ESFVON
European Social Fund Voluntary Organisations Northern
The European funding world is renowned for being full of jargon and
inpenetrable for those venturing in for the first time. This glossary
attempts to identify some of the more common terms, although it is by no
means exhaustive.
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CAP
Common Agricultural Policy
Cash Flow Forecast
A table or other representation showing the predicted cash into an enterprise
or project income and cash out of the enterprise or project expenditure.
Capacity Building
The aim of a capacity building process is to develop and locally sustain the
skills, information and knowledge, of both the individual and the community.
The objective is to enhance labour market integration opportunities and assist
individuals and communities to participate in the economic regeneration.
Capital Projects
Are those which relate to physical works and the provision of infrastructure
which results in enhancing an existing asset or providing a new, permanent
asset. Examples of appropriate capital projects include:
- Construction of buildings
- Site Servicing
- Community facilities
See also Revenue Projects and Current Expenditure.
Capital Expenditure
Are payments made to acquire, construct or improve fixed assets for the
purpose of the grant, it includes land and buildings (but not leasehold land
and buildings).
CED
See Community Economic Development.
Central Government
Government departments, ministries, Government Offices, non-departmental public
bodies, and Regional Development Agencies. See also individual government
department entries.
Claim
A claim return completed by an organisation to show financial and non-financial
information for a specific period. It also includes the claim for cash payable
for the project.
Claw-Back
In the event of conditions of the offer letter contract not being complied
with, this is the process by which the grant paid, is reclaimed in part or
in full. For example, these arrangements would be enforced if an ERDF assisted
business centre was converted for use in retail.
Cluster
Is a group of industries, organisations and businesses whose inter-relationship
enhances the competitive advantage of individual or groups of companies. This
is important for the achievement of the RES and SPD objectives. There are
seven nominated clusters identified in two groupings.
Category (a)
existing clusters comprising, chemicals, digital and multi-media, food and
drink, offshore and high value added engineering, and tourism and culture.
Category (b)
emerging clusters, bioscience and nanotechnology.
Coalfields
The coalfields are a group of wards in which at least 10 per cent of the
resident males in employment at the time of the 1981 census of population
were engaged in coalmining. The pit villages are in a sense the heart of the
coalfields and invariably have a strong self-identity as mining communities.
A pit village may not always have its own pit, as in some cases the local mine
may have closed much earlier but a high dependence on the coal industry
remained as men travelled to work in nearby pits.
Co-Finance or Co-Funding
Is match funding, which is matched with European funds at source by the
grant-giving body, thus allowing up to 100% grants.
College Cost Methodology
See Organisational Costs.
Commitment
For programme and project management purposes "commitment" refers to the
allocation of funds to a project, normally verifiable by the issue of a
contract or similar legally binding arrangement. From the Commission's point
of view, commitment refers to the allocation of funds from the Commission's
budget to programmes. Under the N+2 formula, if pre-determined spending
targets have not been met by the end of every year, starting in 2003, the
Commission will decommit funds form the Programme ("auto-decommitment")
Community Appraisal
Baseline assessment of economic activity and local need for each area and
subsequent development of a community based strategy.
Community Business
This is a legally constituted community enterprise owned and controlled by
the local community and aims to help create self-supporting and sustainable
jobs for local people in its area. It may cover a very broad range of activity,
from local development trusts running disused public buildings through to
community based cooperatives, tele-centres, childcare and community care
companies to tourism projects and credit unions. It should use any surplus
made from its activities either to create more employment or to provide local
services. It may be based on a geographical community or a community of
interest.
Community Chest
A small grants scheme for community and voluntary sector applicants working
in a defined area.
Community Economic Development
A collective term for a number of strategies and activities which aim to
improve the economic and social health of the community.
Community Enterprise
See community business, co-operative and credit union.
Communities Initiatives
In addition to the mainstream programmes in North East England, the structural
funds also support the following more specific sectoral or area based
programmes, known as community initiatives for example.
- INTERREG III: ERDF support for cross border, transnational and inter-regional cooperation which encourages the harmonious and balanced development and spatial planning of the European territory.
- LEADER +: EAGGF support for rural development through integrated programmes and co-operation between local action groups
- EQUAL: ESF support for transnational co-operation, to promote new approaches to combating discrimination and inequalities in connection with access to the labour market
- URBAN II: ERDF support for the social and economic regeneration of towns and neighbourhoods in crisis and to promote sustainable urban development.
Those themes from the 1994-999 Community Initiatives that are discontinued
(RECHAR,RETEX, RESIDER, KONVER, PESCA and SME Initiative) may be included in
Objective 1,2,and 3, Programmes.
Community Support Framework
Great Britain Objective 3, community support framework provides an explanation
of how EU money is used to support national policies. This is in line with
both the European and the national employment agenda and a detailed analysis
of labour market need. See also Operational Plan (OP) and Regional Development
Plan (RDP).
Complementarity
When a project assists or expands the overall objectives of the Programme, the
project is 'complementary'. The Structural Fund Regulations for the period
2000-2006 anticipate a high degree of complementarity between Objective 2 and
3. The ESF activities funded under each Programme have therefore been clearly
differentiated.
Completers
Beneficiaries who have finished their training course and will not return to
the project.
Contract
ESF approval letter issued to successful ESF projects. See also Offer Letter.
Contributions
Money put into a project, including European Funds (ERDF, ESF, etc) and Matching
Funding. Not to be confused with Leverage. See also In-kind Contributions.
Co-Operative
An autonomous association of people united voluntarily to meet their common
economic, social and cultural needs and aspirations through a jointly owned
and democratically owned enterprise. Co-operatives are operated on the values
of self-help, self responsibility, democracy, equality, equity and solidarity.
Core Criteria
See Selection Criteria.
Credit Union
Registered financial co-operatives. They do not operate for profit, but for
service. And they are mutually owned and controlled by their members - the
individual savers and borrowers that they serve.
Cross-Cutting Issues
These are themes that do not have specific priorities or financial allocations
directly attached to them, they are meant to be integrated across the board in
every Structural Fund Priority, Measure and ultimately projects. 'Interventions'
such as the promotion of Information and Communication Technology, Social
Inclusion, Equal Opportunities and Sustainability, which can be effected
under all Measures and most projects within a Programme.
CSF
Great Britain Objective 3 Community Support Framework.
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Dead Weight
Projects where a proportion of the benefits would have been achieved without
Structural Funds assistance are said to display 'dead-weight', i.e. the benefits
to the Programme Area which would have occurred anyway. Dead Weight is
usually expressed as a percentage of the overall benefits from a project, e.g.
where 20 of the 40 jobs generated by a structural fund -assisted project would
have been created anyway, the project is said to display a dead-weight figure
of 50%. Dead Weight is often difficult to estimate at the application stage
and is normally assessed during an interim or final Evaluation.
Decommitment
Term to cover process by which failure of the Programme to achieve forecast
spend level (as set out in the SPD) within a rolling 3 year period leads to
loss of resource.
DEFRA
Department for Environment, Food and Rural Affairs. (Formerly MAFF).
Defrayed Expenditure or Expenditure Actually Incurred
Must relate to payments effected by the final beneficiary supported by
receipted invoices or accounting documents of equivalent probative value.
Project expenditure that has been spent by an Applicant. Claims for payment
of grant can only be accepted against defrayed expenditure - no authorised
payment can be made for structural fund.
