MSCA Legal, Administration and Finances under H2020 Tbilisi 17 January 2017

1. MSCALegal, Administration and Finances under H2020Tbilisi17 January 2017 • Gabriela CHIRA • Research Executive Agency

2. Overview • Finances • Project Life Cycle • Reporting and Amendments

3. A - Finances

4. Outline 1. EU contribution 2. Eligible costs 3. Cost categories

5. EU Contribution fundingmechanism 1 unit = 1 month of eligible ESR • fully based on "unit costs" • 1 researcher month = 1 unit • pre-calculated in the estimated budget • amounts in EUR per "unit costs" • Total budget = unit costs* x number of units

6. Eligible and Ineligible Costs • Article 6 of the GA • Eligible costs: • Unit costs (defined by cost categories) • Incurred during project duration • Necessary for implementing the action • Number of units must be identifiable and verifiable and supported with evidence (if requested) • Ineligible costs: • Costs which do not comply with the conditions in the GA • Costs reimbursed under another EU or Euratom grant

7. Costscategories A. Recruited Researchers: A.1 Living allowance A.2 Mobility allowance A.3 Family allowance B. Institutional costs: B.1 Research, training and networking costs B.2 Management and indirect costs

8. Costs categories summary

9. A – Researcherallowances

10. A1. Living allowance: • What does it include? • Monthly salary for the fellow before any deductions: • - contributions of both employers and employees to social security, • - pension, taxation, voluntary deductions • How much depends on: • Type of contract • Employment contract (Type A) - Monthly ref. ratefrom WP • OR • Fixed-amount fellowship (Type B) - 50% of Type A rate • Country Correction Coefficient (in Work Programme)

11. Can we pay the fellow less? • No Breach of the Grant Agreement • Can we pay the fellow more? • Yes But any top-up cannot be charged to the project • Do we always pay the fellow in euro? • No  The fellow can be paid in the local currency, but the costs must be reported in euro.

12. Records • What records do we need to keep for EU audit purposes? • Evidence of the eligibility of the fellow. • Employment contract/agreement with the fellow. • Proof of payment of the salary to the fellow and of the deductions for social security etc. • Evidence that the fellow worked on the project on the beneficiary's premises: this can include lab books, conference abstracts, library records… • Is the fellow obliged to keep timesheets? • No Timesheets are not an obligation for MSCA Fellows but can be used if in line with local practices.

13. A2. Mobility allowance(N/A for RISE and COFUND) • For Whom? All recruited fellows • How much? 600 EUR per month • Purpose Contribution to household, relocation and travel expenses to/from home country. • Is the mobility allowance taxed? • Normally yes - it depends on local taxation rules • Some institutes offer to operate this as a ‘virtual real cost’ category in accordance with their administrative procedures i.e. fellows can submit receipts for rent, etc. which can be used to partial exceptions from tax • What records do we need to keep for EU audit purposes? • Same as for living allowance

14. A.3 Family allowance(N/A for RISE and COFUND) • For Whom? • All recruited fellows with family at the time of call deadline (IF)/recruitment (ITN). • How much? • 500 EUR per month – if family obligations • or • 0 EUR per month – if no family obligations • What if the family status changes during the project? - calculated on the family status at the time of call deadline or recruitment to the project/call deadline. It does not change during project lifetime, • What records do we need to keep for EU audit purposes? • Same as for living allowance.

15. Underpayments • The categories assigned to researcher - full amount must be used for the fellow (including employers social security contributions) • Underpayments will not be accepted • Underpayment = breach of the grant agreement • The beneficiary will be required to make a corrective payment(confirmation in the Financial statement)

16. Top-Ups • The beneficiary can pay the fellow a higher rate than the MSCA rate but it must be sourced from other funds. • In some countries (eg. AT, NL, NO) the MSCA rates are too low and a top-up is required • A top-up cannot be charged to the project, costs exceeding the maximum MSCA rate will be rejected.

17. B – INSTITUTIONAL COSTS

18. B.1 Research, training and networking costs • How much? • Fixed amount of 1.800 EUR (ITN) or 800 EUR (IF) per researcher-month • What is it used for? • To contribute to expenses related to: • Training courses etc. • Research costs • Participation of researchers in training events and conferences • Short periods field work • Co-ordination between participants • Tuition fees (if applicable)

19. How is it distributed between the partners? (ITN) • Calculated according to the fellow-months per beneficiary. • The full flat rate to be reported by the beneficiary paying the fellow • The consortium can agree to distribute it differently, in which case it should be addressed in the consortium agreement, but not in the reports. What if we don’t use as many fellow months as foreseen? • The fixed rate of 1.800 EUR (ITN) or 800 EUR (IF) applies to the implemented fellow months; • therefore, the maximum allowable for category B1 is as follows: • category B1 = total fellow months delivered x €1.800 (ITN) / € 800 (IF)

20. B.2 Management and indirect costs • How much? • 1200 EUR (ITN) or 650 EUR (IF) per researcher-month • How much is for management and how much is for overheads? • It is a decision of the consortium how best to use this contribution for the proper implementation of the project. • How is it distributed between the partners? • decision of the consortium - usually the coordinator retains the largest share • the distribution should be addressed in the consortium agreement. What if we don’t use as many fellow months as foreseen? • The fixed rate of 1200 EUR (ITN) or 650 EUR (IF) applies to the implemented fellow months; therefore, the maximum allowable is: • total fellow months delivered x 1200 EUR (ITN) or 650 EUR (IF)

21. What is it used for? • Costs associated with the preparation of the reports and other documents required by the REA: • - Researcher declarations, deliverables, progress, periodic reports and final report. • Personnel costs of the Project Manager. • Maintenance of the consortium agreement. • The overall legal, ethical, financial and administrative management for each of the beneficiaries. • Indirect costs of the project beneficiaries.

