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EUROPEAN FUNDS

A PRACTICAL GUIDE ON THE

MANAGEMENT AND REPORTING

OF THE EU FUNDING

Bruno Zampaglione

11 novembre 2015

Firenze

http://europa.eu/index_it.htm


MANAGEMENT AND REPORTING OF THE EU FUNDING

REGULATORY FRAMEWORK:Financial regulation (UE) nr. 966/2012

FORM OF COSTS

ELIGIBLE AND INELIGIBLE COSTS

DIRECT AND INDIRECT COSTS

OVERVIEW OF EUROPEAN FUNDS

SOME FUNDINGHow to prepare a budget

H2020: introductionRegulations (UE) nr. 1920 e nr. 1921 del 2013

FOCUS ON H2020Grant Agreement

PAYMENTS AND CONTROLS

FINAL GRANT AMOUNT

REVISED GRANT AMOUNT

AUDITING: key aspects

SUMMARY 2^ Parte

Bruno Zampaglione - Auditing and project management 211/11/2015

SUMMARY 1^ Parte





MANAGEMENT AND REPORTING OF EU FUNDING

REGULATORY FRAMEWORKFinancial regulation

REFERENCES:

Regulation (EU, Euratom) No 966/2012

of the European Parliament and of the Council of 25 October 2012

on the financial rules applicable to the general budget of the Union

and repealing Council Regulation (EC, Euratom) No 1605/2002

(OJ L 298, 26.10.2012, p. 1)

Regulation (EU) No 1268/2012

Commission Delegated of 29 October 2012

on the rules of application of Regulation (EU, Euratom) No 966/2012

of the European Parliament and of the Council on the financial rules

applicable to the general budget of the Union

(OJ L 362, 31.12.2012, p. 1)







Article 1: Subject matter

This Regulation lays down the rules for the establishment and the implementation of the general budget of the European Union and the presentation and auditing of the accounts.

Article 214: Entry into force

This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union.

It shall apply from 1 January 2013.

11/11/2015 Bruno Zampaglione - Auditing and project management 4

FINANCIAL REGULATION 966/2012






Article 58: Methods of implementation of the budget

The Commission shall implement the budget in the following ways:

(a) directly (direct management);

The financial resources are managed centrally by the European Commission that dispenses the founds through participation in the invitation (calls for proposals) published in the Official Journal of the European Union: e.g. Horizon 2020

(B) under shared management with Member States (shared management);

The financial resources are transferred to the member states, in particular the Regions, that on the bases of operational programs will have the assignment to end users: e.g Structural Funds;

(c)indirectly (indirect management)where this is provided for in the basic act or in the cases referred to in points (a) to (d) of the first

subparagraph of Article 54(2), ...i.e. appropriations for pilot projects of an experimental nature designed to test the feasibility of an action and its usefulness ; for preparatory actions in the field of application of the TFEU and the Euratom Treaty.








Funding to direct management

The funds are allocated on the basis of two procedures:

1. Grant

The grants are awarded in the form of co-financing through the publication of “calls forproposals” in the Official Journal of the European Union or through the websites of theDirectorates General (DG) of the European Commission.

Each call is characterized by its modes of application of the proposals, the composition of the partnerships, the intensityof aid from the EU, as well as by the management and reporting of the activities carried out and the resulting costs

2. Tender

The public procurement are awarded through “calls for tenders” for the acquisition ofgoods, services or works in order to enable the functioning of the institutions and theimplementation of sectoral programs.







Article 121: Scope of grants

Grants are direct financial contributions, by way of donation, from the budget in order to finance:

an action intended to help achieve a Union policy objective;

the functioning of a body which pursues an aim of general Union interest or has an objective forming part of, and supporting, a Union policy ('operating grants')

e.g EACEA (Education, Audiovisual and Culture Executive Agency)

Operating grants: Erasmus+; Creative Europe; Europe for citizens;..








Article 121: Scope of grants

Grants shall be covered either by a written agreement or by aCommission decision notified to the successful applicant of a grant.

The Commission may establish secure electronic systems for exchanges with the beneficiaries.










Mechanismof costs






Article 123: Forms of grants

1. Grants may take any of the following forms:

(a) reimbursement of a specified proportion of the eligible costs,

referred to in Article 126, actually incurred;

(b) reimbursement on the basis of unit costs;

(c) lump sums;

(d) flat-rate financing;

(e) a combination of the forms referred to in points (a) to (d).



Life programme [D.G .ENV] (60%)

Marie Sk. Curie actions [D.G .Research]

1st phase of the "SME instrument" - Feasibility Study on the commercial potential of the project idea (50,000 €)

Life programme [D.G .ENV] (7%)

Horizon 2020 [D.G .Research]






Article 123: Forms of grants

2. When determining the appropriate form of a grant, the potentialbeneficiaries' interests and accounting methods shall be taken intoaccount to the greatest possible extent.

3. The Commission shall be empowered to adopt delegated actsin accordance with Article 210 concerning rules for the differentforms of grants, including low value grants.








Article 124:

…………., unit costs and flat-rate financing

4. The grant decision or agreement may authorise or impose, inthe form of flat-rates, funding of the beneficiary's indirect costs upto a maximum of 7 % of total eligible direct costs for the action,except where the beneficiary is in receipt of an operating grant financedfrom the budget. The 7 % ceiling may be exceeded on the basis ofa reasoned decision of the Commission.

5. SME owners and other natural persons who do not receive a salary may declare eligible personnel costs for the work carried out under an action or work programme, on the basis of unit costs determined by way of a Commission decision.



e.g. Horizon 2020 [D.G .Research] (25%)






Article 125:

General principles applicable to grants

3. Grants shall involve co-financing….. without prejudice to the specific rules

laid down in Title IV of Part Two.

4. Grants shall not have the purpose or effect of producing a profitwithin the framework of the action or the work programme of thebeneficiary (‘no-profit principle’).



Justice programme -co-financing (20%)






Article 125:

General principles applicable to grants

Where a profit is made, the Commission shall be entitled torecover the percentage of the profit corresponding to the Unioncontribution to the eligible costs actually incurred by the beneficiaryto carry out the action or work programme.

5. For the purpose of this Title, profit shall be defined as a surplusof the receipts over the eligible costs incurred by thebeneficiary, when the request is made for payment of the balance.








Article 126: Eligible costs

2. Eligible costs are costs actually incurred by the beneficiary of a grantwhich meet all of the following criteria:

a) they are incurred during the duration of the action or of the work

programme, with the exception of costs relating to final reports and auditcertificates;

b) they are indicated in the estimated overall budget of the action or work

programme;

c) they are necessary for the implementation of the action or of the workprogramme which is the subject of the grant;









d) they are identifiable and verifiable, in particular being recorded in theaccounting records of the beneficiary and determined according to theapplicable accounting standards of the country where the beneficiary isestablished and according to the usual cost accounting practices of thebeneficiary;

e) they comply with the requirements of applicable tax and sociallegislation;

f) they are reasonable, justified, and comply with the principle of soundfinancial management, in particular regarding economy and efficiency.









