THIS ACCOUNTABLE BODY AGREEMENT (ABA) IS MADE ON 24^th February

2015 BETWEEN

(1) NEW ANGLIA LOCAL ENTERPRISE PARTNERSHIP of Centrum, Norwich

Research Park, Norwich, NR4 7UG (New Anglia LEP) and

(2) SUFFOLK COUNTY COUNCIL of Endeavour House 8 Russell Road

Ipswich IP1 2BX (SCC)

1. INTRODUCTION

1.1

The purpose of this ABA is to set out the framework for respective roles and

responsibilities of New Anglia LEP as the organisation which has

responsibility for making decisions on the project activity that the various

funds set out at clause 2.2 below will support, along with other funding arising

out of the Norfolk and Suffolk Economic Strategy, and SCC (as the

organisation taking on the role of “Accountable Body” for New Anglia LEP and

the funds set out at clause 2.2 below) who will have responsibility for ensuring

that such decisions meet the legal, regulatory and funding criteria applicable

at the time of decision and during the period of the project activity.

2. BACKGROUND AND CONTEXT

2.1

New Anglia LEP has been established to work with businesses and partners

across the education, voluntary and public sector, to help grow jobs in Norfolk

and Suffolk.

2.2

New Anglia LEP and SCC have developed in line with Government guidance

a single assurance framework (“Assurance Framework”) covering all

Government funding flowing through New Anglia LEP, to ensure New Anglia

LEP has robust value for money processes in place. The purpose of the LEP

Assurance Framework is to support the developing confidence in delegating

funding from central budgets and programmes via a single pot mechanism to

LEPs and their accountable bodies. The Accountable Body is required to sign

off the Assurance Framework.

2.3

New Anglia LEP has responsibility for deciding the project activities that

Growth Deal funds will be allocated to which in this ABA, are referred to

collectively as “the Programme”.

£290 million has been made available to

New Anglia LEP from 2014 to 2021 as part of the Government’s Growth Deal

programme, for which all 38 LEPs across England have been invited to

compete for an individual allocation. Growth Deals provide funds to local

enterprise partnerships or LEPs for projects and programmes that benefit the

local area and economy.

2.4

New Anglia LEP’s particular objectives for the Programmes can be found in

the relevant chapter of the Assurance Framework and include:

2.4.1 The Growing Places fund is a recycling loan fund which has been in operation

in the New Anglia region since 2012.

The fund was designed to address the problems facing stalled developments, by

providing financial support towards costs such as site infrastructure, services or

access.

The fund operates predominantly as a loan fund but has awarded small grants where

a regionally significant project can be delivered as a result and where the grant secures

a major match funding contribution.

The Growing Places Fund is open to public and private applicants. The Fund now

stands at a total allocation of approximately £32 million which has been matched by in

excess of £280 million from public and private sources. The Fund has committed over

£25 million on

28 capital investment projects and has supported

7 sector

developments. The fund remains open to applications and has a pipeline of projects

for consideration.

2.4.2

The Growing Business Fund is a grant fund which has been in operation in the New

Anglia region since April 2013. The fund was initially supported by the Regional

Growth Fund, with £12m awarded from Rounds 3 and 4 of the funding. In 2015 the

New Anglia LEP secured an additional £25.57m by 2021 from the Local Growth Fund

through the Growth Deals. The Fund provides grants between £25,000 and £500,000

to local businesses across Norfolk and Suffolk.

The fund supports the capital costs of expansion by the businesses, up to the

maximum allowable contribution under General Block Exemption Regulations

(GBER) Articles 14, 17, and 19, of up to 20% of the costs of the project for small

businesses employing less than 50 people.

Medium sized businesses can receive funding of up to 10% towards the project cost

or 20% if regulated by De Minimis, but no more than equivalent of EUR200,000

around £175k (official exchange rate as of February 2018).

2.4.3

The Small Grant Scheme is a grant fund that has been in operation in the New Anglia

region since August 2013. The programme is currently part of New Anglia Business

Growth Programme supported by £12.48m from the European Regional

Development Fund. It provides grants between £1,000 and £25,000 to local

businesses across Norfolk and Suffolk.

The programme supports SMEs through the provision of grants to assist them to

grow and expand, employ new staff, introduce new products and services, improve

productivity or efficiency, increase their competitiveness etc.

