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Jargon Buster


Government - Europe

Europe jargon or european jargon is doubling every 5 years.  At this pace no one will know what's going on in a few years time apart from the EU MP's.

Its a 'job for the boys' where the gravy train runs thick and fast. To get in with the excessive expenses claims, wife as secretary scams, excessive salaries, second home claims, useless and unnecessary meetings from one part of EU to the other you need to be recommended by someone corrupt already in power.

You try getting one of these jobs from 'outside the circle.' - it's near on impossible.

Inventing european jargon is a way of deflecting and hiding what is actually going on in Europe. Excessive use of  complicated terms and phrases hide inadequacies and corruption at all levels within the EU.

This european jargon directory shows some of the more normal terms commonly used. Just look at the long-winded explanations for a clue.

Thank god GB is still an island.


Europe Jargon

A

Accountability

The obligation of one person or body to answer for the performance or the duties assigned usually to the line with a delegated authority or financed by another body.

Accountable Body

The legally constituted organisation responsible for the correct administration and delivery of the European funded project. The accountable body will also be responsible for making grant repayments if problems are discovered with the project or its records.

Action Plan

An Action Plan is a strategic document prepared by an Action Plan Partnership that outlines European Social Fund (ESF)/European Regional Developmenmt Fund (ERDF) eligible activities for the measure with projected outcomes and associated costs. The Partnership acts as the "accountable body" for the plan, administering the grant decision-making and payments processes. Individual project applications are submitted to the Partnership for selection, appraisal and approval.

Actions

The kinds of things European Funds can support. Normally proceeded by "eligible". For example training to address skill shortages.

Added Value

Added value is the amount of extra benefit in terms of outputs gained as a result of European funding for the project, over and above those benefits obtained from other funding sources.

Additionality

Funds from Europe are supposed to be additional to what national governments would normally have spent in an area: they should not displace such resources. Similarly, individually projects must be able to demonstrate that without European Funds their project would not be able to go ahead (or only in a reduced form). This is the principle of additionality.

Advance payment

European Social Fund (ESF) Payment made to the project applicant when it is confirmed the project has started.

Annual Reports

Each year, a report needs to be prepared detailing progress towards meeting programme targets. The PMC will need to understand, own and agree this report which is sent to the European Commission. For the 2000-2006 period, these annual reports will have an enormous significance.

Annuality

In the past, some projects have only been permitted to apply for funding on a calendar year basis and for one year only. This was annuality.

Applicant

The legally constituted organisation responsible for correctly administering and delivering the European funded project. The applicant will also be responsible for making grant repayments if the conditions for receiving European Regional Developmenmt Fund (ERDF)/European Social Fund (ESF) support are not met.

Application

The submission of a formal document by an individual or organisation applying for funding for a project.

Appraisal

The process whereby project applications are assessed for eligibility, fit, value for money, and quality.

Approval

The process whereby a project is recommended for support.

Articles

Structural Funds are governed by legally binding agreements signed up to by all Member States of the European Union (see "Regulations".) These are written agreements, and each section tends to be called an Article and has a number.

Attributable

An action or item of expenditure that belongs to a project or activity

Audit

An inspection of the systems and financial records of a project to confirm the accuracy, reliability and eligibility of funding claims.

Auto de-commitment

The process whereby money can be taken back by the European Commission from programmes that are not spending or delivering to a particularly profile (see "Berlin Profile" and "Performance Reserve".)

Awarding body

The organisation providing certification of vocational courses, for example City and Guilds, BTEC and so on.

B

Baseline Information

Contextual information on the state of the programme area so that the

Single Programming Document (SPD)/Action Plan can be adjusted if trends change.

Beneficiary

The person or organisation receiving support from an European Regional Developmenmt Fund (ERDF)/ European Social Fund (ESF) funded project.

Benefits-in-Kind

Non-financial support given to a project, for example, staff time working on a project. It must be possible to measure this in-kind support financially.

Berlin Profile

The Commission, as part of ensuring programmes are managed in a more disciplined way, now insists that they spend to a particular annual profile (also know as "n+2" see below). The shape of the annual spend was agreed under the German Presidency and is known as the Berlin Profile.