Delegated Grant Scheme
Authority is given to a project sponsor to approve grants from ERDF or ESF to
third parties. Eligibility and Selection Criteria are agreed between the
Secretariat and the organisation or group of organisations operating the
scheme. Delegated grant schemes include activities such as 'Community Chests'
and small grants to businesses. See also Global Grants.
Depreciation
The calculated loss in value of an asset due to age, wear and tear,
deterioration, or obsolescence.
Desk Officer
The official at the European Commission with responsibilities for a particular
area of work.
Development Trust
A community led enterprise with social objectives, actively engaged in the
regeneration of an area that ensures the benefits are brought back to the
community. It has three core values: mutuality, (sharing of benefits within
the community) empowerment, (creating opportunities for local people) and
acquiring an asset base (leading to financial self sufficiency).
DfES
Department for Education and Skills (Formerly DfEE)
Directives
A directive is a legal instrument by which the EU Council or Commission can
require a member state to amend or adopt national legislation by a specified
deadline in order to achieve the aims set out in the directive. For example,
the Landfill Directive aims to ensure high standards across all member states
regarding landfill disposal of waste.
Directorates General
The European Commission is organised into 23 departments, or Directorates
General (DG) each of which has its own specific areas of responsibility. The
DGs that are likely to have the closest interface with the North East
partnership are detailed below.
DG AGRI
DG Agriculture (formerly DGVI) oversees policy relating to Agriculture and
Rural Development and is the lead Commission DG for the EAGGF.
DG CXOMP
EC Director for Competition, with responsibility for competition.
DG REGIO
EC Directorate with responsibility for regional policy and initiatives
(formerly DGXVI). This is the lead DG for Objective 2 Programmes and ERDF.
DG EMPLOY
EC Directorate with responsibility for Employment Policy (formerly DGV), which
covers Employment and Social Affairs and is involved in the employment and
training aspects of the Programmes funded through the European Social Fund (ESF).
DG FISH
EC Directorate with responsibility for fishing and fish processing industry and
the lead Commission DG for FIFG.
Displacement
Displacement is the extent to which the additional benefit from a project
leads to a negative effect in other SMEs, sectors, or locations. For example,
by assisting one business to promote their products this may increase their
sales at the expense of another business nearby. The extent to which the
initial benefit for the first company is reduced by the negative effect on
the second business is known as displacement.
Distance Travelled
The progress made by a beneficiary towards either employment or other hard
outcome as a result of the project.
Double Funding
Structural Funds must provide Activity over and above that provided by other
sources of funding so that Added Value can be clearly demonstrated. Project
costs should therefore relate to non-funded activity. For example if project
costs relate to activity that is already funded or if a project gets more
matched funding than was expected, then double funding would occur. This is
not eligible and repayment would have to be made.
Dossier
This term is given to an ESF application once it has been approved. It will be
given a dossier number that will be the reference used by the ESF Unit and the
Programmes Secretariat in all communications.
Dossier Number
The Secretariat's reference number for the project.
DTLR
Department of Transport, Local Government and the Regions (Formerly DETR).
DTI
Department of Trade and Industry.
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EAGGF
See European Agricultural Guidance And Guarantee Fund.
EC
See European Commission.
EEC
See European Economic Community.
ERDF
See European Regional Development Fund.
ES
Employment Service.
ESF
See European Social Fund.
Early Leavers
Beneficiaries who have left a Project before they have completed it and will
not be returning to that particular Project.
E-Commerce, E Business
Business transactions for the supply of goods and services completed over
computer networks, such as the Internet.
Eligibility
The conditions which have to be met by beneficiaries, costs and activities
which must be eligible to be included in an ESF funded project.
Eligible Areas
Geographic areas eligible for support under the Objective 2 Programme. See
also Transitional Areas.
Eligible and Ineligible Activities
European Structural Funds support is only available for the eligible elements
of a project. The broad range of activities eligible for support is described
in the Regulations governing the Structural Funds. Activities that are eligible
for support in the North East Programme are described in greater detail in the
Programme Complement (Objective 2) and Regional Development Plan (Objective 3).
In some cases only a proportion of a project may be eligible, in which case
grant is restricted to expenditure on the element areas (see Apportionment).
Activities not seen as appropriate for European funding are classed as
ineligible, with grant calculated on the total cost of the Project minus those
elements that are ineligible. Details of eligible and ineligible Activities
are given in a separate guidance note.
Eligible Costs
Costs taken as allowable charges for an ESF-funded project.
Employability Skills
The skills required to improve a beneficiary's chances of becoming employed,
such as literacy training and specific vocational qualifications.
England Rural Development Plan 2000 - 2006
Provides a framework of proposals to implement the rural development regulation
in England; to support schemes to protect and improve the countryside, and to
encourage sustainable enterprise and thriving rural communities (lead government
department: DEFRA).
Entrepreneurs
The owner manager of a business who, by risk or initiative attempts to run a
business for profit.
Environmental Task Force
As part of the Governments New Deal Programme the Environmental Task Force has
been introduced. This offers participants the option to attain skills and
training and take part in activity designed to improve the environment for
the public.
Environmental Theme
This is a cross cutting theme (horizontal issue) of the Objective Two
Programme. The Programme aims to:
- ensure that environmental issues are integrated within the Programme
so that there is a positive effect on the overall economic Objectives of
the Programme
- make sure that there is a clear focus on protecting the environment
- promote environmental sustainable practices at every opportunity
In order to implement this, a range of Actions have been developed with Measures
to promote resource efficiency. In addition modulated grants, project selection,
and scoring will ensure full Integration across the Programme.
Equal Opportunities Theme
This is a cross cutting theme (horizontal issue) of the Objective 2 Programme.
The Programme aims to:
- Integrate or "mainstream" Equal Opportunities into the
planning, design and implementation of Programmes and projects.
- Ensure that all participants in the Objective 2 Programme have a clear
understanding of Equal Opportunities and its impact on projects.
In order to implement this, a range of Actions have been developed with
measures to promote equal opportunities. In addition project selection and
impact assessment will ensure full integration across the Programme.
Equal
See Community Initiatives
ERDF Capital Grant
ERDF grant approved to fund expenditure on Fixed Assets, which for the
purposes of this grant, includes all land and buildings (but not leasehold
land and buildings).
ESF Leavers Survey
Projects may be required to take part in a follow up survey of ESF
Beneficiaries. An independent contractor on behalf of DFEE conducts a follow
up survey of a sample of Beneficiaries after they have left their ESF
project. Project sponsors may be required to supply names and addresses from
which the contractor will select a sample.
ESF Unit
Department for Education and Skills (DfES) European Social Fund Unit.
EU
European Union
EURO
European currency unit - the exchange rate may fluctuate which means the
amount of resource available to the Programme may go up or down. The symbol
for the Euro is €.
European Agricultural Guidance & Guarantee Fund EAGGF/FEOGA
Financial resources from the EAGGF (sometimes known by its French acronym
FEOGA) are provided to directly assist the development and diversification
of the agricultural sector. This is no longer a resource under the Objective
2 Programme 2000-2006.
European Commission
The Commission proposes EC legislation. It provides the executive arm of the
EC by implementing legislation at Community level, and ensures Community
legislation is properly adhered to. The Commission has two meanings in this
context: 1) it covers the Commissioners, (an equivalent to ministers) who are
nominated by the Member State and 2) the full range of officials (equivalent
to government departments). Its officials include directly employed nationals
of all EC Member States, although it also uses seconded experts and
consultants. The Commission controls the Structural Funds at the Community
Level and therefore has a fundamental role in Programme delivery. They are
involved in both the general strategy of a Programme through the PMC and
they also provide specific authorisation for some projects e.g. major projects
supported by ERDF . See also Directorates -General (DGs).
