Highlights on the Grant Agreement model
“Research within Priority Sectors” Program
Anca GHINESCU
Program Coordinator
anca.ghinescu@ancs.ro
Tel/fax +40.21.3183053
Online Seminar on Grant Agreement May 28, 2014
Summary
 Terminology, object, duration and value
 General obligations & Specific obligations
 Eligible costs
 Reporting
 Evaluation
 Payments
 Changes of the project
 Controls and audit
 IPR & Public procurement
 Termination or suspension of funding
 Return of funding
 Final provisions & Annexes
 Partnership Agreement
 Schedule for negotiation and contracting
 Final remark
Online Seminar on Grant Agreement May 28, 2014
Terminology, object, duration and value
 Contracting Authority = Program Operator (PO)
Parties to the Grant Agreement (GA)
 Contractor = Project Promoter (PP)
 But, the entire consortium is mentioned in GA (all Project Partners are nominated in the
preamble)
 Chapter I Definitions & Chapter II Object of the GA
 Chapter III Duration: - entry into force of GA (upon last signature & assignment of
registration no.)
- completion of GA (date of final payment)
- start of activities July 1, 2014 (set schedule of negotiation & contracting)
- completion of activities by April 30, 2017 (deadline for eligibility of costs
on projects level)
 Chapter IV Funding: - total GA value in lei (national currency at InforEuro exchange rate in
June) and euro
- plus the budget split per years (separate values for EEE Grant and cofunding)
- possible update of the GA value, at the final payment, methodology
approved by FMO on the use of the reserve for the exchange rate losses
Online Seminar on Grant Agreement May 28, 2014
General obligations & Specific obligations (I)
 General obligations for the Parties:
- compliance with mandatory national and EU regulations, including rules on
competition, public procurement, state aid and provisions of the GA and its annexes;
- the Contractor shall represent the project consortium within the lifetime of the GA;
- other general obligations of the Contractor with regard to the implementation of the
project, dissemination activities, payments (flow of funding), reporting, changes in the
Partnership Agreement/legal & organizational statute, private co-financing, audit trail
ensured for the duration of GA and up to 5 years after project completion;
- the Contractor responsibility with regard to achievement of the project objectives and set
indicators, ensuring the correct implementation by all Project Partners and fulfilment of
all obligations required by the GA.
 Specific obligations for the Contractor
- perform the activities according to project proposal, optimal use of provided funds,
promotion activities on project (Annex 4 of the Regulation), cooperation with 3rd parties
contracted by the PO for monitoring and evaluation activities, keep track of assets
purchased, distinctly organize the accounting for economic and non-economic activities
(if it is the case), draw up, maintain and keep clear and detailed accounting records, open
a dedicated account, return of funding and interest in case of project termination, etc.
- other particular provisions valid only for the Contractor and Project Partner from RO
Online Seminar on Grant Agreement May 28, 2014
General obligations & Specific obligations (II)
 Specific obligations for the Contracting Authority
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promptly examine the documents submitted by the Contractor
provide yearly advance payments of up to 90% of the annual value of the GA
preserve the confidential information belonging to/obtained under this GA
ensure the assessment of the reporting documents
ensure the monitoring of the project
specific clause with regard to organization of its own system for protection of classified
information
Online Seminar on Grant Agreement May 28, 2014
Eligible costs
 Eight cumulative conditions are set for the eligible costs like: costs incurred during the
project implementation, proportionate costs to set objectives and needed costs, related
to the GA and included in the total budget, complying with the expenses stipulated in
chapter 7 of the Regulation, used for the sole purpose of achieving the project objectives
and of the expected results, identifiable and verifiable, comply with the applicable
legislation on taxes and with the approved state aid scheme.
 Eligible costs performed in accordance with principles of
confidentiality, transparency and avoiding the conflicts of interest.
fair competition,
 Personnel expenditures are determined according to the national legislation from each
country.
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Categories of costs related to travel expenses (transportation, accommodation, daily
allowance, visa fees, health insurance, etc.)
 VAT is an eligible cost if there is no deduction or reimbursement of it, according to
national tax rules
 Declaration of the chosen model for indirect costs and its value for the Contractor and
Project Partners
Online Seminar on Grant Agreement May 28, 2014
Reporting (I)
 Reporting documents: Annual report, Final report and Report on scientific publications.
 Annual report, within 30 days from the end of the fiscal year, shall contain:
scientific and technical report (model in Annex VII)
- explicative note on the use of resources
- Contractor's financial statement plus the aggregated form for the financial reports of
Project Partners
- request for payment for the justified due amount covered by the annual report(model in
Annex VIII)
 Final report, within 30 calendar days from the completion of the project shall contain:
- final publishable summary report (with results, conclusions and socio-economic impact
of the project, final indicators on the project);
- report covering the wider societal implications of the project and a plan for use and
dissemination of the generated results;
- distribution of the financial contribution between Contractor and Project Partners.
 Report on scientific publications containing references and summary of all scientific
publications on project results, within 30 days of their publication, submitted during and
at the end of the project.
