Community and Voluntary Sector funding

Annex D Community and Voluntary Sector funding 2016-17 SAMPLE Agreement of Funding between Probation Board for Northern Ireland and Community Grant Recipient PBNI Funding Agreement 2016/17

Annex D TABLE OF CONTENTS TERMS & CONDITIONS OF AGREEMENT 1. Definitions and Interpretation 2. General Terms & Conditions 3. Changes to Approved Projects 4. Control and Prevention of Fraud 5. Verification 6. Financial Management 7. Eligible Expenditure 8. Bank Account 9. Claims for Financial Assistance & Payments 10. Withholding/Repayment of Financial Assistance 11. Default 12. Member State Legislation 13. Indemnity 14. Retention of Documentation 15. Access to Documentation: Inspection & Audit Rights 16. Publicity, Copyright and Sharing Good Practice 17. Monitoring, Evaluation and Reporting 18. Government Funding Database 19. Value for Money and Procurement 20. Governing Law and Jurisdiction 21. Limitations 22. Acceptance Appendix 1: Financial and Reporting Requirements ANNEX A: Schedules to Funding Agreement Schedule 1: Form of Acceptance Schedule 2: Bank Account Details Schedule 3: Confirmation of VAT ANNEX B: Financial & Progress Reporting 1.1. Project Expenditure Claim Form 1.2. Project Six Monthly Actual Expenditure 1

1.3. Project Invoice Summary Spot Check 1.4. Project Six Monthly Progress Report ANNEX C: Change Control 2

This Funding Agreement is made between the following parties: 1. Grant Provider (Probation Board for Northern Ireland) 80-90 North Street, Belfast, BT1 1LD (PBNI) 2. Grant Recipient (Name) ADDRESS (Grant Recipient) 1. Definitions and Interpretation a. In this Agreement the following words shall have the following meanings except where the context otherwise requires the bid Project Funding Period means the bid for financial assistance submitted by the Grant Recipient under the heading Community and Voluntary Sector 2016/17 means the Community Service Project which is described in the bid (Community Service Placements) means the period commencing at the date which the offer was made and ending 31 March 2017. 2. General Terms and Conditions a. The Grant Recipient is advised to contact PBNI if any delay is expected in the implementation of the Project. b. The Grant Recipient is advised that all monies allocated towards the Project will be spent on eligible costs associated with implementing the Project as described in the application and approved by PBNI. c. No aspect of the activity being funded should be party political in intention, use or presentation; or likely to be perceived as discriminatory on grounds of religion, colour, race, gender or disability. Any activities, such as campaigning, by the Grant Recipient will be in furtherance of, and ancillary to, its main purposes. PBNI shall be the sole 3

judge as to whether or not any activity of the Grant Recipient offends against this clause. 3. Changes to Approved Project a. The funding shall be used only for the purposes of the Project as defined in the application form or variations, which PBNI has agreed to fund. PBNI reserves the right to withhold any or all of the payments and/or require the Grant Recipient to repay part or all of the funding if, in the opinion of PBNI, there is a substantial or material change in the nature, scale or timing of the Project, or if the funding is used for purposes other than those specified in the application or agreed variations. b. Any significant proposed or anticipated changes to the Project, as approved by the Letter of Offer, will be notified immediately to PBNI using the Change Control Note at Annex C giving: a. details of the change; b. the reasons for the change; and c. details of how the project still meets its objectives. No changes should be implemented or authorised without PRIOR approval from PBNI. c. Continuation of assistance will be subject to the written approval of PBNI and formal amendment to the Letter of Offer if required. d. If any claim submitted differs significantly from the original approved application and prior written notification and approval has not been given, full assistance given under this Letter of Offer may be deemed invalid and PBNI may require the assistance given to be repaid partially or in full. e. Examples of significant changes, which will be notified and approved include: a. Change to the start or end date of the Project or the main activities within it; b. Change to the content of the Project from that set out in the original approved application, for example changing the scope, delivery, or aim; c. A drop by more than 20% in the number of beneficiaries; d. Variation by more than 20% under different cost headings compared with the budgeted costs as given in the application to which this Letter of Offer refers, even though the total project cost is not changed; 4