3. Calls for proposals shall specify the categories of costsconsidered as eligible for Union funding.

Without prejudice to the basic act and in addition to paragraph 2, thefollowing categories of costs shall be eligible where theauthorising officer responsible has declared them as such underthe call for proposals:

(a) costs relating to a pre-financing guarantee lodged by the beneficiary of

the grant, where that guarantee is required by the authorising officer responsible pursuant to Article 134; (e.g. possibility of a financial risk)









(b) costs relating to external audits where such audits are required insupport of the requests for payments by the authorising officer responsible;

(c) value added tax (VAT) where it is not recoverable under theapplicable national VAT legislation and is paid by a beneficiary other than anon-taxable person as defined in the first subparagraph of Article 13 of CouncilDirective 2006/112/EC of 28 November 2006 on the common system of valueadded tax.

(d) depreciation costs, provided they are actually incurred by the beneficiary;

(e) salary costs of the personnel of national administrations to the extent that they relate to the cost of activities which the relevant public authority would not carry out if the project concerned were not undertaken.








Eligible costs: depth study

The grant can only reimburse eligible costs.

This means that the beneficiaries (and linked third parties) must:

at reporting stage: declare only eligible costs in your financial statements;

at proposal stage: enter only eligible costs into the estimated budget for your action.

Moreover, the burden on proof for eligibility is on the beneficiaries (and linkedthird parties). They must keep sufficient supporting documents to show that thecosts they declare are eligible.


IMPORTANTE






EXAMPLE: BUDGET

The building of a realistic budget needs a serious and analytical cost planning.


A B C D E F G H I J

Participant Country Direct Personnel

Cost

Other Direct Costs Direct Costs of

Sub-Contracting

Direct costs of

providing

financial

support to third

parties

Costs of inkind

contributions

not used on

the

beneficiary's

premises

Indirect Costs

(=0.25(A+B-E))

Special unit

costs covering

direct &

indirect costs

Total

estimated

eligible costs/€

(=A+B+C+D+F +G)

Reimbursement

rate

Max. grant

(=H*I)

xxx IT 565.838 225.720 - - - 197.890 989.448 100% 989.448

BUDGET FOR PROPOSAL

Anno 1 2 3 4 5 Tot. Periodi Totale s/voce Totale voce TOTALE

A1 PI Principal Investigator in staff * 10.406 10.406 10.406 10.406 10.406 52.030

A1 Personnel in staff (Prof/Ric/tech/other already in staff) * 49.136 30.376 30.376 36.960 36.960 183.808

A2 Principal Investigator to be hired (50 k€) -

A2 Post PHD 90.000 60.000 60.000 60.000 60.000 330.000

A2 Cococo / Assunzioni CCNL -

A2 PHD -

A2 Other -

A.3. Seconded PersonsA3 Seconded Persons by Third Party who work on the beneficiary's

premises- 0

A.4. SME Ow ners

w ithout salary.A4 SME owners - -

A.5. Beneficiaries that

are natuarl persons

w ithout salary

A5 Beneficiary that are natural persons - -

[A.6. Personnel for

providing access to

research infrastructure]

A6 Personnel for providing access - -

Personell by Third Party who work on the Third Party's premises - 0

235.838

330.000

565.838

A.1. Personnel

565.838

A D

IRE

CT

PE

RS

ON

NE

L C

OS

TS

A.2. Natural persons

under direct contract

(to be hired)






Eligible costs: depth study

There are two important conditions to eligibility of costs:

general eligibility conditions applicable per cost form

specific eligibility conditions applicable per budget category







General eligibility conditions

applicable per cost form

Actual costs

Unit cost

Lump sums

Flat rate


Art 123 F.R.








In order to be eligible, actual costs must be:

actually incurred by the beneficiaryi.e. real and not estimated, budgeted or imputed and definitively andgenuinely borne by the beneficiary (not by any other entity);

i.e: Depreciation costs for equipment used for the action are those actually incurred,not the full cost of the equipment;

Total equipment cost = 800.000€ - Invoice date: 5 months after project start

Duration of the project: 60 months / Equipment depreciation rate: 60 months – The amount of percentage used : 50%

Total costs charged to the project = 800.000 x (55/60) x 50% = 366.667€

For in-kind contributions provided by third parties free of charge and costs of linkedthird parties the costs must be actually incurred by the third party.


enter in the budget 366.667€ (not 800.00€)








incurred during the action duration i.e. the generating event that triggers the costs must take place during the action duration that is the period running from the action starting date to the end date of the action.

Example: A conference for which costs are claimed must take place during the action duration.

Specific cases:

Costs for reporting at end of the action — Costs related to drafting and submitting the periodicreport for the last reporting period and the final report are eligible even if they are incurred afterthe action duration.

Those costs include the cost of certificates on the financial statements required by the GA and the cost of participating ina final review carried out by the Commission/Agency before the submission of the final reports. They do NOT extend toresearch or innovation activities undertaken after the end date of the action.


start end








Specific cases:

Costs related to preparing, submitting and negotiating the proposals cannot be declaredas eligible for the action (they are incurred before the action starts).

Costs related to drafting the consortium agreement are not eligible because theconsortium agreement should be signed before the action starts. However, costs related toupdating the consortium agreement are eligible if incurred during the action duration

If costs are (invoiced or) paid later, they are eligible only if the debt (andinvoice) exists and the final cost is known.

The beneficiary must have an obligation to pay.


start end

Not eligible








entered as eligible costs in the estimated budget of the action, under the relevant budget category.

When the final amount of the grant is calculated, the eligible costs cannot include costs under budget categories that did not appear in the action estimated budget, unless the initial estimated budget was amended or if these additional costs were approved.


A B C D E F G H I J

Participant Country Direct Personnel

Cost

Other Direct Costs Direct Costs of

Sub-Contracting

Direct costs of

providing

financial

support to third

parties

Costs of inkind

contributions

not used on

the

beneficiary's

premises

Indirect Costs

(=0.25(A+B-E))

Special unit

costs covering

direct &

indirect costs

Total

estimated

eligible costs/€

(=A+B+C+D+F +G)

Reimbursement

rate

Max. grant

(=H*I)

xxx IT 565.838 225.720 - - - 197.890 989.448 100% 989.448

BUDGET FOR PROPOSAL








connected to the action as described in the relevant Annex

They must be necessary necessary to achieve the action’s objectives

The EU/Euratom grant cannot be used to finance activities other than thoseapproved by the Commission.

i.e: the simple participating in a conference is not eligible (not connected to the action)









identifiable and verifiable

come directly from the beneficiary’s accounts, be directly reconcilablewith them and supported by documentation.

Accounting documentation is necessary only for actual costs.

The beneficiaries must be able to show, with records and supporting documents, the actualcosts incurred.

What was actually paid for the work and for depreciation costs: how have been actuallyrecorded in the beneficiary’s profit and loss accounts.

Indirect costs do not need supporting evidence because they are declared using a flat-rate.









Costs must be calculated according to the applicable accounting rules of thecountry in which the beneficiary is established and according to the beneficiary’susual cost accounting practices.

This principle cannot be used as justification for non-compliance with otherGA provisions.

