EUROPEAN STRUCTURAL AND INVESTMENT FUNDS 2014-2020 ... · EUROPEAN STRUCTURAL AND INVESTMENT FUNDS 2014-2020 PROGRAMMES ... Fund Social Inclusion/Poverty Reduction Workshops delivered

EUROPEAN STRUCTURAL AND INVESTMENT FUNDS 2014-2020 PROGRAMMES

ARTICLE 125 VERIFICATION CHECKS – EVIDENCE REQUIRED

(Achievements and Expenditure)

Date Change Version Author

xx March 2017 Final Version 1.0 Lynda Smith, Eilidh Steele, Kenneth Robertson

02 September 2019 Update to ERDF Recipient Check 1.1 Jamie Findlay

23 September 2019 Final (published) 2.0

03 March 2020

Logo added, ERDF Recipient information updated, Non-Recipient Guidance added 2.1 Ailsa Chisholm, Gillian Campbell, Connie Kay, Jamie Findlay

30 March 2020 Final (published) 3.0

Contents

Achievements................................................................................................................................................................................................................................... 2

ESF - Employability Pipeline ......................................................................................................................................................................................................... 3

ESF – Social Inclusion & Poverty .................................................................................................................................................................................................. 5

ESF - YEI / DSW ............................................................................................................................................................................................................................. 8

ERDF – Recipient ........................................................................................................................................................................................................................ 10

ERDF – Non-Recipient ................................................................................................................................................................................................................ 12

EXPENDITURE ................................................................................................................................................................................................................................. 14

Flat Rate - Staff Costs ................................................................................................................................................................................................................. 14

Flat Rate - Direct Costs, Actual - Procured Costs ....................................................................................................................................................................... 16

Unit Costs ................................................................................................................................................................................................................................... 18

Actual - Wage Subsidies ............................................................................................................................................................................................................. 18

Actual - Grant Schemes .............................................................................................................................................................................................................. 19

Payments to Delivery Agent or for Challenge Fund ................................................................................................................................................................... 19

Achievements

ESF - Employability Pipeline

Achievement Achievement recorded Evidence Required

Stage 1 Once Support complete Evidence includes:

Referral Form – where appropriate.

Registration Form – signed/dated by the participant.

Proof of Participant Eligibility e.g. legal right to live and work in the UK; employment status, date of birth, multiple barriers, details of benefits (where appropriate).

Personalised Action Plan – signed/dated by both the Participant and Delivery Staff.

Barrier Removal Once support Commences Evidence of any activity undertaken with Participant to remove barriers:

Record of referral to other support within the pipeline (where appropriate).

Record of all activities undertaken e.g. file notes; signed attendance records; case worker notes; copies of all correspondence; evidence of progression through stages of the pipeline.

Vocational Activity Once Support complete Evidence of any activity undertaken with Participant:

Record of referral to other support within the pipeline (where appropriate).

Record of all activities undertaken e.g. file notes; signed attendance records; case worker notes; copies of all correspondence; evidence of job searching; evidence of non-accredited training / qualifications; evidence of progression through stages of the pipeline;

Accredited Training

Once Support complete Evidence of any activity undertaken with Participant:

Record of all activities undertaken e.g. file notes; signed attendance records; case worker notes; qualification certificates

Stage 4 - Work Ready Participant Support


Record of all activities undertaken e.g. file notes; signed attendance records; case worker notes; evidence of job searching / job matching; copies of cv.

Wage Subsidy Once wage subsidy complete

Evidence of any activity undertaken with Participant:

Record of all activities undertaken e.g. file notes; case worker notes

Evidence of employment e.g. contract of employment; Please note this only relates to evidence required as part of the Participant Record check – additional documentation will be required to evidence financial compliance i.e. payslips, employer bank statements etc.

Stage 5 - In-Work Participant Support


Record of all activities undertaken e.g. file notes; signed attendance records; case worker notes; qualification certificates

ESF – Social Inclusion & Poverty

Lead Partner Achievement Achievement recorded Evidence Required

Local

Authority

Engagement n/a Evidence of any activity undertaken with Participant:

Record of all activities undertaken e.g. file notes; case worker notes etc

Referral Form (signed/dated) – where appropriate.

Local

Authority

Registration Once Support complete Check include:



Proof of Participant Eligibility e.g. legal right to live and work in the UK, evidence that the participant is within one of the key target groups - workless, lone parent or low income households etc.

