Volvox

Understanding the BudgetAngela Pettit – Contracts Officer

Understanding the Budget

• The principles and practice of the Volvox budget.

Principles 1

• Shared cost

• EC will only contribute 50% funding

• Collaborators should contribute 50%.

Principles 2

• We have submitted a three year budget

• We submit first 18 month detailed budget

• We receive 85% of first 18 months as pre-financing

• After each annual audit certificate is accepted that year’s costs are confirmed.

Principles 3• At the end of year 1 we submit another 18

month plan and budget

• We then receive 80% of the costs for the first 30 months less the confirmed first year costs

• The final 20% of project costs are not paid until all the reports have been accepted

• This may change when we know how ESTI will run our subcontract.

Principles 4

• The EC will not release any additional

finance until ALL the consortium reports

and Audit certificates are received.

• If one partner delays in reporting ALL the

partners will be penalised.

Overheads 1

• What are Overheads?

• All non specific costs– Rent, Rates– Light, Heat– Administration– Grounds– IT and Library Support– Etc.

Overheads 2

• EC will not pay for– Profit

– Interest Charges

– Currency losses

– Etc.

Different Cost Models 1

• EC expects Companies to be able to

allocate overheads on a project by project

basis

– They MUST use Full Cost Model.

Different Cost Models 2

• EC accepts that not all Universities and non commercial non-profit organisation finance systems can allocate overheads on a project by project basis.– They may opt for Full Costs Flat model or

– They may opt for Additional Cost model.

Different Cost Models 3

• EC considers that the three methods should

achieve similar results.

Full Cost Model (FC) 1

• This is the usual (EC preferred) option

• Calculate the FULL costs.

Full Cost Model (FC) 2

• Direct Costs

– Salaries, social security and pension costs of

ALL staff (supported by time sheets)

– Equipment

– Consumables

– Travel and Subsistence.

Full Cost Model (FC) 3

• Actual Overhead

– This will be calculated by the finance office of

the Company/Institution.

Full Cost Model (FC) 4

• Annual Financial Statement will show the full costs – Direct and Overhead

• EC fund 50%.

Full Costs Flat (FCF) 1

• Calculate Direct Costs as for the Full Costs

model

• EC allocate up to 20% overhead (except for subcontracts).

Full Costs Flat (FCF) 2

• Annual Financial Statement will show the

full costs plus 20% overhead

• EC fund 50%.

Additional Cost Model (AC) 1• Calculate the Additional costs to the

Institution to do the work

• Salaries etc only of those – with specific temporary contract related to the

Project or– contract of employment depends on funding

additional to recurring funding • Such as NCBE within University of Reading.

• These salaries must be supported by timesheets.

Additional Cost Model (AC) 2

• Other Additional costs– Consumables– Travel and Subsistence– Equipment

• EC allocate 20% overhead (except for subcontracts).

Additional Cost Model (AC) 3

• Annual financial statement will show the full costs plus 20% overhead

• EC pay all costs claimed.

Additional Cost Model (AC) 4• In the annual technical report contractors using

the AC model must identify all the resources employed on the project and a global estimate of all their costs (not just the additional eligible costs which are reported in the financial statement) Annex II 24.(d)

• In the case of salaries these must be supported by timesheets

• These costs are NOT reimbursed.

Management

• Management costs are different– EC will fund full cost– No overhead– Up to 7% of the total budget.

Timesheets 1• Personnel

– Working time to be charged – must be recorded throughout the duration of the project by any reasonable but reliable means. The designated Principal Investigator should certify the record. A simple estimation of hours is not sufficient.

– There must be a system that allows the time of anyone working on the project to be followed and audited.

– Productive hours must be calculated according to the contractor’s normal practices (taking into account national holidays absenteeism etc).

Timesheets 2

• Permanent employees– Who have permanent working contracts which

depends partially on external funding.

• Temporary employees– Who have temporary working contract to carry

out work on EC funded project.

Timesheets 3• Audit

– The Audit will include collection of timesheets for each reporting period:

– Timesheets are required for person (including permanent staff charging management time) funded from the project.

– Contractors using the Additional Cost (AC) model must identify in their periodic technical reports all the resources employed in the project and provide a global estimate of all their costs (not just the additional eligible costs which are reported in the financial statement). Therefore TIMESHEETS should also be used to record Management and Administration time in order to provide a Global Estimate of resources.

Timesheets 4Model Timesheet

Project Name: ........................................................................................... Contract Number: .........................................................................

PI Name: .................................................................................

WP# Work Package - RTD

WP# Work Package - Training H Holiday

Key::

WP# Management O Other (please specify)

PI Signature: .................................................................. Week beginning: ................................................

Mon Tues Wed Thurs Fri Sat Sun Total

WP#

WP#

WP#

H

O

Total

Basis for calculation: EC General Conditions Article 23.1 I certify that the above hours are correct and have been worked. As an approximation, EC rates are calculated as 216 days per year

Each working day is 7.5 hours Rate = 216 days x 7.5 hours per day = 1,620 hours p.a Signed by Project Manager ......................................

Timesheets 5

Monthly Timesheet Summary

WORKING TIME RECORDED ON EC CONTRACT NO: .............................................. Name ...................................................

Month ................................ Year ................................

Hours worked

w/c

w/c

w/c

w/c

w/c

Total hours worked for Month

I certify that the above hours are correct and have been worked.

Signed by Project Manager ..............................................

Financial Statements• However:

• The Financial Statements are split between the type of Activity– Research and Development– Training– Demonstration– Management

• We only report under R&D and Management

The Volvox Budget

• The Aim is to fair between the Partners

• Difficulties– Different Salary charges– Different travel costs– Different cost models

• EC CUT THE BUDGET IN HALF!

