Kick-Off Meeting in Geneva: Budget and Finances Slide 2 22.04.2007
Budget and Finances
• Outline1. General funding principles
2. Cost structure
3. Payments and distribution of funds
Kick-Off Meeting in Geneva: Budget and Finances Slide 3 22.04.2007
1. General funding principles
• Eligible costs of the project• Actual, economic, necessary• Determined, recorded and audited according
to accounting rules of the contractor• Incurred within duration of the project (except
for costs related to preparation of the final report)
• Reimbursement on the basis of actual costs (expenses), allowances, flat rate
Kick-Off Meeting in Geneva: Budget and Finances Slide 4 22.04.2007
1. General funding principles
• Non-eligible costs• Indirect taxes (e.g. VAT, duties)• Interest owed• Provisions for possible future losses or charges• Exchange losses• Costs related to return on capital• Debt and debt service charges• Costs declared, incurred or reimbursed in respect of
another Community project
Kick-Off Meeting in Geneva: Budget and Finances Slide 5 22.04.2007
1. General funding principles
Definition Receipts• Receipts are transfers (financial, in kind) from third
parties to the contractor• Income generated by the project• Interests yielded through Commission funding
Receipts• Community financial contribution cannot give rise to
any profit for the contractors.• (Eligible costs – receipts for the projects) ≥
Community financial contribution
Kick-Off Meeting in Geneva: Budget and Finances Slide 6 22.04.2007
Budget and Finances
• Outline1. General funding principles
2. Cost structure
3. Payments and distribution of funds
Kick-Off Meeting in Geneva: Budget and Finances Slide 7 22.04.2007
2. Cost structure
max. 10% of direct
costs
max. 7% of total eligible costs
Minimum 65% of total eligible costs
OverheadManage-ment
expenses
Research training /
Transfer of Know-
ledge(ToK)
Participation expen-
ses
Career explora
-tory allow.
Mobility allow.
Travel allow.
Monthly living
allowan-ce
Contribution to the benefit of the contractors
Contribution to the benefit of the researcher
Eligible costs of the project
Kick-Off Meeting in Geneva: Budget and Finances Slide 8 22.04.2007
2. Cost structure
• Contribution to the benefit of the researchers (fellows):• Monthly living allowance (basic salary according to
Marie Curie rates x country coefficient)• Travel allowance (paid once in 12 months according
to distance to home destination)• Mobility allowance (monthly supplement to basic
salary, 500/800€ × country coefficient)• Career exploratory allowance (one-off payment of
2,000€ if contract exceeds 12 months)
Kick-Off Meeting in Geneva: Budget and Finances Slide 9 22.04.2007
2. Cost structure
• Contribution to the benefit of the researchers (fellows) - Participation expenses
• Expenses incurred by/for the researchers• Calculated on the basis of 400€ per person-month• Administered by the host institution
(NOT directly paid to the researcher!)• Paid according to the actual cost incurred • For the purpose of training, networking, ToK
Kick-Off Meeting in Geneva: Budget and Finances Slide 10 22.04.2007
2. Cost structure
• Contribution to the benefit of the contractors (partners):• Research-, training-, ToK-expenses
• Expenses incurred by the host institutions• For the purpose of supporting
• The organisation as well as the implementation of the project (e.g. consumables, exchange of material etc.)
• The participation of the non-appointed researchers from the network teams in the networking and ToK activities
Kick-Off Meeting in Geneva: Budget and Finances Slide 11 22.04.2007
2. Cost structure
• Management expenses• Maximum of 7% of the total budget• Paid towards the management of the project and
the expenses related to the auditing of the financial reports of the RTN
Kick-Off Meeting in Geneva: Budget and Finances Slide 12 22.04.2007
2. Cost structure
• Overhead• Flat rate payment of 10% of the direct costs (i.e. costs
that can be identified by each contractor in accordance with its accounting system, can be attributed directly to the project and satisfy certain criteria) excluding costs of subcontracting
Kick-Off Meeting in Geneva: Budget and Finances Slide 13 22.04.2007
2. Cost structure
max. 10% of direct
costs
max. 7% of total eligible costs
Minimum 65% of total eligible costs
OverheadManage-ment
expenses
Research training /
ToK
Participation expen-
ses
Career explora
-tory allow.
Mobility allow.
Travel allow.
Monthly living
allowan-ce
Contribution to the benefit of the contractors
Contribution to the benefit of the researcher
Eligible costs of the project
Kick-Off Meeting in Geneva: Budget and Finances Slide 14 22.04.2007
2. Cost structure
• Expenses for ESR and ER (Example)• Assuming one single ESR from Denmark and one
married ER from Spain for the JLU in Giessen• The Correction coefficient for Germany is 103.8%
(or 1.038) for both fellows• The fixed-amount contributions for the travel
allowances based on the direct distance are 500€ (Denmark) and 750€ (Spain)
Kick-Off Meeting in Geneva: Budget and Finances Slide 15 22.04.2007
2. Cost structure
• Expenses for ESR and ER (Example) - cont’d• Expenses for the benefit of the ERS and ER
Monthly living allow.
Travel allow.
Mobility allow. Career expl. allow.