It is clear that a beneficiary is obliged to introduce any changes necessaryto bring its usual cost accounting practices in line with all GAprovisions.









in compliance with applicable national laws on taxes, labourand social security

reasonable, justified and must comply with the principles of sound financial management, in particular regarding economy and efficiency

be in line with good housekeeping practice when spending public money and not be excessive

‘Economy’ means minimising the costs of resources used for an activity while maximising

quality;

‘Efficiency’ is the relationship between outputs and the resources used to produce them.


Best value for money








Two condition of eligibility

1. they must be calculated as follows:

amounts per unit set out in relevant Annex or calculated by thebeneficiary in accordance with its usual cost accounting practices

multiplied by the number of actual units;

i.e 200€ per test (amounts per unit) X n. 100 analysis (number of actual units)









2. the number of actual units must comply with the followingconditions:

the units must be actually used or produced in the project period;

the units must be necessary for implementing the action or produced by it

the number of units must be identifiable and verifiable, in particularsupported by records and documentation.

The beneficiaries must be able to show with records and supporting evidence that thenumber of units declared was actually used for the action.

The actual costs of the work are not relevant.









they must be calculated by applying the flat-rate set out in theAnnex, and

the costs to which the flat-rate is applied must comply with theconditions for eligibility set out in the Grant Agreement.

In order to be eligible, flat-rate costs must be calculated by applying a flatrate to the relevant eligible costs (whether actual, unit or lump-sum costs).

The beneficiaries must be able to show that the costs to which the flat-rate is applied are eligible.









the eligible amount is equal to the amount set out in Annex, and

the corresponding tasks or parts of the action must have been properly implemented in accordance with Scientific Annex.

The beneficiaries do not need justifiy actual costs but

must be able to show that the action tasks have been carried out as described in the scientific Annex of the Grant .







Specific conditions for costs to be eligible

Direct costs are those costs directly linked to the actionimplementation and can therefore be attributed to it directly.

Are those which support all the research, management, training anddissemination activities necessary for the conduct of the project.

the costs have to be determined (originated) by the activities of the action;

the costs have to be determined (originated) by the activities of several actions(projects) the attribution of which to a single project can, and has been, directlymeasured and not attributed indirectly via an allocation a cost driver or a proxy.


Direct and indirect costs







Another…

The costs declared by a beneficiary as a direct costs of the action mustbe justified by supporting evidence and be directly reconcilablewith the beneficiary’s accounts.

and

are identified by the beneficiary as such, in accordance with itsaccounting principles and its usual internal rules.









Indirect costs, also called overheads, are those costs whichcannot be identified as directly attributable to the project, butwhich are incurred in direct relationship with the project's directeligible costs to the performance of the action.

Indirect costs are charged under the form of a flat-rate of theeligible direct costs.

i.e: in Horizon 2020, indirect costs are declared as a 25% fixed flat-rate of the eligible directcosts (minus certain direct eligible costs).









Generally, the costs are eligible if they are comply at the specific conditions set out for each of the following budget categories:

Personnel costs

Subcontracting

Other direct costs(More sub-categories of costs)

Indirect costsBruno Zampaglione - Auditing and project management 3811/11/2015








FOCUS

Generally, the personnel costs are eligible, if they are related to:

personnel working for the beneficiary (full/temporary time)

under an employment contract (or equivalent appointing act)

and assigned to the action


Personnel costs






http://www.google.it/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCMHWuYCty8gCFYa2FAodaHQAog&url=http://www.giornaledellepmi.it/come-aumentare-la-competitivita-e-ridurre-i-costi/&bvm=bv.105454873,d.d24&psig=AFQjCNHP9vfli1ENDk2rmJAvDv_9PTR43w&ust=1445234645373690

http://www.google.it/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCMHWuYCty8gCFYa2FAodaHQAog&url=http://www.giornaledellepmi.it/come-aumentare-la-competitivita-e-ridurre-i-costi/&bvm=bv.105454873,d.d24&psig=AFQjCNHP9vfli1ENDk2rmJAvDv_9PTR43w&ust=1445234645373690



They are eligible, if all of the following apply:

are mandatory under national law, collective labour agreements or theemployment contract;

are paid to the employee (or benefit to him/her) for his/her usual work, dutiesor tasks (as defined in the employment contract or equivalent appointment act);

The personnel (doesn’t matter whether works part time or full time or with atemporary or permanent employment contract) must be assigned to the action’ (i.e.work for the action according to internal written instructions, organisation chart or otherdocumented management decision).

If the employee does not work exclusively on the action, personnel costs can becharged only in proportion to the time dedicated to the action.


Personnel costs







They must be limited to salaries (including during parental leave), socialsecurity contributions, taxes and other costs included in the remuneration,if they arise from national law or the employment contract (or equivalentappointing act).

The basic remuneration comprise basic salary and complements

The basic salary includes (and is limited to):

the salary stated on the beneficiary’s payroll,

social security contributions,

taxes and other costs included in the remuneration.


Personnel costs







The complements may include:

mandatory complements to the basic salary resulting from national law,collective labour agreement or the employment contractExample a 13th month payment; complement for hazardous work or night shifts;

variable complements to the basic salary if are authorised by national law, collective labour agreement or the employment contract/equivalent appointing act


Personnel costs







Parental leave

Salaries and social security contributions paid during parental leave (either maternity leave or parental leave) are eligible as part of the basic salary only if:

they are mandatory under national law, collective labour, employment contract

the beneficiary has actually incurred them

they are not reimbursed by national (central, regional or local) authorities


Personnel costs







calculation METHOD

HOURLY RATE X NUMBER OF ACTUAL HOURS WORKED ON THE ACTION

ONLY hours actually worked on the action can be counted;

The number of actual hours declared for a person must be identifiable andverifiable


For personnel costs (declared as actual costs or on the basis of unit costs), the beneficiaries mustkeep time records for the number of hours declared. The time records must be in writing andapproved by the persons working on the action and their supervisors, at least monthly.

Personnel costs







HOURLY RATE: Calculation

actual annual personnel costs for the person

divided

by number of annual productive hours

Es. A nuclear researcher working for a public research laboratory.Annual salary: EUR 50 000- annual productive hours worked 1600 (arising from the timesheet )Hourly rate for the action = {(50 000)/1 600} = EUR 31,25

The total number of hours declared in EU or Euratom grants, for a person for ayear, cannot be higher than the annual productive hours used for thecalculations of the hourly rate.


Timesheet

Personnel costs







Costs for natural persons working under a direct contract

These costs must comply with the following conditions for eligibility:

there must be a direct contract between the natural person (individual) and the beneficiary;

the person must work under the beneficiary’s instructions and, unless otherwise agreed with the beneficiary, on the beneficiary’s premises;

the result of the work carried out must belong to the beneficiary;

not be significantly different from costs for personnel performing similar tasks under an employment contract with the beneficiary.


Personnel costs







The remuneration must be based on working hours, rather than on deliveringspecific outputs/products. This implies that the beneficiary must keep records of the hoursworked for the action (e.g. time-sheets)

This is typically the case of in-house consultants (i.e. self-employed natural personsworking part-time or full-time for the action; not companies).

calculation METHOD

HOURLY RATE

X

NUMBER OF ACTUAL HOURS WORKED ON THE ACTION


Personnel costs







Direct costs of subcontracting, including related duties, taxes and chargessuch as non-deductible value added tax (VAT), paid by the beneficiary areeligible.