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Online Seminar on Grant Agreement May 28, 2014
Reporting (II)
 Financial Report submitted at the end of each financial year comprise:
post-calculation expenditures of the period (model provided in Annex III);
- sheet of costs incurred within the reported period (model provided in Annex IV).
 Interim Financial Report, submitted no later than the 5th working day of November in
each budgetary year, using the model provided in Annex IX.
 If any irregularities are detected in the reporting documents, the Contractor shall resolve
all discrepancies/missing documents within 15 days from date of receipt of the
notification.
 Endorsement of reporting documents, except for the scientific and technical report
which is subject to evaluation by experts, is due within 15 working days from the receipt
of all necessary documents.
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Online Seminar on Grant Agreement May 28, 2014
Evaluation
 Purpose of the scientific and technical report evaluation:
implementation of the project is compliant with the GA &
- implementation of the project leads to the achievement of the foreseen outputs and
objectives
 Based on the evaluation, PO can withhold or reduce future funding if: project is
implemented in a contradictory manner/breaching the law/no achievement of the foreseen
outputs and objectives.
 Evaluation of final report: contract to be deemed as executed/executed, with a summons to
pay the contractual penalties/non-executed, in whole or in part
 If failure to achieve the objectives of the project, notification of the PO, termination of the
project, reimbursement of unused funds & final report
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Online Seminar on Grant Agreement May 28, 2014
Payments
 Advance payments, upon request (Advance Payment Convention), granted up to 90% of
the amount earmarked for each fiscal year, except the last year (2017)
 Advance payment for the last year, maximum 70% of its earmarked budget
 Advance Payment Conventions submitted no later than 5 working days after signing
GA/beginning of each budgetary year
 Interim payments (remaining justified due amount) of up to 10%, paid upon request
(Payment Application), after evaluation of S&T report and endorsing of reporting
documents (financial reports)
 Final payment of the project: within 10 working days after evaluation of the annual report
for 2017 & final report & approval of reporting documents
 Transfer of funds from PO to Contractor: maximum 10 working days from the date of
approval of Advance Payment Convention/Payment Application
 Transfer of funds from Contractor to Project Partners: maximum 10 working days from
the receipt of funding. Transfers in euro for Project Partners in NO/IS
 Funds remained unused at the end of the fiscal year:
- Project Partners in NO/IS keep the funds to be used next year with the same destination
- Contractor & Project Partners in RO keep the EEA Grant, but transfer back the cofunding (15%) to PO. Co-funding transferred again to them within first 10 working days
of next year (national rules)
 Total interest from project funding declared in the final report and reimbursed to PO
Online Seminar on Grant Agreement May 28, 2014
Changes of the project
 Not allowed to introduce any changes in the project implementation without the consent
of PO
 If occurs, termination of GA without period of notice, but 3 exceptions to this rule:
1.
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shift among all categories of expenses, excluding indirect costs, so as the total
reallocated value does not exceed 15% from the total project budget
change of dates for achievement of specific task, not exceeding 4 months, but no change
in final date for completion of project
shift of funds between subsequent budgetary years, as long as they do not affect the
activities foreseen in Annex II - Project Planning
Any shift of funds (see above) no increase in total project funding
Obligation to notify PO about any change in project implementation, including the
exceptions
If other changes are required, Contractor submits an application to PO (with reasons for
change) plus a draft Addendum to the GA, in max. 30 days but no later than 3 months
before project completion
Online Seminar on Grant Agreement May 28, 2014
Controls and audit
 Controls may be carried out at any time during the project implementation and within 5
years after the completion of the project
 Controls shall be carried out by PO/experts authorized by PO/other control authorities
in accordance with the binding legal regulations
 Controls carried out at the premises of the Contractor & Project Partners from RO, as well
as locations of the project implementation in RO
 Procedure for controls is described step by step in several articles of GA
 Compulsory audit is carried out by an independent & certified auditor if the project
budget is ≥ 375.000 euro
 Auditing cost is an eligible cost on the project
 Audit report, for the Contractor and every Project Partner ,submitted along with the final
report
Online Seminar on Grant Agreement May 28, 2014
IPR and Public Procurement
 Research results obtained under this GA belong to the Contractor & Project Partners
and/or their employees, in accordance with the Partnership Agreement and legislation in
force concerning the titles of industrial property and copyright
 Research results are managed by their owners, with all the rights deriving from
ownership
 Public procurement shall be carried out according to the binding legislation in the field
of public procurement at national & European Community level and in compliance with
the provisions of article 7.16 of the Regulation
 Documentation related to public procurement shall be kept by Contractor & Project
Partners for the period specified in article 7.16 para (6) of Regulation
Online Seminar on Grant Agreement May 28, 2014
Termination or suspension of funding
 Either Party may terminate this GA after one month from notification (notification must
specify the reasons)
 PO may suspend or terminate funding after notification in 5 cases (like threatening