Budget allocation

The funds awarded to a project that are to be used for the purpose set out in the project application.

C

Capacity Building

A commonly used term for projects which improve the ability of communities to take the lead in their own social and economic renewal

Capital Projects

European Regional Developmenmt Fund (ERDF) projects which involve an element of infrastructure development.

Caveat

A specific clause to make sure a particular activity is delivered.

Claim

A return completed by an organisation to show financial and non-financial information for a specific period. Also includes the claim for cash payable for the project.

Co-Financing

Channelling both European Social Fund (ESF) Funds and the required match funding to providers in a single stream.

Co-Financing Organisations (CFO)

In European Social Fund (ESF) this refers to the public bodies that bring funding together to enable co-financing.

Commission (EC)

The European Commission

Commitment

When a project is approved for funding, it receives an offer letter setting out how much funding it will get. The sum of all these offer letters is called "commitment". It has a very specific definition in terms of the Berlin Profile in that what has been committed in a particular year has to be spent (see below) two years later.

Community Support Framework (CSF)

The chief programming document for the Objective 3 Programme in Great Britain, which outlines how Objective 3 will be spent in the period 2000 – 2006.

Completers

Beneficiaries who have finished on a project and will not return to the project.

Concentration

The principle by which resources are focused on a particular area, or community, or sector so that there is real impact and visibility. The Commission is opposed to thinly spread jam.

Control

To check, verify and regulate elements of European Regional Developmenmt Fund (ERDF)/ European Social Fund (ESF) project delivery, or to exert control over the policy of an organisation.

Cross-cutting themes

In the main, environmental sustainability, ICT and equal opportunities (which, for the Commission, means gender). There is an expectation that these themes should run through all projects and programmes.

D

Delegation

The entrusting of authority from one official or body to another official or body usually at a subordinate level.

De minimis

A value below which a cost is not to be taken into consideration. For example there is a de minimis level under which state aid to companies does not have to be reported to the European Commission.

Depreciation

The calculated loss in value of an asset due to age, wear and tear, deterioration, or obsolescence.

Desk Officer

The key contact a GO and partners have in the European Commission.

DGs

Short hand for "Directorate General". These are sections of the European Commission dealing with Structural Funds. Our main dealings are with DG REGIO and DG EMPLOYMENT.

DG EMPLOYMENT

A section in the European Commission that deals with Structural Funds.

DG REGIO

A section in the European Commission that deals with Structural Funds.

DG Financial Control

Directorate General, responsible for effective and efficient control of the European Commission ’s resources.

Dossier

Under the old Programmes a dossier was a collection of European Social Fund (ESF) projects from one organisation with a similar theme. The term is still used for an individual project once it has been approved.

Dossier number

The Secretariat’s reference number for the project and should be used in all communications. This is a unique number that indicates the year in which project expenditure would first be incurred and the Programme under which the project has been supported e.g.

Year Unique Number Programme

01 1234 EM3

Distance Travelled

The progress made by a beneficiary towards either employment or other hard outcome as a result of the project

E

Early leavers

Beneficiaries who have left a project before they have completed it and who will not be returning to that particular project.

EC

European Commission

Eligibility

The conditions that have to be met by beneficiaries, costs and activities if they are to be eligible to be included in an European Regional Developmenmt Fund (ERDF)/ European Social Fund (ESF) funded project.

Eligible costs

Costs that are to be taken as allowable charges for an European Regional Developmenmt Fund (ERDF)/ European Social Fund (ESF)-funded project.

Employability skills

The skills required to improve a beneficiary’s chances of becoming employed, such as literacy training and specific vocational qualifications.

ERDF

European Regional Development Fund. One of the four Structural Funds and the principal fund in the Objective 2 programme. European Regional Developmenmt Fund (ERDF) funds a wide range of measures to stimulate economic development, leading to the creation of local jobs e.g. creating new business parks, helping communities to use IT, and support for businesses to expand.

ESF

European Social Fund. Aims to improve the employment situation in the European Union, usually through training or work subsidy.

