International development - inclusive education programme: call for proposals

Annex C: Example of Scottish Government Grant Terms and Conditions

Purposes of the Grant

The Grant is made to enable the Grantee to carry out the Project.

The Grant shall only be used for the purposes of the Project and for no other purpose whatsoever.

No part of the Grant shall be used to fund any activity or material which is party political in intention, use, or presentation or appears to be designed to affect support for a political party.

The main objectives/expected milestones and outcomes of the Grant are:

As fully described in the Grantee’s initial application for funding dated 28 February 2024 “Strand 1 or Strand 2 title”)

The eligible costs exclude:

• Any Value Added Tax (VAT) reclaimable by the Grantee.

Payment of Grant

The Grant shall be paid by the Scottish Ministers to the Grantee along the following principles.

• The Grantee shall provide both a full breakdown of expenditure detailing what has been spent, in accordance with the Agreement, along with expected expenditure for any applicable coming financial year. This should include details of any underspend that Project have been permitted to reprofile. Any change to the profile or to the overall costs of the Project shall be notified to the Scottish Ministers at the earliest opportunity via the claims for Grant and monitoring reports.
• Each claim shall be for an amount equal to the estimated amount of the Grant required to meet the reasonable and proper costs and expenses of the Grantee in connection with the Project.
• Each claim shall be submitted together with such explanatory or supplementary material as the Scottish Ministers may from time to time require whether before or after submission of the claim.
• On receipt of each claim (and any required documentation and information), the Scottish Ministers shall determine the amount of expenditure which they consider the Grantee shall reasonably and properly incur in connection with the Project having regard to that claim. The determination shall be based on the information provided by the Grantee in accordance with this Schedule. The Scottish Ministers shall use their best endeavours (but shall be under no obligation or duty) to pay the amount determined to the Grantee within one month of receiving a claim and any required documentation and information relevant to the claim.

The Grantee shall within 8 weeks following the end of each financial year in respect of which the Grant has been paid submit to the Scottish Ministers a statement of compliance with the Conditions of the Grant. The statement shall be signed by the Grantee’s Director of Finance.

In the event that the amount of the Grant paid by the Scottish Ministers to the Grantee at any point in time is found to exceed the amount of the expenses reasonably and properly incurred or required by the Grantee in connection with the Project, the Grantee shall repay to the Scottish Ministers the amount of such excess within 14 days of receiving a written demand for it from or on behalf of the Scottish Ministers. In the event that the Grantee fails to pay such amount within the 14 day period, the Scottish Ministers shall be entitled to interest on the sum at the rate of 2 per cent per annum above the Bank of England base lending rate prevailing at the time of the written demand from the date of the written demand until payment in full of both the sum and the interest.

The Scottish Ministers shall not be bound to pay to the Grantee, and the Grantee shall have no claim against the Scottish Ministers in respect of, any instalment of the Grant which has not been claimed by the Grantee by 31 March of the applicable financial year unless otherwise agreed in writing by the Scottish Ministers.

Inspection and Information

The Grantee shall keep the Scottish Ministers fully informed of the progress of the Project in the form of an end of year progress report. The report shall include actual expenditure to date compared with profiled expenditure and any change to estimated expenditure for the financial year and/or the Project as a whole, the reasons for any such changes and progress in achieving objectives/outcomes.

Revisions to targets/milestones against which progress in achieving objectives/outcomes are monitored shall be subject to the written agreement of the Scottish Ministers.

The Grantee shall, on completion of the Project, submit a report to the Scottish Ministers summarising the outcomes and performance of the Project. Such a report shall include such statistical and other information relating to the impact of the Project as shall be required by the Scottish Ministers. Reports by and case studies in respect of any individual awarded a scholarship by the Grantee under the Project should also be collated and presented within the end of Project report, when the full grant has been disbursed by the Grantee.

The Grantee shall deliver a report on completion of the Project outlining the achievements of the grant to that point, including but not limited to the number and amount of scholarships awarded. The Grantee shall provide further reports by that date in subsequent years until the activities are complete and the funding is exhausted.

