Visit findings Progress An… · Web viewProgress and Verification Record (PAV) –...

Progress and Verification Record (PAV) – ERDF-Forms-4-003The Grant Recipient should complete all the sections highlighted yellow, and also the Project’s Procurement Annex (ERDF-Forms-4-005 and ERDF-4-006) BEFORE the monitoring visit takes place. A supporting guidance document (ERDF-GN-4-001) is provided to help you complete each section. The Grant Recipient should then return the completed form to their GDT by the date previously agreed.

This document was created in Microsoft Word 97-2003. To prevent corruption of the document Grant Recipients using a newer version of Microsoft Word should save the form in the 97-2003 format. Please note; the completion of an A13 PAV visit record does not guarantee that further issues will not be found by other external auditors.

If you have any questions relating to the form you should refer to your GDT contact. Project Reference Project NameGrant Recipient Name

PurposeThe general principle of the A13 checks is to verify that the project is delivering to the terms and conditions set out in its Funding Agreement1 and Offer Letter2, and compliance with the Regulations as set out in the Council Regulation-s (EC) 1803/20063 and (EC) 1828/20064, supported through the interpretations outlined in the guidance of the User Manual.

Purpose of this Visit (√)Full PAV

Follow UP PAV

Reason for Visit: Expenditure Outputs Compliance Procurement

Other (Please specify):

1 "Funding Agreement" means the agreement dated the date upon which the Acknowledgement is signed and is constituted by the Offer Letter (including the Schedules and any amending or supplementary documents attached to the Offer Letter), these Standard Conditions (including the Annexures) and the completed Acknowledgement of the Offer Letter. 2 "Offer Letter" means the letter and its Schedules, to which these Standard Conditions are annexed, and by which DCLG offers Grant for the support of the Project on specified terms and conditions, and includes any variations agreed in writing by DCLG and the Grant Recipient.3 Council Regulation (EC) No 1083/2006 of 11 July 2006, which sets out general provisions about the Structural Funds, as amended by Council Regulation (EC) No 284/2009, and Regulation (EU) No 539/2010 of the European Parliament and of the Council.4 Commission Regulation (EC) No 1828/2006 of 8 December 2006, which sets out rules for the implementation of the Council Regulations, as amended from time to time.Progress And Verification Visit (PAV) RecordERDF-Form-4-003. Version 3Date Last Published 1st July 2013

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Colour Coding Key:To be pre filled by GDT Monitoring TeamTo be completed by Grant RecipientTo be completed by GDT Monitoring Team

Section A – Background and Reference InformationPriority Axis

Project AddressGrant Recipient Address (if different from Project Address)GDT ContactPrompt of project specific issues to raise at visit (if applicable)

Start Date Financial Completion Practical Completion

Visit DetailsVisit Reference Date of Visit

MCIS claim numbers and dates of expenditure verified

a) Eligible expenditure claimed at time of visit (£)

b) Expenditure tested at visit (£)

c) Expenditure verified at visit (£)

% of total expenditure claimed tested at visit (b divided by a)

Amount of any potential irregularities detected at the visit (£)

Project Risk Assessment Pre Visit

Project Risk Assessment Post Visit

Previous Visit Information & ConditionsVisit Type Date of previous visit Are all actions completed?

Project Engagement visit

PAV visit

A16 visit/s

Visit Type & date Ref No List the PEV recommendations/A16 or Database Ref

Progress And Verification Visit (PAV) RecordERDF-Form-4-003. Version 3Date Last Published 1st July 2013

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previous PAV actions outstanding at the time of PAV Visit

(where applicable)

Are there any outstanding contract conditions included within Schedule 1 to the Funding Agreement that have not been met since the last visit?

Condition Deadline date

Comments

"Project Specific Conditions" mean those Conditions which are specific to the Project and are contained in Schedule 1 to the Offer Letter."Conditions" means together all of the conditions of Grant contained in all or any of any of the documents making up the Funding Agreement and includes any variations agreed in writing by DCLG and the Grant Recipient.