Local

Authority

Intensive Barrier

Removal

Once support Commences Evidence of any activity undertaken with Participant to remove barriers:

Record of referral to other services (where appropriate)

Record of all activities undertaken e.g. file notes; signed attendance records; case worker notes; copies of all correspondence

Local

Authority

Intensive Financial

Inclusion Activity


Record of all activities undertaken e.g. file notes; signed attendance records; case worker notes; qualification certificates etc

Local

Authority

Intensive Fuel Poverty

Activity


Record of all activities undertaken e.g. file notes; signed attendance records; case worker notes; qualification certificates etc

Local

Authority

Vocational Activity

/Training


Record of all activities undertaken e.g. file notes; signed attendance records; case worker notes; copies of all correspondence; evidence of job searching; evidence of non-accredited training / qualifications

Local

Authority

Progression to Pipeline Once participant registers

with the Pipeline

Evidence of registration on the Employability Pipeline:

Employability Pipeline Registration Form – signed/dated by the participant.

Local

Authority

New poverty/inclusion

support services

implemented

Once new service is

launched and available

Evidence of any activity undertaken:

Record of all activities undertaken

Local

Authority /

Big Lottery

Fund

Social Inclusion/Poverty

Reduction Workshops

delivered

Once workshop has been

delivered

Evidence of workshops being delivered:

Record of all activities undertaken e.g. publicity materials, attendance records etc

Scottish

Government

Grant Support Once grant has been

awarded and first payment

has been made

Evidence of support provided:

See full client file to show assessment and support provided

Registration form (including demonstrating eligibility, where appropriate, e.g. for SME, see European Commission guidance:

http://ec.europa.eu/growth/smes/business-friendly-environment/sme-definition/)

Appraisal form or similar showing eligible for support

State aid assessment if applicable

Record of support e.g. support provided, events attended, support procured on their behalf

Proof of any outcomes

Scottish

Government

Community based or

community led services

supported

Once grant has been


has been made

Evidence includes:

Detail of new community based or led service supported and available. E.g. newspaper adverts, articles, photographs, website.

Scottish

Government

Individuals receiving

entrepreneurial-focused

development support

Once new service is

launched and available

Evidence includes:

Proof of current employment e.g. evidence from employer.


Completion Form – signed/dated by the participant.

Scottish

Government

SMEs supported

(including cooperative

enterprises, enterprises

of the social economy)

Once grant has been


has been made

Evidence of any activity undertaken:

Record of all activities undertaken

http://ec.europa.eu/growth/smes/business-friendly-environment/sme-definition/


ESF - YEI / DSW


Registration Once support complete Evidence includes:


Registration/Enrolment Form – signed and dated by the participant

Proof of Participant Eligibility e.g. legal right to live and work in the UK; employment status, date of birth; proof of qualifications on entry (where appropriate)

Personalised Action Plan – signed/dated by both the Participant and Delivery Staff.

Extended Learner Support documentation

Vocational Activity / Training

Once support complete Evidence of any activity undertaken with Participant:

Record of referral

Record of all activities undertaken e.g. file notes; signed attendance records; case worker notes; copies of all correspondence; evidence of job searching; evidence of non-accredited training / qualifications;

Accredited Training Once support complete Evidence of any activity undertaken with Participant:

Records of participation e.g. enrolment form

Proof of achievement of units/modules from the awarding bodies e.g. SQA Navigator

Learner Action Plan/Learner Agreements

Attendance records

Proof of engagement with learning and / or coursework

Participant Allowance (Bursary) Payments


Signed application form

Signed award acceptance form

All correspondence relating to Bursary

Attendance Record

Evidence of payments to Participant - BACS/Bank Statement

Student Support Payments


Signed application form

Student support award acceptance form

Attendance Records

Invoices from childcare providers

Calculation to support the amount being paid

Evidence of payments made - BACS/Bank Statement

Wage Subsidy Once wage subsidy complete

Evidence of any activity undertaken with Participant:

Record of all activities undertaken e.g. file notes; case worker notes

Evidence of employment i.e. contract of employment; Please note this only relates to evidence required as part of the Participant Record check – additional documentation will be required to evidence financial compliance i.e. payslips, employer bank statements etc.

ERDF – Recipient


Supported ERDF

Recipient (Non-

Financial Support)

ERDF Priority 3

Once one full day’s support

(minimum 7 hours) complete

Evidence of support provided


Registration form (including demonstrating eligibility, where appropriate, e.g. for SME, see European Commission guidance: http://ec.europa.eu/growth/smes/business-friendly-environment/sme-definition/) screen prints or other evidence of SME status at time of requesting support



Award letter from the Lead Partner Record of support e.g. support provided, events attended, support procured on their behalf

Certified documentary evidence that shows a breakdown of the 7 hours from the advisor/contractor with a short description of activity.

