1. Governance and delivery through Opt-In Organisations

2. 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 2014Page 2

3. LEP Area Partnerships Draft Terms of Reference Role of the local sub-committee (LEP Area Partnership) o Implementation plan o Prioritise operations o Test fit with ESIF: strategic fit, value for money, other activities o Make recommendations on operations – Fund / de-commit o Agree oversight of delivery & outputs LEPs o Convene partners & organise Chair from amongst them o Contribute to development of pipeline o Ensures operations fit within wider context of the SEP MA o Deputy Chair & secretariat 19 March 2014 LEP Event ESIF PresentationPage 3

4. Outline Application Stage 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 2014LEP Event ESIF PresentationPage 4

5. 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

6. 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

7. 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

8. 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

9. 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

10. LEP Sounding Board views sought on: Indicative timetable Local governance arrangements for Opt-In Organisations How best to share this information with all LEPs