lump-sum-funding-in-horizon-europe_en

1、Common Implementation CentreEuropean Commission, DG rtD 19 May 2022Lump Sum Funding in Horizon Europe: How does it work? How to write a proposal? Why do we use lump sum funding?Reducing the financial error rateFollowing the ECA annual reports 2019 and 2020, there is wide agreement that the error rat

2、e in the R&I Framework Programmes must be reducedLump sums are a key measure to achieve this in Horizon EuropeSignificant simplification potentialLump sums remove the obligation to report actual costs and resourcesEasier to use for beneficiaries with limited experienceFunding based on reimbursement

3、of real costs remains complex and error-prone. Little scope for further simplificationFocus on contentFocus less on financial management and more on contentWhy do we use lump sum funding?Easier access to the programmeVery small share of beneficiaries have more than 100 grants:Large entitiesDedicated

4、 staff and procedures to deal with actual costsVast majority of beneficiaries have only 1 or 2 grants per programmeMost of them SMEs or newcomersLittle or no previous experienceNeed a simple funding modelWe are aware of concerns: Higher financial risk; possible negative side effects (fewer newcomers

5、, less ambitious proposals); less flexibility in grant managementWe are aware of misunderstandings: Lump sum payments depend on a successful outcome (not true); partially completed lump sum work packages will not be paid (not true); in actual cost grants, you only need correct invoices to be paid (n

6、ot true)We need to explain more, but we see no blocking issues:Successful pilot under Horizon 2020We clarify how lump sum funding works, the principles and the details through webinars and guidance documents.Common understanding of lump sum funding neededTwo lump sum optionsOption 1Lump sum fixed in

7、 the call for proposalOption 2You define the lump sum in your proposalExcept ERC Proof of Concept, all topics in the 2022 Work Programme are option 2. Writing a lump sum proposalTo write a lump sum proposal, you:Use the standard Horizon Europe application formPresent the objectives and methodology o

8、f your project and address the expected outcomes and impacts as in any Horizon Europe proposalDescribe in detail the activities covered by each work package.To define and justify the lump sum, you need to provide a detailed budget table with cost estimations.The detailed budget table is an Excel fil

9、e. You must download it from the online submission system, fill it and submit it as an annex to the Part B of your application form.Writing a lump sum proposalIn this detailed budget table, you provide cost estimations for each cost category per beneficiary (and affiliated entity if any) and per wor

10、k package.The cost estimations must be an approximation of your actual costs. They:are subject to the same eligibility rules as in actual costs grantsmust be in line with your normal practicesmust be reasonable / non-excessivemust be in line with and necessary for your proposed activities.The cost e

11、stimations are used to generate in the detailed budget table a breakdown of lump sum shares per work package and per participant.Details and instructions on how to fill in the lump sum detailed budget table are provided in the Funding & Tenders portal.Project design Work packagesWork package distrib

12、utionA single activity is not a WPA single task is not a WPA % of progress is not a WP (e.g. 50 % of the tests)A lapse of time is generally not a WP (e.g. activities of year 1)As many as needed but no more than what is manageable A work package (WP) is a major sub-division of the work plan of your p

13、roject.Work packages with a long duration may be split along the reporting periods (e.g., Management, Dissemination and Exploitation, etc.). In this way, the relevant activities can be paid at the end of the reporting period.Evaluation of a lump sum proposalYour proposal will be evaluated by indepen

14、dent experts against the standard evaluation criteria: excellence, impact, and implementation. The cost estimations will be assessed against the proposed activities under the implementation criterion.Experts will:ensure that the cost estimations are reasonable and non-excessiveevaluate whether the r

15、esources proposed and the split of the lump sum allow completing the activities described in the proposal.If the experts find overestimated costs, they make concrete recommendations on the budget that are recorded in the Evaluation Summary Report. This will be reflected in a modified lump sum amount

16、 in the grant agreement.Cost estimations that are clearly overestimated or underestimated lead to a decreased score under the implementation criterion.Historical data in the evaluationExperts check costs based on their knowledge and professional experience with R&I projects in the field.We will also

17、 provide experts with reference data about the personnel costs accepted in Horizon 2020 per country and per type of organisation.EU 27 accepted personnel costs in H2020Number of organisationsMonthly personnel costsMedian monthly personnel costs75th percentile25th percentileGrant preparationWe follow

18、 the standard process to prepare the grant agreement.The grant agreement for your project will be based on the Model Grant Agreement for lump sum grants.The no negotiation principle applies. The grant agreements is prepared on the basis of the proposal you submitted. However, some changes might be n

19、ecessary:correcting obvious errors and inconsistenciesother changes necessary to comply with applicable rulesadjustment of the lump sum to the amount specified in the Evaluation Result LetterThe breakdown of lump sum shares per beneficiary and per work package is included in the grant agreement as A

20、nnex 2. The submitted detailed lump sum budget table is not part of the lump sum grant agreement.Once the lump sum is fixed in the grant agreement, it will not be questioned if the prices for good or services change later on.Budget allocationBudget allocation (annex 2 to the grant agreement) WP1WP2W

21、P3WP4WP5WP6WP7WP8TotalBeneficiary A250.00050.000300.000250.000300.0001.150.000Beneficiary B250.000350.00050.000100.000150.000900.000Beneficiary C100.000100.00050.000280.000530.000Beneficiary D120.00050.000100.000150.000420.000Total350.000470.000350.000200.000300.000530.000200.000600.0003.000.000Shar

22、es of the lump sum per WPLump sum = Maximum grant amountShares of the lump sum per beneficiaryYou can use the budget as you see fit as long as the project is implemented as agreed. The actual distribution of the lump sum is invisible to us.Budget transfers between work packages and/or partners requi

