Negotiations feedback for successful project preparation. ERANIS workshop, , Minsk

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1 Negotiations feedback for successful project preparation

2 Negotiations procedure Feedback from the Commission on the project plan issues that need to be explained in more detail Request to formulate Annex I from the proposal Request to fill in the Grant preparation forms (GPF) Negotiations meeting Contract

3 Nature of the negotiations prepare an ideal proposal for the Commission Workplan More detailed task descriptions More detailed deliverable descriptions Detailed overview of project results and connections between different results Implementation possibilities of project results and the market potential

4 Nature of the negotiations II Team overview People involved Main job functions in the project (refer to tasks) Availability of full time (%) Tomi Kauppinen WP4 Leader Research and development in WP 1, WP 2, WP 3, WP 4, WP5, WP6 50% Tuukka Ruotsalo WP4 Deputy leader Research and development in WP 1, WP 2, WP 3, WP 4, WP5, WP6 50% Eetu Mäkelä Research and development in WP 1, WP 2, WP 3, WP 4, WP5, WP6 20% Antti Nurminen Research and development in WP 1, WP 2, WP 3, WP 4, WP5, WP6 20% Eero Hyvönen Research and development in WP 1, WP 2, WP 3, WP 4, WP5, WP6 10%

5 Nature of the negotiations III Managem ent Technical consu ltant Professor Senior Researcher Researcher Post Doc / Researcher Engineer J:r researcher / PhD student Partner Partner Partner Partner Partner Partner Partner Partner

6 Problems within the negotiations 1. partners have sent the wrong cost model, which has to be changed. This will result in recalculating the entire budget 2. Partners have sent the wrong person-month rate, now they cannot support it with the cost categories of individual experts. 3. Partners will delay with everything

7 Contract Signature by Coordinator &Commission Accession of beneficiaries via Form A Later accession of beneficiaries via Form B Entry into force upon signature by Coordinator & Commission Consortium Agreement mandatory (except if excluded by Call)

8 Getting the money pre-financing Shall be transferred by the Commission not later then 45 days after the entry into force of the grant agreement The coordinator will distribute it to the partners when the partners have signed the Form A Accession to the contract. The amount of pre-financing will be determined within the negotiations. As a general rule it should be equivalent to 160 % of the average EU funding per period. 5 % of the pre-financing will be kept by the Commission to the Guarantee Fund. This will be returned to the Consortium with the final payment no need for financial guarantees! 10 % retention of the total payment will always be kept by the Commission until the last payment.

9 Project management Researchers Researchers Large Large enterprises enterprises SMEs SMEs Time Time horizon horizon 5-10 years 5-10 years weeks/months Indirect Indirect concern concern Best science Best technology Survival and competition Direct Directconcern concern Publications, next contract Best partners, deadlines Money, clients and shareholders

10 EU project management Low management hirachy due to virtual organisation Frequent monitoring, 3-6 month period Use of virtual workspaces (f.i. Delegation of the responsibilities to activity poles (work packages) Project Management Board meetings every 6 months Constant contact with project officer Review meetings hosted by the EC

11 Risk within international R&D projects Virtual organization, people do not subordinate directly to project coordinator Technological risks, R&D fails Financial risks, late payments, non-eligible payments Risks associated with partners people leave, death etc Market risks changing environment People do not communicate Risks associated with the EC project officer will change...

12 Project organization Project management board (Steering Committee): highest decision body representing all the partners Advisory Board: supporting body Project manager: responsible for entire project management and coordination Scientific coordinator Work package leaders: responsible for managing specific tasks

13 Managing risks Consortium Agreement Study carefully project contract with annexes Project handbook Project reporting guidelines Progress tracking efficient reporting within the consortium Timesheets

14 Timesheets Fix the time worked for a specific project Is filled on a daily basis for each month The aggregated time indicated on timesheets should more or less follow the effort indicated in Technical Annex A person months consists of ca working hours

15 Gantt table Project is managed in correspondence to Gantt table (activities vs time table) The Commission is interested in receiving deliverables on time, in accordance with Technical Annex

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17 Consortium agreement The internal organization of the consortium including the decision making procedures Rules on dissemination and use and access rights The distribution of the EC financial contribution Penalties The settlement of internal dispute Confidentiality arrangements between the beneficiaries

18 Role of the coordinator Acts as the interface to the Commission Receive payments from the Commission Distribute payments to the Consortium Responsible for the financial management of the project Responsible for delivering the work Large role on WP leaders review the reports to verify consistency with the project tasks before transmitting them to the Commission; monitor the compliance by beneficiaries with their obligations under this grant agreement. Notify the Commission of the financial distribution

19 Role of the partner To maintain proper records To prepare and submit reports To carry out the work of the project To make appropriate internal arrangements consistent with the provision of Grant Agreement to ensure the efficient implementation of the project

20 Reporting to the European Commission After each 12 month and in the end of the project The periodic activity report The periodic management report The periodic report on the distribution of the Community s contribution (Coordinator) + several questionnaires by the Coordinator

