First Class Support for Excellence in Research Financial aspects of PEOPLE program and actions managed by REA Marie Curie Monitoring Action and Information

First Class Support for Excellence in Research

Financial aspects of PEOPLE program and actions

managed by REA

Marie Curie Monitoring Action and Information Days

Barcelona, June 9th-11th 2010

Nicolo’ Giacomuzzi-Moore

Unit A.2 – Finance

Financial Verification


Marie Curie ActionsInitial training

ITN - Initial Training Networks

Life-long trainingIEF - Intra-European Fellowships for career development

ERG - European Reintegration Grants

IRG - International Reintegration Grants

COFUND - Co-funding of regional,

national and international programmes

Industry - AcademiaIAPP - Industry-Academia Partnerships and Pathways

International dimensionIOF - International Outgoing Fellowships for career developmentIIF - International Incoming Fellowships

IRSES - International Research Staff

Exchange Scheme

Researcher’s Night


Eligible costs

Marie Curie Actions

• Actual – however People specific programme includes the possibility of

Flat rate costs• Incurred by the beneficiary within the duration of the

project– Exception: final reports + CFS

• Registered in the accounting following the usual practices of the beneficiaries

• Used for the sole purpose of the project (economy efficiency effectiveness)

• Have been indicated in the overall budget in Annex 1


Non eligible costs

• Identifiable taxes, including VAT• Duties• Interest owed• Provisions for possible future losses/charges• Exchange losses• Costs reimbursed in respect of any other EU project• Debt and debt service charges• Excessive or reckless expenditure

Marie Curie Actions


General rules for Marie Curie Actions • The Community financial contribution to the Marie Curie indirect

actions takes in general the form of grants covering up to 100% of the budget of the indirect action, comprising, if the case arises, predetermined scale of unit costs (flat rates) for various categories of expenses.

• The eligible expenses that can be charged can be broadly divided into:– Eligible expenses for the activities carried out by the researchers– Eligible expenses for the activities carried out by the host

organisations.

Marie Curie Actions


Cost categories for Marie Curie Actions

Researcher

Living allowance (salary)Cost Category A

Mobility allowance

Travel allowance Cost Category BCareer Exploratory allowance Cost Category C

Contribution to research and training costs Cost Category D

Beneficiary

(host)

Contribution to networking costs, costs of execution of the project

Cost Category E

Contribution to the organisation of external events

Cost Category F

Management Cost Category G

Overheads Cost Category H

Other Cost Category I

Marie Curie Actions


Monthly living: Cost Category A• For each eligible researcher, the host organisation can opt

between recruiting the researcher under an employment contract or on a fixed amount fellowship with minimum social security, depending on the legal and/or administrative situation of the beneficiary and/or the researcher.

• As a general rule, researchers should be appointed under an employment contract, except in adequately documented cases (such as for short stays) or where national regulation would prohibit this possibility.

• Rates applicable are included in WP correspondant to the call.

• For individual countries, correction factors mentioned in WP have to be applied

Marie Curie Actions


Monthly living allowance: Cost Category A

WP 2007 2008 2009 2010

Categories Employed researcher

Fixed amount minimum social sec.

Employed researcher


Employed researcher


Employed researcher


Early stage

researchers 33800 16900 34500 17250 35300 17650 36700 18350

Experienced

researchers

(4-10 years experience)

52000 26000 53000 26500 54300 27150 56400 28200

Experienced

Researchers

(>10 years experience)

78000 39000 79500 39750 81400 40700 84500 42250

For individual countries, correction factors mentioned in WP have to be applied

Marie Curie Actions


Monthly living and mobility allowance: Cost Category A

• a "mobility allowance" will be paid for some categories of researchers, which will take due account of the researcher’s family situation – Researchers without a family 500€/month– Researchers with family 800€/month

Correction

Factor!

Marie Curie Actions


Travel allowance: Cost Category B

• Researchers entitled to the monthly mobility allowance shall also receive a travel allowance calculated on the distance between the place of origin and the beneficiary’s premises. The travel allowance is paid for every period of 12 months or less

Distance (km) Fixed-amount contribution (€)

< 500 250

500 – 1 000 500

1000-1500 750

1500-2500 1000

2500-5000 1500

5000-10000 2000

>10 000 2500

Marie Curie Actions


Living, mobility and travel allowances: Cost Category A and B

What records do we need to keep for EU audit purposes?