They must be related to the performance of tasks provided in therelevant scientific Annex.

There is no specific calculation method. The costs must correspond to theeligible costs actually incurred.

This budget category covers (and is limited to) the price paid for subcontractsand related taxes.


Subcontracting costs







1. TRAVEL COSTS and related subsistence allowances;

2. DURABLE GOODS:depreciation costs of equipment, infrastructure

or other assets;

3. OTHER GOODS AND SERVICES: consumables, analysis;

pubblication, ecc


Other Direct Costs







1. Travel costs and related subsistence allowances

This budget category covers the travel costs and related subsistenceallowances (including all related duties, taxes and charges that the beneficiary haspaid) necessary for the action (e.g. to present a paper explaining the results of aconference).

All travel costs must be limited to the needs of the action

Travel costs related to an event at which the beneficiary carried out work that was notspecifically related to the action or costs related to extensions (for other professional orprivate reasons) are NOT eligible.


Other Direct Costs








There are three particular types of travel:

FOR PARTICIPATION IN MEETINGS, CONFERENCES, WORKSHOPS

e.g. to present a paper explaining the results of a conference

FOR PROJECT MEETINGSe.g. twice yearly meetings between the partners to check the progress of scientific and financial project

FOR RESEARCHe.g. sample collection


Other Direct Costs








Travel and subsistence costs must be adequately recorded and be in line withthe beneficiary’s usual practices on travel.

Generally, there is no specific calculation method. The costs mustcorrespond to the eligible costs actually incurred.

If the beneficiary reimburses travel and/or related subsistence allowances as a lump sum and/or per diem payment, it is the lump

sum or per diem amount that is considered an eligible cost, not the actual prices paid by the person receiving the lump sum or

the person receiving the lump sum or per diem.


Other Direct Costs







2. DURABLE GOODS: DEPRECIATION COSTS OF

(EQUIPMENT, INFRASTRUCTURE OR OTHER ASSETS)

This budget category covers the costs of purchase of durable goodsas equipment, infrastructure or other assets, used for the action andregistered with an inventory number.

It refers to goods (assets) that have a long-term utility. (utilità pluriennale)

Generally, the costs of durable goods must be declared as actual costs.


Other Direct Costs









Generally, the cost of equipment purchase can be charged to theproject if they respect the following rule:

only the cost depreciated, in accordance with the nationaldepreciation rules, will be considered eligible. If such rules do not exist,EU depreciation rules will be applied (International accounting standards).

“International accounting standards” are an internationally recognised set of rules for maintaining books andreporting company accounts, designed to be compared and understood across countries.


Other Direct Costs









They must be calculated according to the following principles:

the depreciable amount (purchase price) of an asset must be allocated on a systematic basis over its useful life (i.e. the period during which the asset is expected to be usable);

depreciation can NOT be spread over a period longer than the equipment’s useful life;

depreciated equipment costs can NOT exceed the equipment’s purchase price.

The depreciation costs must be calculated for each reporting period.


Other Direct Costs









In some cases (e.g. infrastructure), purchase costs may include the costsnecessary to ensure that the asset is in good condition for its intendeduse (e.g. site preparation, transport, delivery, installation, etc.).

If the beneficiary does not use the equipment, assets, etc. exclusively for the action, onlythe part of the equipment’s or asset’s ‘working time’ for the action may becharged (i.e. the percentage of actual use and time used for the action).

The amount of use (percentage and time used) must be auditable.


Other Direct Costs

Equipment not used exclusively for the action

Machine’s timesheet







Explampe: calculation of depreciation costs

Total value of equipment purchased: EUR 10.000

Assumed useful life : five years (60 months)

Duration of the eligibility for cost in grant agreement:1/01/2015 to 31/12/2018 (48 months)

Date of purchase (= date of invoice): 01/09/2016

The period of use for the project will then be not more than 28 months.

Suppos that the utilisation rate will be 60%.

The total amount payable for depreciation under the grant will then be:

28/60*10.000€ * 60% = 2.800€

Eligible cost for the project = 2.800€


Other Direct Costs









Depreciation costs for equipment used for the action but bought before theaction start is eligible. These remaining depreciation costs (the equipment hasnot been fully depreciated before the action’s start) may be eligible only for theportion corresponding to the action duration and to the rate of actual use for thepurposes of the action.

If the work programme so provides, this budget category may covers the fullpurchase costs of capitalised equipment, infrastructure or other assetsused for the action (not only the depreciation costs for the relevant periodicreport).


Other Direct Costs









Costs of renting or leasing equipment

they do not exceed the depreciation costs of similar equipment,

infrastructure or assets,

they do not include any financing fees.


Other Direct Costs









Leasing (finance leasing) with the option to buy the durable equipment:

The equipment leased by the beneficiary is recorded as an asset of the beneficiary and thecorresponding depreciation costs may be charged in accordance with the beneficiary’s usual accountingpractices.

The cost claimed cannot exceed the costs that would have been incurred if the equipment had beenpurchased and depreciated under normal accounting practices. The finance charges included in thefinance lease payments are thus ineligible.

The costs declared under the action cannot include any interest on loans taken to finance the purchase,or any other type of financing fee.


Other Direct Costs









Renting and operational leasing:

The equipment rented or leased by the beneficiary is not recorded as an asset of thebeneficiary. There is no depreciation involved (as the item is still the property of therenting or leasing firm), but the rental or lease costs of the beneficiary (i.e. itsperiodic payments to the renting or leasing firm) are eligible, if they follow thebeneficiary’s usual practices and do not exceed the costs of purchasing the equipment (i.e.are comparable to the depreciation costs of similar equipment).


Other Direct Costs







3. OTHER GOODS AND SERVICES

This budget category covers the costs for goods and services that were purchased for the action (nedeed) and including:

costs for consumables;

dissemination costs;

translation costs;

If requested, costs for certificates on financial statements (CFS) (internal Audit)

Generally, the costs of other goods and services must be declared as actual costs.


Other Direct Costs







Indirect costs

This budget category covers all costs for the action that are notdirectly linked to it.

Typically, they include administration and management fees, depreciationcosts of durable goods (share ineligible), maintenance costs, telecommunicationand postal fees, heating, water supply, electricity or other forms ofenergy, office furniture, office stationery, and insurance policies.








