H2020
Model Grant Agreement
DG CONNECT
CONNECT
Horizon 2020 model Grant Agreement:
Simplification
• Provisions
• Wording
Coherence
• Within H2020 and
with other EU
programmes
Objectives
Flexibility
• To accommodate
particularities
• Usual cost accounting
practices
Continuity
• Where possible and
adequate
Horizon 2020 model Grant Agreement:
Accommodating specificities
ERC MGA
MarieSklodowska
Curie MGA
General
Model
Grant
Agreement
Co-fund MGA
SME
instrument
MGA
Grant Agreement
Some novelties
 Global architecture common with the other EU programmes;
with all the possibilities offered by the new FR
 Terminology: terms and meanings defined in the Financial
Regulation except for those terms specific to H2020
 On-line explanations for each part of the grant ("annotated GA")
 Simplified wording revised by a specialised service of the
Commission
Electronic communication for the management of the Grant
Agreement:
Electronic signature
• Of the Grant Agreement
• Of the Amendments
• Financial Statements and Technical reports
Communication between the Commission and the
beneficiaries
• Through the Participant Portal
• Electronic-only submission of reports as a general
rule
Horizon 2020 model Grant Agreement:
A single document with all provisions
Core text
General
conditions
FP7
Specific
provisions
Annexes III
Chapter 1: General
• Single article: subject of the agreement
Chapter 2: Action
• Action, duration and budget
Chapter 3: Grant
• Amount, rates, eligible costs
Chapter 4: Rights and obligations
•
•
•
•
To implement the action: resources, in-kind contributions, subcontracts
Grant administration: reporting, payments, audits
Background and results: access rights, protection of results, exploitation, dissemination
Others: gender equality, ethics, confidentiality
Chapter 5: Division of roles
• Roles and responsibilities, internal arrangements
Chapter 6: Rejection, reduction, penalties,
termination, etc
• Rejection, reduction, recovery and penalties
• Suspension and termination of the action
Chapter 7: Final provisions
• Accession, entry into force, amendments, applicable law
Horizon 2020 model Grant Agreement:
Annexes to the grant
Annex I: Description of the action
Annex II: Estimated budget
Annex III:Accession Forms
Annex IV: Financial statements
Annex V: Certificate on the financial statements
Annex VI: Certificate on the methodology
FORMS OF FUNDING
What will remain from
 Grant Agreements as the main funding stream.
 Reimbursement of actual costs as the main funding method.
What will be
 Specific provisions for new forms of funding targeting innovation: e.g.
pre-commercial procurement, procurement of innovative solutions
 Possibility of output-based grants (lump-sums per project).
 Enhanced use of other lump-sums, flat rates and unit costs.
A SINGLE FUNDING RATE
Maximum
reimbursement
rates
Research and
technological
development
activities (*)
Network of
excellence
50%
75% (**)
Collaborative
project(****)
50%
75% (**)
Coordination
and support
action
Demonstration
activities
Other
activities
100%
50%
100%
100% (***)
(*) Research and technological development includes scientific coordination.
(**) For beneficiaries that are non-profit public bodies, secondary and higher
education establishments, research organisations and SMEs
(***) The reimbursement of indirect eligible costs, in the case of coordination and
support actions, may reach a maximum 7% of the direct eligible costs, excluding
the direct eligible costs for subcontracting and the costs of resources made
available by third parties which are not used on the premises of the beneficiary.
(****) Including research for the benefit of specific groups (in particular SMEs)
One project = One rate

Same rate for all beneficiaries and all
activities in the grant.

The applicable rate will be defined in
the Work Programme:
 Up to 100 % of the eligible costs;
 but limited to a maximum of 70 % for
innovation projects (exception for
non-profit organisations - maximum
of 100%).
COST REIMBURSEMENT
PERSONNEL COSTS
 Wider acceptance of average personnel costs (now under unit costs)
Broadening the basic conditions for acceptance of average personnel cost accounting
practices (including cost-centre approaches).
 Acceptance of supplementary payments for non-profit organisations of
up to 8000 Euro/year/person
 Simplifying participation for SMEs
Providing in the Rules for a unit cost system for SME owners and physical persons without a
salary.
 Less requirements for time records
No time records for researchers working exclusively on the project.
 Simplified provisions on annual productive hours
Two options: 1720 hours or usual cost accounting practice subject to a minimum
threshold.
SINGLE INDIRECT COST MODEL
Unique method: 25 % flat-rate
Aiming at simplifying project management and reducing recurrent errors. Combined with
practical guidance for large research infrastructures on how costs can be accepted as direct costs.
60% ?
20% ?
Single model:
25 % Flat Rate
Real ?
Simplified?
New funding model: what impact on the EU contribution?
An example
In FP7, around 90 % of the Universities and more than a half of the Research
Organisations apply the 60 % flat-rate for indirect costs. For all these participants
the impact on the EU contribution of the H2020 funding model will be favourable:
Flat-rate (60 %)
100 / 25 Funding
Direct
costs
Indirect
costs
Total
costs
% EU
contribution
EU
contribution
100
60
160
75%
€ 120
Direct costs
Indirect
costs
Total
costs
100
25
125
% EU
EU
contribution contribution
100%
€ 125
CONTROLS AND AUDITS
Financial viability  Most beneficiaries exempt from detailed analysis; only systematic check
for coordinators when requested EU funding for the project is ≥ 500 k€
Certificate on
financial
statements
 Only for final payments when total EU contribution claimed by the
beneficiary on the basis of actual costs ≥ 325.000 €
 Optional Certificates on average personnel costs (now under unit costs)
 NB: The provisions are in Horizon 2020 Regulation!
Ex-post audits
 Audits of the Commission limited to two years after the payment of
the balance
 Audit strategy focused on risk and fraud prevention
Extrapolation
 New Financial Regulation will apply; detailed provisions in the MGA
Guarantee Fund
 Continuity of the system under procedures similar to those applied in FP7
Thank you for your attention!
DG CONNECT
CONNECT