Flat rates are intended to be to the exclusive benefit of the

researcher. The Host must therefor be able to demonstrate –

upon REA’s request – that salary, allowance, employer’s social

security charges are at least equal to the declared flat rate.

Proof of payment of the salary to the fellow and of the deductions

for social security etc

Employment contract/agreement with the fellow

Marie Curie Actions


Living, mobility and travel allowances: Cost Category A and B

Evidence that the fellow worked full time on the project: this can

include lab books, conference abstracts, library records, etc

Time sheets are not an obligation for the Marie Curie Fellows.

However, if this is required across the institute then the fellow can also

be asked to complete them

Evidence of the family status of the fellow at the time of recruitment

and at the call deadline (Individual actions)

Evidence of the distance between the place of origin and the

beneficiary’s premises

Marie Curie Actions


Eligible expenses for activities carried out by researchers: Cost Category C and D

Career exploratory awards and participation to seminars• Career exploratory awards allowance is a single payment of

€2000/fellow paid only for recruited researchers appointed under the project for at least one year, and is intended to enable each researcher to help develop their career

• Contribution to participation to seminars is managed by the beneficiary for expenses related to the participation of the researchers in research and training activities (contribution to research-related costs, meetings, conference attendance, training actions, etc). It consists of a fixed amount:

– €600 per researcher-month recruited for initial training: for laboratory based research projects + €300 per researcher-month recruited for initial training: for non-laboratory based research projects (ITN)

– €800 per researcher-month recruited for initial training: for laboratory based research projects + €500 per researcher-month recruited for initial training: for non-laboratory based research projects (Individual actions)

Marie Curie Actions


Cost Categories C and DWhat records do we need to provide for EU audit of category C

costs?

• Evidence that the fellow has been working on the project for at least 1

year.

• Records of payments to the fellow

What records do we need to keep for EU audit of category D costs?

• Flat rate for which no proof of actual spending is required

• REA may withhold all or part of the flat rate for category D when it

becomes aware that the beneficiary is not supporting the researcher for

participation to seminars/conferences

Marie Curie Actions


Category E: Contribution to the research training / transfer of knowledge programme expenses

• This is flat rate contribution of a fixed amount per researcher/month, depending on the type of host driven action, that goes to the beneficiary for the execution of the project.

• It covers the participation of eligible researchers in research and transfer of knowledge activities (research costs, participation in meetings and conference attendance, etc) and contribution to the expenses related to the coordination between participants (partnership meetings, secondment of staff, etc).

• Different on the base of WP

YEAR 2007 2008 2009 2010

ITN 600€ 600 1200

IAPP 800€ 800 1200

Marie Curie Actions


Research/Training/ToK: Cost Category E

What records do we need to provide for EU audit purposes?

• For the purposes of the Grant Agreement, you do not need to keep

detailed records of what the money was used for

• However, please ensure you keep sufficient records to comply with

the accounting rules of your institution as they will normally require

more records than that required by the Grant Agreement

Marie Curie Actions


Contribution to the organisation of international conferences, workshops and events - Category F

• This category is valid for ITN/IAPP only• This contribution fo 300€ researcher/day for researchers

from outside the partnership is managed by the beneficiary for the organisation of international conferences, workshops and events open to participants outside the network, including: organisational expenses (invitation of keynote speakers, publications, rental of premises, web casting) and participation fees of eligible researchers from outside the partnership.

• This category was abolished from 2009 WP

Marie Curie Actions


External events – Cost Category F


• For the purposes of the Grant Agreement, you have to provide

evidence and records that the conference effectively took place and

ensure you keep sufficient records to comply with the accounting

rules of your institution as they will normally require more records

than that required by the Grant Agreement

• In the case of an audit by the EU, the consortium will need to

provide the attendance list for the event showing clearly the

presence of the external researchers

• If you make a profit with this event, you must report it

Marie Curie Actions


Management activities: Cost Category G

• The amount of eligible expenses for management activities is defined in the Work Programme relevant to the call under which the proposal was submitted and in Annex I to the grant agreement. Various modalities have been defined, dependent on the action and relevant Work Programme:

– Variant 1: based on actual costs incurred for the management of the project, up to a maximum of 3% or 7% of the total Community contribution depending on the action and number of beneficiaries

– Variant 2 (for individual fellowships – IEF, IIF, IOF – since 2009 Work Programme onwards): a flat rate amount of 700€ per researcher/month covering not only the management of the project but also a contribution to indirect costs (correction factor applies for this category)

Marie Curie Actions


Management: Cost Category G

What records do we need to keep for EU audit purposes?

