The Guide to Financial Issues relating to Indirect Actions of the Seventh Framework Programme states:
For beneficiaries from international cooperation partner countries (ICPC) it is foreseen that they may opt for an EC contribution in the form of lump sums. As an exception, the lump sums foreseen for beneficiaries from these countries allow the transfer of budget from the part of the grant reimbursed on the basis of financial statements to the part reimbursed as a lump sum. The reason for this is that in these cases the number of hours or travel carried out by these ICPC has to be justified. In these cases also, transfers between categories of lump sums and between beneficiaries is possible too, with the same conditions as those mentioned above for transfers of funds.
Participants from international cooperation partner countries may also opt for lump sums when they participate in grant agreements not specifically aimed at fostering this international cooperation.
The lump sum amount is dependent upon:
· the economy of the ICPC;
· the type of organisation of the legal entity established in the ICPC;
· the type of funding scheme of the project;
· the number of person/year requested for the project by the legal entity.
This amount is all inclusive, covering support towards both the direct and the indirect costs.