Project Management
In order for the Commission to verify the execution of the contract, participants are required to submit, via the co-ordinator interim and final reports as well as reports of costs incurred.
These reports will be analysed by Commission services in the light of the criteria, which led to the original selection of the proposal. This will ensure the project conforms to the conditions associated with the Community financial contribution, and that the progress foreseen actually takes place. The reports are also used to assess whether and in what manner the project should continue to be supported.
In addition, and conforming to objectives stated in the Fifth Framework Programme decision concerning the use and dissemination of results, the Commission will follow-up the implementation of the results of the project. Therefore participants are in general required to produce a "Technology Implementation Plan (eTIP)" indicating how the knowledge gained will be used. The Commission will ensure, where necessary, the confidentiality of this data.
The Commission undertakes a financial contribution to the work.
With the exception of those cases where the Commission's contribution takes the form of a lump sum payment, the Commission reimburses eligible costs incurred by participants as the project progresses. Payment is made in regular instalments.
Incurred eligible costs
Participants are required to identify and declare their eligible costs by the submission of interim and final cost statements based on the actual costs incurred for the execution of the project. Participants must retain supporting documents, which justify these costs, for at least 5 years from the end of each payment to permit auditing by Commission services or other institutions, e.g. the European Court of Auditors.
The different categories of costs that are eligible for Commission funding differ according to the type of contract (see Boxes 6 and 7).
Calculation methods
A number of different methods are used to calculate the Commission funding, depending on the type of action involved and on the participant's capacity to identify his incurred costs 6 and 7).
For Research and Technological Development projects, Demonstration and Combined Research and Demonstration projects, three calculation methods are used: full cost actual overhead (FC), full cost flat rate (FF) and additional cost (AC).
For Accompanying Measures, one calculation method is used for all participants. The overhead may be calculated as a flat rate of the personnel costs and in some cases no overheads may be allowed.
For technology take-up measures not all cost categories may be allowable.
For Concerted Actions and Thematic Networks, all participants use the additional cost model (AC), so overheads are calculated as 20% of all direct costs (except subcontracting).
Use of permanent staff is allowed for all types of organisations if accurate time records are kept.
Payment of the contribution
The Community contribution is paid in Euro, in a number of regular instalments based on cost claims submitted by participants with their interim and final reports.
The Commission may make advance payments at the beginning of the project, contingent on verification of the participants' financial standing. In certain circumstances the Commission may request financial or other guarantees to ensure the security of any advance payment made. This is particularly necessary for those shared-cost actions where the participants themselves are expected to support part of the cost.