Building Better Opportunities: ESIF Technical Compliance Requirements Helen Joicey

Introduction Overview of ESIF technical compliance requirements: Procurement State Aid Publicity Cross-cutting themes Project management Finance Performance

Introduction Application stage: All applicants must demonstrate that they are able to manage a compliant project i.e. Statutory requirements (planning permission) EU requirements (procurement, state aid etc) Project and financial management systems Assessed at project appraisal stage Key part of the project selection criteria.

Introduction Delivery stage: Successful applicants must evidence that are managing a compliant project Regular monitoring and performance management Audit Risk of grant withdrawal, or repayment if insufficient evidence to demonstrate compliance

Procurement

All goods and services purchased from a third party Application stage: demonstrate how the applicant will comply Identify the main goods and services to be purchased The est. value of those goods and services Explain existing procurement procedures How sub-contractors / delivery partners will also comply

Procurement Delivery stage: Evidence requirements have been met: The process followed (OJEU, 3 quotes); Copies of the invitation to tender / quote; How the opportunity was advertised / promoted; Copies of all quotes received; The criteria against which quotes were assessed; Who was involved in the decision making process; How bidders were informed of the outcome.

Procurement New procurement regulations: Feb DCLG: update procurement guidance note

State Aid

State aid Application stage: Applicant must demonstrate: How the project will be state aid compliant Adequate systems are in place to ensure beneficiaries comply with the requirements State aid can be given legally using one of a set of approved EU mechanisms: De Minimis General Block Exemption Regulations (GBER)

State aid De Minimis: Used to describe small amounts of state aid that do not require European Commission approval. The total de minimis aid which can be given to a single recipient is €200,000 over a 3-year fiscal period. This ceiling takes into account all public assistance given as de minimis funding over the previous 3 fiscal years. De minimis aid does not affect the level of state aid that a recipient can receive under any other schemes approved by the Commission i.e. it is cumulated only with other de minimis aid.

State aid GBER: Covers a range of pre-approved state aid areas that do not require individual approval from the Commission in advance e.g. SME aid, R & D and innovation, Regional development, Training, Employment of disabled and disadvantaged workers. The GBER regulation was updated in June 2014.

State aid There are two key issues to take into account when considering state aid: Will the EU grant award constitute a state aid to the applicant organisation? Does the assistance give an advantage to the applicant? Is the applicant engaged in economic activity? NB: It’s the activity that is important not the legal status of the organisation Does project delivery involve awarding state aid to beneficiary organisations? Will the project award money to an organisation that operates commercially? If unsure – always seek advice

State aid Does the project fit, or can it be re-designed to fit with one of the state aid exemptions? De minimis: Gather information from the beneficiary organisation about previous de minimis aid Inform them that the award is de minimis GBER Identify the most appropriate exemption Demonstrate that the requirements can be met.

Publicity

Application stage: Describe how publicity requirements will be met Applies equally to the applicant, it’s sub-contractors and / or delivery partners

Publicity Delivery: Must acknowledge EU contribution Include the relevant logo on all electronic and hard copy documents including e.g.: Advertisements and job descriptions General paperwork: reports, attendance forms Social media tools: Facebook, twitter and SMS messages Websites

Publicity

Cross-cutting themes

Applicants need to demonstrate how: Environmental sustainability: Any potential negative environmental impacts will be minimised or mitigated Any potential positive impacts will be maximised Equality and diversity: The project will not unfairly disadvantage or discriminate against any individual or group Will comply with equalities legislation

Project management: Finance

Financial management Applicants must demonstrate they have the financial systems and ability to manage an EU funded project Describe existing financial management systems and structure Roles and responsibilities Record keeping / evidence Payment processes Preparation and submission of claims

Financial management Applicants must also demonstrate they have the financial capacity to manage an EU funded project: Develop a detailed project cash flow Income (including EU grant and any match) Expenditure – identify key cost headings Provide details of annual income, turnover and reserves Lead applicant Delivery partners / sub-contractors

Financial management: Payment profiles Application process Claim processEvidence Open callQuarterly / monthly in arrears based on actual evidenced expenditure Timesheets, payslips, invoices, receipts, bank statements ESF Opt-in (SFA, DWP, NOMS) Quarterly / monthly in arrears based on an outcomes profile i.e. a unit cost per person paid on a profile (on programme start, after 13 weeks, on completion) Signed individual learner records, attendance register, registration with an awarding body etc ESF Opt-in (Big Lottery) Quarterly in advance based on estimated actual expenditure tba

Project management: Performance

Performance management Applicants must demonstrate they have systems in place to: Monitor the achievement of outputs and outcomes Evidence their achievement.

Performance management: Output evidence Application processEvidence Open callApplicant will need to develop own systems and processes based on the information in the outputs guidance e.g. the records which need to be retained to evidence achievement. ESF Opt-in (SFA, DWP, NOMS)Funders will provide own paperwork to complete to evidence achievement of outputs and outcomes ESF Opt-in (Big Lottery)Tbc

Performance management (PS1) Number of potential entrepreneurs assisted to be enterprise ready TermsDefinitions Unit of Measurement Number of individuals Count Criteria: What is the activity that can be recorded against this indicator?  Those of working age, i.e. aged 16 and over, are counted.  An individual has to receive a minimum of three hours assistance. There is no maximum level of assistance. Count Threshold: What is the threshold or minimum requirement for recording (one count) of this indictor? Assistance must be focussed and reported on the following target groups:  individuals currently in employment, unemployed or economically inactive with an interest in exploring alternative career pathways The assistance will involve some form of direct interaction with individuals. This may be one-to- one or, one-to-many and take the form of coaching, mentoring, and workshops constituting part of the enterprise journey. It could therefore include:  Workshops and sessions to develop understanding of the issues of starting a business;  Coaching and mentoring to nurture behaviours values and dispositions to support self- employment and new businesses start up;  Support to explore appropriate business opportunities, for example franchise, social enterprise, building enterprise teams;  Community enterprise coaching – using community-based infrastructures to support people to overcome barriers and actively explore starting a business;  Supporting those in employment to consider business start-ups and ownership as a career opportunity.

Performance management (PS1) Number of potential entrepreneurs assisted to be enterprise ready TermsDefinitions Count Exclusions: What activity cannot be counted against this indicator?  An individual who is under 16.  Individuals may be counted only once regardless of the number of activities they participate in.  Assistance which is provided in the form of mail shots either electronic or hard copy is excluded.  Sign posting activity alone will not count as a form of assistance Verification Evidence : What records need to be retained to count this Indicator? Individual:  Name, date of birth, address, postcode. Activity:  Letter or standard form signed and dated by the individual specifying what assistance they received and on what date(s). Additional information required for indicators The unit of measurement is the individual (potential entrepreneur), not whether they actually go on to start a business. However, it is likely that rate of business start-up will need to be tracked as part of operation and programme level evaluation. It is likely that operations need to provide basic information about the individual they support relating to: age, gender, disability, and ethnicity this may be collect through survey and evaluations.

If in doubt, always seek advice

Any questions?