Small businesses employing less than 50 people may apply for up to 20% of the

costs of the project under General Block Exemption Regulations (GBER) Articles 14,

17, 18 and 19. Medium sized businesses may apply for funding of up to 10% towards

the project cost or 20% if regulated by De Minimis regulations (EUR 200,000 is a

maximum amount of all De minimis aid a business may receive over a 3 year fiscal

period). SMEs based in an Assisted Area may apply for an additional 10% of funding.

3. TERM AND TERMINATION OF ABA

3.1

This ABA, once signed by both parties, will be deemed to have come into effect

on 7^th July 2014 and will continue in place until 31 March 2021 unless it is

terminated in accordance with the other provisions of clause 3. The ABA can

be extended beyond 31 March 2020 if agreed by both parties. There will also

be a ‘light touch’ review each year to allow discussion of progress reported to

the Audit and Risk Committee and early discussion of any changes necessary

in the changing landscape of LEP funding and programming.

3.2

Subject to clauses 3.3 and 3.4 if, at any time during the term of this ABA, either

party wishes to bring the ABA to an end, the following consultation and notice

procedures shall apply:

(a) the party proposing to terminate the ABA must consult the other party about

the termination in good time and in any event, at least, nine months before the

proposed termination of the ABA,

(b) the party terminating the ABA must give at least six months’ written notice

to the other party,

3.3

If a party to the ABA commits a material breach of any term of the ABA, the

other party may send a written notice to the breaching party, setting out the

nature of the breach and the required remedy and giving not less than three

months’ notice to remedy the breach. If the breach has not been remedied at

the end of the notice period, then the party who served the notice may serve a

further notice of two months, terminating the ABA.

3.4

Where the operative period for a Programme comes to an end or the funding

under the Programme ceases, this ABA shall terminate in part in relation to that

Programme.

3.5

In any circumstance where this ABA terminates in whole or in part, and without

prejudice to any other rights or remedies the parties may have, the parties must

use their best endeavours to have in place, from the date of termination of the

ABA or the relevant part of the ABA, arrangements for transferring existing

agreements and liabilities, for example under the various grant and loan

agreements that SCC will have entered into on behalf of New Anglia LEP, to a

replacement Accountable Body.

3.6

Where it is not possible for existing agreements and liabilities to be transferred

(or it is agreed that they shall not transfer) and as a result SCC retains some or

all of such liabilities, New Anglia LEP shall indemnify SCC against those

liabilities and shall provide sufficient funding for SCC to meet those liabilities

e.g. under grant and loan agreements.

3.7

New Anglia LEP shall indemnify SCC against any financial costs or liabilities

incurred, including but not limited to redundancy costs, on the termination of the

ABA in whole or in part except where termination takes place under clause 3.3

as a result of an un-remedied breach by SCC.

AGREEMENT

4. ROLES AND RESPONSIBILITIES OF NEW ANGLIA LOCAL ENTERPRISE

PARTNERSHIP

New Anglia LEP shall:

4.1.

Comply with all the regulations and guidance notes from the Ministry for

Housing, Communities and Local Government, Cabinet Office, Department for

Business, Energy and Industrial Strategy, and other relevant funding bodies

including but not exhaustively: state aid regulations, relevant departmental

funding criteria and the wider regulatory framework for the funds included in this

agreement ensuring that funds are used appropriately, and in a manner that is

consistent with the contents of any offer letters from government.

4.2.

Decide the economic growth priorities and strategies for the Programme and

the overall grant allocations in line with the initial submission and the funding

agreement for the Programme.

4.3.

Approve and submit to SCC an annual delivery plan of planned expenditure

and outcome and output targets - this may take the form of a copy of any such

report sent to the LEP Board.

4.4.

Strive to achieve all the outputs and key indicators set out in the delivery plan

for the Programmes and produce an annual progress report as required by the

funding bodies.

4.5.

Develop close working links and joint working arrangements with SCC, other

Local Enterprise Partnerships and other relevant bodies as appropriate.

4.6.

Set up appropriate consultation procedures, business involvement and

membership of New Anglia LEP’s Board to facilitate the development and

implementation of the Programmes.

4.7.

Have in place appropriate processes with funding guidelines and criteria and

make decisions about the approval of projects in accordance with the guidelines

and criteria. This is subject to the requirements of the relevant funding body

and should be in line with the regulatory and legal framework for the funding

after considering any recommendations from SCC. This will include an

appropriate risk appraisal and management process.

4.8.

