Guide to Financial Issues relating to FP7 Indirect Actions - KoWi

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However, it should be noted that the interest generated by pre-financing until 31 December 2012 has to be declared by the coordinator and deducted from the EU contribution; it will continue to be off-set against subsequent payments. Example: If reporting period covers from 1/6/2012 to 31/5/2013 Maximum EU/Euratom contribution to the project: EUR 3,000,000 Pre-financing: EUR 1,600,000 Funding accepted for the 1 st reporting period: EUR 1,000,000 Interest generated until 31/12/2012 (by the pre-financing of EUR 1,600,000) = EUR 20,000 Interest generated as from 1/1/2013 (by the pre-financing of EUR 1,600,000) = not to be declared Interim payment following the 1 st reporting period: EUR 1,000,000 – EUR 20,000 = EUR 980,000 It also should be noted that the amount of the contribution transferred to the Guarantee Fund is considered to be part of the pre-financing received by the Consortium. Article II.6.1.b) – Interim payments following the approval of periodic reports After approval of the periodic reports interim payments will follow and will be calculated on the basis of the accepted eligible costs and the corresponding reimbursement rates as indicated in Article II.16 of ECGA. The amounts paid for interim payments will correspond to the accepted EU/Euratom contribution. However, the total amount of interim payments + pre-financing will be limited to 90% of the maximum EU/Euratom contribution. This may imply, as mentioned in the examples below that in some cases payment for the interim periods may be reduced in order to respect this limit. Article II.6.1.c) – Final payment following the approval of final report The final payment will be transferred after the approval of the final reports and consists of the difference between the calculated EU/Euratom contribution (on the basis of the eligible costs) minus the amounts already paid. The total payment is however limited to the maximum EU/Euratom contribution as defined in Article 5 of ECGA. If the total amount already paid would prove to be higher than the EC contribution accepted, the Commission will recover the difference. Also at this stage, the Commission will order the Fund to release the amount of the beneficiaries' contribution to the Guarantee Fund according to the provisions of Article II.21 of ECGA. Example 1: Project duration: 3 years Maximum EU/Euratom contribution: EUR 3,000,000 Ceiling: EUR 2,700,000 (10% retention) Cumulative payments Period 0 Pre-financing EUR 1,600,000 EUR 1,600,000 Period1 Accepted Funding: EUR 1,000,000 Interim payment P1 EUR 1,000,000 EUR 2,600,000 Period2 Accepted Funding: EUR 800,000 Interim payment P2 EUR 100,000 EUR 2,700,000 to respect ceiling Period3 Accepted Funding: EUR 1,200,000 Final Payment EUR 300,000 EUR 3,000,000 maximum 26
Example 2 Project duration: 3 years Maximum EU/Euratom contribution: EUR 3,000,000 Ceiling: EUR 2,700,000 Cumulative payments P0 Pre-financing: EUR 1,600,000 EUR 1,600,000 Interest generated EUR 20,000 P1 Funding: € 1,0 M Interim payment P1 EUR 980,000 EUR 2,600,000 P2 Funding: € 0,8 M Interim payment P2 EUR 100,000 EUR 2,700,000 to respect ceiling P3 Funding: € 1,2 M Final Payment EUR 300,000 EUR 3,000,000 maximum Article II.6.4 – Conversion rates 1. Recording in the beneficiary's accounting books of costs incurred in a currency other than the one of the accounting books of the contractor (applicable to all beneficiaries) When recording in their accounting books costs incurred in a currency different than the currency of these books, the beneficiaries shall convert these costs in accordance with the applicable national law and their usual accounting and management principles and practices. For example, a UK beneficiary buying some equipment in the USA. 2. Reporting costs in EUR in the Forms C submitted to the European Commission (applicable only to beneficiaries whose accounting books are not in EUR). Costs shall always be reported in EUR in the financial statements submitted to the European Commission Beneficiaries with accounts in currencies other than EUR shall report in EUR on the basis of the exchange rate that would have applied either: • on the date that the actual costs were incurred or • on the basis of the rate applicable