Governance and delivery through Opt-In Organisations

1. Governance and delivery through Opt-In Organisations

2. Local Sub-Committees Growth Programme Board PMC GPB Sub-Committees [e.g. Thematic, Evaluation, TA] Local Sub-Committee 1 Performance and Accountability Sub-Committee Local Sub-Committee 2 Local Sub-Committee 3 Local Sub-Committee 39

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

4. European Structural & Investment Fund 2014-20 High Level Business Process – Inception to Funding Agreement (Non Opt-In) Applicant Funding Agreement signed Outline Application Stage One Develop Full Application Funding Agreement Managing Authority Full Technical Appraisal Local Annual Implementation Plan Publish Call Promote and Publicise Call Assess Outline against Criteria Review Outline and Prioritise Review Full Application LEP Area Partnership LEP Event ESIF Presentation

5. Key Differences for Opt-In Governance and Delivery There are 4 key differences in governance and delivery through Opt-In Organisations compared to the Business Process presented to LEPs on 19 March: Opt-In Organisations go through a selection process first, before their status is approved by the Managing Authority; Active engagement between Local Partners and Applicant to support development of local priorities and scale/scope of Opt-In provision prior to Implementation Plan stage; To reach funding agreement, Opt-In Organisations follow a 1-stage application process, rather than a 2-stage (no outline test required) LEP area partners have an MOU with each Opt-In Organisation, which sets out ways of working

6. European Structural & Investment Fund 2014-20 High Level Business Process – Inception to Funding Agreement (ESF Opt-In) Applicant Develop Full Application Funding Agreement Managing Authority Local Annual Implementation Plan (Including Local Priorities and Scale/Scope of Opt-In provision ) Full Technical Appraisal Commission Review Full Application LEP Area Partnership

7. Timetable for Opt-In Implementation Pre-OP Approval By end January – LEPs to detail in-principle commitment to level of spend and activities delivered through Opt-Ins in LEP ESIF Strategies From early April – LEP area partners are invited to develop draft agreements with opt-ins, subject to OP approval By mid-April – MA to publish draft OP for consultation, including criteria for selection of operations From early June – MA invites opt-ins to complete Opt-In Status Pro-Formas By mid June – MA to seeks Growth Programme Board (shadow PMC) approval of opt-ins Selection Criteria From mid June – Operational guidance available for local partners to help set up Local Sub-committees of PMC in shadow form and further develop pipeline of delivery; By end June – opt-in organisations submit completed Opt-In Status Pro-Formas By end June – MA formally submits draft OP to Commission, including proposals for quantified targets By end of July - MA conducts appraisal of completed Opt-In Status Pro-Formas against the Opt-In Selection Criteria and decides the status of Opt-In Organisations; From early August – MA works with ‘Conditionally Approved’ Opt-Ins to achieve full Opt-In status; By October – Sub-committees, MA and opt-ins finalise draft agreements, subject to OP approval, including targets and outputs

8. Timetable for Opt-In Implementation Post-OP Approval By end October – (Provisionally) Final OP agreed with Commission, including targets to be disaggregated between LEP areas By end October and post OP approval - MA seeks full PMC approval of Opt-In selection criteria By mid November – MA writes to Opt-In Organisations with decision on their status By end November – Local Sub Committees agree implementation plan, including agreements with Opt-Ins By end December/January – Opt-In Organisation submits Full Application to MA, per LEP area (this is where the ItF process/pattern kicks in) By end February/March – MA undertakes Full Appraisal of application By end February/March – MA asks Sub Committee to consider fit with local growth strategy & ESIF and confirm agreement to proceed By end March/April – Opt-In Organisation and MA sign Funding Agreements

9. Underlying Principles for Agreements between Opt-In Organisations and LEP / Local Area Partnerships Each Opt-in Organisation is different but will operate on the same underlying principles.  Agreements between Opt-In Organisations and LEPs/Local Area Partners will set out mutual understanding of the roles and responsibilities and ways of working in areas such as: Provision Management Arrangements Contracting Arrangements Governance Match Funding LEP involvement in Processes Confidentiality

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