Agree with SCC and implement policies and procedures for ensuring value for

money in the use of funds, whether by New Anglia LEP or by the organisations

which are funded through the Programmes. This will include the establishment

of and compliance with appropriate procedures relating to:

(a) competitive tendering and procurement where New Anglia LEP is

purchasing goods, services or works. and

(b) the processes to be followed by organisations funded through the

Programmes, for example, by requiring competitive tendering of goods,

services or works funded through the Programmes where appropriate

In relation to (a), if SCC procures and enters into contracts for goods, services

or works for New Anglia LEP, then SCC procurement procedures will be

followed. New Anglia LEP is a contracting authority for the purposes of the

Public Contracts Regulations (these are subject to change in 2015), so if New

Anglia LEP procures and enters into the contracts then it will do so in line with

relevant EU procurement rules and the internal procedures that are to be

established under this clause.

4.9.

Ensure that proper procedures exist for the regular monitoring of progress in

implementing the Programmes.

4.10.

Evaluate the impact of the Programmes through appropriate measures, if

necessary agreed with SCC, to comply with relevant funders’ requirements.

4.11.

Work with SCC in drafting and developing written procedures and appropriate

management, administration, finance and IT systems for the Programmes

covered by this ABA. New Anglia LEP will develop its own procedures which

are outside the scope of this ABA.

4.12.

Ensure that both New Anglia LEP and, to the extent that it is appropriate to the

nature of the relevant project those organisations to whom funding is provided,

have in place effective policies and procedures to:

ensure equality of opportunity and diversity in employment of staff and

delivery of services. These should demonstrate how all parties will

comply with relevant equality legislation and respective Codes of

Practice. Evidence of the implementation of this policy shall be kept

available for inspection.

II.

ensure that all relevant legislation and guidance on state aid is complied

with.

III.

ensure open and transparent commissioning processes are used

including for the purchase of goods and services which adhere to

relevant legal procurement and commissioning processes. This

includes EU procurement rules where relevant.

IV.

ensure the health and safety of staff and service users in compliance

with relevant Health and Safety legislation.

ensure where the project involves work with children and young people,

projects should have in place procedures for ensuring compliance with

relevant Children’s and Young Persons legislation.

VI.

ensure that, in the event of SCC receiving a complaint about New Anglia

LEP or a constituent project, the relevant party/ies is/are required to co-

operate fully with them in the investigation and resolution of the

complaint, including complying with any recommendations arising from

such investigation.

VII.

respond to requests for information under Freedom of Information Act

1998 (FoI) and related legislation. If New Anglia LEP or SCC receive an

FoI request both parties shall provide such information as is required by

them to enable a full response to be made to the request within the

statutory time limit. It is accepted that New Anglia LEP is exempt from

FoI in the body of the legislation but the Assurance Framework issued

by BEIS makes it a requirement that New Anglia LEP complies with the

spirit of this legislation and New Anglia LEP confirms that it will do so. It

should be noted that applicants are currently advised that information

will be treated as commercially sensitive in the event of an FOI request

being received, although this cannot be guaranteed until the individual

circumstance arises.

VIII.

comply with The General Data Protection Regulation.

4.13.

Co-operate with SCC or any external or internal auditors appointed and to make

available for inspection all documentation and provide responses to any queries

raised.

4.14.

Work with SCC to ensure value for money and probity are achieved in the

delivery of the Programmes and by individual projects.

4.15.

Ensure that any assistance given to an organisation by New Anglia LEP is

within the limits laid down by any obligation of the European Union or

appropriate funding organisation, and that all relevant procurement procedures

are met; should this not be the case, there will be reduction in, or repayment of,

grant.

4.16.

Make arrangements for the effective monitoring of individual projects within

procedures agreed with SCC and make any necessary changes to achieve

targets and the overall Programme.

4.17.

Ensure that accounts are maintained by relevant officers (particularly the New

Anglia LEP Financial Controller) from New Anglia LEP.

4.18

Permit SCC to use the funds allocated to the LEP to carry out its Accountable

Body role, including the allocation of loan and grant funding to an SCC account

and shall permit SCC to retain such funding until such time as SCC’s obligations

under this ABA and any grant or loan or other agreements made as a result of

the ABA or SCC’s role as Accountable Body are discharged or transferred to a

third party”

4.19 Work with SCC on the creation of the local Assurance Framework and adhere

to its requirements.

