers from EU
Excessive or reckless expenditure
Deductible VAT
Costs incurred during suspension of the implementation of action
Costs declared under another EU grant
Outi Kauppinen, Tekes, Rome 28 Oct 2015

26. Budget for the proposal and budget categories
Research and Innovation Actions, Coordination and Support Actions
Innovation Actions
Get a new version of the budget template.
Outi Kauppinen, Tekes, Rome 28 Oct 2015

27. (A) Direct costs – personnel costs (Art. 6.2.A)
Personnel working for the beneficiary under an employment contract and assigned to the action
Costs for natural persons working under a direct contract with the beneficiary
If under the beneficiary’s instructions and on the beneficiary’s premises
If the result carried out belongs to the beneficiary
The costs are not significantly different from ”normal” personnel costs
Costs of personnel seconded by a third party against payments
Costs of owners of SMEs not receiving a salary (unit costs)
Costs of beneficiaries that are natural persons not receiving a salary (unit costs)
Outi Kauppinen, Tekes, Rome 28 Oct 2015

28. (A) Direct costs – personnel costs
Limited to salaries, social security contributions, taxes and other costs included in the remuneration, if due to national law or employment contract
Non-profit legal entities: also additional remuneration (payments on top of the usual remuneration, resulting in a higher hourly rate) and depending on the participation in a specific EU project
Personnel costs based on the last closed financial year
Outi Kauppinen, Tekes, Rome 28 Oct 2015

29. (A) Direct costs – personnel costs
Additional remuneration
Option only for non-profit legal entities
Directly linked to the participation in the EU action = the researcher would not have received it if she/ he had not participated in the action
Paid for additional work or expertise, fx ”for being Head scientist in the EU project xy”
Part of the normal remuneration practices
Criteria used to calculate the extra payments are objective and generally applied by the beneficiary
Capped at EUR per year (pro rata)
Outi Kauppinen, Tekes, Rome 28 Oct 2015

30. (A) Direct costs – personnel costs
Hourly rate = Actual annual personnel costs
Number of annual productive hours
a) hours
b) individual annual productive hours
c) standard annual productive hours
Method chosen at institutional level
Outi Kauppinen, Tekes, Rome 28 Oct 2015

31. Example for calculation of: Individual annual productive hours
Individual annual workable hours are calculated for the person concerned
365 days
— 104 days (Saturdays and Sundays)
— 22 days (annual leave)
— 8 days (public holidays)
= 231 days x 8 hours per day
= hours
Individual annual workable hours Plus Overtime Minus Absence
Outi Kauppinen, Tekes, Rome 28 Oct 2015

32. Example for calculation of: Standard annual productive hours
Standard annual workable hours are calculated for the entitity, per category, etc.
365 days
— 104 days (Saturdays and Sundays)
— 22 days (annual leave)
— 8 days (public holidays)
— 3 days (collective agreement)
= 228 days x 8 hours per day
= hours
Calculation of the number of standard annual productive hours 228 annual working days — 3 days average annual sick leave — 4 days of general training — 9 days other unproductive activities = 212 productive days Multiplied by 8 working hours per day = hours
Outi Kauppinen, Tekes, Rome 28 Oct 2015

33. Example for calculation of: Standard annual productive hours
This option can be used if:
The number of ”standard annual productive hours” is at least 90%of ”standard annual workable hours”
In our example:
90% of 1824= 1642
This means that the beneficiary may apply its number of standard annual productive hours
Outi Kauppinen, Tekes, Rome 28 Oct 2015

34. Outi Kauppinen, Tekes, Rome 28 Oct 2015
Questions
We would like to pay of one our MSc students a stipend to do part of our project’s work. Is this ok?
What tips would you have for a coordinator to budget personnel costs of the consortium?
The idea here is that costs are budgeted PER BENEFICIARY. Each is responsible for his/her own.
Outi Kauppinen, Tekes, Rome 28 Oct 2015

35. Question What information should a timesheet include?
The idea here is that costs are budgeted PER BENEFICIARY. Each is responsible for his/her own.
Outi Kauppinen, Tekes, Rome 28 Oct 2015

36. Outi Kauppinen, Tekes, Rome 28 Oct 2015
Template from the AGA. Not mandatory – you may use your own, but make sure it includes all relevant info.
Outi Kauppinen, Tekes, Rome 28 Oct 2015