e. Changes in source(s) and the amounts of funding; f. Change to estimated expenditure; g. Claims for extra items of expenditure; h. Any change in match funding, including who is providing it; i. Change to Project or your organisation s name; or j. Change in key personnel, length of time of Project, or Project venue The above list is not comprehensive and you should contact PBNI should any doubt exist as to the need to report proposed changes. f. The Grant Recipient will note and undertake to fulfil the conditions of funding specific to the Project which are outlined in this document. 4. Control and Prevention of Fraud a. The Grant Recipient shall have overall responsibility for managing the risk of fraud. b. The Grant Recipient shall establish and ensure compliance with an anti-fraud policy and fraud response plan. 5. Verification a. The Grant Recipient shall be satisfied that any organisation appointed to provide services on behalf of the Grant Recipient has the capacity to deliver and has sufficient internal procedures to ensure all due propriety. b. The Grant Recipient shall undertake a Verification Process in relation to all funding provided by PBNI under this Agreement. 6. Financial Management a. Where PBNI has agreed to fund a Project, the Grant Recipient will declare all other sources of funding for that Project and inform PBNI of any new sources of funding which may arise after the date of this letter. PBNI may require sources of funding to be validated by signed Letters of Offer. 5

b. For small grants ( 1,500-30,000), salaries will be paid six months in advance on receipt of the first claim form which should be completed and returned with the signed Letter of Offer. Up to 75% of running costs will be paid at the outset of the project with the remainder paid on successful delivery of the project. c. Grants below 1,500 will be paid in advance on receipt of the first claim form which should be completed and returned with the signed Letter of Offer, where PBNI deems it to be appropriate. d. Where a grant recipient has a proven track record with PBNI, their claims will not be routinely subject to a verification check but will form part of a pool of projects which may be chosen for checking as part of a random sample. Where the grant recipient has no track record with PBNI, checking will be carried out at the 6 monthly and at the end of the funding period. All grant recipients must have all invoices and financial documents relating to the grant available for PBNI to check as required. The form at Annex B 1.3 Project Invoice Summary Spot Check will be used to document spot checks. 7. Eligible Expenditure a. Eligible expenditure consists of payments by the Grant Recipient for revenue expenditure during the Funding Period for the purposes set out in the bid. Eligible expenditure is net of VAT recoverable by the Grant Recipient from HM Revenue & Customs, and gross of irrecoverable VAT. b. For the purpose of defining the time of payments, a payment is made by the Grant Recipient when and only when, money passes out of the Grant Recipient s control. Money will be assumed to have passed out of the Grant Recipient s control at the moment when legal tender is passed to a supplier, when a letter is posted to a supplier containing a cheque or an electronic instruction is sent to a bank to make payment to a supplier by direct credit or bank transfer. c. The Grant Recipient must not deliberately incur liabilities for eligible expenditure before there is an operational need for it to do so. d. If the Grant Recipient incurs any of the following costs, they must be excluded from eligible expenditure: a. Activities of a political or exclusively religious nature; b. Goods or services that another Department, organisation or agency has a statutory duty to provide; c. Core Costs, to include rent, rates, insurance, management charges and utility charges except where a voluntary or community organisation is the lead delivery agent for the project. In this case, core costs will be appropriately apportioned; 6

d. Payments reimbursed or to be reimbursed by other public or private sector grants; e. Contributions in kind; donations f. Affiliation or membership fees g. Endowments, loan payments h. Depreciation, amortisation or impairment of fixed assets owned by the Grant Recipient; i. The acquisition or improvement of fixed assets by the Grant Recipient; j. Interest payments (including service charge payments for finance leases); k. Gifts to individuals other than promotional items with a value no more than 10 a year to any one individual; l. Entertaining (entertaining for this purpose means anything that would be a taxable benefit to the person being entertained, according to current UK tax regulations); m. Statutory fines, criminal fines or penalties; and n. Liabilities incurred before the issue of this funding agreement unless agreed in writing by PBNI. 8. Bank Account a. PBNI requires the Grant Recipient(s) to have a bank account for the disbursement of Eligible Project Expenditure. All monies received for the Project including matchfunding monies, will be lodged in full to this account. The bank account will be a current account. b. Where the Grant Recipient intends to manage the Project through an existing financial system using cost centres, PBNI may require the Grant Recipient to demonstrate to the satisfaction of PBNI that its system guarantees a clear audit trail with regard to all aspects of the Project s finances. 7