Partici-pation
expenses
Total
ESR
3 years × 30,550 € × 1.038 = 95,133 €
3 years × 500 € = 1,500 €
36 months × 500 € × 1.038 =
18,684 €
2,000€ 36 months × 400 €
= 14,400 €
129,717 €
ER 3 years × 47,000€ × 1.038 = 146,358 €
3 years × 750 € = 2,250 €
36 months × 800 € × 1.038 =
29,894 €
2,000€ 36 months × 400€
= 14,400€
194,902 €
Kick-Off Meeting in Geneva: Budget and Finances Slide 16 22.04.2007
2. Cost structure
max. 10% of direct
costs
max. 7% of total eligible costs
Minimum 65% of total eligible costs
OverheadManage-ment
expenses
Research training /
ToK
Participation expen-
ses
Career explora
-tory allow.
Mobility allow.
Travel allow.
Monthly living
allowan-ce
Contribution to the benefit of the contractors
Contribution to the benefit of the researcher
Eligible costs of the project
Kick-Off Meeting in Geneva: Budget and Finances Slide 17 22.04.2007
2. Cost structure
• Financing of a workshop (Example)
Workshop in Essex
(ESR from Klagenfurt, ESR & ER from Giessen)
Researchers
Partners (Team members)
Travelling, accommodation, conference fee
Budget Essex
Research, training,
ToK
Participation expenses
Budget Klagenfurt
Budget Giessen
Kick-Off Meeting in Geneva: Budget and Finances Slide 18 22.04.2007
2. Cost structure
• Expenses for training and ToK - Budget (Example)• Essex organizes a tutorial (T1) and a workshop (WS),
Giessen - a tutorial (T2), and Berlin - a summer school (SS)
• For each event, each organizer has to cover the costs for research, training, ToK including participation expenses for team members (not fellows)
• Participation expenses of the fellows are born by each participant (i.e. eligible researcher)
Kick-Off Meeting in Geneva: Budget and Finances Slide 19 22.04.2007
2. Cost structure
• Expenses for training and ToK - Budget (Example) – cont’d
Partici-pants
Costs per person and day
Days Travel expen-ses per person
Semi-nar
room
Invited speakers
Elig. resear-chers
Team mem-bers
Participa-tion
expenses
ToK, etc.
Total costs
T1-T2 8 150.00€ 3 500.00€
200.00€
1,500.00€ 5 3 4,750.00€ 4,550.00€
9,300.00€
WS 7 130.00€ 2 500.00€
300.00€
3,000.00€ 4 3 3,040.00€ 5,580.00€
8,620.00€
SS 5 120.00€ 4 500.00€
600.00€
750.00€ 4 1 3,920.00€ 2,330.00€
6,250.00€
Kick-Off Meeting in Geneva: Budget and Finances Slide 20 22.04.2007
Budget and Finances
• Outline1. General funding principles
2. Cost structure
3. Payments and distribution of funds
Kick-Off Meeting in Geneva: Budget and Finances Slide 21 22.04.2007
3. Payments and distribution of funds
• Distribution of funds• Community financial contribution is paid to the co-
ordinating institution (i.e. JLU Giessen)• Co-ordinator distributes the funds to partners without
unjustified delay• Distribution of funds to partners is conducted
according to CPF (Contract Preparation Forms) or other internal agreements. The Commission is to be notified and to approve any major changes to the original budget breakdown
Kick-Off Meeting in Geneva: Budget and Finances Slide 22 22.04.2007
3. Payments and distribution of funds
• Payment modalities• Pre-financing (initial as well as periodic) consists of
80% of the total budget for subsequent 18 months according to CPF budget planning or to financial planning in the periodic management report
• Initial pre-financing • Periodic payments
• Within 45 days after approval of the periodic report• Based on pre-financing for the upcoming (next) reporting
period (adjusted for amounts accepted for respective period)
Kick-Off Meeting in Geneva: Budget and Finances Slide 23 22.04.2007
3. Payments and distribution of funds
• Payment modalities• Periodic payments (Example 1)
• Initial pre-financing for reporting period 1: 1,000,000€
• Accepted costs for reporting period 1: 400,000€• 600,000 € not spent• Planned pre-financing for period 2: 1,200,000€• Effective pre-financing for period 2: 600,000€ =
1,200,000€ - 600,000€
Kick-Off Meeting in Geneva: Budget and Finances Slide 24 22.04.2007
3. Payments and distribution of funds
• Payment modalities• Periodic payments (Example 2)
• Initial pre-financing for reporting period 1: 1,000,000€
• Accepted costs for reporting period 1: 1,200,000€• 200,000 € overspent• Planned pre-financing for period 2: 1,200,000€• Effective pre-financing for period 2: 1,400,000€ =
1,200,000€ - (-200,000)€
Kick-Off Meeting in Geneva: Budget and Finances Slide 25 22.04.2007
3. Payments and distribution of funds
• Payment modalities• Periodic payments
• Total amount of pre-financing cannot exceed 80% of Community financial contribution (i.e. total budget for the respective period)
• Final payment• Within 45 days after approval of the final report
Kick-Off Meeting in Geneva: Budget and Finances Slide 26 22.04.2007
3. Payments and distribution of funds
• 70% rule• Only applies to periodic reports submitted without
audit certificates• If less than 70% of pre-financing is spent in the
reporting period, then NO pre-financing for the subsequent reporting period!
• Unless:• A complementary management report is provided once 70%
of pre-financing has been spent• or audit certificates (provided by each partner) are submitted
for the reporting period we should use the second option.
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