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Grant Recipient personnel present during visitAs the lead Grant Recipient organisation you will need to advise and assure us that all relevant personnel and records will be available on the day of the visit. These individuals will need to be representing roles that cover:

Finance Project Management Payroll/salaries (access to) External delivery partners (if relevant)

Name Job Title, Role & Contact Number(s)

“Grant Recipient Personnel” means all employees, partners, agents, consultants and contractors of the Grant Recipient and/or of any sub-contractor

ERDF A13 Monitoring Team representatives present during visitName Job Title

Project Description – please provide a brief summary description of the project activity, in particular outline, if there are fundamental changes to nature of the project since the last visit.

Project Process Changes: since the PEV or last PAV visit. Please list here any changes in the Progress And Verification Visit (PAV) RecordERDF-Form-4-003. Version 3Date Last Published 1st July 2013

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Project Activity and Management; Financial Management; Document Retention Arrangements; Final Audit Arrangements: Evaluation Arrangements; Plans for Exit Strategy

Comments on section A

Any Recommendations, Actions or Irregularities arising from this section to be listed in Actions Annex


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1. Verification of Expenditure

1.1 Defrayal1.1.1 Regulatory Requirements: How has all expenditure been defrayed according to ERDF requirements?

1.1.2 Pre or Post Project Spend: has there been any expenditure which occurred before the start date of the project or after the end date of the project (if the project has been completed), which has been included in a claim to the GDT?

1.1.3 Third Parties/Financial Beneficiaries: if applicable, has the project organisation ensured that third parties/financial beneficiaries in the delivery of the project are aware and comply with the requirements relating to defrayal?

1.1.4 Contra Payment. Is there a system in place to ensure that payments of grant to the final beneficiaries are paid without deductions of any kind? Can you confirm that any amount owed to the organisation by a final grant recipient is not deducted from grants paid to them under this project?

Comments on Defrayal

Any Recommendations, Actions or Irregularities arising from this section to be listed in Actions AnnexList below evidence seen indicate whether seen or note why it is not applicable. Detail specifically what has been seen or comment on why the item is not considered relevant. This is tested thoroughly for specific sample tests in the expenditure checks appendix BACS listings and Bank statement

Verification of claims process and expenditure.

For GDT use only: Complete the Expenditure Table 1b in the PAV Verifications and Actions Annex ( ERDF-Forms-4-005) to detail actual amounts checked and evidence providedCoverage Yes No

Have all cost headings been covered?

Has the claim been compiled in line with the procedure confirmed at the PEV or the previous PAV, including the checks made to ensure that expenditure had been defrayed, allocated to the correct budget heading and any management checks made before submitting claims?


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Is any apportionment applied in line with the methodology agreed?

Has partner eligible expenditure been included in the claims selected for verification? If so can defrayal be evidenced?

Is there evidence to support the match funding for the selected claim(s)?

Have staff costs been calculated and claimed correctly in the selected claim(s)? Is there evidence to support this?

Staff training: Has any staff training been included in the cost claimed?

Does the evidence confirm that the statement at 1.1.4. has been implemented and no deduction made off the payment to the Grant Recipient?

Overall comments on expenditure checks



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2. Capital Costs (If the project does not include any capital costs go to section 3)

Please list your Eligible Capital Expenditure as detailed in your most recent Funding Agreement.

Expenditure heading Most recent Funding

Agreement allocated budget

Profiled total spend

to dateA

Spend to date

B

% of profiled spend

achievedB as % A

£ £ £ %

£ £ £ %

£ £ £ %

£ £ £ %

£ £ £ %

£ £ £ %

£ £ £ %

£ £ £ %

£ £ £ %

£ £ £ %

£ £ £ %

£ £ £ %

£ £ £ %

£ £ £ %

Total £ £ £ %2.1 Explain how each of these expenditure headings has been calculated, recorded and claimed e.g.-Independent land valuation, receipts for land and building on accounts, site investigation costs, site preparation costs? Is there an Environmental Impact Report?

Procurement processes will need to be fully evidenced in section 4.2.

You will need a full audit trail available on the day of the visit to evidence any of these items:

Comments on Capital Costs

Any Recommendations, Actions or Irregularities arising from this section to be listed in Actions AnnexList below evidence seen or note why it is not applicable. Detail specifically what has been seen or comment on why the item is not considered relevant.


