European Research Council seeks to allay fears as Advanced Grants deadline nears
The EU’s rollout of a lump-sum funding model across more of its Horizon Europe research and innovation programme reached an important milestone with the opening of the European Research Council’s 2024 Advanced Grants competition.
This year’s competition—the deadline for which is 29 August—will use the lump-sum model instead of the ERC’s traditional actual-costs model. This has understandably provoked some trepidation among applicants and their institutions, which the ERC sought to allay during a recent webinar presented by Josefina Enfedaque, chair of the European Research Council Executive Agency (Ercea) taskforce on lump sums. Here are the main points that, considering the ongoing rollout of the new model, potential applicants to other Horizon Europe instruments may also be minded to consider.
1. Most elements of Advanced Grant applications are unchanged
The ERC has done much to publicise its adoption of the lump-sum model to help prepare applicants for its implementation. However, this has arguably had the effect of leading some researchers and support staff to expect wide-reaching ramifications on how proposals should be prepared and submitted, and how they will be assessed. The webinar was peppered with reassurances that such fears were unfounded.
For example, Angela Wittelsberger, head of sector in the life sciences unit at the Ercea Scientific Department, said that, while the new system does indeed bundle up all the financial aspects of an Advanced Grant proposal into one lump sum—very much like one work package—this does not mean that proposals should now be structured that way.
Wittelsberger said: “Applicants should not change the way they think about or develop their proposals, and they should not change the way they think about structuring their project. They can structure it how they see fit, with or without scientific work packages.”
Similarly, when the question of assessment and evaluation was addressed, she stressed: “The focus of the evaluation remains on the scientific merits of the proposal; it is scientific excellence only—there’s no change there.”
And although most ERC grants have only a single beneficiary, the principal investigator—which Mila Bas, head of the grant management department at Ercea, acknowledged—that is not always so. In such cases the ERC will award a lump sum per beneficiary.
Furthermore, while the use of the term lump sum may lead some applicants to expect the designation of an unalterable fixed amount once a proposal has been approved, Wittelsberger assured attendees that the ERC’s principles of “serendipity and flexibility” would not change for this competition.
She said: “We know that frontier research does not always go exactly as planned, and we will continue to be as flexible as we were in the past with deviations to the original work plan. The principle of portability—the right of the principal investigator to transfer their grant to a different host institution—also remains valid.”
2. For applicants, changes mostly concern the budget forms
With the lump-sum model, instead of grant-winners tracking their costs and claiming them back after carrying out their research, applicants submit extra detail on budget in their grant proposal and receive payment when they reach agreed milestones. In the case of Advanced Grants, this will happen in two instalments: at the beginning and at the end of the project.
The changes to application requirements, therefore, mostly hinge on providing that extra detail. In particular there are changes to how both personnel and equipment costs are submitted.
For personnel costs, the budget table now has an additional column to be filled in with the number of person-months—a measurement taking into account the number of people working on the project and the amount of time each person spends on it—per staff category. (There is a further additional column in which the average monthly cost is automatically calculated.)
For equipment, an extra table—the ‘equipment depreciation table’—has been added to the list of mandatory documents, which also requires some input from applicants, with some columns calculated automatically. Bas stressed that, for the 2024 round, even applicants with projects that do not include any equipment costs must complete this table.
3. Assessment panels will pay closer attention to the budget
The lump-sum model sets the overall amount that beneficiaries are entitled to receive during the evaluation of proposals (although this can be adjusted as the project advances—see below). Logically then, there is greater scrutiny of proposal budgets than under the actual-costs model.
This is particularly true regarding assessment of personnel costs, Wittelsberger said, as the panel will not only assess whether the number of personnel is appropriate for the project but also consider the related costs. Both panellists and applicants have access to historical ERC personnel cost data via a dashboard on the ERC website to guide them, Wittelsberger continued. The data provided is granular, with costs broken down by staff category and country.
The ERC provided this purely for benchmarking, she said: “The idea is not that you have to align with the historical data when you plan for your personnel costs [but that] you should plan and request what you think you will incur…If you find you are not aligned, that [should encourage] you to provide an explanation of why this is.”
Bas agreed, adding that while applicants do not have to follow the historical data, they should make sure they align with their institutions’ accounting practices and personnel costs grid.
One attendee mentioned that postdocs in their institution are typically paid 80 per cent more than the rates for their country in the Advanced Grants dashboard. They asked what kind of justification the ERC would expect beyond “those are our actual current salary rates”.
Bas replied: “In most cases, that’s a very good justification [if] you have that salary grid in your institution.” She reminded applicants in similar situations to put such a justification “very clearly in the proposal”.
Another attendee asked what the outcome would be if the panel concludes that the proposal fulfils the scientific excellence criterion but its budget is not well-dimensioned. Bas replied that even if the budget would receive closer attention with the lump-sum system, scientific excellence remains of paramount importance. Such a bid “will be in the same place in the ranking list” as it would have been in the actual-cost model, she said.
Wittelsberger added: “The first thing [the panel] would do is ask a question about it in the interview. And based on the explanations and justifications provided, they might, or might not, consider a cut in a particular cost, as they do now.”
Wittelsberger advised applicants not to worry that the assessment panels would be overbearing. “Our panels will not start to micromanage the budget or the personnel costs just because we have moved to a lump-sum model,” she said. “Mostly, the details of the budget will be looked at by experts once the rank list has been established, but our panels do this already. Under the lump-sum model, this step of the assessment has an increased importance because, remember, there’s no additional checks on costs anymore during the lifetime of the project.”
4. Post-award grant management should be easier
Ease of post-award management is one of the major drivers of the EU’s move towards the lump-sum model. No timesheets are required to be submitted, and there will be “no financial audits, no certificate of financial payments”, according to Bas, who then laid out how financing will proceed.
The ERC will pay 80 per cent of the budget as pre-financing, she said, a maximum of 30 days after the grant agreement is signed. As with the existing model, there will be a scientific mid-term report to assess project progress and whether any deviations from the project plan have taken place, requiring amendments to the budget, but the mid-term report “will not be associated with a payment”, Bas specified.
Payment of the remaining 20 per cent, or the appropriate amount in the case of modifications, will be made following a final report and a scientific assessment. As Wittelsberger stressed at the start, payment is dependent entirely on the work having been completed, not on the outcome or results.
This is an extract from an article in Research Professional’s Funding Insight service. To subscribe contact sales@researchresearch.com