important notice
achievement of n+2 spend - further actions

To download the Retrospective Projects Expression of Interest pro-forma (Word 1035Kb) please click here

You should by now be aware of the increasing priority and urgency attaching to our efforts to improve the level of ERDF grant claims in order that the Programme achieves its N+2 spend target and that we avoid the potential loss of ERDF resources should we fail to meet that target.

In addition to a range of initiatives and measures aimed at improving the level of grant claiming, a number of additional actions have been proposed which should generate additional expenditure towards the N+2 target. These additional actions have now been agreed by the Programme Monitoring Committee and I am now writing to you to appraise you of these opportunities to secure additional ERDF grant assistance.

At the outset I should make it clear that the following proposals in no way compromise the integrity of the Programme strategy or that of the business processes, particularly with regard to project appraisal and decision making. Also, our efforts in exhorting project sponsors of live projects to submit grant claims will continue apace and if necessary will be redoubled.

The further actions fall into 2 categories. They are;

Live projects – Overspends

Not infrequently and not unsurprisingly a proportion of projects incur expenditure beyond the expenditure estimates provided in the original application. From time to time we receive requests for additional grants and these are put before the Programme Management Committee for decision. The Monitoring Committee has now agreed that we can actively trawl live projects and invite project applicants to identify actual and forecast overspends that could be claimed within the reporting period for N+2 ie. end of October 2003.

These overspends would be assessed against the performance of the project in meeting or progressing towards the forecast socio-economic targets and an assessment of value for money. This proposal will not involve a revision to the grant intervention rate unless there is a separate and compelling reason to do so.

Retrospective Projects – Reserve List

We believe that there may exist the possibility for a number of projects that had not previously been submitted to be supported retrospectively where they can demonstrate eligibility and fit with the Programme Measures. In view of the very substantial degree of strategic sectoral focus and spatial targeting of the East of Scotland SPD, it is possible that project sponsors may have interpreted too narrowly the nature and scope of certain Measures and been discouraged from applying. However, in view of the degree of retrospection allowed for in the first round of the new Programme (January 2000), it is not anticipated that we would see projects with a start and/or completion date in 2000.

Conditions to be Applied to Retrospective Support

(i) All projects under both categories would require to provide confirmation that substantial certified expenditure had taken place and sponsors could submit payment claim(s) before 31 October 2003 and

(ii) retrospective projects would in addition require to meet all standard technical and measure specific criteria and

(iii) have a start date for the project activity after 1 January 2000 and

(iv) to satisfy the principle of additionality in the following manner. In effect the windfall generated by retrospective support would require to be used to co-finance eligible economic development activity within the current programming period and not later than 31 December 2007 for transition projects and December 2008 for eligible projects.

Procedure

For prospective projects under the first category (overspends), we simply need at this time written notification of the actual/potential overspend of the approved project.

For retrospective projects the attached expression of interest pro-forma should be completed and submitted to this office at the earliest opportunity in order that an assessment can be made of the acceptability of the proposed project. These pro-formas should be submitted by Friday, 8 August 2003.

I hope that the foregoing is relatively straightforward but should you require any further information or clarification please do not hesitate to contact Nigel Thomas or myself.

GORDON McLAREN
CHIEF EXECUTIVE


11 July 2003