Rules for participation Legal & Financial issues Horizon 2020 Secure Societies Information Day Per Martin SCHMIDT - Head of Sector Isabella SAINI - Financial Officer Brussels, 1st April 2014 NOT LEGALLY BINDING Conditions for Participation* Minimum conditions Standard collaborative actions: • At least three legal entities each established in a different Member State or an Associated Country independent from each other (art.9 of RfP) • Participation open for all legal entities established in third countries and for international organisations. Restrictions only possible if introduced in the work programme (art.7 of RfP) Derogation: One legal entity established in a Member State or in an Associated Country in case of: • Justified cases provided for in the work programme or work plan • Coordination and support actions • SME instrument * cf. Rules for Participation H2020 (RfP) http://ec.europa.eu/research/participants/data/ref/h2020/legal_bas is/rules_participation/h2020-rules-participation_en.pdf NOT LEGALLY BINDING Eligibility for funding* Who is eligible for funding? Any legal entity established in a Member States or associated country or created under Union law; Any international European interest organizations; Any legal entity established in a third country identified in the Work Programme If a legal entity established in third countries or an international organisation are not eligible for funding a derogation is possible provided that at least one of the following conditions is fulfilled: - participation deemed essential in the action by the Commission or - when provided under a bilateral scientific and technological agreement *(cf. art.10 of RfP) NOT LEGALLY BINDING Validation of legal entities in Horizon 2020 Process overview Register New Participants via the Beneficiary Register on the Participant Portal Core Data H2020 On basis of documents REA VS & DG BUDG validate data Validation Attribution of status and validated PIC number LEAR Mandatory LEAR nomination process on basis of blue ink signature FVC If needed, Financial Viability Check NOT LEGALLY BINDING Validation Validation of legal entities in Horizon 2020 • The validation of a participant is unique and valid throughout the entire H2020 programmes 40.000 FP7 validated entities are migrated into H2020 During the validation of a legal entity, the REA Validation Service (VS) verifies: (i) legal existence (ii) H2020 status of an applicant (iii) the financial viability (when required) • Updates of validated data are handled as a priority • Validation is performed on the basis of supporting documents • Exception: (1) Research organisations - based on self-declaration and (2) SME - based on SME questionnaire NOT LEGALLY BINDING LEAR Legal Entity Appointed Representative (LEAR) • Under H2020 the LEAR nomination is mandatory • LEAR is the only actor approved by the EC • LEAR's mandate has been extended: (i) Nominates persons who act as legal representatives and signatory for the organisation (ii) Notifies the EU of changes in legal data / status (iii) Submits FVC documents if required (iv) Nominates persons who sign financial statements NOT LEGALLY BINDING FVC Financial Viability Check • FVC takes place after legal validation is completed • The financial capacity is checked if: The beneficiary is a (non-public) coordinator The requested maximum grant amount for the action is ≥ 500.000 € FVC no longer required for all other beneficiaries requesting ≥ 500.000 € ! NOT LEGALLY BINDING Horizon 2020 model Grant Agreement* (1/4) H2020 A single document with all provisions Core text General conditions Annex II Specific provisions Annexes III FP7 * http://ec.europa.eu/research/participants/data/ref/h2020/mga/gga/h2020-mga-gga-multi_en.pdf NOT LEGALLY BINDING Horizon 2020 model Grant Agreement (2/4) Novelty & Simplification: Full Electronic Communication Electronic signature of: • Grant Agreement (GA) • Amendments to the GA • Financial Statements and Technical reports Communication between the Commission and the beneficiaries: • Via the Participant Portal • Electronic-only submission of reporting NOT LEGALLY BINDING Horizon 2020 model Grant Agreement (3/4) Structure of the GA Chapter 1: General • Subject of the agreement Chapter 2: Action • Action, duration and budget Chapter 3: Grant • General and Specific Eligibility conditions & Budget categories Chapter 4: Rights and obligations • • • • Implementing the action: resources, in-kind contributions, subcontracts Grant administration: reporting, payments, and audits Background and results: access rights, protection of results, exploitation, dissemination Others: gender equality, ethics, confidentiality Chapter 5: Division of roles • Roles and responsibilities, internal arrangements (e.g. consortium agreement) Chapter 6: Rejection, reduction, penalties, termination, etc. • Rejection, reduction, recovery and penalties • Liability for damages • Suspension and termination of the action Chapter 7: Final provisions • Accession to GA, entry into force, amendments, applicable law NOT LEGALLY BINDING Horizon 2020 model Grant Agreement (4/4) Annexes to the Grant Agreement Annex 1: Description of the action (DoA) Annex 2: Estimated budget of the action Annex 3: Accession Forms Annex 4: Financial statements Annex 5: Certificate on the financial