FP7 Rules for Participation and contractual aspects Mag. Carla Chibidziura FFG – European and...

FP7 Rules for Participation and contractual aspects

Mag. Carla Chibidziura

FFG – European and InternationalProgrammes

02.07.2008 – FP7 Energy

Carla Chibidziura/EIP

Overview

Rules for Participation

Contractual Aspects


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)


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


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:


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


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.


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


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


Overview

Rules for Participation

Contractual Aspects


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


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)


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


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


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


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


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


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%


Contractual Aspects VIII b

Upper funding limits (Overview)


Contractual Aspects IXFunding 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


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


TIP:

FFG-Akademie (for Austrian beneficiaries)

Newcomer

Project development and proposal

Project management in FP7


Legal and Financial Issues

Contact:

Mag. Carla ChibidziuraFFG European and International ProgrammesTel: +43 (0)5 7755 - [email protected]

Mag. Martin BaumgartnerFFG European and International ProgrammesTel: +43 (0)5 7755 - [email protected]

FP7 Rules for Participation and contractual aspects Mag. Carla Chibidziura FFG – European and...

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