Validation of Participants Clean Sky 2014 Negotiation Kick-off Info Day Pamela Gorini Henk Van Belle REA - Unit C3 Participant Validation and Support 19th June 2014
Summary Part 1 How to obtain a PIC Part 2 The validation process and LEAR nomination Part 3 Update of organisation data Part 4 Financial viability check
Glossary PP PIC Participant Portal Participant Identification Code LEAR Legal Entity Appointed VS Representative Validation Services
Part 1 How to obtain a PIC
What does the Participant Portal offer? Amongst other features, the PP hosts the beneficiaries' registration module, from where the validation process starts: Data submission & documents upload over a web interface Generation of the Participant Identification Code Nomination of the Legal Entity Appointed Representative
How to register your organisation?
Mandatory elements: legal name, address, contact and LEAR Programme-related information: different statuses (including SME) are to be declared in order to participate Financial Viability Check information to be filled out only when requested by the Validation Services
Once the registration completed: After data submitted, you will receive an e-mail with the summary of your selfregistration, and a temporary Participant Identification Code (PIC) will be provided to the applicant. Applicants will be able to introduce corrections or updates to the data The system supports documents upload up to 8 Mb.
Part 2 The validation process and LEAR nomination
The validation process The validation of a participant is unique and valid throughout the entire FP7 programme. Entities validated under FP7 will keep their valid status and attributed PIC for H2020 participation. During the validation of a legal entity, the validation services verify the (i) legal existence and (ii) the status of an applicant against FP7 Rules for Participation (iii) the ICM (if applicable).
Documents for validation For FEL validation Legal entities form (signed and dated version, 3 templates: private, public, natural person) VAT document or proof of exemption Registration extract (private entities) or law/decree (public entities) LEAR nomination documents (blue ink)
Documents for validation For FP7 status Non-profit status Research (non-profit) status Higher education International Treaty (international organisation)
The validation process For SME status SME CHECK LIST: Duly signed and bearing the name of the legal representative (provided by the REA) BALANCE SHEET: Clear mention of company s total assets and liabilities (ANNUAL BALANCE SHEET THRESHOLD)
The validation process For SME status PROFIT & LOSS ACCOUNT: Clear mention of company s turnover (ANNUAL TURNOVER THRESHOLD) and the kind of income the company generates (it helps us understand if it is involved in a commercial/economic activity).
The validation process For SME status STATEMENT OF THE STAFF HEADCOUNT: In case there is no mention on any of the Balance Sheet, the Profit & Loss account or accompanying notes NB. According to Art.339 of the Lisbon Treaty «EC Staff is not allowed to disclose any information about undertakings, their business relations or their cost components.» Protection of data is also mentioned in the Code of Good Administrative Behaviour and FP7 rules for participation.
SME - THE THRESHOLDS COMMISSION RECOMMENDATION OF 6 MAY 2003 (concerning the definition of micro, small and medium enterprises) - STAFF HEADCOUNT (ARTICLE 5) - ANNUAL TURNOVER (ARTICLE 4) - ANNUAL BALANCE SHEET (ARTICLE 4) ENTERPRISE CATEGORY STAFF HEADCOUNT ANNUAL TURNOVER OR ANNUAL BALANCE SHEET TOTAL Medium-sized < 250 EUR 50 million AND/OR EUR 43 million Small < 50 EUR 10 million AND/OR EUR 10 million Micro < 10 EUR 2 million AND/OR EUR 2 million
SME - AUTONOMOUS, PARTNER OR LINKED? COMMISSION RECOMMENDATION OF 6 MAY 2003 AUTONOMOUS (Article 3.1) -Totally independent -Holds less than 25% (capital or voting rights) in another and/or -Another holds less than 25% PARTNER (Article 3.2) - Holds between 25% and 50% (capital or voting rights) in another and/or -Another holds between 25% and 50% - Not linked to another enterprise LINKED (Art.3.3) -Direct or indirect control of the majority of voting rights/capital EXCEPTIONS (Art.3.2 (a-d)): Venture Capital Companies, Universities, Institutional Investors and Autonomous local authorities are permitted to hold a stake between 25% and 50% without affecting company s autonomous status. An enterprise is NOT an SME if 25% or more of capital or voting rights are directly or indirectly controlled, jointly or individually, by one or more public bodies.
Uploading documents
Uploading documents
Uploading documents
Providing documents upon request of VS S Go to 'documents tab' Select the 'requested' field Browse option will appear Upload the relevant proof Click on 'submit for processing'
The LEAR nomination LEAR nomination mandatory Nominated FP7 LEARs will have to renew mandate for H2020 upon invitation by the VS or as soon as H2020 is launched (to allow e-signatory for GAs and financial statements) Required documents (blue ink): LEAR appointment letter, roles and tasks (mandate), ID, proof of empowerment for legal representation
Part 3 Update of organisation data
Request for update
Update data Go to participant portal=> my organisations Select the programme Encode the request Click on 'update your data' For legal or programme-related data, the VS might contact LEARs to provide legal/financial documentation
Part 4 Financial viability check
Legal basis EC-Decision 2012/838/EU 18/12/2012 Three categories of participants are subject to Financial Viability Check: Coordinators: (if not public bodies, international organisations or guaranteed). Beneficiaries: requesting more than 500.000 EU contribution (if not public bodies, international organisations or guaranteed). Others: exceptionally, if the operational unit requires it. Required documents: The non-consolidated 2012 statements (or 2011, should 2012 not yet be available): 1. The balance sheet; 2. The income statement; 3. The notes being part of the statements; 4a. If the requested EU-contribution is less than K500: the signed statutory audit report (If exempted from auditing under your national legislation, the statements have to be signed for approval by the board of directors). 4b. If the requested EU-contribution exceeds K500: the signed external auditors report, which has to include the clear mandate to audit, the responsibilities of both the management and the auditor, the way of conducting the audit, including the reasonable assurance about whether the financial statements are free of material misstatement, and the auditor's opinion. The exemption from auditing under national legislation is not applicable if the requested EU-contribution exceeds the threshold of K500. Start-ups have to provide a signed business plan with the forecasted financial data (Balance sheet and Income statement) for the 3 coming years.
Roles in the FVC-procedure FVC-request initiated by NEF The FVC-team contacts the participant by email. Data submission The participant, directly in the participant portal: - encodes its data, and - uploads the supporting documents If no LEAR has been appointed yet (or if problems with the procedure in the portal), the documents are sent by email to REA-FVC@ec.europa.eu. The FVC-team: - checks the data, and Data validation - performs its assessment in PDM (IT-tool for legal and financial validation). The ratios and qualifications are available in NEF and in the participant portal. Clean Sky assesses the results. Project related assessment The final decision is with the Authorizing officer (AOSD)
How can a Coordinator check the FVC-status of the participants? In NEF
Thank you for your attention!