European Community
The structural funds come within the 'European Community', based on the
Treaty of Rome, as amended through a number of later Treaties. The European
Community also includes the European Coal and Steel Community (ECSC) and the
European Atomic Energy Community (Euratom) treaties, although the specific
provisions of the ECSC treaty will lapse during 2002. It is therefore quite
normal to refer to suggestions that the Structural Funds are part of the
European Community. The European Community is itself part of the European
Union (EU).
European Council
Is the Communities principal decision making body, acting on Commission
proposals. Each Member State Government has a seat on the Council. The
structural fund regulations are based on Article 130d of the Treaty establishing
the European Community (the Treaty of Rome), which requires the Council to
define the tasks, priority objectives and organisation of the funds. The
Council also has to define the general rules applicable to the funds; the
provisions to ensure their effectiveness; and the co-ordination of funds
with one another and with other financial instruments, See also Structural
Fund regulations.
European Court of Auditors
This is the European Community's auditing body. It is their job to ensure that
Community funds, including the structural funds, are appropriately spent and
administered. They act independently of the Commission and the Council.
European Court of Justice
The European Court of Justice would provide any necessary final judgement on
either the interpretation of legislation or on a failure to abide by the
rules. As the Commission will often deal with such issues as part of its
executive role, the Court effectively provides a formal sanction on behalf
of the Commission and a route of appeal on behalf of Member States.
The European Economic Community (EEC)
This is now effectively an anachronism, although it is often seen in the
numbering sequence of older European Legislation. The EEC was the name given
to the Community established by the Treaty of Rome, although the Maastricht
Treaty (1992) replaced it with the European Community (EC).
European Employment Strategy
For the first time the Amsterdam Treaty, of 1997 included a chapter on
employment. This chapter was designed to co-ordinate employment strategies
across the EU Member States to combat unemployment. Each year the 15 countries
of the EU agree Employment Guidelines on which the National Action Plans for
Employment for each country are based. The Employment Guidelines are built
around four pillars:
- improving employability
- developing entrepreneurship
- encouraging adaptability of businesses and their employees
- strengthening Equal Opportunities policies for men and women
ESF supports this strategy see ESF policy fields for Objective 3.
European Management Board
Is a forum comprising Government Office for the North East , One North East
and the North East Regional Assembly within which an overall strategic
direction is provided for the region in the approach to European issues which
provides a framework of activities. The PMC remains the supreme authority on
Programme management matters. See also North East Region European Forum.
European Parliament
The European Parliament includes directly elected representatives. It is involved
in both the legislative process and in monitoring the activity of the Structural
Funds. They are unlikely to have an impact in the way funds are administered.
Individual Members of the European Parliament (MEPs) do, however, take an
interest in the Structural Funds in their own areas.
European Regional Development Fund (ERDF)
Financial resources from the ERDF are provided for a range of physical works
and support activities aimed at promoting economic development i.e. funding
of capital and Revenue Projects, Business Support, infrastructure and
projects to promote Community Economic Development activity. Examples of
activities that could be ERDF funded are:
- Advice and consultancy to increase SME competitiveness
- Provision of workshop units
- Grants for the expansion of business advice services.
- Support for tourism marketing
- Community projects
European Programmes Secretariat
The Secretariat's remit is to administer and implement the Structural Fund
Programmes. In the North East of England the European Programmes Secretariat
is located within the Government Office.
European Social Fund (ESF)
Is a structural fund aimed at improving employment opportunities by providing
financial support towards the running costs of vocational training schemes
for example, guidance and counselling projects, job creation measures, and
other actions to improve the employability and skills of both employed and
unemployed people. It also provides support for research and improving the
capacity of organisations to improve their target communities. In the North
East region, ESF is available through both Objective 2 and Objective 3
Programmes.
European Union (EU)
Covers the European Community, but, it also covers a much wider range of
activity. This includes co-operation provisions on common foreign and security
policy, and co-operation in the fields of justice and home affairs.
European Flag
One of the ways to get people to identify with the EC is by using symbols.
Since 1986 the EC have used the flag adopted by the Council of Europe, with
a circle of 12 gold stars on a blue background. This has been incorporated
into Publicity for ESF and ERDF part funded projects.
Evaluation
Evaluation takes the Monitoring process a step further by assessing the
success of a project, Priority or Programme against strategic objectives.
Each of the NE England Programmes will be subject to a final evaluation that
will assess the success of the Programme in meeting the objectives of the
Single Programming Document (SPD). The nature and the scope of the evaluation
will depend on the approach adopted. Evaluation happens three times during
the life of the Programme:
- Ex Ante Evaluation - an assessment of conditions prior to the commencement of the Programme.
- Interim Evaluation - an assessment at the half-way point of the Programme period. This will be linked to the release of the Performance Reserve
- Ex Post Evaluation - an assessment of the success and impact of the Programme, following the end of the Programme periods.
Exit Strategy Plan
Details of how the project will continue after ERDF or ESF funding has ceased
(showing how the financial gap left after grant, will be filled). Sometimes
termed forward or succession strategy.
Expenditure
Amounts paid by an organisation for goods or services received or services
rendered.
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FEFC
Further Education Funding Council
FIFG
See Financial Instrument for Fisheries Guidance
Final Audit
See AUDIT
Final Beneficiaries
Are the bodies (public or private) responsible for the commissioning of
works/operations. They are also responsible for keeping all financial
documentation relating to a project. Final Beneficiaries are identified in
the Measure level text of the Programme Complement.
Final Claim/Project Closure Report
The final return completed by an organisation to show financial and
non-financial information for a specific project.
Final Payment
This is the total ESF claimed on a project minus payments already received.
Financial Instrument for Fisheries Guidance (FIFG)
EC Structural Fund aimed at assisting the fishing and fish processing industries.
Financial Tables
Tables providing a breakdown of the Programme financial details /
resources available. In the SPD the tables are presented at Priority level,
in the Programme Complement at Measure level. The tables, show for each
Priority or Measure, the allocation of structural fund support, and the
proposed amount of public and private sector matched funding.
Fixed Asset
Is a non-monetary asset that will not be used up within twelve months and
will not be sold before the end of its useful life.
Foresight
Is a national Programme about developing visions of the future.Examination
of possible needs/opportunities/threats will inform and shape current
decision making in the public and private sectors. The DTIs Office of
Science & Technology (OST) leads the Programme.
Full Time Equivalent (FTE) Jobs
Is a standard job of 30 hours a week or longer and is filled. Full Time
Equivalent jobs are part time jobs described in full time terms. For example
2 part time jobs each working a 16 hours a week would be classified as one
FTE.
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GO
Government Office. England is split into nine regions and each one has a
Government Office. The role of the GO is 'to work with regional partners and
local people to maximise competitiveness and prosperity in the region and to
support integrated policies for an inclusive society'. The GO has various
functions within the following field:
social exclusion and regeneration; European Structural Funds (see European
Programme Secretariat); sustainability, environment and energy; education and
skills; town and country planning; culture, media and sport; housing; help
for business; transport and health.