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Independent land valuation

Independent building valuation

Environmental Impact Report

Sites assessment studies

Site investigation reports

Tender report from project QS

Depreciation methodology/calculation

Is there any restriction on the title to the property?

Has there been or is there any intention to dispose of this asset within the capital lifetime as per the grant funding agreement?

Has this visit included a visit to the site of the property created or refurbished by the project?


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3. Revenue Costs (If the project does not include any revenue costs go to section 4)

Please list your Eligible Revenue Expenditure as detailed in your most recent Funding Agreement.

Expenditure heading Most recent Funding

Agreement allocated budget

Profiled total spend to date

A

Spend to date

B

% of profiled spend

achievedB as % A

£ £ £ %

£ £ £ %

£ £ £ %

£ £ £ %

£ £ £ %

£ £ £ %

£ £ £ %

£ £ £ %

£ £ £ %

£ £ £ %

£ £ £ %

£ £ £ %

£ £ £ %

£ £ £ %

Total £ £ £ %

3.1 Salary Costs: what costs are included in salaries? Please ensure you specify any pension contributions, any non taxable benefits etc. Where the staff do not work 100% of their time on the project, please indicate the apportionment methodology used. Is the salary claimed capped at the actual salary paid for the relevant month?

3.2 Staff Numbers: how many full time and part time staff are working on the project? Are they the same as indicated in the project staff structure?

3.3 Timesheets: are part-time staff recording their time worked on the project in timesheets and are these timesheets signed by them and their manager?

3.4 Direct Overhead Costs: what costs are included in overheads and can the audit trail for the direct costs be demonstrated?

3.5 Indirect Overhead Costs: is the indirect overhead methodology the same as that approved during Progress And Verification Visit (PAV) RecordERDF-Form-4-003. Version 3Date Last Published 1st July 2013

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appraisal? Can the audit trail be demonstrated?

3.6 Flat Rate: if a flat rate is being used to claim indirect overhead costs, has the required audit trail been maintained?

3.7 For any additional costs quoted in table 3 that have not been covered in answers 3.1 – 3.6

Explain how each of these expenditure headings has been calculated, recorded and claimed. Procurement processes will need to be fully evidenced in section 4.2.

You will need a full audit trail available on the day of the visit to evidence any of these items:

3.8 Changes to Project: have there been any significant changes to the project that affect the apportionment calculations and assumptions outlined in the application that might result in a modification to the original agreed rate?

Comments on Revenue Costs

Any Recommendations, Actions or Irregularities arising from this section to be listed in Actions AnnexList below evidence seen or note why it is not applicable. Detail specifically what has been seen or comment on why the item is not considered relevant.Indirect cost calculation and Audit Certificate

Signed timesheets and methodology for calculation of rate charged

Payroll records/payroll

ERDF notification to staff that have been drafted in for specific project related tasks. Supporting documentation sent to those individuals should be available and should state the nature and duration of their involvement and the link to an ERDF funded project. i.e. job description or supporting letter defining the terms of their involvement duration/role etc.


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4. Compliance

4.1 State AidDCLG is responsible for ensuring that the projects that are selected for ERDF support are compatible with EU law on State aid. As part of the appraisal process, DCLG will assess if any aid is to be approved under a block exemption, an approved scheme, the de minimis regulation or any other Commission instrument.

4.1.1 State Aid Scheme: where applicable confirm you are still operating under the state aid solution stated in the funding agreement and advise which solution (s) you are applying .

4.1.2 Eligibility, Monitoring and Recording Information: Please indicate how different schemes, aid rates and eligibility criteria have been respected and monitored.

Comments on State Aid compliance

Any Recommendations, Actions or Irregularities arising from this section to be listed in Actions AnnexList below evidence seen or note why it is not applicable. Detail specifically what has been seen or comment on why the item is not considered relevantDoes the Grant Recipient have a copy of the state aid approval or scheme reference?

For “De Minimis” aid are (i) beneficiaries given written notification of the value of aid given by this project and (ii) are checks carried out of all public financial assistance received by the Grant Recipient over the past 3 years prior to the intervention?

Where eligibility for grant or aid intensity depends on beneficiary size are EU SME declaration forms completed?

