ESVFON - ESF Objective 3

ESFVON

European Structural Funds Voluntary Organisations Northern

Objective 3 Contents

Your Questions Answered

What is the European Social Fund (ESF)?

The European Social Fund was created by the European Union for the specific purpose of helping member states finance initiatives to meet training and employment needs. Voluntary Sector projects receive significant support.

What is Objective 3?

ESF Objective 3 aims to give support towards the running costs of schemes providing a range of measures to help jobless people into work by upgrading their skills and employment potential. It also supports retraining/upskilling of employees and the promotion of life long learning. There are five Policy Fields (see Appendix) that define project actions which might attract funding.

Who can apply for Objective 3 funding?

Any legally constituted organisation (not individuals) can apply.

What kind of project/activity can be funded?

As noted above, project actions have to be in line with five Policy Fields. These are each further sub-divided into two or three Measures. More detail is given later in this information sheet, but overall, projects must target either: active labour market policies, equal opportunities and social inclusion, lifelong learning, adaptability and entrepreneurship, or improve the participation of women in the labour market.

How does an organisation access Objective 3?

From 2002 most of the Objective 3 resource is now accessed via Co-Financing, which means making an application to an intermediary agency known as a Co-Financing Organisation (CFO). It may still be possible to bid directly to Government Office for the North East (GO-NE) for funding, but there will clearly be less money available through that option than was the case before Co-Financing. Direct bidding is explained later in this guidance note.

What is Co-Financing?

Co-Financing is a new funding opportunity whereby a few large domestic funders are appointed as Co-Financing Organisations (CFOs) effectively 'middlemen' in the ESF Objective 3 process.

The CFOs apply to GO-NE for large aggregates of ESF funding directly from Objective 3 across most, if not all, Policy Fields and Measures, and for which they then have a responsibility to deliver outputs. The CFO does not deliver training itself but effectively 'sub-contracts' to individual organisations to do this. The key difference to previous arrangements is that organisations can apply for 100% funding. They do not have to provide 'match' funding. They no longer, either, have a direct contractual arrangement with the ESF, only with the Co-Financing Organisation. They will, of course, have to complete the Co-Financing Organisation's own applications process and conform to specific requirements of the latter in meeting the sponsor's obligations under Objective 3.

Can organisations still bid for Objective 3 funding directly?

Yes, if the CFO in question does not have a remit for the Policy Field and Measure to which your project relates, or it is not active in those specific actions your project provides. (See also p3, 1st question).

There is a general rule that you cannot apply to GO-NE for direct funding into a Policy Field for which a CFO has been given a remit. Nevertheless, note that Co-Financing may not be available in all Measures or in all parts of the region. Contact ESFVON to consider the best options for your organisation.

Which organisations are designated as CFOs?

Up until April 2003 the Learning & Skills Council where not where the only agency through which organisations could apply for Co-Financing. On that date Jobcentre Plus also commenced operation as a CFO for Objective 3.

Isn't Co-Financing the obvious preferred route to voluntary organisations?

It would appear so - if there is sufficient resources available. 100% grants are very inviting, but the apparent loss of match funding to the 'system' will inevitably shrink the overall size of Objective 3 activity - perhaps significantly. Moreover, there is likely to be more competition for funding brought about by the increased attractiveness of 100% funding. Also, the CFO will operate a more 'strategic' selection approach to determining which projects to support, which might make it harder to get funded. A project scoring high on application may not be supported, for example, if it is seen to duplicate existing provision in its area. Finally, CFOs may well specify particular requirements within the overall framework of their contracted remit. All of which leaves some organisations preferring to maintain their 'independence', as they see it, in bidding directly to GO-NE.

How does an organisation apply for funding through Co-Financing?

You will have to contact the LSC for the area in which the project will operate. There are four LSCs in the North East: Northumberland, Tyne & Wear, County Durham and Tees Valley. Ask to be placed on their mailing list so that you receive Co-Financing Bidding Prospectus, together with an Application Form. The Prospectus will tell you if you are eligible, which Policy Fields are currently open for bids, together with closure dates. The Application Form includes specific guidance for the applicant on how to complete the form. You can also contact ESFVON to get an update on any Co-Financing options available.