23、re an amendment if the consortium wants to reflect them in the grant agreement. Payment scheduleTypes of payments:Pre-financing paymentSame function and same rules as for other grantsCoordinator distributes the amount according to consortium agreement Interim payment(s)One or moreWe pay the shares o

24、f the lump sum set out in Annex 2 for the work packages completed & approved in the reporting periodPayment of the balanceCloses the financial aspects of the grantPartial payment for partially completed WPs possibleReleases the amount retained for the Mutual Insurance MechanismInterim reporting and

25、paymentAt the end of the reporting period, declare which work packages have been completed over the period. The technical periodic report should justify this.Following the assessment by the project officer, the lump sum shares corresponding to approved work packages are paid.WP1WP2WP3WP4WP5Beneficia

26、ry A250.00050.000300.000Beneficiary B250.000350.00050.000Beneficiary C100.000100.00050.000Beneficiary D120.00050.000Total350.000470.000350.000200.000300.000Payment = 350 000 + 0 + 350 000 + 0 = 700 000 Payment does not depend on a successful outcome, but on the completion of activitiesAcceptance of

27、work packagesWork packages are accepted if the activities have been carried out. We can also accept them when all essential tasks have been completed, when equivalent tasks have been carried out, or when deviations have been justified. Lump sum projects can be amended according to scientific-technic

28、al needs (or deviations can be justified in the reports). Use these mechanisms to make completion of work package feasible. Before a lump sum work package (that you declared completed) is rejected as incomplete, you are invited to respond to the observations of the project officer.If the rejection i

29、s upheld the lump sum share concerned is not paid at that point in time. You should complete the work package later and declare it at the end of any subsequent reporting period.If it is not possible to complete a work package by the end of the project (e.g., for technical reasons or due to force maj

30、eure), the lump sum is paid partially in line with the degree of completion. The decision on the partial amount is taken on a case-by-case basis. You will be able to provide observations. Acceptance of work packages in practice98% were accepted and paid in full (249 work packages).2 work packages in

31、 an intermediate report were rejected. They can be completed later. 1 work package was declared partially completed. It was paid partially as declared.1 final report was rejected for formal reasons unrelated to lump sums (wrong template). 1 lump sum project was terminated for reasons unrelated to lu

32、mp sums. The project was paid partially as declared. Lump sum work packages in H2020 total declared completedof whichEx-post controlsChecks, reviews and audits for:Proper implementation of the action (e.g. technical review)Compliance with the other non-financial obligations of the grant, e.g. IPR ob

33、ligationsEthics and integrityOpen scienceDisseminationEtc.No financial checks, reviews and audits by EU servicesKeeping recordsYou need (e.g.)Technical documentsPublications, prototypes, deliverablesDocumentation required by good research practices such as lab booksany document proving that the work

34、 was done as detailed in Annex 1You dont needTime-sheetsPay-slips or contractsDepreciation policyInvoicesany documents proving the actual costs incurredSame as for all Horizon Europe grantsGuidance and information availableGeneral presentation Lump sum funding: what do I need to know?Quick guide Lum

35、p sum grants: Why do we need them? How do they work? Reference documentsModel Grant Agreement Lump SumDecision authorising the use of lump sum contributions under the Horizon Europe ProgrammeStudiesLump sum funding works in practice assessment of the pilot in Horizon 2020European Commission assessme

36、nt of lump sum funding (October 2021)A reimbursement system based on a fixed lump sum: is it the right tool for the EU Framework Programme for Research?European Parliament (STOA) study on lump sums in Horizon 2020 (May 2022)Next stepsGuidance document coming soon:Detailed guidance for participants L

37、ump sum briefing slides for expertsAll information in one page on the F&T Portal Lump sum page just published!Improvements in Horizon Europe:Higher page limit for lump sum proposals (from work programme 2023)Personnel cost dashboard for experts IT implementation of the budget tableNext steps:Continu

38、ous monitoring of lump sum grants, adjustments if necessary Stepwise phasing in:27 lump sum topics in 2022, more from 2023Lump sum topics in 2022 (1)Work programme partTopicOpening dateDeadlineCluster 2HORIZON-CL2-2022-DEMOCRACY-02-01Network for innovative solutions for the future of democracy12-05-

39、202221-09-2022HORIZON-CL2-2022-HERITAGE-02-01A culture and creativity driven European innovation ecosystem a collaborative platformHORIZON-CL2-2022-TRANSFORMATIONS-02-01Knowledge platform and network for social impact assessment of green transition policiesCluster 3HORIZON-CL3-2022-FCT-01-04Public s

40、paces are protected while respecting privacy and avoiding mass surveillance30-06-202223-11-2022HORIZON-CL3-2022-INFRA-01-01Nature-based Solutions integrated to protect local infrastructureHORIZON-CL3-2022-INFRA-01-02Autonomous systems used for infrastructure protectionHORIZON-CL3-2022-SSRI-01-02Incr

41、eased foresight capacity for securityHORIZON-CL3-2022-SSRI-01-02Knowledge Networks for security Research & InnovationHORIZON-CL3-2022-SSRI-01-03Stronger grounds for pre-commercial procurement of innovative security technologiesLump sum topics in 2022 (2)Work programme partTopicOpening dateDeadlineCl

42、uster 5HORIZON-CL5-2022-D3-03-03Efficient and circular artificial photosynthesis06-09-202210-01-2023HORIZON-CL5-2022-D3-03-07Development of algal and renewable fuels of non-biological origin HORIZON-CL5-2022-D3-03-08Development of digital solutions for existing hydropower operation and maintenanceHORIZON-CL5-2022-D3-03-09Recycling end of life PV modulesHORIZON-CL5-2022-D4-02-01Designs, materials and solutions to improve resilience, preparedness