FP7 Simplification Workshop Community financial contribution

1. FP7 Simplification WorkshopCommunity financial contribution Brussels, 8 September 2005

2. Forms of EC grant Three types of funding: • Lump sum • Flat rate, including scale of unit costs • Reimbursement of actual eligible costs Objective: Extended use (where relevant) of lump sum and flat rate financing schemes: • General use of lump sum financing and flat rate (scale of unit costs) for certain actions • Move to periodic release of fixed lump sums for Networks of Excellence (NoEs) • Combined use of flat-rates/lump sums for certain costs and reimbursement of eligible costs

3. Lump sum Lump sum: • Does not require justification of eligible costs • Is paid according to assessment of criteria/ indicators/ deliverables… • May be used to support an entire project • May be used to cover specific parts of a project supported through reimbursement of eligible costs Lump sum and funding schemes (as proposed in WP for FP7 simplification): • Some Coordination and Support Actions • Some Supports for training and career development of researchers (Marie Curie actions) • Networks of Excellence (NoEs)

4. Flat rate financing Flat-rate : • Does not require justification of eligible costs • May be used to support the entire project when it takes the form of a scale of unit costs • When taking the form of a scale of unit costs, calculated and paid according to the scale • May be used to cover specific parts of a project supported through reimbursement of eligible costs (e.g. indirect costs) Scales of unit costs and funding schemes (entire project) (as proposed in WP for FP7 simplification): : • individual projects for ERC, in particular • some collaborative research projects • some supports for training and career development of researchers (Marie Curie actions) (as an alternative to reimbursement of eligible costs)

5. Reimbursement of eligible costs Reimbursement of eligible costs: • Requires justification of eligible costs • May be used to support an entire project • May be combined with the use of pre-set lump sums and/or flat rates for certain items of a project Reimbursement of eligible costs and funding schemes (as proposed in WP for FP7 simplification):: • Collaborative research projects • Research projects for the benefit of specific groups (cf “CRAFT”) • Some Coordination and Support Actions • Some Supports for training and career development of researchers (Marie Curie actions) As an alternative to scale of unit costs (flat rate financing) for • Individual projects (cf ERC) • some collaborative research project (STRePs) ? • some supports for training and career development of researchers (Marie Curie actions) ?

6. Simplifying reimbursement of eligible costs Simplify the definition of eligible costs (as proposed in WP for FP7 simplification): • Eliminate cost reporting models used in previous FPs • Possibility for any participant to charge its direct and indirect costs • Costs determined and used according to the usual accounting and management principles/practices of the contractors for the sole purpose of achieving the project’s objectives, in implementing principles of economy, efficiency and effectiveness • Direct eligible costs: declared according to contractors’ usual accounting and management practices • Indirect eligible costs: participants can either: - opt for a flat rate deemed to cover their indirect costs (20% of their direct eligible costs, except those of subcontracting) - or declare their real indirect eligible costs

7. Simplifying reimbursement of eligible costs Simplify the used support rates • Condition: guaranteeing an equivalent level of financing to that obtained in identical circumstances under FP6 Proposal in WP for FP7 simplification • Support rates determined per type of activity • As a general rule, Community contribution will cover eligible costs, based on eligible costs/ receipts declared by the consortium, not per participant • General rule applies, for any type of activity, for public non-profit or non-commercial bodies (=entities with no economic activities) • Support rates within the limits established by (revised?) State-aid rules

8. Simplifying reimbursement of eligible costs Other issues (as proposed in WP for FP7 simplification): • Audit certificates: • requested number per contract and contractor to be rationalised by taking into account specificities of each action • Duration of reporting periods • to be rationalised by taking into account specificities of each action