The European Commission has published an updated version of the 'Guide to Financial Issues related to FP7 Indirect Actions’.

Apart from an adaptation of the terminology due to the entry into force of the Lisbon Treaty, the main following clarifications and additional information have been introduced:

Updates

• In accordance with the recently updated Guidance Notes for Auditors and Beneficiaries: Clarification on the acceptance and use of the Certificate on the Methodology for both personnel and indirect costs as well as the Certificate on the Methodology for average personnel costs
• Update on the eligibility of direct taxes and social charges related to personnel costs based on Based on the Communication regarding simplification of the recovery process in the framework of the implementation of the audit strategy under the Framework Programmes
• Updated information on the use of flat rates on subsistence costs and accommodation.
• Updates and clarifications on the flat rates of 20% and 60% for indirect costs including the extension of the duration of the transitional 60% flat rate as well as changes of indirect costs methods in general
• Updates based on the modification of the ECGA in December 2009 allowingnon-profitpublic bodies, secondary and higher education establishments and research organisations and SMEs to keep the 75% reimbursement rate for RTD activities and the 60% transitional flat rate for indirect costs even if they lose their statusduring the life of the project.
• Update on the recent developments on extrapolation following an audit and simplification of the recovery process including the use of flat rate corrections.
• Interest yielded by the pre-financing paid by the Commission: possible exonerations and conditions.

Clarifications

• Additional explanations on conversion rates.
• Additional explanations on subcontracting (subcontracts to affiliates)
• Compatibility of FP7 funded projects with other sources of EU/Euratom funding (e.g. CIP, Structural Funds)
• Adjustments to costs incurred in previous periods: Any adjustment requires the submission of a supplementary Form C for the period, where the details of that adjustment will appear.
• Additional explanations on the use of timesheets and time-recording requirements in general and specifically in the context of the Certification on Methodology (CoM & CoMAv).
• Information on the eligibility criteria for internally invoiced costs.
• Explanations on the concept and consequences of 'force majeure' in the frame of the ECGA.
• Clarifications on Research for the benefit of CSOs (Civil Society Organisations): definitions and funding limits.