ESFD

The European Social Fund Division - the part of Department for Work and Pensions with overall responsibility for administering European Social Fund.

European Social Fund (ESF) Contract

The contract between the Government Office or European Social Fund Division and the applicant once a project application has been approved.

European Court of Auditors

The taxpayers’ representative, responsible for checking that the European Union spends its money according to its budgetary rules and regulations and for the purposes for which it was intended.

European Commission

That part of the EU machinery that is responsible for Structural Funds. Based in Brussels.

European Regional Development Fund (ERDF)

European Regional Development Fund. One of the four Structural Funds and the principal fund in the Objective 2 programme. European Regional Developmenmt Fund (ERDF) funds a wide range of measures to stimulate economic development, leading to the creation of local jobs e.g. creating new business parks, helping communities to use IT, and support for businesses to expand.

European Secretariat

The GOEM team responsible for administering European Structural Funds programmes. Based in Nottingham.

Evaluation

There is a legal requirement to comprehensively evaluate Structural Funds programmes at three points. These are before the start of the programme (and this exercise becomes part of the programme document); halfway through – known as the interim evaluation; and after programmes have closed (known as ex-post). These evaluations will always be undertaken by an independent, external evaluator and assess the performance and delivery of all aspects of the programme.

Evaluations

Studies to determine how well operations undertaken under the SPD have met strategy/objectives - three types of evaluations: ex-ante, interim and ex-post.

Expenditure

Amounts paid by an organisation for goods or services received or services rendered.

F

Final beneficiary

The EC’s term for an applicant.

Final claim/project closure report

The final return completed by an organisation to show financial and non-financial information for a specific project.

Financial Tables

The section of the programme plan which shows how funds will be spent by year; by fund; by Policy Field/Priority (see below); and with what match funding contributions. A vital part of the programme and the key to the Berlin Profile (see above).

Funding

Money made available to a project.

G

Global Grants

A mechanism by which European Social Fund (ESF) is used to give small grants, which contribute to the priorites of the Programme, to organisations or individuals who would not normally be able to access the funds.

GNVQ

General National Vocational Qualification.

Grant rates

The Structural Funds co-finance eligible project costs - each Single Programming Document (SPD) contains a standard table stipulating the maximum grant rate that may apply to certain types of activity.

GSE

General Statement of Expenditure – the document which confirms that public match funding was actually provided.

I

Implementation

Any processes necessary to deliver the objectives in the SPD following its approval by the European Commission.

Indicators

The targets a programme elects to use to judge its performance.

Indicative Financial Envelopes

A partnership bids for an overall sum of money to deliver an agreed strategy. However, unlike an Action Plan, no organisation acts as the accountable body. Instead, bids are made to the partnership and they choose which projects they wish to support in principle, but the selected bids are then forwarded to GOEM European Secretariat for appraisal and approval.

Ineligible costs

Costs that cannot be claimed against the project.

Interactive application form (IAF)

The computerised version of the application form the applicant completes to apply for European Social Fund (ESF). Its allows the applicant to enter all the relevant information required when applying for European Social Fund (ESF) funding, and produce a paper copy of the application form.

There is currently no interactive application form for European Regional Developmenmt Fund (ERDF).

Intermediate Labour Market (ILM)

Waged or salaries, full or part-time jobs that are available only to unemployed people (or specific groups of unemployed people) for a limited time, and where the product of their work has either a direct social purpose, or is trading for a social purpose, (for example heating insulation projects), where the work or trading would not normally take place. (Source: Institute of Employment Research at Warwick - 1998)

Intervention

An action to focus on a specific goal, such as delivery of training to help with the employability of individuals.

Intervention rate

The percentage of eligible project expenditure provided by European funding, for example, up to 50% for European Regional Developmenmt Fund (ERDF) Objective 2 and up to 45% for European Social Fund (ESF) Objective 3.

Impacts

The effectiveness of a programme can be measured in terns of its impact which is are the longer term effects of the outputs e.g. net additional employment or business still operating 18 months after they are assisted.

L

Labour market information

Intelligence concerning local labour market conditions. In particular on employment levels, specific groups facing unemployment and employment opportunities.