22. Parental and maternity leave • Can a fellow take maternity or parental leave? • Yes, in accordance with national legislation Are the costs of the leave eligible? • No, the fellow's contract is suspended for the duration of maternity/parental leave. • Can the Grant Agreement be extended to allow the fellow to complete his/her contract? • Yes, this is possible

23. B. Project lifecycle

24. Project life cycle Final Report 1st periodic Report (after the 2 first years) GA Signature/ project starts Project duration: 4 years Payment of the balance Prefinancing Interim Payment* * Not applicable for actions with 1 reporting period

25. Maximum payments – example TOTAL EU CONTRIBUTON =100% Prefinancing = 60% 55% for project 5% for Guarantee fund Interim Payment = 30% Project duration Final Payment = 10% Guarantee Fund reimbursement = 5% After final payment

26. Pre-financing • How Much? • 60%-80%of total EU Contribution – according to the GA • Example ITN – 60%: • 55% of total EU contribution  consortium • 5% of total EU contribution  Guarantee Fund • Do we need to submit documents to claim it? • No made automatically within 30 days of either start date or date of last signature • Who owns the prefinancing? • Pre-financing remains the property of the EU until the final payment • How is it distributed among the partners? decision of the consortium

27. Interimpayment • How Much? • Up to 90% of total EU Contribution (prefinancing + interimpayment) • Based on costs claimed in the periodic report • A reimbursement of accepted costs • Do we need to submit documents to claim it? • Yes payment is made based upon the information in the submitted periodic report and cost claim forms • Who owns the interim payment? • Consortium, this payment is as a payment based on the costs incurred. • Who receives the interim payment? • Coordinator, who distributes it among the consortium members

28. Final Payment • How Much? • The balance of the money owed to the consortium based on the final accepted costs • Do we need to submit documents to claim it? • Yes Payment is made based upon the information in the submitted periodic report and cost claim forms • What if our final costs are higher than foreseen in the project? • Payment is capped at the agreed EU contribution and any amounts exceeding this will not be reimbursed Who receives the final payment? • The payment is made to the coordinator who distributes it among the consortium members Do we need to submit documents to receive the Guarantee Fund amount? • No this is done automatically when processing the final payment

29. Individual financial statementexample ITN

30. C - Reporting

31. Principles of submission in H2020Forms and templates provided in the electronic exchange system Participant Portal - "My Area" – "My projects" tab- Continuous reporting during whole project life cycle, whenever needed- No paper signed document, only electronic submission- Process more automated - predefined templates in the system

33. Continuous Reporting: • Possible to submit whenever during the project life cycle:

34. 2 - Periodic reporting

35. Submission of Periodic report – H2020 principle: • Coordinator prepares Periodic Technical report, based on the input from all beneficiaries • Beneficiaries (including Coordinator) prepare their individual Financial statements, signed electronically (FSIGN) and submit to Coordinator • Coordinator "marks for submission" all reports to be submitted to REA • Coordinator submits all reports in one package – Single Submission • ---------------------- • NB: In case of need coordinator can decide to submit package without some Form C (beneficiaries didn't submit Form C on time and blocking payment for whole consortium), those beneficiaries will not have any opportunity to submit their Form C within the same reporting period, only in the next reporting period!

36. Progress reports (art. 19 of GA) • NO financial report required • WHEN ITN- Within 30 days after year 1 • RISE - within 30 days after the end of each year, except when the periodic and final reports are due (year 1 and 3) • COFUND and IF – not applicable • WHAT • Template defined on the Participant Portal plus attachments possible • HOW • via PP  MP

37. Periodic Report (art.20 of GA) - for ITN, RISE, COFUND • WHEN • Within 60 days following the end of each reporting period • WHAT Periodic report includes: • Technical report (attachment) + Continuous reporting, including questionnaire (H2020 key indicators) • Financial report – Individual financial statement from each beneficiary + Periodic summary financial statement • HOW Via PP  MP

38. Periodic Report (art.20 of GA) - for IF • IF with 1 reporting period: • Within 60 days following the end the project • "Report" containing: • Technical report (attachment) + Continuous reporting, including questionnaire (H2020 key indicators) • Financial report – Individual financial statement from beneficiary • IF with more than 1 reporting period: • Within 60 days following the end of each RP • "Periodic report" containing: • Technical report (attachment) + Continuous reporting, including questionnaire (H2020 key indicators) • Financial report – Individual financial statement from beneficiary • HOW Via PP  MP

39. Final report • WHEN • Within 60 days following the end of the last reporting period • WHAT • Report covers whole project period • Final technical report • Final financial report (final summary financial statement created automatically by the electronic exchange system, consolidating the individual financial statements for all reporting periods) • To be submitted together with Periodic report for last RP • HOW • Via PP MP • Applicable for: - IF with more than 1 RP • - ITN • - RISE • - COFUND

40. No Funding distribution report No Certificate on Financial Statement • Only specific cased – recovery, termination, audit, etc. defined in the GA

41. Reporting Summary

42. Amendments: • WHAT • Changes in the Grant agreement (e.g. change in consortium, modification of Annex I, etc.) • Normally with prior agreement of Project Officer • HOW • Via PP MP

43. After the grant agreement is signed by Coordinator and by REA

44. The AmendmentRequestcanonlybe • Rejected (the whole) (withcomments) • Accepted (the whole) - 45 days • Widthdrawnby the originated party • No other option; no 'negotiation'

45. Useful documents • Grant Agreement • Annotated Grant Agreement • Work Programme • Guides for Applicants • Marie Skłodowska-Curie website