Eligibility of costs in the Horizon 2020 funded EUROfusion project
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1 Eligibility of costs in the Horizon 2020 funded EUROfusion project Garching, 3 December 2015 Direct Costs of Presented by: Michael Erdmann, EUROfusion Coordinator Unit, Max-Planck-Institute for Plasma Physics
2 H Eligibility of costs Direct Costs Indirect Costs Specific Costs Actual Costs Flat-rate Costs Unit Costs Unit Costs General Eligibility Conditions Subcontracting Overhead Mobility Other Direct Costs Specific Eligibility Conditions Travel Equipment Goods & Services
3 Eligibility of direct costs Direct Costs Actual Costs General Eligibility Conditions Unit Costs Subcontracting Other Direct Costs Specific Eligibility Conditions Travel Equipment Goods & Services
4 Eligibility of Direct Costs of Direct Costs Actual Costs Costs that are directly linked to the action implementation and can therefore be attributed to it directly. caused in full by the action or caused in full by several actions and the attribution to a single action can, and has been, directly measured General Eligibility Conditions Unit Costs Specific Eligibility Conditions
5 Costs - general eligibility conditions Actual General conditions for actual costs to be eligible Art. 6.1 Eligible actual costs must meet the following criteria: actually incurred by the beneficiary OK incurred during the action duration (exception for final report) indicated in estimated budget set out in Annex 2 incurred in connection with the action as described in Annex 1 and necessary for its implementation identifiable and verifiable, properly recorded in the beneficiary s accounts in compliance with applicable national law on taxes, labour & social security reasonable, justified, complying with principle of sound financial management
6 Costs - specific eligibility conditions Specific eligibility conditions for personnel costs Art. 6.2 a Specific eligibility conditions for direct personnel cost: OK mandatory clear assignment including information on the extent of involvement (part / full time) to the project (e. g. employment contract, internal written instructions, organisation chart, documented management decision) For full time employment / assignment: Declaration on a person working exclusively on a H2020 action For part time employment / assignment: all working (not only the project-related one) documented by the use of time sheets
7 Costs - specific eligibility conditions Specific eligibility conditions Art. 6.2 a
8 Costs - specific eligibility conditions Specific eligibility conditions Art. 6.2 a Specific eligibility conditions for direct personnel cost: OK based on contracts, legal acts or formal institutional agreements appropriate to the salaries paid for comparable personnel in research institutions and administrations total amount of personnel costs is proportional to the qualification of the human resources involved and the amount of work dedicated to the project
9 Costs - specific eligibility conditions Specific eligibility conditions Art. 6.2 a Direct costs of personnel cover: the basic salary and mandatory complements (salary stated on the beneficiary s payroll, social security contributions, taxes and other costs included in the basic remuneration, mandatory complements); variable complements (authorised by national law, collective labour agreement or employment contract);»» and, for non-profit legal entities, additional remuneration up to a certain ceiling for personnel that worked on the action.
10 Costs - Exercise Example cases: a salary defined in the employment contract for the employees usual tasks a 13th month payment foreseen in the collective labour agreement a bonus based on a decision of a superior a bonus authorized by the collective labour agreement; payment complies with usual practices of the beneficiary; decision is based on objective criteria a top up for being responsible officer for radiation protection as provided for in collective labour agreement for additional tasks/expertise in another project for additional tasks/expertise in EUROfusion; payment is specific to EU actions only paid for additional tasks/expertise consistently paid if the same type of expertise is required Mandatory complements Basic salary Variable complements Additional remuneration Ineligible
11 Costs - Exercise Example cases: a salary defined in the employment contract for the employees usual tasks a 13th month payment foreseen in the collective labour agreement a bonus based on a decision of a superior a bonus authorized by the collective labour agreement; payment complies with usual practices of the beneficiary; decision is based on objective criteria a top up for being responsible officer for radiation protection as provided for in collective labour agreement for additional tasks/expertise in another project for additional tasks/expertise in EUROfusion; payment is specific to EU actions only paid for additional tasks/expertise consistently paid if the same type of expertise is required Mandatory complements Basic salary Variable complements Additional remuneration Ineligible
12 Calculation of Costs Calculation of personnel costs Art. 6.2 a actual worked on the action hourly rate additional remuneration Time records (time sheets or 100 % declaration) Formula for actual costs (or specific unit costs) For non-profit legal entities only