Letter of intent

A letter from an organisation other than the applicant expressing its support for a project, either financially or through other means.

Local Social Capital

The name given to a concept of social cohesion, social networks and community spirit which is seen as a pre-cursor to more traditional economic regeneration strategies.

M

Main match funder

The principal provider of match funding to the project.

Managing Authority

The organisation deputed by the Member State to have overall responsibility for the proper running of Structural Funds. In England this is the Office of the Deputy Prime Minister, which discharges the function to GOs.

Match funding

All Structural Fund resources have to matched by other funds. These can come from national sources (SRB, Lottery), private sector contributions, in-kind, and volunteer time.

Measure

Sub-division of a SPD Priority which lists rationale, objectives, indicative list of eligible actions, available funds, baseline data and target outputs.

Monitoring

Two definitions. The first is that individual projects may receive a monitoring visit to check on progress. The second is that the PMC will receive regular reports on the progress of the programme as a whole and notably on the extent to which it is meeting targets.

N

N + 2

This is the principle whereby the spend required of a programme under the Berlin Profile is calculated. N is the commitment year. +2 is the year by the end of which funds committed in N have to be spent (or returned – see "auto de-commitment").

NVQ

National Vocational Qualification.

O

Objective

The bulk of Structural Funds are dedicated to delivering three Commission Objectives. Objective 1 programmes help regions lagging behind the EU average re-structure; Objective 2 programmes help regions with specific incidences of industrial decline converge or re-convert; Objective 3 programmes are not geographically targeted and deliver the European Employment Strategy.

Offer letters

This is a letter from either the GOEM or Partnership which offers grant to successful project applicants. It contains details of the grant offered and conditions which must be satisfied in order that grant will be paid.

OLAF

European Anti-Fraud Office. Provides support to member states in fighting fraud as well as carrying out investigations into suspected fraud.

On-Costs

The additional costs directly associated with an activity, such as, employers ’ National Insurance contributions.

Operational programme

Document setting out how funding will be targeted.

Organisation or College Based Costing

The method of allocating central costs to a specific activity through the use of training hours. This only applies to European Social Fund (ESF).

Outputs

The effectiveness of a programme can be measured in terms of the outputs which are the immediate consequences of a project activity e.g. people trained or square feet of workspace created.

P

Partnerships

Local, sub-regional, regional and sector groupings who work together (in the main, on an informal basis) to ensure projects coming forward in their area meet needs and do not duplicate and conflict with each other.

Paying Authority

The organisation responsible for paying claims. This is the Office for the Deputy Prime Minister for European Regional Developmenmt Fund (ERDF) and the Department for Work and Pensions for European Social Fund (ESF).

Performance Reserve

The Regulations require Member States to hold back a certain amount of funding. All programmes will be assessed to see how effective they have been. Programmes which have been demonstrably effective will receive more money from this programme reserve.

PMFC

Public Match Funding Certificate. A pre-designed form to be completed by organisations providing public match funding for European Social Fund (ESF) projects.

Policy Field

The term policy field is used in the Objective 3 programme in preference to priority to avoid confusion with regionally defined priorities.

Primary audit evidence, prime information, prime data

This is evidence that is of a key or fundamental nature, which can be used to confirm a particular transaction or activity. For example invoices, bank statements and signed declarations.

Priority

A set of specific aims within a programme that are to be tackled by the delivery of particular measures.

Priorities/Policy Fields

Structural Funds plans are shaped in a particular way. They start with an economic and social conditions analysis. This is distilled into a SWOT. Summary of Strengths, weaknesses, opportunities and Threats. The SWOT leads to a programme strategy – which is articulated through Priorities/Policy Fields (and Measures). Priorities tend to be self-standing drivers which each attend to a different aspect of the SWOT – like an absence of business start-ups; the deprivation of some communities; gaps in technology and innovation. Priorities will have amounts of money allocated to them in the Financial Tables. The PMC cannot move money between Priorities without the Commission ’s endorsement.

Private match funding

Financial support provided to a project by a private organisation.

Profile

Forecast timing of project expenditure; triggers advance payment.

