Validation of legal entities and financial viability...

Validation of legal entities and financial viability check

Participant Validation and Support

Research Executive Agency (REA)

18 January 2017

Presentation Outline

1. Introduction

2. Validation Workflow

3. H2020 Research Status

4. Legal Entity Appointed Representative (LEAR)

5. Financial Viability

6. Bank Accounts

7. Beneficiary Register

8. Useful Links 2

• Legal validation of entities requesting EU funding

• Validation of the Appointment of the LEAR

• Financial Viability Check

REA VALIDATION SERVICES

Introduction

H2020 Research Status

Organisations Have to Register on the Participant Portal

•Based Upon

•Documents

Mandatory under Horizon 2020

Financial Viability Check if Needed

Registration Verification & validation of

legal data LEAR FVC

COMMUNICATION VIA PARTICIPANT PORTAL

Validation Process Overview

Introduction

• After registration, the organisation obtains a temporary Participant Identification Code (PIC)

• PICs must be validated before grant signature

• Beneficiaries and Third parties need a valid PIC

Validation Workflow (1)

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• Before PIC validation, the self-registrant is the main contact for the Validation Services (VS)

valid email address is a prerequisite

• VS request official documents for the validation

if no reaction after 30 calendar days from the 1st request, the PIC is set to 'sleeping'.

Validation Workflow (2)

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Required Documents

Legal Entity identification Form-signed/dated

VAT extract (< 6 months)

If not registered for VAT – proof of VAT exemption

Registration extract (<6 months) – for private law body

Law/Decree/Decision – for public law bodies

Treaty – for International Organisations

Statutes – for Non-profit Organisations

Validation Workflow (3)

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• Natural Person

• Private Law Body / Public Law Body

• International Organisation

• International Organisation of European Interest

• Secondary & Higher Education Establishment

• For Profit Organisation / Non For Profit Organisation

• Research Organisation

• SME

H2020 Research Status (1)

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Natural person Human being that has a capacity for rights and

obligations under his/her national law

Natural person identification form

filled out, dated and signed

Legible copy (recto verso) of the identity

document

Registration document and/or VAT document (if applicable depending on

the national legislation)

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H2020 Research Status (2)

RESEARCH ORGANISATION

NON-PROFIT

(documents to be provided)

RESEARCH STATUS

(self-declaration)

NEW

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H2020 Research Status (3)

SME Status

SME Wizard

YES NO

Self-Declaration

YES/NO

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H2020 Research Status (4)

LEAR nomination

• Mandatory

• Documents Must Be Submitted In Original

• LEARs Appointed Under FP7 Must Be Appointed Again for Participating in Horizon 2020

Legal Entity Appointed Representative (1)

Role of the LEAR

• Notifies the EU of changes in legal data/status;

• Submits legal and financial documents

• Nominates 'Account Administrators'

• Nominates individuals authorised to sign:

Grant agreements and amendments (Legal signatories i.e. LSIGN)

Financial statements (Financial signatories, i.e. FSIGN)

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Legal Entity Appointed Representative (2)

Two-fold process

• Legal Assessment of Documents & Appointment by REA Validation Services (Including the Extended Mandate)

• Activation of LEAR Account by the IT Research Helpdesk

Valid email address &

PIN code sent by text message (if mobile phone provided)

or by post

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Legal Entity Appointed Representative (3)

LEAR

Company X

Company Y

Company Z

Company

X

LEAR

Account Administrator

Account Administrator

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Legal Entity Appointed Representative (4)

LEA

R

EX

TEN

DED

MA

ND

ATE

'LEAR appointment letter'

(signed by Official Legal Representative)

'Roles & Duties'

(signed by LR & LEAR)

'Declaration of Consent'

(signed by LR)

Proof of Empowerment of LR

Copy of Identity Document

(for LR and LEAR)

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Legal Entity Appointed Representative (5)

Supporting Documents

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999000222

JS Ltd

Legal Entity Appointed Representative (6)

Supporting Documents

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Legal Entity Appointed Representative (7)

Supporting Documents

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999000222

JS Ltd

Legal Entity Appointed Representative (8)

Supporting Documents

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Legal Entity Appointed Representative (9)

Supporting Documents

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Legal Entity Appointed Representative (10)

Supporting Documents

Financial Viability Check (1)

Assessed if

the beneficiary is a coordinator

&

the requested EU funding for the project is ≥ 500 000 EUR.

• 'sole applicants' not considered as “coordinators”

• financial viability check may be performed on other beneficiaries

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Financial Viability Check (2)

Signed Supporting documents

Balance sheet

Profit and loss account

Statutory audit report on the financial statements (unless exempt)

Exemption from auditing not applicable if requested EU-contribution exceeds 750.000 EUR

For the last financial year

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Bank Accounts

• Search for Bank Account (BA) is available on Participant Portal Grant Management Service (PPGMS)

• If no BA exists, PPGMS requests the upload of BA forms

• VS validates BA and confirms the validation via the Beneficiary Register

PDF copies accepted

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Beneficiary Register (1)

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Beneficiary Register (2)

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Beneficiary Register (3)

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Useful Links

H2020 Grants Manual http://ec.europa.eu/research/participants/portal/desktop/en/funding/reference_docs.html#h2020-grants-manual-lev

Participant Portal H2020 Online Manual http://ec.europa.eu/research/participants/docs/h2020-funding-guide/index_en.htm

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Thank you for your attention

Our address:

European Commission Research Executive Agency

Validation Services COV 2 – 13/132 B-1049 Brussels

Belgium

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• Incorrect email of self-registrant or LEAR (IT Research Helpdesk)

• PIN code not received by the LEAR (IT Research Helpdesk)

• Delay in receiving original LEAR documents

• Translations of documents from non-EU participants: must be certified + official + legal

• Legal Validation and Financial Viability Check are processed upon availability of documents provided by the participants and performed in the context of the priorities & workload of all our clients

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Recurrent issues

Clients

Participant Validation &

Support

Joint Undertaking Initiatives

European Commission

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Other Executive Agencies