Progress and Verification Record (PAV) –
ERDF-Forms-4-003
The Grant Recipient should complete all the sections highlighted yellow, and also the Project’s
Procurement Annex (ERDF-Forms-4-005 and ERDF-4-006) BEFORE the monitoring visit takes
place. A supporting guidance document (ERDF-GN-4-001) is provided to help you complete
each section. The Grant Recipient should then return the completed form to their GDT by the
date previously agreed.
This document was created in Microsoft Word 97-2003. To prevent corruption of the
document Grant Recipients using a newer version of Microsoft Word should save the form
in the 97-2003 format.
Please note; the completion of an A13 PAV visit record does not guarantee that further
issues will not be found by other external auditors.
If you have any questions relating to the form you should refer to your GDT contact.
Project Reference
Project Name
Grant Recipient Name
Purpose
The general principle of the A13 checks is to verify that the project is delivering to the terms and
conditions set out in its Funding Agreement1 and Offer Letter2, and compliance with the
Regulations as set out in the Council Regulation-s (EC) 1803/20063 and (EC) 1828/20064,
supported through the interpretations outlined in the guidance of the User Manual.
Purpose of this Visit (√)
Full PAV
Follow UP PAV
Reason for Visit:
Expenditure
Outputs
Compliance
Procurement
Other (Please specify):
1
"Funding Agreement" means the agreement dated the date upon which the Acknowledgement is signed and is
constituted by the Offer Letter (including the Schedules and any amending or supplementary documents attached to
the Offer Letter), these Standard Conditions (including the Annexures) and the completed Acknowledgement of the
Offer Letter.
2 "Offer Letter" means the letter and its Schedules, to which these Standard Conditions are annexed, and by which
DCLG offers Grant for the support of the Project on specified terms and conditions, and includes any variations agreed
in writing by DCLG and the Grant Recipient.
3 Council Regulation (EC) No 1083/2006 of 11 July 2006, which sets out general provisions about the Structural Funds,
as amended by Council Regulation (EC) No 284/2009, and Regulation (EU) No 539/2010 of the European Parliament
and of the Council.
4 Commission Regulation (EC) No 1828/2006 of 8 December 2006, which sets out rules for the implementation of the
Council Regulations, as amended from time to time.
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Colour Coding Key:
To be pre filled by GDT Monitoring Team
To be completed by Grant Recipient
To be completed by GDT Monitoring Team
Section A – Background and Reference Information
Priority Axis
Project Address
Grant Recipient Address
(if different from Project Address)
GDT Contact
Prompt of project specific issues to
raise at visit (if applicable)
Start Date
Financial Completion
Practical Completion
Visit Details
Visit Reference
Date of Visit
MCIS claim numbers and dates of expenditure verified
a) Eligible expenditure claimed at time of visit (£)
b) Expenditure tested at visit (£)
c) Expenditure verified at visit (£)
% of total expenditure claimed tested at visit (b divided by a)
Amount of any potential irregularities detected at the visit (£)
Project Risk Assessment Pre Visit
Project Risk Assessment Post Visit
Previous Visit Information & Conditions
Visit Type
Date of previous visit
Are all actions completed?
Project Engagement visit
PAV visit
A16 visit/s
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Visit Type & date
Ref No
List the PEV recommendations/A16 or
previous PAV actions outstanding at
the time of PAV Visit
Database Ref
(where
applicable)
Are there any outstanding contract conditions included within Schedule 1 to the Funding
Agreement that have not been met since the last visit?
Condition
Deadline
Comments
date
"Project Specific Conditions" mean those Conditions which are specific to the Project and are contained in Schedule 1
to the Offer Letter.
"Conditions" means together all of the conditions of Grant contained in all or any of any of the documents making up
the Funding Agreement and includes any variations agreed in writing by DCLG and the Grant Recipient.