Programme Complement

This document is relevant to the Objective 2 Programme. For the 2000-2006 period, the Commission approves the programme plan only down to the level of Priorities. This leaves a significant amount of detail to be agreed locally – and therefore gives real flexibility and power to local decision making. The document that takes this second level of detail forward is called the Programme Complement.

Programme Monitoring Committee (PMC)

The PMC oversee the progress of the Objective 2 Programme and include representatives from Government, the Commission and local partners. As Objective 3 is a National Programme there is a National Monitoring Committee. A Regional Committee, whose representation reflects that of the National Committee, monitors the delivery of the Programme within the regions.

Programme Secretariat

Responsible for the preparation of documentation relating to monitoring, reports, agendas, records of meetings and general programme management. The Programme Secretariat is based in the Government Office for the East Midlands.

Programming

Since 1994, the spending of Structural Funds resources in regions have been expressed through one planning document, rather than through a string of individual projects bidding to the centre. This is called programming.

Project appraisal

Consideration of project applications against SPD and project selection criteria, to ensure the project is worthwhile and gives value for money.

Project progress report /interim claim form

A periodic report by an applicant on the progress of a project. This report triggers interim payments

Priority

Broad sub-division of a SPD (eg. Tourism, business support, community economic development).

Propriety

Relates to the way in which transactions are handled; for example, ensuring that purchasing procedures are secure against fraud, grant claims are properly completed, and proper checks are carried out before payments are made.

Private Sector Leverage

Private sector funds which are committed to the programme as a result of the programme gaining Structural Fund support and which would not be spent in the area or on that strategy without the influence of the Structural Funds.

Public Match Funding Certificate (PMFC)

A certificate that has to be signed by a public match funder.

Public match funding

Financial support provided to a project by a publicly funded organisation.

R

Regulations

Structural Funds are bound by written "dos and don’ts" agreed by Member States. These are the Regulations.

Regional Development Plan (RDP)

This is the regional "chapter" of the national Objective 3 programme.

Regional Monitoring Committee

A group of nominated regional experts responsible for managing European Social Fund (ESF) Objectives. The Government Office Regional Director or a nominated deputy chairs the committee.

Regional Partner

A local body that works closely with the GO and Regional Committee to deliver European Social Fund (ESF) effectively. Regional Partners take part in scoring panels, provide advice and guidance to applicants and undertake other roles in support of the administration of European Social Fund (ESF).

Regional Strategy

The regional strategy must be within the overall framework of the SPD for the objective area.

Regularity

Means applying funds only to the extent and for the purposes for which they are authorised. It also entails the observance of administrative rules such as those which appear in European Regional Developmenmt Fund (ERDF)/European Social Fund (ESF) grant application.

Results

The effectiveness of a programme can be measured in terms of results which is defined as what happens as a result of the project’s outputs e.g. gross jobs created or qualifications obtained.

Revenue

Income generated by an European Regional Developmenmt Fund (ERDF) or European Social Fund (ESF) project.

Revenue Projects

Projects without any element of infrastructure development (eg. advice to businesses; R &D collaboration; tourism promotion; etc).

Rules

A number of specific aspects of the Regulations are interpreted and explained further in a set of guidance called "Rules" (formerly "datasheets"). These are explained within the "Rules and Regulations" chapter of the National European Social Fund (ESF) Guidance.

S

Scoring

The application of selection criteria.

Selection Criteria

Projects coming forward seeking funding must be assessed fairly, transparently – and speedily. The PMC will agree a selection framework whereby this can happen and happen with the full confidence of all concerned. The selection framework will be a written document containing criteria to assess, among other things, Structural Funds eligibility, fit with the RES, and quality.

SF

Structural fund.

Significant Change

Anything which changes the theme of the project and/or its outputs and costs from those set out in the application as a result of unforeseen external or internal factors. For example, in European Regional Developmenmt Fund (ERDF) changes of more than or less than 10% in any cost heading or in outputs. In European Social Fund (ESF) the figure is 15%. Such changes must be notified to and approved by the Secretariat.

Single Programme Document (SPD)

With the Programme Complement the key document of the Objective 2 programme. It says how the PMC is going to spend the money it gets from Europe.

