The SRA Symposium - College of Medicine

Papers
Integrated Project
Duration – 4 years
Typical costs under an EC FP6 project
Full Cost (FC) Model
Research Euros (€) Demonstration Activities Euros (€)
Principal Principal
Investigator 10% FTE 30,000 Investigator 1% FTE 3,000
Research Research
Assistant (3yrs) 90% FTE 117,450 Assistant 10% FTE 13,050
Technician 50% FTE 69,000 Consumables 50,000
Consumables 10,000
Travel 18,000
Equipment Purchase 6,000
Equipment access 5,000
Sub total 295,450a Sub total 26,050a
Overheads Overheads
(indirect costs/F&A) (indirect costs/F&A)
@ actual rate of 90% 265,905b @ actual rate of 90% 23,445b
Total 561,355 Total 49,495
EC funds 50% for Research 280,677.50c EC funds 35% for Demonstration 17,323.25c
Training activities Euros (€) Management Activities Euros (€)
Principal Principal
Investigator 5% FTE 15,000 Investigator 1%FTE 3,000
Examiners 5,000 Administration 6,000
Audit Certification 8,000*
Sub total 20,000a Sub total 17,000a
Overheads Overheads
(indirect costs/F&A) (indirect costs/F&A)
@ actual rate of 90% 18,000b @ actual rate of 90% 8,100b
[*8,000 excluded as a subcontract cost]
Total 38,000 Total 25,100
EC funds 100% for Training 38,000c EC funds 100% for Management 25,100c
Actual Total Direct Cost of the Project [total of a] (€) 358,500
Actual Total Indirect Cost (F&A) is 90% of Actual Total Direct Cost (€) 322,650
Actual Total Cost of the Project (Direct + Indirect/F&A) (€) 681,150
Total Indirect Costs (F&A) that can be claimed under the
FC cost model (I.e. Actual Indirect Cost of 90% - Subcontract costs) [total of b] (€) 315,450
Total funding paid by the EC for activity type [total of c] (€) 361,100.75
Match funding required [Actual Total Cost of Project – EC Funding (c)] (€) 320,049.25
Match funding required as a percentage of Actual Total Cost of Project 47%
* please note that overheads (indirects/F&A) are not payable on subcontracts, including Audit
Certificates.
This comparison of EC costing models shows that the FC model is the one to favour, as it provides the
higher net financial return between the two costing models. It is also the default model. Under the FC model
you are able to negotiate your institutional cost rate (F&A) with the EC, as long as you are able to demonstrate
and account for these costs in your financial accounting system by project. If you are unable to do so,
you are only left with the FCF option, whereby your University or Non-profit will have to accept the arbitrary
“indirect flat rate cost” of 20%, which will be significantly lower than your actual indirect cost rate base
(F&A). A University and Non-profit that is using the FCF costing methodology can move to a FC model as
soon as they are able to demonstrate the required financial accounting criteria. The rationale as to why the
EC only pays 50% towards research is because the EC
176 2005 Symposium Proceedings Book