1. INFORMATION SESSION ON THEHORIZON 2020 MODEL GRANT AGREEMENTResearch andInnovationBrussels6 May 2013Disclaimer: this information is subject to ongoing discussions.
2. Legal frame: New Financial Regulation &Rules for Participation (for the specificities) Objectives: Simplification: through clarity and legal certainty Flexibility: to cope with specificities Coherence: within Horizon 2020 and with the otherEU programmes Continuity: where appropriate and where in linewith the FR and the RfP Starting point: Pilot model GA developed by the horizontal services ofthe Commission (applicable for all programmes)The future Horizon 2020 model Grant Agreementin three messagesDisclaimer: this information is subject to ongoing discussions.
3. Grant AgreementWhat will be new? Global architecture covering all the possibilities offered by the newFR; Terminology: terms and meanings defined in the FinancialRegulation except for those terms specific to H2020; A single document with all provisions (no more Core + Annex II,Annex III or special clauses); complemented by a "Data Fiche"summarising the specificities of the grant; On-line explanations for each part of the grant ("annotated GA") Simplified wording, including for the IPR provisions, prepared incollaboration with specialised drafting experts.Disclaimer: this information is subject to ongoing discussions.
4. A first NCPs workshop: held on 15 November 2012 to identifythose aspects of the grant agreement that need furthersimplification and clarity in H2020 on the basis of the experiencegained by the NCPs in FP7. A second workshop: on 16 – 17 April to inform the NCPs on howthe Commission intends to tackle the issues identified in the firstworkshop. The NCPs were invited to submit written comments inthe next days. A summary will be prepared shortly. A workshop with stakeholders held on 22-23 April withrepresentative associations with an European dimension. It wasbased on the main issues identified by the NCPs. Stakeholders wereinvited to provide written feedback. A summary will be producedsubsequently.Workshops and consultations with National ContactPoints (NCPs) and stakeholders on the Horizon 2020 GADisclaimer: this information is subject to ongoing discussions.
5. Agreement with the overall principles of simplification, coherenceand flexibility. Simplification is a question of clarity and legal certainty; not linked tothe production of shorter texts. They consider continuity also as a source of simplification. Finding the right balance between the different objectives is achallenging exercise. Favourable first feedback on the new structure of the guidancedocuments proposed for H2020. Both stakeholders and NCPs identified the treatment of clinical trialsas a point to be addressed.Initial feedback from National Contact Points (NCPs)and stakeholders on the Horizon 2020 GADisclaimer: this information is subject to ongoing discussions.
6. Examples of simplification elements in theHorizon 2020 grantsElectronic signature• Of the Grant Agreement• Of the Amendments• Financial Statements and Technical reportsCommunication between the Commission and beneficiaries• Through the Participant PortalDisclaimer: this information is subject to ongoing discussions.
7. Examples of simplification elements in theHorizon 2020 grantsCertificates on Financial Statements (Art 28)• Only if total amount of the grant of the beneficiary is ≥ EUR325,000 at the time of the payment of the balance• Only for reimbursement of actual costs and unit costs fordirect personnel costsCertificates on the Methodology(Art 29)• As an option when using unit costs for direct personnel costsDisclaimer: this information is subject to ongoing discussions.
8. Major issues identified by theLegal and Financial NCPsDisclaimer: this information is subject to ongoing discussions.
9. Major issues identified by the Legal andFinancial NCPsPersonnel CostsOther costcategoriesThird parties &subcontractingOthers• Definition ofpersonnel costs• Definition ofdirect costs• Conditions forparticipation ofthird parties• Receipts• Annualproductivehours• VAT• Requirements forsubcontracting• Amendments• Time recording• Exchange rateprovisions• Gender issues• Content of theConsortiumAgreement• IPR clarificationsDisclaimer: this information is subject to ongoing discussions.
10. 1. Cost eligible as "personnel costs"Council PGA (art.22a.1):"Without prejudice to the conditions laid down in Article 22 [eligibility of costs],direct eligible personnel costs shall be limited to salaries plus social securitycharges and other costs included in the remuneration of personnel assigned tothe action, arising from the national law or the employment contract."Grant Agreement: Will include the definition of personnel costs which will be furtherexplained in the "annotated grant agreement". Clarify special cases, e.g. natural persons working under a contract (in-house consultants) Include provisions regarding SME owners similar to FP7 Define the way to calculate the hourly rates Definition of what is eligible as direct personnel costsDisclaimer: this information is subject to ongoing discussions.
11. 1. Cost eligible as "personnel costs" (continuation)Council PGA (art. 22a.2)Article 22.a of the Council´s PGA makes a distinction between remunerationresulting from national law or employment contract and other additionalremuneration paid to personnel assigned to the action.Only the second would be subject to the 8000 € ceiling.Grant Agreement:If the PGA provision remains, the boundaries between one and the other type ofbonuses would have to be clearly defined. Provisions on additional payments (bonus)ParliamentDoes not agree with the provisions on additional payments.Disclaimer: this information is subject to ongoing discussions.
