FP7 Rules for Participation and contractual aspects

1. FP7 Rules for Participation and contractual aspects Mag. Carla Chibidziura FFG – European and International Programmes 02.07.2008 – FP7 Energy

2. Overview • Rules for Participation • Contractual Aspects

3. Rules for Participation I • Any undertaking, • university or research centre • or other legal entity, • whether established in a Member State or associated country, or in a third country, • may participate in an indirect action • provided that the minimum conditions have been met (Article 4, para. 1)

4. Rules for Participation II • Article 5 - Minimum Conditions: • at least 3 legal entities must participate, each of which must be established in a Member State of the EU or in an Associated Country (AC) (not 2 in the same Member State or AC) • all 3 legal entities must be independent of each otherwithin the meaning of Article 6 • neither is under the direct or indirect control of the other or under the same direct or indirect control as the other

5. Rules for Participation III • participation of 1 legal entity • (Not in case of coordination of research activities.) Article 8- Minimum Condition for Coordination and support actions (CSA), and training and career development of researchers:

6. Rules for Participation IV • Legal entity: means any natural person, • or any legal person created under • national law or under • Community law or • international law, • which has legal personality

7. Rules for Participation V • If one of the participants is the • JRC (Joint Research Centre of the EC), or an • international European interest organisation (EEIG) or an • entity created under Community law, • it shall be established in a Member State or AC other than any Member State or AC in which another participant in the same indirect action is established.

8. Rules for Participation VI • Associated Country (AC): • means a third country which is party to an international agreement with the Community, under the terms or on the basis of which it makes a financial contribution to all or part of FP7 • At the moment there are 11 ACs to FP7: • Liechtenstein • Macedonia • Montenegro • Norway • Serbia • Switzerland • Turkey • Albania • Croatia • Iceland • Israel

9. Rules for Participation VII • Cooperation Activities dedicated to International Cooperation Partner Countries (ICPC) • at least 4 legal entities; • at least 2 of them must be established in Member States or Associated Countries (AC), but not established in the same Member State or AC; • at least 2 of them must be established in ICPC, but not established in the same ICPC unless otherwise specified in the work programme; • all 4 legal entities must be independent of each other

10. Overview • Rules for Participation • Contractual Aspects

11. Contractual Aspects I • Before Submission of the Proposal • PIC (Participant Identification Code) • all participants in FP7 will be assigned a PIC • should already be used for proposal submission • PIC can be used 48 hours after registration in URF • URF (Unique Registration Facility) • ADVANTAGE: every organisation needs to register only once for all FP7 proposals and projects • LEAR (Legal Entity Appointed Representative) • correspondent towards the Commission on all issues related to the legal status of the entity

13. Contractual Aspects II • Obligations • Specific obligations of the coordinator • intermediary for communication with EC • administration of the financial contribution • reviews and transmits the reports to EC • General obligations for all the beneficiaries carry out the work to be performed, as identified in Annex I (DoW) and in accordance with the specifications of the GA and its Annexes • Technical collective responsibility (but not financial)

14. Contractual Aspects III • Negotiations • Beginning: “Letter of invitation to negotiations“ • Coordinator negotiates with the Project Officer (PO) representing the European Commission • Aim of negotiations: • technical side: refining of Description of Work (Annex I) detailed objectives, working/time plan, deliverables • legal and financial side: agreement on budget, total (eligible) costs and reimbursement, pre-financing

15. Contractual Aspects IV Grant Agreement (GA) • End of negotiations: Signing of the GA • Enters into force as soon as the European Commission and the Coordinator signed the GA • Defines the rights and obligations of the beneficiaries

16. Contractual Aspects V • Consortium Agreement (CA) • Mandatory for all projects (unless specifically excluded by the terms of the call for proposals) • Provides the legal basis for the details of the internal relationship and responsibilities between the beneficiaries • Should be finalised before the GA is signed • Each beneficiary should have entered into the CA before acceding the GA

17. Eligible Costs actual, incurred by the beneficiary, during the duration of the project, determined in accordance with the usual accounting principles of the beneficiary recorded in his accounts, for the purpose of achieving the project objectives, indicated in the estimated budget Non-eligible Costs indirect taxes (VAT), duties, interest owed and debt, provisions for possible losses or charges, exchange losses, costs related to return on capital, costs declared in another EC project, excessive or reckless expenditure Contractual Aspects VI Eligible/Non-eligible Costs

18. Direct costs eligible costs which can be attributed directly to the project and identified as such in accordance with the beneficiary‘s accounting principles personnel costs Indirect costs eligible costs not directly attributed to the project but in direct relationship with the project “Overheads“ Contractual Aspects VII Direct/indirect costs

19. Contractual Aspects VIII a • Upper funding limits (direct costs) for CP • Research activities – general reimbursement – 50% • SME – 75% • Non-profit public bodies – 75% • Universities and other educational org. – 75% • Research organisations – 75% • Demonstration activities – 50% • Other activities – 100% • Management activities (part of other activities) – 100% • Training activities (part of other activities) – 100%

20. Contractual Aspects VIII b • Upper funding limits (Overview)

21. Contractual Aspects IX • Funding of indirect costs (“Overheads“) • Real indirect costs of the project (indicated that the organisation has an analytical accounting system) • Simplified method can be used if: • based on actual costs from the last closed accounting year • follows the usual accounting principles and practices • direct ineligible costs (VAT, etc.) can be identified and excluded • at least allows for the allocation of the overheads at the level of the legal entity to the individual projects by using a fair "driver“ No previous registration/certification by the Commission required • Flat rate (20%) • Transitional flat rate (60%) – only applicable if the organisation is a SME, university or other research organisation and unable to identify its real indirect costs (until 2010, then at least 40%) Coordination and Support Actions (CSA): Max. 7% of direct costs

22. Contractual Aspects X • Certificate on the Financial Statements (CFS) • Mandatory for all beneficiaries for all interim or final payments each time the cumulated EC contribution is not yet certified and ≥ € 375.000 EXCEPTIONS: • Projects ≤ 2 years – if total contribution ≥ € 375.000 only one CFS at the final payment • When Certificate of the Methodology (CoM) is accepted by EC, no CFS for interim payments needed

23. TIP: • FFG-Akademie (for Austrian beneficiaries) • Newcomer • Project development and proposal • Project management in FP7

24. Legal and Financial Issues • Contact: • Mag. Carla Chibidziura • FFG European and International Programmes • Tel: +43 (0)5 7755 - 4005 • carla.chibidziura@ffg.at • Mag. Martin Baumgartner • FFG European and International Programmes • Tel: +43 (0)5 7755 - 4008 • martin.baumgartner@ffg.at