Bridge2HE: A transition from

H2020 to HorizonEurope for NCPs

FINANCIAL RULES FOR THE

APPLICATION PHASE IN
HORIZON EUROPE
Online Training
27th April 2021
 YOUR HOSTS

Martin Baumgartner
NCP Legal & Financial Aspects
martin.baumgartner@ffg.at

Tamara-Katharina Mitiska
NCP Legal & Financial Aspects
tamara-katharina.mitiska@ffg.at

Austrian Research Promotion Agency (FFG)

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 SERVICES OF FFG

• Consultation service via eMail, phone, (online)

meeting

• Information service via homepage, events,

newsletter, info sheets

• Training service via FFG Academy

• Centralised National Contact Point (one-stop-shop)

(27/04/2021)
 BRIDGE2HE
Bridge2HE is the follow-up project to the NCP Academy and is
intended as a bridge project to ensure the transfer of NCP
project networks from Horizon 2020 to Horizon Europe.

Targets:
• Maintain continuity with current NCP structures and network
coordination.
• Integration of NCP networks under a common HE NCP portal.

Added Value:
• Trainings for NCPs
• Development and provision of materials and service
concepts for NCP work
• Support for applicants, brokerage events
• Optimisation and adaptation of NCP networks to HE

(27/04/2021)
 AGENDA

09:50 Connection start

10:00-10:10 Welcome and introduction

10:10-11:45 Forms of Costs – Part 1

11:45-12:00 Coffee Break

12:00-12:40 Forms of Costs – Part 2

12:40-13:00 General Information and Eligibility Criteria

13:00 End of event

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FORMS OF COSTS – PART 1

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 IMPORTANT INFORMATION/DISCLAIMER

The “Annotated Model Grant Agreement” has not

been published yet.
The “Model Grant Agreement” has been published
so far as a draft.

All information in this presentation is

subject to change.

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 COSTS IN THE PROPOSAL TEMPLATE

Form A (tables) Form B (description)

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 BUDGETING vs. REPORTING

≠ ≠
Budget Plan – Paying Expenses – Claiming Costs

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BUDGET CATEGORIES OF THE PROPOSAL TEMPLATE

Other sources of
financing
Income
Funding rate

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E. Indirect costs
D. Other cost
categories

Total costs
C. Purchase costs
(travel; equipment;
other goods, works and
services)
B.
Subcontracting
A. Personnel
costs
BUDGET CATEGORIES OF THE PROPOSAL TEMPLATE

D.7 + D.8 ERC

(additional funding)
D.6 Euratom
Cofund (staff
mobility costs)

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D.5 PCP/PPI
D.3 + D.4
Transnational /
Virtual access to
research
infrastructure
D.2 Internally
invoiced goods and
services
D.1 Financial
support to third
parties
A. PERSONNEL COSTS

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E. Indirect costs
D. Other cost
categories
C. Purchase costs
(travel; equipment;
other goods, works and
services)
B.
Subcontracting
A. Personnel
costs
 A. PERSONNEL COSTS

Part B, Section 3.1, Table 3.1f: “Summary of staff effort”

• rough/generous estimate  average costs of

planned project personnel
• scope for pay increase!
• planning with person months:

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 A. PERSONNEL COSTS

A.1 Costs for employees (or equivalent)

A.2 Costs for natural persons working under a direct
contract
• no employment contract!
A.3 Costs for seconded persons by a third party
against payment
• same eligibility criteria as A.2!
A.4 SME owners or natural person beneficiaries not
receiving a salary
• fixed daily rate (given by the EC)!

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 A. PERSONNEL COSTS (ACTUAL)
Art. 6.2.A
• NEW: hourly rate (H2020)  daily rate (HE) MGA

• no data from the “last closed financial year”

• no “annual” or “monthly” option
• NEW: either time sheets or declarations
• BUT: monthly signature!
Personnel costs
=
daily rate x days worked for the project

Calculation of the daily rate:

Gross-Gross-Salaries
actual annual gross-gross costs  Salaries
-------------------------------------------  Social security contributions
 Taxes
215
 Other obligatory costs

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 A. PERSONNEL COSTS (ACTUAL)

• actual time spent on parental leave deductible

(as in H2020)
• calculation per calendar year
• reporting during the calendar year: own pro-rata daily rate (for
months between the end of the last calendar year and the end
of the reporting period)

actual gross-gross costs during these months

--------------------------------------------------------------
(215 / 12 * these months)

