Kick-off meeting NERRI
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1 Kick-off meeting NERRI Cascais, 25 th -26 th March 2013 Agni Kortsidaki EUROPEAN COMMISSION DG Research & Innovation Unit B6 Ethics Sector Content Grant Agreement structure Participation Signature and entry into force Exceptional cases: subcontractors and third parties Amendments Guarantee Fund Reporting and payments Intellectual and Property Rights Project organisation and progress control 1
2 But before that Science in Society FP7 Capacities Science in Society Aim: to contribute to the implementation of the European Reseach Area and to help building a democratic knowledge-based society By stimulating the integration of scientific and technological effort By encouraging pan-european reflection and debate on science and technology and their relationship with society and culture By encouraging broader public engagement in scientific research (involvement of civil society) Science in Society Benefit for citizens: A key issue is the encouragement of societal dialogue on research policy; stimulating civil society organizations to become more involved in research; debating and promoting shared values, equal opportunities and societal dialogue Benefit for researchers: Special attention must go into improving communication between the scientific world and the wider audience of policy-makers, the media and the general public. This would partly be achieved by helping scientists and media professionals to work closer together 2
3 Responsible Research and Innovation (RRI) For, with and by society! We can only find the right answers to the challenges we face by involving as many stakeholders as possible in the R&I process "Research and innovation must respond to the needs and ambitions of society, reflect its values, and be responsible." Commissionner Máire Geoghegan-Quinn, Odense (Denmark), 23 April 2012 Mobilising and Mutual Learning Action Plans Promoting researcher's engagement with society Mobilising stakeholders for new partnerships Encouraging a two-way dialogue between researchers and other stakeholders Promoting a European Research Area of ethics Providing better access to research results 3
4 Emphasis on mobilising all relevant actors and on mutual learning in order to pool experiences and better focus their respective efforts on finding solutions that develop and use scientific and technological knowledge in the public interest RRI for engineering the brain and body: human enhancement Better knowledge about the human brain and body and means to model and intervene in it, affect our understanding of personal responsibility and behaviour The MML should elaborate on a European research agenda and explore policy issues that will need to be addressed in order to ensure that this field develops in accordance with fundamental values such as human dignity, equality, individual freedom and solidarity 4
5 Open Access in FP7 Beneficiaries funded by the Science in Society Programme are required to deposit peerreviewed articles resulting from projects to an institutional or subject-based repository, and to make their best efforts to ensure open access to these articles within 12 months. Model Grant Agreement CORE GA: Introductory part: GA no, title/acronym, funding scheme, signatories, list of Annexes (I to VII) Art. 1. Accession of other beneficiaries (+ CA) Art. 2. Scope Art. 3. Duration & start date Art. 4. Reporting periods and rep. language Art. 5. Max. Community financial contribution Art. 6. Pre-financing Art. 7. Special clauses Art. 8. Communication Art. 9. Applicable law and competent court Art. 10. Application of GA provisions Art. 11. Entry into force Dates, signatures 5
6 Model Grant Agreement Signature and entry into force GA enters into force on the day of the last signature (by the Commission) Contractual link of all beneficiaries with the Commission (Form A) Coordinator must ensure other beneficiaries sign within delays (Form A) Delays: 45 days Distribution of pre-financing to coordinator: within 30 days following date of entry into force of GA (used to be 45 days) Distribution of pre-financing to beneficiaries: when the minimum number of beneficiaries foreseen in the call have signed Form A- contract is valid- and only to them. No money without signed Form A Form A: must be signed by the legal representative of the given beneficiary as identified in the GA. Model Grant Agreement Signature and entry into force Project begins on the date established in the Grant Agreement The project start date can be before the GA enters into force (prior to signature by the Commission), if duly justified 6
7 Model Grant Agreement Coordinator Single entry point for communication (negotiations, payments, reporting, etc.) Beneficiaries General Rule Participant = beneficiary = legal entity Every legal entity contributing to a project has a contractual link with the Commission Exception to rule: subject to very restrictive rules Third parties Subcontractors The Coordinator Contractually, the Coordinator: Administers the EC Contribution Keeps the records and financial accounts Informs the EC of the distribution of Funds Reviews the reports to ensure consistency with the tasks foreseen Monitors the compliance of beneficiaries with their contractual obligations Must be financially viable Coordination tasks cannot be outsourced 7
8 Subcontracting Beneficiaries are supposed to perform the work, as identified in Annex I, themselves. If there is an exception, i.e. it is necessary to subcontract certain elements of the work, this should be clearly identified in Annex I including full details on: TASKS ESTIMATED COSTS JUSTIFICATION FOR NEED TO SUBCONTRACT METHOD OF SELECTION (best price/transparency, equal treatment, etc.) Cannot take place between beneficiaries Cannot be used to fund a legal entity that would not have been eligible for funding under the FP Coordinator s tasks cannot be subcontracted Carrying part of the work Special clause 10 Third party carrying out part of the work Conditions: Third party must be linked to the beneficiary: Formal relationship Broad Predates and goes beyond Formal external recognition Must be documented: contracts, statutes, etc Legal personality No Ad Hoc relationships Beneficiary needs to carry out part of the work: no subvention en cascade 8
