PowerPoint Presentation

[Audio] We will start with module 1, which is titled "Principles of financial management"..

[Audio] Let's begin by looking at why financial management is so critical in Digital Agriculture initiatives. Often, when we talk about innovation, the focus is entirely on the technology—the sensors, the data platforms, the AI models. These are important, of course, but even the best technology can fail if the financial side is not managed properly. Projects with strong financial planning are consistently more resilient and sustainable. In Digital Agriculture, financial management ensures that innovations move beyond pilot phases and become operational, scalable, and impactful solutions. For example, imagine a project introducing precision irrigation sensors across several farms. Without proper budgeting, the project could run out of funds before installation is complete, causing delays that can ripple across the entire initiative. Financial management also protects the relationships within the consortium. If one partner cannot meet its obligations due to cash flow issues, it can strain collaboration and delay reporting. Strong financial stewardship is about safeguarding both the project's vision and its outputs, ensuring that the work we do delivers tangible results to farmers, researchers, and stakeholders..

[Audio] Next, let's focus on planning and resilience. Evidence from research shows that organisations with robust financial planning are better equipped to handle unexpected shocks, such as delayed grant payments or sudden increases in costs. This is highly relevant to Digital Agriculture projects, where funding often arrives in stages and field activities may have seasonal cost spikes. Structured financial planning allows project teams to anticipate risks, sequence activities appropriately, and maintain momentum even when challenges arise. For instance, if a multi-country project is scheduling field trials, careful financial planning ensures that funds are available during peak activity months, preventing delays. Financial planning is not simply an administrative task. It is a strategic tool that protects the integrity of the project and helps teams adapt to uncertainties. By planning ahead, we ensure that innovation is not disrupted by financial bottlenecks, and that technical milestones and objectives are achieved on time..

[Audio] Now let's consider financial literacy and transparency. In multi-partner projects, transparency is essential. Everyone—from technical leads to coordinators—must understand the financial rules and responsibilities that apply to the project. When all partners have financial literacy, the likelihood of errors decreases, internal coordination improves, and trust is strengthened across the consortium. This trust extends to funders and stakeholders as well. When you can clearly show that every euro is used effectively and in line with project objectives, it enhances credibility and can make it easier to secure follow-on funding. Transparency also enables better decision-making. If costs in a work package exceed expectations, early detection allows corrective measures, avoiding last-minute problems during reporting or audits. Financial literacy and transparent reporting are therefore strategic tools, not administrative burdens. They build confidence, reduce risks, and support both the project's performance and its long-term sustainability..

[Audio] Let's move to long-term sustainability. Financial management is not just about meeting reporting deadlines or complying with rules; it directly influences whether innovations survive beyond the project's lifetime. Projects that manage finances effectively are better positioned to secure additional funding, replicate successes, and integrate their solutions into larger systems. For example, a project developing a crop disease early-warning system may succeed technically, but without careful tracking of costs and clear financial reporting, it may struggle to demonstrate value to future funders or policymakers. Sound financial management links the day-to-day project activities to long-term impact, ensuring that innovation can continue to benefit farmers and stakeholders after the initial funding ends. Strong financial management is the bridge between a project's short-term outputs and its lasting outcomes. It ensures that successful pilots evolve into scalable, operational solutions with real-world impact..

[Audio] Financial management in R&I projects is guided by four core principles: transparency, accountability, efficiency, and sustainability. Transparency means everyone in the project knows how funds are allocated and spent. Accountability clarifies who is responsible for each financial decision. Efficiency focuses on using resources in a way that maximizes outcomes. Sustainability ensures that financial choices support the long-term objectives of the project. Let's take a practical example. If a team is purchasing sensors for a precision agriculture trial, transparency requires documenting costs and suppliers; accountability assigns someone to approve the purchase; efficiency ensures the purchase gets the best value without compromising quality; and sustainability considers future maintenance and operational costs. Applying these principles consistently reduces risks, creates a shared financial culture across the consortium, and ensures that every financial decision contributes to the project's success..

[Audio] Now we will connect financial management to EU funding rules. Horizon Europe projects operate under strict regulations. Articles 6 and 22 of the EU Financial Regulation require that funds be used economically, efficiently, and effectively, and that beneficiaries can demonstrate that expenditures align with project objectives. Financial stewardship is not simply about avoiding errors—it ensures that the project delivers real impact while remaining compliant with EU obligations. For instance, if a consortium spends funds on a crop monitoring platform, every cost should be clearly linked to the objectives stated in the grant agreement. Misalignment between spending and objectives can result in financial corrections or even reduced funding. By understanding these EU rules, project teams can make informed decisions, protect the project from risk, and maintain credibility with funders and stakeholders. Financial management is therefore both a legal and strategic responsibility..

[Audio] Financial management follows a clear lifecycle, similar to the project's technical activities. It begins with planning and budgeting, continues through implementation and monitoring, and concludes with reporting and audit. Understanding this lifecycle allows teams to anticipate financial requirements, prevent last-minute corrections, and integrate financial considerations into everyday project management. For example, reviewing budget forecasts before a field trial ensures that funds are available when needed and that adjustments can be made if costs are higher than expected. Aligning financial and technical cycles is critical, especially in multi-partner projects. Delays in one partner's financial management can affect the timing of tasks across the consortium. By adhering to the financial lifecycle, projects maintain operational continuity and ensure that objectives are met efficiently..

[Audio] Agri-innovation projects face several unique financial challenges. One common issue is cash-flow gaps caused by delayed EU payments. Multi-country projects often face losses due to currency fluctuations. In addition, some project phases, such as field trials or hardware deployment, require large upfront investments that must be carefully planned. Recognising these challenges early allows the consortium to adopt mitigation strategies. For example, some consortia maintain reserve funds to cover early costs, while others schedule payments or allocate resources to ensure no partner is overextended. Open communication about financial risks at the start of the project is critical to prevent surprises later and to keep all partners aligned. By anticipating challenges, teams can implement safeguards and ensure that the project remains on track, even under financial pressure..

[Audio] Finally, let's look at the financial sustainability triangle: revenues, costs, and impact. Projects must balance these three elements to remain viable over time. Costs need to be managed carefully without compromising quality. Revenues, or alternative funding sources, can support operations beyond the initial grant. And impact refers to the measurable benefits the project delivers to farmers, stakeholders, and the broader innovation ecosystem. Financial management allows us to monitor and balance these three dimensions. By tracking costs, identifying potential revenue streams, and measuring outcomes, the project can remain sustainable long after initial funding ends. A well-managed project ensures that innovation delivers lasting value, not just temporary outputs..

thank you!. TALLHEDA has received funding from the European Union's Horizon Europe research and innovation programme under Grant Agreement No. 101136578. Funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or the European Research Executive Agency (REA). Neither the European Union nor the granting authority can be held responsible for them..