European Structural and Investment Funds
Update on Phase 2 Applications
Phase 2 Strategic Intervention approvals have reached almost £170 million since its launch earlier this year. Over £50 million in Operation approvals have also been made. This is good progress, although since almost half of the programme remains to be committed towards new or extending existing operations, lead partners are encouraged to submit proposals for new or revised Strategic Interventions or Operations to deliver activity for the remainder of the programme period – effectively to end June 2023.
A list of the current approved operations, including phase 2 to date is regularly updated on the website: https://beta.gov.scot/publications/esif-operations-funding/
MA approval panels continue to meet on a six-weekly cycle in order to move away from fixed submission dates and encourage submitting an application when it is ready. Once applications have been appraised and are ready to be taken for decision they will go to the next available panel. The pressures on everyone involved (lead partners, managing authority and delivery partners) around applications, claims and audit requirements means the planned programme for submitting all SIs by June was not possible.
To help increase the pace of submitting phase 2 applications, consider whether an extension to the existing Strategic Intervention or Operation offers a simpler route. The guide below is intended to help with this consideration:
If an approved SI is requesting an extension and/or additional grant, a change request should be submitted, with annexes sent to your Portfolio and Compliance Manager
- An SI change request template – help section on EUMIS
- An SI Extension Request Supplementary Questionnaire – help section on EUMIS
- An SI Outputs and Results Annex – https://beta.gov.scot/publications/esif-strategic-intervention-application/
This is not affected by the type of changes to an operation.
If a new SI is being submitted:
- New Strategic Intervention Annexes to: email@example.com
If an approved operation is requesting an extension, additional grant and/or a change to intervention rate and there is no change to the scope of the operation a change request should be submitted, with annexes sent to your Portfolio and Compliance Manager
- EUMIS Change request
- An Operation Change Request Template – help section on EUMIS
- An Operation Extension Request supplementary questionnaire – help section on EUMIS
- Financial Annex – one to be completed for each operation – https://beta.gov.scot/publications/esif-operation-application/
- An Operation Outputs and Results Annex – one to be completed for each operation – https://beta.gov.scot/publications/esif-operation-application/
If the scope of an operation is changing or a wholly new operation is being submitted, a new operation must be submitted:
- New Operations Annexes to: firstname.lastname@example.org
Changes in Intervention Rates
When requesting an increase in intervention rate for the second phase, there are two options:
Option 1: Lead partners to request an increase in the intervention rate of an existing operation where it is being extended and there is no change to the scope of the activity. In this case, if a lead partner wishes to request an increase to the intervention rate of an approved project to and the extension request is approved, the grant due on previously incurred and declared expenditure will increase and the payment made will reflect the difference between the previous payments and the grant due at the higher intervention rate.
For example: if £600,000 of expenditure has been declared and £240,000 paid based on an intervention rate of 40%; following the change, the intervention rate increases to 50% and as a result £300,000 is now due. The additional payment would be the difference (£60,000) and relates to the previously declared expenditure.
Option 2: Lead partners submit a new operation at an increased intervention rate and maintain the previously approved operation with no changes. This would require that a full operation application is submitted and assessed, and that the new operation be treated as a wholly separately for claims, reporting, monitoring and compliance.
To assist our planning and help you through the process, including setting milestones, please discuss with/advise your Portfolio and Compliance Manager of your intentions on any element of the phase 2 process.