situations for the GA execution, ensure a positive cash flow from the Contractor’s fault,
failure to comply with publicity obligations, irregularities that make further execution of
the contract impossible or unreasonable)
 PO may suspend or terminate funding without notification in 16 cases (see the GA)
 Termination of GA does not relieve the Contractor from its obligation to justify the funds
received and submit a final report within 30 days from the date of termination
 Reimbursement of funds if the GA is terminated (next chapter)
 If force majeure occurs, neither Party will be liable to the other nor shall be deemed as
breaching the contract provisions related to non-performance or improper performance
of its obligations (several articles on the procedure to follow in case of force majeure)
Online Seminar on Grant Agreement May 28, 2014
Return of Funding
 If GA is terminated in certain circumstances, the Contractor shall refund the entire
received funding, within 15 days from the date of submission of notification, together
with the interest on the amount
 In justified cases, PO may request a partial refund of funds transferred (especially in the
force majeure cases)
 Upon duly justified request, the Contractor may postpone refunding, reimburse funding
in installments or be exonerated by the PO when proven failure of the research activities
 PO may suspend financing and may oblige the Contractor to refund the amount
(funding + interest) if the Financial Mechanism Committee or the Ministry of European
Funds (National Contact Point) decides this way
 Different contractual penalties when:
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failure to meet deadlines regarding execution of project activities (start and final date)
failure to perform the contract, in all or in part, or misuse of funding
Online Seminar on Grant Agreement May 28, 2014
Final provisions & Annexes
 Transfer of rights, obligations and responsibilities of the Contractor/Project Partners can not
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be transferred to a 3rd party without the prior consent of the PO
Rules set for the communication between Parties to the GA
Contractor/Project Partner may subcontract, but not more than 15% of the project funding,
those activities that are proved to be necessary for the project and which can not be made
directly by one of the Project Partners, but not the main activities of the project
The Project Investigator can be changed only in the event of death/at the proposal of the
Executive Committee established under the Partnership Agreement/if the director can not
continue due to illness, accident, resignation or force majeure
Cession of the GA or some of its parts is forbidden
Annex I – Project Proposal (project application submitted at the Call for proposals)
Annex II – Project Planning
Annex III – Framework Estimate
Annex IV – Sheet of costs incurred within the reporting period
Annex V – Advance Payment Convention
Annex VI – Schedule of Payments
Annex VII – Scientific and Technical Report
Annex VIII – Payment Application
Annex IX – Interim Financial Report
Annex X – Project Information for DoRIS
Online Seminar on Grant Agreement May 28, 2014
Partnership Agreement
 Starting document: DESCA model for Partnership Agreement (PA)
 Consultation with the Donor Program Partners
 Result: a model for the PA tailored for this Program
 This PA model will to be provided to each Contractor at the beginning of the negotiation
and contracting phase
In brief
 Purpose of PA: to specify, with respect to the project, the relationship among the Parties
(defined as members of the project consortium), in particular concerning the
organization of the work, management of the project and the rights and obligations of
the Parties concerning, inter alia, liability, access Rights and dispute resolution
 PA provisions concerning: applicable legal framework, entry into force, duration and
termination, responsibilities of the Parties, responsibilities towards each other,
governance structure, financial provisions, foreground, access rights, non-disclosure of
information, auditing, a.s.o.
Online Seminar on Grant Agreement May 28, 2014
Schedule for negotiation and contracting
No.
Activity
Deadline
1
Sending out letters of invitation to Contractors for the negotiation and contracting
phase
2
Information meeting with Contractors, held at PO venue
3
Sending to PO the letter of Contractors on acceptance/rejection of the conditions
set for the reduced projects budget according to PC decision
4
5
Sending to PO of the documents needed for signing the GA (GA with annexes filled
out and PA signed, note on changes done to GA as a result of reduced budget,
declaration on conformity)
Feed back from project officer & financial officer on received documents sent to
Contractors
May 29, 2014
June 2, 2014,
at 9.30, room 301
June 3, 2014
June 6, 2014
June 11, 2014
6
Sending to PO the documents with changes done by Contractors at the request of
PO communicated in June 11 (if needed)
June 13, 2014
7
Final check by the project officer & financial officer of documents sent by
Contractors and final announcement if they fulfill all requirements for signing the
GA
June 17, 2014*
8
GAs signed by Contractors (in cases when negotiation is completed) as well as first
Advance Payment Convention are sent to PO
June 18 - 19, 2014
9
Internal approval and signing of GAs and Advance Payment Conventions by PO
June 20 – 26, 2014
10
Delivery of signed GA to Contractors and first transfer of funds
Online Seminar on Grant Agreement May 28, 2014
June 27-30, 2014
Final remark
 In order to keep this tight schedule, your collaboration with and
support to Contractors is crucial!
 Don’t hesitate to contact DPPs representatives/PO team in case any
further clarifications are needed/questions are raised in the
forthcoming period of GA negotiation
 PO team to be contacted
Anca GHINESCU - Program Coordinator
e-mail anca.ghinescu@ancs.ro; tel. +40.21.318.30.53
Vasile LUNGU – Deputy Program Coordinator
e-mail vasile.lungu@ancs.ro; tel. +40.21.318.30.65
Thank you for your attention!
Online Seminar on Grant Agreement May 28, 2014