What do we do if a Co-Financing Organisation informs us that our project is not eligible for funding?

It is important to find out why your project is declared ineligible. It may be that your particular CFO does not have a remit for a Policy Field to which it would relate. In that case you are still eligible to bid directly to GO-NE, even if this does mean you have to find 55% match funding (see below). As noted above you generally cannot apply to GO-NE for direct funding into a Policy Field when CFO has a remit for the particular activity which your project entails. However, it may be that even if your project does conform to a policy area for which your local CFO has a remit, the CFO is not canvassing for bids to target the specific outputs you indicate. In that case, we recommend you contact ESFVON to see if a direct bid to GO-NE may still be possible. Indeed, do this if you want any advice about which funding option to pursue. We are a regional charity established to support organisations in accessing ESF. We will be pleased to arrange an appointment to discuss your ideas in detail if necessary.

How often do CFOs call for funding?

At present this is not all together predictable. Most CFOs have called for bids every three months or so. But this may well change and it is, in any event, unlikely that such bidding rounds will cover all remitted Policy Fields every time.

What happens when a project is approved for Co-Financing?

A contract to deliver outputs will be formally agreed. If your organisation has never previously had a contract with an LSC it will have to qualify as a recognised provider before this can happen. This entails completing another Application Form indicating a range of organisational quality standards - viz. Management, finance, health & safety, equal opportunities, etc. You will only have to do this when you know your application has been successful - which is some incentive since the new provider requirements might, at first glance, seem daunting. The CFOs in our region have made a commitment to offer support to enable organisations to achieve these standards.

What kinds of project actions might be funded?

The best way to answer this question is to give a broad overview of the Policy Fields and Measures under Objective 3. Since not all CFOs cover all these, the 'remit' for the LSCs is appended for each (see Appendix).

In making an application through a CFO does an organisation have to submit proposed profile of project costs?

Yes, you will have to submit a budget for the project comprising cost items which are eligible in terms of ESF. ESFVON can advise you on what is or is not eligible.

What broad categories of spend would be ineligible in a Co-Financing bid?

The various CFOs can differ in the information indicated to potential applicants on eligibility of costs. The only clear exclusion concerns capital spending: Please note that ESF is not a Capital Programme - therefore any expenditure for items of equipment must be kept to an absolute minimum, must be relevant to the project and the cost of any individual item must not exceed the ESF guideline figure of £1000 per individual item.

NOTE: the remainder of this information sheet is primarily directed at those organisations envisaging a direct bid to GO-NE (i.e. not Co-Financing) to the Policy Fields and Measures of Objective 3 as indicated in the Regional Development Plan.

What is the Regional Development Plan (RDP)?

The RDP describes the framework for the use of ESF Objective 3 funding for the North East Region in the period 2000-2006. It provides specific information on what is wanted - the Policy Fields, for instance, are set out in this document. There is also much statistical information relating to the labour market needs of the region. In making a direct bid to GO-NE for Objective 3 funding you will need to meet the eligibility criteria for activity and recruitment targeting for a Measure in one of the Policy Fields. You will also be expected to contribute to some (not necessarily all) of the outputs listed in the impact tables immediately preceding the Policy Field you choose. You only have to read the rest of the RDP selectively to establish any relevant evidence in support of your bid. The Regional Application Guidance will give you more specific information.

What is the Regional Applications Guidance?

This is a slimmer document published each application round by Government Office for the North East which prioritises actions indicated in the RDP, as well as stating possible additional requirements. In bidding directly to GO-NE you will have to consult this document in conjunction with the RDP to determine whether your project is eligible and pertinent to the current call for applications. The Regional Applications Guidance (RAG) also includes details of the key scoring section (Section 4) of the application form itself, indicating the criteria of what is required for each scoring sub-section.

How often is there a call for direct applications?

There will be limited funds for direct applications and therefore the availability of resources, and the Policy Fields and Measures they cover, may vary at each bidding round. Contact ESFVON for the latest position.

What is the difference between Objective 2 and Objective 3?

