HORIZON 2020 H 2020 GRANT AGREEMENT LEGAL AND

HORIZON 2020 H 2020 GRANT AGREEMENT LEGAL AND FINANCIAL ISSUES European Commission DG Research & Innovation Directorate H, Transport Research

Chapter 1: General H 2020 Grant Agreement • Single article: subject of the agreement Chapter 2: Action • Action, duration and budget Chapter 3: Grant • Amount, reimbursement rates, eligible costs Chapter 4: Rights and obligations • To implement the action: resources, in-kind contributions, subcontracts • Grant administration: reporting, payments, audits • Background and results: access rights, protection of results, exploitation, dissemination • Others: gender equality, ethics, confidentiality Chapter 5: Division of roles • Roles and responsibilities, internal arrangements Chapter 6: Rejection, reduction, penalties, termination, etc • Rejection, reduction, recovery and penalties • Suspension and termination of the action Chapter 7: Final provisions • Accession, entry into force, amendments, applicable law Disclaimer: Information not legally binding

Annexes to the Grant Agreement Annex 1: Description of the action Annex 2: Estimated budget Annex 3: Accession Forms, 3 a & 3 b Annex 4: Financial statements Annex 5: Certificate on the financial statements Annex 6: Certificate on the methodology Disclaimer: Information not legally binding

+ Consortium Agreement (CA) Ø CA is mandatory unless otherwise specified in the work programme Partne r Article 41. 3 of the H 2020 Model Grant Agreement Partner Ø Characteristics • It is a private agreement between the beneficiaries and does not involve the EC • Deals with the rights and obligations of the beneficiaries amongst themselves. Examples: internal organisation, distribution of EU funding, additional rules on IPR, settlement of disputes, etc. • In principle to be concluded before signing the Grant Agreement Disclaimer: Information not legally binding Coordinato r

COORDINATOR Contact point GA Signatory Monitoring • must coordinate and manage the grant central contact point towards the Commission • Directly signs the GA • Signs amendments to the GA on beneficiaries' behalf • Monitors the proper implementation of the action Coo's duties and responsibilities towards the EC - Art. 41. 1 GA Internal arrangements in the Consortium agreement Disclaimer: Information not legally binding

Coordinator's duties - Art. 41. 1 GA Requests and reviews any documents or information required by the EC Submits the deliverables and reports to the Commission Ensures that all payments are made to the beneficiaries without unjustified delay Informs the EC of the amounts paid to each beneficiary, when required under the GA or requested by the EC Disclaimer: Information not legally binding

BENEFICIARIES Implement ation • Sign accession forms within 30 days after the entry into force of the GA • Jointly and severally liable for the technical implementation Compliance • Must comply with their obligations under the GA Accession to the GA Duties and responsibilities towards the EC - Art. 41. 1 GA Internal arrangements - the Consortium agreement Disclaimer: Information not legally binding

Beneficiaries' duties - Art. 41. 1 GA Keep information in the Beneficiary Register up to date; Inform the coordinator immediately of any events likely to affect significantly the implementation; Submit to the coordinator in good time: individual financial statements and CFS ( Art. 20); - data needed to prepare Technical report (Art. 20); - ethics committee notifications or authorisations (Art. 34); - any other documents or information required by the EC. Disclaimer: Information not legally binding

Acknowledgment of EU funding y communication activity related to the action must: display the EU emblem and include the following text: “This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement No [number]”. Disclaimer: Information not legally binding

THIRD PARTIES: carrying out work in the action Beneficiary • Legal link Linked third parties Affiliated entities • Must be identified in the GA • Same cost eligibility criteria than beneficiaries THIRD • NEW: the Commission Third parties with may request the beneficiary a legal link PARTIEStoliability accept joint and several for the EU ! contribution Subcontractors • Article 14 MGA Disclaimer: Information not legally binding

Beneficiary THIRD PARTIES: carrying out work in the action Linked third parties Affiliated entities • Ensure best value for money and avoid any conflict of interests Third parties with a legal link • Estimated costs and tasks must be identified in the budget and Annex 1 • Subcontractors ! NEW: if not identified in Annex 1, Commission may still approve them (beneficiary bears the risk of rejection) • Article 13 MGA Disclaimer: Information not legally binding