Generally, they are eligible if are declared on the basis of the flat-rate of 7% of the eligible direct costs.

from which are often excluded:

costs of subcontracting

costs of, eventual in-kind contributions, provided by thirdparties which are not used on the beneficiary’s premises







Ineligible costs

costs related to return on capital;

debt and debt service charges;

provisions for future losses or debts;

interest owed;

doubtful debts;

currency exchange losses;

bank costs charged by the beneficiary’s bank for transfers from the Commission

excessive or reckless expenditure;

deductible VAT;

In Italy, IRAP

costs incurred during suspension of the implementation of the action;

costs declared under another EU grant







The most part of the funding are characterized by the followingactivities:

Research and Technological Development Activities ;

Demonstration activities;

Management activities;

Training activities;

Dissemination activities;Bruno Zampaglione - Auditing and project management 6711/11/2015

Activities of the project

Work Packages (tasks)






Example: BUDGET PER WP


HEADING BUDGETWP1 WP2 WP3 WP4 WP5 WP6 WP7 Totals

Management DisseminationRTD 1 costruzione

del prototipo

RTD 2

analisi e verifica

RTD 3

produzione e

testing

Demonstration Training

1. Direct Costs 25.609 72.290 322.844 208.126 216.672 61.087 17.203 923.831

1.1 Personnel Costs 15.609 32.290 115.844 108.126 136.672 27.087 5.203 440.831

1.2 Other Direct Costs10.000 40.000 207.000 100.000 80.000 34.000 12.000 483.000

Travel costs and related subsistence allowances 10.000 12.000 5.000 - 5.000 9.000 12.000 53.000

Goods and Services costs - 27.000 150.000 100.000 75.000 25.000 - 377.000

Equipment costs - 1.000 52.000 - - - - 53.000

2. Indirect Costs (7%) 1.793 5.060 22.599 14.569 15.167 4.276 1.204 64.668

3. Subcontracting costs0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00

3 TOTAL COSTS PER WP 27.402 77.350 345.443 222.695 231.839 65.363 18.407 988.499

% of total Project 2,77% 7,83% 34,95% 22,53% 23,45% 6,61% 1,86% 100,00%

XY






The following activities were (and still are) rembursed as follows:

Research and Technological

Development Activities

Demonstration activities;

Management activities;

Training activities;

Dissemination activities;



Funding limits

75%

50%

100%

100%

100%

Indirect costs

60% Specific flat rate

20% Specific flat rate






FUNDING SCHEMES


The European Fundings: overview

Affari economici e finanziari (ECFIN) Affari interni (HOME) Affari marittimi e pesca (MARE)Agricoltura e sviluppo rurale (AGRI) Aiuti umanitari (ECHO) Allargamento (ELARG) Ambiente (ENV) Azione per il clima (CLIMA) Bilancio (BUDG)Centro comune di ricerca (JRC) Commercio (TRADE) Comunicazione (COMM) Concorrenza (COMP)Energia (ENER) EuropeAid - Sviluppo e cooperazione(DEVCO)Fiscalità e unione doganale (TAXUD) Giustizia (JUST)

Imprese e industria (ENTR)Informatica (DIGIT)Interpretazione (SCIC)Istituto statistico - Eurostat (ESTAT) Istruzione e cultura (EAC) Mercato interno e servizi (MARKT) Mobilità e trasporti (MOVE) Occupazione, affari sociali e integrazione (EMPL)Politica regionale (REGIO)Reti di comunicazione, contenuti e tecnologie (CNECT) Ricerca e innovazione (RTD)Risorse umane e sicurezza (HR)Salute e consumatori (SANCO) Segretariato generale (SG)Servizio degli strumenti di politica estera(FPI)

LIFE

JUSTICE

H2020






FUNDING SCHEMES



DG ENVIRONMENT - Life Programme 2014-2020

Max 60% funding

Min 40% co-funding

2% rule on the personnel

(only for public bodies)

max 7% overheads






Importance of the relevant guidelines

Funding is based on cost-sharing. This means that the Commission contributesup to a maximum percentage of the eligible costs incurred for the performance of

the work as defined in the grant agreement.

a) The maximum EU financing rate for traditional LIFE projects is 60% of thetotal eligible costs; (2014 - 2017)

b) The coordinating beneficiary and any associated beneficiaries are expected toprovide a reasonable financial contribution to the project budget;

c) A proposal cannot be submitted if the financial contribution of any of thebeneficiaries to the proposal budget is euro 0.








Personnel

a) The sum of the public bodies’ contribuitions (as coordinating beneficiaryand/or associated beneficiary) to the project budget must exceed ( by at least2%) the sum of the salary costs charged to the project for personnel who arenot considered “additional”

Additional: include the costs of all personnel – permanent or temporary- of public bodieswhose contracts or contracts renewals:

- Start on or after the start date of the project or on or after the date of signature of thegrant agreement by the Contracting Authority in case di signature takes place beforethe project start date, and

- Specifically mention the LIFE project








Personnel

Calculation of the hourly rate:

The hourly rate is obtained by dividing the actual annual gross salary orwages plus obligatory social charges and any other statutory costsincluded in the remuneration of an employee by the total annual productivehours

Default value of 1720 total annual productive hours is used.

In case the beneficiary wishes to use an amount other than 1720 hours, it mustjustify the alternative figure on the basis of a reliable time registration system.

The total annual productive hours for each employee is the time actuallyworked according to the time registration system. It will normally result ina different number of annual working time units for each employee.








Subcontracting costs

Are eligible if:

cover the implementation by a third party of tasks described in therelevant Annex (II);

covers the implementation of a limited part of the project, in principlelimited to 35% of the total budget unless a higher level is justified;

Justified having regard to the nature of the project and what is necessaryfor its implementation.








Durable goods

Application of the depreciation rate, which must be in line with thebeneficiary’s internal accounting rules and/or in accordance withnational accounting rules, a copy of which should be included in the projectfile.

That depreciation is limited to a maximum of 25% of the actual cost forinfrastructure and a maximum of 50% of the actual cost for equipment.









cost categories Total eligible costs

1. Personnel 175.664

Permanent staff or civil servant 97.813

Temporary staff specifically hired for this project 77.851

2. Travel and subsistence 11.738

3. External assistance 5.820

4. Durable goods -

Infrastructure -

Equipment -

Prototype -

6. Consumables 35.000

7. Other costs 5.400

Direct cost 233.622

8. Overheads 16.354

Total costs 249.976

Budget breakdown

Life 2015

rule2%

1.956

min. cofunding

99.769

Requested EC Contribution 149.985 60,00% max 60%

Co financing 99.991 40,00% min 40% OK

BUDGET LIFE (Public body)







Budget breakdown categories Total cost in € Eligible Cost in € % of total

eligible costs

1. Personnel 70,27%

2. Travel and subsistence 4,70%

3. External assistance 2,33%

Infrastructure 0 0 0,00%

Equipment 0 0 0,00%

Prototype 0 0 0,00%

5. Land purchase / long-term lease 0,00%

6. Consumables 14,00%

7. Other Costs 2,16%

8. Overheads 6,54%

TOTAL 249.976 249.976 100%

Contribution breakdown In € % of TOTAL % total eligible

costs

Requested European Union contribution 149.985 60,00% 60,00%

Coordinating Beneficiary's contribution 0 0,00%

Associated Beneficiaries' contribution 99.991 40,00%

Co-financers contribution 0 0,00%

TOTAL 249.976 100,00%

175.664

11.738

5.820

16.354

4. Durable goods

0

35.000

5.400






FUNDING SCHEMES



DG JUSTICE - Programme 2014-2020

Max 80% funding

Min 20% co-funding

max 7% overheads






Importance of the relevant guidelines

The Union’s financial contribution may not exceed 80% of thetotal eligible costs of the action.

