D.2 Financial Rules of Horizon Europe - Budgeting and Reporting

This course provides a detailed explanation of the general financial rules of Horizon Europe. We will explain the difference between budgeting and actual cost reporting, and their everyday impacts on managerial and accounting practices, diving into the rules of eligibility and what makes a cost direct. 

The first day will be allocated more on proposal writing and budgeting (especially lump-sum) and the second day is focusing on financial reporting – the basic rules to remember.

Unique workshops will help the participants to experience the learning by doing approach – how to calculate the budget based on a draft work plan and how to report any costs if we have timesheets, payrolls and contracts of virtual employees working on a virtual project. Just the basics, like the daily rate calculation and some invoices to be checked for their eligibility.

AGENDA                                                                                                                                                                     DAY 1

08:45 –  09:00  Registration and Welcome       

09:00 – 09:15   Event Opening     

09:15 – 10:15   Guide to the Financial Rules 

Detailed introduction to the financial rules of Horizon Europe with  real-life examples:

• Basic facts – funding schemes: cost reporting vs lump-sum funding
• Importance of the budget and of the resources considering reporting
• Basic financial principles in theory and practice
• Form of Grants, Forms of Costs
• Eligible and non-eligible costs, Direct and indirect costs 

(10:15 – 10:30 Coffee Break)

10:30 – 11:30              Resource Planning and Budgeting in actual cost-grant Proposals                                          

• Proposal budget vs. project spending
• Estimating costs: Personnel, travel, subcontracting and other direct costs
• Coordinators vs. partners in budget planning
• Resource planning and budgeting tools
• Examples of budgeting process in small/medium vs. large-scale projects

(11:30 – 11:45 Coffee break)

11:45 – 12:30              Resource Planning and Budgeting in Lump sum Proposals                                         

• Budget sheet and macros
• Estimating cost items and justification of the costs

        (12:30 – 13:15 Lunch)

13:15 – 15:00      Workshop: Resource Planning and Budgeting in HE Proposals (actual and lump sum)

Day 2

09:00 – 10:15     Direct Personnel Costs

• Introducing the cost categories 
• Changes of cost categories in Horizon Europe
• Personnel costs calculations:

         o Employees and other employment contracts

         o  Number of productive hours to consider

         o  Measuring days (HE) and hours (H2020) – how to handle?

         o Transforming hours into days?

• And many more….

      (10:15 – 10:30 Lunch Break)

10:30 – 11:45       Subcontracting and Purchase costs, Research facility costs, Indirect costs, Receipts

• Subcontracting and other third parties – what is what?; Special third-party protocols;
• Purchase costs vs. Other direct costs – what’s the difference?

        o Travel costs – what to consider?

        o Consumables and small services;

        o Equipment and assets – calculating the costs of the research infrastructure;

• Internally invoiced items
• Indirect costs – does it need to be proved?
• Funding Rates and Receipt calculations;
• Certificates on Financial Statements, Certificate on Methodology, etc. System and Process Audits;
• Guarantee Fund vs Mutual Insurance Mechanism; Payments and the exchange rates.

       (11:45 – 12:15 Lunch break)

12:15 – 14:00       Workshop – Financial Reporting of Horizon projects

Introduction - Participants will prepare a financial statement for a virtual Horizon Europe project, based on “mock-up” invoices, salary slips, receipts and bills, time records and certificates, which are generated individually for each participant. 

        (14:00 – 14:15 Coffee Break)

14:15 – 15:00      Understanding the Financial Reports

Pragmatic approaches in reporting; Point-by-point assessment of the prepared financial reports: Format, content; overall principles, possible bottlenecks, what should and should not be included.