Brussels, February 2011 ITN Coordinators’ meeting ITN 2010 Finance and Budget Research Executive Agency Marie Curie host-driven actions
Financial Management of ITN Projects 1. The EU contribution – The cost categories – The records you need to keep for each category – FAQs for each cost category – Non-eligible costs – Subcontracting 2. The project lifecycle – The timing and types of payments throughout your ITN project – The Guarantee Fund 3. Financial reporting – Rules for reporting – Exchange rates – Certificates on Financial Statements
The EU Contribution
Maximum EU Financial Contribution Where is it recorded? • Article 5 of the Core Grant Agreement • Part 10 (Table of costs per year) of Annex 1 • Forms A3.3 of the GPF – contribution calculated per participant • Form A3.2 of the GPF – total contribution Can It Change? Amounts are indicative – ie costs claimed during the project can be lower – maximum EU contribution cannot be increased.
… Maximum EU Financial Contribution What are the general rules for the costs? • Defined by the cost categories. • Basic principles: Grant Agreement Article II.14.1: – Actual costs, however People programme includes the possibility of flat rate costs – Incurred costs & only during project duration • with the exception of costs for final reports, last period reports, certificates on the financial statements when requested at the last period – Related to objectives of the project – Economic, efficient and effective – Recorded in accounts of beneficiary in accordance with the usual accounting rules of the beneficiary • Maximum of 40% of the EU contribution to any one country in the network
What does the EU Contribution consist of? Fellows • Living allowance (salary) • Mobility allowance • Travel allowance • Career Exploratory allowance • Contribution to research and training costs Networking • Contribution to networking costs and the organisation of external events as well as costs for executing the project Project Management • Costs associated with the ITN project reporting requirements Overheads
What does the EU Contribution consist of? Fellows • Living allowance (salary) Cost Category A • Mobility allowance Cost Category A • Travel allowance Cost Category B • Career Exploratory allowance Cost Category C • Contribution to research and training costs Cost Category D Networking • Contribution to networking costs and the organisation of external events as well as costs of execution of the project Cost Category E Project Management • Costs associated with the ITN project reporting requirements Cost Category G Overheads Cost Category H
• Eligible expenses for the activities carried out by the host organisations charged to Category E • Category F no longer applicable.
Living Allowance – Cost Category A For Whom? • Fellows recruited to the ITN project Employment Contract or Stipend? • Fellows should always be paid with employment contract unless not possible due to national legislation. – Stipend should only be used with prior consent of the Project Officer What does it include? • Monthly salary for the fellow before any deductions: – both employers and employees contributions to social security, pension, taxation, voluntary deductions What about the salary of the coordinator and project manager? • This is not eligible in category A, it will be discussed again later in the presentation
…Living Allowance – Cost Category A How Much? • Depends on 3 factors 1. level of experience: • Early-stage researcher; • Experienced researcher with 4-10 years experience; • Experienced researcher with > 10 years experience 2. type of contract : employment contract (Type A) or stipend (Type B) 3. Country Correction Coefficient (in Work Programme 2010 and Annex 1) How is the monthly salary calculated? • By multiplying the annual base rate by the correction coefficient and dividing by 12 What are the base rates? Researcher Type Type A (€/year) Type B (€/year) Early-stage researcher 36 700 18 350 Experienced researcher 4-10 years 56 400 28 200 Experienced researcher > 10 years 84 500 42 250
… Living Allowance – Cost Category A Can we pay the fellow less? • NO – this would be considered a breech of the conditions of the Grant Agreement Can we pay the fellow more? • Yes BUT you cannot charge it to the project – you must pay it from other funds (e.g. top up to national level) What if the fellow changes level of experience during the project? • The fellow is always paid at the level correct for the time of recruitment to the project Can we pay less at the beginning and more at the end to allow for pay increases? • Yes this is allowed, however the fellows must receive the full amount owed to them by the end of their time as a Marie Curie fellow • It must be clearly stated in the contract with the fellow and also clearly described in the reports We operate on a 13 month pay regime, can we use this for the fellows? • Yes, provided the fellow recieves the full amount owed and it is clearly stated in the contract with the fellow and the reports
… Living Allowance – Cost Category A What records do we need to keep for EU audit purposes? • Proof of payment of the salary to the fellow and of the deductions for social security etc • Employment contract/agreement with the fellow • Evidence that the fellow worked on the project: this can include lab books, conference abstracts, library records, etc • Evidence of the eligibility of the fellow Is the fellow obliged to keep timesheets? • NO, time sheets are not an obligation for the Marie Curie Fellows. However, if this is required across the institute then the fellow can also be asked to complete them Do we always pay the fellow in Euros? • The fellow should be paid in the local currency
Mobility Allowance – Cost Category A For Whom? • All recruited fellows How Much? • Depends on 2 factors – Family status of the fellow: • Family = persons linked to the researcher by (i) marriage, or (ii) a relationship with equivalent status to a marriage recognised by the national legislation of the country of the host organisation or of the nationality of the researcher; or (iii) dependant children who are actually being maintained by the researcher. • Family – base rate = €800 per month • No family – base rate = €500 per month – Country Correction Coefficient How is the monthly mobility allowance calculated? • By multiplying the base rate by the correction coefficient
…Mobility Allowance – Cost Category A Is the mobility allowance taxed? • It depends on local taxation rules • Some institutes operate this as a ‘virtual real cost’ category. This means that fellows can submit receipts for rent, household bills etc which can be used to grant partial exceptions from tax. What records do we need to keep for EU audit purposes? • Same as for living allowance i.e.: – Proof of payment of the salary to the fellow and of the deductions for social security etc – Employment contract/agreement with the fellow – Evidence that the fellow worked on the project: this can include lab books, conference abstracts, library records, etc – Evidence of the eligibility of the fellow What if the family status changes during the project? • The mobility allowance is calculated for the family status at the time of recruitment to the project
Travel Allowance – Cost Category B For Whom? • All fellows receiving a mobility allowance How Much? • Fixed amount based on the direct distance (in a straight line) between the place of origin and the host institution of the fellow • One payment for every period of 12 months or less (i.e. when the first or last period is less than 12 months). What are the fixed amount rates? Distance (km) Fixed-amount contribution (EUR) < 500 250 500 – 1 000 500 1 000 – 1 500 750 1 500 – 2 500 1 000 2 500 – 5 000 1 200 5 000 – 10 000 2 000 >10 000 2 500
…Travel Allowance – Cost Category B What is the place of origin? • the place where the fellows were residing or carrying out their main activity when taking up appointment at the time of recruitment to the project • BUT if the fellows have resided or carried out their main activity for less than 12 months in this location immediately prior to this date the location of origin is the capital city of the country of his/her nationality. – In case of a researcher holding more than one nationality, the location of origin is the capital city of the country where the researcher was residing for the longest period in the 5 years prior to their appointment. Do we always pay the fellow in Euros? • The fellow should be paid in the local currency Can the travel allowance pay for costs of travel to conferences etc? • No, it is for the personal use of the fellow
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