A minimum of 20% of the total eligible costs must therefore becovered by the Applicant organisation and/or Co-beneficiaryPartners, Associate Partners or by another source.








The budget estimate must be in Euro in which revenue and expenditureare in balance.



Estimated Expenditure(100 %)

Eligible direct costs+

Eligible indirect costs(overheads)

Estimated income100%

Grant: contribution of the EU

+ Financial contributions

specifically assigned by donors to the financing of the eligible

costs +

Other income, including own contribution from beneficiaries

=






The activities should be grouped together under separateWORKSTREAMS in a logical, consistent and structured way.

Each workstream then constitutes a sub-part of the project.

Each project will have a minimum of two workstreams:

workstream 0 with the management and coordination activities

and

workstream 1 with outputs/deliverables related to the objective of theproject.









DG JUSTICE - Programme 2014-2020 Example: Budget

Estimated Expenditure %

A Staff 105.096,00

B Travel 18.570,00

C Equipment 6.000,00

D Consumables 24.000,00

E Other direct costs 24.886,00

Total Direct

Costs178.552,00

F Indirect costs 12.234,00 6,85%

Total Eligible

Costs190.786,00

G Contribution in kind 0,00

Total Costs 190.786,00

Estimated Income

I Other contribution 0,00 0,00%

K Contribution from beneficiary/-ies 38.152,00 20,00%

Contribution from EC 152.634,00 80,00%

Total 190.786,00

G Contribution in kind 0,00

Total Income 190.786,00

Staff Costs (Personnel) = rule

This rule refers to costs ofpermanent staff of a publicorganisation.

Salary costs of permanent staff of apublic organisation may be fundedonly to the extent that they relateto the costs of project activities thatthe public organisation would nothave carried out had the projectconcerned not been undertaken.

Those activities must represent anadditional cost for the organisation

It is not applicable to staff costs ofuniversities.







DG JUSTICE - Programme 2014-2020 Example: Budget

Budget

heading

Name of

Beneficiary

Workstream Description of item

Answer to the questions: Who and/or What ?

[e.g.Functions/tasks in the project (Heading A); Estimated

destination (Heading B); estimated depreciation (Heading C),

etc]

Unit

(days, flight,

DSA, etc)

Amount

per unit

in EURO

Number

of units

Total EURO Additional

information

A UNIMI Workstream 0

Professor , already employed by the university of Milano - 60 days

part-time

days

164,70 60,00 9.882,00


Researcher, already employed, he is going to w ork on the project for

55 days Full time

days

130,00 55,00 7.150,00


Researcher, already employed, she is going to w ork on the project for

50 days part time

days

130,00 50,00 6.500,00

Budget

heading

Name of

Beneficiary

Workstream Description of item

Answer to the questions: Who and/or What ?

[e.g.Functions/tasks in the project (Heading A); Estimated

destination (Heading B); estimated depreciation (Heading C),

etc]

Unit

(days, flight,

DSA, etc)

Amount

per unit

in EURO

Number

of units

Total EURO Additional

information

B UNIMI Workstream 0 Flight for one person for the kick-off meeting in Bruxelles Flights 200,00 1,00 200,00

B UNIMI Workstream 0 Accomodation per day (2) per person in Bruxelles DSA 220,00 1,00 220,00

B UNIMI Workstream 1

Accomodation for 2 researchers for one night for the second training

meeting in Sevilla

DSA

150,00 2,00 300,00


Accomodation for 2 researchers for one night for the third training

meeting in Paris

DSA

150,00 2,00 300,00


Accomodation for 2 researchers for one night for the first training

meeting in Bologna

DSA

150,00 2,00 300,00





REFERENCE DOCUMENTS

FINANCIAL REGULATION (EU) No 966/2012

This Regulation lays down the rules for the establishment and the implementation of the general budgetof the European Union and the presentation and auditing of the accounts.

It entered into force on 1 January 2013

REGULATION (EU) No 1291/2013

establishing Horizon 2020 - The Framework Programme for Research and Innovation(2014-2020)


laying down the rules for participation and dissemination in "Horizon 2020”

GRANT AGREEMENT

The Agreement sets out the rights and obligations and the terms and conditions applicable to theGRANT awarded to the beneficiaries for implementing the ACTION.

Bruno Zampaglione - Auditing and project management

8611/11/2015


Important





News (2014-2020)

REDUCE: Different sets of rules; Administrative burden; Complexity;Excessive control; Time-to-grant; Time-to-pay.

INCREASE: Trust; Reliance on the usual accounting practices;

Consistency in the application of the rules; Innovation

MAINTAIN & IMPROVE: Reimbursement of real costs as the main funding

manner; Simplification measures; Funding levels


8711/11/2015









establishing Horizon 2020

the ‟Framework Programme for Research and Innovation” (2014-2020)

THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

11 Dicember 2013






Horizon 2020 focuses on three priorities, namely generating excellent science inorder to strengthen the Union's world-class excellence in science, fostering industrialleadership to support business, including micro, small and medium-sized enterprises(SMEs) and innovation, and tackling societal challenges, in order to respond directly tothe challenges identified in the Europe 2020 strategy by supporting activities covering theentire spectrum from research to market.


REGULATION (EU) No 1291/2013 establishing Horizon 2020 the ‟Framework Programme for Research and Innovation” (2014-2020)





F.P. Horizon 2020 is the financial instrument implementing the Innovation

Union, a Europe 2020 flagship initiative aimed at securing Europe's global competitiveness

Through three fundamental priorities:

create scientific excellence

create a European industrial leadership

tackling the problems (challenges) of society







La struttura di HORIZON 2020

3 Pilastri e da 5 Programmi trasversali

ONE - Excellence Science

Frontier research (ERC)Frontier Research by the best individual

teams (ERA)

Future and Emerging

Technologies (FET)Collaborative research to open new

fields of innovation

Marie Sklodowska-Curie

actionsOpportunities for training and career

development

Research infrastructuresEnsuring access to world –class facilities

TWO - Industrial Leadership

Leadership in enabling

and industrial technologies

- ICT

- NANOTECHNOLOGIES MATERIALS

- BIOTECHNOLOGIES

- MANUFACTURING

- SPACE

Access to risk finance

Leveraging private finance and venture capital for research and innovation

Innovation in SMEs

Fostering all forms of innovation all types of SMEs

THREE - Tackling Societal Challenges

Health, demographic change and wellbeing

Food security, sustainable agriculture and forestry, marine, maritime and inland water research, and the bioeconomy

Secure, clean and efficient energy

Smart, green and integrated transport

Climate action, environment, resource efficiency and raw materials

Europe in a changing world -Inclusive, innovative and reflective societies

Secure societies - Protecting freedom and security of Europe and its citizens

European Institute of Innovation and Technologies (EIT)

Spreading Excellence and Widening Partecipation

Science with and for society

Joint Research Centre (JRC) EuratomBruno Zampaglione - Auditing and project management 9111/11/2015






(€ 24.441

M)

(€ 29.679

M)

(€ 17.015 M)

HORIZON2020

structure of the overall budget

78,6M€

Science with and for Society (€462)Spreading Excellence and Widening Participation (€ 816)

European Institute of Technology (EIT) (€ 2711)

Joint Research Centre (JRC) (€ 1.903)sEuratom (€ 1.603)

AmountThree pillar = 71,135M€


9211/11/2015







20. Simplification is a central aim of Horizon 2020 which should be fully reflectedin……., rules, financial management and implementation.

