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Presented by: Raffaele De AmicisFondazione Graphitech

Overview on the Financial Guidelines

Overview of topics

1. Signature and accession

2. Reporting periods

3. Coordinator’s bank account

4. Obligations of the coordinator and beneficiaries

5. Community contribution and payment

6. Eligible costs

7. Budget transfers

8. Reporting

9. Audit certificates

10. Special conditions

GA: Signature, accession and start date

Entry into force of the GA after its signature by coordinator and Commission (day of last signature)

Accession of entities identified in Art. 1.2 by means of Form A (GPF’s forms) within 45 days of entry into force

If any entity does not accede → solution to be proposed by consortium → amendment to GA

Project start date = 1st day of month after entry into force of GA, unless fixed start date

Reporting Periods

Project divided into reporting periods

Duration to be fixed (Art. 4)• P1: M01 – M18• P2: M19 – M36

Reporting periods determine

periodicity of progress reports and financial statements

Coordinator’s bank account

Denominated in EUR

Account must allow the Community financial

contribution and related interest to be identified

Pre-financing remains property of the

Community until final payment

Commission shall recover from coordinator, for each reporting period, interest generated where the pre-

financing exceeds EUR 50,000

Main obligations of coordinator

Acts as intermediary between Commission and beneficiaries for any communication

Receives Community contribution on behalf

of beneficiaries and distributes it

Reviews reports & deliverables to verify

consistency with project tasks and work

done

Monitors compliance of beneficiaries with

their contractual obligations

Coordinator’s obligations (1)

• Intermediary for any communication between the Commission and any beneficiary

• Receives EU contribution on behalf of the beneficiaries and administers it

• Keeps record and financial accounts• Informs the Commission on the distribution of the funds• Reviews the report before transmitting them to the EC • Monitors the compliance by beneficiaries with their

obligations • Outsourcing is NOT possible

Coordinator’s obligations (2)

• Designing and maintaining partner specific templates for collecting input to the required EU documents;

• Implementing and maintaining of a project-specific database for reporting and controlling, including the adaptation of the structure after changes in the workplan and the consortium;

• Drafting and maintaining the dissemination and exploitation plan following the EC’s requirements;

• Preparing and post-processing of EC reviews from the consortium- side including support in the implementation of recommendations from the EC and reviewers,

• The administrative tasks involved in the preparation, executing and post-processing of major project meetings

Coordinator’s obligations (3)

• Scientific coordination: • The scientific coordination and monitoring of subprojects and work-

packages (including the activities as work package leader); • The supervision of project progress milestones and project global

critical path; • The scientific review of the work performed by the partners including

scientific deliverables and the coordination of internal progress reports; • Monitoring of progress with work packages, deliverables and milestones

and the work plan, including the verification of the quality, consistency and respect of deadlines;

• Research risk management;• The preparation of the scientific part of the reports and deliverables to

be submitted to the EU

Inform consortium and Commission through

coordinator of names and contact details of staff

working on project

Forward to coordinator data needed to draw up reports & deliverables, any other information requested by Commission or Court of

Auditors

Attend relevant meetings concerning monitoring & evaluation of project (e.g.

project reviews)

Inform coordinator & Commission of any changes or events affecting project

Avoid conflicts of interest

Main obligations of beneficiaries

Beneficiary’s obligations (1)

• Carry out the work of Annex I correctly and timely • Inform EC in due time on persons managing the work,

– any event which might affect the implementation of the project and the rights of the Community,

– any change regarding its legal, financial, organisational or technical situation,

– any circumstances affecting the conditions of participation.– Example : beneficiary is facing financial difficulties

• beneficiary goes under administration• beneficiary has been taken over

Beneficiary’s obligations (2)

• Provide the EC and Court of Auditors with all information if requested;

• Take part in meetings concerning the project; • Ensure compliance with state aid framework; • Take all measures to avoid commitments that

are incompatible with the obligations of the GA. • “NEW” - Designate a legal entity appointed

representative (LEAR)

Community contribution

Maximum contribution indicated in Art. 5

In this case, …

funding from 50% to 100% of total eligible costs per beneficiary,

indirect cost calculated according REA

Different funding rates for different activities or organisation types

EU contribution - Upper funding limits

EU contribution - Upper funding limits

One pre-financing paid to the coordinator

within 45 days following the entry into

force of the GA

•160% of average EU funding per period, but capped at 60% of maximum Community contribution

