European Structural and Investment Funds: balance calculation review request process

Purpose

To set out the process by which Lead Partners (LPs) may challenge the final Operation Closure Report Balance Calculation undertaken by the Management Authority (MA) and the circumstances under which the MA will consider such a challenge.

Background to balance calculation

As part of the closure process the MA will calculate a final balance for the operation taking into account the amounts of Total Expenditure Claimed, Match Funding recorded, Income, Intervention Rate, Grant Due, Ad Hoc Payments/Recoveries, Irregularities Raised, etc. as recorded in EUMIS and comparing them with actual amounts paid and recovered through our finance system.  

Any remaining balance resulting from this calculation will then be actioned by way of payment or recovery.

Timescale for balance calculation review request

Should a Lead Partner wish to challenge a balance calculation, the request for a review must be lodged in writing, clearly stating the grounds for the request, within 10 working days from the date of the closure letter.

Any request for review must be addressed to the Closure Queries mailbox ClosureQueries@gov.scot 

Grounds for a balance calculation review request

The MA will only undertake a review of the final balance calculation for an Operation on the basis that the LP considers that the outcome of, or any figures in the calculation are stated incorrectly for one or more of the following reasons:

• there are arithmetic errors in the calculation
• the figures in the calculation do not match those on underlying systems 
• transactions/data/information has been omitted from or mis-recorded in those systems

It is anticipated that before the final balance calculation is made, any issues in relation to the outcome of claim processing and verification, completed audits, irregularities, change requests, etc., etc. will have been resolved through the normal arrangements for those processes.

Balance calculation review request process

Any request for a review received via the email address above will be allocated to a specially convened group who are independent of the growth theme under which the request has been lodged. This body will be known as the Balance Calculation Review Panel and will be the decision maker, although they can consult with colleagues. Review panels will consist of the following;

• a Growth Team Leader (or equivalent)
• Programme Performance Team Leader/Senior Programme Performance Manager
• independent member e.g. SG Sponsorship Team/COSLA/PMC member 
• Audit Authority Team member
• Governance Team member

Impartiality will be paramount throughout the process. For example, if a request is received for an Operation overseen by the Sustainable Growth Team, the Growth Team Leader included in the Review Panel would be someone other than the Team Leader for the Sustainable Growth Team.  

The Programme Performance Team Leader (PPTL) will arrange for a member of the Programme Performance Team (other than the person who originally performed the calculation) to recheck the calculation and investigate the specific issues which form the grounds for the challenge. The PPTL will then provide all the relevant information to the members of the Review Panel.

The Review Panel will arrange for the review request and related information to be logged and stored in accordance with the MA Management and Control System. 

The Review Panel will carry out such checks and investigation as they believe necessary to fully explore and determine the outcome of the review. The Review Panel will issue their findings to the Lead Partner requesting the review within 20 working days of receipt of the request.

Follow-up of Balance Calculation Review Request Process 

Should the Lead Partner not be satisfied with the findings, it may further challenge the outcome of the review within 10 working days of the date of the findings email.

Any such further request should be submitted in writing to both the Head of the Managing Authority and to the Director of Economic Development and should be sent to both of the following email addresses:

• Hilary.Pearce@gov.scot 
• directorded@gov.scot 

The Head of the Managing Authority will arrange for this further review request to be logged and stored in accordance with the MA Management and Control System. 

The Head of the Managing Authority will forward the relevant materials to the Director for Economic Development. The Director will undertake a review of the challenge and reach a decision. This decision is final, subject of course to judicial review

The Director for Economic Development will provide the Lead Partner with a written response within 20 working days of receipt.  

It should be noted that while the Final Balance Calculation and the outcome of any review thereof are final as at the date issued, Operations may still be subject to audit reviews by the European Commission and its authorities three years following formal closure of the programmes and financial adjustments may arise from those audits.

If Lead Partners have any questions about this review process or the underlying balance calculation please submit these to the ClosureQueries@gov.scot mailbox.