Adjustments in FP7 and Horizon 2020

Adjustments in FP7

In FP7, it is possible to make adjustments to financial statements (Form C) submitted for previous reporting periods if the actual costs were different from those originally reported to the Commission. Such adjustments require the submission of a supplementary Form C for the relevant period, where the details of that adjustment will appear. The Commission's interactive guidance on the process of adjusting financial claims can be found on the Participant Portal.

Adjustments in Horizon 2020

Adjustments to personnel costs were initially not allowed at all in Horizon 2020 as the costs had to be calculated on the basis of the last closed financial year (annual hourly rate). Under this method, personnel costs cannot be adjusted/changed, following a recalculation of the annual hourly rate, even if recalculation following the closure of the financial year that was on-going at the end of the reporting period would give another result. A correction is only possible (and must be made) if there was a mistake in the calculation of the hourly rate that was used to declare those costs, for example, due to a clerical error.

However, the recent introduction of the monthly hourly rate for calculating personnel costs in Horizon 2020 made it again possible to adjust personnel costs submitted in previous reporting periods, when using this method. For example, if a beneficiary cannot claim part of a basic remuneration generated over a period longer than a month in one reporting period, because the amount of e.g. merit pay is not known at the time of reporting, it can adjust the hourly rate, and consequently also the entire personnel cost, in the next reporting period.

Furthermore, if the beneficiary choses to change from using the 'last closed financial year' option to the new monthly option and recalculate the previously submitted costs, it will also be able to declare the differences (positive or negative) as adjustments in the next reporting period, bearing in mind that it is not possible to recalculate the costs using the new monthly option on grants where the final reports have already been submitted.

The introduction of adjustments in the monthly option of calculating personnel costs has had no effect on adjustments in the 'last closed financial year' option and, as explained above, these are only possible in case of genuine errors leading to the incorrect calculation of the annual hourly rate.

Jump to page content