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Grant Recipient personnel present during visit
As the lead Grant Recipient organisation you will need to advise and assure us that all relevant
personnel and records will be available on the day of the visit. These individuals will need to be
representing roles that cover:
 Finance
 Project Management
 Payroll/salaries (access to)
 External delivery partners (if relevant)
Name
Job Title, Role & Contact Number(s)
“Grant Recipient Personnel” means all employees, partners, agents, consultants and contractors of the Grant
Recipient and/or of any sub-contractor
ERDF A13 Monitoring Team representatives present during visit
Name
Job Title
Project Description – please provide a brief summary description of the project activity, in particular
outline, if there are fundamental changes to nature of the project since the last visit.
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Project Process Changes: since the PEV or last PAV visit. Please list here any changes in the
Project Activity and Management; Financial Management; Document Retention Arrangements; Final
Audit Arrangements: Evaluation Arrangements; Plans for Exit Strategy
Comments on section A
Any Recommendations, Actions or Irregularities arising from this section to be listed in Actions Annex
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1. Verification of Expenditure
1.1 Defrayal
1.1.1 Regulatory Requirements: How has all expenditure been defrayed according to ERDF
requirements?
1.1.2 Pre or Post Project Spend: has there been any expenditure which occurred before the start
date of the project or after the end date of the project (if the project has been completed), which has
been included in a claim to the GDT?
1.1.3 Third Parties/Financial Beneficiaries: if applicable, has the project organisation ensured that
third parties/financial beneficiaries in the delivery of the project are aware and comply with the
requirements relating to defrayal?
1.1.4 Contra Payment. Is there a system in place to ensure that payments of grant to the final
beneficiaries are paid without deductions of any kind? Can you confirm that any amount owed to the
organisation by a final grant recipient is not deducted from grants paid to them under this project?
Comments on Defrayal
Any Recommendations, Actions or Irregularities arising from this section to be listed in Actions Annex
List below evidence seen indicate whether seen or note why it is not applicable. Detail
specifically what has been seen or comment on why the item is not considered relevant. This is tested
thoroughly for specific sample tests in the expenditure checks appendix
BACS listings and Bank statement
Verification of claims process and expenditure.
For GDT use only:
Complete the Expenditure Table 1b in the PAV Verifications and Actions Annex ( ERDF-Forms4-005) to detail actual amounts checked and evidence provided
Coverage
Yes
No
Have all cost headings been covered?
Has the claim been compiled in line with the procedure confirmed at the PEV or the previous PAV,
including the checks made to ensure that expenditure had been defrayed, allocated to the correct
budget heading and any management checks made before submitting claims?
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Is any apportionment applied in line with the methodology agreed?
Has partner eligible expenditure been included in the claims selected for verification? If so can
defrayal be evidenced?
Is there evidence to support the match funding for the selected claim(s)?
Have staff costs been calculated and claimed correctly in the selected claim(s)? Is there evidence to
support this?
Staff training: Has any staff training been included in the cost claimed?
Does the evidence confirm that the statement at 1.1.4. has been implemented and no deduction made
off the payment to the Grant Recipient?
Overall comments on expenditure checks
Any Recommendations, Actions or Irregularities arising from this section to be listed in Actions Annex
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2. Capital Costs (If the project does not include any capital costs go to section 3)
Please list your Eligible Capital Expenditure as detailed in your most recent Funding
Agreement.
Expenditure heading
Most recent
Profiled
Spend to
% of profiled
Funding
total spend
date
spend
Agreement
to date
achieved
allocated budget
A
B
B as % A
Total
£
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2.1 Explain how each of these expenditure headings has been calculated, recorded and claimed e.g.Independent land valuation, receipts for land and building on accounts, site investigation costs, site
preparation costs? Is there an Environmental Impact Report?
Procurement processes will need to be fully evidenced in section 4.2.
You will need a full audit trail available on the day of the visit to evidence any of these items:
Comments on Capital Costs
Any Recommendations, Actions or Irregularities arising from this section to be listed in Actions Annex
List below evidence seen or note why it is not applicable. Detail specifically what has been seen
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or comment on why the item is not considered relevant.
Independent land valuation
Independent building valuation
Environmental Impact Report
Sites assessment studies
Site investigation reports
Tender report from project QS
Depreciation methodology/calculation
Is there any restriction on the title to the property?
