Legal issues in Horizon ETNA 2020, Athens, 6th September 2016 Christin Kulke (Legal & Financial NCP Germany, DLR)
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1 Legal issues in Horizon 2020 ETNA 2020, Athens, 6th September 2016 Christin Kulke (Legal & Financial NCP Germany, DLR)
2 NCP Academy will help NCPs By create and implement a new and integrated training of Horizon 2020 advisors By create and implement training courses on cross-cutting issues in Horizon 2020 relevant for all NCPs By bringing together NCP Coordinators and NCPs for Legal and Financial aspects of Horizon 2020 and thereby make it easier to share knowledge and best practice By improving the professionalisation of NCP service across Europe and simplify access to Horizon 2020 calls Training will be on-site and via webinars and streaming For more info please see: 9/22/2016 DLR - Germany 2
3 Agenda Legal Framework Reference documents Eligibility for participation and funding in H2020 Third Party Contributions The Grant Agreement The Consortium Agreement 9/22/2016 DLR - Germany 3
4 Legal Framework Reference documents 4
5 Legal Framework Treaty of Lisbon Regulation for the implementation of H2020 Decision on specific programmes Rules for participation EU Financial Regulation Grant Agreement Consortium Agreement Annotated Model Grant Agreement (AGA) guidelines /research/participa nts/portal/desktop/ en/funding/referenc e_docs.html#h2020 -legal-basis-rfp 5
6 Reference documents Regulation for the implementation of H2020 (No 1291/2013) Council decision on specific programmes (COUNCIL DECISION of 3 December 2013) Rules for participation - REGULATION (EU) No 1290/2013) Model Grant Agreement (GA) Annotated Model Grant Agreement ing/reference_docs.html ; ing/reference_docs.html#h2020-legal-basis-rfp H2020 Online Manual 6
7 Eligibility for participation and funding in H2020 7
8 General eligibility for participation (Art. 7 RoP) Open to all legal entities in the EU, in associated countries and in third countries Open to all international organisations Limitations only possible for specific reasons or security concerns in the respective work programme Limitation only applicable if it is explicitly mentioned in the respective work programme 8
9 Minimum requirements for participation (Art. 9 RoP) Consortium includes at least three independent legal entities from three different Member States or Associated Countries Exceptions for individual applicants: Calls of the European Research Council (ERC), Coordination and Support actions (CSA), Training and Mobility actions (MSCA), The SME-Instrument, if the action has a clear European added value, Programme co-fund actions, In justified cases provided for in the work programme or work plan 9
10 EU28 + Associated states eligible for funding EU-Member states Associated countries (AS) Albania Armenia Bosnia & Herzegovina Faroe-Islands Georgia Iceland Israel Macedonia Republic of Moldavia Montenegro Norway Serbia Turkey Ukraine Tunisia Switzerland (partly associated) 10
11 The eligibility of Swiss partners Since 15 September 2014 Switzerland has been associated retrospectively in the following areas: European Research Council (ERC), Future and emerging technologies (FET) Marie-Skłodowska-Curie-Actions (MSC) Research infrastructures Spreading of Excellency and widening of participation Switzerland remains a third country in all other areas of H2020 no funding from the EC but from Switzerland Further information:
12 The eligibility of UK partners The Statement of 29 June of the Heads of State or Government of 27 Member States, as well as the Presidents of the European Council and the European Commission, confirms that until the UK leaves the EU, EU law continues to apply to and within the UK, both when it comes to rights and obligations. This includes the eligibility of UK legal entities to participate and receive funding in Horizon 2020 actions. Chancellor Philip Hammond guarantees EU funding for running projects beyond date UK leaves the EU: 12
13 Funding eligibility of participants (Art. 10 RoP) Institutions in EU Member states Institutions in associated states Organisations of special European interest 13
14 Funding eligibility of partners from third countries Participation from all over the world is possible restrictions in eligibility List of more than 100 eligible third countries in General Annex A of the work programme (developing countries, countries of enlargement and neighbourhodd policy) generally eligible Industrial countries (e.g. Australia, Canada, Japan, USA) Emerging countries (e.g. Brasil, Russia India, China, Mexico) only in exceptional cases eligible - Eligibility is explicitly mentioned in the programme - Participation is essential for the implementation of the project - Funding is provided for in a bilateral scientific technical or other agreement 14
15 Third party contribution 15
16 Partner Coordinator Partner Partner Partner Partner Consortium In-kind contribution of third parties DLR - Germany
