Abstract

In an effort to reduce existing complexities associated with the EU’s funding programme, Horizon Europe has expanded its use of the Lump Sum budget model (in addition to the so-far prevailing actual costs model). The plan is likely to expand its presence even more in the future.

Since Research managers and funding advisors will have to support more lump sum model grants, it is essential for them to thoroughly understand how this model works.

In that context this session will tap into the following issues:
How does Lump Sum work?
What are the unique added values of this model?

But we don’t stop here.

It is commonly perceived that lump sum grants have the potential to make the programme simpler, and perhaps to be a more effective method of financial management compared to the traditional actual costs model.

In many cases this is true, but not always…

Actual experience and a closer look at how the lump sum model really works unravels discrepancies, complexities and issues that anyone applying to these grants should be aware of. The EC put the focus on its attempt to ease the ‘hard’ requirements of the traditional budget reporting practice. However, the result is not as simple or as relaxed as one may think.

To begin with, we take a deeper look into the EC’s communications about this model in four areas:
Budget planning in the pre-award phase. Is it simple at all?
Budget Flexibility in the post-award phase. Is it truly flexible?
Record-keeping and potential financial audits. Are we really excused from monitoring expenses? Are we really dismissed from potential financial audits?
Payment against completed work packages. What are the implications of that? How is it going to impact the implementation of the work plan? What about the mutual responsibility of the partners? What should be the manifestation of that in the consortium agreement (i.e. the DESCA template)?

Therefore, if we continue to perceive this model to be simple, and oversee budget and execution activities as such, the result can lead to financial management mistakes after all.

In line with the above, we will expand the scope of this session and address also these critical questions stemming from the lump sum model:
What do you need to know, as RMAs, to help your applicants design a suitable lump sum proposal?
How you, as RMAs, should guide the financial & legal departments of your institution to prepare to accommodate the implications of a lump sum grant?
What are the existing issues, pitfalls, and discrepancies that RMAs should be aware of?

By the end of this session, we hope to provide participants with a much more realistic understanding about the lump sum model in Horizon Europe grants and how to work with this model successfully in upcoming applications.