Has there been or is there any intention to dispose of this asset within the capital lifetime as per the
grant funding agreement?
Has this visit included a visit to the site of the property created or refurbished by the project?
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3. Revenue Costs (If the project does not include any revenue costs go to section 4)
Please list your Eligible Revenue Expenditure as detailed in your most recent Funding
Agreement.
Expenditure heading
Most recent
Profiled total
Spend to
% of profiled
Funding
spend to date
date
spend
Agreement
achieved
allocated
A
B
B as % A
budget
Total
£
£
£
%
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%
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3.1 Salary Costs: what costs are included in salaries? Please ensure you specify any pension
contributions, any non taxable benefits etc. Where the staff do not work 100% of their time on the
project, please indicate the apportionment methodology used. Is the salary claimed capped at the
actual salary paid for the relevant month?
3.2 Staff Numbers: how many full time and part time staff are working on the project? Are they the
same as indicated in the project staff structure?
3.3 Timesheets: are part-time staff recording their time worked on the project in timesheets and are
these timesheets signed by them and their manager?
3.4 Direct Overhead Costs: what costs are included in overheads and can the audit trail for the direct
costs be demonstrated?
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3.5 Indirect Overhead Costs: is the indirect overhead methodology the same as that approved during
appraisal? Can the audit trail be demonstrated?
3.6 Flat Rate: if a flat rate is being used to claim indirect overhead costs, has the required audit trail
been maintained?
3.7 For any additional costs quoted in table 3 that have not been covered in answers 3.1 – 3.6
Explain how each of these expenditure headings has been calculated, recorded and claimed.
Procurement processes will need to be fully evidenced in section 4.2.
You will need a full audit trail available on the day of the visit to evidence any of these items:
3.8 Changes to Project: have there been any significant changes to the project that affect the
apportionment calculations and assumptions outlined in the application that might result in a
modification to the original agreed rate?
Comments on Revenue Costs
Any Recommendations, Actions or Irregularities arising from this section to be listed in Actions Annex
List below evidence seen or note why it is not applicable. Detail specifically what has been seen
or comment on why the item is not considered relevant.
Indirect cost calculation and Audit Certificate
Signed timesheets and methodology for calculation of rate charged
Payroll records/payroll
ERDF notification to staff that have been drafted in for specific project related tasks. Supporting
documentation sent to those individuals should be available and should state the nature and duration
of their involvement and the link to an ERDF funded project. i.e. job description or supporting letter
defining the terms of their involvement duration/role etc.
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4. Compliance
4.1 State Aid
DCLG is responsible for ensuring that the projects that are selected for ERDF support are compatible
with EU law on State aid. As part of the appraisal process, DCLG will assess if any aid is to be
approved under a block exemption, an approved scheme, the de minimis regulation or any other
Commission instrument.
4.1.1 State Aid Scheme: where applicable confirm you are still operating under the state aid solution
stated in the funding agreement and advise which solution (s) you are applying .
4.1.2 Eligibility, Monitoring and Recording Information: Please indicate how different schemes, aid
rates and eligibility criteria have been respected and monitored.
Comments on State Aid compliance
Any Recommendations, Actions or Irregularities arising from this section to be listed in Actions Annex
List below evidence seen or note why it is not applicable. Detail specifically what has been seen
or comment on why the item is not considered relevant
Does the Grant Recipient have a copy of the state aid approval or scheme reference?
For “De Minimis” aid are (i) beneficiaries given written notification of the value of aid given by this
project and (ii) are checks carried out of all public financial assistance received by the Grant Recipient
over the past 3 years prior to the intervention?
Where eligibility for grant or aid intensity depends on beneficiary size are EU SME declaration forms
completed?
Where eligibility or intensity of aid depends on assisted area status are checks on location taking
place?
Where aid intensity is reduced by previous participation in State aided risk capital scheme, has the aid
intensity been reduced?
Are records of the assessment of eligibility of activities, beneficiaries, costs and intensity levels
retained?
Are records of the monitoring of beneficiary state aid compliance retained?