FOR VARIANT 1

• This is a real cost category therefore you need to keep full evidence:

– All records of expenditure

– Full timesheets for personnel costs

• These do not need to be provided to the REA with the reports, however the periodic report

must give an explanation of the breakdown of costs charged to cost category G and proof

documents should be provided upon request

FOR VARIANT 2

• For the purposes of the Grant Agreement, you do not need to keep detailed records of what the

money was used for

• However, please ensure you keep sufficient records to comply with the accounting rules of your

institution as they will normally require more records than that required by the Grant Agreement

Marie Curie Actions


Contribution to indirect costs: Cost Category H

• The amount of eligible expenses for indirect costs is defined in the Work Programme relevant to the call under which the proposal was submitted and in Annex I to the grant agreement. Various modalities have been defined, dependent on the action and relevant Work Programme:

– Variant 1: a flat rate payment up to 10% of the direct costs, excluding costs for subcontracting. The flat rate applies per period per project: participants are free to declare more or less overheads within the ceiling of 10% overheads for the project as a whole.

– Variant 2 (for individual fellowships – IEF, IIF, IOF – from the 2009 Work Programme onwards): category merged with G in a sigle flat rate.

Marie Curie Actions


Other types of eligible expenses: Cost Category I

• With respect to the Marie Curie Industry-Academia Partnerships and Pathways (IAPP), participating SMEs can charge small equipment expenses to the project up to a maximum of 10% of the total negotiated contribution to the SME participant, provided that they are:

– duly justified for the project;– based on real costs;– with prior agreement by the Commission and included in ANNEX I.

• IRG ERG contribution to integration of Researcher in host organisation: – ERG 15.000 euro per researcher/year (max 3 years) – IRG 25.000 euro per researcher/year (max 4 years)

• With respect to reintegration grants as well as the Incoming International Fellowships (IIF) this is the only relevant category of expenses. A fixed amount per researcher/year is specified in the Work Programme relevant to the call under which the proposal has been submitted. This amount is managed by the beneficiary with the objective to reintegrate the researcher in the organisation of the beneficiary.

Marie Curie Actions


Other type of eligible expenses – Cost Category I


• For 10% SMEs equipment: This is a real cost category therefore you need

to keep full evidence of

– All receipts of expenditure

– Detailed calculation of the depreciation in accordance to the local accounting

principles

• For IRG ERG flat:

– For the purposes of the Grant Agreement, you do not need to keep detailed

records of what the money was used for

– However, please ensure you keep sufficient records to comply with the

accounting rules of your institution as they will normally require more records

than that required by the Grant Agreement

Marie Curie Actions


Specific Actions managed by REA

Marie Curie Actions


ERG/IRG

• Cost categories :

– (I) Other type of costs = expenses by hosting organisation related to integration of researcher

• ERG = Fixed amount 15.000 € per researcher/year up to 3 years

• IRG = Fixed amount 25.000 € per researcher/year up to 4 years

Marie Curie Actions


IEF IOF IIF• IEF cost categories (A B C D G/H):

– Monthly living and mobility allowance (see tables and apply correction coefficient)

– Travel allowance– Career exploratory allowance– Contribution to participation expenses– Management activities (2007-2008): maximum 3% of

EC contribution– Overheads (2007-2008): 10% of direct costs– Since 2009: Management + Overheads = 700€ per

researcher/month up to 20% of total direct costs

Marie Curie Actions


IEF IOF IIF• IOF cost categories (A B D G/H):


– Travel allowance– Contribution to participation expenses– Management activities: maximum 3% of EC

contribution– Management activities (2007-2008): maximum 3%

of EC contribution– Overheads (2007-2008): 10% of direct costs– Since 2009: Management + Overheads = 700€ per

researcher/month up to 20% of total direct costs

Marie Curie Actions


IEF IOF IIF• IIF cost categories (A B D G/H I):