17 Third parties Third parties are all institutions that have not acceded to the grant agreement Contribute to the project Several possibilities to include third parties if their participation is necessary for the project s success Attention: Different conditions for their participation and for accounting for their costs! 17
18 Overview: different options for participation of third parties (Art GA) A. Third party executes project tasks A.1 subcontracts, Art. 13 GA with additional options A.2 OPTION: Linked Third Party, Art. 14 GA (ex. Special clause 10) B. Other contributions of third parties B.1 provision of goods, works and services; Art. 10 GA B.2 In-kind Contributions against payment, Art. 11 GA B.3 In-kind Contributions without payment, Art. 12 GA C. FINANCIAL SUPPORT TO THIRD PARTIES C.1 Art. 15 GA, Cascading Grants, Prices etc. DLR - Germany
19 Subcontracts Article 13 GA A. Third party executes project tasks A.1 subcontracts, Art. 13 GA with additional options A.2 B. Other contributions of third parties B.1 B.2 B.3 C. Financial support to third parties C.1 Necessary for project implementation (but do not concern core tasks of a project) Concern the implementation of specific action tasks as described in Annex 1 Selected according to best value for money (13.1), any conflict of interests avoided According to national public procurement law! Subcontractor issues invoice, charges market prices, includes profit 19
20 Subcontracts Article 13 GA A. Third party executes project tasks A.1 subcontracts, Art. 13 GA with additional options A.2 B. Other contributions of third parties B.1 B.2 B.3 C. Financial support to third parties C.1 Tasks need to be mentioned in Annex I of the GA New in H2020: ex post recognition of costs possible if costs are not mentioned in Annex 1, but recognition is at the Commission s discretion No subcontract amongst beneficiaries No subcontracts to subsidiary companies (Art. 14) 20
21 Linked third parties Article 14 GA A. Third party executes project tasks A.1 A.2 OPTION: Linked Third parties, Art. 14 GA (ex. Special clause 10) B.Other contributions of third parties B.1 B.2 B.3 C. Financial support to third parties C.1 OPTION: potential participation of affiliated entities and linked third parties Definition of status during grant preparation phase Structural and enduring relationship necessary Affiliated entities: Def. Art. 2.1(2) RoP; FN 24 GA: affiliated entities, factual and/or legal direct/indirect control Linked third parties Def.: (FN25) Third party with a legal link to a beneficiary is any legal entity which has a legal link to the beneficiary implying collaboration that is not limited to the action. Executes project tasks Needs to have its own PIC and declares its own costs according to Art. 6.3 New: joint and several liability possible 21
22 Providing goods and services Article 10 GA A. Third party executes project tasks A.1 A.2 B. Other contributions of third parties B.1 Providing goods and services, Art. 10 GA B.2 B.3 C. Financial support to third parties C.1 Third parties can provide goods, works and services if these are needed for the project Do not cover the implementation of action tasks but they are necessary to implement action tasks by beneficiaries examples: audits, translations, publications, creating webpages etc. Contractual relationship between service provider and beneficiary Minimal requirements: purchase according to best value for money (10.1), no conflict of interests According to national public procurement law! 22
23 In-kind Contributions Article 11, 12 GA A. Third party executes project tasks A.1 A.2 B. Other contributions of third parties B.1 B.2 In-kind Contributions against payment, Art. 11 GA B.3 In-kind Contributions free of charge, Art. 12 GA C. Financial support to third parties C.1 Third parties may provide in-kind contributions against payment or free of charge, if those contributions are necessary for project implementation No commercial interest of the third party Contributions have to be named in Annex I of the GA New in H2020: ex-post recognition of costs possible if costs are not mentioned in Annex 1. However, recognition is at the discretion of the commission 23
24 Exercise A group of scientists meets ups in order to discuss a proposal in an Horizon 2020 Energy Call 2017: Identify the minimum consortium and the eligibility for participation and the eligibility for funding of the participants. Who can be beneficiary or third party and who could not be part of the consortium? 9/22/
25 Exercise company EONA from Greece subsidiray EONA-Natural Energy Ressources GmbH from Germany Tokohama University from Japan University of Cologne from Germany Thessaloniki University being responsible for preparatory lab activities Company Energie propre from Switzerland Company Dutch Energy from the Netherlands 9/22/
