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AGRICULTURAL BUSINESS DEVELOPMENT SCHEME (ABDS) EXPLANATORY BOOKLET - Form ABDS1
SECTION 3: Project IMPLEMENTATION AND Management
3.1 MAKING A CLAIM FOR GRANT AND VAT COSTS
3.1.1 How do I make a claim for grant?
You can only make a claim in respect of approved eligible items of expenditure which have been carried out and for which you have paid. Claims for grant must be submitted to your local SEERAD Area Office. The first claim form will be issued to you after your signed acceptance of grant is received in your local SEERAD Area Office and you are notified of the approval date for your project. The claim form will have its own computer generated ID number.
Where an interim claim is submitted another claim form with its own unique ID number will be issued until the final claim is submitted.
With your claim form you must enclose original invoices which have been receipted correctly and time sheets etc in line with the method by which you elected to carry out the work.
3.1.2 What detail do the invoices have to show?
Only correctly receipted invoices will be acceptable in support of a claim for grant assistance. To be acceptable only
original invoices will be accepted and
must show:
The name and address of the supplier or contractor.
The name and address of the customer.
Details of goods and services purchased and supplied, separately costed in relation to approved measures, and including VAT where appropriate.
The date of supplying the goods and/or services.
The total amount of the invoice.
The amount paid by the customer in figures or words. Where this is different from the total amount of the invoice, information
must be provided to explain the difference, e.g. amount of any discount given, or credit or hire purchase charges levied.
The signature and stamp of the person receiving payment on behalf of the supplier or contractor.
The date and method of payment. Where an invoice for carrying out an approved measure is in excess of £5,000, a properly receipted invoice and evidence of payment (e.g.: a copy of the cleared cheque/bank statement/banker's letter of confirmation/separately numbered receipt from the suppliers accounts/accountant's statement)
must be submitted.
Note: Your bank may charge you for this service.
Where an invoice for over £500 has been settled by cash, additional evidence of payment, such as a separately numbered receipt from the supplier's accounts or accountant's statement
must be submitted.
SEERAD reserves the right to seek such additional information as it considers necessary in support of a claim for payment.
The original invoices will be retained by your local SEERAD Area Office for a period of six months following payment of the claim after which period they will be returned to you. Photocopies of the invoices will be retained by the Department. You should contact your local SEERAD Area Office if you require the original invoices within the six month period.
3.1.3 What happens if my project costs vary from the costs contained in my Approval Document?
Financial assistance will be based on eligible expenditure incurred if all work has been completed to an acceptable standard and provided this does not exceed the limits set when the works were approved. If the completed project costs less than the approved eligible expenditure grant will be based on the approved grant rate applied to the actual costs incurred.
If it becomes apparent at any time that the costs relating to an approved project may change you should inform your local SEERAD Area Office immediately.
3.1.4 When will I receive payment?
SEERAD will endeavour to process all claims within three months of receipt of
all required information. Incomplete claims will be returned to you.
3.1.5 Do I have to wait until my project is completed before I submit a claim?
No. You can make interim claims as works are progressing. Claims will only be accepted for separately identifiable stages of project implementation, e.g. walls of a building complete; building wind and watertight but still to be fitted out etc provided you have paid for the work and submit correctly receipted invoices.
If your project relates to building works which required a Building Warrant you must submit the Completion Certificate with your final claim. If the Completion Certificate is submitted before the final claim it will not be necessary to send it again.
3.1.6 Are there any time limits for claiming grant?
Grant must be claimed within 18 months from the date of approval. If at any time you become aware that you may not be able to meet the agreed time scale you must immediately inform your local SEERAD Area Office.
You will be contacted six months after approval for confirmation that work has started. A letter will also be issued 15 months after approval to remind you of the last date for receipt of your fully documented final claim by your SEERAD Area Office.
Failure to claim for financial assistance within the approved time scale will result in your claim being rejected and may lead to revocation of your approval.
Your project may be inspected before grant is paid for either an interim or final claim.
3.1.7 Will someone inspect the completed project?
A member of the local SEERAD Area Office staff, other SEERAD representative or the Scheme Co-ordinator
may inspect your project at any time either before or after completion.
