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FP7 Financial Info and FAQs --> Funding Regimes, Lump Sums, Flat Rates

Formally Cost Models are no longer used in FP7, however they still exist in effect under a different guise.

 

All legal entities shall use what was previously known as the full cost (FC) model. However:

 

1.       Organisations can choose to use a fixed overhead rate to cover their indirect costs. This rate is set at 20%

2.       Academic institutions, research organisations, other non-commercial or non-profit organisations established either under public law or private law and international organisations or SMEs which do not have an accounting system that allows the share of their direct and indirect costs relating to the project to be distinguished may opt in the interim for a transitory special derogation as explained below.

 

Thus in effect we have three different funding regimes. A fourth "Simplified method" will also be introduced. It will offer the possibility for an organisation to get their method of calculating overheads certified by an auditor and agreed by the Commission.

Default funding regime
Fixed indirect costs option
Lump-Sums


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