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WORKS

WORKS. CONTRACT and FINANCE K.U.Leuven R&D Maria Vereeken Sofie Vanhorebeek. Overview. Contractual Issues Contract EC Funding Financial Issues Definitions Budget Division Reporting Special Issues Audit certificate Personnel Budget transfer. WORKS Contract (1).

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WORKS

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  1. WORKS CONTRACT and FINANCE K.U.Leuven R&D Maria Vereeken Sofie Vanhorebeek

  2. Overview • Contractual Issues • Contract • EC Funding • Financial Issues • Definitions • Budget Division • Reporting • Special Issues • Audit certificate • Personnel • Budget transfer

  3. WORKS Contract (1) • Contract No CIT3-CT-2005-006193 • Integrated Project • Signed between EC and coordinator: 29.04.2005 • Partners: acceed to the contract • Accession forms: • signed between coordinator and partners • one original set has been sent to the EC • Start date: 1June 2005 • Duration: 48 months

  4. WORKS Contract (2) • Reporting periods (=audit periods : to be discussed) • P1: from month 1 to month 12 • P2: from month 13 to month 24 • P3: from month 25 to month 36 • P4: from month 37 to month 48

  5. WORKS Contract : Funding (3) • Maximum EC contribution: 3.800.000 EUR • Payment: • pre-financing of 1.528.201 EUR • 85% of the EC contribution corresponding P1 and the first 6 months of P2 • Is paid to the coordinator: within 45 days from the date the EC is informed all partners acceeded to the contract • Transfer to the partners:see table • settlement of reporting period: P1, P2, P3 and P4 • EC contribution within 45 days after approval of the reports (in practice: P1 + 6-7 months)

  6. Finance: Eligible Costs • Necessary for the project • Incurred within the duration of project • Determined in accordance with usual accounting principles of organisation • Recorded in the accounts of the organisation • NOT eligible: VAT and other identifiable taxes

  7. Eligible costs:Direct and Indirect Cost • Direct Cost • Cost directly related to the project • E.g. : personnel hired especially for the work, travel to congress, meetings,… • Indirect Cost • Cost indirectly related to the project • E.g. : cost for buildings, water, electricity, phone, post, office material,… • For partners with AC en FCF cost model = indirect cost 20% • For partners with FC cost model = determine their own overhead percentage

  8. Division of Budget

  9. Examples of Direct Costs • Personnel : researchers allocated to the project • Travel : travel costs, hotel, meals,... • Other costs : • organisation of a conference, workshop, training, summer school,… • Data purchase • Other specific costs • Subcontracting : only if it is explicitely mentioned in the DoW • Audit : cost for audit certificate of internal or external auditor

  10. Reporting • Reporting periods: 4 • Each 12 months reporting • P1 : Costs between 01/06/2005-31/05/2006 • Reports include: • Scientific reporting and others • Cost statements: Form C • Audit certificate for each reporting (to be discussed) • Cost Budget Follow-up Table: for Management Report

  11. Reporting • Timing • Partners to coordinator: • Form C + cost budget follow-up table: electronic version within 15 days • Form C: approved by auditor (audit certificate) : within 30 days • Coord to EC: within 45 days of the end of reporting period • Reports assessed by EC within 45 days after reception • If EC has remarks, 45 days are suspended until necessary clarifications are made. • EC contribution within 45 days after approval of reports • Contribution = settlement of first year + 85% prefinancing of next 18 months (P2 + first 6 months of P3)

  12. Cost Budget Follow-up Table

  13. Special Issue: Audit Certificates • To reduce number of audit certificates • EC proposes Special Clause 32 • Certificate end of year 2 • Certificate end of project • Amendment procedure necessary to adapt special clause • Agreement of partners • Official request from coordinator to EC • Approval of EC = amendment to EC-contract

  14. Special Issue : Personnel – Time registration • Working time charged to the project should be recorded HOW? • By any effective tool in accordance with the contractor’s normal accounting rules • Timesheets can be a possibility, but not necessary if there is another reliable system in place • Number of productive hours a year? • Calculated according to the normal procedures (taking into account national holidays, illness, training,...)

  15. Special Issue: Personnel – Time registration • Example 1 : • Person X is dedicated to the project for 3 manmonths per year • Person X should record working hours in a way that is auditable. Verify whether labour cost charged to project = actual time spent on the project • Example 2 : • Person Y is dedicated to the project for 12 manmonths per year • If it is contractually laid down that this person is 100% involved in project, 12 manmonths are justified (no timesheets needed)

  16. Special Issue: Budget transfers - General • In theory : more flexibility for budget transfers in FP6 than in FP5 • In practice : • Details of the budget often in DoW = part of contract • Reporting is according to cost categories => deviations should be explained

  17. Special issue: Budget Transfer - Proposal • Transfers within an activity category (personnel, travel,..) • Inform the coordinator • Transfer <20% : OK • Transfer >20%: coordinator + partner: decision • Transfers between activity categories (RTD, training,..) • Transfer <20%: coordinator + partner: decision • Transfer >20%: coord./consortium + partner: decision To be approved by project officer?

  18. WORKS: finance - contacts • Contacts: • Monique Ramioul • Sandra Volders • Documentation: • www.cordis.lu/fp6/find-doc.htm • Guidelines on Financial Issues • Frequently asked questions

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