THIRD PARTIES: others Beneficiary • For the purchase of goods, works or services Contracts necessary for the implementation • Ensure best value for money and avoid any conflict of interests • Article 10 GA • Free of charge or against payment are eligible costs if they meet the eligibility conditions Contributions in kind • Must be set out in Annex 1 • ! NEW: if not identified in Annex 1, Commission may still approve them (beneficiary bears the risk of rejection) • Articles 11 & 12 GA Disclaimer: Information not legally binding

Reporting Periodic report: 118 1 2 3 1936 3757 Technical report Financial reports Requests for payment The coordinator must submit a periodic report within 60 days following the end of each reporting period. In addition, the coordinator must submit the final report within 60 days following the end of the action. Disclaimer: Information not legally binding

Payments Time-to-Pay One Pre-financing 30 days From The latest between starting date and entry into force → Retention 5 % of maximum grant for the Guarantee Fund Interim Payments 90 days From reception of periodic report → Based on financial statements (EU contribution= eligible costs approved * reimbursement rate) → Limit = 90 % of the maximum grant (Retention 10%) Payment of the Balance 90 days Disclaimer: Information not legally binding From reception of final reports

Forms of costs Actual costs • Costs actually incurred, identifiable and verifiable, recorded in the accounts, etc • NEW: non-deductible VAT is eligible Unit costs • A fixed amount per unit determined by the Commission. Examples: SME owners' unit cost /clinical trials if in the proposal. • For average personnel cost (based on the usual accounting practices) Flat rate • A percentage to be calculated on the eligible costs (indirect costs 25% of direct costs) Disclaimer: Information not legally binding

Reimbursement rates Direct costs One action One rate CSA Coordination and Support Action R For all beneficiaries and activities in the grant. R Defined in the Work Indirect costs FLAT RATE 25% 100% Programme. Disclaimer: Information not legally binding

Budget categories Disclaimer: Information not legally binding

Budget transfers and re-allocation Amendment needed? From one beneficiary to another NO From one budget category to another NO Re-allocation of Annex 1 tasks YES Transfers between forms of funding (actual costs, unit costs, etc) YES if no budget was foreseen for the category receiving the transfer advised New subcontracts Disclaimer: Information not legally binding

Receipts Income generated by the action (except for action´s results) Income generated from the sale of assets purchased in the GA Receipts In-kind contributions: -specifically for the action -received free of charge Financial contributions specifically assigned by the donors to finance the eligible costs No-profit rule is applied at the GA level, not per beneficiary! Disclaimer: Information not legally binding

Final grant amount: calculation Step 1 — Application of reimbursement rates to eligible costs Total approved eligible costs X reimbursement rate 100 % Step 2 — Limit to the maximum grant amount The total obtained in Step 1 is capped at the maximum amount set in art. 5. 1 GA The grant amount is the lower of the two amounts set in Steps 1 and 2. Step 3 — Reduction due to the no-profit rule Profit means the surplus of the amount obtained in Steps 1+2 plus the action's total receipts over the total eligible costs If there is a profit grant amount obtained in Step 2 is reduced If no profit grant amount obtained in Step 2 is not reduced Step 4 — Reduction due to improper implementation or breach of other obligations under the GA at the payment of the balance Final grant amount is the lower of the following two amounts: Amount obtained following Steps 1 to 3 Amount obtained in Step 4 Disclaimer: Information not legally binding

Final grant amount: example Maximum grant amount Approved eligible costs Funding rate If Receipts If Reduction 200 220 100% 30 20 Step 1 Total approved eligible costs X reimbursement rate 220 * 100 % = 220 Step 2 The lower between Step 1 and the maximum amount of the grant Lower between (220; 200) = 200 Step 3 Step 2 - profit of the action (only if positive) = Step 2 + receipts – Eligible cost 200 – (200 + 30 -220) 200 – 10 = 190 Step 4 The lower between Step 3 and the reduced maximum grant amount Lower between (190; (200 - 20)) Lower between (190; 180) = 180 Disclaimer: Information not legally binding

PERSONNEL COSTS: novelties ü Less requirements for time records Example: No time records for researchers working exclusively on the project. ü Wider acceptance of average personnel costs PERSONNEL COSTS Broadening the acceptance of usual cost accounting practices (including cost-centre approaches) as unit costs. ü Acceptance of additional remuneration → Limited to non-profit legal entities → Up to 8000 Euro/year/person working fulltime exclusively in the action → Subject to specific conditions (Art. 6, 2 GA) Disclaimer: Information not legally binding