on the first day of the month following the end of the reporting period. For both options, the daily exchange rates are fixed by the European Central Bank (ECB) and may be obtained at the following internet address: http://www.ecb.int/stats/eurofxref/ or, for the rate of the first day of the month following the reporting period, in the relevant OJ of the European Union. The choice must be the same for all reporting periods in a given GA. For the days where no daily exchange rates have been published, (for instance Saturday, Sunday and New Year’s Day) you must take the rate on the next day of publication. The use of other sources for exchange rates (other than the ECB) is admissible only where no other solution is possible (i.e. when ECB does not include the daily exchange rates for a particular currency). In case the ECB does not publish exchange rates for a particular currency, beneficiaries could use the exchange rates published by the Directorate General Budget of the European Commission, (Euroinfo): http://ec.europa.eu/budget/inforeuro/index.cfm?Language=en or alternatively the internal practice of the beneficiary provided it is not used only for EU grants reporting purposes. Beneficiaries with accounts in EUR shall convert costs incurred in other currencies according to their usual accounting practice. 27
Page 1 and 2: Guide to Financial Issues relating
Page 3 and 4: In addition, all FP7 beneficiaries
Page 5 and 6: Article II.6.1.b) - Interim payment
Page 7 and 8: PART 1: FP7 EC GRANT AGREEMENT - CO
Page 9 and 10: this SME flat rate under the cost c
Page 11 and 12: Contribution to the Guarantee Fund
Page 13 and 14: considered as the project coordinat
Page 15 and 16: Article II.4.4 of ECGA - Certificat
Page 17 and 18: 1 EUR 350,000 EUR 175,000 EUR 175,0
Page 19 and 20: Specific case of beneficiaries with
Page 21 and 22: 3. Submission of the certificate on
Page 23 and 24: e consistent with the beneficiary's
Page 25: eligible costs not yet certified th
Page 29 and 30: Subcontracting costs are direct cos
Page 31 and 32: • the criteria defining "quality"
Page 33 and 34: complementary way. This means using
Page 35 and 36: Where actual costs are not availabl
Page 37 and 38: Acceptability criteria for average
Page 39 and 40: Criterion d: Productive time As a g
Page 41 and 42: • When the average personnel cost
Page 43 and 44: For years 2007-2008-2009 these annu
Page 45 and 46: The formula applied is the same as
Page 47 and 48: A. THIRD PARTIES MAKING THEIR RESOU
Page 49 and 50: this case it is the university whic
Page 51 and 52: parties making available resources
Page 53 and 54: above for Joint Research Units. The
Page 55 and 56: Non-exhaustive list of taxes and pe
Page 57 and 58: administrative, absence, EU-project
Page 59 and 60: Some activities may be considered n
Page 61 and 62: applicable national labour law, the
Page 63 and 64: The following criteria must be appl
Page 65 and 66: • each successive 12-hour period:
Page 67 and 68: equipment purchase. If the service
Page 69 and 70: Indirect costs, also called overhea
Page 71 and 72: • The system applied and the cost
Page 73 and 74: Such costs are normally deemed to b
Page 75 and 76: principle be able to opt for the 60
Page 77 and 78:
certificate of financial statements
Page 79 and 80:
Article II.16 of ECGA - Upper fundi
Page 81 and 82:
Changes of legal status of benefici
Page 83 and 84:
* Remark: Actual commercial exploit
Page 85 and 86:
They may cover the salary costs of
Page 87 and 88:
fee to a conference carried out by
Page 89 and 90:
eneficiaries may opt for a lump sum
Page 91 and 92:
Example of calculation of EU fundin
Page 93 and 94:
Example: 3-year project with 3 mill
Page 95 and 96:
Maximum EU/Euratom financial contri
Page 97 and 98:
• The beneficiary has to reimburs
Page 99 and 100:
The Communication permits the use o
Page 101 and 102:
Article II.24 of ECGA - Liquidated
Page 103 and 104:
FINAL PROVISIONS Article II.40 of E
Page 105 and 106:
2 nd period: the access provider de
Page 107 and 108:
The EU/Euratom financial contributi
Page 109 and 110:
Step 2: The budget for the RTD Perf
Page 111 and 112:
For our project example we show two
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Guide to Financial Issues relating to FP7 Indirect Actions - KoWi

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