Where eligibility or intensity of aid depends on assisted area status are checks on location taking place?

Where aid intensity is reduced by previous participation in State aided risk capital scheme, has the aid intensity been reduced?

Are records of the assessment of eligibility of activities, beneficiaries, costs and intensity levels retained?

Are records of the monitoring of beneficiary state aid compliance retained?


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4.2. Procurement Grant recipients must comply with European Union Procurement Regulations and the general provisions of the Treaty. Breach of tendering requirements is the most common reason for claw back of grant and the procedures must be carefully followed and monitored throughout the Project.

Grant Recipients must complete and return the Project Procurement Annex for all goods and services purchased through this project.4.2.1 Funding Agreement Requirements: please describe how the project is complying with the Public Procurement Requirements.

4.2.2 Single Tender Actions: Please provide a list of any single tender awards made by the project.

4.2.3 Preferred Supplier Lists: Please provide a list of any awards made by the project using preferred supplier lists.

4.2.4 Formal Tenders: are all formal tenders compliant with your Funding Agreement and the Regulations?

Please demonstrate and provide evidence that all these conditions have been met.

4.2.5 Extended Contracts: have any contracts been extended? If so, demonstrate that this in line with Procurement Regulations.


4.2.6 Completeness of the MCIS Procurement Tab: have all procurements above £500 in value from the start of the project been recorded on the MCIS Procurement Tab?

Please explain the process used to identify and record procurements undertaken prior to 1st April 2012.

Comments on Procurement compliance

Any Recommendations, Actions or Irregularities arising from this section to be listed in Actions AnnexDetail specifically what has been seen or comment on why the item is not considered relevant.


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4.3 Publicity and Communications

It is very important that the use of Structural Funds across Europe is publicised and there are certain specific European Union requirements in relation to publicity and branding.

4.3.1 Regulatory Requirements: Has the project fulfilled its commitment to publicise the EU’s contribution to this project as required by the Funding Agreement.


4.3.2 Third Parties/Financial Beneficiaries: if applicable, has the organisation ensured that third parties/financial beneficiaries involved in the delivery of the project are aware and comply with the requirements relating to publicity? Can this be demonstrated by communications to the third parties/financial beneficiaries?Please demonstrate and provide evidence that all these conditions have been met.

Comments on Publicity compliance

Any Recommendations, Actions or Irregularities arising from this section to be listed in Actions AnnexList below evidence seen indicate whether seen or note why it is not applicable. Detail specifically what has been seen or comment on why the item is not considered relevant.Project publicity policy?

Plaques on buildings?

Logos on stationery, website?

Screen dumps of web site evidence?

Logos on job descriptions and tender specifications?

Logos on advertising and promotion material such as brochures, flyers, all communications with final beneficiaries?

Billboards (capital projects where the total public contribution > €500k) does the ERDF logo cover 25% of the entire Billboard?


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4.4 Revenue-generating Projects (Complete where applicable)Additional standard clauses for use with Revenue Generating Projects caught by Article 55 Requirements will be included in Schedule 1 of the Funding Agreement.

4.4.1 Revenue Generation: is the project generating any revenue? If so, is the project being delivered in line with the Project Specific Conditions standard clauses in the Funding Agreement?

4.4.2 Unexpected Revenue: Is there any source of revenue being received by the project which was not taken into account in the ex-ante Revenue Generating calculation?

4.4.3 Recording Revenue: where required how have revenue and / or income been recorded and reported?

4.4.4. Audit Trail: can the audit trail for the revenue and / or income be demonstrated?

4.4.5. Annual Report. For Article 55.2 and 55.3 projects, has the annual report been provided to the GDT?

4.4.6 For Article 55.2 and Article 55.3: projects how will the net revenue on projects be tracked after the end of the project? Explain how this will be tracked and reported?

Comments on Article 55 Revenue Generation compliance

Any Recommendations, Actions or Irregularities arising from this section to be listed in Actions AnnexList below evidence seen indicate whether seen or note why it is not applicable. Detail specifically what has been seen or comment on why the item is not considered relevant.Approval calculation

Monitoring system for the net revenue

Annual revenue generation monitoring form submitted to GDT?

