FP7 Financial basics Quizz

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FP7 Financial basicsQuizz

• Koos DE KORTE
• Belgrade, January 2008

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Definitions

• EC European Commission
• FP Framework Programme
• SME Small- Medium-sized Enterprise

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Question 1

• In a project, an SME has real indirect costs of
  71.
• What will be the total cost for the project of a
  person with 20 person-month of research planned
  for that project if the hourly rate is 30 and a
  month 148 hours?
• 1.A / 88 800
• 1.B / 151 848
• 1.C / 113 886

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Question 2

• The following can be funded at 100
• 2.A / The filing of a patent application
• 2.B / A study on the societal impact of a
  technology created by a project
• 2.C / The testing of the prototype of a
  technology created by a project
• 2.D / The organization costs for a networking
  seminar.

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Question 3

• What is the meaning of the non-profit principle?
• 3.A / The EC grant that reimburses project costs
  cannot exceed 100 of the total project costs
• 3.B / The contractors are not allowed to make
  profit by exploiting the results of the project.
• 3.C / The EC grant that reimburses project costs
  cannot be used for other purposes than those of
  the project.
• 3.D / None of the above.

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Question 4

• If the project will have receipts to take into
  account in its financial statement.
• 4.A / If it organizes a workshop and charges
  entrance fees.
• 4.B / If One partner funds part of the activities
  of another project partner
• 4.C / If It generates income the sale of a
  technology produced by the project
• 4.D / If a project partner receives a financial
  contribution from a third party. 

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Question 5

• In the case of an EC grant that reimburses costs,
  which costs are reimbursed?
• 5.A / All the costs
• 5.B / Only the so-called eligible costs
• 5.C / All the costs except the subcontracting
  costs
• 5.D / None of the above

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Question 6

• When is the income generated in using the
  knowledge resulting from the project considered
  as a receipt to the project?
• 6.A / Always
• 6.B / Only when the project is successful.
• 6.C / Never
• 6.D / None of the above

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Question 7

• Which are the type(s) of activities that are
  always 100 reimbursed by the EC?
• 7.A / Research Management activities
• 7.B / Management activities only
• 7.C / Management training activities
• 7.D / None of the above

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Question 8

• When choosing the lump sum financing option,
  partners from the following countries are
  considered as coming from lower middle income
  countries.
• 8.A / Albania, Bosnia and Herzegovina, Paraguay
• 8.B / Lebanon, FYROM, Argentina
• 8.C / Algeria, Chile, Egypt
• 8.D / Jordan, Mexico, Russian Federation.

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Question 9

• Is VAT (Value Added Tax) an eligible cost?
• 9.A / Yes
• 9.B / No
• 9.C / Sometimes
• 9.D / None of the above

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Question 10

• How must the contractors record the project
  costs?
• 10.A / The project costs must be recorded in the
  contractors accounts following the contractors
  usual accounting principles.
• 10.B / The project costs must be recorded in the
  contractors accounts according to specific FP6
  rules defined by the EC.
• 10.C / The project costs must be recorded in
  separate accounts according to the contractors
  usual accounting principles.
• 10.D / None of the above

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Question 11

• Are the preparation costs incurred before the
  official starting date of the project eligible?
• 11.A / Yes
• 11.B / Yes but only if the project is selected by
  the EC
• 11.C / No
• 11.D / None of the above

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Question 12

• What is the general mathematical relationship
  between direct and indirect costs?
• 12.A / Indirect costs equal 20 of direct costs
• 12.B / Indirect costs equal 7 of direct costs
• 12.C / Indirect costs equal a percentage of
  direct costs
• 12.D / None of the above

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Question 13

• On which costs are calculated the overheads?
• 13.A / On all costs
• 13.B / Only on eligible direct costs
• 13.C / On all eligible direct costs except
  subcontracting
• 13.D / None of the above

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Question 14

• The costs related to building rental and
  maintenance are considered as
• 14.A / Subcontracting
• 14.B / Direct costs (management)
• 14.C / Overheads/Indirect costs
• 14.D / None of the above

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Question 15

• Under which condition(s) are subcontracting costs
  considered as eligible costs?
• 15.A / The subcontracted task cannot be performed
  by the contractor and is necessary to the
  project.
• 15.B / The subcontracted task cannot be performed
  by the contractor, and is not a core element of
  the project.
• 15.C / The subcontracted task cannot be performed
  by the contractor, and is necessary to the
  project, and is not a core element of the project.

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Question 16

• Is it allowed to subcontract the management of a
  project?
• 16.A / No
• 16.B / Yes, but only if the coordinator is
  deficient.
• 16.C / Yes, but only if the EC has approved it.
• 16.D / None of the above

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Question 17

• How does the EC pay the grant?
• 17.A / Each partner receives periodic advances
  from the EC
• 17.B / Each partner is paid by the EC at the
  beginning of the project
• 17.C / The coordinator receives periodic advances
  from EC and redistributes them to each partner
• 17.D / None of the above

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Question 18

• What is the management report?
• 18.A / The financial report
• 18.B / The coordinators report
• 18.C / The managers report
• 18.D / None of the above

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Question 19
Which currency must be used in the financial
reports? 19.A / Contractors local
currency 19.B / Euro 19.C / Belgian
currency 19.D / None of the above
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Question 20
What is the EC funding rate for an audit
certificate? 20.A / 50 funding 20.B / 75
funding 20.C / 100 funding 20.D / None of the
above  
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Question 21
If an SME project partner uses the transitional
60 flat-rate for its indirect costs. If it grows
ceases to be an SME on Jan. 1st, what
happens? 21.A / it should keep on using the 60
rate until the end of the project. 21.B / it
must change and use the 20 flat-rate for its
indirect costs. 21.C / it must revise indirect
costs statements made since the projects start
21.D / none of the above.
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• Thank you for your participation!
• Koos de Korte
• SenterNovem
• The Hague, Netherlands
• Phone [phone]
• Email k.dekorte_at_egl.nl