Financial aspects of PEOPLE program and actions managed by REA

1. Financial aspects of PEOPLE program and actions managed by REA Nicolo’ Giacomuzzi-Moore Unit A.2 – Finance Financial Verification Marie Curie Monitoring Action and Information Days Barcelona, June 9th-11th 2010

2. Marie Curie Actions Initial training ITN - Initial Training Networks International dimension IOF - International Outgoing Fellowships for career developmentIIF - International Incoming Fellowships IRSES - International Research Staff Exchange Scheme Researcher’s Night Life-long training IEF - Intra-European Fellowships for career development ERG - European Reintegration GrantsIRG - International Reintegration Grants COFUND - Co-funding of regional, national and international programmes Industry - Academia IAPP - Industry-Academia Partnerships and Pathways

3. 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

4. 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

5. 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

6. Marie Curie Actions Cost categories for Marie Curie Actions

7. 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

8. Monthly living allowance:Cost Category A Marie Curie Actions For individual countries, correction factors mentioned in WP have to be applied

9. 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 Marie Curie Actions Monthly living and mobility allowance:Cost Category A Correction Factor!

10. 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 Marie Curie Actions

11. 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

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

13. Eligible expenses for activities carried out by researchers:Cost CategoryC and D Career exploratory awards and participation to seminars Career exploratory awardsallowance 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

14. Cost Categories C and D What 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

15. 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

16. 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

17. 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

18. External events – Cost Category F What records do we need to provide for EU audit purposes? 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

19. 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

20. 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

21. 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

22. 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

23. Other type of eligible expenses – Cost Category I What records do we need to provide for EU audit purposes? 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

24. Specific Actions managed by REA Marie Curie Actions

25. 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

26. IEFIOF 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

27. IEFIOFIIF IOF cost categories (A B D G/H): Monthly living and mobility allowance (see tables and apply correction coefficient) 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

28. IEF IOFIIF IIF cost categories (A B D G/H I): Monthly living and mobility allowance (see tables and apply correction coefficient) 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

29. 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

30. 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

31. 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

32. 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

33. ITN Marie Curie Actions • Cost 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

34. 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

35. IAPP Marie Curie Actions • Cost 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)

36. Summary of « People » Actions

37. Summary of « People » Actions

38. Summary of « People » Actions

39. Marie Curie Actions Recurrent questions

40. Payments flow Marie Curie Actions TOTAL EU CONTRIBUTON= 100% Pre-financing 5% for Guarantee fund month 2 Project duration Interim Payment month 12 Final Payment Month 24 Guarantee Fund restitution =5% After final payment

41. 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

42. 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 Purchase of durable equipment

43. 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 More on cost categories

44. Is 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 Subcontracting

45. 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 Maternity leave

46. 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 Interest on prefinancing

47. 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 FORM C: What is it?

48. 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 Certificate on financial statement

49. Marie Curie Actions

50. Thank you and good luck! Nicolo' Giacomuzzi-Moore Head of Sector - Financial Verification Research Executive Agency COVE 15/102 Place Rogier,16 ,B-1049 Brussels Tel: +32 2 29 94376 nicolo.giacomuzzi-moore@ec.europa.eu