5. ROLES AND RESPONSIBILITIES OF THE ACCOUNTABLE BODY - SCC

SCC, through the Section 151 Officer, will have responsibility for ensuring that a local

Assurance Framework is in place, that it meets the standards set out in the LEP

Assurance Framework Guidance document, and that all funding decisions are made

in accordance with it.

SCC shall:

5.1

Ensure decisions and activities of New Anglia LEP conform with legal

requirements with regard to equalities, social value, environment, State Aid,

procurement

5.2

Ensure (through its Section 151 Officer) that the funds identified in para 2.2 are

used appropriately.

5.3

Ensure that the Assurance Framework is adhered to

5.4

Maintain the official record of New Anglia LEP proceedings and holding copies

of all relevant LEP documents related to LGF funding.

5.5

Having regard to its role as Accountable Body for the Programmes, have

responsibility for agreeing or challenging the decisions of the LEP, in the

context of legal, regulatory or funding criteria, when New Anglia LEP are

approving projects. To avoid doubt, as SCC is the Accountable Body, it may,

acting reasonably, decide that it is not appropriate to implement a New Anglia

LEP decision where:

•

it is unlawful

•

It contravenes relevant grant or funding guidelines or criteria

•

It is in breach of financial regulations

•

It is in breach of the Assurance Framework

•

It is in breach of any other relevant terms, requirements or policies imposed

on SCC or New Anglia LEP

or there is a significant risk of this. Where SCC considers this to be the case,

it will consult with New Anglia LEP to consider what amendments may be made

in order to address SCC’s concerns and where it is not possible to agree an

approach, the matter will be referred to dispute resolution in accordance with

clause 7.2.

5.6

Ensuring that there are arrangements for internal audit of funding allocated by

New Anglia LEP, at least equivalent to those in place for Local Authority spend.

5.6.1

Act as accountable body for the Programmes. The tasks undertaken by the

Accountable Body to fulfil this role are set out in the Assurance Framework, and

include financial management and overview of spend across all Programmes.

5.6.2

Jointly with New Anglia LEP, ensure that value for money and probity is

achieved in the use of partnership funding and that all guidelines and

procedures as issued by funding bodies are complied with.

5.6.3

Recognise the demands and priorities of New Anglia LEP’s plans in setting its

corporate priorities.

5.6.4

Ensure that proper procedures exist for the regular monitoring of progress in

implementing the Programmes. Evaluate the impact of the Programmes

through appropriate measures, if necessary agreed with SCC, to comply with

relevant funders’ requirements.

5.6.5

Collate and submit to the relevant monitoring body (in the case of City Deal this

is currently: MHCLG and Lancaster University as the intermediary body) interim

and final claims for relevant grant on behalf of New Anglia LEP, receive

payment of funds and arrange an independent audit of the final grant claim and

internal audit of the Programme.

5.6.6

Ensure that suitable financial and accounting procedures are in place for the

Programmes and ensure that arrangements are in place for the audit of the

claims and all systems and procedures including the approval and appraisal

processes of projects. Report any suspected irregularity or probity issues to the

relevant funding body, the New Anglia LEP Board and the Council.

5.6.7

Co-operate with New Anglia or any external auditors appointed and to make

available for inspection all documentation and provide responses to any queries

raised.

5.6.8

Be responsible for achieving the best return on New Anglia LEP funds in line

with an acceptable risk policy agreed by both parties through the Audit and Risk

Committee. New Anglia LEP will provide a funding profile to enable this to be

pursued effectively. SCC will sit on the Audit and Risk Committee which has

oversight of all the programmes within New Anglia LEP’s remit. SCC will

identify one member of staff within finance, to cover off financial and funding

issues.

5.6.9

In agreement with and with all necessary assistance from New Anglia LEP

make the following arrangements:

in certain pre-agreed circumstances arrangements for the provision of

effective management and administration support to New Anglia LEP.

II.

make use of a grant and/or loan agreement and ancillary documents to

enter into a legally binding agreement with funding recipients in relation

to the Programmes.

III.

prepare and submit any financial and non-financial information required

from New Anglia LEP by the funding bodies.

IV.

maintain any required financial management systems and supporting

documentation up to the end date of the Programmes, and then to

transfer all such documents to an appropriate storage location as

required by the relevant funding body

authorise the release of funding in accordance with the requirements of

the relevant funding body.

