URF/The Validation Process
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1 Research Executive Agency Daphne von Buxhoeveden REA.A1 «FP7 Support Unit» URF/The Validation Process Information Session 27/10/2011
2 Agenda Part 1: How to obtain a PIC in the URF Part 2: The validation process Part 3: After validation: LEAR Change requests
3 Part 1:How to obtain a PIC Acronyms URF Unique Registration Facility PDM Participant Data Management PIC Participant Identification Code LEAR Legal Entity Appointed Representative VS Validation Services of REA.A1
4 Part 1:How to obtain a PIC What is the URF? A facility to support the validation of legal entities by: Submitting data over a web interface Generating a Participant Identification Code (PIC) Nominating a Legal Entity Representative (LEAR)
5 Part 1:How to obtain a PIC How to register in URF? When you connect the first time to URF (not being a LEAR), you have to self register as participant. In your browser you connect to URF, using the following URL: To access URF, you have to use your ECAS login and password (if you don t have it, you must register)
6 Part 1:How to obtain a PIC Step 1: Register your organisation The first time you connect to URF, the welcome page will be displayed in your browser. To self register, just click on the [Register an Organisation] button.
7 Step 2: Register Legal Address Part 1:How to obtain a PIC
8 Part 1:How to obtain a PIC Step 3: Register the contact person This person is to be contacted until a person is validated as LEAR for the organization.
9 Part 1:How to obtain a PIC Step 4: Register the Status of the organisation The status selected will need to be demonstrated by your statutes and registration documents.
10 Once the registration completed: Part 1:How to obtain a PIC You must verify that the data provided is correct and submit the information; Once the information has been submitted, you will not be able to correct the organisation data in URF until it has been processed by the validation services of the REA; While your data will be under validation by the REA, you are able to upload up to 10 Mb of documents; Immediately after the data has been submitted for validation, you will receive an with the data you entered, and a temporary Participant Identification Code (PIC) will be provided to you.
11 PART II: The validation process
12 Part 2: The validation process The validation process: The validation of a participant is unique and valid throughout the entire FP7 programme; During the validation of a legal entity, the validation services verify the (i) legal existence; (ii) FP7 status of an applicant; and (iii) the ICM These verifications are based on supporting documents; Documents can be uploaded directly on the URF or sent via to the validation mailbox: REA-URF-Validation@ec.europa.eu; When sending an , always quote your PIC number and proposal number (when applicable) in the subject title.
13 Part 2: The validation process Types of Legal Entities under FP7: Public and Private International Organisation Higher or Secondary Education Profit and non-profit Research organisation SME Enterprise
14 Part 2: The validation process Documents required for the validation: For All Types of entities: The Legal Entity Form, dated, duly filled-in, signed and stamped (please use only that which is appropriate to your status "Public" or "Private"); For Public Entities: A copy of the resolution or law or decree or decision or any other official document legally establishing your organisation; If the VAT number is not indicated on the registration extract mentioned above, a copy of an official document proving your VAT registration (not older than 6 months); Note: a "public body" has to be a legal entity established as such by national law, and international organisations. "Established" in turn signifies that the legal entity has to be incorporated as a public body in the formal act (Article 2.13 of the FP7 rules)
15 Part 2: The validation process For Private Entities An extract of registration in the Chamber of Commerce (or its equivalent: Company Register, Official Journal etc) showing the name of your organisation, the address of the head office, its registration number. If the VAT number is not indicated on the registration extract, a copy of an official document proving your VAT registration needs to be submitted (not older than 6 months).
16 Part 2: The validation process For Research Organisations: A legal document that proves that your organisation is: considered as a non-profit organisation by national or international law; and carries out research or technological development as one of its main objectives For Non profit Organisations: A legal document which mentions the non-profit character of your organisation. Note: (i)the absence of a lucrative aim does not necessarily imply the absence of profits; (ii) the commitment from an organisation to not redistribute profits to its shareholders is not a sufficient condition for the entity to be considered as "non profit".
17 Part 2: The validation process 17 Definition of an ENTERPRISE COMMISSION RECOMMENDATION OF 6 MAY 2003 concerning the definition of micro, small and medium enterprises Article 1 «AN ENTERPRISE IS CONSIDERED TO BE AN ENTITY ENGAGED IN AN ECONOMIC ACTIVITY, IRRESPECTIVE OF ITS LEGAL FORM. THIS INCLUDES, IN PARTICULAR, SELF-EMPLOYED PERSONS AND FAMILY BUSINESS ENGAGED IN CRAFT OR OTHER ACTIVITIES, AND PARTNERSHIPS OR ASSOCIATIONS REGULARLY ENGAGED IN AN ECONOMIC ACTIVITY»
18 Part 2: The validation process Thresholds for SME: According to EC Recommendation of 6 May 2003 (2003/361/EC) Number of staff members (ARTICLE 5) Profit and loss accounts (ARTICLE 4) Annual balance sheet (ARTICLE 4) category Staff headcount Profit and loss Annual balance sheet SME < 250 EUR 50 million EUR 43 million
19 Part 2: The validation process For SME: SME CHECK LIST Duly signed and bearing the name of the legal representative BALANCE SHEET Clear mention of company s total assets and liabilities (ANNUAL BALANCE SHEET THRESHOLD) PROFIT & LOSS ACCOUNT Clear mention of company s turnover (ANNUAL TURNOVER THRESHOLD) STATEMENT OF THE STAFF HEADCOUNT In case there is no mention on any of the Balance Sheet, the Profit & Loss account or accompanying note For non-autonomous SME (linked to another organisation or Company), The balance sheet, profit and loss accounts of the upstream and / or downstream organisations or Companies with appendices for the last period
20 Part 2: The validation process ICM verification Once the FP7 status of an organisation is confirmed, the validation services verify whether an organisation is allowed to use the ICM they have requested via the URF: Real indirect costs entities with analytical accounting system Simplified method accounting system for determining indirect eligible costs Standard flat rate (20%) unable to identify their real indirect costs Specific flat rate of 60% for non profit public, secondary, higher education, research organisation, SME unable to identify their real indirect costs!! ICM is unique for the legal entity in all grants; except when: Upgrading (change in FP7 status or accounting system); Departments using Special Clause 30 (project-related, not in PDM)
21 PART III: After Validation
22 Part 3: After validation Once the validation completed: Based on the supporting documents, the Validation Services determines the FP7 status of the organisation; The participant receives an with his final PIC number, his FP7 status and the link for appointing the Legal Entity Appointed Representative (LEAR). The Role of the LEAR A LEAR can only be nominated after an organisation has been validated, Only 1 LEAR per organisation can register; The nomination of a LEAR is not mandatory but strongly recommended.!!only the LEAR can modify the data once the entity is validated
23 Part 3: After validation LEAR request: Workflow LEAR registers change request via URF VS request legal proof Analysis of the documents received Participant submitted to Registry again (rejecting or accepting the change request) Confirmation mail is sent to LEAR Automatic notification to all project officers of grants (ongoing and in negotiation) in which the PIC appears
24 Questions? Thank you for your attention.
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