Progress and Verification Record (PAV) ERDF-Forms-4-003

Progress and Verification Record (PAV) – ERDF-Forms-4-003

The 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 Name
Grant Recipient Name

Purpose

The general principle of the A13 checks is to verify that the project is delivering to the terms and conditions set out in its Funding Agreement[1] and Offer Letter[2], and compliance with the Regulations as set out in the Council Regulation-s (EC) 1803/2006[3] and (EC) 1828/2006[4], 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):

Colour Coding Key:

To be pre filled by GDT Monitoring Team
To be completed by Grant Recipient
To be completed by GDT Monitoring Team

Section A – Background and Reference Information

Priority Axis
Project Address
Grant Recipient Address
(if different from Project Address)
GDT Contact
Prompt of project specific issues to raise at visit (if applicable)
Start Date / Financial Completion / Practical Completion

Visit Details

Visit 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 & Conditions

Visit 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 previous PAV actions outstanding at the time of PAV Visit / Database Ref (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.

Grant Recipient personnel present during visit

As 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 representativespresent during visit

Name / 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 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

1. Verification of Expenditure

1.1 Defrayal

1.1.1 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 Annex
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. 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 provided
Coverage / 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?
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
Any Recommendations, Actions or Irregularities arising from this section to be listed in Actions Annex

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.

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 achieved
B 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 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:
3.8Changes 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 Annex
List 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.

4. Compliance

4.1 State Aid

DCLG 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.

4.1.1State 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 Annex
List 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
Does 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?

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.
Please demonstrate and provide evidence that all these conditions have been met.
4.2.6Completeness 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 Annex
Detail specifically what has been seen or comment on why the item is not considered relevant.

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

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 Annex
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.
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?

5.Cross-cutting Themes

5.1How do you intend to address the Cross Cutting themes in your original application and Funding Agreement?For Equality ofOpportunities 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
Gender / Male
Female
Ethnicity / White
Mixed
Asian or Asian British
Black or Black British
Chinese 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
5.4 Environmental Sustainability / Original contracted target / Profiled 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 Annex
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.
Reports or studies
Case Studies
Policy documents
Are there examples of best practice to be reported?

6. Useful Economic Life of Assets