Upcoming Open Workshops
FP7 Financial Audits leaflet published
Potentially major bookkeeping problems associated with FP7 Eligible Costs
Claiming for Equipment Depreciation in FP7.
Non-eligible FP7 costs
FREE downloadable FP7 book V1.13 available now
Upcoming Open Workshops:
There are still places available for the following upcoming workshops in Brussels, Belgium:
16/09/2008 1 Day Marie Curie Financial Workshop. - The workshop will be aimed at project managers and is particularly relevant to anyone who wants to understand the Marie Curie Financial Rules and how to report correctly.
17/09/2008 1 Day FP7 Financial Workshop. The Workshop will cover:
• Differences between FP6 and FP7
• FP7 Financial Rules
• Budgeting Rules
• Flat rate Overheads Vs Real Costs (FC Calculation)
• Derogation Scheme
• Cost Recording
• Eligible Costs
• In-House Financial Recording Systems
• Cost Reporting
• Management Reports (Form C)
• Audit Certificates
• Final Payments
18/09/2008 1 Day FP7 Contract Negotiation and Project Kick-off - The workshop will be aimed at Project Coordinators and Project Partners of Successful FP7 R&D Proposals.
The Workshop will cover:
• Differences between FP6 and FP7
• Negotiations with the Commission
• Negotiation on Annex 1
• Grant Preparation Forms
• Technical Collective Responsibility
• Financial Viability and Capability of the Coordinator
• Unique Registration Facility
• Consortium Agreement
• Consortium Check-list
• Distribution of the effort and funding between the partners
• Negotiations between Partners
• Role of the Coordinator
• Project Initiation
• Cash flow during a typical project
• Kick-off Meeting
19/09/2008 1 Day Proposal Writing Workshop. - The workshop is aimed at people from organisations who are interested in taking part in an FP7 project proposal. The workshops shortcut the learning curve for writing a quality proposal with a higher chance of success and cover such areas as: background reading and considerations before you begin; detailed discussion of the “do’s and don’ts” of each proposal section; budgetary and other financial considerations.
23/09/2008 3 Day in-depth FP7 Financial Workshop in Brussels, Belgium. – Only 2 places left.
FP7 Financial Audits leaflet published:
Depending on which method of reimbursement of costs, and the amount of funding a beneficiary requests, the beneficiary may have to provide Certificates on Financial Statement as part of their required reporting.
The Finance Helpdesk has produced a leaflet which explains this.
To view the leaflet click here.
Potentially major bookkeeping problems associated with FP7 Eligible Costs:
A major change in FP7 is that it is an explicit requirement for the first time that all charges (direct and indirect) to the project must appear in the organisations book of accounts. It is how they are actually recorded that determines their eligibility. For example if your accounting department automatically records travel as overhead, they are not a direct chargeable cost. As previous years books of accounts will be closed by the end of a specific project and thus unalterable, any such deviations cannot be corrected as was the case in previous Framework Programs.
We therefore recommend that you ensure your cost recording system is compliant with these new more stringent rules and perhaps implementing changes so things such as travel can be split depending whether it is classed as a direct cost or not. One also must remember that items can only be recoded once.
In our opinion, these changes have not been highlighted sufficiently and with the removal of need for most Audit Certificates, such errors may not be picked up until subsequent external audits. Thus organisations may have large future liabilities they are unaware of.
Claiming for Equipment Depreciation in FP7:
Assuming that you are claiming under eligible costs, equipment necessary for the project can be depreciated and the can be claimed against the project. How you claim for the equipment depreciation should be according to the normal accounting principals of the organisation. If depreciation is 20% per annum, the charge will be 20% per annum (probably on a daily or monthly basis) from the date of purchase or use in the project, whichever is the later. If the normal depreciation rate for the organisation is 50% per annum then that will be the cost on a daily or monthly basis. If 100% depreciation is the norm within the organisation, then 100% depreciation will be charged on the date of acquisition/use within the project.
Of course, the claimed costs have to be in proportion with it’s usage on the project.
Non-eligible FP7 costs:
Costs calculated in accordance with other conventions e.g. "current costs", "notional rents", "opportunity costs", etc. are not eligible. Therefore, no notional costs should be charged, e.g. in respect of revaluation of buildings or capital equipment, estimated or imputed interest, estimated rentals, etc.
Costs, which are not eligible, include in particular:
• "return on capital employed", including dividends and other distributions of profits
• provisions for possible future losses or charges
• costs related to any interest
• provisions for doubtful debts
• unnecessary or ill-considered expenses
• marketing, sales and distribution costs for products and services, unless they are directly related to and necessary for the action
• indirect taxes and duties, including VAT
• any cost incurred or reimbursed from other sources such as in respect of another Community project
• leasing costs (or part thereof) where the leasing arrangement has the effect of unnecessarily increasing the charge made to the project (e.g. where the cost without interest of the leased equipment is higher than if purchased).
FREE downloadable FP7 book V1.13 available now:
Version 1.13 of Mr. Myer W. Morron’s FP7 Book, which follows on from the highly acclaimed FP5 and FP6 versions has been published by EFPConsulting Ltd. It replaces drafts that were previously released.
The downloadable book continues to be free as it was in the previous framework programs. The book is constantly updated and registered users are notified of important changes and updates by Email.
The book is over 200 pages long and covers subjects such as:
• Background to changes in FP7
• Overview of rules of participation
• Benefits of participation in a Collaborative R&D project
• Reasons not to participate
• Brief Overview of Framework Program Seven and CIP
• FP7 Funding Schemes (Types of Projects)
• Framework Program Seven changes
• Partner Search
• Proposal preparation and submittal
• What to do if your Proposal Fails
• Project Roles
• Financial Aspects
• Use of External Consultants
• What to do when your proposal is to be funded
• Consortium Agreement
• Problems during the project
• Project Management
• Project Ethics and Good Practice
• European Technology Platforms
• Ethical Considerations in FP7
• SME Status
• Intellectual Property Aspects
• How to write a proposal
To download, please click here.