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Horizon Europe main financial and administrative novelties

1. Daily rate approach for personnel costs

Under Horizon 2020, a different system of calculating the personnel costs existed. Below you can find the situation for Horizon 2020.

The situation for Horizon 2020

The goals of Horizon Europe are simplification and harmonisation. The Commission wants to make the use of a Corporate Model Grant Agreement mandatory for all funding programmes. Instead of the complex model of Horizon 2020, the daily rate approach for personnel costs is a fixed provision across all programmes.

How will you calculate personnel costs in Horizon Europe?

Formula

Personnel costs = Daily rate x Days worked in the project

Daily rate calculator

How?

 Daily rate  = actual annual personnel costs for the person
215*

Example
Costs for Researcher Y in reporting period 1. Reporting period 1 runs from 01/08/2021 until 31/03/2033:

The main differences compared to Horizon 2020 are:

  • Discontinuation of the different formulas (annual and monthly) and options for productive hours (entailing difficult and error-prone calculations)
  • No more 'last closed financial year' rule
  • Instead, use of a single corporate daily rate and calendar year approach

2. Internally invoiced goods and services

The main difference compared to Horizon 2020 is that in the case of Horizon Europe, there will be a wider reliance on beneficiary's usual cost accounting practices for the unit cost calculation. There will be no application of the 25% flat rate on top of the unit cost (H2020 rules). Instead, there will be a possibility to accept actual indirect costs allocated via key drivers in the unit cost calculation.


3. Systems and Process Audits

For Horizon Europe the Commission will apply a risk-based control strategy. The objectives are to reduce the administrative burden, to carry out fewer, more focused audits and to rely more heavily on the internal auditing system of the beneficiary. In other words: more simplification and more transparency. These are the key concepts:

  • Better control rather than more control
  • A reinforced circular feedback mechanism between the two arms of control
  • Greater attention to the early detection of emerging risks of irregularity
  • Greater attention to fraud prevention and detection


4. Co-design

Under Horizon Europe, new ideas and objectives will appear. These new ideas will require a new generation of strong partnerships in order to be able to support the new EU Policies.

The Horizon Europe framework completely defines the mission characteristics and elements of governance. In particular, missions will be co-designed with the involvement of Member States, citizens and stakeholders.

As they will be working towards improving Horizon Europe and making sure that new European policies will be adopted, these key points will surely help to connect innovation and science with society and citizens, to provide free access to scientific research and to help establish new, strong partnerships for the European Union.


5. UK participation in Horizon Europe

The UK is expected to soon become an associated country to the EU’s R&I Framework Programme Horizon Europe.
A few questions and many more answers on this crucial topic.


6. Gender issues in Horizon Europe

A new concept has risen in Horizon Europe: the Gender Equality Plan. Step into the EC's presentation to learn… everything you have always wanted to know about Gender but were afraid to ask.
In addition, check the last Fact Sheet from the EC on gender.