1. Overview on the Financial
Guidelines
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Raffaele De Amicis
Fondazione Graphitech
Presented by:

2. Overview of topics
1. Signature and accession
2. Reporting periods
3. Coordinator’s bank account
4. Obligations of the coordinator and beneficiaries
5. Community contribution and payment
6. Eligible costs
7. Budget transfers
8. Reporting
9. Audit certificates
10. Special conditions

3. GA: Signature, accession and start date
Entry into force of
the GA after its
signature by
coordinator and
Commission (day of
last signature)
Accession of entities
identified in Art. 1.2
by means of Form A
(GPF’s forms) within
45 days of entry into
force
If any entity does
not accede →
solution to be
proposed by
consortium →
amendment to GA
Project start date =
1st day of month
after entry into
force of GA, unless
fixed start date

4. Reporting Periods
Project divided into
reporting periods
Duration to be fixed
(Art. 4)
• P1: M01 – M18
• P2: M19 – M36
Reporting periods
determine
periodicity of
progress reports and
financial statements

5. Coordinator’s bank account
Denominated in EUR
Account must allow the
Community financial
contribution and related
interest to be identified
Pre-financing remains
property of the Community
until final payment
Commission shall recover
from coordinator, for each
reporting period, interest
generated where the prefinancing exceeds EUR
50,000

6. Main obligations of coordinator
Acts as intermediary
between Commission
and beneficiaries for
any communication
Receives Community
contribution on behalf
of beneficiaries and
distributes it
Reviews reports &
deliverables to verify
consistency with
project tasks and work
done
Monitors compliance
of beneficiaries with
their contractual
obligations

7. Coordinator’s obligations (1)
• Intermediary for any communication between the
Commission and any beneficiary
• Receives EU contribution on behalf of the beneficiaries
and administers it
• Keeps record and financial accounts
• Informs the Commission on the distribution of the
funds
• Reviews the report before transmitting them to the EC
• Monitors the compliance by beneficiaries with their
obligations
• Outsourcing is NOT possible

8. Coordinator’s obligations (2)
• Designing and maintaining partner specific templates for
collecting input to the required EU documents;
• Implementing and maintaining of a project-specific
database for reporting and controlling, including the
adaptation of the structure after changes in the workplan
and the consortium;
• Drafting and maintaining the dissemination and
exploitation plan following the EC’s requirements;
• Preparing and post-processing of EC reviews from the
consortium- side including support in the implementation
of recommendations from the EC and reviewers,
• The administrative tasks involved in the preparation,
executing and post-processing of major project meetings

9. Coordinator’s obligations (3)
• Scientific coordination:
• The scientific coordination and monitoring of subprojects and workpackages (including the activities as work package leader);
• The supervision of project progress milestones and project global
critical path;
• The scientific review of the work performed by the partners
including scientific deliverables and the coordination of internal
progress reports;
• Monitoring of progress with work packages, deliverables and
milestones and the work plan, including the verification of the
quality, consistency and respect of deadlines;
• Research risk management;
• The preparation of the scientific part of the reports and deliverables
to be submitted to the EU

10. Main obligations of beneficiaries
Inform consortium and
Commission through
coordinator of names and
contact details of staff
working on project
Forward to coordinator data
needed to draw up reports
& deliverables, any other
information requested by
Commission or Court of
Auditors
Inform coordinator &
Commission of any changes
or events affecting project
Attend relevant meetings
concerning monitoring &
evaluation of project (e.g.
project reviews)
Avoid conflicts of interest

11. Beneficiary’s obligations (1)
• Carry out the work of Annex I correctly and timely
• Inform EC in due time on persons managing the work,
– any event which might affect the implementation of the
project and the rights of the Community,
– any change regarding its legal, financial, organisational or
technical situation,
– any circumstances affecting the conditions of participation.
– Example : beneficiary is facing financial difficulties
• beneficiary goes under administration
• beneficiary has been taken over

12. Beneficiary’s obligations (2)
• Provide the EC and Court of Auditors with all
information if requested;
• Take part in meetings concerning the project;
• Ensure compliance with state aid framework;
• Take all measures to avoid commitments that
are incompatible with the obligations of the
GA.
• “NEW” - Designate a legal entity appointed
representative (LEAR)

13. Community contribution
Maximum contribution
indicated in Art. 5
In this case, …
funding from 50% to
100% of total eligible
costs per beneficiary,
indirect cost calculated
according REA
Different funding rates for different activities or organisation types

14. EU contribution -- Upper funding limits
EU contribution Upper funding limits
Policy
Research and
Policy
Research and
Innovation
Innovation

15. EU contribution -- Upper funding limits
EU contribution Upper funding limits
Policy
Research and
Policy
Research and
Innovation
Innovation

