Kickoff, Vienna, 6 & 7 March 07 Thomas MAYER, Monitoring Team The LIFE Common Provisions Part 3: Tasks of Participants, Project Modifications, Partner

Kickoff, Vienna, 6 & 7 March 07 Thomas MAYER, Monitoring Team

The LIFE Common Provisions

Part 3: Tasks of Participants, Project Modifications, Partner Agreements


Participants in a Project

Beneficiary

Co-Financier

EU-Commission

Monitoring Team

Partner 3

Partner 2

Partner 1

Subcontractor

Subcontractor

Subcontractor

Subcontractor

Open AccountingCopyright, patentsnet costs

ResponsibilityEU-Communication

€uro

ServicesProducts

Market Prices

exploitation

€uro / Advice

Advice (non binding)

Project-Implementation

Reports


• is legally and financially solely responsible towards the EC.

• receives the funding on his account, and is responsible to distribute the

money to the partners.

• reports to the EC and is responisible for the reporting.

• is directly and substantially involved in the technical implementation.

• runs an analytical accounting system.

• brings in a financial contribution.

• makes agreements with the partners [see below].

• is responsible for the dissemination of results (Art. 17).

Beneficiary (CP Art. 4)


Partner (CP Art. 5)

• is involved in the technical implementation.


• charges only net costs/marginal costs (e.g. gross salary instead

of market prices)

• opens his accounting for beneficiary and EC.

• runs an analytical accounting system.

• makes agreements with the partners [see below].


Beneficiary + Partners

• The beneficiary and the partners own all documents, inventions

(patents) and know-how, which were gained during the project.

• The beneficiary offers all documents, inventions (patents) and know-

how within the Community under non-discriminating conditions.

• The latter applies until 5 years after the project end.

CP Art 17


Subcontractor (CP Art. 6)

• supports the beneficiary or the partners with external sevices and

products for a limited time.

• does NOT bring in a financial contribution.

• can charge market price (full costs).

• has no rights in the know-how, patents etc.


Co-Financier (CP Art. 7)


• may not be directly involved in the project implementation.


The Monitoring Team

– is independent of LIFE projekts and of the Commission.

– cannot supply legally binding advice.

– is not allowed to take decisions in the name of the EC

– is not involved in the financial administration

– is bound to privacy regulations.


Dissemination of results (CP Art. 17)

• Beneficiary and/or partners are owner of the project results (documents, know-how, inventions, patents ...)

• The beneficiary offers all documents, inventions (patents) and know-how within the Community under non-discriminating conditions. If not, the EC can reclaim the funding!

• However, the beneficiary may sell his results / products (for fair prices/conditions).


Personal Costs

Actual, gross salary and actual yearly number of worked hours are base for calculation of the hourly rate.

Time sheets have to be documented on a daily basis.


Financial Audit

• The financial report must be audited by an independent auditor, in

cases where..

– the EC funding >= €500,000

– the final payment >= €150,000

– interim payments >= €750,000 per fiscal year.

• The auditor‘s report must certify that the financial report complies

with national law and accounting regulations and also with the LIFE

Common Provisions.

CP Art. 27


Dissemination of Results 1

1. Media work (CP §16.1)

2. Web Site (CP §11.7)

– English Version – and other languages

– Interesting for the public!

3. Logo (CP §16)

4. Audio-visual material (CP §18.1)

5. Information board (CP §16.3)


Dissemination of Results 2

6. Events (CP §16.5)

7. "Layman's report" (CP §11.4)

8. "After LIFE Communication Plan"


Project Modification

Change is substantial ?In case of doubt ask Monitoring Team.

Modification Request informMonitoring Team

Yes No

Grant Yes/NoMention in next

Report

Evaluation byCommission


Procedure with substantial changes• Is the changes really substantial? (Art. 13)

• Coordination with MoT and Commission

• Informal request for modification must be submitted including all affected forms of the application (with changes).

• Legally the modification is an „Additional Clause“ to the Commission‘s Decision (Grant Agreement).

• Wait with a modification request until all changes and their impacts are clearly defined.

• Modification requests may be submitted until 3 months before project end, but should be indicated and discussed long before that date.

• EC is restrictive with modifications.


• Modification is described exactly.