Where support is in the form of a workshop/event, evidence can include;

registration form, agenda (including length of time), completed sign in sheet & outcomes/feedback/evaluation forms required as evidence

ERDF acknowledgement, logo

Proof of outcomes

* LPs must provide this evidence for all non-financial support which has taken place after issue of the revised National Rules (V7, issued 1st March 2018). However, for activity which had already taken place prior to revision of the National Rules, it may be difficult for LPs to fulfil the certification requirement, particularly where a contractor has been used & there is no longer any contact with that contractor. In such cases, the LP must be able to evidence that reasonable attempts have been made to secure the necessary certification. However, where LPs are still unable to provide the


certification, the MA will accept a statement (on headed paper) from the contractor or the enterprise provided that the support received is clearly detailed & equates to at least 1 day (7 hours). An invoice stating that 1 day of support has been provided is not sufficient.

Supported ERDF

Recipient (Non-

Financial Support)

ERDF Priority 4 & 6

Once one full day’s support

(minimum 7 hours) complete


An achievement should be claimed/aligned to the output indicators “low carbon projects receiving non-financial support” and “Organisations and enterprises receiving non-financial support”

Evidence is required to support an equivalent of one day’s support (7 hours) for this achievement and output to be claimed - (typically) in the form of a comprehensive report of recommendations or detailed business plan specific to the recipient or project.

Supported ERDF

Recipient (Financial

Support)

Once grant has been


has been made






Record of support e.g. grant application, assessment and award letter


Proof of outcomes,

Invoice and Bank Statement SME paying company

Invoice from SME to project

Project paying grant


ERDF – Non-Recipient

Supported ERDF

Recipient (Financial

Support – Non

Grants)

Once financial support has

been awarded and first

payment has been made






Record of support e.g. application, assessment and award, loan/grant agreement for the delivery agents making the investments as well as evidence of investment defrayal by way of bank statements


Proof of outcomes,


Non Recipient When a stage has been

completed toward an agreed

milestone.

Where units/achievements are linked to non-recipient activity ie not directly related to a

specific participant/recipient, the evidence required will require to be discussed on a case

by case basis with your Portfolio and Compliance Manager due to the wide range of

activities that can be delivered. The activities are targeted at end users ie communities,

general public, organisations, educational and/or research.

Evidence may include one or more of the following (list is not exhaustive):

Website

Screenshots


Case Studies

Leaflets

URL links on Open Data Platforms

Copy of signed delivery contract between LP and DA

Copy of signed acceptance of delivery contract between LP and DA

Photographs (before and after where applicable)

Newspaper Articles

Adverts

Feedback Forms/Questionnaires

Surveys

Impact Studies/Assessments

Event Participation Records/Registration Sheets

Existing data sources (before and after) eg Scotland’s Greenspace Map, Vacant &

Derelict Land Register

EXPENDITURE

Flat Rate - Staff Costs

Area Headings on Template Evidence Required

Evidence of

Cost(s)

Basic (£) Employer's NI (£) Employer's Pension (£) Other Eligible Staff Costs (£)

An extract from payroll or a copy of a payslip, including a reference that clearly links to the information submitted in the claim, should be provided. The basic salary (i.e. before any expenses, allowances or other payments), employer’s National Insurance contributions and employer’s pension contributions for the pay period being claimed should be clearly stated. Where other eligible staff costs are being claimed (e.g. back pay or eligible island allowance), this should be stated on the payroll or payslip and any supporting calculations should be provided by the lead partner. It is not necessary to view defrayal of the employer’s PAYE payments to HMRC or the pension provider for a verification check, but the evidence should be retained. Where a staff member is a secondee, an invoice to the delivery agent and payroll evidence from the employer to establish that the amount claimed is for the actual eligible salary cost, supported by payroll.

Defrayal Net (£) BACs Total (£) Defrayal Date

The payroll or payslip should state the net pay due to the staff member. If a staff member is paid directly, a bank statement showing the delivery agent making the payment should be provided. If the bank charges a fee for each payment, this should be explained by the delivery agent and the cost should not be claimed.

If a staff member is paid through a BACS run (or similar), a copy or extract of the BACS run should be provided showing (at least): the front page, the page showing the payment (with an identifier to link to the payroll/payslip) and a page showing the total. A bank statement (i.e. the defrayal of expenditure, not a supplementary list of payments) showing the delivery agent making the payment should be provided. If the bank charges a fee for each payment, this should be explained by the delivery agent and the cost should not be claimed.

