Cost BESTPRAC Case study: third party in H2020 projects

TN1302: BESTPRAC

Joint Meeting of WG1/WG2/WG3, Sofia, Bulgaria March 10-11, 2016

Cost BESTPRAC

Case study: third party in H2020

projects

Fifth Meeting of the WG 2 Finance COST Targeted Network TN1302: BESTPRAC

Author

Chelo Morán – Universidad Carlos III de Madrid

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OVERVIEW

�What is a third party in Horizon 2020?

�Types of third parties

�Actual examples: NOTRE and MOVE projects

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THIRD PARTIES INVOLVED IN THE PROJECT

�Third parties providing in-kind contributions

- Against payment (art. 11 AMGA)

- Free of charge (art. 12 AMGA)

They do not implement tasks in the project. Only provide

resources.

�Contractors providing good or services (art. 10 AMGA)

�Subcontractors (art. 13 AMGA)

�Linked third parties (art. 14 AMGA)

They implement specific action tasks

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Th

ird

pa

rtie

s

In-kind contributions

Free of charge (art. 12

AMGA)

Against payment (art.

11 AMGA)

Implementation of

action tasks

Subcontractors (art. 13)

Other goods and

services (art. 10 AMGA)

Linked third parties (art.

14 AMGA)

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SUBCONTRACTING (art. 13)

� Included in annex I. Example: building a prototype, survey.

� Form C: other direct cost - subcontracting . Not considered to

calculate overheads.

� Responsibility of tasks for the beneficiary.

� IPR: for the beneficiary.

� Elegibility: best price-quality offer or lowest price.

� Beneficiary receives and invoice to pay for an order.

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COST OF SERVICES (art.10)

� Not included in annex I. Example: consulting costs, cost of

CFS, translation costs.

� Form C: other direct cost . Considered to calculate

overheads.



� Elegibility: best price-quality offer or lowest price.

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LINKED THIRD PARTIES (art. 14)

What is a linked third party?

� Only affiliated entities and entities with a legal link to a

beneficiary

� Legal link is an stablished relationship which is:

- Not specifically created for the action (duration must go

beyond the action duration).

- Legal relationship: legal structure (eg. Members of an

association) or agreement (eg. Collaboration agreement

for research).

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LINKED THIRD PARTIES (art. 14)

� Tasks implemented by them must be included in Annex I.

� Elegibility conditions: the same as for beneficiaries .

� Form C: they declare their own costs in their own form C



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THIRD PARTIES PROVIDING IN-KIND CONTRIBUTIONS

In-kind contributions may be provided:

� free of charge (art. 12)

� against payment (art. 11)

Example: seconded personnel

THEY ARE NOT INVOLVED IN THE PROJECT

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AGAINST PAYMENT (art. 11)

In-kind contributions and estimated costs must be set

out in Annex I

Only actual costs of the third party are eligible

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THIRD PARTIES PROVIDING IN-KIND CONTRIBUTIONS FREE OF

CHARGE (art. 12)

� Costs may be declared as eligible costs although there is

no cost incurred by the beneficiary.

� The in-kind contribution have to be declared as “receipts

of the project”.

� Elegibility conditions: estimated costs must be included in

Annex I of the GA and costs must be recorded in the

accounts of the third party.

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INDIRECT COSTS OF IN-KIND CONTRIBUTIONS

Example: seconded staff

- If staff is in the premises of the beneficiary: direct costs will be

included by the beneficiary under “Personnel costs” category +

25% of “Overheads” as indirect costs.

- If staff is in the premises of the third party: direct personnel

costs + 25% of “overheads” will be included by the beneficiary

under “Personnel costs”

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Staff on the

premises of the

beneficiary

Staff on the

premises of the

third party

Personnel costs 40.000 EUR 50.000 EUR

Overheads 10.000 EUR 0 EUR

TOTAL 50.000 EUR 50.000 EUR

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Annotated Model Grant Agreement

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ACTUAL Examples: UC3M as LINKED THIRD PARTY

NOTRE Project

Call: H2020-TWINN-2015 – Type of action: CSA – 5 partners

Title: “Network for sOcial cumpuTing Research – NOTRE” – GA 692058

Information related to third parties included in the proposal:

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Estimated UC3M budget included in “other costs” of the

beneficiary at the proposal stage.

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Participant portal before signature of the GA:

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NOTRE Project

- UC3M as third party does not have project role in the PP – we do

not sign the GA BUT we see specific information about UC3M

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UC3M as THIRD PARTY PROVIDING IN-KIND CONTRIBUTION

AGAINST PAYMENT

MOVE Project

Call: H2020-YOUNG-SOCIETY-2014-RTD – Type of action: RIA – 9 partners

Title: “Mapping mobility-pathways, institutions and structural effects of youth

mobility in Europe – NOTRE” – GA 692058

� Information related to third parties not included in the proposal

UC3M acts as third party with in-kind contribution against payment (art. 11)

- personnel. Tasks will be developed on UC3M premises.

- Included in annex I but as part of beneficiary’s description.

- Internal agreement between UC3M and the beneficiary (TO HAVE A LINK

BETWEEN BOTH INSTITUTIONS)

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Internal agreement between UC3M and the beneficiary

including:

� Reference to the European project (MOVE).

� Specific tasks to be developed by UC3M in the project.

� Name and number of hours of personnel involved.

� Actual cost for UC3M.

� Scientific supervisor of UC3M’s tasks on behalf of the

beneficiary.

� Confidentiality and IPR clauses.

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Please enter the costs for in-kind contributions that are made by third parties against

payment or free of charge and that are not used on the beneficiary's premises. Use one row

for each beneficiary.

Include costs of linked third parties, if any, in the beneficiary's budget. (PP information)

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These costs (E) are already included in the 'direct personnel costs' (A) and 'other direct

costs' (B). They need to be declared specifically in this column so that they can be

subtracted from the sum of direct personnel costs (A) and direct other costs (B) before

the indirect costs (F) are calculated.

UC3M example:

- Personnel costs = 2.660 EUR

- Overheads = 665 EUR

TOTAL = 3.325 EUR

To be included in the beneficiary’s budget because tasks are

performed on UC3M premises. Not in “E column”??

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Actual UC3M situation:

UC3M does not appear in the GA budget (as in NOTRE project).

Ammendment in process to include UC3M as third party in the

GA.

- Is this possible?

- Do we see some information in the Participant Portal after the

signature of the amendment?

Documents

Cost BESTPRAC Case study: third party in H2020 projects