Financial aspects of ERC grants

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1 Financial aspects of ERC grants Stela Yovchevska European Research Council Executive Agency ERC.C.1 - Grant Preparation

2 Overview of eligibility of costs We fund 100% of total eligible and approved direct costs Specifities for programme IDEAS The eligibility criteria are established in the Financial regulation and Implementing rules, Rules for participation in FP7 projects and the General Conditions of the ERC grant agreement 2

3 Overview of eligibility of costs Rules laid down in the Financial Regulation : :EN:PD Implementing Rules: : :EN:PDF Rules for participation in FP7 projects: Regulation (EC) No 1906/2006: 001:0018:EN:PDF 3

4 Direct and indirect costs Criteria for distinction between direct and indirect costs: are these costs incurred solely to advance the work on the project? Indirect costs are costs which cannot be attributed directly to the project(example use electricity in an office in an University cannot be charged solely to a particular project) 4

5 Types of resources-personnel costs Description of resources Costs for personnel directly hired by the beneficiary and working under the sole supervision of the beneficiary The specific case of consultants Only costs for actual hours spent on the project(no teaching buy out) 5

6 Other direct costs-equipment, consumables Describe what equipment you need and why Attention -no brand names Depreciation calculated according to policy for depreciation of equipment Consumables-Clearly identified in relation to project objectives Publication costs-costs for dissemination of project results 6

7 Subcontracting According to Financial regulation where implementation of the action requires financial support to be given to third parties, the beneficiary of a grant may give such financial support if the financial support is not the primary aim of the action(project objective). According to implementing rules the beneficiary of grants shall award the contract to the tender offering best value for money: to tender offering the best price-quality ratio. According to the rules for participation where the grant agreement requires participants to carry out activities that benefit third parties, the participants shall advertise this widely and identify, evaluate and select third parties transparently, fairly and impartially. The conditions for giving such a support are defined in General conditions to the ERC grant agreement: Article II.7.2 requires beneficiaries to ensure that transparent bidding procedures are used before selecting a subcontractor 7

8 Travel costs Travel costs for team members Travel costs for team members For dissemination of project results Visit collaborators Consistent with the policy for travel Travel costs for collaborators What is the added value of their participation? Only non recurrent visits 8

9 Third Parties ❶ Third Parties making resources available Beneficiary reimburses the costs of the third party (and no profit) based on prior agreement ❷ Third Parties carrying out part of the work Subcontracting Entities covered by Special Clause 10 Multi-beneficiary projects 9

10 Ineligible costs VAT; Duties; Interest owed; Provisions for possible future losses or charges; Exchange losses, cost related to return on capital; Debt and debt service charges; 10

11 What happens if your project is selected for funding Invitation letter containing information on documents to be submitted After submission of these documents, grant preparation is concluded and we proceed to signature of the grant agreement 11

12 ERC Grant Agreement The specifics of ERC grant agreement ERC grant agreement is entered into with the Host Institution(not the PI) but the name, place and date of birth of the PI are mentioned If there are other legal bodies, apart from the HI who will participate in the implementation of the project, they are also mentioned The maximum EU contribution is fixed in the grant agreement and cannot be increased Also the amount for prefinancing and the amount to be placed in the Guarantee Fund(0,5% of the maximum EU contribution) are fixed 12

13 Processing a call within ERC Executive Agency Publication of Call Deadline Evaluation Inivitation to peparation phase Grant preparation and signature Payment of prefinancing Project implementation Ethical checking / evaluation Scientific Department Grant Management Dpt Unit C1 Grant Management Dpt Unit C2 13

14 Project implementation and control of costs When submitting claims for reimbursement only actual costs can be accepted Financial management progress report are required from our side each 18 months Scientific reports are to be sent each 30 months 14

15 Financial management reports 15

16 ERC Grant Agreement 16

17 Financial management reports 17

18 Accounting records-what can be checked -costs have been incurred solely for the intended purpose of the grant agreement -costs are actually incurred, processed, validated and approved within an accounting system and related internal control structure -claimed costs are incurred in line with the usual administrative and management practices of the Beneficiary 18

19 Accounting records-personnel costs Personnel costs charged relate to the costs of actual hours worked by the persons directly carrying out work under the project; Procedures related to the time recording system and internal controls regarding the time recording system; Payroll information; 19

20 Accounting records-other other direct costs what can be checked Official internal procedures for travels, purchases and inventory. Proofs of payment for other direct costs -invoices, delivery notes, purchase orders and proofs of payments. Costs have to be charged without VAT, which is a non-eligible cost under the grant agreement; Durable equipment- the depreciation is in accordance with the Beneficiary's usual accounting practices; Travel and subsistence invoices, approved travel order, procedure for approval of travel orders, proofs of payment, minutes of meeting, attendance lists; 20

21 Thank you! 21

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