LUMP SUM GRANT AGREEMENT UNICA 13 th EURLO MEETING Rome, October 22 nd 2018

Transcription

1 LUMP SUM GRANT AGREEMENT UNICA 13 th EURLO MEETING Rome, October 22 nd 2018 Sabrina BOZZOLI International Research Division - UNIVERSITY OF ROME TOR VERGATA

2 LUMP SUM GRANT: WHY? Funding based on reimbursement of incurred costs requires extensive financial reporting and is prone to error. Lump sum funding provides considerable simplification potential. removes all obligations on cost reporting (e.g. the need for timesheets and for financial ex-post audits) shifts the focus on financial management and checking costs to the scientific-technical content of the projects Lump Sum Pilot is one of the main elements of the second wave of simplification of H2020

3 LUMP SUM GRANT: INTRODUCTION The grant agreement will set out the lump sum (EU funding) corresponding to the full accomplishment of the work committed in Annex 1. The lump sum for the grant is set out at its signature, the costs actually incurred are not relevant. 3

4 LUMP SUM GRANT: TWO OPTIONS AMOUNT OF THE LUMP SUM PER PROJECT, fixed in the Call DEFINED BY APPLICANTS in the proposal 4

5 LUMP SUM GRANT: OPTION 1 THE LUMP SUM PER PROJECT IS FIXED BY THE COMMISSION IN THE WORK PROGRAMME Proposals describe the efforts and resources that the applicants commit to mobilize for the pre-defined lump sum amount. Applicants must also provide the proposed split of the lump sum per work package and per beneficiary. Proposal evaluation ensures that an appropriate level of resources is committed. PILOT TOPIC 2018: Digital plug and produce on-line equipment platforms for manufacturing [DT-NMBP ]

6 LUMP SUM GRANT: OPTION 2 THE LUMP SUM IS DEFINED BY APPLICANTS IN THEIR PROPOSAL Applicants propose a lump sum based on a detailed estimation of costs (personnel, travel, equipment, consumables, other goods and services, etc ). Following evaluation of the proposal and taking into account expert advice, an individual lump sum is fixed in each grant agreement. PILOT TOPIC 2018: New anti-infective agents for prevention or treatment of neglected infectious diseases [SC1-BHC ]

7 LUMP SUM GRANT: BUDGET ALLOCATION ANNEX 2 - GA CONSORTIUM JOINTLY LIABLE FOR IMPLEMENTATION!!! FINANCIAL LIABILITY of beneficiaries limited to their EU contribution WP1 WP2 WP3 WP4 WP5 WP6 WP7 WP8 Total Beneficiary A Beneficiary B Beneficiary C Beneficiary D Tot Share of the lump sum per WP LUMP SUM= Maximum grant amount 7

8 LUMP SUM GRANT: HOW MANY WPS? As many as needed but no more than what is manageable Work package means a major sub-division of the proposed project A single activity is not a WP A single task is not a WP A % of progress of work is not a WP (e.g. 50 % of the tests) A lapse of time is generally not a WP (e.g. activities of year 1) WP Management may be a special case WP 4 WP 1 WP 2 WP 3 8

9 PAYMENTS (pre-fin., interim, PoB) LUMP SUM GRANT: DISTRIBUTION OF FUNDS Beneficiary C Beneficiary D Coordinator Beneficiary B! Distribution of funds does not impact on financial liability set in Annex 2 9

10 1 0 LUMP SUM GRANT: BUDGET TRANSFERS! All budget transfers require an amendment WP1 WP2 WP3 WP4 WP5 WP6 WP7 WP8 Total Beneficiary A Beneficiary B Beneficiary C Beneficiary D Total Transfer of budget between Work Packages only acceptable if: Work Packages not already completed (and declared) Justified by the technical and scientific implementation of the action A review confirms that it does not call into question the decision awarding the grant or breach the principle of equal treatment

11 Pre-financing payment Interim payment(s) Payment of the balance LUMP SUM GRANT: PAYMENTS Same functioning that in the general MGA Coordinator distributes the amount according to consortium agreement One or more Pay the shares of the lump sum set out in Annex 2 for the WPs completed & approved in the reporting period Closes the financial aspects of the grant Uncompleted WPs will (generally) NOT be paid Releases the guarantee fund

12 Tasks Beneficiary A Tasks Beneficiary B Tasks Beneficiary D LUMP SUM GRANT: FINANCIAL REPORTS Each beneficiary declares it share of the lump sum allocated to Work Packages fully completed in the reporting period 100 % 100 % 65 % WP 8 NOT fully completed Work Package 8

13 LUMP SUM GRANT: INTERIM PAYMENTS Sum of the shares of the lump sum allocated to Work Packages fully completed in the reporting period WP1 WP2 WP3 WP4 WP5 Beneficiary A Beneficiary B Beneficiary C Annex 2 Beneficiary D Tot WP1 WP2 WP3 WP4 WP5 Beneficiary A Completed Initiated Initiated Beneficiary B Completed Completed Not initiated Beneficiary C Completed Not initiated Not initiated Beneficiary D Completed Completed State of play at the end of the reporting period X X

14 LUMP SUM GRANT: BENEFICIARY TERMINATION PARTICIPATION OF A BENEFICIARY IS TERMINATED: 1. Contradictory procedure with the beneficiary about the shares of the lump sum approved by the Commission. Only shares for WPs in which it has completed its tasks may be approved. 2. Amount approved> payments from coordinator? If YES = coordinator pays the difference If NOT= beneficiary repays to coordinator If beneficiary does not repay Guarantee fund pays Coord. Partne r

15 LUMP SUM GRANT: PAYMENT OF THE BALANCE All work completed as indicated in Annex 1: The Commission pays the remaining amount up to the total lump sum (and releases the Guarantee Fund) Some WP not completed as indicated in Annex 1: WP rejected (in full or in part) Grant reduced Consortium loses the share allocated to that WP The Guarantee Fund does NOT intervene

16 LUMP SUM GRANT: EX POST CONTROLS CHECKS, REVIEWS & AUDITS only on proper implementation of the action and compliance with GA obligations You need Technical documents Publications, prototypes, deliverables Who did what? any document proving that the work was done as detailed in Annex 1 You don't need Time-sheets Pay-slips or contracts Depreciation policy Travel invoices.actual costs

17 ERC PROOF OF CONCEPT AND THE LUMP SUM PILOT Proof-of-Concept (PoC) picked for pilot because PoC projects are focused, short-term and predictable Fixed lump sum of , applicants cannot request lower amounts Each PoC grant is considered as one single activity Applicants to provide a description of resources planned for implementation of proposed projects Evaluation experts asked to assess whether resources described in the proposal are appropriate for project implementation Payment not linked to actual costs: if project is implemented properly payment is due in full "regardless of the costs actually incurred" For multi-beneficiary grants, applicants need to provide a breakdown of the shares of the costs incurred by each partner mga-erc-poc-lumpsum-pilot_en.pdf

18 THANKS FOR YOUR ATTENTION