Horizon 2020 …………. brings together the full range of research and innovationsupport in one common strategic framework, ………… Simpler funding rulesshould ……….contribute to the prevention and reduction of financial errors.

44. The financial interests of the Union should be protected through proportionatemeasures throughout the expenditure cycle, including the prevention,……and investigationof irregularities, the recovery of funds lost, wrongly paid or incorrectly used ……………

… revised control strategy, shifting focus from minimisation of error ratestowards risk-based control and fraud detection, should reduce the controlburden for participants.









Article 2: Definitions

“research and innovation activities” mean the whole spectrum of activities ofresearch, technological development, demonstration and innovation, includingthe promotion of cooperation with third countries and international organisations, thedissemination and optimisation of results and the stimulation of high quality trainingand mobility of researchers in the Union.

“direct ACTIONS” mean research and innovation activities undertaken bythe Commission through its Joint Research Centre (JRC);

“indirect ACTIONS” mean research and innovation activities to which theUnion provides financial support and which are undertaken byparticipants;







Article 29 : Control and audit

The control system shall ensure an appropriate balance between trust and control,taking into account administrative and other costs of controls at all levels, especially forparticipants, so that the objectives of Horizon 2020 can be achieved and the most excellentresearchers and the most innovative enterprises are attracted to it.

As part of the control system, the audit strategy for expenditure on indirect actions underHorizon 2020 shall be based on the financial audit of a representative sample ofexpenditure across Horizon 2020 as a whole. That representative sample shall becomplemented by a selection based on an assessment of the risks related to expenditure.

Audits of expenditure on indirect actions under Horizon 2020 shall be carried out in acoherent manner in accordance with the principles of economy, efficiency and effectivenessin order to minimise the audit burden on the participants.



Reduce Excessive control








laying down the rules for

participation and dissemination in Horizon 2020 the Framework Programme for Research and Innovation (2014-

2020)

THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

11 Dicember 2013






Horizon 2020 - the Framework Programme for Research and Innovation (2014-2020)"("Horizon 2020") is established by Regulation (EU) No 1291/2013 of the EuropeanParliament and of the Council ( 4 ). That Regulation needs to be complemented byrules for participation in INDIRECT ACTIONS undertaken under Horizon 2020, andfor exploitation and dissemination of the results of those ACTIONS.

ACTIONS = PROJECTS


REGULATION (EU) No 1290/2013 laying down the rules for participation and dissemination in "Horizon 2020 the Framework Programme for Research

and Innovation (2014-2020)"






An integrated approach should be ensured by bringing together activities covered bythe Seventh Framework Programme for research, technological development and

demonstration activities (2007-2013)

The reimbursement rates in this Regulation are referred to as maximums in orderto comply with the non-profit requirement and the co-financing principle, and toallow participants to request a lower rate.

In principle, the reimbursement rates should however be 100 % or 70 %.




Single reimbursement rate







e.g.

In the Seventh Framework Programme the following activities were reimbursed asfollows:

Research and Technological

Development Activities ; (75%)

Demonstration activities; (50%)

Management activities; ; (100%)

Training activities; (100%)

Dissemination activities; (100%)


research and innovation activities

Simplification

Single reimbursement rate (100%) / (70%)







Maximum

reimbursemen

t rates

Research and

technological

development

activities

Demonstration

activities

Other

activities

Network of

excellence50%

75% (**)

100%

Collaborative

project(****)50%

75% (**)50% 100%

Coordination

and support

action

100% (***)

(**) For beneficiaries that are non-profit public bodies, secondary and higher education establishments, research organisations and SMEs(***) The reimbursement of indirect eligible costs, in the case of coordination and support actions, may reach a maximum 7% of the direct eligible costs, excluding the direct eligible costs for subcontracting and the costs of resources made available by third parties which are not used on the premises of the beneficiary.(****) Including research for the benefit of specific groups (in particular SMEs)

One project = One rate

Same rate for all beneficiaries andall activities in the grant.

The applicable rate will be defined inthe Work Programme:

Up to 100 % of the eligible costs;

but limited to a maximum of 70 % for projects “close to market””.






Article 2 - Definitions

For the purposes of this Regulation..

“innovation action” (IA) means an action primarily consisting of activities directlyaimed at producing plans and arrangements or designs for new, altered orimproved products, processes or services. For this purpose they may includeprototyping, testing, demonstrating, piloting, large-scale product validation and marketreplication;

“coordination and support action” (CSA) means an action consisting primarily ofaccompanying measures such as standardisation, dissemination, awareness-raising and communication, networking, coordination or support services,policy dialogues and mutual learning exercises and studies, including designstudies for new infrastructure, and may also include complementary activities ofnetworking and coordination between programmes in different countries;









“research and innovation actions “ (RIA): means activities aiming to establishnew knowledge or explore the feasibility of a new technology, product,process, service or solution. For this purpose they may include basic and appliedresearch, technology development and integration, testing and validation on a small-scale prototype in a laboratory or simulated environment.

Research and innovation actions (RIA)

Innovation actions (IA)

Coordination and support actions (CSA)


General Model Grant Agreement (mono- or multi-beneficiary actions)

Funding Schemes

in HORIZON

2020






Article 6 Forms of funding

In accordance with Article 10 of Regulation (EU) No 1291/2013, funding may take one orseveral of the forms provided for by Regulation (EU, Euratom) No 966/2012, in particularGRANTS, prizes, procurement or financial instruments.

Article 7 Legal entities that may participate in actions

Any legal entity, regardless of its place of establishment, or international organisationmay participate in an action provided that the conditions laid down in this Regulationhave been met, together with any conditions laid down in the relevant work programme orwork plan.









Article 8 Independence

Two legal entities shall be regarded as independent of each other where neither is underthe direct or indirect control of the other or under the same direct or indirect control as theother.

Due soggetti giuridici sono considerati indipendenti uno dall'altro quando nessuno dei due è sotto il controllo diretto o indiretto dell'altro o allostesso controllo diretto o indiretto dell'altro.

Article 9 Conditions for participation

1. The following minimum conditions shall apply:

a) at least three legal entities shall participate in an action;

b) three legal entities shall each be established in a different Member State orassociated country; and

c) the three legal entities referred to in point (b) shall be independent of eachother within the meaning of Article 8.









2. By way of derogation from paragraph 1, the minimum condition shall be theparticipation of one legal entity established in a Member State or associatedcountry, in the case of:

a) European Research Council (ERC) frontier research actions;

b) the SME instrument, where the action has a clear European added value;

c) programme co-fund actions; and

d) justified cases provided for in the work programme or work plan.

4. By way of derogation from paragraph 1, in the case of coordination and supportactions and training and mobility actions, the minimum condition shall be theparticipation of one legal entity.









