Model Grant Agreement AMENDMENT v4.0 27/02/2017
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1 HORIZON HORIZON Model Grant Agreement AMENDMENT v4.0 27/02/2017
2 Most relevant novelties Article 6.2.A.1 Direct personnel costs: new definition for additional remuneration Article 6.2.A.2 Direct contracts eligible as personnel costs: new focus on the factual situation instead of the legal form of the contract Article 6.2.A.5 New budget category for Internal Invoices: for the acceptance of internal invoices as direct costs Article 6.2.E Indirect cost for beneficiaries with operating grants: allowing beneficiaries with an operating grant to claim indirect costs under H2020 grants under some conditions Article 14a New type of third party: implementation of action tasks by international partners without EU funding 2 Disclaimer: Information not legally binding
3 NEXT STEPS Implementation In SyGMa: expected from August 2017 onward o For calls launched before the switch, v3.0 will continue to be used Annotated grant agreement (AGA): o Updated AGA with explanations for the five main novelties published on 21 April 2017 Retroactivity New rights: retroactive for all on-going grants (grants whose final financial reports had not yet been submitted on ). New obligations: no retroactivity (only apply to new grants v4.0) 3 Disclaimer: Information not legally binding
4 Classifying workforce contracts PERSONNEL COSTS Workforce costs 4 Disclaimer: Information not legally binding
5 What contract under what budget category What persons can you declare under personnel costs? Other cases: Standard case: persons hired by the beneficiary via an employment contract (qualified as such under national law; and for whom the entity pays social security contributions) Natural persons hired directly via a contract other than an employment contract if: o the person works under conditions similar to those of an employee (e.g. organisation or work, premises, etc.) o The result of the work belongs to the beneficiary (exceptions may apply) o The costs are not significantly different from those of an employee of the beneficiary doing similar tasks Employees of a third party seconded to the beneficiary (must be set in Annex 1!) NEW! (2017) 5 Disclaimer: Information not legally binding
6 Personnel costs: Calculation Hours worked Hourly rate EUR/hour Additional remuneration Time records Formula for actual costs & specific unit costs Applies only to beneficiaries with projectbased remuneration schemes 6 Disclaimer: Information not legally binding
7 Personnel costs: hourly rate 1: ACTUAL COSTS 1A - General case: the salary does not depend on specific projects 1B - Specific case: project-based remuneration NEW! (2017) Subject to the! provisions on additional remuneration 7 Disclaimer: Information not legally binding
8 ACTUAL personnel costs: hourly rate How do I know if I am in the general case 1A or in the specific case 1B? For example: If your remuneration for time worked in some projects is different from your remuneration for your other duties: you are in the specific case (1B) You get a supplementary employment contract for the work in the project You get a bonus or premium for the time worked in the project Your contract fixes a specific hourly rate for work in specific projects Otherwise, you are in the general case (1A) 8 Disclaimer: Information not legally binding
9 Case 1A (general case): hourly rate calculation Hourly rate = Personnel costs Productive hours NEW! (2016) Annual hourly rate Hourly rates calculated per full financial year Annual personnel costs Annual productive hours Two options Monthly hourly rate Hourly rates calculated per month Monthly personnel costs Monthly productive hours 9 Disclaimer: Information not legally binding
10 Case 1A (general case): hourly rate calculation Monthly hourly rate specificities Monthly personnel costs Monthly productive hours One hourly rate per each month the person works in the action Monthly productive hours = 1/12 of the annual productive hours! Only options 1 (1720) and 3 (standard) are allowed. Option 2 (individual) is NOT allowed for monthly hourly rates. Thirteen salary (and similar) included in each month "pro-rata"; not in full in the month when they are paid. 10 Disclaimer: Information not legally binding
11 CASE 1B (project-based): personnel costs Hours worked Hourly rate EUR/hour Additional remuneration Time records Calculated on the 'Basic remuneration' Eligible only to non-profit beneficiaries 11 Disclaimer: Information not legally binding