There are a number of differences. In simple terms the basic difference comes from the targeting of beneficiaries 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 social targeting of the different social groups living in these areas. There is no ERDF in Objective 3.

Will a direct bid to Objective 3 provide all the funding for a project?

No. ESF will fund only a proportion of the costs, typically up to 45%. You will need to match this by getting funding from elsewhere.

Where might match funding come from?

Form the public, private or voluntary sector. In-kind contributions (see below) may be eligible. For ESF projects, at least 10% of the total eligible costs must be from a public source. Many Government Programmes and funds can be used, including the New Deal and Single Regeneration Budget, and Local Authority grants. The Community Fund (National Lottery) 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 are made by voluntary and private sector bodies through unpaid contributions, such as, loan equipment and staff time for example. 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 in terms of both time and money.

Can we buy equipment for the project under ESF?

Objective 3 is a revenue fund but equipment can be purchased providing no single item costs more than £1,000. Additionally, the number and size of capital purchases are restricted. Contact ESFVON for clarification.

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 form to guide you.

How long can a project application be for?

Currently, projects can be funded until 31 December 2003. The length of projects from 2004 has yet to be decided. Contact ESFVON for the latest position.

Are projects monitored?

Yes - monitoring is an important requirement for all European funded projects. Monitoring forms are returned regularly, and all projects are liable for verification visits. For the new Programme, monitoring will be more detailed and performance orientated than in the past.

Can a voluntary or community group be classed as a Small or Medium-sized Enterprise (SME)?

In basic terms, an SME is an 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 then 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 utilised.

How do we apply - can ESFVON help us?

We have a telephone help-line service
We will meet with you to discuss project ideas to ensure that they meet the priorities of local Co-financing and current RDP.
We provide a regular Bulletin service to inform you of latest developments and opportunities
We provide information seminars on ESF funding
We offer individual surgeries so that you can refine your application

Some seminars may entail a small charge, otherwise all services to voluntary and community organisations are free.

APPENDIX

POLICY FIELD 1: ACTIVE LABOUR MARKET POLICIES

Measure 1, Advice And Guidance For Active And Continuous Job Search Strategies

Eligible beneficiaries: unemployed or jobless, especially those for more than six months, and especially those unemployed for between 6 and 12 months to prevent them becoming long-term unemployed. Prioritisation within the appraisal system will be given to: those with qualifications but lacking experience; those who lack relevant and up to date qualifications or key skills; those with a history of short-term unemployment; returners to the labour market.

Eligible actions: enhancing advice, guidance and community education through innovative systems and approaches. Early interventions, including advice and guidance, using new forms of IT.

Remit:), County Durham LSC (D), Northumberland LSC (N) Tees Valley LSC (TV), Jobcentre Plus (JCP)* - *from 2003.

Measure 2, Improve the Employability Of The Unemployed, Returners And Young People Of Working Age

Eligible beneficiaries: All those who are jobless or unemployed. First priority will be given to the jobless aged between 16 and 24 years. After this equal priority to lone parents seeking to enter/re-enter the labour market; those jobless for more six months, but especially those unemployed for more than a year; the jobless and lacking core and basic skills, and/or formal qualifications; the jobless lacking experience; the jobless aged over 50.

Eligible actions: Providing support through integrated approaches, including advice and guidance, continuous job search activities, and including the provision of vocational social and key skills. Encouraging unemployed people to start their own businesses. Encouraging local partnership approaches to ILM projects including support to improve the local capacity for community development.

Remit: D, JCP* N, TV

POLICY FIELD 2: EQUAL OPPORTUNITIES FOR ALL AND PROMOTING SOCIAL INCLUSION

Measure 1: Access To Basic Skills Provision (Pre-Vocational)

Eligible beneficiaries: People with disabilities; ethnic minorities; lone parents; older workers i.e. those aged over 50 years; ex-offenders; the homeless; refugees; those recovering from addiction; the long-term unemployed i.e. those unemployed for more than one year; those with learning disabilities, literacy and numeracy problems; groups in rural and other areas who have difficulty accessing appropriate training provision.