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 A. PERSONNEL COSTS (ACTUAL)

Example: reporting period from 01/09/2021 to

31/03/2023
actual gross-gross costs for 2021
--------------------------------------------------------------------
daily rate 2021: 215
x
days worked for the project from 01/09/2021

actual gross-gross costs for 2022

daily rate 2022:

--------------------------------------------------------------------
215
x
days worked for the project in 2022

actual gross-gross costs until 31/03/2023

daily rate 2023: --------------------------------------------------------------------
( 215 / 12 x 3 )
x
days worked for the project until 31/03/2023

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 A. PERSONNEL COSTS (ACTUAL)

Documentation of the days worked:

• Declarations OR
• no discrepancy with HR records and e.g. time recording system
• minimum criteria:
• grant reference
• activity reference
• names
• dates
• signatures
• number of days spent on the action

• time sheets (alternatively)

• no minimum criteria published yet

• templates will be provided by EC

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 A. PERSONNEL COSTS (ACTUAL)

Documentation of the days worked:

• possible scenarios:
1. time sheets for H2020 in the organisation
• for H2020: continuation of time sheets
• for HE: either continuation of time sheets or monthly
declarations
2. no time sheets for HE in the organisation
• for HE: either introduction of time sheets or monthly
declarations
• generally the EC trusts time sheets/declarations

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 A. PERSONNEL COSTS (ACTUAL)
time recording system in hours  conversion to day-
equivalent
• each time when calculating a daily rate (i.e. per calendar year)
• rounding up or down to the nearest half-day
1. conversion based on the average number of workable
hours according to the contract
e.g. contract = 37.5 hours/week; 5 working days
 37.5 / 5 = 7.5 hours (= 1 day-equivalent)
2. conversion based on the usual standard annual
productive hours of the beneficiary (if at least 90% of the
workable time – as in H2020)
e.g. standard annual productive hours = 1600; annual workable
hours = 1720
 1720 * 0.9 = 1548 < 1600
 1600 / 215 = 7.44 hours (= 1 day-equivalent)
3. conversion based on a fixed number of hours
8 hours (= 1 day-equivalent)

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C. PURCHASE COSTS

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E. Indirect costs
D. Other cost
categories
C. Purchase costs
(travel; equipment;
other goods, works and
services)
B.
Subcontracting
A. Personnel
costs
 C. PURCHASE COSTS
Art. 6.2.D
TRAVEL COSTS MGA

Part B, Section 3.1, Table 3.1h

• purchases for travel, accomodation and
subsistence
• calculation based on actual costs
• usual travel practice of the beneficiary

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 C. PURCHASE COSTS
Art. 6.2.D
EQUIPMENT COSTS MGA
Part B, Section 3.1, Table 3.1h
• purchases of equipment, infrastructure or other assets
• depreciation costs OR
• calculation based on actual costs
• usual depreciation practice of the beneficiary (incl. international
standards)
• rate of actual use during the action duration
• NEW: capitalised costs (according to call)
• costs for the purchase or the development
• that are recorded under a fixed asset account of the beneficiary
• complying with its usual cost accounting practice (incl.
international standards)
Part A, Section 2:
• renting/leasing costs Description of any
• not exceeding the fictitious depreciation costs significant infrastructure
and/or any major items
of technical equipment,
relevant to the proposed
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work
 C. PURCHASE COSTS
Art. 6.2.D
OTHER GOODS, WORKS AND SERVICES MGA

Part B, Section 3.1, Table 3.1h

• purchases of other goods, works and services
• calculation based on actual costs
• best value for money (or lowest price)
• e.g. consumables, promotion, dissemination,
protection, translations, certificates

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D.2 INTERNALLY INVOICED GOODS AND SERVICES

D.7 + D.8 ERC

(additional funding)
D.6 Euratom
Cofund (staff
mobility costs)

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D.5 PCP/PPI
D.3 + D.4
Transnational /
Virtual access to
research
infrastructure
D.2 Internally
invoiced goods and
services
D.1 Financial
support to third
parties
D.2 INTERNALLY INVOICED GOODS AND SERVICES
Art. 6.2.D.2
Part B, Section 3.1, Table 3.1i MGA