Apportionment Apportionment Rate A cost should only be apportioned where the post is split between two or more structural funds projects. This should be agreed in advance and, at verification, the MA will check the rate used is as agreed. No evidence required at verification stage.

Eligibility Eligible Y/N Y: Actual Expenditure Found (£) equals Amount Verified (£) or has been underclaimed. N: If any part of the expenditure cannot be verified, the column the cost will be noted as N as no payment will be made based on this item.

Flat Rate (%) Flat Rate (%) No evidence required at verification stage.

Flat Rate - Direct Costs, Actual - Procured Costs

Area Headings on Template Evidence Required

Evidence of

Cost(s)

Invoice Ref Date of Invoice Amount on Invoice/Petty Cash (£)

An invoice, receipt or works certificate should be provided, detailing the activity and cost, noting VAT where applicable.

Defrayal Batch Supplier Payment BACS Total (£) Defrayal Date

If a cost is paid directly, a bank statement showing the delivery agent making the payment should be provided. If the bank charges a fee for each payment, this should be explained by the delivery agent and the cost should not be claimed. If a cost is paid through a BACS run (or similar), a copy or extract of the BACS run should be provided showing (at least): the front page, the page showing the payment (with an identifier to link to the payroll/payslip) and a page showing the total. A bank statement showing the delivery agent making the payment should be provided. If the bank charges a fee for each payment, this should be explained by the delivery agent and the cost should not be claimed. If a cost is made as part of a larger ‘batch’ payment, evidence of the composition of the payment should be provided, this could be through remittance advice, copies of the other invoice(s)/credit note(s) which make up the payment, an extract from a financial system, or equivalent evidence. If a cost is paid by cheque, a link should be evident between the invoice or equivalent and the bank statement. The cheque number should be noted in the comments. Where an invoice is charged in a foreign currency, the delivery agent should provide evidence of the cost being converted to sterling, either through the payment of the invoice or an extract from their financial system. If the bank charges a fee for converting the cost, this should be explained by the delivery agent and the cost should not be claimed.

Apportionment Apportionment Rate

This should be agreed in advance and, at verification, the MA will check the rate used is as agreed. No evidence required at verification stage.

Eligibility Eligible (Y/N) Eligible Cost

Y: Actual Expenditure Found (£) equals Amount Verified (£) or has been underclaimed. N: If any part of the expenditure cannot be verified, the column the cost will be noted as N as no payment will be made based on this item.

Eligible Cost

(Flat Rate only)

Eligible Cost

This should be the value of the expenditure which has been verified, before the addition of the flat rate. e.g. if the actual cost is £1,000, flat rate is 15% and amount claimed is £1,150, if the evidence supports the amount claimed, £1,000 should be entered here.

Flat Rate (%) Flat Rate (%) No evidence required at verification stage.

Unit Costs

Actual - Wage Subsidies

Evidence Required

Evidence required is the evidence to demonstrate the achievement of a milestone, as defined in ‘Verification Checks – Evidence Required’. When completing the verification, the actual date achieved and units found should be recorded based on evidence provided and the Eligibility field to confirm if the cost is eligible.

Unit Cost (£) - No evidence required at verification stage.

Evidence Required

Evidence required is the evidence of a) the costs incurred by the employer and b) the costs paid by the delivery agent, as defined in ‘European Social Fund: Participant Guidance’. When completing the verification:

A - Wage Subsidies – Should be completed to capture the actual costs paid to the participant.

A - WS – Reimbursement – Should be completed to capture the payment from the delivery agent to the employer.

Actual - Grant Schemes

Payments to Delivery Agent or for Challenge Fund

Evidence Required

Evidence required is defined in ‘Guidance Note For Grant Fund Managers’. The Stage 1 check should be carried out based on the risk levels

defined in the OVP for the Operation; the Stage 2 check should be carried out on a selection of these costs. When completing the verification:

A - Grant - Stage 1– Should be completed to capture the grant payment made to the recipient.

A - Grant - Stage 2– Should be completed to capture the award documents from the delivery agent to the recipient and the costs incurred by the recipient.

Evidence Required

The Lead Partner should provide an extract from their financial systems to show their payment to the Delivery Agent(s) or Challenge Fund recipient(s), through to a copy of the recipient’s bank statement, including a batch payment and/or BACS run as required.

Documents

EUROPEAN STRUCTURAL AND INVESTMENT FUNDS 2014-2020 ... · EUROPEAN STRUCTURAL AND INVESTMENT FUNDS 2014-2020 PROGRAMMES ... Fund Social Inclusion/Poverty Reduction Workshops delivered