Details of Funded Costs
BACKGROUND: In FP7 there will be no cost models, which means the Additional Cost (AC) model currently in use under Framework 6, will no longer exist. Therefore all participants will be required to use a full-cost type model, with all costs reimbursed at a percentage of eligible costs incurred.
Although UK universities now have Full Economic Costing, the TRAC methodology cannot simply be applied to Framework Programme funding, since it includes elements that would not be considered as eligible costs by the European Commission. Universities UK, the UK Funding Councils and OSI have commissioned JM Consulting to look at how TRAC/FEC can be adapted to remove these non-eligible elements and create an EU-FEC. JM Consulting should produce their findings in the next month, well in advance of the first deadlines.
FUNDING:
The final version of the Financial Rules has yet to be approved and published but based on the information in the draft documents, the Commission could chose to finance projects in several ways depending on the programme and the type of scheme:
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Reimbursement of eligible costs
For the Cooperation Programme an EU-FEC will be used to calculate the cost of the project and the Commission will reimburse at a fixed percentage of 75% for research activities and 100% for management activities. If Universities are unable to produce an EU-FEC the same reimbursement percentage will be used but Universities will have to use a Commission determined fixed overhead % (possibly 60% at the beginning of FP7 but being reduced to 40% by the end of the FP).
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Flat rates
Most of the Marie Curie schemes operate on this basis, where the Commission determines the amounts for salaries, travel, mobility, research expenses, management and indirect costs.
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Lump sums
Networks of Excellence may be funded this way with a set amount available per researcher involved. The Marie Curie Awards scheme will be funded with a lump sum.
HELP AVAILABLE:
If you are planning to submit an FP7 application, as a partner or coordinator, please get in touch with your Research Support Officer as early as possible as they will be able to help you create your project budget.