Inspection and Information

The Grantee shall also provide any other information that the Scottish Ministers may reasonably require to satisfy themselves that the Project is consistent with the Agreement. The Grantee shall provide the Scottish Ministers with prompt access to any information they reasonably require to ensure compliance with these Conditions.

The Grantee shall keep and maintain for a period of 6 years after the expenditure occurs, adequate and proper records and books of account recording all receipts and expenditure of monies paid to it by the Scottish Ministers by way of the Grant. The Grantee shall afford the Scottish Ministers, their representatives, the Auditor General for Scotland, his/her representatives and such other persons as the Scottish Ministers may reasonably specify from time to time, such access to those records and books of account as may be required by them at any reasonable time in response to a written request for such access from the person seeking it. The Grantee shall provide such reasonable assistance and explanation as the person carrying out the inspection may from time to time require.

Safeguarding: The Grantee must have robust safeguarding policies, procedures and good practice in place to prevent any harm and abuse to all people it has contact with that may arise from misuse of power and position of its staff and representatives. The Grantee must also have in place clear processes which must be followed if it becomes aware of specific incidents, including referral to the relevant authorities where necessary. Where the Grantee is working directly through a partner organisation, the Grantee is required to have undertaken due diligence in relation to safeguarding arrangements, including obtaining evidence of satisfactory safeguarding policies and / or procedures by the Grantee's partner organisation. The Grantee must report all and any cases of suspected abuse or malpractice relating to anyone involved within the Grantee or its partners, in delivery of the Project or any beneficiary of the Project to Scottish Ministers and the relevant authorities immediately. The Grantee must, upon request from Scottish Ministers, provide copies of the safeguarding policies and procedures underpinned by international standards referred to in this clause and those of their partners.

In the event of the Grantee becoming aware of or suspecting:

1. any irregular or fraudulent activity in relation to the Grant or Project, or any part of either of them; and/or

2. any safeguarding incident by or in respect of any person involved in the Project; and/or

3. any credible suspicions of, or actual incidents that are not directly related to this Agreement but would be of significant impact to their partnership with the Scottish Government, including but not limited to events that affect the governance or culture of the Grantee or its partner, or safeguarding incidents involving beneficiaries of the Project,

the Grantee shall immediately notify the Scottish Ministers of such activity or incident and provide such other information as the Scottish Ministers may reasonably require in relation to the impact on the Project and the use of the Grant. In so notifying Scottish Ministers, the Grantee must also confirm that such irregular or fraudulent activity or safeguarding incident has been referred to the relevant regulatory or other authorities (if it is safe to do so for the survivor(s)) as appropriate, in line with any statutory duty and otherwise in line with any guidance issued from time to time on Notifiable Events by either the Office of the Scottish Charity Regulatory (OSCR) or as appropriate the Charity Commission for England and Wales. For the avoidance of doubt, in this agreement, a "safeguarding incident" includes any incident of abuse or mistreatment of any vulnerable person or the misuse of power, authority or position of trust of any person involved in the project, organisation or related entities.

The Scottish Ministers reserve the right to suspend and/or terminate funding in the event that there is non-compliance with Clauses 4.7A and/or 4.7B and/or if it is of the opinion that the Grantee has failed or neglected in its duty of care to safeguard people and/or prevent financial mismanagement.

The Grantee shall immediately inform the Scottish Ministers of any change in its constitution for example, but not limited to, a change in status from one type of body corporate to another.

Fair Work First conditionality

The Grantee shall pay at least the real Living Wage (or reasonable equivalent in Malawi, Rwanda and Zambia) to all staff aged 16 and over (including apprentices) who are directly employed by the Grantee. Furthermore, the Grantee shall ensure that any UK-based workers aged 16 and over (including apprentices) who are directly engaged in delivering the grant-funded activity are also paid at least the real Living Wage, including, where applicable, sub-contractors and agency staff.

The Grantee shall demonstrate that all workers employed within their organisation have access to effective workers’ voice channel(s), including agency workers.

