European Structural and Investment Funds

Updates to the Management and Control System guidance

April 20, 2020 by Patrick Douglas No Comments | Category Updates

Last week the Managing Authority published our updated Management and Control System (MCS) guidance on the Scottish Government website. These changes were made following recommendations from the Audit Authority and feedback from Lead Partners.

Though the changes were made to the website last week, they took effect from 30 March 2020 as displayed on the webpages that have been updated.

We have provided an outline below of all the webpages and/or guidance documents that have been changed as part of this update.

If you have any further questions on the MCS update, please contact your Portfolio and Compliance Manager via email in the first instance.

Management and Control System (Main document)

This has been updated at the following sections:

• 1.2 Publication of MCS date
• 1.3.3 AA Details
• 2.1.5 New Section on Risk Mitigation
• 2.2.1 Organogram, adding RST, adding note on Retrospective Unit Cost Exercise
• 2.2.2 Unit Cost and minor text changes
• 2.2.3.4 Updated diagram – SIs
• 2.2.3.4 Updated diagram – Operations
• 2.2.3.7 Unit Cost text added
• 2.2.3.8 Unit Cost text added
• 2.2.3.15 Training Section updated
• Adding Annex 1 text throughout and adding link to Annex 1 at end of document (Internal Use Only)

Challenge Fund Principles and Validation Checklist

This has been updated at the following sections:

• Principles – Challenge Fund versus Procurement section to confirm: must still be demonstrably fair, open, transparent and equitable process.
• Principles – Call for Funding section to confirm: receipt of applications, their ‘opening’ and subsequent processing should be recorded showing dates and the individuals / groups responsible, and advisable for links to this document to be included within the call for applications and letters of offer to successful applicants.
• Principles – Cost Model section to confirm: The Lead Partner should ensure there are sufficient controls in place within the application appraisal systems to ensure value for money and, in claims checking, compliance with the National Rules.
• Principles – Application and Approval stage change to question: Does the applicant demonstrate an understanding of the Procurement Regulations?

National rules on eligibility of expenditure

The documents on this page have been updated at the following sections:

• National Rules, version 8 – New section added at 4.2.5 re Holiday Adjustment. This can be applied retrospectively.
• Single & Multi-Operation Timesheet – A description field in the guidance tab has been updated following query from LP found guidance incorrectly named a cell number.
• Sick Pay Template – Tab for each month added to allow LPs to record sick pay absence that crosses months, as requested. ‘Confirmation from Payroll Finance Manager or if different, EU Project Manager’ signature box added to bring in-line with timesheets as requested by multiple LPs.
  (24/04/2020 UPDATE: We have been notified that there is an issue with the Sick Pay template. We are working to fix this issue urgently. In the meantime, we have taken the Sick Pay template offline and will republish as soon as it is ready.)
  (15/05/2020 UPDATE: The issue has now been fixed and the Sick Pay template is now available.)
• Back Pay Examples – This document has been removed from the National Rules and made link to the website – no change to text.

Document retention guidance

Complete re-work of the previous guidance issued in November 2015. It contains all the same principles as the previous guidance, but order and formatting changed. Note on GDPR has been added.

Horizontal Themes

Text has been simplified to remind Lead Partners of their regulatory monitoring requirements.

ESF Participant Guidance

Updated low income employed thresholds, updated from Employment Deprived Areas barrier with Scottish Index of Multiple Deprivation 2020 postcode checker, and update on requirement for proof of address.

Article 125 Verification Checks – Evidence Required Achievements and Expenditure

Logo added, ERDF Recipient information updated, and Non-Recipient Guidance added.

Article 125 (5)(b) On the spot verifications of operations

Date of Wash-up added to report.

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