## 

# 2014 To 2020 European Structural And Investment Funds Growth Programme Call For Proposals European Social Fund Priority Axis 1: Inclusive Labour Markets Youth Employment Initiative (Yei)

 
Managing Authority 
Department for Work and Pensions (DWP) 
ESI Fund 
European Social Fund 
Priority Axis:   
Priority Axis 1 : Inclusive Labour Markets 
Investment Priority: 
1.3 Sustainable Integration of Young People into the Labour Market Tees Valley - Youth Employment Initiative (OC34S17P0762)  
Call Reference: 
 
Tees Valley 
LEP Area: 
21st April 2017 
Call Opens: 
26th May 2017 
Call Closes: 
 
Document Submission: 
Completed  Applications must be submitted to : 2014-
2020.ESFAPPLICATIONS@DWP.GSI.GOV.UK 

 

## Contents

1. Call Context 
1.1 National Context 1.2 Local Development Need 1.3 Scope of Activity 
2. Call Requirements  
3. Required Deliverables 4. General Information  
 
4.1 Compliance and Eligibility  
 
4.2 Intervention Rate & Match Funding 4.3 Applicants  
 
4.4 Cross Cutting Themes  
 
4.5 State Aid  
 
4.6 Funding Agreement 
 
4.7 Procurement 
5. Application Process & Prioritisation Methodology 6. Support 7. Key Documents 8. Document Checklist 9. Document Submission 10. Timescales  
11. Appendix A - Common output indicators  

## 1. Call Context

The 2014 to 2020 European Structural and Investment Funds (ESIF) bring the European Regional Development Fund (ERDF), European Social Fund (ESF) and part of the European Agricultural Fund for Rural Development (EAFRD) together into a single European Union (EU) Structural Investment Funds (ESIF) Growth Programme for England supporting the key growth priorities of innovation, research and development, support for Small and Medium Enterprises (SME), low carbon, skills, employment, and social inclusion. European Structural and Investment Funds are managed by the Department for Communities and Local Government (ERDF), Department for Work and Pensions 
(ESF) and the Department for Environment Food and Rural Affairs (EAFRD). In London, the Greater London Authority acts as an Intermediate Body for the European Regional Development Fund and European Social Fund programmes. 

Unless stated otherwise, the term "Managing Authority" will apply to all these organisations. These Departments are the Managing Authorities for each Fund. The Managing Authorities work closely with local partners who provide: 

 
Practical advice and information to the Managing Authorities to assist in the preparation of local plans that contribute towards Operational Programme priorities and targets;  
 
Local intelligence to the Managing Authorities in the development of project calls (decided by the Managing Authorities) that reflect Operational Programme and local development needs as well as match funding opportunities;  
 
Advice on local economic growth conditions and opportunities within the context of Operational Programmes and the local ESIF Strategy to aid the Managing Authority's assessments at full application stage. 
This call is issued by the Department for Work and Pensions (DWP) to commission ESF Funded projects that will support the Priority Axis 1 of the Operational Programme: Inclusive Labour Markets and Investment Priority: 1.3 Sustainable integration into the labour market of young people (YEI) as set out in the Operational Programme. All applications will need to be eligible under the European Social Fund Operational Programme for England 2014 to 2020.  The ESF Operational Programme is available for applicants to read. This call for proposal sets out the requirements for any applicants to consider before applying. Applications against this call will be assessed as part of two stage appraisal process and successful applicants will enter into a funding agreement with the DWP. Further information is given in sections 4 to 10. All ESF applicants will need to be aware of the requirement to collect and report data on all participants as per Annex 1 (see Appendix A).  This will be as well as the requirement of reporting on output and result indictors referred to in section 3 of the call for proposal.  

## 1.1 National Context

This priority axis aims to increase participation in the labour market and thereby improve social inclusion and mobility.  The operational programme identifies the need to address high levels of youth unemployment in specific areas of England this will be delivered through the following Investment priority:    
Investment priority 1.3 Sustainable integration into the labour market of young people (YEI), in particular those not in employment, education or training, including young people at risk of social exclusion and young people from marginalised communities, including through the implementation of the Youth Guarantee. ESF will not fund activity that duplicates or cuts across national policy on grants and loans for tuition for skills activities. Exemptions to this principle will be considered only where a local specific need and/or market failure has been demonstrated and where the activity falls within the scope of the Operational Programme. Full details of what can and cannot be supported under this Investment Priority are set out in the Operational Programme. Details of the specific objectives have been reproduced below. 