GAP Funding
Once the need for grant has been established (see Added Value), assistance
should be the minimum that is necessary for the project to proceed. The
available matched funding and the projects potential Revenue Income is taken
into account in calculating this. The grant then covers the gap in eligible
expenditure. If there is an underspend to the project, the gap reduces as well
as the amount of grant needed.
Global Grants
Refers to Packages of ESF support that have pre-matched funding by
intermediary organisations, and are made available to non-governmental
organisations. This approach simplifies the Application Procedure, making it
easier for organisations to get a hold of small ESF grants.
GO-NE
Government Office for the North East. The European Programmes Secretariat are
based here.
GNVQ
General National Vocational Qualification. A qualification standard that
covers a number of levels.
Graduate Retention
Activities aimed at encouraging graduates from North East universities to
remain in the region.
Grant Payable
Is the maximum amount of grant that may be claimed towards certified expenditure
or eligible costs on the project. To make a claim, expenditure must be defrayed
and of course Gap Funding Rules apply.
Grant Audit Documents
Documents required for Audit purposes, including the statement of Project
Income, the Statement of Expenditure, Schedule 1 and 2, the Certificate and
the Auditors Report.
Grant Rates
See Intervention Rates
Greenfield Sites
"Greenfield land" is defined by reference to the definition of
previously developed land, set out in Annex C to DLTR Planning Policy Guidance
Note 3, Housing (PPG3). A commonly accepted definition is - Greenfield sites
are areas of land which have not previously been built on, and which might
well be put to agricultural or amenity use.
Gross Domestic Product (GDP)
Is derived form the total of all incomes earned from the production of goods
and services.
GSE
General Statement of Expenditure - the document that confirms that public match
funding for an ESF project was actually provided.
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HE
Higher Education sector e.g. universities
Horizontal Issues
See cross cutting themes and also environment and equal opportunity themes.
Human Resource Development
Helping people across all groups in society to raise their skills and
competencies through training, guidance and business support.
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IAF
ESF interactive application form software
ICOM
Indusrial Common Ownership Movement
ICT
Information and communication Technology
IIP
Investors in People
ILM
See Intermediate Labout Market
ISI
Information Society Initiative.
Index of Local Deprivation (ILD)
The DTLR constructs the Index of Local Deprivation which benchmarks each local
authority in England against 12 criteria which when compiled provides an
index of deprivation. The variables are combined to give a total score that
can then be used to rank all local authority areas in England. The DTLR use
the ranking to help inform their decisions when distributing resource to
regeneration Initiatives. The ranking is used in the Objective 2 Programmes
to define the Targeted Communities.
Indicative Financial Allocations
This is the level of resource available at Priority and Measure level. This
covers the total cost, ERDF and ESF, public and private contributions .
Ineligible Costs
Costs that cannot be claimed against the project.
Information Notes
A series of documents produced by the European Programmes Secretariat, providing
detailed advice on aspects of Objective 2 implementation.
Information Society
The term information society is widely used but poorly defined. In broad terms,
it refers to the development and convergence of information and communication
technologies (ICTs), and also to their consequences for society, especially
in its economic and social development.
Infrastructure
Is used here in the broad sense, comprising not only roads and public utilities,
but also assets like sites, buildings and tourist facilities. This excludes so
called 'productive investment' such as plant and machinery.
In-Kind Contributions
These are non-monetary contributions made by individuals or organisations that
add value to a capital or revenue project and can be given a monetary value.
They may be considered as eligible expenditure. Applicants must demonstrate
that the in-kind contribution represents a cost to the contributor during the
lifetime of the Programme. Each project is considered on its own merits and it
must be possible to Audit any In-Kind Contributions.
Inputs
Structural Funds attract Match Funding from public and private sector partners,
which together represent inputs. These inputs form the first part of the
Performance Indicators.
Integration
Projects that demonstrate linkages with other economic development Activities
are desirable and can lead to synergistic effects. In relation to the
Structural Funds, Integration between Projects across each of the Funds is a
Priority. Examples of Integration are:
- Provision of ESF funded training courses within a facility that has received Structural Funds;
- A Cluster of Structural Fund projects within a strategic area, e.g.
provision of start-up workshops, a new visitor attraction and a number of
environmental improvements and visitor interpretation facilities. Linkages
between Structural Fund projects and other economic development Programmes,
e.g. the Single Regeneration Budget (SRB) are also desirable.
Interactive Software
ESF computer software that provides the functions for completion of Application
Forms electronically.
Interim Claim
Claims for ESF against money actually spent. See also Advance Payment and Final
Claim.
Intermediate Labour Market
Waged or salaried full or part-time jobs that are available only to unemployed
people (or specific groups of unemployed people). This should be for a limited
time and the product of the work should have either a direct social purpose or
trading for a social purpose where that work or trading would not normally be
undertaken.
Intermediaries
In some programmes the voluntary and private sectors (i.e. non statutory) must
submit applications via a statutory body (e.g. local authority, university, etc).
Interreg
Inter-regional and transnational Projects with an emphasis on spatial development,
land use, transport and planning. Funded by ERDF. See Community Initiatives.
Intervention Rates
Projects are awarded different levels of funding, depending on the nature of the Project.
For Objective 2, the maximum grant ever available is 50% - ERDF and 45% - ESF
of eligible Project costs, but for certain types of activity such as direct
support to businesses the maximum grant has been set by the European Commission
at a lower rate (15%).
Objective 3 is supported by ESF funding and the maximum grant available is 45%.
Applicants must in all cases apply for the minimum grant required for the
Project to proceed. Elements of a Project may be awarded different Grant Rates,
although separate applications will be required for each element of the Project
with a different grant rate. A separate, more detailed Information Note is
available on Grant Rates for the range of Eligible Activities.
Impacts
Impacts can also be referred to as 'final Outputs' or results. They are the
final consequences of a Project or Action Plan on those aspects of the economy
that the Structural Funds seek to influence. Typically, final impacts are
measured in terms of changes to employment, value-added and/or productivity in
the economy. Consequently, both the Activities supported and their intermediate
effects (or Outputs) should be directed at achieving the final impact. See also
Performance Indicators.
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LEA
Local Education Authority
LETS
See Local Exchange Trading System
LMSG
Labour Market Strategy Group
LSC
See Learning and Skills Council
Labour Market Information
Intelligence concerning local labour market conditions. In particular on
employment levels, specific groups facing unemployment and employment
opportunities.
LAP
Local Action Plan
Leader+
LEADER+ aims to involve local communities in developing and testing new
approaches to integrated and sustainable development in a complementary way
alongside other rural development measures. It focuses on small-scale,
innovative projects addressing local rural development issues within the
framework of a local development strategy. EAGGF (European Agricultural
Guidance and Guarantee Fund) is the only structural fund to finance this
initiative. - See Community Initiatives.
Learning Skills Council (LSC) and Local LSC
From April 2001 the LSC and its 47 local arms came into being. In the North
East region these local arms are:
Northumberland, Tyne and Wear, Durham and Tees Valley. The Local LSC will
fund further education and take forward government funded training and
workforce development. The Local LSCs for the most part succeed the Training
and Enterprise Councils (TECs). The enterprise role of the TECs is to be
taken forward by the DTIs Small Business Service.
Leverage
The level of private sector investment that results from a Project is known
as Leverage. That is investments that result from the opportunities provided
by ERDF Capital Projects, rather than direct financial contribution to the
project itself. Financial Contributions from the private sector included as
matching funding are not classed as Leverage. An example would be investment
by the private sector to construct premises on a site that has been prepared
for development with Structural Funds support.