– Travel allowance– Contribution to participation expenses– Management activities (2007-2008): maximum 3% of EC

contribution– Overheads (2007-2008): 10% of direct costs– Since 2009: Management + Overheads = 700€ per

researcher/month up to 20% of total direct costs– Optional return Phase 15.000€ under (I) for reintegration of

researcher

Marie Curie Actions


NIGHT

• Up to 100% of costs (CSA)

• Mono/Multi-beneficiary

• Indirect costs max 7% of direct costs (not a flat rate, it is a ceiling)

• Duration 7 months

Marie Curie Actions


IRSES:

– 1800€ per seconded researcher per months (management Included) covering mobility costs

– Not a salary/allowance!

– Mono-beneficiary (2007/08)

– Multi-beneficiary (2009/10)

Marie Curie Actions


COFUND

– Financing for funding bodies and fellowship schemes

– EC contribution = 40% of fellowship cost for eligible researchers

– Max 5 million € per single applicant per call– Scale unit costs method = flat rate amount

calculated on negotiated budget per project

Marie Curie Actions


ITN• the recruitment of researchers to be

trained;

• networking costs and the organisation of short training events (workshops, seminars, summer schools and conferences).

• where applicable, the recruitment of the senior “visiting researchers”;

Marie Curie Actions


ITNCost categories (A B C D E F G/H): • Monthly living and mobility allowance• Travel allowance• Career exploratory award• Contribution to participation expenses• Contribution to research/transfer of knowledge

– Please not that since 2009 these two categories were merged

• Management costs• Indirect costs• Maximum of 40% of the EU contribution to any one

country in the network

Marie Curie Actions


IAPP• Exchange of know-how and experience through two-

way or one-way secondments of research staff between commercial and non-commercial partners

• Recruitment of experienced researchers from outside the partnership, for involvement in the transfer of knowledge and⁄or the training of researchers

• Networking, workshops and conferences involving external researchers as well as the partners' own research staff.

Marie Curie Actions


IAPPCost categories (A B C D E F G/H): • Monthly living and mobility allowance• Travel allowance• Career exploratory award• Contribution to participation expenses• Contribution to research/transfer of knowledge

– Please not that since 2009 these two categories were merged

• Management costs• Indirect costs• Small equipment expenses for SMEs participating (Max

10% of negotiated SMEs contribution)

Marie Curie Actions


Summary of « People » Actions

Action

Elegible cost categories for

activities carried out by researcherMonthly living allowance A

Travel allowance B

Exploratory award C

Participation expenses D

ITN YES YES YES 600€ per researcher/month for

lab projects and 300€ for non-lab projects

IAPP YES YES For newly recruited researchers only, not

for seconded staff

NO

IEF/IOF/IIF YES YES IOF IIF NO 800€ per researcher/month for

lab projects and €500 for non-lab projects

IEF YES

IRG/ ERG NO NO NO NO

General rules For specific amounts see table

correspondent WP

For specific amounts see table

correspondent WP

2000€ per fellow Fixed amount per researcher/month for lab projects and for

non-lab projects



Cost Categories for activities carried out by hostTRANSFER OF

KNOWLEDGE

CONFERENCES MANAGEMENT INDIRECT COSTS

OTHER

ITN 600€ per researcher/month

YES 7% for networks

3% for mono beneficiary and

twinning

10% of direct costs

NO

Since WP 2009

1200€ per researcher/month

IAPP 800€ per researcher/month

YES 3% 10% Max 10% of beneficiaries

contribution can be charged by SMEs

for equipmentSince WP 2009

1200€ per researcher/month

IEF

IOF

IIF

NO NO 3% 10% 15.000€ per researcher/years for return phase

IOF/IIF700€ per researcher/month

(starting with WP 2009)up to 20% of total direct costs

IRG/ ERG

NO NO 3% (2007 WP)

10%(2007 WP)

15.000€ per researcher/year

ERG

25.000€ per researcher/year IRG

NO(2008 onwards)

General rules 800€ or 600€

per researcher/month

300€ per researcher/day

7% or 3%

of EC contribution

10% of direct costs, except

subcontractors



Financial rules for other actions

IRSES 1800€ per seconded researcher/months

NIGHT 100% of costs, during 7 months (CSA)