21 Periodic activity report I Section 1 Project objectives and major achievements during the reporting period (Coordinator) general project objectives, show the project s current relation to the state-of-the-art Summarise the objectives for the reporting period, work performed, contractors involved and the main achievements in the period If applicable, comment on the most important problems during the period including the corrective actions undertaken

22 Periodic activity report II Section 2 Workpackage progress of the period For each workpackage, present information under the following headings: Workpackage objectives and starting point of work at beginning of reporting period Progress towards objectives tasks worked on and achievements made with reference to planned objectives, identify contractors involved Deviations from the project workprogramme, and corrective actions taken/suggested: identify the nature and the reason for the problem, identify contractors involved List of deliverables, including due date and actual/foreseen submission date List of milestones, including due date and actual/foreseen achievement date

23 Periodic activity report III Section 3 Consortium management (Coordinator) This section should summarise the status of the project, its management and follow-up activities, including information on: Consortium management tasks and their achievement; problems which have occurred and how they were solved Contractors: Comments regarding contributions, changes in responsibilities and changes to consortium itself, if any Project timetable and status, including an updated, frontlined barchart. Clarify changes and impact on the planned milestones, if any The section should also provide short comments and information on co-ordination activities in the period, such as communication between partners, project meetings, possible co-operation with other projects/programmes etc.

24 Plan for using and disseminating the knowledge - Section 1 - Exploitable knowledge and its Use This section will only present exploitable results, defined as knowledge What the exploitable result is (functionality, purpose, innovation etc.); Partner(s) involved in the exploitation, role and activities How the result might be exploited (products, processes) - directly (spin offs etc) or indirectly (licensing) on an individual basis or as a consortium/group of partners; Further additional research and development work, including need for further collaboration Intellectual Property Rights protection measures (patents, design rights, database rights, plant varieties, etc include references and details); Any commercial contacts already taken, demonstrations given to potential licensees and/or investors and any comments received (market requirements, potential etc.); Where possible, also include any other potential impact from the exploitation of the result (socio-economic impact).

25 Exploitable knowledge and its Use II

26 Plan for using and disseminating the knowledge Section 2 Dissemination of knowledge The overview table should be accompanied by a short description for each major activity (conference, exhibition, etc.) having taken place or planned since the last report.

27 Periodic management report I Section 1 - Justification of major cost items and resources A brief description of the work performed by each contractor during the period. Explanatory note on any major cost items such as important equipment purchases, major travel costs, large consumable items etc., justifying their necessity to the project. A tabular overview of budgeted costs and actual costs, by contractor and by major cost item including personnel (see Appendix 2, Table 3). For AC contractors, a tabular overview of all resources employed on the project and a global estimate of all costs. (own resources)

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29 Periodic management report II A tabular overview of budgeted. The budgeted personmonths should normally be taken from Annex I to the contract. For AC contractors, in addition estimate the number of person-months of permanent staff working on the project (FP6) A summary explanation of the impact of major deviations from cost budget and from person-month budget, with reference to Section 2 Workpackage progress of the accompanying Periodic activity report where the reasons for deviation from plan have been explained.

30

31 Periodic management report II Section 2 Form C Financial statement per activity for the contractual reporting period, to be completed by each contractor Declaration of eligible costs Declaration of receipts Declaration of interest generated Request for the EC financial contribution Audit certificates Conversion rates reporting in Euro Contractor s certificate

32 Periodic management report II Section 3 Summary financial report Include a summary report of total (direct + indirect) costs in euros as claimed by each contractor and activity type, for the reporting period (i.e. a summary of the individual contractor s Form C information).

33 Certification of costs A certificate on the financial statements shall be submitted for claims of interim payments and final payments when the amount of the Community financial contribution claimed by a beneficiary under the form of reimbursement of costs is equal to or superior to EUR , when cumulated with all previous payments for which a certificate on the financial statements has not been submitted. Certificates on the financial statements shall certify that the costs claimed and the receipts declared during the period for which they are provided, as well as the declaration of the interest yielded by the pre-financing meet the conditions required by this grant agreement

34 Certification of costs

35 Certification of costs The Commission may, at its sole discretion, accept at the request of a beneficiary, that it submits a certificate on the methodology for the calculation of costs, which it used to prepare its claims with regard to both personnel and indirect costs, and the related control systems. This certificate must be forwarded in the form of a detailed description verified as factual by its external auditor (Form E - Annex VII). When this certificate is accepted by the Commission, the requirement to provide an intermediate certificate on the financial statements for claims of interim payments shall be waived.

36 Timing of reports Art II.7. Reports and deliverables All reports and deliverables shall be submitted within 45 days following the end of the respective reporting period Art II.8. - Evaluation and Approval of Reports and deliverables The Commission undertakes to evaluate all other reports within 45 days of receipt. The absence of the response from the Commission within 45 days shall not imply approval by the Commission. The Commission may reject these reports even after the time limit for payment. The payment shall be made within 45 days from the acceptance of reports

37 Review meeting annual assessment of the results The review will assess the following: the degree of fulfilment of the project work plan for the period the degree of fulfilment of the deliverables the necessity of the resources that the contractors have employed the management aspects of the project the likelihood to achieve the results aimed at by the project the planning of the next period the plan for using and disseminating the knowledge

38 Thank you!

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