Life Long Learning
Where people continue throughout their lives to develop their knowledge,
skills and understanding and improve their employability in a changing labour
market.
Local Action Plans
See Action Plans
Local Agenda 21
The process of drawing up and implementing local Sustainable Development
plans, with local authorities working in Partnership with all sectors in the
local community to achieve this. The strategies raise opportunities for
community level initiatives with local businesses to improve and utilise the
environment.
Local Exchange Trading System (LETS)
LETS schemes track and encourage the exchange of goods and services in the
local economy, without using actual money.
Local Strategic Partnership
A cross-sectoral, cross-agency umbrella partnership focused and committed to
improving the quality of life and governance in a particular locality.
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Match Funding
Public or private sector finance put forward as a contribution to Eligible
Costs is defined as matching funding or co-funding. European funds are designed
to fill the funding gap for a Project when all other possible sources of
finance have been exhausted. A wide range of public organisations and
voluntary agencies are designated as eligible for grant purposes, e.g. local
authorities (LAs), Small Business Service (SBS) and Learning and Skills
Council (LSC) and the higher and further education institutions. Private
sector finance is also a suitable source of matching funding for projects
that have economic benefits for the wider region. A minimum of 5% public
sector matching funding is required for ERDF projects and a minimum of 10%
public sector matching funding is required for ESF projects. The Financial
Tables in the Single Programming Document (SPD) set out the relative
proportions of private, public and grant funding which Projects must meet
overall in each Measure. Matching funding must be confirmed before an Offer
Letter can be issued.
Match Funding in Kind
A cost included in a Project return that the applicant has not met (for
example, donated time or equipment). There must be an Audit Trail to the actual
costs.
Measure
Each Single Programming Document (SPD) has a number of main headings, known
as Priorities, which outline Objectives for the overall Programme. Each Priority
is further broken down into a number of Measures that outline the scope for
Activities that are appropriate for funding. Each Measure is linked to one
out of three of the four main Structural Funds and has its own financial
allocation. Each Project. Application should be submitted under one specific
Measure and fit within the scope of that Measure in the Single Programming
Document (SPD).
Measure Criteria
After scoring a Project against the Core Criteria, the application is assessed
against the agreed criteria under which is has been submitted. The criteria
are designed to ensure that Projects that meet the scope and Objectives of
the Measure score highly.
Member State
One of the fifteen countries belonging to the European Community. They are
Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy,
Luxembourg, the Netherlands, Portugal, Spain, Sweden and the UK.
MEP
Member of the European Parliament
Milestones
Key events with dates, marking a clear stage of progress towards a final Output
or Outcome e.g. site identified as suitable for individual development;
planning consent granted; training agreement signed.
Monitoring
It is the responsibility of the project sponsor to put arrangements in place
to monitor the financial and physical performance of the Project. All
Applicants are required to state on the application form how the performance
of the Project will be monitored. Monitoring arrangements are designed to
determine progress towards Project Outputs and involve the collection of
data and other evidence relating to Project performance. Organisations are
required to submit detailed Monitoring data to the European Programmes
Secretariat as part of the conditions for receiving Structural Funds support.
Projects that dramatically under-perform can be required to repay the
Structural Fund grant awarded.
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N
N + 2 Rule
See Decommitment
NEA
See North East Assembly
NVQ
National Vocational Qualification. Often a required outcome of ESF related
traning (or credits)
New Deal
This is a government program that aims to improve the employability of those
of working age who are excluded from the labour market and dependent upon
state benefit. Intervention is intended to ensure that individuals are
equipped with the skills needed to compete within the local economy.
No Obligation to Pay
The date by which the final claim must be settled.
North East England and European Partnership
Objective 2 Programme Partnership.
North East Assembly
The partnership body which brings together the Local Authorities, MP's, MEP's
and regional stakeholders to help develop and promote, at the regional level,
the economic, social and environmental well-being of the people of the North
East of England.
Non-Accountable Body
A term sometimes used to indicate a Partnership group, responsible for
delivering a Package, which is not itself an Accountable Body, and therefore
does not take full financial responsibility for that Package.
NUTS
An acronym for the UK nomenclature of Territorial Units. NUTS areas were used
to determine eligibility for Objective 1 and 2 status for the period 2000-2006.
Territorial Units are split into four groupings by size:
- NUTS 1 - Member States (UK)
- NUTS 2 - Regions (North East England)
- NUTS 3 - Sub regions within 2
- NUTS 4 - Ward level.
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OP
See Objective 3 Operational Programme.
Objectives
The Structural Funds and other forms of European financial support contribute
to the achievement of 3 predefined Objectives which are set out below. The
Programmes developed to achieve these Objectives must contribute to Sustainable
Development.
Objective 1
One of the 3 categories of the Structural Funds, which aims to close the gap
between advanced and less developed Regions in Europe. The NE does not qualify
for this type of support from Europe.
Objective 2
Objective 2 supports the economic and social conversion of areas facing
structural difficulties. This includes industrial, rural, urban and fishing
areas undergoing economic and social change. This is one of the three
Objectives of the Structural Funds. Objective 2 areas are those that have been
affected by the loss of employment and are lagging behind the European Union
average in terms of unemployment rates. In the NE area, in the period 2000-2006,
over 87% of the region's population is designated for assistance under
Objective 2. The majority of the remaining population has been designated as
transitional. Maps showing the Eligible Areas may be obtained from the European
Programmes Secretariat. See also Transitional Areas. The Objective 2 Programme
2000-2006 has two funds, the European Social Fund (ESF) and the European
Regional Development Fund (ERDF).
Objective 3
Objective 3 lends support to the adaptation and modernisation of policies and
systems of education, training and employment outside the Objective 1 areas.
Assistance from the European Social Fund is used throughout the whole of the
UK apart from Objective 1 areas to provide help to people who are unemployed
and face barriers to gaining employment. Objective 3 funding is allocated to
the NE England area and a system of open bidding is used. A Regional
Development plan (RDP) for Objective 3 is used to establish a strategy for
the use of Objective 3 funding in the NE.
Objective 3 Operational Programme
This provides a more detailed description of how ESF will be used in each
country. There are separate Operational Plans of England, Scotland and Wales.
See also Regional Development Plan.
Offer Letter
The Offer Letter and its acceptance is the contract between the Applicant and
the Secretariat for ERDF projects. This sets out the level of grant aid
approved, the level of matched funding, the Outputs that need to be achieved
and the terms and conditions for assistance. All conditions must be adhered
to.
One North East
The Regional Development Agency (RDA) for the North East of England Region.
Operational Plan
The Operational Plan for England provides a detailed description of how
Objective 3 ESF will be used in the country. See also Community Support
Framework and Regional Development Plan.
Opportunity Costs
These are the costs associated with opportunities forgone.
Organisational Costs
Otherwise known as "college method". It is where Applicants use a product/service
costing methodology to complete ESF project applications and claims. The aim
of this is to recover all of the organisations expenditure through its product
or services, particularly indirect staff and central overheads.
Outcomes
The results of a Programme or a Project, often Measured by 'impact' or 'Outputs'
delivered.
Outputs
These are the intermediate effects created by the Activities undertaken on a
particular Project. They represent the particular means by which the Impacts
are secured. Outputs quantify the intermediate effects of the Activities
supported. For example, an output might be measured as 60% of businesses
surviving more than three years. Expected Outputs must be specified by those
applying for Structural Funds support. The Single Programming Document (SPD)
specifies the output targets it expects to see achieved for each Priority and
Measure, and the Project Applicant should use the exact wording in the relevant
Measure. Further advice on Outputs can be obtained from the European
Programmes Secretariat.
