ESFVON
European Social Fund Voluntary Organisations Northern

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Objective 2 - Your Questions Answered.

What is Objective 2?
Objective 2 is a European funding programme to assist in the regeneration of regions seriously affected by industrial decline. The North East has been selected as one of these regions, with most areas in it receiving some form of support.

Objective 2 has two Funds, the European Social Fund (ESF) and the European Regional Development Fund (ERDF).

What is the European Social Fund (ESF)?
The ESF is one of four Structural Funds set up by the European Union (EU). It provides financial support to human resource projects which address training and employment needs for both employed and unemployed people.

Typical activities include vocational advice and guidance, motivational support, pre-vocational and vocational training, and job search support.

What is the European Regional Development Fund (ERDF)?
ERDF is another of the Structural Funds. There are two types of project funded, capital and revenue. These projects provide assistance primarily for infrastructure projects and investments which create or maintain jobs.

Typical activities include new facilities, improving/converting existing facilities, community appraisals and capacity building.

Who can apply for Objective 2 funding?
Any legally constituted organisation (not individuals) can apply.

How will we find out if what we want to do might be eligible?
If you have a potential project in mind or would like a general discussion on Objective 2 opportunities, contact either Victor Ottaway or Sue Mason at ESFVON, or Sue Featherstone at One Voice Tees Valley (OVTV) European Service (contact details on the back cover). All will be happy to discuss your ideas and advise you.

What is the Single Programming Document (SPD)?
The SPD sets out the North East's case for receiving Objective 2 funding for the 2000-2006 Programme. It contains various statistics which show the major needs of the region. The SPD also contains information on the strategic priorities Objective 2 Programme will fund in the North East. Use the April 2001 version.

What are the priorities of the SPD?
There are three proposed priorities for the 2000-2006 Programme. These are:-

Priority 1 - Growing New Businesses & Marrying Entrepreneurs with Ideas
The strategic objective is to create jobs through an increase in the region's stock of SMEs.

Priority 2 - SME Growth and Competitiveness
The strategic objective is to create jobs through improvement in the competitiveness of existing SMEs.

Priority 3 - Strategic Employment Opportunites
The strategic objective is to realise significant job creation potential through investment in specified sites/areas.

Priority 4 - Targeted Communities: Building Capacity and Connecting with Jobs
The strategic objective is by 2008 to raise employment in the Region's target communities to the regional average by enhancing the employability of residents and their access to work.

What are the Target Communities?
Target communities are the electoral wards or enumeration districts (part wards), which have been defined as having the greatest need within the North East. Examples from each Local Authority areas in the Objective 2 Programme are:- Longframlington, Noramshire, Cowpen, Ellington, Allendale, Newbiggin East, Deckham, Byker, Chirton, Cleadon Park, Town End Farm, Grange Villa, Burnhope, Ushaw Moor,Dawdon, New Trimdom & Trimdon Grange, Cotherstone with Lartington, Stanhope, Cockerton West, Rossmere, Thorntree, South Bank, and Hardwick.

What is the Programme Complement?
The Programme Complement is the document which gives the detailed activities eligible to be funded under each Priority. Unlike the SPD, which was approved by the European Commission, the Programme Complement is agreed regionally. The regional approval of the Programme Complement allows amendments to be made more easily than under previous Programmes. Use the June 2001 version.

What does the draft Programme Complement specify for Priority 4?

What is capacity building?
The aims of capacity building are to develop the actual skills, information and knowledge, as well as infrastructure, which can be sustained within a community. This should be an on-going strategy which can be sustained over a period of time and involve local people.

What are Local Social Capital and Global Grant Schemes?
These are simplified grant schemes set up to encourage smaller organisations and those seeking lesser sums of money to apply, as they may not need any match funding, they need only submit a much simplified application form, decisions are quicker and monitoring requirements are reduced. There may be a maximum limit for applications or approximately £25,000.

Local Social Capital Schemes are for ERDF activities whereas Global Grants are for ESF. There are schemes already operating in parts of the region. Please contact ESFVON for further information.

What are transitional areas?
For the 2000-2006 Programme there was a need to reduce the size of North East's map of eligible areas. Transitional areas are those deemed most able to maintain economic progress without the aid of Objective 2 support. These areas will still be able to access ERDF funds, although on a tapering scale, until the end of 2005. Whilst the applications process will cease at the end of 2005, funding does not have to be spent until the end of 2007. There is no ESF support under Objective 2 for these areas - ESF support is available through Objective 3. For further information about Objective 3 contact ESFVON, the North East's regional Objective 3 voluntary and community sector co-ordinating body.

