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.
This 60% overhead is applicable for Collaborative Projects.
For proposals which are "Coordination Actions and Specific Support Actions", - an overhead of 7% is applied on all direct eligible costs.
The EC will pay 75% of the total project costs, for HEIs and SMEs
The application budget forms will comprise the following Cost Headings:
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;