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PMC
See Programme Monitoring Committee.
PMFC
See Public Matched Funding Certificate.
Package
The Package approach to Programme management has some initial similarities
with the Action Plan approach described previously. The term Package refers
to plans without Accountable Body status. The following description of
activities is currently being reviewed for the 2000-2006 Objective 2 Programme.
Packages provide for Partnerships to develop Packages which make a strategic
analysis of the area/theme covered and identify the Actions needed within the
Programme period, to deliver the target Outputs and Impacts within a fixed
timetable. With the Package approach, Appraisal remains with the Secretariat
and financial and other responsibility with the project Applicant. Package
Partnerships are expected to provide periodic reports of progress and make
adjustment to accommodate changes.
Package Co-Ordinator
Person responsible for the administration of the Package. Responsibilities
include convening Package Partnership meetings, disseminating information,
keeping records relating to the achievement of endorsed Package targets and
submitting Package Monitoring reports.
Package Monitoring Report
A six-monthly report submitted by the Package Coordinator to the Secretariat
detailing progress to Package targets along a set of agreed criteria. Note:
This may be subject to change as administration arrangements evolve.
Partnership
One of the four principles upon which the work of Structural Funds is based.
At the Project level, funding may come from a number of agencies in
Partnership. The creation of inter-agency Partnership is desirable as a means
to prevent duplication of Activities and facilitate a comprehensive approach
to economic development. At the Programme level, a Partnership known as the
'North East of England European Partnership' has been established between all
the relevant organisations, e.g. public, private and voluntary sectors, the
European Programmes Secretariat, the Government and the European Commission.
Paying Authority
Term used to describe the body designated by the Member State for the purposes
of drawing up and submitting payment applications and receiving payments from
the European Commission. The Member State determines the terms of its
relationship with the paying authority and the latter's relationship with the
European Commission.
Performance Indicators
The Performance Indicators (PIs) are aimed at assessing projects in a way
that will eventually allow for the overall assessment of the Programme. PIs
therefore have three main functions:
- Guidance to Applicants on the required ratio of Inputs and Outputs:
- Provide management information on the progress towards the Programme t
argets both at the point where projects are approved and during their
implementation; and
- To provide an indication of the Programmes probable impact. They will
in most cases be assigned Measure target levels, which in aggregate will
correspond to the Objectives of the Programme. The structure of these
indicators reflects the linkages between Inputs, Activities, Outputs and
Impacts. As such, to provide indicators for each point in the chain of
Actions which link initial Commitment of funding through to the point
where the final impact is achieved. See Inputs, Activity, Outputs,Impact.
Performance Reserve
The Regulations for the period 2000 to 2006 make provision for 4% of the
Structural Funds budget to be kept in reserve until 31 March 2004. This is
known as the performance reserve. The performance reserve will be released
to Programmes that are considered by the Commission to be performing well.
Criteria to be taken into account in assessing performance will include
indicators of effectiveness, management and financial implementation that are
agreed between the member states in consultation with the European Commission.
Permanent Job
A job that has no foreseeable time limit. See also Temporary Job, Dead- Weight,
Displacement and Full- Time Equivalent.
Policy Fields
The five policy areas for Objective 3 ESF Intervention post-2000. These are
as follows:
- Active Labour Market Policies
- Equal Opportunities for all and promoting social inclusion
- Lifelong Learning
- Adaptability and Entrepreneurship
- Improving the participation of women in the labour market
These are applicable across all programs. For Objective 3 there are two or
three Measures under each policy field that detail the areas where ESF will be
concentrated. For Objective 2 the ESF measures are tied back to relevant policy
fields.
Previously Developed Land
This term is preferred to Brownfield or Derelict Land. For the purpose of
this guidance, such land is defined as land that is or was occupied by a
permanent structure, and associated fixed surface infrastructure.
Priority
Within a Single Programming Document (SPD), there are a number of main
headings that identify an objective for the overall Programme. Each of these
headings is known as a Priority. The priorities for the draft NE Objective 2
Programme 2000-2006 are as follows:
- Priority 1: Establishing an Entrepreneurial Culture - SME Creation,
Growth and Competitiveness
- Priority 2: Strategic Regional Development
- Priority 3: Target Communities: Building Capacity And Connecting With Jobs
For Objective 3 see Policy Fields.
Private Match Funding
Support for a Project coming from a company or group of companies in the
private sector. This can be Actual cash or In-kind Match Funding where
Eligible. See also Public Match Funding.
Profile
Forecast timing of project expenditure; triggers and advance payment for ESF
projects.
Programme
One of the Structural Funds four principles, the Member State contracts with
the European Commission, by means of a Single Programming Document (SPD), to
deliver a multi annual development Programme of assistance to an area using
European Structural Funds matched with other public and private money: See
Objective 1, Objective 2, Objective 3 and Community Initiatives.
Programme Complement
The detailed action plan for the Single Programming Document at Measure level.
Programme Managment Group
See Technical Assistance Sub Group.
Programme Monitoring Committee (PMC)
EC Regulations require overall responsibility for managing Programmes to lie
with the relevant PMC. The Objective 2 PMC concentrates more on strategic
issues affecting the Programme. This includes receiving reports on issues
concerning the progress on implementing various Priorities and Measures,
Monitoring the continuing relevance of the Programme both in terms of policy
content and Actions in respect of the changing needs and the political,
economic and social environment of the region. Other technical matters
concerning the operation of the Programme are delegated to a Regional
Executive Group.
Project
The Activity an Applicant asks to be supported by Structural Funds.
Project Income
Operating income and investment income generated by an approved project and
which has been received in the year by the Project Sponsor. Note different
Rules may apply for ERDF and ESF projects and also where the sponsor has
applied Organisational Costs rather than direct costs.
Project Progress Report
The Contract (ESF) and the Offer Letter (ERDF) approving the Application sets
out expected expenditure and performance expected from the Project, With each
Claim a progress report must be submitted detailing how the Project is
progressing towards achieving these goals.
Project Sponsor
Organisation acting as Applicant for funding. The Project Sponsor takes on
the formal responsibilities for the project.
Public Match Funding
Funding from any organisation which directly or indirectly receives over 50%
of its core funding from central or local government or levies raised by
Industrial Training Organisations (ITOs) for training purposes. Non-profit
making organisations registered with the charities commission can also supply
Public Match Funding.
Public Match Funding Certificate
An agreement to confirm the amount of Match Funding each public funder expects
to pay into an ESF Project.
Public Procurement
The Structural Fund Regulations state that Community Rules on public procurement
apply to projects financed in part by the Structural Funds. Therefore contracts
related to the Project will have to be let in accordance with EC public procurement
Rules, where they are relevant. These Rules are set out in a number of
Directives (works, supplier, service, utilities and compliance.) These
Directives are currently being reviewed by the Commission.
Publicity
All Sponsors of successful Projects are required to acknowledge financial help
from the Structural Funds. The Sponsor is responsible for ensuring that there
is enough Publicity to the supported project activity so that Beneficiaries
and the general public get to know about Structural Funds and what they do.
See also Communications Plan and European flag.
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Quality Threshold
Usually expressed as a percentage, this is the minimum number of points a
Project must score in order to be considered for support. For example,
Objective 3 has a quality threshold of 65%.