The Grantee shall provide any and all information reasonably required by the Scottish Ministers to satisfy themselves that the Fair Work First obligations herein, namely, to pay at least the real Living Wage and providing access to effective workers’ voice channels, are being complied with. Guidance is available to support the Grantee in meeting and evidencing these conditions.

Confidentiality and data protection

The Grantee will respect the confidentiality of any commercially sensitive information that they have access to as a result of the Project.

Notwithstanding the above, the Grantee may disclose any information as required by law or judicial order. All information submitted to the Scottish Ministers may need to be disclosed and/or published by the Scottish Ministers. Without prejudice to the foregoing generality, the Scottish Ministers may disclose information in compliance with the Freedom of Information (Scotland) Act 2002, any other law, or, as a consequence of judicial order, or order by any court or tribunal with the authority to order disclosure. Further, the Scottish Ministers may also disclose all information submitted to them to the Scottish or United Kingdom Parliament or any other department, office or agency of Her Majesty’s Government in Scotland, in right of the Scottish Administration or the United Kingdom, and their servants or agents. When disclosing such information to either the Scottish Parliament or the United Kingdom Parliament it is recognised and agreed by both parties that the Scottish Ministers shall if they see fit disclose such information but are unable to impose any restriction upon the information that it provides to Members of the Scottish Parliament, or Members of the United Kingdom Parliament; such disclosure shall not be treated as a breach of this agreement.

The Grantee shall ensure that all requirements of Data Protection Laws are fulfilled in relation to the Project.

To comply with section 31(3) of the Public Services Reform (Scotland) Act 2010, the Scottish Ministers publish an annual statement of all payments over £25,000. In addition, in line with openness and transparency, the Scottish Government publishes a monthly report of all payments over £25,000. The Grantee should note that where a payment is made in excess of £25,000 there will be disclosure (in the form of the name of the payee, the date of the payment, the subject matter and the amount of grant) in the both the monthly report and the annual Public Services Reform (Scotland) Act 2010 statement.

Disposal of Assets

The Grantee shall not, without prior written consent of the Scottish Ministers, dispose retain the proceeds of sale of any asset funded, in part or in whole, with Grant funds during the lifetime of the asset. During that period the Scottish Ministers shall be entitled to the proceeds of the disposal sale – or the relevant proportion of the proceeds based on the percentage of grant funding used in connection with the acquisition or improvement of the asset against the whole proceeds.

The Scottish Ministers shall also be entitled to the relevant proportion of any proceeds resulting from any provision included as a condition of sale. Recovery by the Scottish Ministers shall not be required where the value of the asset is less than £1000.

Publicity and communications plan

The Grantee recognises and accepts that the Scottish Government has committed through its Principles of the International Development Review that the Scottish Government and its delivery partners are transparent and accountable to local communities and the general public in its partner countries and in Scotland, and agrees to respect and support that commitment.

By reference to clauses above, the Grantee shall ensure that it creates and delivers public communications about the Project, including but not restricted to mainstream media and social media, towards this grant providing support for the Scottish Government’s ambitions around Global Solidarity. Joint communications shall be agreed with the Scottish Government in advance, in particular around the Conference and its resulting Reports.

The Grantee shall, where reasonably practicable, acknowledge in all publicity material relating to the Project, the contribution of the Scottish Ministers to its costs. The Scottish Ministers may require to approve the form of such acknowledgement prior to its first publication.

Intellectual Property Rights

All Intellectual Property Rights are hereby assigned to and shall vest in the Crown or its assignees.

Each party shall ensure that nothing contained in any Project Materials produced or submitted by it to the other party or anyone acting on its behalf nor the reproduction of such Project Materials, shall constitute an infringement of any third party’s Intellectual Property Rights.

Default and Recovery etc. of Grant

The Scottish Ministers may re-assess, vary, make a deduction from, withhold, or require immediate repayment of the Grant or any part of it in the event that:

• The Grantee commits a Default;
• The Scottish Ministers consider that any change or departure from the purposes for which the Grant was awarded warrants an alteration in the amount of the Grant;
• The Grantee fails to carry out the Project;
• In the Scottish Ministers’ reasonable opinion, the progress on the Project is not satisfactory;
• In the Scottish Ministers’ reasonable opinion, the future of the Project is in jeopardy; or
• In the Scottish Minister’s reasonable opinion, the Project is likely to bring the reputation of the Scottish Minister’s into disrepute.

