important notice
to all sponsors of retrospective projects and projects seeking additional erdf grant

The Programme Management Committee (PManC) at their meeting on 19th September 2003 considered recent requests for additional ERDF grant for project(s). Although there were no major issues arising from this meeting, there is an established protocol that Scottish Ministers confirm in principle all awards prior to project sponsors being formally notified. Whilst this important process is taking place, I would nevertheless urge sponsors to begin preparations for revising application(s) and ensuring that up-to-date claim forms are completed. I would hope to get customised letters out to sponsors week commencing 29 September 2003 detailing maximum grant awards and any outstanding technical issues which still require resolution before formal approval.

Please Note: All grant awards for additional or retrospective expenditure were made strictly conditional and I would strongly advise sponsors pay close attention to these. The conditions agreed by the Management Committee are listed below:

•	New or revised approval letters will not be issued for any project until valid revised application forms (including CSV files) have been received by the Programme Executive;
•	That the old Excel application form must be used by sponsors to incorporate requests for additional or retrospective spend;
•	New or revised approval letters will not be issued for any project until valid claim forms have been received by the Programme Executive. These claim forms must be composite (thus reflecting the revised figures) and include all expenditure incurred from the start of the project to at least 31 August 2003. Where a sponsor is close to preparing a final claim for either a previously approved or retrospective project, please contact the Programme Executive for additional guidance;
•	That the existing 2-part claim form must be used by sponsors to claim ERDF grant;
•	Any offer of additional or retrospective grant support will be conditional on the sponsor submitting a new or revised application form and valid up-to-date claim form by Friday 17 October 2003. This timescale will temporarily supercede any schedule for the submission of claims which has been outlined in previous project approval letters; and,
•	In most cases, any additional grant awarded to sponsors of previously approved projects will be transparently reinvested into that project to improve its overall quality or effectiveness. However, where a sponsor seeking retrospective grant support receives a “windfall” payment as a consequence of it being approved, they must confirm in writing to the Programme Executive prior to the deadline that an equivalent level of funding will be made available by their organisation or their partners to support economic development projects before 31 December 2008. For audit purposes, a more detailed explanation of how this “windfall” grant has been spent will also be required by the Programme Executive or the Scottish Executive.

However, please note that any offer of additional or retrospective ERDF grant is strictly conditional. A failure to meet all conditions in full and in the timescale outlined will result in its withdrawal and a reverting back to originally approved ERDF grant levels.

If you require any further assistance on this issue please do not hesitate to contact me.

NIGEL THOMAS
ASSISTANT CHIEF EXECUTIVE


26 September 2003