Are their systems for recording net revenue after the end of the project adequate?


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5. Cross-cutting Themes

5.1 How do you intend to address the Cross Cutting themes in your original application and Funding Agreement? For Equality of Opportunities what activity has the project undertaken to date Please also complete 5.2 below

5.2 Equality Original contracted

target

Profiled target to

date

Achieved Evidence seen and comments

Disability Disabled

GenderMale

Female

Ethnicity

White

MixedAsian or Asian BritishBlack or Black BritishChinese or other Ethnic Group

Age

16-24

25-34

35-49

50-64

65+

5.3 How do you intend to address the Cross Cutting themes in your original application and Funding Agreement? For environmental sustainability what activity has the project undertaken to date? Please also complete 5.4 below


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5.4 Environmental Sustainability

Original contracted

targetProfiled target

to date Achieved Evidence seen Comments

Comments on Cross cutting themes

Any Recommendations, Actions or Irregularities arising from this section to be listed in Actions AnnexList below evidence seen indicate whether seen or note why it is not applicable. Detail specifically what

has been seen or comment on why the item is not considered relevant.Reports or studies

Case Studies

Policy documents

Are there examples of best practice to be reported?

6. Useful Economic Life of Assets

6.1 Asset Register: Is the Asset Register uploaded onto MCIS complete and up to date?

6.2 Change of Use: has there been any change of use of any asset(s)?

6.3 Disposal: has there been any disposal of any asset(s)?

6.4 Charging: has there been any charging of asset(s)?

Comments on Useful Economic Life of Assets

Any Recommendations, Actions or Irregularities arising from this section to be listed in Actions AnnexProgress And Verification Visit (PAV) RecordERDF-Form-4-003. Version 3Date Last Published 1st July 2013

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List below evidence seen indicate whether seen or note why it is not applicable. Detail specifically what has been seen or comment on why the item is not considered relevant.

Were at least 3 Assets from the Register seen on the visit ? Did the site of each asset match that stated on the Asset Register?

7. Delivery and Verification of Outputs

Please complete the yellow highlighted sections in the ERDF-Forms-4-005 PAV Verifications and Actions Annex, sheet 1c OUTPUTS as set out in your Funding Agreement

Please ensure there is a complete audit trail available of the output and results evidence at the visit site, on the day of the visit.

7.1 Recording and Reporting: describe how the outputs are being gathered and calculated before being claimed, and what baseline data is available in order that the effects of the intervention can be measured?

7.2 Eligibility Checks: describe what checks are carried out to ensure the beneficiary businesses or individuals are eligible & belong to the target group(s) e.g., based in the Programme Area confirmed by postcode.

7.3 Recording Interventions: how have the interventions been recorded?

7.4 Progress: Are the outputs being achieved in line with the current funding agreement forecast profile? If not why not?

List below evidence seen or note if it is not applicable. Detail specifically what has been seen or comment on why the item is not considered relevant.Baseline details, e.g. level of sales or no. of jobs at a SME at the start of the intervention

Eligibility proformas

Beneficiary database/spreadsheet and individual beneficiary files

MI / Activity reports

Beneficiary feedback/evaluation reports


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Is the evidence for the achievement of the results adequate and does it match the national guidelines?

Complete the Physical Checks Table on ERDF-Forms-4-005 PAV Verifications and Actions Annex 1c for outputs checked and evidence provided

Claim periods tested

Coverage Yes No

Have 10% of actuals for each output and result been tested?

Is there adequate evidence to verify outputs tested?

Is the project progressing in line with the latest forecast identified in the latest version of the Funding Agreement?

Overall comments on outputs checks


8. Action points.For Action Points arising refer to ERDF-Forms-4-005 PAV Verifications & Actions Annex.


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Any Additional ERDF Monitoring Officer Comments / Recommendations etc

ERDF Monitoring Officer

Signature

Name

Position

Date

ERDF Quality Assurance

SignatureAttended visit Yes/No

Name

Position Management check of A13 record only

Yes/NoDate

Post VisitGrant Recipient Comments on visit report –(if any to raise)


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Grant Recipient

Signature

Name

Position

Date


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