statements Annex 6: Certificate on the methodology Shortening Time To Grant (1/2) Maximum TTG of 8 months max 5 months for informing all applicants on scientific evaluation Starting from date of informing applicants of the outcome of the evaluation Starting from call deadline max 3 months* for signature of GA This is an important legal obligation resulting from the FR 2012 ! (for both parties: EC & consortium) * Special delay may apply following the results of the security scrutiny procedure ! Shortening Time To Grant (2/2) How to speed up the process compared to FP7 ? No more negotiations but preparation of the Grant Agreement Proposal format ready for quick grant preparation Legal entity validated in parallel to grant preparation Limited FVC (only coordinator grant amount ≥ 500,000 €) No more paper: e-communication & e-signature of grants This remains an important challenge for all involved parties ! NOT LEGALLY BINDING Funding rate H2020 vs. FP7 Maximum reimbursement rates Research and technological development activities (*) Network of excellence 50% 75% (**) Collaborative project (****) 50% 75% (**) Coordination and support action Demonstration activities Other activities One project = One rate 100% 50% 100% 100% (***) (*) Research and technological development includes scientific coordination. (**) For beneficiaries that are non-profit public bodies, secondary and higher education establishments, research organisations and SMEs (***) The reimbursement of indirect eligible costs, in the case of coordination and support actions, may reach a maximum 7% of the direct eligible costs, excluding the direct eligible costs for subcontracting and the costs of resources made available by third parties which are not used on the premises of the beneficiary. (****) Including research for the benefit of specific groups (in particular SMEs) • For all beneficiaries and activities in the grant • Defined in the Work Programme: • Up to 100 % of the eligible costs for research innovation actions (RIA); • Up to 70 % for innovation actions (IA) (exception for non-profit organisations – up to 100%) NOT LEGALLY BINDING Single indirect costs rate Simplifying project management 20% ? 60% ? Real ? Single model: 25 % Flat Rate Simplified? NOT LEGALLY BINDING Impact on the EU contribution Typical example 75 / 60 Funding Direct costs Indirect costs (60%) Total costs 100 60 160 Direct Indirect costs costs (25%) 100 / 25 Funding 100 25 Total costs 125 % EU EU contribution contribution 75% € 120 % EU EU contribution contribution 100% € 125 NB: In FP7, most Universities and more than a half of the Research Organisations applied the 60% flat-rate for indirect costs NOT LEGALLY BINDING Forms of costs and Budget categories NOT LEGALLY BINDING Personnel costs Novelties • Less requirements for time records Example: No time records for researchers working exclusively on the project • Salaries + social security charges + other costs included in the remuneration arising from national law/employment contract • Wider acceptance of average personnel costs • Acceptance of additional remuneration: Limited to non-profit legal entities Up to 8000 € / year / person working full-time exclusively in the action Subject to specific conditions NOT LEGALLY BINDING Payments One Pre-financing Time-to-Pay From 30 days The latest between starting date and entry into force 90 days From reception of periodic report 90 days From reception of final reports → Retention 5% of maximum grant amount for the Guarantee Fund → Based on real needs i.e. 100% of average grant amount per period and not 160% as in FP7 Interim Payments* → Based on financial statements → Limit = 90% of the maximum grant amount (Retention 10%) Payment of the Balance* * NB: Submission of reporting via single, electronic submission (i.e. in one batch) Guarantee Fund • Continuity of the system applied in FP7: GF for H2020 is called "Participant Guarantee Fund" and takes over the FP7 GF • Considered as sufficient guarantee under the Financial Regulation 2012 • No additional guarantee or security may be accepted from participants or imposed on them • 5% contribution of the maximum grant amount is retained from the initial prefinancing • This contribution is released to the participants at the end of the action Controls and audits • Audit certificates Only for final payments when the maximum grant amount claimed on the basis of actual costs +average personnel costs is exceeding 325,000 € and only at the end of the action! • Certificates on the methodology • Optional certificates on average personnel costs • Ex-post audits Audits limited to 2 years after payment of the balance ADDITIONAL INFO Participant Portal http://ec.europa.eu/research/participants/portal/desktop/en/home.html Horizon 2020 Documents http://ec.europa.eu/research/participants/portal/desktop/en/funding/reference_docs.html Multi-beneficiary annotated General GA (cf. financial issues) http://ec.europa.eu/research/participants/data/ref/h2020/grants_manual/amga/h2020-amga_en.pdf Horizon 2020 On-line Manual http://ec.europa.eu/research/participants/portal/desktop/en/funding/guide.html# Questions? Research Enquiry Service http://ec.europa.eu/research/enquiries Thank you for your attention! … and good luck !
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