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4.2. Procurement
Grant recipients must comply with European Union Procurement Regulations and the general
provisions of the Treaty. Breach of tendering requirements is the most common reason for claw back of
grant and the procedures must be carefully followed and monitored throughout the Project.
Grant Recipients must complete and return the Project Procurement Annex for all goods and
services purchased through this project.
4.2.1 Funding Agreement Requirements: please describe how the project is complying with the
Public Procurement Requirements.
4.2.2 Single Tender Actions: Please provide a list of any single tender awards made by the project.
4.2.3 Preferred Supplier Lists: Please provide a list of any awards made by the project using
preferred supplier lists.
4.2.4 Formal Tenders: are all formal tenders compliant with your Funding Agreement and the
Regulations?
Please demonstrate and provide evidence that all these conditions have been met.
4.2.5 Extended Contracts: have any contracts been extended? If so, demonstrate that this in line
with Procurement Regulations.
Please demonstrate and provide evidence that all these conditions have been met.
4.2.6
Completeness of the MCIS Procurement Tab: have all procurements above £500 in value
from the start of the project been recorded on the MCIS Procurement Tab?
Please explain the process used to identify and record procurements undertaken prior to 1st April
2012.
Comments on Procurement compliance
Any Recommendations, Actions or Irregularities arising from this section to be listed in Actions Annex
Detail specifically what has been seen or comment on why the item is not considered relevant.
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4.3 Publicity and Communications
It is very important that the use of Structural Funds across Europe is publicised and there are certain
specific European Union requirements in relation to publicity and branding.
4.3.1 Regulatory Requirements: Has the project fulfilled its commitment to publicise the EU’s
contribution to this project as required by the Funding Agreement.
Please demonstrate and provide evidence that all these conditions have been met.
4.3.2 Third Parties/Financial Beneficiaries: if applicable, has the organisation ensured that third
parties/financial beneficiaries involved in the delivery of the project are aware and comply with the
requirements relating to publicity? Can this be demonstrated by communications to the third
parties/financial beneficiaries?
Please demonstrate and provide evidence that all these conditions have been met.
Comments on Publicity compliance
Any Recommendations, Actions or Irregularities arising from this section to be listed in Actions Annex
List below evidence seen indicate whether seen or note why it is not applicable. Detail
specifically what has been seen or comment on why the item is not considered relevant.
Project publicity policy?
Plaques on buildings?
Logos on stationery, website?
Screen dumps of web site evidence?
Logos on job descriptions and tender specifications?
Logos on advertising and promotion material such as brochures, flyers, all communications with final
beneficiaries?
Billboards (capital projects where the total public contribution > €500k) does the ERDF logo cover
25% of the entire Billboard?
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4.4 Revenue-generating Projects (Complete where applicable)
Additional standard clauses for use with Revenue Generating Projects caught by Article 55
Requirements will be included in Schedule 1 of the Funding Agreement.
4.4.1 Revenue Generation: is the project generating any revenue? If so, is the project being delivered
in line with the Project Specific Conditions standard clauses in the Funding Agreement?
4.4.2 Unexpected Revenue: Is there any source of revenue being received by the project which was
not taken into account in the ex-ante Revenue Generating calculation?
4.4.3 Recording Revenue: where required how have revenue and / or income been recorded and
reported?
4.4.4. Audit Trail: can the audit trail for the revenue and / or income be demonstrated?
4.4.5. Annual Report. For Article 55.2 and 55.3 projects, has the annual report been provided to the
GDT?
4.4.6 For Article 55.2 and Article 55.3: projects how will the net revenue on projects be tracked after
the end of the project? Explain how this will be tracked and reported?
Comments on Article 55 Revenue Generation compliance
Any Recommendations, Actions or Irregularities arising from this section to be listed in Actions Annex
List below evidence seen indicate whether seen or note why it is not applicable. Detail
specifically what has been seen or comment on why the item is not considered relevant.
Approval calculation
Monitoring system for the net revenue
Annual revenue generation monitoring form submitted to GDT?
Are their systems for recording net revenue after the end of the project adequate?
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5.