Interim payments based on financial

statements

•Pre-financing + interim payments limited to 90% of maximum Community contribution (retention of 10%)

Final payment = based on financial statements,

payment outstanding balance

Payment Modalities

Stated in Annex I (Indicative breakdown of

the budget and the Community financial

contribution between beneficiaries)

Necessary for the implementation of the

project

Actually incurred by beneficiary during project duration (except costs for

final reports and CFS as well as for technical

reviews)

Identifiable and verifiable, and recorded in the

beneficiary’s accountsReasonable and justified

Eligible Costs

exchange rate losses

resources made available to a beneficiary free of charge

(e.g. third-party contributions)

value of contributions in kind

indirect taxes and duties, including VAT (unless the

beneficiary can show that it is unable to recover it)

entertainment or hospitality expenses, except

those accepted by the Commission as being

absolutely necessary for carrying out the project

any cost incurred or reimbursed in respect of, in

particular, another Community, international or

national project

Non-eligible Costs

Three categories

Personnel

Subcontracting

Other specific direct costs

Travels and related

subsistence costs

Purchase costs of durable

equipment

Consumables and Supplies

Eligible Direct Costs

costs of the actual hours worked by the persons directly carrying out work under the project

such persons must:• Be directly hired by beneficiary• Work under the sole technical supervision and responsibility of the beneficiary• Be remunerated in accordance with the normal practices of the beneficiary

Eligible Direct Costs - Personnel

What is a subcontractor

to carry out part of the work of the

project without direct supervision of the beneficiary

and without relationship of subordination

With whom one or more

beneficiaries reach an

agreement on business

conditions

A third party

Eligible Direct Costs - Subcontracting

• Subcontracting of certain elements of work allowed if– necessity of subcontracting duly justified in Annex I and– tasks concerned and an estimation of the corresponding costs indicated

in Annex I

awarded according to best price-quality ratio, under conditionsof transparency and equal treatment.

Eligible Direct Costs - Subcontracting

(Art II 6)

Any subcontract for which the costs are to be claimed as eligible costs shall be awarded according to the principle of best value for money (best price-quality ratio), under conditions of transparency and equal treatment.

Subcontracting costs shall be in accordance with market prices.

Eligible Direct Costs - Subcontracting

the depreciation equipment corresponding to the duration of the project at the rate of actual use for the project

travel and subsistence allowances for personnel taking part in the project, in line with the beneficiary’s usual practices

dissemination of information

any financial guarantees (e.g. audit certificates)

specific costs incurred by coordinator for overall management of project and coordination of beneficiaries

Eligible Direct Costs – Other Costs

Different funding rates for different organisation

types calculated as % of personnel costs, …see REA

Indirect Costs

EU contribution – Method of calculation of indirect costs

• For all: – either actual overhead or simplified method – Standard flat rate of 20% of direct costs minus subcontracting

and 3rd parties not used at the premises of the beneficiary) • Special transitional flat rate (60% of direct costs minus

subcontracting and 3rd parties not used at the premises of the beneficiary) can only be used if the following criteria are fulfilled: – Non profit Public Bodies, Secondary and Higher Education

establishments, Research Organisations and SMEs – unable to identify real indirect costs,

Simplification measures

• Commission Decision of 24 January 2011 Article II.14 of the GA / Guide to financial issues

• Average personnel costs • SME owners who do not receive a salary

Beneficiaries may transfer budget amounts between themselves, provided work is carried out as described in Annex I

Coordinator shall notify any such transfer to Commission without unjustified delay

Budget Transfer

covers any information to be supplied in

response to a request by the Commission

format and layout shall conform to rules

communicated by the Commission

to be submitted to the Commission for each reporting period not later than 60 days after end of period

Reporting

information about progress of work, including achievements and attainment of milestones

resources employed

departures from work schedule

Reporting

Progress reports contains:

the financial statements from each beneficiary

together with summary financial report consolidating Community contribution claimed by all beneficiaries

Reporting

For interim and final payments:

final publishable summary report

results, conclusions and socio-economic impact of the project

Reporting

Final report comprising

• data in the paper copy shall be regarded as authentic• date of receipt of the paper copy shall be taken into

account for the time limits set out in agreement.

Reports to be submitted through the coordinator in one original (paper) copy and one electronic copy

• No tacit approval of reportsCommission has 105 days to evaluate and execute

the corresponding payment

Commission can reject reports and deliverables even after the time-limit

for payment

Reporting