Specific Objective  
Results that the Member States seek to 
achieve with Union support  

To support the rise in the participation age by providing additional traineeship and apprenticeship opportunities for 15- 29 year old NEETs in YEI areas, with a particular focus on 15-19 year old NEETs. 

The additional support from this investment priority will help more young people aged 15- 29 enter traineeships and apprenticeships. It will be focussed on young people in YEI areas, with a particular focus on 15-19 year old NEETs. The additional support from this investment will support investment in 
traineeships and apprenticeships, including improvements to recruitment and assessment and engagement with employers. The main result will be that more young participants aged 15 to 29, male and female, who were NEET, are in traineeships or apprenticeships as a result of ESF interventions and this will support movements into work. 

 To engage marginalised 15-29 year old NEETs in YEI areas and support them to re-engage with education or training, with a particular focus on 15-19 year olds. The additional support from this investment priority will help to find and engage young people in YEI areas, particularly those aged 15-19, who are disconnected from mainstream activity. Participants could, for example, be members of gangs, care leavers, young lone parents, ex-offenders or young people with learning difficulties. They are likely to require more intensive and tailored interventions. The main result that will be achieved is that more participants will be engaged with education or training on leaving, and this will be measured by the result target. 

To address the basic skills needs of 15-29 year old NEETS so they can compete effectively in the labour market; 
The additional support from this investment priority will help 15-29 year old NEETs in YEI areas to acquire the basic skills necessary to enable them to progress into an apprenticeship, traineeship or other employment. The main result that will be achieved is that more participants will have gained basic skills. There is an output target for participants without basic skills and a result target for participants gaining basic skills. 

To provide additional work experience and pre-employment training opportunities to unemployed 15-29 year old NEETS in YEI areas, with a particular focus on those aged over 18 
The additional support from this investment priority will help unemployed 15-29 year olds and particularly those aged 18-29 in YEI areas to transition into training or sustainable employment (or self-employment). The main result that will be achieved is that more participants will enter traineeships, apprenticeships or sustainable employment (including self-employment) on leaving. 

To support 15-29 year old lone parents who are NEET in YEI 
areas to overcome the barriers they face in participating in the labour market (including childcare). 

The additional support from this investment priority will help 15-29 year old lone parents who are NEET in YEI areas to move closer to and into sustainable employment (including self-employment). Support will include assistance with childcare when this has not been covered by public provision, such as Universal Credit. It will also help participants to overcome other barriers, such as low basic skills or lack of confidence. The main result that will be achieved is that more participants will move into sustainable employment (including self-employment). There is an output target for the number of lone parents. 

## 1.2 Local Development Need

Projects must deliver activity which directly contributes to the objectives of Priority Axis 1, Investment Priority 1.3 of the Operational Programme, and which meets the local development need expressed in the text and table below. 

 
Call outline Whilst the proportion of young people who are NEET (Not in Employment, Education or Training) in Tees Valley has fallen recently, reflecting concerted efforts by local partnerships, it remains much higher than the national average. For example,  

 The November 2015 to January 2016 average showed the 16-18 NEET rate 
in Tees Valley as 6.4% compared to 4.2% nationally.  
 Redcar and Cleveland has the third highest NEET rate in the country at 7.6% 
and Stockton the seventh highest at 6.6%. 
 In February 2017, there were 3,870 18-24 year olds claiming either Job 
Seekers Allowance or Universal Credit (and available for work) in Tees Valley; 6.4% compared to 2.8% in Great Britain.  
 Pre-recession there were 45,200 young people (16-24) in 
employment/training. This dropped to 36,300 at the last count in September 2016 so more progress is still needed. 
Whilst numbers are showing an improvement, we still have persistently high levels of young unemployment and NEETs. Much of the NEET problem exists with young people who successfully move on from school but then drop out of Further Education. This could be for a variety of reasons, e.g. 

 poor information and career advice now or at an earlier stage;  wrong course choice which then results in it not meeting expectations so 
individuals lose interest/perform less well; 
 insufficient places on preferred course so doing an alternative which is not 
relevant; 
 late start date means difficulty maintaining progress;  difficulty handling transition from school environment;  lack of family support /role models /encouragement to continue;  lack of funding to travel to learning;  little support at home to steer them in a positive direction;  difficulty navigating the education system, optional available;  limited or negative peer support. 
 