SMEs

These are Small and medium-sized enterprises.

SMEs are defined as enterprises which:

Medium Sized Enterprises: have fewer than 250 employees, and have either an annual turnover not exceeding 40 MECU or an annual balance sheet total not exceeding 27 MECU, and conform to the criterion of independence as defined in paragraph 3 of the Official Journal of the European Communities L107 of 30.04.96 page 8.

Small Sized Enterprises: have fewer than 50 employees and, have either an annual turnover not exceeding 7 MECU or an annual balance sheet total not exceeding 5 MECU, and conform to the criteria of independence as defined in paragraph 3 of the Official Journal of the European Communities of 30.04.96 page 8.

Soft Indicators

Indicators are the means by which we can measure whether the outcomes have been achieved. The term soft indicators can be used when referring to achievements which may indicate acquisition or progress towards an outcome.

Soft Outcomes

These are outcomes from training, support or guidance which unlike traditional outcomes i.e. qualification and jobs can not be measured directly or tangibly.

Spend

When a project has an offer letter that is commitment. Spend only takes place when a project begins to make claims. In the main, projects claim quarterly, in arrears, and on expenditure incurred.

Social Exclusion

Partitioning a group, individual or sector from the normal activities of society because of economic or social factors.

Standard Clauses

Each SPD contains a set of conditions on the administration and implementation of the programme. These cover the principles governing monitoring and evaluation; the role of the Monitoring Committee; procedures for amendment of the SPD; Annual Reports; procedures for using Technical Assistance; publicity; financial implementation; mechanisms for payments; use of the ECU; financial control; and compliance with Community policies.

State Aids

State Aid is aid that is considered to distort the competition between companies and pose a threat to the operation of the internal market. European Community rules on State Aids apply limits to the level of help the public sector can give to industry. Examples of State Aid include direct grants: subsidised loans etc or where there are benefits to firms from subsidised business support schemes (e.g. reduced cost business consultancy, subsidised rents, training). This is a very complex area and detailed guidance notes are available to view on this website.

Strategic Development Opportunity

This refers to Measure 2.1 in the Objective 2 Programme, which is able to support developments that offer environmentally and economically sustainable growth.

Structural Funds

A collection of funds channelling financial assistance to the less well off regions of Europe in order to encourage greater economic and social cohesion. There are four Structural Funds:-European Regional Development Fund (ERDF)European Social Fund (European Social Fund (ESF))European Agricultural Guidance and Guarantee Fund (EAGGF)Financial Instrument for Fisheries Guidance (FIFG).

Sub-contract

The delivery of elements of projects by organisations other than the applicant or a project partner.

Supplementary Credit Approvals (SCAs)

Local authority’s permission to borrow or enter other credit arrangement. In the case of European Regional Developmenmt Fund (ERDF), SCAs are issued to compensate for the ‘set aside’ requirement and, in effect, provide ‘spending power’ for the grant received.

T

Target Group

A group deliberately targeted by approved policy, usually as a result of labour market intelligence.

Targeting

The Commission is keen that resources should have maximum impact. In its view this only happens when resources are focused (targeted) on, for example, particular sectors, particular businesses, particular locations – and, especially, particular communities.

Technical Assistance

A section of the Structural Funds budget which can be used to assist with measures to prepare, appraise, monitor and evaluate Structural Funds operations, and for pilot and demonstration projects. Each SPD contains a section describing the scope to which Technical Assistance can be used to fund activity under each programme. Programme Monitoring Committees are responsible for proposing use of each programme Technical Assistance budget.

Transitional Areas

Some areas, though eligible for Structural Funds in the 1994-1999 period, have not met 2000-2006 eligibility. These are therefore in transition from Structural Funds and will leave the programme in 2005. The other difference is that Transitional Areas are not eligible for Objective 2 European Social Fund (ESF).

V

Value for money

Is widely used to describe the optimal balance between outputs and inputs. Good value for money gives efficiency (the ratio of an activity to the resources input), economy (the purchase of goods or services at lowest cost) and effectiveness (the extent to which objectives are achieved).

Veracity

Truth and accuracy.



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