37. (B) Direct costs – other direct costs (Art. 6.2 D)
Travel costs and related subsistence allowances
Durable equipment and infrastructure (NB usually only depreciation)
Costs of other goods and services
Capitalised and operating costs of ‘large research infrastructure’
Outi Kauppinen, Tekes, Rome 28 Oct 2015

38. (B) Direct costs – other direct costs (Art. 6.2 D)
Travel costs and related subsistence allowances
Durable equipment and infrastructure (NB usually only depreciation )
Costs of other goods and services
Capitalised and operating costs of ‘large research infrastructure’
Outi Kauppinen, Tekes, Rome 28 Oct 2015

39. (B) Other direct costs: costs of other goods and services
If purchased specifically for the action (!) and purchased according to best value or lowest price (if appropriate)
If contributed in kind against payment
For instance:
Consumables and supplies
Dissemination costs (e.g. open access) and conference fees
Translation services
Costs of intellectual property rights, incl. protecting results
Internal invoices might be eligible
NEW: certificates on the financial statements (CFS) when required
If beneficiary normally considers these costs as indirect costs, the costs cannot be charged as direct costs in Horizon 2020
Outi Kauppinen, Tekes, Rome 28 Oct 2015

40. Outi Kauppinen, Tekes, Rome 28 Oct 2015
Question
What about open access costs after the project has ended? Are they eligible?
Can we employ a patent attorney to help us?
Outi Kauppinen, Tekes, Rome 28 Oct 2015

41. (C) Direct costs – subcontracting (6.2.B)
Fulfil the general conditions for eligibility of costs
Cover tasks described in Annex 1
Indicated in the budget of Annex 2
Best value for money, or, if appropriate, lowest price
Avoid any conflicts of interest
NEW: the Commission may approve subcontracts during reporting even if the Annex 1 has not be amended (beneficiary’s own risk, though)
Outi Kauppinen, Tekes, Rome 28 Oct 2015

42. Outi Kauppinen, Tekes, Rome 28 Oct 2015
(D) Direct costs of providing financial support to third parties (Art. 15)
Only when foreseen in the work programme
Cascading grants: Third party receives financial support (money) from the beneficiary
Usually max € per recipient
For ex. fellowships, seed money for start-ups or microloans
Prizes
Must be indicated in Annex 1
Outi Kauppinen, Tekes, Rome 28 Oct 2015

43. Outi Kauppinen, Tekes, Rome 28 Oct 2015
(E) Direct costs – costs of in kind contributions not used on beneficiary’s premises
These costs (E) are already included in the 'direct personnel costs' (A) and 'other direct costs' (B). They need to be declared specifically in this column so that they can be subtracted from the sum of direct personnel costs (A) and direct other costs (B) before the indirect costs (F) are calculated.
Outi Kauppinen, Tekes, Rome 28 Oct 2015

44. Outi Kauppinen, Tekes, Rome 28 Oct 2015
(F) Indirect costs (6.E)
25 % flat rate on direct costs minus:
subcontracting costs
costs of in-kind contributions incurred by third parties outside of the beneficiary’s premises
costs of providing financial support to third parties (if option applies)
costs from specific cost categories (unit or lump-sum costs) that include indirect costs
Outi Kauppinen, Tekes, Rome 28 Oct 2015

45. (G)Special Unit Cost covering direct & indirect costs
Costs for energy efficiency measure in buildings
Access costs for providing transnational access to researh infrastructures
Costs for clinical studies
The unit cost applies ONLY to actions with clinical studies.
Outi Kauppinen, Tekes, Rome 28 Oct 2015

46. Costs for clinical studies – unit cost
any clinical research involving a substantial amount of work related to the observation of, data collection from, or diagnostic or therapeutic intervention on multiple or individual patients):
direct personnel costs of the doctors and other medical personnel and technical personnel (including data managers) that conducted the study
direct costs of consumables used for the study;
direct costs of the medical equipment used for the study, including:
depreciation costs
costs of service contracts necessary for their functioning (including specific cleaning, maintenance and repair)
costs of other specific service contracts necessary for the study (including data analysis, if subcontracted)
indirect costs for the study.
Outi Kauppinen, Tekes, Rome 28 Oct 2015

47. Outi Kauppinen, Tekes, Rome 28 Oct 2015
From budget to Annex 2
Outi Kauppinen, Tekes, Rome 28 Oct 2015

48. What types of budgeting questions have YOU run into?
Outi Kauppinen, Tekes, Rome 28 Oct 2015

49. Outi Kauppinen, Tekes, Rome 28 Oct 2015
This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement No
Outi Kauppinen, Tekes, Rome 28 Oct 2015