• A new time schedule and/or new budget etc. are attached. (depending on the type of modification) and the new budget is compared versus the old budget.

• Altered application forms are attached.

• Necessary guarantees for the project‘s success are submitted (e.g. authority‘s permit, contract etc.)

Conditions 1 for granting of modifications: Completeness


Conditions 1 for granting of modifications: Good Argumentation

• The reason for the change is not within the responsibility of the beneficiary.

• The problems have been tackled.

• The modification is cost efficient.

• The modification enables the project‘s success, which would be not possible without the modification.


Project Prolongation

• An example prolongation request is available at the MoT.

• A modification of the project goal is hardly imaginable (Art. 13.2 Abs.1: „...only possible if the overall goal remains.“).

• A modification of type of content of the main measures and/or the expected main results (Art. 13.2 Abs.2) (Example: Membrane roofing of S-House).

Modification of the project contents


• Modification of financial contributions of the beneficiary or the partners or the co-financiers. (Art. 13.2 par.6: „...the share of contribution decreases significantly.“)

• An increase of decrease of budget categories of more than 10% and 10.000 € (Art. 13.2 par.8).

Financial Modification


Legal Modification

• Change of legal form of the beneficiary or of a partner (Art. 13.2 par. 3)

• Change of beneficiary or partner (Art. 13.2 par. 3: only possible, if the new beneficiary/partner fulfills all funding criteria, which were taken into account during evaluation of the project application.)


Technical/functional Modification

• Modification of the technical or functional role of the beneficiary

or a partner.

i.e. responsibility for certain measures are redistributed to other

participants.(Art. 13.2 par.7: only possible, if the new distribution

of responsibilities fulfills all funding criteria, which were taken

into account during evaluation of the project application..)


Partner Agreements (CP Art.4.7)

(see example agreements.)

• Agreement between beneficiary and partners

• It is advisable to make written agreemeents.

• General issues: financials, court of jurisdiction, exploitation rights, duration, deadlines, responsibilities, liability, privacy, dissemination of results etc.

• Definition of start and end date: maybe other than mentioned in the LIFE-application.


Partner Agreements

• The agreement should adress possible problems, not the ideal case:

– payment only after delivery in line with agreed quality.

– regulations for non-delivery, qualitity issues, delays (penalties).

– duties concerning information (e.g. actual gross salaries, not only type of salary as „BAT 2a“)

– regulations on know-how and exploitation rights.

– meditation in case of conflicts

• Make sure the signing persons have sufficient authorisation.


Partner Agreements

• Formulate the risk situation and motivation of each participant. Then deduct possible problems and adequate regulations :

– participant bears a high riske.g. EU-funding as a buffer in risky new developments or scale-ups.Possible problems: e.g. project abortion, delays, default.

– participant bears a medium riske.g. EU funding reduces costs for installation of a latest technology plant; entering a new market segment.Possible problems: e.g. concentration on technical details,little interest in dissemination and EU formalities.

– participant bears a small riskMain focus maybe to keep staff in work / third party funded research.Possible problems: low effectivity and quality of work.


Partner Agreements

• Proof of costs, open accounting, actual gross salary (pay slips!): to be submitted to the beneficiary and the EC (see §4 in the example agreement)

– copies of invoices (with LIFE-reference on the invoice)

– correctly filled in financial sheets (date of invoice AND date of payment, understandable description)

– privacy regulation regarding salaries

– time sheets, signed in due time

– regulations/penalties for cases, if those duties are not fulfilled within given deadlines


Partner Agreements• penalties,liability (§6+§11)

for cases, that – a partner delivers too late or not at all– a partner delivers low quality– a partner hinders other partners/participants– the Commission does not evaluate eligible certain

products/services/results.

• Regulations concerning the rights of exploitation, patents, licences. Prohibition of competition etc. (§8+ §9)

– Who has which rights of exploitation – Down to which detail will be disseminated publicly?– Duty to publish with LIFE-logo and funding indication.– How will proceeds from dissemination/licences be shared?


Thank you for your attention.

Your Monitoring Team

Documents

Kickoff, Vienna, 6 & 7 March 07 Thomas MAYER, Monitoring Team The LIFE Common Provisions Part 3: Tasks of Participants, Project Modifications, Partner