Understanding the Horizon Europe Mutual Insurance Mechanism (MIM)
The Horizon Europe Mutual Insurance Mechanism (MIM) is designed to protect the financial interests of the EU budget by simplifying administrative processes and providing coverage for grants. It started with the FP7 projects and continues through Horizon Europe projects. Any grant previously covered by the Participants Guarantee Fund (PGF) and specific Horizon Europe grants are eligible for MIM coverage. The mechanism is managed daily by a Designated Service, and coordinators play a crucial role in communication with granting authorities. MIM operates through three main activities: Contributions, Reimbursements, and Interventions.
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Horizon Europe Mutual Insurance Mechanism (MIM) Coordinators' day Designated service Mutual Insurance Mechanism Marijke E. Forsse Impens - 08-06-2023 1 Research and Innovation
Coordinators day 2023 (1) What is the MIM? (2) When did it start? (3) Why do we have a MIM? (4) Who participates? (5) Where is it? (6) How does it work? Contribution Reimbursement Intervention 2
(1) What is the MIM? Former PGF = Participants Guarantee Fund (FP7-H2020) MIM = Mutual Insurance Mechanism purpose protect the financial interest of the EU Budget https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32021R0695&from=EN (REGULATION (EU) 2021/695 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 28 April 2021 establishing Horizon Europe Art.37) 3
(2) When did it start? PGF FP7 Projects of the FP7 (Commission, Executive Agencies & EUSPA) 2007-2013 PGF H2020 Projects H2020 (Commission, Executive Agencies & EUSPA & JU) 2014-2020 MIM HE Projects HE (Commission, Executive Agencies & EUSPA & JU + art. 185) 2021-2027 MIM 4
(3) Why do we have a MIM? Simplification administrative management SME/Start-up no bank guarantee required 5
(4) Who participates? Any grant that was already covered by the former PGF and HE grants which stipulate the coverage by the MIM. Note: (a) refers to the decision establishing FP7, (b) refers to the decision establishing H2020 and (c) refers to funding bodies which thus far were not covered by the MIM, but can be covered under HE 6
(5) Where is it? MIM daily management by Designated Service As Coordinator you communicate with your granting authority as they initiate any action required RTD.I.2 Finances, Public Procurement & Compliance 7
(6) How does it work? 3 main activities: Contributions Reimbursements Interventions = CRI https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32021D1221(01)&from=EN (COMMISSION DECISION of 20 December 2021 on the financial management of the mutual insurance mechanism established under Regulation (EU) 2021/695 of the European Parliament and of the Council for actions under the Seventh Framework Programme, Horizon 2020, Horizon Europe and Euratom Programmes) 8
Contributions & Reimbursements CONTRIBUTION 5% Max. EU GA amount Paid with 1st PF INTERVENTION MIM CAPITAL REIMBURSEMENT (=release of the contribution) ALWAYS at the same time as the payment of the balance but in a separate transaction Interest generated from the capital invested on the financial markets MIM Asset Manager (DG BUDG) INTEREST Consortium Granting Authority 9
Interventions 2 types INDIRECT (default) DIRECT (conditional) -- payment MIM to -- -- payment MIM to -- Granting Authority Granting Authority -- payment to -- -- payment to -- Coordinator Coordinator 10
Interventions 2 types Indirect (default): When? At any time during the life cycle of the grant agreement. Conditions? The beneficiary must be terminated from the grant agreement, ideally with a signed amendment by both contracting parties. Remember: beneficiary cannot be terminated from the grant agreement when the action is finished (Art.3-duration) except the Coordinator. 11
Interventions 2 types Direct (conditional): When? At the beginning of the life cycle of the project as this intervention will cover estimated budget, not costs already incurred. Conditions? 1. The action is ongoing (Art.3). 2. Beneficiary terminated from the grant agreement with an amendment1*, signed by both contracting parties. 3. Consortium agrees to continue the action with the same objectives, hence amendment2* to add a new beneficiary or redistribute tasks. 12 * These changes to the grant agreement can also be done in 1 single amendment.
Interventions supporting documents Important Note: The Designated Service of the MIM will request a copy of a bank statement as proof of payment for any amount paid to the terminated beneficiary and for which you are requesting an intervention. Therefore: please make sure these are available to you as coordinator each transaction carries a clear and unambiguous reference to the appropriate grant agreement 13
Thank you! 14