 
Despite a national drive towards Apprenticeships the number of young people living in the Tees Valley aged under 25 starting an Apprenticeship has only risen by 1% over the last three years (from 2012/13 to 2015/16) compared to a  2% rise nationally.   In their report 'The incidence of apprenticeships in England by industry sector, 2010/11 to 2014/15' released by the Skills Funding Agency in March 2017 
they state that "in 2014/15, the highest incidence of apprenticeship starts were in the North West (16% of total) and the least in the North East (7% of total)".   
 
In the Tees Valley 10.3% of people aged 16-64 have no qualifications (2015 Annual Population Survey).  This is compared to 8.6% nationally. The Tees Valley also has a low amount of people aged 16-64 with higher level skills 30.4% have a Level 4+ NVQ qualification compared to 37.1% nationally. 

 

## Local Priorities:

The ESF Managing Authority is seeking projects who can deliver targeted, effective activities for participants aged 15-29 years old who are Not in Employment, Education or Training (NEET) and who live in the Tees Valley LEP Area which covers Darlington, Hartlepool, Middlesbrough, Redcar & Cleveland and Stockton-on- Tees. The Youth Employment Initiative (YEI) will end in July 2018.  Projects should therefore demonstrate in their applications how they can deliver meaningful, result focused activities within a short delivery window, which could be as short as 6 - 9 months in total.  Projects should also be able to demonstrate their ability to stand up their provision quickly, to maximise the delivery window. There are existing YEI projects in the Tees Valley LEP Area.  Applications under this call must deliver activities which are in addition to this existing YEI activity in the area. In their application, projects should also be able to demonstrate how they will add value and minimise duplication with those existing YEI projects.  
Preferred core project activities include:- 

 Access to independent and impartial Careers Education, Information Advice 
and Guidance, **before** direction and solutions are proposed, to ensure young 
people make informed choices which are relevant to current and future labour 
market opportunities.  
 The use of Tees Valley and local economic information to direct activities 
towards supporting key sectors and those with realistic sustainable employment opportunities. 
 Participation in work related experiences and employer based activities to 
increase opportunities for employment. 
 Proactive employer engagement activities on behalf of YEI participants, to 
offer a structured and accessible route to employment for these young people. 
Additional project activities could also include (as ancillary support to those above):- 

 Improved access range to a greater range and better quality of training and 
local employment opportunities. 
 Improved training or further education to enable young people to take up 
employment, including vocational qualifications for specific jobs. 
 Improved local pathways to move young people into education, training and 
employment.  
 Opportunities for creativity, innovation and development of entrepreneurial 
skills.  
 Access to new learning and skills provision which can make a real difference 
to their employment prospects and is not available via alternative funding 
routes 
 Improved literacy, numeracy, ICT and employability to enable young people to 
have the basic skills needed in all jobs or in preparation for Apprenticeships. 
 Support to tackle gender stereotyping in specific sectors. 
 Virtual learning services as an alternative to traditional classroom based 
provision. 
 Referrals to other appropriate services to offer expert and on-going support to 
best assist the individual with their outcomes. 

## Outputs & Results

Applicants will be required to demonstrate how they will achieve the deliverables listed in this call within their proposal along with any methodology that will be used to record achievement.  
Details of the local ESIF Strategy can be found at: https://teesvalley-ca.gov.uk/openfunding-opportunities/2124-2/ 
 
1.3 Scope of activity This call invites Full Applications which support the delivery of Priority Axis 1, Investment Priority 1.3 Sustainable Integration of Young People (YEI) into the Labour Market of the European Social Fund Operational Programme and responds to the local development need set out in the Tees Valley Local Enterprise Partnership Area European Structural and Investment Funds Strategy. This call aims to address the identified shortfalls listed in section 1.2 Local Development Need above. 

