FP6 Financial Guidelines New Issues

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The following results have been officially published by the European Commission on Cordis News (www.cordis.lu), in the magazine Cordis Focus and in a special webpage http://europa.eu.int/comm/research/fp6/firstcallresult_en.html 

The following analysis is done to highlight the issues described in the training course and book on:
How to Write a Competitive Proposal for Framework 6 www.hyperion.ie/proposalhandbook.htm

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Cost Models used in CRAFT and Collective Research Specific Research Projects for SMEs

“Although the RTD performer in a cooperative or collective research project for SMEs normally works on Community research using the AC model, it may exceptionally for these projects use the FC model (if it can calculate its full direct costs)

CRAFT (point III.4)

“ any RTD performer that is eligible to use the AC reporting may opt for the FCF reporting model in this contract…”

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Collective Research (Point III.4)

“ any RTD performer that is eligible to use the AC reporting   may opt for the FCF reporting model in this contract…”

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Calculation of Indirect Costs (Overhead)

  (2.2.2 Indirect eligible costs)

“They are determined in accordance with the accounting principles of the contractor and are in direct relationship with the direct eligible costs of the project.”

(2.2.2 Indirect eligible costs)

“Different methods and keys may be used for the distribution of the indirect eligible costs, in compliance with the usual accounting principles of the participant. However it must be noted that :


No subjective or arbitrary keys can be accepted.


Participants charging actual indirect eligible costs (FC) will have to an audit.”

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(6.1.4 Subcontracting)

“Whatever the cost model used, indirect costs can not be based on direct eligible  costs of subcontracts.”

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EU Contribution for Integrated Infrastructure Initiatives Integrated Infrastructure Initatives

  “ The maximum reimbursement rates of eligible costs under the specific activities of an I3 or an SSA aimed at improving connectivity services are not equal to 100% but to 50% irrespective of which cost reporting model (FC, FCF or AC).  Refer to Article III.15 of the General Conditions.  

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Networks of Excellence Grant for Integration

  “ for a Network of Excellence, the Community financial contribution could reimburse up 100% of the eligible costs incurred by the participants, whatever the cost model they use, but the eligible costs must be greater than the maximum Community financial contribution established in the contract.”

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Auditing of Subcontractors The particular case of subcontracting.

  “ Contractors shall ensure that the rights of the Commission and the Court of Auditors to carry out audits are extended to the right to carry out any such audit or control on any subcontractor or third party whose costs are reimbursed in full or in part by the Community financial contribution, on the same terms and conditions as indicated in this Article.”  

(Article II.29 of the General Conditions of the Model Contract)

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Non-R&D Partners in Contract

  2.3.1 R&D Activities

“ In addition, innovation activities can cover activities carried out by ‘organisations that possess specific competence in management, dissemination and transfer of knowledge ‘ which are allowed to participate in FP6 projects, even if they do not carry our any R&D activity.”

2.3.3 Training Activities

“Training also covers activities carried out by specialist training organisations which may participate in FP6 projects as contractors, even if they do not carry our specific RTD tasks.”

2.3.4 Management Activities

“ Management of the consortium activities also covers activities carried out by organisations specialised in project management which are allowed to participate in FP6 projects, even if they do not carry out RTD tasks.”

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Cost Models in Coordination Actions and Specific Support Actions

  2.4.6 Limitations of actual indirect costs…

  “ For Coordination Actions (CA) and Specific Support Actions (SSA), contractors using the full cost model (FC) may not claim their actual indirect costs.

“in these instruments a flat rate deemed to cover eligible indirect costs is applied for all contractors. This flat rate is fixed at 20% of direct eligible costs (for AC contractors, their direct additional eligible costs) minus direct eligible costs of subcontractors)

Article II.25.2 of Annex II (General Conditions) of the Model Contract

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Irregularities by a Contractor

  5.2.3 Exclusion - irregularity

  “Where a contract has already been signed with a contractor who then commits an irregularity, the Commission may immediately exclude that contractor from the contract. Such a contractor can also be excluded from all other contracts in which it is involved with the Commission”

  “Irregularity means any infringement of a provision of Community law or any breach  of a contractual obligation resulting from an act or omission by a legal entity which has, or would have, the effect of prejudicing the general budget of the European Union or budgets managed by it through unjustified expenditure.”

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Length of Reporting Periods

“If the last reporting period is less than or equal to six months, it must be added to the penultimate reporting period. This means that the last period will be greater than 12 months and less than or equal to eighteen months.”  Additional Reports

“ Integrated Projects and Networks of Excellence must also provide an action plan for the promotion of gender equality within the project (as part of the overall implementation plan or joint programme of activities) and report on its progress at regular intervals and at the end of the project.”

“ In addition,  as for all instruments, each consortium must report on the actions it has taken to engage with the public to help spread awareness and the results of the project.”

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Collective Responsibility: The case of a defaulting public organisation

  5.1.6 Implementation of financial collective responsibilities

  When the contractor “ is a contractor whose participation to the indirect action is guaranteed by a Member State or an Associated State (=public body).”

“In the above case, the debt of this defaulting contractor is not allocated among the remaining contractors. Such a defaulting contractor is solely responsible for its debts and any guarantees established by the Member State or Associated State may be called upon.”

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Limitation of Liability

This webpage has been designed to help researchers prepare their proposals for the Sixth Framework Programme. It is done as a follow-up to the Training Course: How to Write a Competitive Proposal for Framework 6 ( www.hyperion.ie/fp6proposalcourse.htm   )

Every effort has been made to ensure complete and accurate information concerning the material presented in this webpage. However Hyperion Ltd cannot be held legally responsible for any mistakes in printing or faulty instructions contained within the templates. The authors appreciate receiving notice of any errors or misprints.

There are no warranties, expressed or implied, including warranties of merchantability or fitness for a particular purpose, made with respect to the materials or any information provided to the user herein. Neither the author nor publisher shall be liable for any direct, indirect, special, incidental or consequential damages arising out of the use or inability to use the contents of this webpage.