What is the difference between Objective 2 and Objective 3?
There are a number of differences however, in simple terms, the basic difference comes from the targeting of beneficiaries (as the trainees/clients of an ESV project are called) on ESF courses. For Objective 3 the target is social groupings such as lone parents, young people, older workers, ethnic minorities, ex-offenders etc. For Objective 2 the ESF focus should be on geographic locations, with no specific targeting of the different social groups living in these areas. There is no ERDF in Objective 3.

Does Objective 2 provide all the funding for a project?
No. ESF will fund only a proportion; up to a maximum of 45% of the eligible project costs. In general, ERDF will fund up to a maximum of 50% of eligible project costs, through this can vary. You will need to match this by getting funding from elsewhere.

Where might match funding come from?
From the public, private or voluntary sector. In-kind contributions may also be eligible. For ESF projects only, at least 10% of the total eligible costs must be from a public source. Several government programmes and funds can be used, including the Small Business Service, Phoenix Fund, New Deal for Communities, New Deal, Employment Zones, Single Regeneration Budget. The Communities Fund is also classified as public match funding.

Some voluntary organisations are also able to use their own resources as public match funding.

What are in-kind contributions?
In-kind contributions arewhere a project benefits from provision (e.g. staff time, equipment) donated by another prganisation or private individual. This contribution can then be used by the project as match funding in-kind. Voluntary unpaid work by individuals can also be included as match funding. However, all in-kind contributions must relate directly to the activities undertaken by the project and be appropriately valued and accounted for in terms of both time and money.

Can we buy equipment for the project under ESF?
Yes, providing no single item costs more than £1,000. It is advisable however to check the item's eligibility if in doubt.

What project costs are covered?
Any actual eligible costs spent in carrying out the activity, including staff, beneficiary and other costs. Suggested headings for these costs appear on the application forms to guide you.

What's normally included in 'other costs'?
'Other Costs' include:-

How long should a project application be for?
The initial maximum length of ERDF projects is up to the mid-term review of the Programme at the end of 2003, with spend continuing until the end of 2005. ESF applications can be up to 24 month in length and are not constrained to calendar years. All projects must start before the end of Decmeber 2003.

Is Objective 2 ESF support targeted at particular age groups?
Beneficiaries must be between 13 and 63 years old to be eligible for ESF support. This age runs from someones 13th birthday, to having a full year to go before statutory retirement age at the end of their ESF support. In effect the maximum age for starting on an ESF project is 58 for a woman and 63 for a man. It should be borne in mind when working with 13-16 year olds, that actions cannot be part of mainstream, statutory education provision and the young person must be excluded, in danger or exclusion or long term truants from school - if in doubt, please seek advice on your project's eligibility.

Does ESF only fund unemployed beneficiaries?
No. Funding is available for both employed and unemployed people.

How will the Programme be delivered?
In the North East, each Priority is delivered through a package approach, improved from that operated during the 1997-99 Objective 2 programme. Partnerships are formed at regional, sub-regional or local level, as appropriate to the type of actions to be undertaken. These partnerships develop packages of related projects addressing local identified needs. Anyone seeking to become involved in regeneration within a geographic or interest area has the opportunity to attend package meetings, with local residents of the target communities areas being actively encouraged to participate in the Priority 4 packages partnerships.

Who ultimately decides which projects are approved?
Under the improved package approach, packages have responsibilities to ensure all applications submitted to Government Office -North East (GO-NE) are of a certain standard. Package partnerships also select which projects best meet the identified needs, and again in Priority 4 local residents have a say. The European Programmes Secretariat at GO-NE will then fully appraise projects and issue approvals once all necessary criteria have been satisfied.

Are there other issues we need to think about?
The EU specifies three key issues, known as horizontal or cross-cutting themes which apply to all areas of the programme. These are the Environmental Sustainability, Equality of Opportunities and the Information Society. These are now very important topics and you will need to demonstrate that you have active policies for environmental sustainability and equal opportunities issues and complete checklists for all three themes.

Are projects monitored?
Yes, monitoring is an important requirement for all European funded projects. Monitoring forms are returned quarterly and all projects are liable for verification visits. Monitoring is more detailed and performance orientated than in previous Programmes.

Can a voluntary or community group be classed as a Small or Medium-sized Enterprise (SME)?
In the mainm, an SME is a business/enterprise, which employs fewer than 250 people. This definition includes voluntary and community not-for-profit organisations.

Is value for money important?
Yes. Value for money is becoming increasingly important, especially as the overall size of the programme has been reduced. However, simply because a project is viewed as being expensive to run, does not mean it will not be funded. If a good case can be put forward to justify the expense, this will be taken into consideration at appraisal. An example of this would be a rural training project having higher than average costs because of the increased cost of services it has access to.

What is Added Value?
Added value applies to both ESF and ERDF and ensures EU funds are not used to substitute for existing funds. It is expressed in three ways:-

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