• according to call conditions

• as unit costs
• calculation:
• based on actual costs (may be adjusted by
budgeted/estimated elements)
• either direct measurement or on the basis of cost drivers
• usual cost accounting practices of the beneficiary
• NEW: no 25 % flat-rate for indirect costs, but actual
indirect costs may be attributed to the unit costs
• documentation:
• of the usual practice
• of the project-related use of the good/service (incl. number of
units used)

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E. INDIRECT COSTS

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E. Indirect costs
D. Other cost
categories
C. Purchase costs
(travel; equipment;
other goods, works and
services)
B.
Subcontracting
A. Personnel
costs
 E. INDIRECT COSTS Art. 6.2.E
MGA

• 25 % of the total eligible costs (categories A-D),

except...
• costs for volunteers
• costs for subcontracting
• costs for financial support to third parties
• other specific cost categories (if applicable) that already
include indirect costs
• e.g. internally invoiced goods and services

• distinction from direct costs: usual practice of the

beneficiary
• e.g. rent, electricity/heating, telephone/internet,
general equipment, personnel overheads

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FORMS OF COSTS – PART 2

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 D.1 Financial support
to third parties
THIRD PARTIES

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E. Indirect costs
D. Other cost
categories
C. Purchase costs
(travel; equipment;
other goods, works and
services)
B.
Subcontracting
A. Personnel
costs
DEFINITIONS Art. 2
MGA

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 Art. 6.2.B
OTHER PARTICIPANTS Art. 6.2.C
Art. 6.2.D.1
Art. 8
Art. 9
MGA

financial support to subcontractor

third parties
(cascade funding, prizes)
beneficiary 3 coordinator

in-kind contribution free contractor

of charge
beneficiary 2 beneficiary 1

associated partner
affiliated entity
(H2020: international partner)
(H2020: linked third party)

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 B. SUBCONTRACTING Art. 6.2.B
Art. 9.3
MGA
Part B, Section 3.1, Table 3.1g
• contract for goods, works or services
• that are defined as “action tasks” in Annex 1 of the GA
• market price
• no 25 % flat-rate for indirect costs
• eligibility criteria:
• best value for money (or lowest price)
• compliance with procurement rules
• indication of the subcontractor(s) in Annex 1 (later approval on
own risk)
• e.g. construction of a prototype (if defined as “action
task”), implementation of a survey (if defined as “action
task”)

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 AFFILIATED ENTITIES Art. 2
Art. 8
MGA
H2020: linked third parties
Part A, Section 2
• entities that form a sole beneficiary (incl.
specifically established for the implementation)
• entities that satisfy the eligibility criteria and have a
(legal or capital) link with the beneficiary (neither
limited to the action nor established for the sole
purpose of its implementation)

• eligibility criteria:
• indication of the affiliated entity(ies) in Annex 1
• same reporting obligations as beneficiary (own cost reporting!)

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 IN-KIND CONTRIBUTIONS FREE OF CHARGE
• in-kind contributions of goods, works, services to a
beneficiary
• free of charge Art. 9.2
• reporting as costs of the beneficiary MGA

• 25 % flat-rate for indirect costs

• eligibility criteria:
• indication of the in-kind contribution in Annex 1 (later approval on
own risk)
• e.g. secondment of persons, use of
equipment/research infrastructure

Please note: “in-kind contributions against payment” are

not explicitly mentioned anymore, but may still be
reported under “C.3 Other goods, works and services” /
“A.3 Seconded personnel” (BUT: criteria!)

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 D.1 FINANCIAL SUPPORT TO THIRD PARTIES

Standard Modular Extension of Proposal Template, 1.

Financial Support to Third Parties Art. 9.4
• only if explicitly mentioned in the call MGA

• no 25 % flat-rate for indirect costs

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 ASSOCIATED PARTNERS
Art. 9.1
H2020: international partners MGA

• implementation of “action tasks” according to

Annex 1
• no funding/costs are not eligible

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C. PURCHASE COSTS

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E. Indirect costs
D. Other cost
categories
C. Purchase costs
(travel; equipment;
other goods, works and
services)
B.
Subcontracting
A. Personnel
costs
CERTIFICATE ON THE FINANCIAL STATEMENTS (CFS)
Art. 24.2
• certificate by an external auditor MGA