Article 15 Selection and award criteria (Financial capacity)

9. In cases where the requested funding from the Union for the action is equalor superior to EUR 500 000, the Commission or the relevant funding body shall,by means compatible with national law, verify in advance the financial capacityof only the coordinators. Furthermore, whenever there are grounds to doubt thefinancial capacity of the coordinator or other participants on the basis of availableinformation, the Commission or the relevant funding body shall verify their financialcapacity.

10. The financial capacity shall not be verified either in respect of legal entities whoseviability is guaranteed by a Member State or an associated country or in respect ofhigher and secondary education establishments









Article 20 : Time to grant

for informing all applicants of the outcome of the scientific evaluation of theirapplication, a maximum period of five months from the final date for submission ofcomplete proposals;

for signing grant agreements with applicants or notifying grant decisions to them, amaximum period of three months from the date of informing applicants theyhave been successful.









Article 23 - Implementation of actions

Participants shall implement the action and shall take all necessary and reasonablemeasures to that end. They shall have the appropriate resources as and when neededfor carrying out the action.

Where it is necessary for the implementation of the action, they may call upon thirdparties, including subcontractors,

to carry out work under the action; or

may use resources made available by third parties by means of contributions in kind,according to the conditions set out in the grant agreement.

Participants shall retain responsibility towards the Commission or the relevant fundingbody and towards the other participants for the work carried out.









A) to carry out work under the action

The award of subcontracts for carrying out certain elements of the action shall belimited to the cases provided for in the grant agreement, and

to duly justified cases that could not be clearly foreseen at the time of entry into force ofthe grant agreement.

Third parties other than subcontractors may carry out work under the action underthe conditions laid down in the grant agreement. The third party and the work to becarried out by it shall be identified in the grant agreement.









B) may use resources made available by third parties by means of contributionsin kind, according to the conditions set out in the grant agreement.

Third parties may also make available resources to a participant by means ofcontributions in kind to the action.

Costs incurred by third parties in relation to such contributions which are made freeof charge are eligible for funding provided they meet the conditions established inthe grant agreement.









Article 23 - Implementation of actions

The action may involve financial support to third parties under the conditionsestablished in Regulation (EU, Euratom) No 966/2012 and Regulation (EU) No 1268/2012.

The amounts referred to in point (c) of Article 137(1) of Regulation (EU, Euratom) No966/2012 may be exceeded where it is necessary to achieve the objectives of an action

Art 137 financial regulation

Implementation contracts and financial support to third parties

1. Where implementation of an action or a work programme requires financial support to third parties,the beneficiary may give such financial support provided that the following conditions are met:

(a) before awarding the grant, the authorising officer responsible has verified that the beneficiary offersadequate guarantees as regards the recovery of amounts due to the Commission;

(b) the conditions for the giving of such support are strictly defined in the grant decision or agreementbetween the beneficiary and the Commission, in order to avoid the exercise of discretion by thebeneficiary;(c) the amounts concerned are small, (max 60.000€) except where the financial support is the primary aim

of the action.









Article 24: Consortium

The members of any consortium wishing to participate in an action shall appoint one ofthem to act as coordinator, which shall be identified in the grant agreement. Thecoordinator shall be the principal point of contact between the members of theconsortium in relations with the Commission or the relevant funding body, unless specifiedotherwise in the grant agreement, or in the event of non-compliance with its obligationsunder the grant agreement.

The members of a consortium participating in an action shall conclude an internalagreement ("the consortium agreement") establishing their rights and obligationswith respect to the implementation of the action in compliance with the grantagreement, except in duly justified cases provided for in the work programme or work planor call for proposals. The Commission shall publish guidelines on the main issues that maybe addressed by participants in the consortium agreement.




http://www.desca-2020.eu/






Article 25 Form of Grants

Grants may take any of the forms provided for in Article 123 of Regulation (EU, Euratom) No 966/2012, taking into account the objectives of the action.




Article 123 of Regulation (EU, Euratom) No 966/2012

Forms of grants

1. Grants may take any of the following forms:

(a)reimbursement of a specified proportion of the eligible costs, referred to in Article 126, actually incurred;

(b) reimbursement on the basis of unit costs;

(c) lump sums;

(d) flat-rate financing;

(e) a combination of the forms referred to in points (a) to (d).






Article 28: Funding of the action

The funding of an action shall not exceed the total eligible costs minus the receiptsof the action.

2. The following shall be considered as receipts of the action:

a) resources made available by third parties to the participants by means offinancial transfers or contributions in kind free of charge, the value of whichhas been declared as eligible costs by the participant, provided that they have beencontributed by the third party specifically to be used in the action;

b) income generated by the action, except income generated by the exploitation ofthe results of the action;

c) income generated from the sale of assets purchased under the grantagreement up to the value of the cost initially charged to the action by the participant.









Article 31: Annual productive hours

1. Eligible personnel costs shall cover only the actual hours worked by thepersons directly carrying out work under the action. Evidence regarding the actualhours worked shall be provided by the participant, usually through a timerecording system.

2. For persons working exclusively for the action, no time recording is required.In such cases, the participant shall sign a declaration confirming that the personconcerned has worked exclusively for the action.

The number of annual productive hours to be used for the calculation of thehourly personnel rates, taking account of the participant's usual accounting practices.









Article 32: Owners of SMEs and natural persons without a salary

The owners of SMEs who do not receive a salary, and other natural persons who do not receive a salary, may charge personnel costs on the basis of a unit cost.

Article 33: Unit costs

1. In accordance with Article 124 of Regulation (EU, Euratom) No 966/2012, theCommission may establish methods to determine unit costs based on:(a) statistical data or similar objective means;(b) auditable historical data of the participant.

2. Direct eligible personnel costs may be financed on the basis of unit costs determinedaccording to the participant's usual cost accounting practices, provided that they complywith the following cumulative criteria:

a) they are calculated on the basis of the total actual personnel costs recorded in the participant'sgeneral accounts which may be adjusted by the participant on the basis of budgeted or estimatedelements according to the conditions defined by the Commission …..









Article 34: Certificate on the financial statements

The certificate on the financial statements shall cover the total amount of the grantclaimed by a participant under the form of reimbursement of actual costs and underthe (form of unit costs referred to in Article 33(2)

excluding the amounts declared on the basis of lump sums, flat rates and unit costs otherthan those determined according to the participant's usual cost accounting practices.

The certificate shall be submitted only when that amount is equal to or greater than EUR325 000 at the time of claiming the payment of the balance of the grant.









Article 35: Certificate on the methodology

1. Participants that calculate and claim direct personnel costs on the basis of unit costs in accordance with Article 33(2) may submit to the Commission a certificate on the methodology. That methodology shall comply with the conditions set out in Article 33(2) and meet the requirements of the grant agreement.

2. Where the Commission accepts a certificate on the methodology, it shall be,valid for all actions financed under Regulation (EU) No 1291/2013 and the participantshall calculate and claim costs on the basis of it. Once the Commission has accepteda certificate on the methodology, it shall not attribute any systemic or recurrenterror to the accepted methodology.








FINE PRIMA PARTE

Bruno Zampaglione

11 novembre 2015

Firenze



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