Highlights on the Grant Agreement model Research within

Highlights on the Grant Agreement model “Research within Priority Sectors” Program Anca GHINESCU Program Coordinator anca. ghinescu@ancs. ro Tel/fax +40. 21. 3183053 Online Seminar on Grant Agreement May 28, 2014

Summary � � � � Terminology, object, duration and value General obligations & Specific obligations Eligible costs Reporting Evaluation Payments Changes of the project Controls and audit IPR & Public procurement Termination or suspension of funding Return of funding Final provisions & Annexes Partnership Agreement Schedule for negotiation and contracting Final remark Online Seminar on Grant Agreement May 28, 2014

Terminology, object, duration and value � Contracting Authority = Program Operator (PO) Parties to the Grant Agreement (GA) � Contractor = Project Promoter (PP) � But, the entire consortium is mentioned in GA (all Project Partners are nominated in the preamble) � Chapter I Definitions & Chapter II Object of the GA � Chapter III Duration: - entry into force of GA (upon last signature & assignment of registration no. ) - completion of GA (date of final payment) - start of activities July 1, 2014 (set schedule of negotiation & contracting) - completion of activities by April 30, 2017 (deadline for eligibility of costs on projects level) � Chapter IV Funding: - total GA value in lei (national currency at Infor. Euro exchange rate in June) and euro - plus the budget split per years (separate values for EEE Grant and cofunding) - possible update of the GA value, at the final payment, methodology approved by FMO on the use of the reserve for the exchange rate losses Online Seminar on Grant Agreement May 28, 2014

General obligations & Specific obligations (I) � General obligations for the Parties: - compliance with mandatory national and EU regulations, including rules on competition, public procurement, state aid and provisions of the GA and its annexes; - the Contractor shall represent the project consortium within the lifetime of the GA; - other general obligations of the Contractor with regard to the implementation of the project, dissemination activities, payments (flow of funding), reporting, changes in the Partnership Agreement/legal & organizational statute, private co-financing, audit trail ensured for the duration of GA and up to 5 years after project completion; - the Contractor responsibility with regard to achievement of the project objectives and set indicators, ensuring the correct implementation by all Project Partners and fulfilment of all obligations required by the GA. � Specific obligations for the Contractor - perform the activities according to project proposal, optimal use of provided funds, promotion activities on project (Annex 4 of the Regulation), cooperation with 3 rd parties contracted by the PO for monitoring and evaluation activities, keep track of assets purchased, distinctly organize the accounting for economic and non-economic activities (if it is the case), draw up, maintain and keep clear and detailed accounting records, open a dedicated account, return of funding and interest in case of project termination, etc. - other particular provisions valid only for the Contractor and Project Partner from RO Online Seminar on Grant Agreement May 28, 2014

General obligations & Specific obligations (II) � - Specific obligations for the Contracting Authority promptly examine the documents submitted by the Contractor provide yearly advance payments of up to 90% of the annual value of the GA preserve the confidential information belonging to/obtained under this GA ensure the assessment of the reporting documents ensure the monitoring of the project specific clause with regard to organization of its own system for protection of classified information Online Seminar on Grant Agreement May 28, 2014

Eligible costs � Eight cumulative conditions are set for the eligible costs like: costs incurred during the project implementation, proportionate costs to set objectives and needed costs, related to the GA and included in the total budget, complying with the expenses stipulated in chapter 7 of the Regulation, used for the sole purpose of achieving the project objectives and of the expected results, identifiable and verifiable, comply with the applicable legislation on taxes and with the approved state aid scheme. � Eligible costs performed in accordance with principles of fair competition, confidentiality, transparency and avoiding the conflicts of interest. � Personnel expenditures are determined according to the national legislation from each country. � Categories of costs related to travel expenses (transportation, accommodation, daily allowance, visa fees, health insurance, etc. ) � VAT is an eligible cost if there is no deduction or reimbursement of it, according to national tax rules � Declaration of the chosen model for indirect costs and its value for the Contractor and Project Partners Online Seminar on Grant Agreement May 28, 2014

Reporting (I) � � Reporting documents: Annual report, Final report and Report on scientific publications. Annual report, within 30 days from the end of the fiscal year, shall contain: scientific and technical report (model in Annex VII) explicative note on the use of resources Contractor's financial statement plus the aggregated form for the financial reports of Project Partners request for payment for the justified due amount covered by the annual report(model in Annex VIII) Final report, within 30 calendar days from the completion of the project shall contain: final publishable summary report (with results, conclusions and socio-economic impact of the project, final indicators on the project); report covering the wider societal implications of the project and a plan for use and dissemination of the generated results; distribution of the financial contribution between Contractor and Project Partners. Report on scientific publications containing references and summary of all scientific publications on project results, within 30 days of their publication, submitted during and at the end of the project. Online Seminar on Grant Agreement May 28, 2014

