Introduction

EGEE-III INFSO-RI-222667

Enabling Grids for E-sciencE

www.eu-egee.org

FP7 Financial Rules, Project Reporting and Tools

Dita Mocova

EGEE-II / EGEE-III Transition Meeting CERN, Geneva 6-7 May 2008



Introduction

1. FP7 Financial rules - general

2. FP7 Financial rules - project specifics

3. Financial reporting - internal

4. Financial reporting - external

5. PPT (Project Progress Tracking)

EGEE-II / EGEE-III Transition Meeting 6-7 May 2008 2


EGEE-III INFSO-RI-222667 EGEE-II / EGEE-III Transition Meeting 6-7 May 2008 3

FP7 Financial Rules

Direct costs - can be traced in full to the project

Personnel Travel (incl. permanent staff) (members of EGEE-III)

Equipment (not infrastructure)

BUT: Admin and support can be indirect!

Certificate on financial statements – subcontracting, NA1

Rental of conference/event/training venue

Coffee breaks at meetings/trainings/conferences, not dinners!



FP7 Financial Rules

Indirect costs (overheads)– All eligible costs which cannot be traced directly to the project

– Not possible to measure directly how much of these costs relate to the project

– Costs incurred generally in the course of all activities of the organisation




FP7 Financial Rules

Methods of calculation of indirect costs:– Depends on the accounting system of the beneficiary and the type

of organisation – Each beneficiary & JRU provided overhead rates in GPF

Actual Indirect Costsbeneficiaries with analytical accounting system

Flat Rates: 20% - open to any beneficiary, 20% of direct costs less

subcontracting

60% (Transitional Flat Rate) – 3 conditions:1. Status of the organisation

2. Accounting system of the organisation

3. Type of funding scheme

CSA – 7% of direct costs




FP7 Financial Rules

Eligibility Criteria

Costs must be: Actual Incurred by the beneficiary Incurred during the project In accordance with the usual accounting and management

principles of the beneficiary Used for the sole purpose of achieving the objectives of the project

and consistent with the principles of economy, efficiency and effectiveness

Recorded in the accounts of the beneficiary Have been indicated in the estimated overall budget

in Annex I



FP7 Financial Rules

Non-Eligible Costs

Examples: Identifiable indirect taxes (VAT, airport taxes)Duties Interest owedProvisions for future losses/chargesExchange losses, costs related to return of capitalCosts declared/incurred/reimbursed in respect of another

Community projectDebt and debt service chargesExcessive, reckless expenditure




FP7 Financial Rules

Reimbursement rates in EGEE-III (combination of CP and CSA)

Scheme A & Industrial Partners: ½ PMs declared as Funded, ½ as unfunded

*industrial partners

Scheme B: all PMs declared as Funded

NA2-NA5: 7% of direct costs = max. reimbursement of indirect costs

NA1 NA2-NA5 SA1-SA3 JRA1

Direct Costs 100% 100% 100% 75%

Indirect Costs 100% 7% 100% 75%/50%*

NA1 NA2-NA5 SA1-SA3 JRA1

Direct Costs 100% 50% 50% 50%

Indirect Costs 100% 7% 50% 50%



FP7 Financial Rules

Pre-financing

Paid to the coordinator, CERN At the beginning of the project (May/Jun) Remains property of EC until final payment 85% of total EC contribution less 5% of EC

contribution for the Guarantee fund Distributed pro rata to the partners in 2 advance

payments (Annex 5 of CA): – 50% 10 days after receipt by the Coordinator– 50% after submission of 1st quarterly reports




FP7 Financial Rules

Interim payment

After approval of the periodic reports by EC Equals the accepted EC contribution requested in Form

C by beneficiary + JRUs

BUT! Pre-financing + interim payment limited to 90% of the

max. EC contribution




FP7 Financial Rules

Final payment

After approval of final reports by EC Equals to accepted EC contribution (P1+P2) less

amounts already paid If payments made exceed the EC contribution,

difference to be paid back to the Coordinator! includes the Guarantee fund




FP7 Financial Rules

Example:

beneficiary with max. EC Req. Contribution of 1,000,000 EUR


Pre-financing 85% of EC contribution less 5% guarantee fund 800,000

P1 Req. Contribution 300,000

90% rule1,000,000 x 90% = 900,000

Max. payment 900,000 less 800,000 already paid

100,000

P2 Req. Contribution 700,000

Total Req. Contribution 300,000 + 700,000 = 1,000,000

1,000,000 less 900,000 already paid

100,000

TOTAL 1,000,000



FP7 Financial Rules

Guarantee fund

To cover financial risks, kind of insurance contract 5% of the max. EC contribution (1.6mill. EUR) Deducted from total pre-financing Interest generated to cover any losses Paid back with the final payment Deduction only if interest not sufficient to cover the

losses– Never more than 1%– No deduction for public bodies and universities



Financial Reporting

Internal

Timesheets Internal Cost Claims

External (to EC)

Quarterly Financial Status Form C Certificate on the

Financial Statement (CFS) Effort Reports Explanation of the use of

resources Reports on the funds

distribution




Financial Reporting - Internal

Timesheets Purpose:

– Main supporting document for claiming personnel costs!– Used by auditors– Monitor effort– Quarterly reports to EC

All members of the project Due: monthly, 10 working days after month end, supervisors 15

days Tool: PPT

– WBS and tasks based on the execution plans– Members: funding ratios, productive hours– Reported hours converted into PMs– Automatic reminders– On-line validation



Financial Reporting - Internal

Internal Cost Claims (ICC)

Purpose: – Monitor the spending of the consortium– Produce quarterly financial status for EC, in QR

Due: 22 days after each quarter-end Cumulative!, but separate for Period 1 and 2 In EUR, exchange rate rules Tool: PPT

– Every beneficiary and JRU member– Download to excel– Upload - previous quarter overwritten with current one– At the end of the project only two ICCs in PPT (Q4 and Q8)




Financial Reporting – External

Form C – Financial Statement

Purpose:– to receive interim & final payments

Due: 60 days after the end of project period All beneficiaries and all JRU members In FP7 costs separated into personnel & other costs EC - 105 days to evaluate the reports and execute the payment Pre-filled Form C in PPT

– After submitting ICC Q4 & Q8– Consistent with ICCs





Certificate on the Financial Statement (CFS)

At the end of the project Only if EC contribution above 375k EUR

(beneficiary + JRUs) Covering two years Contract auditors in advance! Sign engagement letter! Report on factual findings Mandatory terms of reference – scope of work Compulsory report template Annex VII - Form Dftp://ftp.cordis.europa.eu/pub/fp7/docs/guidelines-audit-certification_en.pdf





Other Reports

Explanation of the use of resources– by activity & type of cost (personnel, subcontracting, major cost

items)

Summary Financial Report Effort Reports

– input needed from partners – timesheets

Report on the distribution of funds

All the reports produced by PO, input from beneficiaries and JRUs




Summary




HELP!

FP7 Financial guideftp://ftp.cordis.europa.eu/pub/fp7/docs/financialguide_en.pdf

Guidance notes on audit certificationftp://ftp.cordis.europa.eu/pub/fp7/docs/guidelines-audit-certification_en.pdf

Guidance notes on project reportingftp://ftp.cordis.europa.eu/pub/fp7/docs/project_reporting_en.pdf

Form C for combination of CP and CSA ftp://ftp.cordis.europa.eu/pub/fp7/docs/fp7-ga-annex6-csa_en.pdf

OR

[email protected]

Phone: +41 22 767 0605


Documents

Introduction