Eligible actions: Supporting intensive interventions to meet the needs of the client group through vocational guidance, training and employment support measures. Supporting pre-entry training related to identified labour market needs.

Remit: D, N, T&W, TV

POLICY FIELD 3: LIFELONG LEARNING

Measure 1: Promoting Wider Access and Participation in Life Long Learning

Eligible beneficiaries: The target group is expected to be a diverse range of beneficiaries, but in particular focusing on those who traditionally play little or no part in lifelong learning. The beneficiaries may include those employed and those unemployed/jobless. For those in employment, the emphasis is on the individual and employee led training and learning. For the unemployed, the emphasis is on non-vocational learning for those with little or no formal qualifications.

Eligible actions: Providing individuals with ICT skills. Providing individuals with basic and key skills and reducing the risk of those with inadequate skills falling behind. The identification and promotion of means which can open up access to learning for those adults currently least engaged with the education system.

Remit: D, N, T&W, TV

Measure 2: Lifelong Learning Provision Responsive to the Changing Needs of Employers

Eligible beneficiaries: Beneficiaries must be employed (not as stated in the RDP) Prioritisation through the appraisal system will be for: engendering a cultural change towards learning in employers, for example through IiP and UfI; and on greater levels of training and learning for employees.

Eligible actions: Supporting business especially SMEs by equipping the workforce with the right skills. Skills forecasting and ensuring that skill training relates to the Regional Economic Strategy. Encouraging the commitment to learning and training in employers.

Remit: D, N, T&W, TV POLICY FIELD 4: ADAPTABILITY AND ENTREPRENEURSHIP

Measure 4.1: To Update And Upgrade Employees' Vocational Skills, Including Basic And Key Skills

Eligible beneficiaries: SME employees, with particular emphasis on those with outdated or outmoded skills; SME employees in those sectors likely to experience further decline.

Eligible actions: Promoting employee development by updating and upgrading vocational skills while considering new methods of delivering basic skills. This could include the provision of advice and guidance, training trainers and managers and promoting the effective use of ICT in SMEs.

Remit: D, N, T&W, TV

Measure 4. 2: Identifying and Meeting Emerging Skills Shortages

Eligible beneficiaries: As for Measure 4.1

Eligible actions: Identifying skill shortages within all sectors throughout each region, including new skills emerging from the knowledge driven economy. Providing training to meet identified skills shortages, including innovative methods of training delivery.

Remit: D, JCP*, N, T&W, TV

Measure 4.3: Entrepreneurship and Competitive SMEs

Eligible beneficiaries: SMEs, with a focus on those seeking to diversify their activities; SMEs, with a focus on those with growth potential; encouraging business start ups; engendering enterprise, including young people and those individuals unemployed for less than one year.

Eligible actions: Supporting small and medium sized companies to help them innovate to expand and create new employment opportunities. Supporting individuals setting up their own businesses such as advice on regulatory aspects, recruitment and business planning. Projects which contribute to developing a positive culture for enterprise development in the North East.

Remit: D, N, T&W

POLICY FIELD 5: IMPROVING THE PARTICIPATION OF WOMEN IN THE LABOUR MARKET

Measure 5.1: To Improve Access to Learning and Remove Barriers to Employment

Eligible beneficiaries: Women returners, lone parents, those women who are unskilled or possess only basic skills, those women employed in traditionally male dominated occupations, other women in the labour force who face gender discrimination.

Eligible actions: Improving the quality and flexibility of local training including participation in lifelong learning partnerships. Improving the relevance of skills training to local employment needs and opportunities. Tackling barriers, such as childcare and other caring responsibilities, raising awareness and promoting family friendly policies. Providing vocational training to allow women to enter non-traditional occupations. The development of entrepreneurs, especially amongst those who have been out of the labour force.

Remit: TV

Measure 5.2: Research into Gender Discrimination

Eligible beneficiaries: As for Measure 5.1

Eligible actions: Research and development of practical recommendations to combat occupational segregation, gender stereotyping and institutionalised discrimination on recruitment, pay, progression and other aspects of employment. Research, development, the identification and dissemination of best practice which contribute to realising the objectives of the measure.

Remit: None