Overheads: Flat rate vs. real

Hello, I have been coordinating an FP6 coordination action (CA). The EC funding was 100% with a flat rate of 20% for overheads. We developed the budget according to that and did the 2 first cost statements also with that rule. Then they informed us that we followed a wrong practice and we should actually (for the FC and AC partners) report the real overhead rate and then request from the EC only the 20%. What followed was a mess as we had to introduce adjustments to previous periods to correct this for the whole duration of the project.

Now I am a partner in an FP7 CA where the funding is 100% and the overheads a flat rate of 7%. the coordinator is assuring us that we should report only the 7% and not the real rate. Has something changed in FP7 in this regards? Does anyone have relevant experience or inforation?

Thank you

Marie Curie Early-Stage Researchers - Employment Status

The Commission has begun under FP6 to force institutions onto employment contracts for their postgraduate Marie Curie students in Research Training Networks. Many have resisted because of the inherent difficulties of this approach. However, it now appears that we must employ these students from now on or reject ITN contracts with early-stage researchers.

I would be interested to hear from other universities in the UK and other countries how they have addressed these problematic issues, for example (not a comprehensive list, feel free to raise other issues you have encountered):

1) A contract of employment usually implies a mutuality of obligations. A service is provided and payment is made for this service. In the case of a Marie Curie research student, it is arguable whether any service could be said to be made to the University.

2) Discipline, Performance Management, Grievance - This is potentially the most problematic area. Where problems arise with a Marie-Curie student’s’ health or performance, or where a student might wish to raise a complaint, there are likely to be two separate sets of procedures in place to deal with such issues. Which one should apply?

3) Health and Welfare – students and staff have access to a range of different services in relation to health and welfare, with students having significantly more beneficial terms with respect to accommodation, pastoral care, counselling, financial benefits for childcare, etc.

4) Equality - as the employees, the Marie Curie students would be on fixed term contracts for the period of the award, they would be covered by the terms of the EC fixed term workers regulations which require the Employer not to treat them any less favourably than other employees. We would therefore be obliged to offer them the full range of benefits offered to staff, including:
- occupational Maternity, Paternity, Birth and Adoption support leave,
- access to flexible working
- access to the merit pay scheme
- redundancy payments at the end of the contract
- assistance with redeployment at the end of the fixed term.
Needless to say, none of the above would be covered by the Marie Curie award.

5) Recruitment – students and staff are recruited through different processes. As employees, it would be essential that before appointment, the “Procedures for confirming an appointment”, which confirm entitlement to work in the UK and show proof of ID and address were followed.

6) Payment - The complex nature of the funds under the Marie Curie scheme which are made up of a number of allowances make administration of payment through the payroll complex. This is in part since, as employees the students would be entitled to cost of living rises and incremental progression and inclusion in the merit award scheme, and cannot therefore be paid a flat fee over three years. In addition the awards are made at a fixed rate for the full period of the award, and funds awarded by the scheme are awarded in Euros so there may be currency fluctuations.

I hope we can get a discussion going on this subject that has been an issue for many of us of the past couple of years!

Pre-financing

The new Financial Guarantee Scheme is FP7 seems to be a good thing. But if the Commission keeps back 5% of the fuding, that presumably means we get only 75% up front, not 80% as before. So then we have a potential cash-flow problem in the project. Is that right? Or have I misunderstood it?