12 Case 1B: additional remuneration NEW! (2017) What is additional remuneration? Article 6.2.A.1: Additional remuneration means any part of the remuneration which exceeds what the person would be paid for time worked in projects funded by national schemes. Additional remuneration Remuneration paid for work in national projects BASIC remuneration Remuneration paid to the person for work in the Horizon 2020 action! Additional remuneration may only be eligible for non-profit legal entities 12 Disclaimer: Information not legally binding
13 Case 1B: additional remuneration NEW! (2017) What is remuneration paid in national projects? Remuneration set out in national law or internal rules of the beneficiary for work in national projects (it must have been paid at least once before the proposal) Only if there is no applicable national law or internal rules: Average of the salary of the person the previous year (excluding any part corresponding to H2020 actions) 13 Disclaimer: Information not legally binding
14 Internal invoices unit cost NEW! (2017) Internal invoices refer to costs of goods or services produced by the same beneficiary who use them directly for the H2020 action and calculated in accordance with its usual cost accounting practices INTERNAL LEGAL ENTITY Department A Department B INVOICES Consumables or Services Costs 14 Disclaimer: Information not legally binding
15 Internal invoices unit cost NEW! (2017) Self-produced consumables e.g. electronic wafers, chemicals, etc. EXAMPLES Use of devices or facilities e.g. clean room, wind tunnel, supercomputer, etc. Specialized premises e.g. animal house, aquarium, etc. Standardised processes e.g. genomic test, mass spectrometry analysis, etc. Hosting services for researchers e.g. housing and canteen costs for visiting researchers 15 Disclaimer: Information not legally binding
16 Internal invoices unit cost NEW! (2017) Internal invoices must be calculated in accordance with the usual cost accounting practice of the beneficiary, but adjusted if needed to comply with the cost eligibility conditions OK Direct staff Consumables Depreciation of the item Maintenance and supplies if their costs are directly identifiable NOT OK Indirect staff Costs of central services Shared costs for which the part used for the item is not directly identifiable Ineligible cost (e.g. bank interests) 16 Disclaimer: Information not legally binding
17 Third parties What is a third party? A legal entity which carries out work of the action, supplies goods or provide services for the action, but which did not sign the grant agreement What types of third parties? THIRD 1. Third parties directly carrying out part of the work described in Annex 1 PARTIES 2. Other third parties: providing resources, goods or services to the beneficiaries for them to carry out the work described in Annex 1 3. Third parties receiving financial support (money) from the beneficiary as part of the action. Only when authorised in the call 17 Disclaimer: Information not legally binding
18 1. Third parties carrying out work in the action Beneficiary Linked third parties Affiliated entities Third parties with a legal link Subcontractors NEW! (2017) INTERNATIONAL PARTNERS 18 Disclaimer: Information not legally binding
19 New Article 14a Non-EU partners: involvement in H2020 STANDARD involvement: Horizon 2020 project Sign Grant agreement With EU funding No EU funding X 19 Disclaimer: Information not legally binding 19
20 New Article 14a Non-EU partners: involvement in H2020 Consortium Partner B INCREASED OPENNESS TO THE WORLD International Partner does not sign Grant Agreement WHO? Any legal entity established in a non-associated third country which is not automatically eligible for EU funding No EU funding X 20 Disclaimer: Information not legally binding
21 New Article 14a "INTERNATIONAL PARTNERS" H2020 project Partner B Partner D - Signatories of the GA - May receive EU funding - Partner B has one International Partner X International Partner: - Linked to Partner B - Participant Identification Code (PIC number) - Not Signatory of the GA - No EU funding - Own (non EU) Budget - Action Tasks in the Project - No financial reporting 21 Disclaimer: Information not legally binding
22 Additional info Participant Portal At: Horizon 2020 Annotated Grant Agreement Horizon 2020 On-line Manual Questions? Research Enquiry Service 22 Disclaimer: Information not legally binding
23 HORIZON 2020 Thank you for your attention! Find out more:
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