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Frequently Asked Questions (FAQ) - FP7 Financial issues

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This depends on the type of project and kind of organization ( SMEs, Universities, and/or others…) Please refer to the guidelines and Participant portal

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The magnitude of research funding is usually specified by topic. It depends on the type of projects. Large, medium/small collaborative projects are from € 3 mil up to € 12 mil , the same for NoE

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The key question is if the cost is a subcontract. If the services in question are a subcontract then the subcontract can not be taken into account when calculating overheads. The classification of the services depends on their character.

 

Some costs incurred in relation to organisation of the meeting may be considered as subcontracting (e.g. catering services provided by an external company) whereas others (renting the rooms directly in a hotel) would not fall within this category. ln this sense remember that subcontracting is a business transaction by which the subcontractor performs some work for a beneficiary.

 

Subcontracting costs are direct costs. Whether major or minor costs, they have to be identified by beneficiaries in the financial statement form (Form C, Annex VI to GA). In any case, they should be reported as subcontracting (if you are paying for a service; the difference is that the GA allows that these minor subcontracts do not previously appear in the Description of work of the project, As subcontracts, they are a cost to a beneficiary for a work/service which is performed by a third party and not by the beneficiary, and therefore indirect costs can not be charged by the beneficiary on them; in this cases, the indirect costs are already covered by the price paid by the beneficiary to the subcontractor. The same rules for subcontracting apply to all projects, including CSA.

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If you use the flat-rate, overheads do not need to be justified. If effectively money is left over after covering your overhead this can be used any way. This of course does not apply if you calculate the actual costs!

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It does not necessarily depend on the time if someone will be regarded as a subcontractor or as a real partner. It depends on the task one has in a FP7 project. Subcontracting is limited to side-tasks which are not central and crucial for development of the project.

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You only have to show the 3 offers in case of a second level audit by the Commission which can be done up to 5 years after the end of the project (good project documentation is needed!).

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In our project we need to follow the progress of patients from different wards, GPs, home nursing organisations. They need to all fill-out a questionnaire and need to have their costs covered for this. Classical sub-contracting. There will be many (up to hundreds) of different organisations. We can't have a contract with them exactly, nor can we write out a call for the sub-contracting. What do we need to watch out for to ensure we follow the EU rules for sub-contracting?

In this case there should be a detailed description of the necessity of these people working in the project under Subcontracting in Annex I GA /DoW – this should be discussed with the PO/FO in detail as well as the costs.

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Daily allowances are accepted by the commission if they are part of your normal operating accounting principles (“usual practice”).

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In principle yes, when the cost cover flights and hotel fees as well as daily allowances only. It is always recommended to get a confirmation from your SO in advance. If it will be a substantial part of the project budget you should think about subcontracting.

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Here the internal rules of your organisation apply. As the salary has to be according to the usual practice of the beneficiary it is always very problematic to get an EU-project bonus because this cannot be reimbursed in the project. If the top-up corresponds to more hours work for the beneficiary there is no problem – national labour law is the limit here.