Our Principles

• Salaries in accordance with equal percentage of initial requested amount

• Equal Hardware Budget for all

• Equal Software Budget for all

• Equal Audit Costs for all

• Equal Management Costs for all.

Our Principles 2

• Reading will manage the Travel Budget

• Reading will manage the additional software budget.

Budgets 1

Partner Country Cost Salaries HardwareSoftwareCo-or Meetings Sub total OverheadsAudit costs Management Total EC Contrib Global IK%model templates travel maximum costs (7% ) Estimate

1 UREADFB UK AC 54316 2000 1500 9000 154304 221120 44224 3600 1313 270257 270257 159316 593 UT EE AC 19486 2000 1500 0 0 22986 4597 3600 1313 32496 32496 19486 604 COINOR IT AC 48717 2000 1500 0 0 52217 10443 3600 1313 67573 67573 48717 725 UNIPD IT AC 0 2000 1500 0 0 3500 700 3600 1313 9113 9113 9113 1006 EEL LU AC 41744 2000 1500 0 0 45244 9049 3600 1313 59206 59206 41744 717 I IMCB PL AC 24369 2000 1500 0 0 27869 5574 3600 1313 38356 38356 24369 649 UGOT SE AC 59501 2000 1500 0 0 63001 12600 3600 1313 80514 80514 59501 74

10 EDE DE AC 41813 2000 1500 0 0 45313 9063 3600 1313 59289 59289 41813 710 0 0 0 0 0 0 0 0 0 0 0

2 FADB DK FCF 117377 2000 1500 0 0 120877 24175 3600 1313 149965 74983 08 CENCIA VIVAPT FCF 91082 2000 1500 0 0 94582 18916 3600 1313 118411 59206 0

00

Total 498405 20000 15000 9000 154304 696709 139342 36000 13130 885181 750992 404059

Budgets – Year 1

Partner Country Cost Salaries Hardware Software Co-or Meetings Sub total Overheads Audit costs Management Total EC Contrib Global IK %model templates travel maximum costs (7% ) Estimate

1 UREADFB UK AC 17318 2000 1500 9000 42796 72614 14523 1200 438 88774 88774 52318 593 UT EE AC 6213 2000 1500 9713 1943 1200 438 13293 13293 6213 474 COINOR IT AC 15533 2000 1500 19033 3807 1200 438 24477 24477 15533 635 UNIPD IT AC 0 2000 1500 3500 700 1200 438 5838 5838 5838 1006 EEL LU AC 13309 2000 1500 16809 3362 1200 438 21808 21808 13309 617 I IMCB PL AC 7770 2000 1500 11270 2254 1200 438 15162 15162 7770 519 UGOT SE AC 18971 2000 1500 22471 4494 1200 438 28603 28603 18971 66

10 EDE DE AC 13331 2000 1500 16831 3366 1200 438 21835 21835 13331 610 0 0

2 FADB DK FCF 39867 2000 1500 43367 8673 1200 438 53678 268398 CENCIA VIVAPT FCF 31482 2000 1500 34982 6996 1200 438 43616 21808

Total 163794 20000 15000 9000 42796 250590 50118 12000 4377 317085 268438

Budgets – Year 2

Partner Country Cost Salaries Hardware Software Co-or Meetings Sub total Overheads Audit costs Management Total EC Contrib Global IK %model templates travel maximum costs (7% ) Estimate

1 UREADFB UK AC 18105 56378 74483 14897 1200 438 91017 91017 53105 583 UT EE AC 6495 6495 1299 1200 438 9432 9432 6495 694 COINOR IT AC 16239 16239 3248 1200 438 21124 21124 16239 775 UNIPD IT AC 0 0 0 1200 438 1638 1638 1638 1006 EEL LU AC 13915 13915 2783 1200 438 18336 18336 13915 767 I IMCB PL AC 8123 8123 1625 1200 438 11385 11385 8123 719 UGOT SE AC 19834 19834 3967 1200 438 25438 25438 19834 78

10 EDE DE AC 13938 13938 2788 1200 438 18363 18363 13938 760 0 0

2 FADB DK FCF 37959 37959 7592 1200 438 47188 235948 CENCIA VIVAPT FCF 29195 29195 5839 1200 438 36672 18336

Total 163803 0 0 0 56378 220181 44036 12000 4377 280594 238664

Budgets – Year 3

Partner Country Cost Salaries Hardware Software Co-or Meetings Sub total Overheads Audit costs Management Total EC Contrib Global IK %model templates travel maximum costs (7% ) Estimate

1 UREADFB UK AC 18893 55130 74023 14805 1200 438 90465 90465 53893 603 UT EE AC 6778 6778 1356 1200 438 9771 9771 6778 694 COINOR IT AC 16945 16945 3389 1200 438 21972 21972 16945 775 UNIPD IT AC 0 0 0 1200 438 1638 1638 1638 1006 EEL LU AC 14520 14520 2904 1200 438 19062 19062 14520 767 I IMCB PL AC 8476 8476 1695 1200 438 11809 11809 8476 729 UGOT SE AC 20696 20696 4139 1200 438 26473 26473 20696 78

10 EDE DE AC 14544 14544 2909 1200 438 19090 19090 14544 760 0 0

2 FADB DK FCF 39551 39551 7910 1200 438 49099 245498 CENCIA VIVAPT FCF 30405 30405 6081 1200 438 38124 19062

Total 170808 0 0 0 55130 225938 45188 12000 4377 287502 243891