PERSONNEL COSTS: overview CALCULATING PERSONNEL COSTS UNIT COSTS ACTUAL PERSONNEL COSTS Calculation method defined in the model GA Calculated by the beneficiary in accordance to its usual accounting practices (Average personnel costs) Disclaimer: Information not legally binding Fixed by the Commission for the owners of SME beneficiaries without a salary and natural persons without a salary

Actual personnel costs: structure TOTAL REMUNERATION Standard remuneration "Mandatory extras" Basic Salary • Fixed by law or by contract to remunerate the main activity of the employee • Payment not subject to discretion by the employer • Not linked to a specific project Examples: 13 th month, hazardous work allowance, etc. Hourly rate Disclaimer: Information not legally binding Additional remuneration Other bonuses • Only eligible for nonprofit legal entities • Subject to specific eligibility criteria • Maybe triggered by the participation in a specific project

Actual personnel costs: calculation - I Actual Personnel Cost = Hours worked for the project x Hourly rate where Hourly rate = Annual personnel costs Annual productive hours The hourly rate is to be calculated per financial year If the financial year is not closed at the time of reporting, the beneficiary must use the last closed financial year available. Disclaimer: Information not legally binding

Actual personnel costs: annual productive hours 1720 hours • Formula: annual Individual annual workable hours + overtime productive hours absences Standard annual productive hours • According to the beneficiary's usual accounting practices; Minimum threshold: annual productive hours ≥ 90 % of the standard workable hours Disclaimer: Information not legally binding

Amendments - Article 55 GA Modification of GA terms and conditions • Unless the decision awarding the grant called in question • The amended text becomes an integral part of the GA • All other provisions remain unchanged Prepared electronically • Requesting party will encode the amendment request • Submitted & signed electronically (PLSIGN) • Counter signed electronically (PLSIGN) Disclaimer: Information not legally binding

Examples Change of name or address of a coordinator vs. update of beneficiaries' data in the Participant portal Changes to Annex 1: a significant change of the action tasks; changes concerning in-kind contributions or subcontracts Changes to Annex 2 = estimated budget: form of costs that is not in Annex 2, . . Removal of a beneficiary for non-accession to GA Change of beneficiary due to universal takeover Disclaimer: Information not legally binding

IP rights – https: //www. iprhelpdesk. eu/ ACCESS RIGHTS • Beneficiaries must provide rights to use their IP, if necessary for TO BACKGROUND implementation • In Consortium agreement (CA) OWNERSHIP OF RESULTS • In general rule, owned by the beneficiary that generates them PROTECTION OF RESULTS ACESS RIGHTS TO RESULTS • Each beneficiary must examine the possibility of protecting its results and adequately protect them • If necessary for implementation • Written request for access and/or CA Disclaimer: Information not legally binding

Controls and audits: ex-ante Financial viability CONTROLS ] Most beneficiaries exempt from detailed analysis; only systematic check for coordinators when requested EU funding for the action is ≥ EUR 500 000 AND Certificates AUDITS ] Certificate on the financial statements: Only for final payments when total EU contribution claimed by the beneficiary on the basis of actual costs + unit costs for average personnel ≥ EUR 325. 000 ( ! excluding e. g. flat rates !) ] Certificate on the methodology: Optional for average personnel costs (now under unit costs) Disclaimer: Information not legally binding

Controls and audits: ex-post Ex-post audits ]Audits of the Commission limited to five years after the payment of the balance. ]The beneficiary must — for a period of five years after the balance is paid — keep adequate records and supporting documentation Extension of audit findings ] Former "extrapolation" (FP 7) now included in the MGA ] In the case of systemic or recurrent errors, irregularities, fraud or breach of obligations Disclaimer: Information not legally binding

ADDITIONAL INFO: Participant Portal At: http: //ec. europa. eu/research/participants/portal/desktop/en/home. html Horizon 2020 Documents http: //ec. europa. eu/research/participants/portal/desktop/en/funding/reference_docs. html Horizon 2020 Annotated Model Grant Agreement http: //ec. europa. eu/research/participants/data/ref/h 2020/grants_manual/amga/h 2020 amga_en. pdf Horizon 2020 On-line Manual http: //ec. europa. eu/research/participants/portal/desktop/en/funding/guide. html# Questions? Research Enquiry Service http: //ec. europa. eu/research/enquiries Disclaimer: Information not legally binding

HORIZON 2020 Thank you for your attention! Find out more: http: //ec. europa. eu/programmes/horizon 2020/