If the Grant (or any part or condition thereof) does not comply with applicable Subsidy Control obligations, Scottish Ministers may require immediate repayment of the Grant or any part of it together with interest at such rate and on such basis as may be determined from time to time in accordance with law.

The Scottish Ministers may withhold the payment of the Grant if at any time within the duration of the Agreement:

• The Grantee passes a resolution that it be wound up, or a court makes an order that the Grantee be wound up, in either case otherwise than for the purposes of reconstruction or amalgamation, or circumstances arise which would enable a court to make such an order or the Grantee is unable to pay its debts within the meaning of section 123 of the Insolvency Act 1986;
• Where the Grantee is an individual, if a petition is presented for the Grantee’s bankruptcy or the sequestration of his estate or a criminal bankruptcy order is made against the Grantee; or the Grantee makes any composition or arrangement with or for the benefit of creditors, or makes any conveyance or assignation for the benefit of creditors, or if an administrator or trustee is appointed to manage his affairs; or
• A receiver, manager, administrator or administrative receiver is appointed to the Grantee, or over all or any part of the Grantee’s property , or circumstances arise which would entitle a court or a creditor to appoint such a receiver, manager, administrator or administrative receiver.

In the event that the Grantee becomes bound to pay any sum to the Scottish Ministers in terms of clause 9.1, the Grantee shall pay the Scottish Ministers the appropriate sum within 14 days of a written demand for it being given by or on behalf of the Scottish Ministers to the Grantee. In the event that the Grantee fails to pay the sum within the 14 day period, the Scottish Ministers shall be entitled to interest on the sum at the rate of 2 per cent per annum above the Bank of England base lending rate prevailing at the time of the written demand, from the date of the written demand until payment in full of both the sum and interest.

Notwithstanding the provisions of above clauses, in the event that the Grantee is in breach of any of the Conditions, the Scottish Ministers may, provided that the breach is capable of a remedy, postpone the exercise of their rights to recover any sum from the Grantee for such period as they see fit, and may give written notice to the Grantee requiring it to remedy the breach within such period as may be specified in the notice. In the event of the Grantee failing to remedy the breach within the period specified, the Grantee shall be bound to pay the sum to the Scottish Ministers in accordance with the foregoing provisions.

Any failure, omission or delay by the Scottish Ministers in exercising any right or remedy to which they are entitled by virtue of above clauses shall not be construed as a waiver of such right or remedy.

Assignation

Other than as expressly permitted by this Agreement, the Grantee shall not be entitled to assign, sub- contract or otherwise transfer its rights or obligations under the Agreement without the prior written consent of the Scottish Ministers.

Termination

The Agreement may be terminated by the Scottish Ministers giving not less than 3 months’ notice in writing from the date of the notice being sent. All unspent funds other than those irrevocably committed in good faith before receipt of a written notice of termination, in line with this Agreement and approved between the parties as being required to finalise activities relating to the Project, will be returned to the Scottish Ministers within 30 days of the date of receipt of a written notice of termination.

Corrupt Gifts and Payments of Commission

The Grantee shall ensure that its employees shall not breach the terms of the Bribery Act 2010 in relation to this or any other grant. The Grantee shall ensure that adequate controls are in place to prevent bribery.

Continuation of Conditions

These Conditions, except for clauses on confidentiality and data protection (which will continue to apply until the end of the period referred to), shall continue to apply for a period of 5 years after the end of the financial year in which the final instalment of the Grant was paid.

Compliance with the Law

The Grantee shall ensure that in relation to the Project, they and anyone acting on their behalf shall comply with the relevant law, for the time being in force in Scotland.

Governing Law

This contract is governed by the Law of Scotland and the parties hereby prorogate to the exclusive jurisdiction of the Scottish Courts.