9 Making resources available For free Resources are made available for free by the third party Costs of these resources will be declared by the beneficiary in its form C If these resources are made available specifically for the project they must be considered as receipts (non- profit rule) The costs of these resources are recorded in the accounts of the third party and not the accounts of the beneficiary. Making resources available Against reimbursement Costs incurred by the beneficiary Costs are recorded in the accounts of the beneficiary Costs are claimed by the beneficiary Conditions Must be a prior agreement that defines the frame in which the resources are made available No profit margin reimbursement of costs 9
10 Amending the Grant Agreement WHAT is an amendment? - Legal act modifying the GA; it is part of the GA - Changes (partnership, activities, duration etc.) on which the parties agree - May create new rights/obligations WHAT is an information procedure? - Lighter procedure; changes concern a beneficiary (can apply to several projects) and do not require the agreement of the parties to the GA - Beneficiaries inform the Commission and the other beneficiaries - Examples: change of legal name, address, authorised representative 10
11 WHEN to do/request/approve an amendment? - Do: general rule-whenever the GA needs to be modified (Core part or Annex I) - Request: before the end of the project (except for final payment obligations) - Approve: within 45 days of receipt (art. II 37.1 GA) WHERE to find information? - Amendments Guide for FP7 Grant Agreements /Extensions+Repository/General+Documentation/Guidance +documents+for+fp7/negotiations+and+amendments/am endments-ga_en.pdf - Participant Portal me 11
12 REPORTING Reference documents Model grant agreement - Grant Agreement (GA): Article 4. - Annex II of GA: Parts II.4, II.5, II.23. Guidance notes - On Project Reporting: ftp://ftp.cordis.europa.eu/pub/fp7/docs/project_re porting_en.pdf FP7 Grant Agreement Core part Article 4 Reporting periods and language of reports: The project is divided into reporting periods. The duration of each reporting period should be either 18 or 12 months. Any report and deliverable, when appropriate, required by this grant agreement shall be in English. 12
13 FP7 model grant agreement Annex II (general conditions) Reporting requirements During the project : Periodic report comprises: - Scientific part (progress of work and explanation of uses of resources); - Financial part (Financial Statement - Form C); - Deliverables (identified in Annex I of the Grant Agreement, according to the timetable specified in the Deliverables list: scheduled preferably on the basis of the periodic reporting roadmap) - Certificate of Financial Statement (if EU contribution more then ) Periodic Report within 60 days after the end of each reporting period. FP7 model grant agreement Annex II (general conditions) Reporting requirements For the END of the project within 60 days: Periodic report (for the last reporting period of the project) + Final report 30 days after reception of final payment: Report on distribution of EU contribution 13
14 Reporting FORCE What is the role of the Coordinator? Individual beneficiaries submit Forms C to coordinator Checks/verifies submissions done by beneficiaries Can reject Forms C Submits all Forms C to the Commission Periodic Report Approval Approval and payment by EC within 90 days (instead of 105) No tacit approval Suspension of time limit if clarifications or additional information needed information is provided to the coordinator in writing. Suspension of payment for those beneficiaries not complying to the FP7 reporting obligations 14
15 Financial reporting (general rules) A separate Financial Statement (Form C) from each beneficiary If Special Clause 10 applies to your Grant Agreement, a separate form C from each third party is to be submitted A summary financial report which consolidates the claimed contribution of the European Union of all the beneficiaries in an aggregate form, based on the information provided in Form C by each beneficiary. When applicable, certificates on financial statements shall be submitted by the concerned beneficiaries according to Article II.4.4 of the GA, Annex II, General Conditions. Changes as from 01/01/2013 based on the Commission Decision adopted on 14/12/2012!!! - On submission of forms C, D and E Obligation to submit the financial statements (forms C), certificates on financial statements (forms D) and certificates on the methodology (forms E) on paper is removed. Current grant agreements are not automatically affected as the previous rules will continue to apply. However, the consortium may apply for the application of the electronic-only signature of Forms C, D and E via an amendment procedure. 15
16 - on payment of the EC contribution: The Commission Decision adopted on 14/12/2012 introduces as from 01 January 2013 the following changes to the FP7 in relation to payment Time-to-pay: the time limit for payments to beneficiaries reduced to 30 days for prefinancing (instead of 45 days) and to 90 days for the interim and final payments (instead of 105) - on obligation on having an interest-bearing bank account No longer obligation to deposit prefinancing on interest-bearing bank accounts and to declare the interest yielded by these accounts (for reporting until the end of 2012 obligation still exists) 16
17 AUDIT PURPOSE OF THE AUDIT For the Commission to obtain assurance that it is not overcharged Form C is backed up by genuine expenditure All claimed expenditure is recorded in the accounts When? At any time up to 5 years after the final payment is made. Who? Commission s own staff or outsourced auditors DG RTD audits on average approximately 400 contractors in any given year, selected amongst the following: Top contractors Random sample Risk analysis Direct costs Personnel directly hired by the beneficiary Personnel costs: time sheets (full time recording system is recommended) Working time = hours worked excluding holidays, personal time, sick leave, Total personnel costs: total remuneration including social charges: all statutory costs Travel and subsistence costs Durable equipment Consumables, supplies Subcontracting Certificates on the methodology, on the average personnel costs, on the financial statements 17
