Eu seventh Framework Programme Brief outline of Financial Aspects in fp7 Eligible costs

For the first time, this current EU Framework Programme will allow the costing in of the time contributed by permanent members of staff.

Higher Education Institutes and SMEs who are unable to identify their indirect costs for a specific project (University of Bradford at present) are able to choose the flat-rate overhead, referred to as "Special Transition Rate" of 60% payable on all direct eligible costs.

The application budget forms will comprise the following Cost Headings:

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  RTD
  
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  Demonstration
  
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  Management
  

In a Collaborative Project, most of the costs will be for RTD costs.

Demonstration costs are for work developing prototypes, and work on trials. (This type of work is not normally carried out by Universities and is reimbursed at a rate of 50% by the EC).
Management Costs are funded at 100%, but should amount to a total which does not exceed 7% of the total costs. Costs can include coordination work and costs of producing Certificates on Financial Statements/Audit Certificates.
Eligible costs are defined as being;

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  Actual
  
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  Incurred by the beneficiary
  
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  Incurred during the duration of the project
  
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  Determined in accordance with the usual accounting and management principles and practice of the beneficiary
  
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  Used for the sole purpose of achieving the objectives of the project
  
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  They must be recorded in the accounts of the beneficiary.
  

The EU FP7 “Guide to Financial Issues relating to FP7 Indirect Actions” is available at the following from the following link;