Reporting (II) Financial Report submitted at the end of each financial year comprise: post-calculation expenditures of the period (model provided in Annex III); sheet of costs incurred within the reported period (model provided in Annex IV). Interim Financial Report, submitted no later than the 5 th working day of November in each budgetary year, using the model provided in Annex IX. � If any irregularities are detected in the reporting documents, the Contractor shall resolve all discrepancies/missing documents within 15 days from date of receipt of the notification. � Endorsement of reporting documents, except for the scientific and technical report which is subject to evaluation by experts, is due within 15 working days from the receipt of all necessary documents. � � Online Seminar on Grant Agreement May 28, 2014

Evaluation � Purpose of the scientific and technical report evaluation: - implementation of the project is compliant with the GA & - implementation of the project leads to the achievement of the foreseen outputs and objectives � Based on the evaluation, PO can withhold or reduce future funding if: project is implemented in a contradictory manner/breaching the law/no achievement of the foreseen outputs and objectives. � Evaluation of final report: contract to be deemed as executed/executed, with a summons to pay the contractual penalties/non-executed, in whole or in part � If failure to achieve the objectives of the project, notification of the PO, termination of the project, reimbursement of unused funds & final report Online Seminar on Grant Agreement May 28, 2014

Payments � Advance payments, upon request (Advance Payment Convention), granted up to 90% of the amount earmarked for each fiscal year, except the last year (2017) � Advance payment for the last year, maximum 70% of its earmarked budget � Advance Payment Conventions submitted no later than 5 working days after signing GA/beginning of each budgetary year � Interim payments (remaining justified due amount) of up to 10%, paid upon request (Payment Application), after evaluation of S&T report and endorsing of reporting documents (financial reports) � Final payment of the project: within 10 working days after evaluation of the annual report for 2017 & final report & approval of reporting documents � Transfer of funds from PO to Contractor: maximum 10 working days from the date of approval of Advance Payment Convention/Payment Application � Transfer of funds from Contractor to Project Partners: maximum 10 working days from the receipt of funding. Transfers in euro for Project Partners in NO/IS � Funds remained unused at the end of the fiscal year: - Project Partners in NO/IS keep the funds to be used next year with the same destination - Contractor & Project Partners in RO keep the EEA Grant, but transfer back the cofunding (15%) to PO. Co-funding transferred again to them within first 10 working days of next year (national rules) � Total interest from project funding declared in the final report and reimbursed to PO Online Seminar on Grant Agreement May 28, 2014

Changes of the project � Not allowed to introduce any changes in the project implementation without the consent of PO � If occurs, termination of GA without period of notice, but 3 exceptions to this rule: 1. shift among all categories of expenses, excluding indirect costs, so as the total reallocated value does not exceed 15% from the total project budget 2. change of dates for achievement of specific task, not exceeding 4 months, but no change in final date for completion of project 3. shift of funds between subsequent budgetary years, as long as they do not affect the activities foreseen in Annex II - Project Planning � Any shift of funds (see above) no increase in total project funding � Obligation to notify PO about any change in project implementation, including the exceptions � If other changes are required, Contractor submits an application to PO (with reasons for change) plus a draft Addendum to the GA, in max. 30 days but no later than 3 months before project completion Online Seminar on Grant Agreement May 28, 2014

Controls and audit � Controls may be carried out at any time during the project implementation and within 5 years after the completion of the project � Controls shall be carried out by PO/experts authorized by PO/other control authorities in accordance with the binding legal regulations � Controls carried out at the premises of the Contractor & Project Partners from RO, as well as locations of the project implementation in RO � Procedure for controls is described step by step in several articles of GA � Compulsory audit is carried out by an independent & certified auditor if the project budget is ≥ 375. 000 euro � Auditing cost is an eligible cost on the project � Audit report, for the Contractor and every Project Partner , submitted along with the final report Online Seminar on Grant Agreement May 28, 2014

IPR and Public Procurement � Research results obtained under this GA belong to the Contractor & Project Partners and/or their employees, in accordance with the Partnership Agreement and legislation in force concerning the titles of industrial property and copyright � Research results are managed by their owners, with all the rights deriving from ownership � Public procurement shall be carried out according to the binding legislation in the field of public procurement at national & European Community level and in compliance with the provisions of article 7. 16 of the Regulation � Documentation related to public procurement shall be kept by Contractor & Project Partners for the period specified in article 7. 16 para (6) of Regulation Online Seminar on Grant Agreement May 28, 2014

Termination or suspension of funding � Either Party may terminate this GA after one month from notification (notification must specify the reasons) � PO may suspend or terminate funding after notification in 5 cases (like threatening situations for the GA execution, ensure a positive cash flow from the Contractor’s fault, failure to comply with publicity obligations, irregularities that make further execution of the contract impossible or unreasonable) � PO may suspend or terminate funding without notification in 16 cases (see the GA) � Termination of GA does not relieve the Contractor from its obligation to justify the funds received and submit a final report within 30 days from the date of termination � Reimbursement of funds if the GA is terminated (next chapter) � If force majeure occurs, neither Party will be liable to the other nor shall be deemed as breaching the contract provisions related to non-performance or improper performance of its obligations (several articles on the procedure to follow in case of force majeure) Online Seminar on Grant Agreement May 28, 2014

