MSCA Legal Administration and Finances under H 2020

MSCA Legal, Administration and Finances under H 2020 Tbilisi 17 January 2017 Gabriela CHIRA Research Executive Agency

Overview A. Finances B. Project Life Cycle C. Reporting and Amendments

A - Finances

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

EU Contribution funding mechanism § § § 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 t uni 1 = f th o n mo ESR 1 le gib eli

Eligible and Ineligible Costs Article 6 of the GA Eligible costs: q q 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: q Costs which do not comply with the conditions in the GA q Costs reimbursed under another EU or Euratom grant

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

Costs categories summary Researcher Living allowance* 600 500 4650 600 500 Staff member unit costs RISE 2000 Management and indirect costs 1800 1200 800 650 Institution 1800 Researcher COFUND Research, training and networking costs Family allowance 3110 ITN IF Mobility allowance Institution ESR 1855** ER 2625** * country correction coefficient ** co-funding – minimum : 2. 597 and 3. 675 700 Institution 325**

A – RESEARCHER ALLOWANCES

A 1. 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: q Type of contract Employment contract (Type A) - Monthly ref. rate from WP OR Fixed-amount fellowship (Type B) - 50% of Type A rate q Country Correction Coefficient (in Work Programme)

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

Records What records do we need to keep for EU audit purposes? Ø Evidence of the eligibility of the fellow. Ø Employment contract/agreement with the fellow. Ø Proof of payment of the salary to the fellow and of the deductions for social security etc. Ø 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? Ø No Timesheets are not an obligation for MSCA Fellows but can be used if in line with local practices.

A 2. Mobility allowance (N/A for RISE and COFUND) For Whom? How much? All recruited fellows 600 EUR per month

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.

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)

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.

B – INSTITUTIONAL COSTS

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: q Training courses etc. q Research costs q Participation of researchers in training events and conferences q Short periods field work q Co-ordination between participants q Tuition fees (if applicable)

How is it distributed between the partners? (ITN) Ø Calculated according to the fellow-months per beneficiary. Ø The full flat rate to be reported by the beneficiary paying the fellow Ø 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? Ø The fixed rate of 1. 800 EUR (ITN) or 800 EUR (IF) applies to the implemented fellow months; Ø therefore, the maximum allowable for category B 1 is as follows: Ø category B 1 = total fellow months delivered x € 1. 800 (ITN) / € 800 (IF)

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

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

Parental and maternity leave Can a fellow take maternity or parental leave? Ø Yes, in accordance with national legislation Are the costs of the leave eligible? Ø 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? Ø Yes, this is possible

B. Project lifecycle

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

Maximum payments – example TOTAL EU CONTRIBUTON = 100% Prefinancing = 60% 55% for project 5% for Guarantee fund Interim Payment = Pr oj ec 30% Final Payment = td ur at 10% Guarantee Fund reimbursement = io n 5% After final payment

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

Interim payment How Much? Up to 90% of total EU Contribution (prefinancing + interim payment) • 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

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

Individual financial statement example ITN

C - Reporting

Principles of submission in H 2020 Forms 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

Continuous Reporting: - Possible to submit whenever during the project life cycle:

2 - Periodic reporting

Submission of Periodic report – H 2020 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 "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!

1. 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

2. 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 (H 2020 key indicators) § Financial report – Individual financial statement from each beneficiary + Periodic summary financial statement § HOW Via PP MP

2. 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 (H 2020 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 (H 2020 key indicators) § Financial report – Individual financial statement from beneficiary § HOW Via PP MP

3. 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

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

Reporting Summary IF Reports COFUND IF with more than 1 RP ITN RISE Progress report x x Periodic report (end of each reporting period) x x x Final Report (end of the project) x x Researcher Declaration (for each researcher) x x x with 1 RP

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

After the grant agreement is signed by Coordinator and by REA

The Amendment Request can only be • Rejected (the whole) (with comments) • Accepted (the whole) - 45 days • Widthdrawn by the originated party No other option; no 'negotiation'

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