1. PROJECT CLOSEDOWN WORKSHOP Alex Findlay Programme Manager YH GDT alex.findlay@communities.gsi.gov.uk 0303 444 4555 alex.findlay@communities.gsi.gov.uk 23 March 2015

2. Aim To give a programme level context on closure To provide an overview of the processes, timescales and responsibilities for closing ERDF projects

3. Introduction Programme Level  Current performance  Closure timelines Project Level  Preparing for closure  Project closure process  Post closure monitoring & reporting Feel free to ask questions anytime

4. Programme Level Current performance Key facts as at Feb 2015; Programme Value: £487m Commitment: 100.3% Funding remaining to declare: £98m No. live projects : 126 Outputs achieved to-date: 15,405 jobs created (207% of target) 2,103 businesses created (106%) 12,318 SMEs assisted (116%)

5. Programme Level Annual expenditure targets met year on year since the inception of the Programme Programme well positioned for orderly closure:  Most live projects have a final claim date of June 2015 or earlier  22 due to end in Q3  8 due to end in Q4 (including 4 FEIs)  Requests for time extensions to maximise investments in support of jobs and growth, provided no detriment to programme closure Scope to maintain full commitment (therefore maximise investment delivery)  Current Identified de-commitment £12.2m  Sufficient demand from live projects to absorb freed up resources

6. Programme Level While much has been achieved, there is still a lot left to do In 2015: Over 600 claims due in for processing March 2015 - ECA 2014 audit report due Article 16 visit schedule – 20 projects in 2015 Article 13 (PAV) visit schedule – 61 projects in 2015 March 2015 - IAS systems audit (overheads) June 2015 - Final programme modifications (virement) June 2015 - Annual Implementation Report 2014 sign off

7. Programme Level In 2016 & 2017: (End December 2015 - final practical and financial completion date) End January 2016 – all final claims submitted for checking January 2016 – final A13 PAV sample selected February 2016 – payment of all final claims End February 2016 - aggregate claims from YH GDTs to Certifying Authority April 2016 – final interim declarations to be made to Commission May 2016 – final A16 sample drawn November 2016 – all A13s and A16 actions & assoc irregs concluded February 2017 – all closure documents to Audit Authority to check March 2017 – final closure documents to EC

8. Project Level At project closure stage, assurances are needed on Delivery in line with FAL special conditions* and ERDF eligibility and compliance Achievement of targets as per the FAL Post delivery monitoring requirements

9. Project Level Preparing for project closure Activities take place throughout a project’s life:  during project development  throughout delivery  at final claim stage

10. Project Level Planning for closure during project development Preparing a business case for investment requires a forward look  Exit Strategy / Forward Plan  Document Retention  Evaluation Plan  Setting financial and practical completion dates

11. Project Level Closure as part of routine project delivery reviewing financial and non financial performance, responding to audit findings complying with FAL conditions and special conditions commissioning final evaluation (if required) gathering and reporting remaining outputs & results maintaining procurement and capital assets registers maintaining state Aid records.

12. Project Level Closing your project – financial & practical completion / final claim Projects will be viewed as completed when: Financial & practical completion dates have passed All checks have been satisfactorily done Final / retention claim is paid Final progress report is authorised Final claims within 20 working days of the end of the period If a project’s practical completion date is later than financial completion, a final progress only claim must be submitted to capture the outcomes Plus signed copies of the evaluation report (if available)

13. Project Level Closing your project – closure visit? High risk projects – Full Closure PAV visit including closure check undertaken Medium risk projects – ie those with outstanding procurement verifications / ongoing delivery issues. Partial PAV visit to cover procurement and a closure check Low risk projects – visit not needed, closure checks undertaken by correspondence We will notify project of which option will apply

14. Project Level Closing your project – the Final Claim Closure Report Standard report to help ensure, as per earlier slide.. Delivery in line with FAL special conditions* and ERDF eligibility and compliance Achievement of targets FAL Post delivery monitoring requirements We will complete a closure report on every project

15. Project Level Closing your project – the Final Claim Closure Report The report requires a check on any outstanding actions to be completed, and for clearing those before sign off. It covers.. Contract & audit Funding agreement / variation conditions A13 (PAV), A16 and any other audit issues Procurement register up to date on MCIS has the minimum procurement sample been tested

16. Project Level Closing your project – the Final Claim Closure Report Assets register up to date on MCIS Sample assets viewed & verified Details of any legal charge on assets GR is clear on its obligations for disposals / change in use Is any overage (excess profit) factored into the final claim payment calculation Change of ownership Publicity Has evidence of compliance been seen during the project’s delivery

17. Project Level Closing your project – the Final Claim Closure Report Final payment Match funding – confirmation of final m/f amount received Final payment calculation – budget reconciliation to enable possible absorption Irregularities – processed and recovered Outputs & results justification for any underperfromance Post financial closure monitoring & capacity to do so

18. Project Level Closing your project – the Final Claim Closure Report Post closure monitoring A55 revenue generation State aid Evaluation / final exit plan Document retention  Doc retention policy  Min Dec 2015 & consequences  Location & access  Contingency should organisation change – cease to exist  Any technological obsolescence issues We will send the project a formal completion letter when all checks are done