18 Indirect costs Actual (actual or simplified) Flat rate 20%: any kind of organisation may use it Specific 60% Status of the organisation (non-profit public bodies, secondary higher education, research non-profit organisations, SMEs) if change => future GA s Accounting system (unable to identify with certainty real indirect costs) if change => future GA s Type of funding scheme (research and technological development, demonstration activities) CSA ICM applies but reimbursement limited to 7% Payment modalities One pre-financing (upon entry into force) for the whole duration 160% of the average EU funding per period for projects with one or two reporting periods, the amount of the pre-financing could be between 60-80% of the total EC contribution the contribution to the Guarantee Fund is part of the pre-financing Interim payments based on financial statements (EC contribution= amounts justified & accepted * funding rate) Retention (10% of the total EC contribution will always be retained by the Commission until the date of the last payment) Final payment 18
19 Reimbursement of eligible costs Subject to approval of technical reports Stated costs must be reasonable compared to work reported Actual Incurred during duration of project In accordance with beneficiary s usual accounting and management principles Recorded in the accounts of beneficiary Used for the sole purpose of achieving the objectives of the project Non-eligible (identifiable indirect taxes including VAT ) Reimbursement of eligible costs (continued) Direct costs: can be directly attributed to the project No cost models (NEW) but all beneficiaries report all their real direct costs Indirect costs: either actual overhead or simplified method flat rate of 20% of direct costs minus subcontracting and 3 rd parties not used on the premises of the beneficiary Non-profit Public Bodies, Secondary and Higher Education establishments, Research Organisations and SMEs unable to identify real indirect costs, may apply for a flat rate of 60% (originally until 31/12/09, now extended for entire FP7) For CSA limit of 7% of direct costs minus subcontracting and 3 rd parties not used on the premises of the beneficiary. 19
20 Sanctions Recovery orders (for all or part of the payments) Liquidated damages (in case of financial overstatement) Financial penalties if false declarations between 2% and 10% of the EC contribution Termination of contract or any beneficiary s participation (Art. II.38) The beneficiaries may request the termination of the contract or of the participation of any beneficiary Any beneficiary may request the termination of its participation in the contract The Commission may terminate the contract or the participation of a beneficiary 20
21 Termination for breach of Contract and irregularity (Art. II.38) The Commission may immediately terminate the participation of a beneficiary, in case of: Breach of any obligation imposed by the contract Irregularity in the performance of the (or any) contract Contravening of ethical rules Confidentiality All work done under the contract is confidential except general information and reports specifically intended for publication. Confidentiality and respect of commercial or academic interests are necessary for effective collaboration. 21
22 Intellectual Property rules Ownership of FOREGROUND (art. II.26): Resides with the beneficiary (incl. JRC) carrying out the work generating that foreground Joint ownership generated by several beneficiaries: terms and conditions to be defined in separate agreements Transfer of ownership (art. II.27): prior notice of at least 45 days to other participants (possible objection within 30 days) If the transfer is to third party established in a third country, the Commission may object if: the transfer is not in accordance of the interest of developing the competitiveness in European economy is inconsistent with ethical principles or security considerations Intellectual Property rules (continued) Protection (art. II.28) Owners shall provide adequate and effective protection of foreground Use and dissemination (art II.29 & 30) Obligation to set out the terms of use in a detailed plan for using and disseminating of the foreground Prior notice of any dissemination activity at least 45 days to other participants (possible objection within 30 days) 22
23 Critical Success Factors Clear project programme with partners roles well defined Progress follow-up and adaptation of work planning Partners commitment to objectives and in-line with business strategies Effective technical and financial management Clear understanding between partners Overall quality Sound exploitation plans and continuous follow-up of exploitation and dissemination Management by the EC Reporting Periodic activity report Periodic management report Interim and Supplementary reports Final Reports Plan for using and disseminating knowledge Opportunity of Exploitation Strategy Seminar Task Deliverables and milestone reports Not physically delivered to the Commission unless requested But they should be ready for review or inspection 23
24 Management by the EC Meetings Kick-off meeting (avoid loosing time at start) Periodic Review Final meeting Problem solving specific meetings Criteria Objectives versus Achievements Management and Collaboration Status Financial Aspects Exploitation and Dissemination of Results (continued) Some practical tips - In case of any technical problem with the participant portal, NEF please contact the helpdesk at ec-fp7-ithelpdesk@ec.europa.eu or at You may at any point contact the financial officer in charge of the project for any questions you might have on financial issues (cost eligibility etc.) 24
25 Useful links EU research: Seventh Framework Programme: RTD info magazine: nfo/ Industrial Technologies directorate: ial_technologies/index_en.html Thank you for your kind attention 25
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