c. Should subsequent systems checks by officials of PBNI reveal insurmountable shortcomings, then the use of a dedicated bank account will be mandatory. 9. Claims for Financial Assistance and Payments a. Claims should only be submitted for actual expenditure incurred in accordance with the instructions described in Appendix 1: Financial and Reporting Requirements. Receipted invoices should be retained by the Grant Recipient who, on request, shall make all such invoices available for inspection by PBNI and their agents. b. There shall be no obligation to authorise payment in respect of claims which are received more than 28 days after the final date of that period. c. Payment will be made through the nominated bank account and will be dependent upon fully acceptable documentation being in place to support the claim. d. No financial assistance will be payable on any expenditure incurred outside the Funding Period. There shall be no obligation to authorise payment in respect of claims which are received more than 28 days after the final date of the Funding Period. e. It is the responsibility of the Grant Recipient to ensure that all claims are accurate and that they relate to activities and expenditure in accordance with the application that has been made. f. Receipt of financial assistance is conditional upon compliance with instructions described in Appendix 1: Financial and Reporting Requirements 10. Withholding/Repayment of Financial Assistance a. PBNI reserves the right to terminate or suspend authorisation of funding payment and/or to withhold any or all of the financial assistance. b. PBNI also reserves the right to withhold any or all of the financial assistance or require that all or part of the financial assistance already paid (or such lesser amount as PBNI in its sole discretion may determine) be repaid to PBNI upon notice in writing to the Grant Recipient to such effect if: a. There have been changes to the substance in any of the factors on which the financial assistance was calculated and these have not been notified and approved in accordance with this Letter of Offer; b. Any of the information provided in the application is found to be incorrect or incomplete; 8

c. If PBNI or agents of the aforementioned organisation judge that any financial assistance paid should not have been paid or that any financial assistance to be paid should not be paid. Sums in respect of the financial assistance as and when the same become payable under this Letter of Offer may be retained by PBNI and applied in reduction or satisfaction of the amount of assistance from time to time outstanding, and any sums retained and applied shall be deemed as at the date they are so applied to have been paid to the Grant Recipient for the purposes of and subject to the conditions contained in the Letter of Offer; d. There is unsatisfactory progress towards completing the Project; e. There is unsatisfactory progress towards meeting the expected targets/outcomes specified in the application; 11. Default a. If a. The Grant Recipient is in breach of any of its obligations under the Letter of Offer or these terms and conditions; b. the Grant Recipient fails to pay or repay any sum due by it whether under these terms and conditions or otherwise; c. the Grant Recipient is for any reason no longer able to implement the Project; d. an order is made, or an effective resolution is passed, for the winding-up of the Grant Recipient or a receiver is appointed over all or any of its property; or e. the Grant Recipient is unable to pay its debts within the meaning of Article 103 of the Insolvency (NI) Order 1989; and fails to remedy any of the breaches (if capable of remedy) mentioned in paragraphs (1.1) (1.5) above within 28 days from receipt of a letter from PBNI specifying them, the Grant Recipient is guilty of conduct which in the opinion of PBNI makes it inappropriate that agreement between the Grant Recipient and PBNI should continue. b. In any such event PBNI may suspend or terminate the agreement made between PBNI and the Grant Recipient by the Letter of Offer and its acceptance, and PBNI shall be entitled to require the Grant Recipient to pay to PBNI the aggregate of all payments of Project funds (other than those received from a source other than PBNI) or such lesser amount as PBNI at its sole discretion may determine. 9