13 Calculation of Costs Calculation of hourly rate Art. 6.2 a actual worked on the action hourly rate additional remuneration Actual Costs 3 options: 1720 fixed individual annual productive standard annual productive actual annual basic remuneration number of annual productive Unit Costs Average personnel costs: Hourly rate calculated by the beneficiary in accordance to its usual accounting practices
14 Calculation of Costs Determination of annual productive Art. 6.2 a hourly rate actual annual basic remuneration number of annual productive 3 options for determining the number of annual productive : 1720 fixed individual annual productive standard annual productive for persons working full time (or corresponding pro-rata for persons not working full time) ( 1720 fixed ) annual workable of the person + overtime worked - absence (e. g. sick leave) standard number of annual - generally applied by beneficiary for its personnel in accordance with its usual cost accounting practices
15 Calculation of Costs Additional remuneration Art. 6.2 a actual worked on the action hourly rate additional remuneration eligibility ceiling fixed at EUR per year for each full-timeequivalent (FTE) if not hired full time pro-rata reduction
16 Calculation of Costs Additional remuneration Art. 6.2 a additional remuneration Occupation working exclusively for EUROfusion during the full financial year NOT working exclusively for EUROfusion during the full financial year hired full time during the entire year EUR Contract NOT hired full time during the entire year Pro-rata amount of EUR {EUR / annual productive FTE} multiplied by worked for EUROfusion
17 Costs - Exercise Option 1: Employment contract does not allow determination of annual workable. Working per day... Maximum per year... Annual leave... Other unproductive... Absence due to sickness... Overtime... costs per year... Hours worked for the action... Please, calculate. Annual workable : + - = Overtime (in ) Absence (in ) Individual annual productive : Hourly rate: costs to be charged to EUROfusion: n. a. n. a , Euro
18 Costs - Exercise Working per day... Maximum per year... Annual leave... Other unproductive... Absence due to sickness... Overtime... costs per year... Hours worked for the action... n. a. n. a , Euro Please, calculate. Annual workable : n. a. Option 1: Employment contract does not allow determination of annual workable. + - = Overtime (in ) Absence (in ) Individual annual productive : Hourly rate: costs to be charged to EUROfusion: , n. a. n. a. n. a. (88,000 / 1,720 h) (168 h x )
19 Costs - Exercise Option 2: Employment contract allows determination of annual workable. Working per day... Maximum per year... Annual leave... Other unproductive... Absence due to sickness... Overtime... costs per year... Hours worked for the action... Please, calculate. Annual workable : + - = Overtime (in ) Absence (in ) Individual annual productive : Hourly rate: costs to be charged to EUROfusion: 8 1, , Euro
20 Costs - Exercise Working per day... Maximum per year... Annual leave... Other unproductive... Absence due to sickness... Overtime... costs per year... Hours worked for the action , , Euro Option 2: Employment contract allows determination of annual workable. Please, calculate. Annual workable : + - = Overtime (in ) Absence (in ) Individual annual productive : Hourly rate: costs to be charged to EUROfusion: 1,628 h [1,948h - 80h - (30d x 8h)] , , h h h (88,000 / 1,595 h) (168 h x )
21 Costs - Exercise Option 3: Employment contract allows determination of annual workable. Working per day... Maximum per year... Annual leave... Average unproductive... Average absence due to sickness... Overtime... costs per year technician... costs per year scientist... Hours worked for the action... Standard annual productive technicians... Standard annual productive scientists... Please, calculate. Standard annual workable : 90% of standard workable : Hourly rate: EUROfusion costs: Technicians Scientists Technicians Scientists 8 1, n. a. 65,000 88, ,550 1,610 Euro Euro
22 Costs - Exercise Working per day... Maximum per year... Annual leave... Average unproductive... Average absence due to sickness... Overtime... costs per year technician... costs per year scientist... Hours worked for the action... Standard annual productive technicians... Standard annual productive scientists , n. a. 65,000 88, ,550 1,610 Euro Euro Option 3: Please, calculate. Standard annual workable : 1,744 h [1,948h - (20d x 8h) - 12h - (4d x 8h)] Employment contract allows determination of annual workable. 90% of standard workable : Hourly rate: EUROfusion costs: Technicians Scientists Technicians Scientists 1, , , h (1,744 h x 90%) (65,000 / 1, h) 88,000 / 1,610 h) (168 h x ) (168 h x )
23 Costs - ineligible costs Indicative list of ineligible costs Costs invoiced to a third party and therefore not definitely and genuinely born by the beneficiary Payments or services with monetary value, which are given or paid to the employee without a legal commitment (e. g. ad hoc allowances, bonuses) Additional remuneration not directly linked to the participation in EUROfusion Unpaid voluntary work costs not based on time sheets / declaration on 100% EUROfusion assignment Costs for personnel provided by a temporary work agency (may be covered by budget category Direct costs of subcontracting or Other direct costs ) Recruitment costs (covered by 25% flat-rate for indirect costs)
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