Communication campaign Most common issues identified : analysis per cost category Antonio Requena Fernández FCH JU

1. Communication campaign Mostcommonissuesidentified: analysis per costcategory Antonio Requena Fernández FCH JU Financial Officer

2. Personnelcosts Hours dedicated to the project Personnel costs Hourly rate = X

3. Hourlyrate Salary Social security Pensioncontribution Total annualcosts Healthinsurance Total annualcosts Total annualcosts Otherstatutarycosts… Total annualcosts Total annualcosts Hourly rate of an employee = Annualproductivehours

4. Hourlyrate: Productivehours vs The time recordingsystemmustallowkeepingtrack of thisnumber of actual individual productivehours If actual productivehoursexceedsstandard use actual!!! Don’t use billablehours!!!

5. Overtime Overtimemay be accepted Thehourlyrateapplicabletothese «overtime» hours has to be calculatedseparatelyfromthehourlyrateapplicabletothe normal workinghours • In anyother case: eitherovertimenotpaidorthereisnotcleardistinctionbetween normal and overtimehours • Ifactuallypaidaccordingtobeneficiary’spolicyAND • Ifthereis a systemthatallowstheidentification of normal / overtimehoursworkedfortheproject • Thehourlyrateiscalculated: • Adding in thenumerator: normal costs + «overtime» costs (ifany) • Adding in thedenominator: normal hours + «overtime» hours

6. Hourlyrate: Productivehours

7. Hoursdedicatedtotheproject Thegolden rule: Claim ONLY actual hoursworkedontheproject Alternativeevidence Timesheets • Wholeduration of theproject • Mustgivethesamelevel of assurance as thetimesheets • Daily, weeklyormonthlybasis • Authorisedbyproject manager orother superior • To be assessedbytheauditors • Indication of allhoursworked, notonlyproject-relatedtasks • Project-relatedtasks: referencetothe WP/task in theDoW

8. Actual personnelcosts. Someerrors Personnelcosts Annualcosts Hours Personnelcosts = Hours X Productivehours + • Claim of more hoursthandedicatedtotheproject • Claim of more hoursthansubstantiatedbytimesheets

9. Actual personnelcosts. Someerrors Annualcosts Personnelcosts = Hours X Personnelcosts Hours Productivehours - • Timesheetsnotreliable (missingoneor more of thecompulsoryelements) • Claim of lesshoursthandedicatedtotheproject • Claim of lesshoursthansubstantiatedbytimesheets

10. Actual personnelcosts. Someerrors Personnelcosts Annualcosts Personnelcosts = Hours X Productivehours - Productivehours • Use of standardhoursinstead of actual whenthelatest are higher • Use of billablehoursinstead of productivehours

11. Averagepersonnelcosts Acceptabilitycriteriaforaveragepersonnelcosts • Based on the usual cost accounting practice of the beneficiary and consistently applied to their participations in the Framework Programme • Based on the actualpersonnel costs of the beneficiary as registered in its statutory accounts, without estimated or budgeted elements • They excludeany ineligible cost item and any cost claimed under other costs categoriesin order to avoid double funding • Number of productive hours shall correspond to usual management practice of the beneficiary and reflects its actual working standards

12. SME owners SME owners and other natural personwho do notreceive a salary Annual living allowancecorrespondingtotheappropriateresearchcategorypublished in the ‘People’ WorkProgramme of theyear of thepublication of thecalltowhichtheproposal has beensubmitted Country correction factor published in thesamedocument = Hourlyrate X 100 1 575

13. SME owners Example: SME ownerwithoutsalaryfrom Austria with 4 years of experience at the time of deadline of submission of a proposal 2009 Use thetoolavailable at CORDIS 54 300 €/year 102.2 = 35.23 €/h X 100 1 575

14. Subcontracting General rule: Beneficiaries shall implement the action and shall have the necessary resources to do it However, a subcontractor can be usedprovidedthat: • The tasks carried out do not concern : • The research work itself  Subcontracting between partners not allowed • Coordination tasks of the coordinator (distribution of funds, review of reports, monitoring of obligations…) • The tasks (not the subcontractor) are mentioned and justified in Annex I of the FCH JU grant agreement (otherwise request an amendment) • The procedure for selecting subcontractors must respect the principles of transparency, equal treatment and best value for money

15. Indirectcosts Actual indirect costs Beneficiarieswithananalyticalaccountingsystemthat can identifytheirindirectcosts and assignthemtothedifferentprojects and activities Simplified method Beneficiariesthatcannotagregatetheirindirectcosts at a detailedlevel (centre, department), butonly at thelevel of the legal entity Methods of calculation Flat rate 20% Industrywhoseaccountingsystems do notmake a distinctionbetweendirect and indirectcosts Non-profitpublicbodies, secondary and High Educationestablisments and researchorganisations (optional)

16. Actual & simplifiedmethod Indirectcostsare all those eligiblecosts which cannot be identified by the beneficiary as being directly attributed to the project, but which can be identified and justified by its accounting system as being incurred in direct relationshipwith the eligible direct costs attributed to the project

17. Actual indirectcosts Indirectcostsare all those eligible costs which cannot be identified by the beneficiary as being directly attributed to the project, but which can be identified and justified by its accounting system as being incurred in direct relationship with the eligible direct costs attributed to the project • Linked to the project itself? • Linked to EU-research projects in general? • Linked to research in general? • Including other activities such as teaching, production or sales? • Including all indirect costs at the level of the organization?