Cross-cutting Themes
5.1 How do you intend to address the Cross Cutting themes in your original application and Funding
Agreement? For Equality of Opportunities what activity has the project undertaken to date Please also
complete 5.2 below
5.2 Equality
Disability
Gender
Original
contracted
target
Profiled
target to
date
Achieved
Evidence seen and
comments
Disabled
Male
Female
White
Mixed
Ethnicity
Asian or
Asian
British
Black or
Black
British
Chinese or
other
Ethnic
Group
16-24
25-34
Age
35-49
50-64
65+
5.3 How do you intend to address the Cross Cutting themes in your original application and Funding
Agreement? For environmental sustainability what activity has the project undertaken to date? Please also
complete 5.4 below
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5.4
Environmental
Sustainability
Original
contracted
target
Profiled target
to date
Achieved
Evidence seen
Comments
Comments on Cross cutting themes
Any Recommendations, Actions or Irregularities arising from this section to be listed in Actions Annex
List below evidence seen indicate whether seen or note why it is not applicable. Detail specifically what
has been seen or comment on why the item is not considered relevant.
Reports or studies
Case Studies
Policy documents
Are there examples of best practice to be reported?
6. Useful Economic Life of Assets
6.1 Asset Register: Is the Asset Register uploaded onto MCIS complete and up to date?
6.2 Change of Use: has there been any change of use of any asset(s)?
6.3 Disposal: has there been any disposal of any asset(s)?
6.4 Charging: has there been any charging of asset(s)?
Comments on Useful Economic Life of Assets
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Any Recommendations, Actions or Irregularities arising from this section to be listed in Actions Annex
List below evidence seen indicate whether seen or note why it is not applicable. Detail specifically
what has been seen or comment on why the item is not considered relevant.
Were at least 3 Assets from the Register seen on the visit ? Did the site of each asset match that stated on
the Asset Register?
7. Delivery and Verification of Outputs
Please complete the yellow highlighted sections in the ERDF-Forms-4-005 PAV Verifications and
Actions Annex, sheet 1c OUTPUTS as set out in your Funding Agreement
Please ensure there is a complete audit trail available of the output and results evidence at the visit site, on
the day of the visit.
7.1 Recording and Reporting: describe how the outputs are being gathered and calculated before being
claimed, and what baseline data is available in order that the effects of the intervention can be measured?
7.2 Eligibility Checks: describe what checks are carried out to ensure the beneficiary businesses or
individuals are eligible & belong to the target group(s) e.g., based in the Programme Area confirmed by
postcode.
7.3 Recording Interventions: how have the interventions been recorded?
7.4 Progress: Are the outputs being achieved in line with the current funding agreement forecast profile?
If not why not?
List below evidence seen or note if it is not applicable. Detail specifically what has been seen or
comment on why the item is not considered relevant.
Baseline details, e.g. level of sales or no. of jobs at a SME at the start of the intervention
Eligibility proformas
Beneficiary database/spreadsheet and individual beneficiary files
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MI / Activity reports
Beneficiary feedback/evaluation reports
Is the evidence for the achievement of the results adequate and does it match the national guidelines?
Complete the Physical Checks Table on ERDF-Forms-4-005 PAV Verifications and Actions
Annex 1c for outputs checked and evidence provided
Claim periods tested
Coverage
Yes
No
Have 10% of actuals for each output and result been tested?
Is there adequate evidence to verify outputs tested?
Is the project progressing in line with the latest forecast identified in the latest version of the Funding
Agreement?
Overall comments on outputs checks
Any Recommendations, Actions or Irregularities arising from this section to be listed in Actions Annex
8. Action points.
For Action Points arising refer to ERDF-Forms-4-005 PAV Verifications & Actions Annex.
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Any Additional ERDF Monitoring Officer Comments / Recommendations etc
ERDF Monitoring Officer
Signature
Name
Position
Date
ERDF Quality Assurance
Signature
Attended visit
Yes/No
Management
check of A13
record only
Yes/No
Name
Position
Date
Post Visit
Grant Recipient Comments on visit report –(if any to raise)
Grant Recipient
Signature
Name
Position
Date
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