It is a condition of the Scheme that you allow any person, duly authorised, to have access to your land at any reasonable time to inspect it, or any premises, plant, equipment or goods in respect of which financial assistance has been approved, claimed or paid under the Scheme. Where the premises to be inspected are used as a dwelling house reasonable notice of intended entry will be given.
Any duly authorised person is also entitled to examine any book, account or other record, including computer record, necessary to substantiate your entitlement to financial assistance.
If you obstruct any duly authorised person in the exercise of their duty, or fail to provide for inspection any book, account or other record properly requested, the approval of your project may be revoked and any financial assistance, which has been paid, may be recovered.
3.1.8 Can I claim for the VAT included in invoices?
If your business is VAT registered and you intend to reclaim the VAT element of an invoice in your VAT return, you may only claim grant assistance for the cost, net of VAT.
If your business is not VAT registered and you do not intend to reclaim the VAT, grant assistance can be claimed on the total cost inclusive of VAT.
If you are in any doubt about your VAT status please consult your accountant.
Note: It is your own responsibility to ascertain what VAT costs can be reclaimed. You are advised to discuss this with your accountant, prior to submitting a claim.
3.1.9 How do I claim for the training grant?
Grant for approved training is claimed in the same way as other grant for the project. However it will only be paid on confirmation that the training has been undertaken. Certificates and receipted invoices enclosed must be enclosed with your claim form.
3.1.10 Will payment of grant for project costs be dependent on completion of training?
If training was included in the specific conditions of approval for the project it must be completed. Failure to complete could lead to recovery or withholding of grant. Where courses are funded, in full or in part, through other sources/funding bodies grant will not be paid under ABDS.
3.1.11 Can an agent submit a claim on my behalf?
Yes provided that the ABDS Authorisation for Agent to Complete Forms on behalf of a Business has been submitted to SEERAD or accompanies the claim form.
3.2 EXPECTED BENEFITS AND MONITORING
3.2.1 Expected Benefits
It will be a condition of the approval of your application that you agree the specific expected benefits you expect to obtain from the investment on which grant is sought, before your application is approved. The agreed expected benefits will be set out in Schedule B of the Approval Document and will form the basis for subsequent monitoring and evaluation. It may be that the base data against which some of the expected benefits are compared will change over the implementation period of your project. The expected benefits will therefore be confirmed following payment of the final grant claim for each project. It is vital for monitoring purposes that each expected benefit is
measurable. A list of potential expected benefits for each of the eligible measures is provided at Annex 4.
Expected benefits will differ according to the nature of the project. These are divided into two main categories: (i) Physical Outputs and (ii) Impacts.
Physical Outputs are the
immediate effects of the investment. For instance, a project which provides a new building or is re-using a farm building should detail the amount of space to be created/refurbished. Impacts, on the other hand are the
Ultimate effects of the project and applicants must detail the expected income and employment impacts. SEERAD Area Office staff or the Scheme Co-ordinator can provide advice on Outputs and Impacts.
3.2.2 Project Monitoring
The principal objective of monitoring is to establish if a project is making progress towards its stated financial and physical targets and if relevant to verify the effectiveness of the management and financial control systems in place for diversified businesses.
The monitoring process, to be undertaken annually, will include an update of general progress and development of the project. The expected benefits derived from the project will be assessed in relation to the projected expected benefits, as detailed in the Approval Document and confirmed at final claim stage. Any problems will be assessed and considered individually by SEERAD. Where the expected benefits are not being achieved, or are significantly more than originally anticipated. you will be asked to provide a full explanation.
All financial assistance is dependent on meeting the conditions of grant and the achievement of the agreed expected benefits detailed in the Approval Document. The conditions of grant will relate to the individual aspects of the project. The expected benefits will be drawn from your Business Plan and/or application, and may include for example increased yield, improvement to liveweight gain for stock, projected turnover, net profit and employment created/safeguarded. These expected benefits must be quantified and form the basis for project monitoring.
3.2.3 How will my project be monitored?
SEERAD will contact you annually and issue an Annual Monitoring form for completion and return. The monitoring period will cover the implementation period as set out in the Approval Document and continue for a period of 5 years, or 7 years in the case of residential letting, after the final payment of grant.