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R & D
Research and Development
RDA
See Regional Development Agency.
RDP
See Rural Development Plan, Regional Development Plan or Rural Development Programme.
RSA
Regional Selective Assistance.
Ranking
The process by which Objective 3 ESF projects are listed in order of their
score awarded by the Selection Panel. As the stronger Projects will score
higher than the weaker ones these will be at the top of the ranking list.
This information will be used as part of the selection process to determine
which Projects will receive funding.
Reclaimable VAT
Value Added Tax on goods and services bought by the Project Sponsor for the
purposes of the approved Project, that the Sponsor is able to reclaim from
HM Customs & Excise, or becomes able to claim as Eligible expenditure against
the grant for Structural Funds.
Regional Committee
A group of nominated regional experts responsible for the management of
Objective 3. This activity is co-ordinated by the European Programmes
Secretariat, GO-NE.
Regional Devlopment Agency (RDA)
Set up in April 1999 to develop the economic growth and investment activity
within the region. Its resources include Government grants previously
administered by English Partnerships as well as the Single Regeneration
Budget and the Rural Development Programme. It is an agency of Government,
with a board of people drawn from across the region. - In the North East the
RDA is known as One North East.
Regional Devlopment Plan (RDP)
The North East RDP is the cornerstone for the delivery of the Objective 3
Programme in this region. It identifies the regional priorities for support
and sets out the links between Objective 3 and domestic and other European
funded provision. The RDP links closely with the Regional Economic Strategy
(RES) to ensure that ESF support helps to meet the skill requirements specific
to this region.
Regional Economic Strategy (RES)
A publication by ONE NE outlining Objectives and plans to help the region
grow over the next 10-15 years.
Regional Executive Group
A newly formed sub group of PMC, who are formally responsible for dealing with
the day to day technical matters in managing the Objective 2 Programme 2000-2006
and advising PMC on strategic issues. This replaces the Regional Steering Group
(RSG) and the Regional Applications Selection Panel (RASP).
Regional Planning Guidance
Issued by the Government, this provides the necessary spatial framework for
the preparation of structure plans and unitary development plans. Although
not a statutory document, local authorities are obliged to have regard to
the guidance when preparing their own plans.
Regulations
See Structural Funds Regulations.
Retention
The amount (usually 10%) of ERDF grant retained until submission of the grant
Audit documents.
Retrospectivity
In general, expenditure incurred prior to receipt of a Grant Offer Letter is
deemed ineligible. Expenditure before receiving an Offer Letter is regarded as
retrospective funding and will not receive ERDF support. Applicants must
ensure that eligible expenditure relating to a Project does not commence
until a grant Offer Letter has been received, unless the Project meets the
requirements for Retrospectivity agreed by the Programme Monitoring Committee
(PMC) beforehand. In certain circumstances agreed by the PMC, elements of
Project expenditure incurred prior to receiving an offer of ERDF grant can be
included within the total for eligible expenditure. An example would be where
delays in the implementation of a Programme would adversely affect the
capacity for Project delivery that already existed in the region.
Revenue Income
The income likely to be generated by Projects is a factor in assessing the
most appropriate level of grant to be awarded. In general, Capital Projects
with the capacity to generate substantial revenue, e.g. visitor attractions,
are subject to a maximum grant of 25% of eligible costs. There may be
discretion to award a higher grant, based on Appraisal of the project's
business plan and an assessment of whether the revenue likely to be generated
by the Project is "substantial". (The Commission's interpretation is that
"substantial" amounts to at least 25% of the total cost of the investment
concerned.)
Revenue Projects
These Projects encompass the provision of advice, services and other business
support and promotion. Eligible revenue costs are those directly linked to the
delivery of the project. Examples of appropriate revenue costs are additional
staff costs and operating costs of premises.
Round
Applications for Projects are sometimes only accepted at certain times.
Applications received at each date are often called Rounds.
Rules
A series of 12 datasheets that provide detailed guidance on aspects of Structural
fund implementation for the period 2000-2006. See also SEM datasheets.
Rural Development Plan
See England Rural Development Plan 2000-2006.
Rural Devlopment Programme
A One NorthEast regeneration programme targeted at Rural Priority Areas
established by the Government. In the NE they are located in Northumberland,
County Durham and Redcar & Cleveland. From a long-term strategy a three-year
operating plan is developed with a series of outline proposals to address the
strategic aims.
Rural Development Regulation
This brings together a number of formally separate measures for assisting
rural development. The England Rural Development Programme (ERDP) sets out
how we are using the regulation to protect and improve the countryside and to
encourage sustainable enterprise and thriving communities.
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SBS
See Small Business Service.
Scoring
Scoring of project applications. Usually undertaken by Scoring Group or Panel
organised by the appropriate Package Co-ordinator.
SME
See Small and Medium Sized Enterprises.
SPD
See Single Programming Document.
Secretariat
See European Programmes Secretariat.
Sectors
All employers are allocated to an economic sector, in line with the Standard
Industrial Classification (SIC). Sectoral analysis is a useful form of assessing
a region's economic performance.
Selection Criteria
Each Project application is assessed against a set of Scoring Criteria designed
to assess the overall suitability of a Project for Structural Funds. These
criteria are known as the Selection Criteria (previously the Core Criteria).
In addition, applications will be judged against Measure Criteria.
Selection Panel
Once Objective 3 applications have been checked by the Secretariat, they are
passed to a Selection Panel to be scored. These panels are made up of regional
partners who represent sectors such as voluntary organisations, further
education colleges and local authorities.
SEM 2000 Datasheets
SEM stands for 'Sound and Efficient Management'. The datasheets are a series
of notes agreed with the European Commission setting out eligibility Rules for
Structural fund expenditure for the programmes operating during the period
1997-1999. See Rules for period 2000-2006.
Significant Change
Any material changes to an approved project or it's phasing (including changes
in Outputs or costs, alterations to proposed use and delivery, project financing
or ownership). These changes must be notified to the Secretariat as soon as
they occur. Applicants should be aware that changes could result in the
revision or withdrawal of the grant award.
Single Programming Document (SPD)
This is a plan agreed between the local Partnership and the European Commission
on how Structural Funds under Objective 2 will be spent in the NE areas. The
SPD incorporates a strategy outlining the Objectives of the Programme and a
series of Priorities and Measures that outline the scope for Projects that
the SPD will fund. The SPD will also affect how applications are assessed
and help to make sure that projects are selected on the needs of the area.
Small and Medium Sized Enterprises (SMEs)
SMEs are defined by the European Commission as companies :
- With less than 250 employees at the time an application for funding
is made. This includes part time, seasonal and temporary staff.
- A balance sheet at their accounting date with net assets of, currently,
no more than €27m, or, an annual turnover of not more than €40m; and
- Is not more than one quarter owned by other firms which are not SMEs
(e.g. its not a branch or subsidiary of a larger company.
The European Commission recognises the importance of promoting the development
of SMEs as an effective way to create employment and wealth. This policy is a
key element of Structural funding Programmes in the North East, with a number
of Activities specifically aimed at promoting the creation and growth of SMEs.
Small Business Service
The SBS was launched in April 2000 to provide a single organisation in
Government dedicated to helping small firms and representing them within
government. Its mission is to build an enterprise society in which small
firms of all kinds thrive and achieve their potential. This network supports
the Business Link network. The new network became effective on1 April 2001.
