Slope wp9 - task 9.2, overview on the finacial guidelines by Graphitech
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The document provides an overview of key financial guidelines and obligations for beneficiaries and coordinators under an EU grant agreement. It discusses topics such as signature and start date, reporting periods, bank account requirements, obligations of coordinators and beneficiaries, eligible and non-eligible costs, payment modalities, budget transfers, reporting, and audit certificates. The coordinator acts as an intermediary between the EU and beneficiaries, receives and distributes funding, monitors compliance, and reviews reports. Beneficiaries must inform the coordinator of staff changes, provide needed data, and attend meetings. Costs must be eligible, identifiable, verified and incurred during the project duration.
Slope wp9 - task 9.2, overview on the finacial guidelines by Graphitech
- 1. Overview on the Financial Guidelines Logo Raffaele De Amicis Fondazione Graphitech Presented by:
- 2. 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
- 3. 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
- 4. 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
- 5. 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 prefinancing exceeds EUR 50,000
- 6. 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
- 7. 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
- 8. 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
- 9. Coordinator’s obligations (3) • Scientific coordination: • The scientific coordination and monitoring of subprojects and workpackages (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
- 10. Main obligations of beneficiaries 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 Inform coordinator & Commission of any changes or events affecting project Attend relevant meetings concerning monitoring & evaluation of project (e.g. project reviews) Avoid conflicts of interest
- 11. 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
- 12. 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)
- 13. 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
- 14. EU contribution -- Upper funding limits EU contribution Upper funding limits Policy Research and Policy Research and Innovation Innovation
- 15. EU contribution -- Upper funding limits EU contribution Upper funding limits Policy Research and Policy Research and Innovation Innovation
- 16. Payment Modalities 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
- 17. Eligible Costs Stated in Annex I (Indicative breakdown of the budget and the Community financial contribution between beneficiaries) Necessary for the implementation of the project Identifiable and verifiable, and recorded in the beneficiary’s accounts Actually incurred by beneficiary during project duration (except costs for final reports and CFS as well as for technical reviews) Reasonable and justified
- 18. Non-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
- 19. Eligible Direct Costs Personnel Three categories Subcontracting Travels and related subsistence costs Other specific direct costs Purchase costs of durable equipment Consumables and Supplies
- 20. Eligible Direct Costs - Personnel 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
- 21. Eligible Direct Costs - Subcontracting With whom one or more beneficiaries reach an agreement on business conditions A third party to carry out part of the work of the project without direct supervision of the beneficiary and without relationship of subordination What is a subcontractor
- 22. 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 conditions of transparency and equal treatment.
- 23. 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.
- 24. Eligible Direct Costs – Other Costs 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
- 25. Indirect Costs Different funding rates for different organisation types calculated as % of personnel costs, …see REA
- 26. 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,
- 27. 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
- 28. Budget Transfer 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
- 29. Reporting 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
- 30. Reporting Progress reports contains: information about progress of work, including achievements and attainment of milestones resources employed departures from work schedule
- 31. Reporting For interim and final payments: the financial statements from each beneficiary together with summary financial report consolidating Community contribution claimed by all beneficiaries
- 32. Reporting Final report comprising final publishable summary report results, conclusions and socioeconomic impact of the project
- 33. Reporting Reports to be submitted through the coordinator in one original (paper) copy and one electronic copy • 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. Commission has 105 days to evaluate and execute the corresponding payment • No tacit approval of reports Commission can reject reports and deliverables even after the time-limit for payment