The SRA Symposium - College of Medicine

Papers
Conclusion
SRA is an international organisation. Use it to build links in Europe so you can use this expertise
when assessing European funding opportunities, when seeking collaborative partners, and when
negotiating budgets and contract terms. This interaction will significantly reduce your exposure to
the associated risks, and will help you build your own expertise.
PRE-AWARD (Quick Glance Comparison between US and EU funding rules)
Pre Award US [NIH Grants] EU (FP6) [Grants for Integrated Projects]
Rules Office of Management and Budget issues
circulars that apply to all Federal funders and
all recipients of such funding.
EC rules change for each programme and vary
by type of financial contribution. National
bodies use different funding rules.
Language English (US) The main EC terms are supplied in English.
Legislative System US Code Belgian or Luxembourg law, i.e. not English or
Scots law.
Accounting Systems US GAAP UK GAAP, or European equivalent.
Pre Award US [NIH Grants] EU (FP6) [Grants for Integrated Projects]
Allowable and
Eligible costs
Costs should be:
• Allocable
• Reasonable
• Due prudence
• Consistent - Usual Accounting principles
• Commencement & Convocation excluded
Costs should be:
• Actual
• Economic
• Necessary
• Consistent - Usual Accounting principles
• During the duration of the project
“Eligible” cost categories are not defined
instead the definition is based on exclusion of
non-eligible costs.
Cost Models Allocable costs plus negotiated F&A rate. Full Cost (FC) = 50% of All Eligible Direct and
Indirect Costs.
Full Cost Flat rate (FCF) = 50% of the Eligible
Direct Costs + 20% contribution to Indirect
Costs.
Additional Cost (AC) = 100% Eligible Direct
Costs + 20% contribution to Indirect Costs.
Direct Costs Costs that can be identified specifically with
a particular sponsored activity. Costs for the
same purpose must be treated consistently as
either direct or F&A.
Direct additional
costs
F&A costs/ -
Indirect costs
Collective
responsibility
“Should require no significant changes in the
generally accepted accounting practices of
colleges.”
Indirect cost rates for F&A are negotiated.
Costs that are directly associated with the
project.
Eligible costs that are additional to the normal
recurring costs of the contractor and are
directly associated with the project.
All eligible costs, caused by two or more cost
objectives, determined by a contractor in accordance
with its usual accounting practice.
For Research under the AC model - these are
paid at 20% of the eligible additional costs.
Technical collective responsibility is shared
between partners on a project.
Sanctions Any amount unduly paid by the EC has to be
reimbursed by the contractor.
Overclaims may be penalised in proportion to
the amount overpaid (liquidated damages).
184 2005 Symposium Proceedings Book