5.10 Work with New Anglia LEP in drafting and developing written procedures and

appropriate management, administration, finance and IT systems for the

Programmes covered by this ABA. New Anglia LEP will develop its own

procedures which are outside the scope of this ABA.

6. PROGRAMME MANAGEMENT

New Anglia LEP will make all arrangements for effective management and

administration support to the Programmes as necessary. SCC will be paid for support

provided to New Anglia LEP in support of the roll out of funding that has been awarded

between 7^th July 2014 to 31 March 2021 to support the delivery of the Economic

Strategy. This will include a post for finance. SCC will be reimbursed for the support

it provides to manage and administer the individual Programmes. Where possible

some or all of the cost for conducting the accountable body role will be agreed with

SCC and included in the bid submission(s) on behalf of New Anglia LEP. This is likely

to take the form of a 7% ‘top slicing’ of the programmes received by New Anglia LEP

to support resourcing of the Accountable Body role and appropriate staff costs within

New Anglia LEP. Any alternative arrangements for the provision are to be agreed by

the New Anglia LEPs Board following consultation with SCC.

7. MISCELLANEOUS

7.1 AMENDMENTS

If either party wishes to amend this ABA during its term, the party shall submit details

of the proposed amendment in writing for consideration by both parties with a

commitment that agreement be reached within 21 days and where agreement to the

amendment is not reached in this period, the issue shall be referred for dispute

resolution in accordance with clause 7.2 below.

7.2 DISPUTE RESOLUTION

Both parties shall attempt to resolve any disputes or differences by negotiating in good

faith, in the first instance through day to day consultation.

If they fail to resolve a dispute within 21 days from it arising, either party may refer the

matter for determination to a meeting of the following representatives of the parties:

• SCC as Accountable Body - Assistant Director Strategic Development, or

alternative representative of the Accountable Body and

• New Anglia LEP - Chair of Board, or Chief Executive

If the dispute is not resolved within 28 days of its referral to the above group, then the

parties agree to identify, within 14 days thereafter, a suitable independent third party

as an expert or as a facilitator of consideration of the dispute. The identity of this third

party may vary in order to provide the parties with flexibility to select a party who is

appropriate to the particular circumstances of the issue but by way of example, this

may include another local authority, legal Counsel or a mediator. Once the parties

have agreed on a suitable third party, they will refer the matter to that third party within

14 days of agreement and will use their best endeavours to ensure that the dispute is

considered as quickly as possible thereafter and in any event, within 21 days of

referral. The parties will have the flexibility to decide on the terms of reference of the

relevant third party.

7.3 FAILURE TO DELIVER

SCC will have the right to take appropriate action in respect of a funding recipient, in

accordance with the terms of the funding recipient’s grant or loan agreement, including

withholding of payment as a result of any breach of the terms of the grant or loan

agreement and/or failure to take account of the regulatory or legal framework including

state aid guidance. Payment may be resumed once the failure has been remedied.

7.4 WAIVER

The failure or delay of either party in exercising any right or remedy in response to the

action or lack of action of the other party under the terms of this agreement will not

prevent them doing so at a later date nor operate as a waiver.

7.5 CONFIDENTIALITY

Each party agrees to keep confidential such information as it may acquire from time

to time in relation to the other party where such information is by its nature confidential.

Neither party shall use the other’s confidential information for any purpose other than

to perform its obligations under this ABA. This shall not apply if both parties agree to

its disclosure or where disclosure is, in the opinion of the discloser, is necessary to

comply with the Data Protection Act 1988 or Freedom of Information Act 2000.

7.6 GOVERNING LAW AND JURISDICTION

This ABA is intended to be legally binding and shall be governed by and construed in

accordance with English law and, without affecting the dispute resolution procedure

set out in clause 7.2, each party agrees to submit to the exclusive jurisdiction of the

courts of England and Wales.

7.7 NO PARTNERSHIP

Nothing in this ABA is intended to, or shall be deemed to; establish any partnership or

joint venture between the parties.

7.8 SIGNATURES

By signing this ABA both parties have agreed to the terms and conditions set out in

the ABA (including contribution to costs) under which SCC will undertake the

Accountable Body role.

Signed for and on behalf of

New Anglia Local Enterprise

Partnership by:

…………………………………………………..

Chief Executive of New Anglia LEP (Chris Starkie)

Signed for and on behalf of

Suffolk County Council by:

………………………………………………….

Authorised Signatory