c. In such cases, the matter shall be subsequently brought to the attention of PBNI for discussion on what further action is to be taken. 12. Member State Legislation a. Projects will comply with all domestic legislation in place in relation, for example, to equal opportunities, fair employment, working conditions and health and safety. b. Where a Project is responsible for the employment of staff, employment conditions and practices will comply with all the relevant employment legislation and should take account of current good practice in relation to employment rights and equal opportunities. 13. Indemnity a. PBNI accepts no liability for any consequences, whether direct or indirect, that may come about from the delivery of the Project, the use of the funding or from withdrawal of the funding. b. The Grant Recipient shall indemnify PBNI, its employees, agents, officers, offenders or sub-contractors with respect to all claims, demands, actions, costs, expenses, losses, damages and all other liabilities (otherwise than is permitted by law) arising from or incurred by reason of the actions and/or omissions of the Grant Recipient in relation to the Project, the non-fulfilment of obligations of the Grant Recipient under this Agreement or its obligations to third parties. A copy of a valid Public Liability Insurance certificate must be submitted with the application form. 14. Retention of Documentation a. Original documents relating to the implementation of the project and its financing should be retained for a seven (7) year period after PBNI has made the final payment in respect of the project. b. The retention of documents for inspection is a requirement and forms part of the terms and conditions under which financial assistance has been agreed. As well as being made available to the Northern Ireland Audit Office, funding recipients will produce the original documents or verified true copies when required to do so by PBNI and Agents of PBNI. Failure to produce the original documents or satisfactory agreed substitutes could result in requests for repayment of funds. c. If the Project is terminated for whatever reason the full documentation associated with the project will be returned to PBNI. In no circumstances should any documentation be destroyed or otherwise disposed of without the written permission of PBNI. 10

15. Access to Documentation Inspection and Audit Rights a. Any premises, documentation (financial or otherwise), or equipment used for the Project will be available for access by PBNI and their agents. b. These representatives shall also have the right to enter the Grant Recipient s premises at any reasonable time, and upon reasonable notice, to interview any person, inspect any asset and inspect, copy, record and take away any accounting or other record. The Grant Recipient will provide these representatives with any information required within one (1) week of demand. 16. Publicity, Copyright and Sharing Good Practice a. The Grant Recipient shall give appropriate publicity to the Project by drawing attention to the benefits and opportunities it affords. In acknowledging the government s contribution, the Grant Recipient must comply with any guidance on publicity provided by PBNI, and must, in particular acknowledge that the Project has received grant under PBNI. All publicity material must include the logo of PBNI. b. The Grant Recipient grants a licence to PBNI under section 91(3) of the Copyright Designs and Patent Act 1988 in relation to future copyright in works funded in whole or in part by grant paid under this agreement. This licence is non-exclusive and is granted without permission for the payment of royalties for the full period protected by copyright in the works in order to allow the Secretary of State to copy, issue or adapt any such works for his own purposes. c. Any information, know-how, system or process learned from or created in operating the Project may be disseminated by PBNI among all persons or bodies who have responsibility for similar projects. The Grant Recipient agrees that such persons may share and use freely all such information, know-how, system or process for their own purposes 17. Monitoring, Evaluation and Reporting a. The Grant Recipient is required to regularly monitor, evaluate and report on the Project. b. During the Funding Period it is the Grant Recipient s responsibility for gathering and reporting all monitoring and evaluation data relevant to the performance of the Project and its contribution to the Project s aims, objectives and targets. c. No later than 30 June following the end of the Funding Period, the Grant Recipient must submit to PBNI a report summarising the work carried out under the Project during the Funding Period, quantifying what has been achieved by reference to the outputs, activities, milestones and targets set out in the Project and, where appropriate, showing the progress made to date on an exit strategy for the Project. 11

18. Government Funding Database a. PBNI will ensure that: a. details of grant applications from voluntary and community organisations have been checked against the Government Funding Database; and b. details of all grant awards/payments to voluntary and community organisations have been recorded on the Government Funding Database. b. The Voluntary and Community Organisation will ensure that: a. the five key documents that must be either held on the Government Funding Database or sent directly to PBNI are up to date and fit for purpose. These include the Constitution/memorandum of Association, a List of Office bearers/board of Governors, the Organisation Chart, the Audited Accounts/Financial Statement and the Rental Agreement/ Lease or evidence of premises ownership. 19. Value for Money and Procurement a. The Grant Recipient must secure the best value for money, having due regard for propriety and regularity, in all purchases of goods and services made for the purposes of the Project. b. The Grant Recipient shall ensure that goods and services are acquired by competition unless there are convincing reasons to the contrary. The form of competition should be appropriate to the value and complexity of the procurement and barriers to the participation of suppliers should be removed. 20. Governing Law and Jurisdiction a. The offer shall be construed in accordance with the law of Northern Ireland and parties submit to the exclusive jurisdiction of the Northern Ireland Courts. 21. Limitations a. Funding provided under this Letter of Offer does not imply any further commitment to the Project by PBNI when the terms of this letter are completed. 22. Acceptance a. If you are prepared to accept this offer of funding on the terms and conditions stated, you will complete and return to PBNI the documentation contained in Annex A: Schedules to Funding Agreement. 12

b. Please note that if satisfactory confirmation of acceptance of offer has not been returned to PBNI within 28 days of its date then the offer shall be deemed to be withdrawn. 13