COFUND 40% of the fellowship costs for eligible researchers, with a maximum overall of EUR 5 million to a single applicant entity


Recurrent questions

Marie Curie Actions


Payments flow

TOTAL EU CONTRIBUTON = 100%

Pre-financing5% for Guarantee fund

Interim Payment

Final Payment

month 2

month 12

Month 24

Project duration

Guarantee Fund restitution = 5%After final payment

Marie Curie Actions


Guarantee Fund

• FP7 Guarantee Funds of the Participants (GF) has been established in order to cover amounts due and not reimbursed by defaulting partners

• GF intervene in favor of the consortium for the amount not spent by the defaulting participant in order to ensure the continuation of the project

• At the end of the project the 5% of EU contribution is returned to the beneficiaries

Marie Curie Actions


Purchase of durable equipment

• General Rules: – Direct cost– No VAT– Depreciation for the period must be charged

• In which category? – Category E/D – Look for which activity the durable equipment

is used

Marie Curie Actions


More on cost categories• Transfer of costs between categories

– Allowed only in some exceptional cases– Allowed within the two large categories (HOST/FELLOW)– Allowed from the HOST towards the FELLOW– Ask for agreement from PO

• Underpayment of the fellow– Not possible – Breach of the contract

Marie Curie Actions


SubcontractingIs subcontracting allowed?

• Yes, if foreseen in Annex 1 of the Grant Agreement

What can be subcontracted?

• Only non-core tasks

• Many tasks of the coordinator cannot be subcontracted

What procedures do we need to follow?

• You need to follow the rules of your institution

• In addition the choice of subcontractor must be transparent, on the basis of equal treatment and

represent best value for money.

Why do I need to record all subcontracting costs?

• Subcontracting costs do not generate overheads (cat H) therefore must be recorded separately

to ensure correct calculation of Cat H

Marie Curie Actions


Maternity leave

Can a fellow take maternity or parental leave?

• Yes, in accordance with the national legislation

Are the costs of the leave eligible?

• When mandatory under national law and not refundable from social secutiry

What costs can we claim?

• The difference between the amount provided by social security and the amount payable to the fellow

(the latter capped at the flat rate provided in the GA)

Will the EU contribution automatically be increased by that amount?

• This is examined on a case-by-case basis and is not decided until the end of the project

– Often, by the end of the project the total amount of costs claimed are less than the maximum EU contribution

therefore no increase is necessary

Marie Curie Actions


Interest on prefinancing

• Interest bearing bank account (for new projects)– Obligation to use Interest bearing bank account for all

coordinators and mono-beneficiaries– Exception for pre-financing of less than 50.000 euro– Following GA and FR, interest must be recovered

• How to declare interests– Interest generated by pre-financing must be declared in the

FORM C (specific box)– They will be offset, usually at the final payment

Marie Curie Actions


FORM C: What is it?• It is a cost statement, a declaration on

honour that its content is real and reliable (also from Audit point of view)

• Has to be filled and submitted by beneficiaries not later than 60 days after the end of each reporting period (electronically and paper)

• Has to be signed by beneficiary’s representative

• Includes projects details, cost categories, indication of receipts, certificates to be included

• It is checked by REA officials against FP7 rules, the GA conditions and the provisional budget established

• If inconsistencies are found beneficiaries are contacted in order to have complementary information

Marie Curie Actions


Certificate on financial statement

– Certificates on the Financial Statements (CFS) are not required for indirect actions entirely reimbursed by means of lump sums or flat rates.

– CFS should be provided only once the threshold mentioned in the GA (EUR 375,000) has been reached.

– EC contribution is equal or superior to EUR 375,000 when cumulated with all previous payments

– Standard EU templates provided– Filled by authorised Auditor at EU level

Marie Curie Actions


Marie Curie Actions


Thank you and good luck!

Nicolo' Giacomuzzi-MooreHead of Sector - Financial Verification

Research Executive Agency

COVE 15/102Place Rogier,16 ,B-1049 Brussels

Tel: +32 2 29 [email protected]

Documents

First Class Support for Excellence in Research Financial aspects of PEOPLE program and actions managed by REA Marie Curie Monitoring Action and Information