## 2. Call Requirements

All applications are competitive. 

Indicative Fund Allocation: 
 
Indicatively, through this call the Managing Authority 
expects to allocate approximately **£1,600,000 ESF** and approximately £1,600,000 YEI. 
 
Applicants will need to have eligible match funding for the ESF element (excluding YEI) for the balance of costs, which must be from a source other than the European 
Union. The Managing Authority reserves the right to increase or decrease the indicative allocation, or support more or fewer projects subject to the volume and quality of proposals received. 
Minimum application level 
 
European Social Fund investment is intended to make a significant impact on local growth. Applications are expected to demonstrate appropriate scale and impact. The Managing Authority does not intend to allocate less 
than £100,000 of European Social Funding and £100,000 YEI to any single project. All YEI project activity must end by 31/7/18 
Duration of project approvals 
Geographical Scope  
 
All interventions should be focused on activity and beneficiaries within the Tees Valley Local Enterprise Partnership area. YEI, ESF and match funding must be spent on 
participants eligible for YEI residing in areas eligible for YEI This is a call for ESF activity.  
Specific call requirements Call Deadlines 
For this specific call, applications will be assessed following closure of the call. Applications received after the 
published call close date will not be considered. 
Application selection 
All applications will be scored in line with the ESF scoring criteria, but the MA reserve the right to invite projects to full application stage where they complement other activity or provide niche activity to target groups within the OP. 
Applicant proposals 
These can only contain activities which are eligible for ESF. 
Eligible match funding Applicants will need to have eligible match funding for the 
ESF element (excluding YEI) for the balance of costs, which must be from a source other than the European Union. 
The intervention rate in the Tees Valley LEP Area is 60% ESF as it is a Transition area, so 40% match funding against the ESF funded elements must be provided by the applicant. This equates to approximately 25% of the overall total project costs. 
 
Separately the YEI funding element should applied at a 1:1 ratio with the ESF funds, not including the match-funding. For example - an application for a YEI project in a Transition area with a total project cost of £320,000 would need to be made up as follows:- £200,000 total ESF funds (made up of £120,000 ESF funding and £80,000 match-funding provided by the project applicant) plus £120,000 YEI funds. 
Match funding may be available via the Tees Valley Combined Authority and if so, would be subject to a separate approval process and funding agreement. Applicants should make contact with the Combined 
Authority **before** submitting their YEI application to this 
programme, to start the process required to secure a letter of support. The Combined Authority will only consider financially supporting applications for match funding, where proposals can clearly demonstrate how they will add value to and minimise duplication with, the existing YEI projects.   
 
For all applications proof of the availability and eligibility of match funding will need to be supplied as part of the full application and appraisal process. Operations must be completed no later than 31 August 2018 
Operational completion 
Procurement  
All procurement must be undertaken in line with EU regulations. 
State Aid law 
Applicants must demonstrate compliance with State Aid law. 
Audit/ Compliance 
All expenditure and activities will be subject to rigorous audit and non-compliance may lead to financial penalty. 
Calls listing multiple activity 
The applicant is required to list each activity they plan to deliver, supported by a clear breakdown of costs. Expected outputs and results per activity should be provided. 
 

ESF cannot be used to duplicate existing activities or activities that do not address market failure. ESF can only be used to achieve additional activity or bring forward activity more quickly. Applicants must be able to demonstrate that proposals are additional to activity that would have occurred anyway or enables activity to be brought forward and delivered more quickly than otherwise would be the case in response to opportunity or demand.  

## 3.  Deliverables Required Under This Call:

Applications will be expected to achieve the minimum indicative level of Programme Deliverables by contributing to the following Investment Priority. The definitions of which can be accessed at the ESF Operational Programme. 

Investment Priority 
1.3 Sustainable Integration Of Young People (YEI) Into The Labour Market 
Specific Objectives 
Sustainable integration into the labour market of young people (YEI), in particular those not in employment, education or training, including young people at risk of social exclusion and young people from marginalised communities, including through the implementation of the Youth Guarantee. 
 
