Governance and delivery through Opt-In Organisations

Local Sub-Committee 39

Local Sub-Committee 3

Local Sub-Committee 2

Growth Programme Board PMC

Performance and Accountability

Sub-Committee

GPB Sub-Committees[e.g. Thematic, Evaluation, TA]

Local Sub-Committee 1

Local Sub-Committees

19 March 2014 Page 2

LEP Area PartnershipsDraft Terms of Reference

• Role of the local sub-committee (LEP Area Partnership)o Implementation plano Prioritise operationso Test fit with ESIF: strategic fit, value for money, other activitieso Make recommendations on operations – Fund / de-commito Agree oversight of delivery & outputs

• LEPso Convene partners & organise Chair from amongst themo Contribute to development of pipelineo Ensures operations fit within wider context of the SEP

• MAo Deputy Chair & secretariat

19 March 2014 LEP Event ESIF Presentation Page 3

Outline ApplicationStage One

Local Annual

Implementation Plan

Develop Full Application

Publish Call

Funding Agreement

signed

Funding Agreement

Applicant

Managing Authority

European Structural & Investment Fund 2014-20 High Level Business Process – Inception to Funding

Agreement (Non Opt-In)

Promote and

Publicise Call

Review Outline

and Prioritise

Assess Outline against Criteria

Full Technical Appraisal

Review Full Application

LEP Area Partnership

19 March 2014 LEP Event ESIF Presentation Page 4

Key Differences for Opt-In Governance and Delivery

There are 4 key differences in governance and delivery through Opt-In Organisations compared to the Business Process presented to LEPs on 19 March:

1. Opt-In Organisations go through a selection process first, before their status is approved by the Managing Authority;

2. Active engagement between Local Partners and Applicant to support development of local priorities and scale/scope of Opt-In provision prior to Implementation Plan stage;

3. To reach funding agreement, Opt-In Organisations follow a 1-stage application process, rather than a 2-stage (no outline test required)

4. LEP area partners have an MOU with each Opt-In Organisation, which sets out ways of working

Develop Full

Application

Applicant

Funding Agreement Managing Authority

European Structural & Investment Fund 2014-20 High Level Business Process – Inception to Funding

Agreement (ESF Opt-In)

Full Technical Appraisal

Review Full Application

LEP Area Partnership

Local Annual

Implementation Plan

(Including Local Priorities and

Scale/Scope of Opt-In provision )

Commission

Timetable for Opt-In Implementation Pre-OP Approval• By end January – LEPs to detail in-principle commitment to level of spend and

activities delivered through Opt-Ins in LEP ESIF Strategies• From early April – LEP area partners are invited to develop draft agreements with opt-

ins, subject to OP approval• By mid-April – MA to publish draft OP for consultation, including criteria for selection

of operations• From early June – MA invites opt-ins to complete Opt-In Status Pro-Formas• By mid June – MA to seeks Growth Programme Board (shadow PMC) approval of

opt-ins Selection Criteria• From mid June – Operational guidance available for local partners to help set up

Local Sub-committees of PMC in shadow form and further develop pipeline of delivery;

• By end June – opt-in organisations submit completed Opt-In Status Pro-Formas• By end June – MA formally submits draft OP to Commission, including proposals for

quantified targets• By end of July - MA conducts appraisal of completed Opt-In Status Pro-Formas

against the Opt-In Selection Criteria and decides the status of Opt-In Organisations;• From early August – MA works with ‘Conditionally Approved’ Opt-Ins to achieve full

Opt-In status;• By October – Sub-committees, MA and opt-ins finalise draft agreements, subject to

OP approval, including targets and outputs

Timetable for Opt-In Implementation Post-OP Approval

• By end October – (Provisionally) Final OP agreed with Commission, including targets to be disaggregated between LEP areas

• By end October and post OP approval - MA seeks full PMC approval of Opt-In selection criteria

• By mid November – MA writes to Opt-In Organisations with decision on their status

• By end November – Local Sub Committees agree implementation plan, including agreements with Opt-Ins

• By end December/January – Opt-In Organisation submits Full Application to MA, per LEP area (this is where the ItF process/pattern kicks in)

• By end February/March – MA undertakes Full Appraisal of application• By end February/March – MA asks Sub Committee to consider fit with local

growth strategy & ESIF and confirm agreement to proceed• By end March/April – Opt-In Organisation and MA sign Funding Agreements

Underlying Principles for Agreements between Opt-In Organisations and LEP / Local Area Partnerships

Each Opt-in Organisation is different but will operate on the same underlying principles.  Agreements between Opt-In Organisations and LEPs/Local Area Partners will set out mutual understanding of the roles and responsibilities and ways of working in areas such as:

• Provision Management Arrangements

• Contracting Arrangements

• Governance

• Match Funding

• LEP involvement in Processes

• Confidentiality

LEP Sounding Board views sought on:

• Indicative timetable

• Local governance arrangements for Opt-In Organisations

• How best to share this information with all LEPs