Annex D APPENDIX 1: FINANCIAL & REPORTING REQUIREMENTS The following outlines what is required by PBNI for the financial returns from the Grant Recipient. It outlines the requirements and timescales for the returns and what should be completed and forwarded to PBNI by the Grant Recipient. 1. The Project Expenditure Claim Form (Annex B 1.1) must be completed prior to any payments being made. For small grants ( 1,500-30,000), salaries will be paid six months in advance on receipt of the first claim form which should be completed and returned with the signed Letter of Offer. Up to 75% of running costs will be paid at the outset of the project with the remainder paid on successful delivery of the project. Grants below 1,500 will be paid in advance on receipt of the first claim form which should be completed and returned with the signed Letter of Offer, where PBNI deems it to be appropriate. 2. The Six Monthly Return should be forwarded to PBNI within 28 days after the end of 30 September 2016. As stated at Condition 9b PBNI is under no obligation to make payment on claims received after this date. The six monthly returns must include the following reports: Project six monthly Actual Expenditure (Annex B 1.2) Project six monthly Progress Report (Annex B 1.4) using the templates attached at Annex B. 3. Receipted invoices, receipts, bank statements and pay records should be retained by the Grant Recipient who, on request, shall make all such information available for inspection by PBNI and their agents. PBNI will carry out random checks and information should be sent within 28 days of the request. The project Invoice Summary Spot Check form (Annex B 1.3) will be used to record checks. 4. It is the responsibility of the Grant Recipient to ensure that Project spend is for eligible expenditure only. 5. It is the responsibility of the Grant Recipient to ensure that any sub-contractor provides the Grant Recipient with all appropriate and relevant information in a format that allows the Grant Recipient to submit returns to PBNI as described above. 6. In accordance with Condition 17c above the Grant Recipient shall by no later than 30 June 2017 following the end of the Funding Period, submit to PBNI a report summarising the work carried out under the Project during the Funding Period. 14

ANNEX A Schedules to Funding Agreement (to be completed and returned to PBNI) 15

Annex D SCHEDULE 1: FORM OF ACCEPTANCE 1. We the undersigned hereby accept PBNI s offer of funding. 2. We accept and agree to abide by the Terms & Conditions of this Funding Agreement which take precedence over any terms, conditions, stipulations or provisos which may appear on or be annexed to any correspondence submitted by us in connection with this Project. Project Title: For Address: Project XXXXXX ADDRESS, ADDRESS TOWN POSTCODE Signed: Print Name: Position: Dated:...... Chairman/Treasurer Signed: Print Name: Position: Dated:...... PBNI AREA MANAGER 16

Annex D SCHEDULE 2: BANK ACCOUNT DETAILS The funding will be paid into the following Bank Account: Name of Organisation:... Account Name (if different):... Bank Sort Code:... Account No:... Bank Name:... Address:......... 17

Annex D SCHEDULE 3: CONFIRMATION OF VAT POSITION Name of Organisation Address: VAT Registration No: I declare that is: Not registered for VAT and not liable to register. Registered for VAT and can claim back all VAT. Registered for VAT, but cannot claim back part of the VAT as detailed below: I declare that the information provided above is true and accurate: For and on behalf of Signed: Print Name:...... 18

Position: Dated: 19

Annex D ANNEX B Financial and Progress Reporting 20

2016/17 1.1 PROJECT EXPENDITURE CLAIM FORM PROJECT TITLE: PERIOD OF CLAIM: CLAIM NO. PROJECT ALLOCATION: TOTAL PAID TO DATE: (Including advance were applicable) EXPENDITURE CLAIMED: (All verified expenditure for claim period) BALANCE REMAINING: DECLARATION I hereby apply on behalf of the above named project for payment of Project Funding in accordance with the Letter of Offer from PBNI. I certify that the information given above represents the correct amount of re-imbursement now due and a full account of the project expenditure is given on the attached Project Summary Forms. I also confirm that: No other claim has, or will be made, in respect of this expenditure from any other Body or individual; No other funds have, or will be, received in respect of this expenditure from any other Body or individual; The amounts claim are strictly in accordance with the Terms and Conditions set out in the Agreement of Funding; All expenditure claimed has been paid in the implementation of the approved Project; No net asset included in this claim has been sold or disposed of; and No expenditure included in this claim has been included in any previous claim. SIGNED Chairman/Treasurer: DATE: 21