26 Exercise - solution company EONA from Greece: eligible for participation and funding subsidiray EONA-Natural Energy Ressources GmbH from Germany: eligible for participation and funding, linked third party Tokohama University from Japan: eligible for participation, not eligible for funding, exception: work programme University of Cologne from Germany: eligible for participation and funding Thessaloniki University being responsible for preparatory lab activities: eligible for participation and funding, subcontract Company Energie propre from Switzerland: eligible for participation, not eligible for funding, exception: work programme Company Dutch Energy from the Netherlands: eligible for participation and funding 9/22/
27 The Grant Agreement 27
28 The Grant Agreement Contractual relation between Commission and Consortium Partner Partner Coordinator Partner Partner Partner Consortium DLR - Germany
29 Model Grant Agreement Same rules and regulations for all programmes in H2020 Specific exceptions for ERC, MSC, SME, CO-FUND More comprehensive than the FP 7 model (FP7 GA + Financial Guide) Different versions for one and many beneficiaries (Mono and Multi- Beneficiary) Different options in the agreement - text applicable to specific situations Annotated documents published in the Reference section of the Participant Portal rence_docs.html 29
30 Components of the Grant Agreement Core agreement: General terms and conditions (legal and financial regelations) Annexes: Annex 1 Project description Annex 2 estimated budget Annex 3 Partners accede to the agreement Annex 4 Financial Statement Annex 5 Certificate on the financial statements Annex 6 Certificate on the methodology 30
31 Grant Agreement Preparation No grant negotiations in H2020 reduced time to grant ( 8 months = 5 months evaluation + 3 months grant preparation) New: generous interpretation of Art. 20, notification by the COM might be earlier, grant preparation phase might then be longer than 3 months LSIGN signs grant agreement in the Participant Portal Further information: -funding-guide/grants/from-evaluation-to-grantsignature/grant-signature_en.htm 31
32 Chronological overview: Grant Application and Administration Call deadline Invitation to grant preparation Signing of Grant Agreement Application submission Evaluation of application Preparation of Grant Agreement Project level 5 months max. 3 months max. Registration (PIC) Good Practice: - Validating organisation - LEAR nomination - Nomination of LSIGN and FSIGN - Bank account - If applicable: Agreement over consortium agreement model - Grant Agreement Preparation - Declaration of Honour - Signing of consortium agreement - If applicable: finance check - Validation - LEAR appointment - LSIGN, FSIGN appointment Administrative level DLR - Germany
33 Financial Capacity/Viability Check Cumpolsory Financial Capacity Check for coordinators if the overall project budget is more than There is no Financial Viability/Capacity Check, if the coordinator is a public institution (e.g. University) or if it has a guarantee bond, as well as in specific funding schemes (ERC, SME instrument etc.) Self-check Tool:
34 Possible amendments during Grant Preparation Generally speaking it is not possible to change the content of successful proposals during grant preparation No substantial changes possible Proposals are funded as submitted! (New in H2020) Changes only possible if: Proposal contains obvious errors or inconsistencies Necessary amendments (resulting from): Ethics Review or security scrutiny Replacement of beneficiaries, if approved by the COM Modifications of administrative data 34
35 Signature of the Grant Agreement By European Commission 35
36 The Consortium Agreement 36
37 Consortium Agreement Article 41.3 GA Consortium Agreement obligatory Exception: if work programme explicitly asks for other arrangements Has to be signed before GA is signed (according to work programme) Private-law agreement between partners of the consortium Content agreed upon by the partners, not controlled by the COM PO might ask to see Consortium Agreement Regulates relations between consortium partners 37
38 Possible provisions of the Consortium Agreement Internal arrangement of the consortium Management and access to the Participant Portal Distribution of EU contribution Additional regulations regarding rights and obligations regarding background and results settlement of internal disputes liability, indemnification and confidentiality arrangements between the beneficiaries 38
39 Model Consortium Agreements DESCA H2020: MCARD-2020 by Digital Europe: 020ModelConsortiumAgreement.aspx EUCAR-2020: Model_Projects_Consortium_Agreement/v iew 39
40 NATIONAL CONTACT POINT LEGAL & FINANCIAL ISSUES Financial Issues Alexandra Burgholz Bastian Raue Liane Lewerentz Anika Werk Legal Issues Nicole Schröder Christin Kulke Alexandra Burgholz General information Tel.: Tel.: Tel.: Tel.: Tel.: Tel.: Tel.: Monika Schuler Tel.: Website (in German only): DLR - Germany
41 This project has received funding from the European Union s Horizon 2020 research and innovation programme 9/22/2016 DLR - Germany 41
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