Indicative 
Actions 
ESF will not support activities that duplicate or replace existing support within national programmes, but may be used to support 
additional activities or target groups, including provision codesigned with local partners. Examples of actions for all young people who are NEET include: 
 Help to re-engage marginalised young people NEET, 
including through innovative approaches, customised training and support and volunteering activities. 

 Activities may be focused on specific target groups such as: 
young lone parents: looked after children and care leavers: carers: ex-offenders: those involved in gangs: and young people with learning difficulties and disabilities. 
 Support traineeships - if it is not displacing already planned 
(and funded) provision and it adheres to the Traineeship Framework for Delivery. For Apprenticeships, any activity must comply with the apprenticeship legislation. 
 Will complement traineeships by enhancing or building on 
existing and planned traineeship provision through wraparound activity.  
 Additional support for disadvantaged young people beyond 
the core elements of training (work preparation, English and Maths) and work experience.  
 Complement apprenticeships (but not provide direct funding 
of training or wage costs). This will include supporting improvements to recruitment, assessment and training. 
 Support for traineeships and apprenticeships may include 
increasing uptake through dedicated marketing or outreach work and supporting individuals to remain on the 
programme (for example mentoring and paying trainees costs, such as transport). 
 Enhance local careers guidance services for young people  Broker opportunities with local employers to take on young 
people who are NEET (including those with complex barriers) 
 Support and information for employers to establish their 
requirements and encourage them to take on young people who are NEET. 

## Outputs

|                        |     |
|------------------------|-----|
| ID                     |     |
|                        |     |
| Output Indicator       |     |
|                        |     |
| Men minimum            |     |
| target value           |     |
| Total Minimum          |     |
| target value for       |     |
| this call              |     |
| Women                  |     |
| minimum                |     |
| target value           |     |
| 1067                   | 566 |
| 25 years of age)       |     |
| who are                |     |
| unemployed OR          |     |
| inactive (not in       |     |
| education or           |     |
| training)              |     |
|                        |     |
| 355                    | 188 |
|                        |     |
| Participants (aged     |     |
| 25-29) who are         |     |
| unemployed OR          |     |
| inactive (not in       |     |
| education or           |     |
| training)              |     |
|                        |     |
| 1067                   |     |
|                        |     |
| Unemployed             |     |
| (including long term   |     |
| unemployed)            |     |
| participants  (YEI)    |     |
|                        |     |
| 355                    | -   |
|                        |     |
| Long-term              |     |
| unemployed             |     |
| participants (YEI)     |     |
|                        |     |
| 355                    |     |
|                        |     |
| Inactive               |     |
| participants not in    |     |
| education or           |     |
| training (YEI)         |     |
|                        |     |
| 114                    |     |
|                        |     |
| Participants from      |     |
| ethnic minorities      |     |
|                        |     |
| 156                    | -   |
|                        |     |
| Participants with      |     |
| disabilities (YEI)     |     |
|                        |     |
| 57                     | -   |
|                        |     |
| Participants who       |     |
| live in a single adult |     |
| household with         |     |
| dependent children     |     |
| (YEI)                  |     |
|                        |     |
|                        |     |
|                        |     |

## Results

| ID                          | Result Indicator             |
|-----------------------------|------------------------------|
| Minimum Target value for    |                              |
| this call                   |                              |
|                             |                              |
| 70%                         | CRO1                         |
| who complete the YEI        |                              |
| supported intervention      |                              |
| 48%                         | CRO2                         |
| who receive an offer of     |                              |
| employment, continued       |                              |
| education, apprenticeship   |                              |
| or traineeship upon         |                              |
| leaving                     |                              |
| 48%                         | CRO3                         |
| who are in                  |                              |
| education/training, gaining |                              |
| a qualification, or in      |                              |
| employment, including       |                              |
| self-employment, upon       |                              |
| leaving                     |                              |
| 60%                         | CRO4                         |
| participants who complete   |                              |
| the YEI supported           |                              |
| intervention                |                              |
| 38%                         | CRO5                         |
| participants who receive    |                              |
| an offer of employment,     |                              |
| continued education,        |                              |
| apprenticeship or           |                              |
| traineeship upon leaving    |                              |
| 38%                         | CRO6                         |
| participants who are in     |                              |
| education/training, gaining |                              |
| a qualification, or are in  |                              |
| employment, including       |                              |
| self-employment, upon       |                              |
| leaving                     |                              |
| 60%                         | CRO7                         |
| education or training who   |                              |
| complete the YEI            |                              |
| supported intervention      |                              |
| 32%                         | CRO8                         |
| education or training who   |                              |
| receive an offer of         |                              |
| employment, continued       |                              |
| education, apprenticeship   |                              |
| or traineeship upon         |                              |
| leaving                     |                              |
|                             |                              |
| CRO9                        | Inactive participants not in |
education or training who are in education/training, gaining a qualification, or are in employment, including self-employment, 
upon leaving 
15% 
CR10 
Participants in continued education, training programmes leading to a qualification, an apprenticeship or a traineeship six months after leaving 
30% 
CR11 
Participants in employment six months after leaving 
3% 
CR12 
Participants in selfemployment six months after leaving 