• covering actual costs and costs calculated

according to the usual practice of the beneficiary
• if requested EU contribution of each beneficiary
=/> 430.000 €
• exception for beneficiaries with SPA*: =/> 725.000 €
• NEW: requested EU contribution according to all costs of the
beneficiary
• per reporting period possible (BUT: accepted only
together with the final report)
• costs are eligible ( “C.3 other goods, works and
services”)
• affiliated entities: own CFS
* SPA = System and Process Audit

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 INTELLECTUAL PROPERTY
Part B, Section 2.2 & Section 3, Table 3.1c: “Measures to
maximise impact – Dissemination, exploitation and
communication”
• Draft “Plan for the Dissemination and Exploitation
including Communication Activities”
• generally obligatory (exception: WP)
• planned dissemination and exploitation measures during and after
the project
• after positive evaluation: detailed plan within month 6 after
signature of the GA
• own deliverable
• regular update
• description of the management strategy for intellectual
property, protection measures and how they support
exploitation
• after positive evaluation: “Results Ownership List” with final report
• e.g. costs for patents
Important for
impact evaluation!
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 OPEN SCIENCE – OPEN ACCESS
Art. 16
Part B, Section 1.2 Annex 5
MGA
• Open Access = free-of-charge online access
• peer-reviewed scientific publications:
• NEW: immediate/full Open Access in a trustful repository
• NEW: cost eligibility
• only costs for full Open Access to peer-reviewed scientific
publications

H2020: embargo
periods possible

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OPEN SCIENCE – RESEARCH DATA MANAGEMENT
Art. 16
Part B, Section 1.2 Annex 5
MGA
• description of the management strategy for
research data and other research output
• in compliance with the FAIR principle
• after positive evaluation: “Data Management Plan (DMP)”
• research data: Open Access in a trustful repository
• NEW: eventually according to call - repository operated within
the EOSC
• principle “as open as possible, as closed as necessary”
• e.g. curation and storage/preservation costs,
investigation, person responsible for data
management and quality assurance

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GENERAL INFORMATION &
ELIGIBILITY CRITERIA

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REFERENCE DOCUMENTS

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 ELIGIBILITY CRITERIA
Art. 19
Part B, Section 3.2 RfP

• legal entities from EU MS or AC

• low- and middle income countries (in the WP)
• other non-associated third countries, if they ...
• are mentioned in the WP OR
• are considered essential for the project implementation by the
EC

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 FUNDING RATES
Art. 5.3
• Research and Innovation Actions (RIA), MGA

Coordination and Support Actions (CSA):

100 % (for all beneficiaries)

• Innovation Actions (IA):

70 % or 100 % (for non-profit organisations)

• indirect costs: 25 % of direct eligible costs

Direct costs Indirect costs Total costs Funding rate funding

100 € 25 € 125 € 100 % 125 €

100 € 25 € 125 € 70 % 87.5 €

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 GENERAL ELIGIBILITY CRITERIA
Art. 6.1
• actually incurred by the beneficiary MGA

• incurred during the project duration

• indicated in the estimated budget (Annex 2)
• incurred in connection with the action (Annex 1)
• necessary for implementation
• identifiable and verifiable
• beneficiaries usual accounting practices
• comply with national law on taxes, labour and
social security
• reasonable and justified
• principles of sound financial management (economy,
efficiency)

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 INELIGIBLE COSTS Art. 6.3
MGA
• costs related to return on capital and NEW: dividends
• debt and debt service charges
• provisions for future losses or debts
• interest owed
• currency exchange losses
• bank costs by the beneficiary’s bank for transfers from the EC
• excessive or reckless expenditure
• deductible VAT
• costs during GA suspension
• NEW: costs declared under other EU grants, except
• jointly coordinated Synergy actions and max. 100 % of costs
• combination with operating grant during the same period, which does not cover any
costs of the action grant
• NEW: staff of national administration (for non-project specific
administrative activities)
• NEW: staff/representatives of EU institutions
• NEW: activities carried out in non-eligible or other target countries of the
call (exception: approval)
• NEW: ineligible costs according to the call

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 WE WANT YOUR OPINION!

Please take a few minutes to fill in our online

feedback form:

https://forms.office.com/r/gRUZyx9U9N

We very much appreciate it!

(27/04/2021)
 Bridge2HE: A transition from
H2020 to HorizonEurope for NCPs

Thank you for your

attention.