2016/17 Prepared by: GRANT RECIPIENT: DATE: Authorised by: PBNI FINANCE: DATE: 22

2016/17 1.2 PROJECT SIX MONTHLY ACTUAL EXPENDITURE YEAR: Project Title Budget Heading Allocation Apr-Jun Jul-Sept Oct-Dec Jan-Mar Variance Total For PBNI internal use only: Checked by: Position: Date: 23

2016/17 1.3 PROJECT INVOICE SUMMARY SPOT CHECK Period: Claim No. PBNI will carry out random spot checks at the six monthly stage and at the end of the project. This form is to be completed by Grant Recipient with supporting documentation attached if requested by PBNI. Project Title Supplier Invoice Number Invoice Date/P11 Description of Expenditure Date Paid Cheque No. Net Cost (ex VAT) VAT Total Eligible Amount Total Payable Invoices Checked & Verified by Grant Recipient: Payment Checked by PBNI Finance: Payment Approved by PBNI Finance (DP): Signed: Checked by: Signed: Position: Position: Position: Date: Date: Date: 24

2016/17 1.4 PROJECT SIX MONTHLY PROGRESS REPORT Period of Report: Project Title: Delivery Agent: Project Manager: Project Start Date Project End Date PART A: (to be completed by the Area Manager) Project Milestones (current six monthly) Off Target On Target Complete 25

2016/17 Summary of Project Progress to Date & Remedial Action Area manager comments: Project Milestones (next six months) Overall, is the project on target to achieve agreed Milestones and Objectives? Yes No Signed: Position: Date: Notes for completion You must advise the funder immediately of any circumstances which may affect your ability to deliver this project. 26

Annex C ANNEX C Change Control 27

Annex C Change Control In any project there are likely to be changes to the original plan during the course of the project. The changes may arise due to: The business case altering The need to find a way round a problem Identifying a better way to meet your objectives The scope of the project altering A Change Control mechanism is necessary to ensure that such changes are handled in a managed and controlled way in order to keep the project on track. Without formal procedures in place the project runs the risk of 'Scope Creep'. Any proposed change to the agreed plan, deliverables or budget of your project should be subject to an impact analysis. Key to any approach is to consider the impact in terms of: Time Cost Quality By considering the proposed change under the above headings you should be able to establish whether the change is within acceptable 'tolerance limits' or whether it has a significant impact on any of these areas. The definition of within tolerance limits is usually that the change can be implemented: without affecting achievement of major milestones in the plan and within the existing budget Generally a project manager may approve changes that are within tolerance. However, where the proposal amounts to a significant scope change the Project Manager must refer to PBNI. In these instances the Project Manager must present to PBNI a formal request for change supported by some form of Business Case. The Change Control Request form is a formal document where the requester describes the changes that need to be applied to the project. The form records: Details of the proposed change Analysis of the likely impact and Agreed actions 28

Annex C Change Control Request THIS SECTION TO BE COMPLETED BY GRANT RECIPIENT Grant Recipient Name Grant Recipient Manager Date of request Project Title: Summary of Requested Change Detailed Description (including reason for change, benefits, impact on other deliverables, implications of not proceeding, risks and budgets) Change Impact Summary Yes No Is request necessary to meet project objectives? Does request change the scope of the project? Does request move the project completion date? Does request affect the cost of the project? Does request impact on budget headings? For every question answered Yes provide a brief explanation and details of budgetary implications for each area affected 29

Annex C 30

Change Control Request Change Control Approval THIS SECTION TO BE COMPLETED BY PBNI AREA MANAGER Grant Recipient: PBNI Manager: Project Title: Date of request: PBNI Recommendation: Approved Rejected Deferred Reason(s) for non-approval/action to be taken: PBNI: Date: 31