 Applicants will be required to demonstrate how they will achieve the deliverables within their proposal along with any methodology that will be used to record achievement. Applicants will also need to ensure robust systems are in place, and be able to describe them, to capture and record the targets and to report quantitative and qualitative performance across the Tees Valley LEP area. All operations will be required to collect data and report progress against the deliverables with each claim. Where an operation underperforms against their deliverables they may be subject to a performance penalty. 

There must be a fully evidenced audit trail for all contracted deliverables. 

4. 

General Information  
Essential information to support the drafting of an application and delivery of a successful ESF funded project is available at the European Growth Funding website pages. 

## 4.1 Compliance And Eligibility

When developing an application, Applicants should refer to guidance on eligible Applicants, activities and costs. These are for guidance only and Applicants should take their own specialist advice if in doubt. It is the responsibility of the Applicant to ensure that the rules and guidance are adhered to both at application stage and following approval. 

ESIFs are governed by European regulations and national rules. Applicants are advised to familiarise themselves with the relevant documentation listed in the 'key documents' section prior to submitting an application. If successful, Applicants will enter into the standard Funding Agreement and must abide by the standard terms and conditions contained therein. Applicants are therefore strongly advised to read these terms and conditions to ensure that they would be able to enter into such an agreement prior to responding to the call. Once a Funding Agreement has been issued it should be signed and returned within a short timescale.  

## 4.2 Intervention Rate & Match Funding

ESF is the funding is used where no other funding can be obtained (the funder of last resort) and the maximum ESF intervention rate for the operation is 75% (inclusive of the YEI allocation). This means ESF can contribute up to 75% of the total eligible project costs, subject to State Aid regulations. The remaining 25% or more must come from other eligible sources. For all applications, the applicant will need to provide information to demonstrate that the operation is likely to have the required level of match funding in place at the point of formal approval. 

 
ESF is not paid in advance and expenditure must be defrayed prior to the submission of any claims. Applicants may be asked to demonstrate how they are able to cash flow the operation. 

4.3 
Applicants  
Applicants must be legally constituted at the point of signing a Funding Agreement, and be able to enter into a legally binding Funding Agreement. The Applicant will be the organisation that, if the application is successful, enters into a contract for ESF and therefore carries the liability for ensuring that the terms of the ESF Funding Agreement are met by them and to all delivery partners. If there is more than one organisation applying for the funds, a lead organisation must be selected to become the Applicant. It is this organisation that carries the responsibility and liability for carrying out a compliant project. The Managing Authority will consider the Applicant's track record, both positive and negative. If the Applicant has been involved in the delivery of previous European grants and any irregularities with this (these) grant(s) have been identified, the Managing Authority will look into these and expect to see how and what steps have been taken to ensure that these have been addressed to mitigate the risk of further irregularities in the future. It is acknowledged that some organisations will be new to ESIF funding and will not have a track record. 

## 4.4 Cross Cutting Themes

All applications received under this Call should demonstrate how the Cross Cutting Themes have been addressed in the project design and development. Cross cutting themes for ESF are 'gender equality and equal opportunities' and 'sustainable development'.   
For ESF, the project applicants will be required to deliver their services in-line with the Public Sector Equality Duty (as defined in the Equality Act 2010). All projects must have a gender and equal opportunities policy and implementation plan which will be submitted at full application stage and in-line with Managing Authority guidance. Project applicants will also be required to answer a number of ESF- specific equality questions which will be set out in both the full application form and the related guidance. For ESF, all projects will also be required to submit a sustainable development policy and implementation plan (in-line with guidance produced by the Managing Authority). 

