Validation of legal entities and financial capacity check
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1 Validation of legal entities and financial capacity check EURATOM Fission Info Session Francisco DE LA TORRE Head of Sector Participant Validation and Support September 15th, 2015
2 Outline of the Presentation 1. Validation workflow 2. Documents for validation 3. The LEAR 4. Financial Viability 5. Bank accounts 6. Messages and documents via PP 7. Guidance Documents
3 1. Validation Workflow (i) VALIDATION REGISTER Core Data H2020 LEAR FVC Status On the basis of documents REA VS & DG BUDG validate data New participants via the Beneficiary Register on the Participant Portal Attribution of status and validated PIC number Mandatory LEAR nomination process on basis of blue-ink signature If needed, financial viability check COMMUNICATION VIA PARTICIPANT PORTAL'S BENEFICIARY REGISTER
4 1. Validation Workflow (2) The validation of a participant is unique and valid throughout the entire H2020 programme FP7 validated entities were migrated into H2020. During the validation of a legal entity, the REA VS verifies: Legal existence H2020 status of an applicant Extended Mandate of the LEAR Financial viability (when required) Validation is required for all entities entering into grant agreements (beneficiaries or third parties)
5 2. Documents for validation (i) Legal entities form (template to be completed and signed) VAT extract (if applicable) Copies of Registration extract (for private organisations), law/decree (for public entities), treaty (for international organisations) Copies of Statutes (to verify non-profit status)
6 2. Documents for validation (ii) Research organisations: 2 conditions have to be met: Entity must be non-profit. This status is verified by the REA VS Entity performs research activities. This status is based on self-declaration (no legal documents required) NB Definition of non-profit organisations: "A legal entity which, by its legal form, is non-profit making AND/OR which has a statutory obligation not to distribute profits to its shareholders or individual members "
7 2. Documents for validation (iii) SME status via the web-based SME wizard (no documents required for VS) SME wizard is part of the Beneficiary Register More than 22,000 self-assessments have been done via the wizard REA VS will carry out ex-post checks of the SME status on a random basis and/or upon request of the operational services In this case, supporting documents will be required
8 3. The LEAR (i) Under H2020 the LEAR nomination is mandatory because of the electronic management principle governing programme implementation. The LEAR: (i) Notifies the EU of changes in legal data/status; (ii) Submits FVC documents if required; (iii) Nominates in the PP the persons who act as legal representatives and signatories for the organisation and (iv) Nominates in the PP the persons who sign financial statements. (v) Informs own staff about the organisation's PIC The re-validation of FP7 LEAR's started in March The REA VS contacted all most recurrent FP7 clients and has already validated more than 19,000 LEARs with extended H2020 mandate.
9 3. The LEAR (ii) Documents required for LEAR's extended mandate: 1.Letter of Appointment (duly signed by legal representative) 2.Roles and Duties (duly signed by LEAR and legal representative) 3.Declaration of Consent (duly signed by legal representative) 4.Copy ID card of the LEAR 5.Copy ID card of the legal representative 6.Proof of empowerment of the legal representative Original signed forms (pdf copies and electronic signatures are NOT accepted) to be sent via postal mail to: Research Executive Agency-Validation Services COV2 13/132 B-1049 BRUSSELS Belgium
10 3. The LEAR (iii) Once LEAR data validated in the Beneficiary Register: 1.The LEAR's name and address are sent to service-desk for creation of the LEAR account Name and for LEAR account shall match name and address of the known ECAS account New LEAR or new = new account 2.REA VS will confirm the LEAR appointment 3.PIN code is usually sent by service-desk via postal mail Urgent request for PIN code: send an to EC-Research- OR NEW Provide in the LEAR appointment form the mobile phone number of the LEAR, which will be used by the service-desk only to communicate the PIN code
11 4. Financial Viability Check (i) In general, the financial capacity is checked if: The beneficiary is a coordinator, and The requested EU funding for the project is EUR. Applicants for mono-beneficiary grants are not considered as 'coordinators' A financial viability check can be performed on other beneficiaries at the request of the EU service in charge of the project
12 4. Financial Viability Check (ii) The FVC assessment is carried out by the REA via the Beneficiary Register. Ratios (weak, acceptable, good) are displayed online At proposal level, coordinators are asked to self-declare on their financial capacity. For this self-declaration a tool is available in the Participant Portal, embedding the same calculations of the formal FVC. Those results, though, are not binding for EU services and if needed later on, a FVC will be performed by the REA VS against supporting documents Final decision on the participation of an applicant with a 'weak' FVC result (based on the ratios) is taken by the EU services responsible for each individual project
13 5. Bank accounts Search for bank account is available in Participant Portal Grant Management Service (PPGMS) when session is open If no account exists, PPGMS displays explanatory message on how to request the validation of a BA Coordinator contact should inform the LEAR to start BA creation request (upload of documents via the Beneficiary Register) REA VS will launch BA creation and inform LEAR when validation is completed Pdf copies are accepted. Original forms not required
14 6. Messages and documents via PP (i) Upload of documents for validation can be done from the Participant Portal, under the tab corresponding to the specific document requested (pdf copies accepted, except LEAR) For doing so, select 'my organisations' on the Participant Portal, and click on 'View Organisation' or 'Modify Organisation' This can be done by the LEAR (for a valid PIC) or selfregistrant (for a declared PIC) Check messages under PIC for follow-up requests from REA VS
15 6. Messages and documents via PP (ii)
16 6. Messages and documents via PP (iii) Messages can be exchanged via the Participant Portal and can be seen in the system. Messages from the REA VS are also sent as to the participant.
17 6. Messages and documents via PP (iv)
18 7. Guidance documents The H2020 Grants Manual is published on the Participant Portal g/reference_docs.html#h2020-grants-manual-lev It includes a dedicated section on the legal and financial validation rules as well as the LEAR role and tasks.
19 Thank you for your attention! Questions?
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