16. Payment Modalities
One pre-financing paid
to the coordinator
within 45 days
following the entry into
force of the GA
•160% of average EU
funding per
period, but capped at
60% of maximum
Community
contribution
Interim payments
based on financial
statements
•Pre-financing +
interim payments
limited to 90% of
maximum Community
contribution
(retention of 10%)
Final payment = based
on financial statements,
payment outstanding
balance

17. Eligible Costs
Stated in Annex I (Indicative
breakdown of the budget and
the Community financial
contribution between
beneficiaries)
Necessary for the
implementation of the
project
Identifiable and verifiable,
and recorded in the
beneficiary’s accounts
Actually incurred by
beneficiary during project
duration (except costs for
final reports and CFS as well
as for technical reviews)
Reasonable and justified

18. Non-eligible Costs
exchange rate losses
resources made available to
a beneficiary free of charge
(e.g. third-party
contributions)
value of contributions in
kind
indirect taxes and duties,
including VAT (unless the
beneficiary can show that it
is unable to recover it)
entertainment or hospitality
expenses, except those
accepted by the
Commission as being
absolutely necessary for
carrying out the project
any cost incurred or
reimbursed in respect of, in
particular, another
Community, international or
national project

19. Eligible Direct Costs
Personnel
Three categories
Subcontracting
Travels and
related
subsistence costs
Other specific
direct costs
Purchase costs of
durable
equipment
Consumables
and Supplies

20. Eligible Direct Costs - Personnel
costs of the actual hours worked by the persons directly carrying
out work under the project
such persons must:
• Be directly hired by beneficiary
• Work under the sole technical supervision and responsibility of the beneficiary
• Be remunerated in accordance with the normal practices of the beneficiary

21. Eligible Direct Costs - Subcontracting
With whom one
or more
beneficiaries
reach an
agreement on
business
conditions
A third party
to carry out part
of the work of the
project without
direct supervision
of the beneficiary
and without
relationship of
subordination
What is a subcontractor

22. Eligible Direct Costs - Subcontracting
• Subcontracting of certain elements of work allowed if
– necessity of subcontracting duly justified in Annex I and
– tasks concerned and an estimation of the corresponding costs indicated
in Annex I
awarded according to best price-quality ratio, under conditions
of transparency and equal treatment.

23. Eligible Direct Costs - Subcontracting
(Art II 6)
Any subcontract for which the costs are to be claimed as
eligible costs shall be awarded according to the principle of
best value for money (best price-quality ratio), under
conditions of transparency and equal treatment.
Subcontracting costs shall be in accordance with market
prices.

24. Eligible Direct Costs – Other Costs
the depreciation equipment corresponding to the duration of the project at the rate of
actual use for the project
travel and subsistence allowances for personnel taking part in the project, in line
with the beneficiary’s usual practices
dissemination of information
any financial guarantees (e.g. audit certificates)
specific costs incurred by coordinator for overall management of project and
coordination of beneficiaries

25. Indirect Costs
Different funding rates for
different organisation
types calculated as % of
personnel costs, …see REA

26. EU contribution – Method of calculation of
indirect costs
• For all:
– either actual overhead or simplified method
– Standard flat rate of 20% of direct costs minus
subcontracting and 3rd parties not used at the premises of
the beneficiary)
• Special transitional flat rate (60% of direct costs minus
subcontracting and 3rd parties not used at the
premises of the beneficiary) can only be used if the
following criteria are fulfilled:
– Non profit Public Bodies, Secondary and Higher Education
establishments, Research Organisations and SMEs
– unable to identify real indirect costs,

27. Simplification measures
• Commission Decision of 24 January 2011
Article II.14 of the GA / Guide to financial
issues
• Average personnel costs
• SME owners who do not receive a salary

28. Budget Transfer
Beneficiaries may transfer budget amounts
between themselves, provided work is carried
out as described in Annex I
Coordinator shall notify any such transfer to
Commission without unjustified delay

29. Reporting
covers any information
to be supplied in
response to a request
by the Commission
format and layout shall
conform to rules
communicated by the
Commission
to be submitted to the
Commission for each
reporting period not
later than 60 days after
end of period

30. Reporting
Progress reports contains:
information about progress of work, including
achievements and attainment of milestones
resources employed
departures from work schedule

31. Reporting
For interim and final payments:
the financial statements from each
beneficiary
together with summary financial report
consolidating Community contribution claimed
by all beneficiaries

32. Reporting
Final report comprising
final publishable summary
report
results, conclusions and socioeconomic impact of the project

33. Reporting
Reports to be submitted
through the coordinator in
one original (paper) copy
and one electronic copy
• data in the paper copy shall be regarded as authentic
• date of receipt of the paper copy shall be taken into
account for the time limits set out in agreement.
Commission has 105 days
to evaluate and execute
the corresponding
payment
• No tacit approval of reports
Commission can reject
reports and deliverables
even after the time-limit
for payment