The ESF programme particularly welcomes projects that have an environmental focus that can meet the strategic fit at local and programme level whilst also adding value by: 

 supporting environmental sustainability; and/ or  complementing the environmental thematic objectives of other 
programmes such as ERDF; and/or 
 using the environment as a resource to help motivate disadvantaged 
people    
Further information is available in the ESF Operational Programme 

## 4.5 State Aid & Revenue Generation

Applicants are required, in the Application, to provide a view on how their proposal complies with State Aid law. Applicants must ensure that projects comply with the law on State Aid.1 Grant funding to any economic undertaking which is state aid can only be awarded if it is compatible aid, in that it complies with the terms of a notified scheme or is covered by the De Minimis Regulation. Guidance for grant recipients, explaining more about State Aid, is available; it is important that Applicants take responsibility for understanding the importance of the State Aid rules and securing their full compliance with them throughout the project, if it is selected into the Programme. The Managing Authority is not able to give legal advice on State Aid. It is the responsibility of the Applicant to ensure that the operation is State Aid compliant. Where the Applicant does not perceive that there is any State Aid, it should state whether or not it considers Articles 61 and 65(8) of regulation 1303/2013 to apply. This revenue should be taken into account in calculating eligible expenditure. Article 
1 Article 107(1) of the Treaty on the Functioning of the European Union provides that: "Save as otherwise provided in the Treaties, any aid granted by a Member State or through state resources in any form whatsoever which distorts or threatens to distort competition by favouring certain undertakings or the production of certain goods shall, in so far as it affects trade between Member States, be incompatible with the internal market." 
 
61 refers to monitoring revenues generated after completion of the project, and Article 65(8) how to deal with differences in the forecast and actual revenues at the end of the operation. The details of this will be tested at the full application stage. 

## 4.6 Funding Agreement

The Funding Agreement is a standard, non-negotiable and legally binding document. Any successful Applicant will be subject to the terms and conditions contained within this agreement. Applicants are strongly advised to seek their own advice to ensure that they would be able to enter into and abide by the terms of the Funding Agreement. Failure to meet any of the conditions of the agreement or the commitments within the application will result in claw back of funding. Applicants should be aware that additional provisions and securities may be included within the Funding Agreement to protect the investment. These will be further discussed if relevant following the Full Application stage. 

## 4.7 Procurement

All costs delivered by the Grant Recipient (the applicant) and/or delivery partners must be delivered on an actual cost basis. Other costs must be procured in line with EU regulations. The most common error identified during audit has been failure to comply with relevant procurement regulations and crucially to maintain a full audit trail to prove that they have complied with the relevant regulation. Robust and transparent procurement is required to ensure that Grant Recipients:  
consider value for money;  

 
maximise efficient use of public money; and 
 
maintain competitiveness and fairness across the European Union. 
It is recommended that applicants seek their own legal advice pertaining to their procurement and requirements to publicise any tendering opportunities. The Managing Authority is not able to give legal advice on procurement. It is the responsibility of the applicant to ensure the project is compliant in this respect.  

## 5. Application Process & Prioritisation Methodology This Yei Call Is Being Assessed Under A 'One Stage' Esf Application Process; And Applicants Will Need To Complete The Full Application Form.

Guidance is available on the European Growth Funding website pages. Applications will be subject to a Gateway Assessment undertaken by the Managing Authority under the following criteria: 

 
Applicant eligibility;  
 
Activity and expenditure eligibility; and  
 
The fit with the ESF OP and the call. 
Proposals that pass the Gateway Assessment will move into the Core Assessment which consists of the following:  

 
Strategic fit; 
 
Value for money; 
 
Management & control; 
 
Deliverability;  
 
Procurement / tendering; and  
 
State Aid compliance. 
The Managing Authority will seek advice from partners when considering applications to ensure its assessment is informed by local economic growth conditions and opportunities within the context of Operational Programmes and the local ESIF Strategy.  This will include the relevant LEP Area ESIF Committee and other partners deemed relevant to the application. The assessment and any prioritisation will be undertaken using only the information supplied as part of the application process. The Managing Authority cannot accept further detail outside this process. Non-public sector Applicants who are successful may be subject to due financial diligence checks by the Managing Authority. Applicants will be required to submit accounts, and to clarify financial or other organisational information.  New Applicant organisations may be required to provide details of a guarantor. There is no appeal process for applicants whose Applications are rejected at application stage or for failing to satisfy the MA's Financial Due Diligence checks. 

