Procedure

1. Mrs Marina ZANCHIDG ResearchDirectorate N International scientific cooperationE-mail: marina.zanchi@cec.eu.int

2. Proposal submission Evaluation, ranking and opening of negotiation for successful proposals Project negotiation Commission Decision for selection Contract signature Starting of the project with advance payment Procedure

3. Negotiation Finalised Opinion of the Programme Committee Commission Decision for the selection of the projects Individual Commitments Signature of the contract

4. Project Negotiation: contractors receive a letter with: The Evaluation Summary Report (ESR) Contract Preparation Forms (CPFs) (signature of CPFs at the end of negotiation) Description of work (Annex I) to be submitted with the CPFs

13. Participant = contractor A legal entity contributing to a project must have a contractual link with the Community It has some rights and obligations Exception to rule: subject to very restrictive rules Third parties Subcontractors (but these contributors are NOT participants) Contractor

14. Contractor shall ensure that the work to be performed can be carried out by them. Exception: where it is necessary to subcontract certain elements of the work, this should be clearly identified in Annex I Management activities should not be subcontracted Minor services may be subcontracted: which do not represent core elements of the project which cannot be directly assumed by contractors where necessary for the implementation of the project Subcontracting

15. Cost Reporting Models FC: actual direct and indirect costs (for SSA indirect costs 20% of total actual direct costs, except costs of subcontracts - all instruments) (New)FCF (variant of FC): actual direct costs + flat rate for indirect costs (20% of total actual direct costs, except costs of subcontracts - all instruments) AC: actual additional direct costs + flat rate for indirect costs (20% of total actual additional direct costs, except costs of subcontracts - all instruments) Financing

16. Cost reporting models General Rule:a legal entity applies the same cost model in ALL contracts established under FP6 except may move from AC to FCF/FC or from FCF to FC (“one way ticket”)

17. New : 1 - No more cost categories 2 - Costs must be : actual, economic and necessary for the project incurred during the duration of the project (exception: costs of final reports) recorded in the accounts of the contractor (or third parties) and must exclude indirect taxes, duties, interests, costs reimbursed in respect of another Community project, and not give rise to profit 3 - Total costs identified both in the A.3.1 form and Annex I Eligible costs

18. Active monitoringis essential Adequate management structures to deal with an increased level of autonomy and flexibility (dedicated management staff from the consortium) Recording and identifying costsin relation to the project Protecting, publishing and using the knowledge generated Managing a project

19. Core contract (standard with specifics of project - negotiated) timing, financing, reporting details of this project any special clauses specific to this project Annex I (technical tasks - the “project” - negotiated) technical details of this project – specific to it including budget and breakdown, subcontracting, third parties Annex II General Conditions (standard) (applicable to every instrument) Annex VI - Form CFinancial statement per activity. To be filled periodically by each contractor Contract: Content

20. Contractual link of the contractor with the Commission (New) Contract enters into forceupon both signatures of the contractor and Commission Project beginsthe first day of the month after the Commission signature of the contract Signature and entry into force

21. Periodic reports and final report to be submittedwithin 45 daysfollowing the end of each period (12 months) Types of report: Activity report Management report Distribution of the Community contribution between contractors Supplementary reports required by Annex to the Contract Audit certificates if required by the contract The Commission undertakes to evaluate reports within 45 days of receipt. The absence of a response within this delay does not imply approval by the Commission Reporting and deliverables

22. Distribution of pre-financing to contractor by Commission: within 45 days of the date of entry into force of contract High degree of flexibilityin the management of the EC financial contribution System of periodic advance payments (pre-financing) covering a reporting period plus the first six months of the following reporting period (normally 80% of the estimated EC contribution) Further payments based on the approval of the periodic reports Payment modalities

23. Payments and reporting schedule for an SSA(example of a 3 year contract) Activity report Reported costs Activity report Detailed work plan Reported costs Adjusted advance Activity report Detailed work plan Reported costs Adjusted advance Detailed work plan Initial advance 0 6 12 18 24 30 36 Months

24. Audit certificates by external auditor At the end of the project For public bodies – competent public auditor Audits by the Commission, Court of Auditors or external reviewers Audits

25. General information on FP6 http://europa.eu.int/comm/research/fp6/index_en.htm http://www.cordis.lu/nmp/find-doc.htm#coorguide Legal framework within FP6 Model contract : http://europa.eu.int/comm/research/fp6/working-groups/ model-contract/index_en.html Helpdesk http://www.ipr-helpdesk.org RTD-A03-Question-juridiques@cec.eu.int For more information

26. Marina ZANCHI Unit N4 - Administration and Finance DG RTD, Directorate N - International Scientific Co-operation, Square de Meeûs 8, Office SDME 1/76, Brussels. Phone +32-2-295 38 14 Fax +32-2-299 47 43 Email: marina.zanchi@cec.eu.int Thank you for your attention