ESFVON
European Structrial Funds Voluntary Organisations Northern

An introduction to Co-financing of the European Social Fund Objective 3

What is Co-financing?
Co-financing means paying both ESF money and the required match funding to providers in a single stream.
Why is Co-financing being introduced?
In the eyes of many, obtaining ESF funding seems complicated and problematic.

Providers have to bid - and subsequently account - to separate bodies for ESF money and match funding. This has increased their administrative workload and costs. ESF has traditionally been managed and audited on the basis of inputs, rather than outputs.

Some providers have been unable to secure match funding. This has meant that some potentially valuable training provision has not been delivered.

Making ESF support available on a project by project basis has made it hard to plan strategically.
How will Co-financing help?
Co-financing is being designed to achieve the following:

How will Co-financing work?
Co-financing will be delivered through Co-financing Organisations (CFOs) and currently in the North East of England the four Learning and Skills Councils for Northumberland, Tyne & Wear, County Durham and Tees Valley have been granted provisional approval to operate as CFOs.

Each CFO will submit an application to Government Office for the North East for an allocation of ESF and providers will then apply to the CFO for their area for a single stream of funding i.e. ESF and match funding.

It is anticipated that Co-financing will commence in the autumn of 2001 for some CFOs and that the majority of future ESF projects will progressively be funded through the CFOs, although not all Measures will be covered by all CFOs.

Some funding opportunities will still remain through direct bidding to Government Office but the extent and availability of such funding remains to be decided.
How will we be informed about Co-financing in in our area?
The CFOs should already be consulting with voluntary and community organisations as to the provision which is needed in their areas and will be publicising available opportunities in due course.

ESFVON will also be publicising through it's regional network the opportunities available, as these could differ in different areas.
Were Voluntary organisations consulted on Co-financing?
Yes. ESFVON convened a consultative forum and made detailed responses direct to the Co-financing team at the Department for Education and Employment. Additionally, it has linked with the Third Sector European Network - representative of all English Regions - in making further representations to safeguard the contribution of the sector.
Are there any outstanding issues?
Yes. Whilst ESFVON will be working with CFOs to ensure the success of Co-financing there are many issues which are still not clear.

These include matters such as:

  1. Regional projects - do they have to make a separate application to each CFO?
  2. How will projects be selected - when will the selection criteria be known?
  3. Will match funding in kind not be allowed in the future?
  4. Will volunteer time still be allowed as match funding in kind?
  5. Will small projects still be considered?

These and other outstanding questions are being actively pursued by ESFVON and by the Third Sector European Network.
Will ESFVON be able to help us?
Yes. ESFVON is striving to ensure that no organisation is disadvantaged under the new arrangements, and indeed that organisations will benefit wherever possible.

Co-financing may proceed at different rates in different parts of the region, and CFOs may have differing areas of involvement i.e. not covering all Measures. ESFVON will therefore, be seeking to develop it's current advice and support services to ensure that organisations are fully informed of opportunities available to them through Co-financing together with assistance on applying.

ESFVON will also provide support and advice on project development in anticipation of which funding source might be most appropriate.

It should be remembered that Co-financing of Objective 3 is only part of the help available from the Structural funds. ESFVON will continue to provide advice and support in respect of the forthcoming ESF Global Grants for small schemes, Objective 2 and delegated grants schemes, and Community Initiatives.

For further information on how ESFVON can help your organisation, contact us on:

0191 274 9886


Co-Financed Provider Proposal Appraisal and Selection (As agreed with ESFD and national LSC)

S = Criteria to determine the selection of projects

A = Additional information to support the appraisal and selection of projects and to identify where the project fits within the approved CFO bid.

O = Optional information

SActivity focusHow closely does the proposed project relate to what is described in the Co-Financing Plan and Bidding Prospectus
SActivity summary This should clearly identify:-

  1. what the project intends to do;
  2. how it will support the Co-Financing Plan/ Bidding Prospectus;
  3. why this is needed & what evidence is provided to support the need
  4. how the need will be addressed;
  5. who is responsible for each element of delivery
AGeographic Area of DeliveryDoes the project clearly identify which areas will be covered;
Are the areas covered consistent with the areas identified in the Bidding Prospectus ?
ATarget GroupsAre the target groups of the project consistent with the target groups identified in the Bidding Prospectus
STimescales Projects must operate between the 1 Jan 2002 - 31 Dec 2003
SLinkages
  1. Has the project been developed in partnership with other organisations?
  2. Will other organisations be involved in the delivery of this project ?
  3. Are there clear linkages to the RDP; RES; the LSC Local Strategic Plan; the County Durham Partnership Economic Strategy etc
SAdded ValueHow will the project add value to existing mainstream provision supported by the LSC i.e. what additional activity will be provided by the project that can not be provided elsewhere ?
SOutcomes
  1. Are the outcomes consistent with those identified in the Bidding Prospectus?
  2. Are the outcomes realistic and linked to the strategic aims and objectives of the project
SActivity Management
  1. How will the project be managed?
  2. How will the project be delivered?

What systems will be used to support the delivery of the project i.e. financial/ monitoring etc
SFinancial Information
  1. Is there a breakdown of activity costs ?
  2. Is there a unit price ?
  3. Are the costs realistic ?
  4. Do they demonstrate value for money
SCross-Cutting Themes Does the project clearly demonstrate how it will contribute to the co-financing plan cross-cutting themes of:

  1. Equal Opportunities
  2. Information and Communications Technology
  3. Sustainability
AIs the applicant submitting / planning to submit a proposal(s) to any other Co-Financing Organisation? If yes, proposals must include details identifying how they will ensure that duplication of activity does not occur
ADoes the applicant currently hold a contract with the LSC? If the applicant is successful in their application and is not currently a provider of services to The Learning and Skills Council County Durham it will be necessary to undergo an additional assessment as a new provider
OOther information


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