Return of Funding � If GA is terminated in certain circumstances, the Contractor shall refund the entire received funding, within 15 days from the date of submission of notification, together with the interest on the amount � In justified cases, PO may request a partial refund of funds transferred (especially in the force majeure cases) � Upon duly justified request, the Contractor may postpone refunding, reimburse funding in installments or be exonerated by the PO when proven failure of the research activities � PO may suspend financing and may oblige the Contractor to refund the amount (funding + interest) if the Financial Mechanism Committee or the Ministry of European Funds (National Contact Point) decides this way � Different contractual penalties when: - failure to meet deadlines regarding execution of project activities (start and final date) - failure to perform the contract, in all or in part, or misuse of funding Online Seminar on Grant Agreement May 28, 2014

Final provisions & Annexes � Transfer of rights, obligations and responsibilities of the Contractor/Project Partners can not be transferred to a 3 rd party without the prior consent of the PO � Rules set for the communication between Parties to the GA � Contractor/Project Partner may subcontract, but not more than 15% of the project funding, those activities that are proved to be necessary for the project and which can not be made directly by one of the Project Partners, but not the main activities of the project � The Project Investigator can be changed only in the event of death/at the proposal of the Executive Committee established under the Partnership Agreement/if the director can not continue due to illness, accident, resignation or force majeure � Cession of the GA or some of its parts is forbidden � Annex I – Project Proposal (project application submitted at the Call for proposals) � Annex II – Project Planning � Annex III – Framework Estimate � Annex IV – Sheet of costs incurred within the reporting period � Annex V – Advance Payment Convention � Annex VI – Schedule of Payments � Annex VII – Scientific and Technical Report � Annex VIII – Payment Application � Annex IX – Interim Financial Report � Annex X – Project Information for Do. RIS Online Seminar on Grant Agreement May 28, 2014

Partnership Agreement Starting document: DESCA model for Partnership Agreement (PA) Consultation with the Donor Program Partners Result: a model for the PA tailored for this Program This PA model will to be provided to each Contractor at the beginning of the negotiation and contracting phase In brief � Purpose of PA: to specify, with respect to the project, the relationship among the Parties (defined as members of the project consortium), in particular concerning the organization of the work, management of the project and the rights and obligations of the Parties concerning, inter alia, liability, access Rights and dispute resolution � PA provisions concerning: applicable legal framework, entry into force, duration and termination, responsibilities of the Parties, responsibilities towards each other, governance structure, financial provisions, foreground, access rights, non-disclosure of information, auditing, a. s. o. � � Online Seminar on Grant Agreement May 28, 2014

Schedule for negotiation and contracting No. Activity 1 Sending out letters of invitation to Contractors for the negotiation and contracting phase 2 Information meeting with Contractors, held at PO venue 3 Sending to PO the letter of Contractors on acceptance/rejection of the conditions set for the reduced projects budget according to PC decision 4 5 Sending to PO of the documents needed for signing the GA (GA with annexes filled out and PA signed, note on changes done to GA as a result of reduced budget, declaration on conformity) Feed back from project officer & financial officer on received documents sent to Contractors Deadline May 29, 2014 June 2, 2014, at 9. 30, room 301 June 3, 2014 June 6, 2014 June 11, 2014 6 Sending to PO the documents with changes done by Contractors at the request of PO communicated in June 11 (if needed) June 13, 2014 7 Final check by the project officer & financial officer of documents sent by Contractors and final announcement if they fulfill all requirements for signing the GA June 17, 2014* 8 GAs signed by Contractors (in cases when negotiation is completed) as well as first Advance Payment Convention are sent to PO June 18 - 19, 2014 9 Internal approval and signing of GAs and Advance Payment Conventions by PO June 20 – 26, 2014 10 Delivery of signed GA to Contractors and first transfer of funds Online Seminar on Grant Agreement May 28, 2014 June 27 -30, 2014

Final remark � In order to keep this tight schedule, your collaboration with and support to Contractors is crucial! � Don’t hesitate to contact DPPs representatives/PO team in case any further clarifications are needed/questions are raised in the forthcoming period of GA negotiation � PO team to be contacted Anca GHINESCU - Program Coordinator e-mail anca. ghinescu@ancs. ro; tel. +40. 21. 318. 30. 53 Vasile LUNGU – Deputy Program Coordinator e-mail vasile. lungu@ancs. ro; tel. +40. 21. 318. 30. 65 Thank you for your attention! Online Seminar on Grant Agreement May 28, 2014