6. 

Support Please note that this is a competitive call and to preserve impartiality we are unable to enter into correspondence with applicants over their application. Details of where guidance can be found are contained throughout this calls document. In exceptional circumstances, if there are issues with accessing this guidance, please contact: : ESF.2014-2020@dwp.gsi.gov.uk No applications are to be sent to this email address. Completed applications must be sent to the email address provided in Section 9 - Document submission. 

7. Key Documents  

 Full Application Form;  Full Application Form Guidance;  Local Enterprise Partnership area's ESIF strategy; and 
 Eligibility Guidance.   

## 8. Document Checklist

The appraisal will be undertaken on the basis of documentation received at the point of closure of the call.  Applicants should provide the following documentation. Full Application Stage:  

 fully completed Full Application (Section 2.7 and 2.8 are not applicable as this 
is a "one stage" application process); 
 fully completed financial table;  fully completed Outputs, Results and Indicators table 
To enable the Managing Authority to complete the required Financial Due Diligence checks (if private or voluntary and community sector), applicant to provide: 

o three years financial accounts o Proof of existence - Certificate of Incorporation, Charities Registration , VAT    
Registration Certificate or alternate form of incorporation documentation; 
o Proof of trading - Financial Accounts/Statements for the most recent two years 
of trading including, as a minimum, Profit and Loss Account and Balance Sheets; 
o Completed FVRA Applicant Template (for applications requesting annualised 
funding of greater than £1m) 
 Failure to provide the above documentation could result in the application being rejected. 

## 9. Document Submission

Completed Applications must be submitted to : 2014-2020.ESFAPPLICATIONS@DWP.GSI.GOV.UK 

## 10. Timescales

Launch of Call advertised on gov.uk.    
21st April 2017 
 Deadline for submission of Full Application 
26th May 2017 
 

Application forms not received by the deadline will not be assessed. Applications which are not fully completed will be excluded. 

For this call applications will normally be required to commence delivery/activity within three months of the award of contract. 

Any changes related to the deadline for the submission of the Application form will be notified on the European Growth Funding website pages.  
 

## 11. Appendix A - Common Output Indicators Appendix A - Extract From Annex 1 Of The Esf Regulation

Common output and result indicators for ESF investments 
 
(1) Common output indicators for participants 
"Participants" refers to persons benefiting directly from an ESF intervention who can be identified and asked for their characteristics, and for whom specific expenditure is earmarked. Other persons shall not be classified as participants. All data shall be broken down by gender. The common output indicators for participants are: 

unemployed, including long-term unemployed long-term unemployed inactive Inactive, not in education or training employed, including self-employed below 25 years of age above 54 years of age above 54 years of age who are unemployed, including long-term   unemployed, or inactive not in education or training 
with primary (ISCED 1) or lower secondary education (ISCED 2) with upper secondary (ISCED 3) or post-secondary education (ISCED 4) with tertiary education (ISCED 5 to 8) participants who live in jobless households participants who live in jobless households with dependent children participants who live in a single adult household with dependent children ethnic minorities Participants with disabilities other disadvantaged homeless or affected by housing exclusion from rural areas 

 (2) Common immediate result indicators for participants are: 

inactive participants engaged in job searching upon leaving participants in education/training upon leaving participants gaining a qualification upon leaving 

participants in employment, including self-employment, upon leaving disadvantaged participants engaged in job searching, education/ training, gaining a qualification, in employment, including self-employment, upon leaving 

 (3) Common longer-term result indicators for participants are: 
 
participants in employment, including self-employment, six months after leaving participants with an improved labour market situation six months after leaving participants above 54 years of age in employment, including self-employment, six months after leaving disadvantaged participants in employment, including self-employment, six months after leaving