Common use of Article II Clause in Contracts

Article II. 14 Who Mandatory for all beneficiaries based on conditions set up in the GA Optional and foreseen for multiple beneficiaries based on criteria to be defined by the Commission (see above). Mandatory for beneficiaries which will use average personnel costs unless a certificate on the Methodology is provided. In this case, the certificate on the Methodology replaces the certificate on average personnel costs If total contribution < €,375,000 no certificate For beneficiaries with multiple participations The method has to be consistent with the management principles and usual accounting practices of Condition For projects > 2 years: Interim and/or final payment Each time that the cumulated EC contribution is not yet certified > €375.000 For projects ≤ 2 years: If total contribution > €375,000 Only one CFS at the final payment. Exception: When Certificate on the Methodology is accepted by the Commission, CFS not required for interim payment. the beneficiary The average costs cannot differ significantly from actual personnel costs. Scope The project and reporting periods concerned. It covers all eligible costs not yet certified By default, all the beneficiary's projects throughout FP7 By default, all the beneficiary's projects throughout FP7 Timing For projects ≤ 2 years: at the final payment For projects > 2 years: When criteria are met At any time of the implementation of FP7 but at the earliest on the start date of the first GA signed by the beneficiary under FP7 At any time of the implementation of FP7 but at the earliest on the start date of the first GA signed by the beneficiary under FP7 Form Detailed description verified as factual by external auditor or competent public officer Independent report on factual findings (Annex VII Form D) Independent report on factual findings (Annex VII Form E) Independent report on factual findings (relevant part of Form E) Advantage s Applying the CFS will increase the certainty on the eligibility of costs for the beneficiary When a Certificate on the Methodology is accepted by the Commission, no CFS required for interim payments If the Methodology is accepted, no risk of rectification after audit if the method is applied correctly If the Methodology is accepted, the average costs are deemed not to differ significantly from actual costs. If the Methodology is accepted, no risk of rectification after audit if the method is correctly applied.