12. 2. Annual productive hours Option 1: 1680 (?) hoursStraight forward option: no conditions, no audit verification of the "real"productive hours, no need for having a "usual cost accounting practice". Option 2: standard productive hours according to the beneficiary s usualcost accounting practicesThis option would have to be subject to a minimum threshold to avoid abusivepractices or practices incompatible with the cost eligibility criteria.The minimum threshold would also reduce the risk for the EU and allow for less auditchecks on the standard productive hours and more legal certainty (win-win situation). Option 3: individual productive hours possible for those entities having full-time recording as usual cost accounting practiceSubject also to a minimum threshold as in option 2.Council PGA (art. 25.3b): "The option to choose between a fixed number of annualproductive hours and the method for establishing the number of annual productive hoursto be used for the calculation of the hourly personal rates taking account of theparticipants usual accounting practices"Disclaimer: this information is subject to ongoing discussions.
13. 3. Time recording Requirements will be set up at the minimum possible level givenreasonable assurance on the hours charged. These requirements will be defined in the grant agreement: explicitand clear obligations (warning: implications of non-compliance !). For persons working exclusively for one action: on the basis of adeclaration of the participant.Council PGA (art. 25) :• The evidence regarding the actual hours worked shall be provided by the participant,normally through a time recording system.• The agreement shall contain the minimum requirements for the time recording system.• For persons working exclusively for one action: no time-recording.Disclaimer: this information is subject to ongoing discussions.
14. 4. Definition of Direct Costs What is a direct cost for an H2020 project?Generated by the implementation of the action, measurable and measured (noapportionment). Costs of large infrastructures: following the Commission statement at the timeof the adoption of the Council´s PGA, detailed guidelines are being prepared."Les gros chantiers" (the big worksites): Further details per direct cost categoryFor instance: specific provisions for personnel costs, list of types of costs whichmay be considered "direct" (including explanations), etc.Disclaimer: this information is subject to ongoing discussions.
15. 5. VATExplicit reference to be included in the GA :NON-DEDUCTIBLE VAT SHALL BE ELIGIBLEDisclaimer: this information is subject to ongoing discussions.
16. 6. Exchange rates provisionsUsual accounting practice of the beneficiary for the conversion intoEuros. Beneficiary´s accounts in € purchases in other currencies: Beneficiary´s accounts in other currency:We aim at decreasing the exchange risk for the beneficiaries reducingthe impact of fluctuations in the exchange rates. The FP7 provisionshave been problematic for some countries.Possible option: using the average exchange rate during the reportingperiodDisclaimer: this information is subject to ongoing discussions.
17. 7. Definitions and conditions for third parties8. Requirements for subcontractingBeneficiaryAffiliated entitiesThird parties with alegal linkSubcontractors• Must be identified in the GA• Same costs eligibility criteriathan the beneficiary• Accept joint and severalliability for their EUcontribution [when requestedby the COM or funding body]*• Estimated costs and tasksmust be clearly identified inthe budget• Ensure best value for moneyand avoid any conflict ofinterestsDisclaimer: this information is subject to ongoing discussions.Council PGA (art. 19. §3-5) : Third parties carrying part of the work:* Based on the Council´s compromise proposal
18. Other third partiesBeneficiaryContractsnecessary for theimplementationArt. 209 RAPThird Parties makingresources available• For the purchase ofgoods, works or services• Ensure best value formoney and avoid anyconflict of interestsDisclaimer: this information is subject to ongoing discussions.• Contributions in kind freeof charge are eligiblecosts if they meet theeligibility conditions
19. 9. Receipts The financial flows considered as receipts will be verysimilar to those in FP7:Income generated by the actionIncome generated from the saleof assets purchased under theGAFinancial or in-kind contributions for the action received free ofcharge IF specifically assigned by the donors to be used in the actionReceiptsDisclaimer: this information is subject to ongoing discussions.
20. 10. Amendments Article on amendments to be simplified (e.g. signature process,supporting documents through the Participant Portal, etc).11. Gender Issues Specific provisions aiming at the promotion of gender equality.Article 15 of H2020"Horizon 2020 shall ensure the effective promotion of gender equality and thegender dimension in research and innovation content."Disclaimer: this information is subject to ongoing discussions.COREPER agreement: Article 12.3.a. RfP"Where relevant and specified in the work programme or the work plan, proposalsshall explain how and to what extent gender analysis is relevant to the content ofthe intended project. "
21. 12. IPR related provisions The proposed rules on IPR, exploitation and dissemination of resultsare being discussed at inter-institutional level. Grant agreement: Open Access: the grant agreement will lay down conditions underwhich open access is to be provided, specifically for peer-reviewedscientific publications relating to results and, when applicable, forresearch data. Confidentiality: Specific provisions on the handling and disclosure ofconfidential information will apply. Additional exploitation obligations: on-going assessment.Disclaimer: this information is subject to ongoing discussions.
22. 13. Content of the Consortium AgreementCommissionThe members of aconsortium shallconclude a consortiumagreementCouncil PGAThe Commission shallpublish guidelines onthe main issues thatmay be addressed byparticipants in theirconsortium agreementsEP amendment- The Commission shallpublish guidelines- Open list of issuesthat may be stipulatedin the CA The final wording of the Rules for Participation will frame the provisions tobe included in the model grant agreement. In any case, the Commission intends to provide appropriate informationand guidance on the content of the consortium agreement.Disclaimer: this information is subject to ongoing discussions.