Social Capital
Local Social Capital means an intermediary organisation - operating at a
regional or local level - capable of providing back-up for people who pool
their resources with a view to carrying out micro-level projects which promote
employment and social cohesion.
Social Entrepreneurs
Individuals who act entrepreneurially in developing projects, initiatives,
partnerships or organisations whose prime aim is not the growth of financial
profit but the building of social capital. This is not the owner manager of a
small firm whose focus is on growing his/her enterprise in terms of jobs,
profit, markets etc., but it is someone who demonstrates similar determination,
commitment and behaviour within a different context.
Social Inclusion/Exclusion
A culture which either allows or deprives people at the extremes of society
to enter the main-stream labour market; and allows/disallows them a reasonable
quality of life.
Social Partners
Representatives of employers and employees organisations on the PMC.
Strate Aid
Direct help from any agency of Government towards a company. European
Community Rules apply to UK aid if not to European. State Aid must be notified
to the European Commission (through DTI) before it is granted. There are certain
exceptions. The 'Deminimis' rule says that aid to most SMEs * is exempt if the
total amount of 'state' aid, from all sources, is less than €100,000 over three
years. Where ERDF and UK grant assist the company, both are counted as State
Aid [* not textiles, cars, steel, artificial fibres sectors, where all State
Aid is notifiable].
Structural Funds
These are the financial resources agreed by the European Commission and
national governments to promote economic and social development. There are
four main funds, European Regional Development Fund (ERDF), European Social
Fund (ESF), European Agricultural Guidance and Guarantee Fund (EAGGF/FEOGA)
and the Financial Instrument for Fisheries Guidance (FIFG). ERDF and ESF are
delivered principally through Objective 1 (ERDF/ESF), 2 (ERDF/ESF) and 3 (ESF)
programmes. EAGGF and FIFG are delivered through national programs.
Structural Fund Principles
Since 1989 the work of the Structural Funds has been based on four principles:
Concentration, Programming, Partnership and Additionality.
Concentration: Of measures on the three priority Objectives for development.
Programming: Which results in multi annual development
programmes, the result of a process leading to decision taken through
partnership. The process has a number of stages culminating in the measures
being taken over by public or private promoters.
Partnership: Which implies the closest possible cooperation
between the Commission and the appropriate authorities at national, regional
or local level in each Member State from the preparatory stage to
implementation of the measures
Additionality: Which means that Community assistance
complements the contributions of the Member States rather than reducing
them. Except for special reasons, the Member States must maintain public
spending on each Objective at no less than the level reached in the preceding
period.
Structural Funds Regulations
Regulations are the strongest form of community legislation. They have general
application, are binding in their entirety and are directly applicable to all
member states. In terms of the Structural Funds there are five Regulations:
Regulation 1260/99 The "general regulation" laying down general provisions for
the Funds.
Regulation 1783/99 European Regional Development Fund
Regulation 1784/99 European Social Fund
Regulation 1263/99 Financial Instrument for Fisheries Guidance
Regulation 1257/99 European Agricultural Guidance and Guarantee Fund
Sub-Contract
The delivery of elements of projects by organisations other than the applicant
or a project partner.
Sustainable Devlopment
Defined as development that meets the needs of the present generation without
stopping future generations meeting their needs. Structural Funds must contribute
towards long-term economic growth, Social Inclusion, Equal Opportunities and
protecting the Environment.
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Target Beneficiaries
The end user of the service that is provided by a project with structural fund
support e.g. SMEs in the Programme Area, residents of Target Communities
Target Communities
Targeted Communities in the Objective 2 Programme are those designated as
being particularly disadvantaged, based upon agreed criteria. These communities
are in need of extra support to enable local residents to connect or reconnect
with economic activity. Priority 4 of the Programme aims to assist three types
of 'targeted community': Rural Communities; Pit Village Communities and areas
designated as Community Economic Development under the 1997-99 Programme
Technical Assistance
Financial assistance available to the Partnership to help administer and achieve
more effective monitoring of the Structural Fund Programmes. This is Structural
Fund support matched against a "pool" of contributions from successful project
sponsors. The details of eligible actions are covered within the Programme
Complement.
Technical Assistance Panel
An informal sub group of the Objective 2 PMC, a group of officers drawn from
Partnership organisations who deal with practical management issues of the
Objective 2 Programme's technical assistance and the secondment/personnel issues
relating to the running of the Programme.
Telematics
Transmission of information by telecommunication systems.
Teleworking
A term used to describe the ability to work away from the office and use ICTs
to maintain effective communications and give access to all the facilities
required in order to work remotely.
Temporary Job
This is a job that has a definite time limit attached to it. The most
commonly used examples include construction jobs in building work on a project.
See also Permanent Job, Dead-weight, Displacement and full-time equivalent.
Tendering
See Public Procurement.
Territorial Employment Pact (TEP)
An EU pilot initiative aimed at promoting job creation in a local setting.
TEP schemes should work closely with the private sector to explore ways of
connecting people with jobs.
Themed Expert Groups
These Groups provide advice and support to the European Management Board and
the North East Region European Forum.
Third Sector
These are charitable, voluntary and community organisations.
Trade Partners UK
British Trade International's single services brand of International Trade
services delivered to business. The brand will feature on promotional
material and literature of partner organisations (British Trade International,
Business Links, Regional Development Agencies, Chambers of Commerce and other
bodies) as synonymous with International Trade assistance available through
those organisations.
Training Subsidy
A sum of money that can be claimed by a beneficiary of a training project to
recompense them for expenses connected to the project, without which
participation would be hindered. Depending upon the level of support, a
training subsidy may become a wage as defined by Inland Revenue and therefore
subject to tax and NI. It should also be remembered that any allowance could
affect an individual's entitlement to Job Seekers Allowance (JSA) or other
state benefits. Also see wage subsidy.
Transistional Area
Areas no longer eligible for full Objective 2 assistance beyond 1999 remain
assisted by some transitional ERDF support to underpin the results secured in
past Programmes. Maps are available showing these areas. This transitional
assistance is designed to avoid an abrupt end of Structural Funds financing.
It is also intended to consolidate the achievements of earlier structural
assistance during the previous programming period. Those areas no longer
eligible under Objective 2 in 2000 are entitled to transitional assistance
from the ERDF until 2005. Other assistance may also be available from the ESF
under Objective 3 only;
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Ufi
See Univeristy for Industry.
Underspends
A reduction in expenditure and financing which results in a lower grant
requirement or unused resource. See also Gap Funding and recycling resource.
Urban
A community initiative that is aimed at developing Urban quarters in crisis .
Univerity for Industry
Regional network of learning centres which makes extensive use of ICT to widen
access and increase participation in learning.
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VAS
See Verification and Audit Section.
Vademecum
A guidance booklet produced by the European Commission to assist in the
development and preparation of programmes. (Also known as Working Paper 1).
Verification and audit section
This is a department within DfES whose specific role is to issue guidance and
conduct Audits of ESF supported projects.
Venture Capital
Finance for a growing business whereby a portion of equity is sold, for a
major investment in the business.
Virement
The formal transfer of resources, as stated in the Single Programming Document
(SPD), from one Priority or Measure to another. The PMC may agree virement
between measures within a Priority. Virement between Priorities requires formal
approval by the European Commission.
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Wage Subsidy
A Programme where Beneficiaries are paid an amount of money for the time they
are on a work experience and training project in lieu of a salary. This is
usually paid to Beneficiaries on a weekly basis. See also training subsidy
and ILM.
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