Frequently Asked Questions

1. What is a small and medium sized enterprise or business (an SME)?
2. What is the definition of a 'returner' within a European Social Fund project?
3. What is N+2 and its practical implications?
4. Should we use the SEP logo in project promotion?

1. What is a small and medium sized enterprise or business (an SME)?
An SME is an enterprise which employs less than 250 people; has an annual turnover of less than €50m and/or balance sheet assets of less than €43m; and has no more than 25% of its capital or voting rights owned by a larger firm or public body.

2. What is the definition of a 'returner' within a European Social Fund project?
For ESF projects, returners are defined as "people (ie women or men) returning to the labour market after two years or more out of the labour market to care for children or other dependants".

3. What is N+2 and its practical implications?

N+2 aims to ensure that Programmes spend the money at an even rate not endloaded as has tended to be the case in the past.

• The Programmes have annual budget allocations and N+2 means that we must ensure that we spend each years allocation by the end of the second following year. Any money that is not spent will be lost to the Programmes.
• Managing the finances of the Programmes is more important - and more complicated than in the past. The main responsibility for this will fall to SEP Ltd and the Programme Implementing Committee for Objective 2 and the Programme Monitoring Committee for URBAN II.
• Obviously it is in everyone's interest to prevent a loss of funds to the Programmes and there are a number of things that you as project sponsors can do to help us:
  • making accurate forecasts of the total funds that you require at application stage and accurate estimates of when you will spend and claim the money
  • trying to prevent slippage and underspend in your project and most importantly notifying us as early as possible if your project is slipping or underspending
  • claiming regularly and accurately
  • being honest about your requirements for funds at the start and about the progress of your project. It is vital that you do not overbook money which you will not use this is preventing other projects from taking up the opportunities and could mean that the money is lost to a Programme entirely
  • the new compliance rules will be more strict than in the past and SEP Ltd staff will be contacting you about these issues as soon as your claims deviate from the profile in your application.

4. Should we use the SEP logo in project promotion?

• The Scottish European Funds logo (and appropriate wording) should be used to comply with publicity requirements.
• You are of course welcome to use the Strathclyde European Partnership logo as well.