Three types of monitoring will take place during the life of the project:
1. Monitoring progress, from update provided when submitting claims
Start and completion dates for work will be detailed in the Approval Document. The final date for submission of claims in respect of the project will also be set and confirmed on receipt of the signed Approval Document. You should adhere to these dates. If at any time during the implementation period you become aware that you are slipping behind the set timetable you must immediately inform your SEERAD Area Office to discuss the situation. Only in
exceptional cases may consideration be given to vary the agreed time schedule for carrying out the work and submitting your claim beyond the eighteen month period.
Any cost increases must be notified to the local SEERAD Area Office as soon as identified.
2. Annual Monitoring
Annual Monitoring forms will be issued for all projects. The applicant must complete and return the Annual Monitoring form.
For diversification projects Annual Monitoring forms will be issued at an appropriate time after financial year-end, to allow time for preparation of financial accounts relative to the business. Financial statements and other information relative to the diversification project must be provided with the Annual Monitoring form. If this information cannot be provided, recovery of grant may be necessary.
Where more than one Investment in Holdings project has been assisted only one Annual Monitoring form will be issued to cover all projects.
3. Strategic Monitoring
To ensure the overall satisfactory progress of the ABDS and to comply with EU requirements, a percentage of projects may be monitored through a more detailed Strategic Monitoring site visit.
Projects will be selected according to risk factors such as time since last visit to the unit, total cost of project, mobility of equipment, specific conditions of grant, etc. A representative of an independent Verification and Compliance Unit, attached to SEERAD, set up to comply with EC Regulations will contact the applicant in advance of the monitoring visit to give the applicant sufficient time to prepare. The applicant should have available any financial accounts or records and any relevant documents or certificates. A report of the monitoring visit will be drawn up by the visiting officer, which must then be agreed and signed by the applicant. If applicable, as an outcome of the monitoring visit, a set of action points and timescales will be agreed which will be subject to further monitoring.
In addition to the above, general monitoring may be carried out by way of project visits and meetings, at any point during the life of the project.
3.3 FAILURE TO MEET CONDITIONS OF GRANT AND/OR AGREED TARGETS
3.3.1 What will happen if I cease trading or sell the business assisted through ABDS?
You should inform your local SEERAD Area Office immediately if there are any material changes in the agricultural or diversified business. The information you supply will be assessed and considered by SEERAD. It may be that financial assistance in whole or in part will require to be repaid.
3.3.2 What happens if I want to replace an item, which has received grant assistance?
If you propose to replace any item which received financial assistance you must notify your local SEERAD Area Office before doing so. SEERAD will have to consider if the proposed replacement will have an effect on the project assisted and if so whether recovery of financial assistance in whole or in part may be justified. Failure to notify SEERAD of any changes to your project may also lead to consideration of recovery action if changes are identified during the monitoring period.
In addition, any insurance or compensation settlement received or expected in respect of an item, which was the subject of financial assistance, must also be notified.
3.3.3 What happens if I cannot meet the Conditions of Grant and/or Expected Benefits?
If for any reason you find you cannot meet the Conditions of Grant and/or Expected Benefits you must inform your local SEERAD Area Office in writing immediately, submitting a full explanation of the position together with any relevant documentation. It may be possible to agree revised expected benefits and Conditions of Grant depending on circumstances.
If any condition of the ABDS is not complied with, or any statement made in connection with a claim for financial assistance is found to be false or misleading in a material respect, Scottish Ministers may revoke the approval and recover any financial assistance paid. Failure to achieve the expected benefits agreed with SEERAD may also lead to revocation of approval and recovery of grant. Legal action may also be undertaken to recover grant.
If the work has been badly carried out, or has been, or is being, unreasonably delayed, or is unlikely to be completed; or has in any way destroyed or damaged the natural beauty and amenity of the countryside; or the amount of expenditure included in the claim is excessive, having regard to the work or facility carried out; or the carrying out of the works or provision of the facility appears to frustrate the purposes served by assistance previously given or received from any other source, the approval may be revoked and financial assistance recovered.
If, to obtain a grant for yourself or any other person, you knowingly or recklessly make a false statement, you may become liable on summary conviction to a fine not exceeding level 5 on the standard scale.
Where the Scottish Ministers intend to revoke the approval, or reduce or withhold financial assistance, or seek repayment of financial assistance, you will be given written notification of the reasons for the action proposed to be taken.
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