Finance Helpdesk Newsletter #21

Upcoming Financial and Marie Curie Workshops

FP7 Bookkeeping leaflet Published.

Finance Helpdesk Auditor List

Interpretation of R&D funding rates for non-profit bodies

ICT2008

Upcoming Open Workshops:

There are still places available for the following upcoming workshops in Brussels, Belgium:

11/11/2008     3 Day in-depth FP7 Financial Workshop in Brussels, Belgium.

01/12/2008     2 Day Marie Curie Financial Workshop in Brussels, Belgium. **New**

The Finance Helpdesk will be holding a 2 day Marie Curie Financial Workshop on 1 – 2 Dec 2008, in Brussels, Belgium.

The Workshop will include specially prepared workbooks comprising: presentations, exercises and illustrated examples. The workshop is relevant to anyone who wants to understand the Marie Curie Financial Rules and how to report correctly.

The Marie Curie Workshop will be implemented through:

·          Explaining and interpreting current written published material,

·          Case Studies and examples,

·          Discussion of problems and situations from the participants,

Workshop topics include:

FP7 Introduction

·          Marie Curie Overview

·          Differences between FP6 and FP7

·          FP7 Participation, Subcontractors, Third Parties

·          Risk-sharing Finance Facility, Guarantee Mechanism

·          Eligible & Ineligible costs

·          Bookkeeping, Accounting Records, Timesheets, Cost Recording

·          Intra-European Fellowships (IEF)

·          International Incoming Fellowships (IIF)

·          International Outgoing Fellowships (IOF)

·          European Reintegration Grants (ERG)

·          International Reintegration Grants (IRG)

·          Industry-Academia Partnerships And Pathways (IAPP)

·          Marie Curie Initial Training Networks (ITN)

·          Co-funding Of Regional, National and International Programmes (COFUND)

·          Int. Research Staff Exchange Scheme (IRSES)

·          EU Audits / Liquidated Damages

·          Consortium Agreement financial Issues

·          The Role of the Coordinator

·          Ethical Issues

Places are limited and will be allocated on a first register – first serve basis.

FP7 Bookkeeping leaflet Published:

Changes in the Financial Guidelines between FP6 and FP7 have impacted claims for eligible direct costs in FP7.

Organisations that now claim costs in FP7 Projects as direct costs must ensure that their books of account and financial reports can support this.

In FP6, for a cost to be classed as a potential eligible direct cost, the cost had to have been incurred. This means that the cost had to have been recorded in some way in the books of account.

In FP7, the same applies as for FP6. The big difference is that in FP7, the costs have to be shown as direct costs within the organisation’s books of account and financial reports.

The Finance Helpdesk has produced a leaflet which explains this.

To view the leaflet click here.

Finance Helpdesk Auditor List:

The Finance Helpdesk has started publishing a list of FP6 and FP7 experienced Auditors, which is now available here.

The auditors listed have demonstrated to the Finance Helpdesk experience of the Framework Program by having submitted at least 2 audit certificates for two different projects.

Currently the list contains Auditors for the following countries:

¬       Czech Republic

¬       England

¬       France

¬       Germany

¬       Israel

¬       Scotland

Interpretation of R&D funding rates for non-profit bodies:

The Guide to Financial Issues relating to FP7 Indirect Actions defines a list of organisation types entitled to up to 75% R&D funding. There has been some confusion regarding the status of non-profit private bodies such as charities. It appears to be being interpreted that any non-profit body must either be “a research organisation” or a public body to receive 75% funding. We find this rather disturbing as it results in many charities whose main goal is not research to fall under the 50% funding rule.  

Under FP7, participants will be reimbursed according to the type of organisation, action and/or activity (article II.16.1 of the EC GA). RTD activities for example, will be reimbursed up to 50% of eligible costs. However, it can be up to 75% for

·          non-profit public bodies;

·          secondary and higher education establishments (for example, universities)

·          research organisations

·          SMEs

·          also for Security related research (in certain cases)

Research Organisation means a legal entity which is established as a non-profit organisation; a legal entity is qualified as "non-profit" when considered as such by national or international law. Associations or explicit non-profit making legal entities would fit here (see below); and carries out research or technological development as one of its main objectives. The research organisation might be of a private or public character but it must be a non-profit organisation which carries out research or technological development as one of its main objectives.

The definition of Research Organisation can be found;

·          in the REGULATION (EC) No 1906/2006 OF THE EUROPEAN PARLIAMMENT AND OF THE COUNCIL of 18 December 2006 laying down the rules for the participation of undertakings, research centres and universities in actions under the Seventh Framework Programme and for the dissemination of research results (2007-2013) as well as in

·          Article II.1.13 of GA, p.3:  "research organisation" means a legal entity established as a non-profit organisation which carries out research or technological development as one of its main objectives";

·          As stated in the Guide to Financial Issues relating to FP7 Indirect Actions:  "research organisations: this means a legal entity which is established as a non-profit organisation; a legal entity is qualified as "non-profit" when considered as such by national or international law and carries out research or technological development as one of its main objectives"

In most cases the type of legal entity will be determined by the participants' national law. It will be up to the legal entity to prove it. In certain cases, a legal entity may find it difficult to determine its status. In these cases other indicative facts or evidence should be established.

The detailed analysis of the legal status "vis-à-vis" the 7th Framework Programme is usually made during the negotiations prior to the first grant Agreement signed with the Commission, moment at which beneficiaries are required to produce all legal documents which may support their status.

This analysis will be made by a "Unique Registration Facility" (URF), a one-stop shop which analyses and certifies the legal status and the financial viability of the beneficiaries of an FP7 Grant at the moment of their first participation. Following this analysis, this certification of the legal status will be valid for all participations of the same beneficiary in the 7FP.

ICT2008:

The Finance Helpdesk will be manning a Booth at the upcoming ICT2008 in Lyon on 25-27 Nov 2008. Please pop over to our stand to say hello.

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