You will have received notification that you can complete these actions on Grantium, but you need to do this on or after 30th June as this is the end of the grant period so it is not possible to complete it before this date. 

There are two stages in Grantium to complete in order to receive your final payment. 

  • Activity report
  • Payment request

PLEASE BE AWARE, THAT IN STAGE TWO (“PAYMENT REQUEST”), YOU MUST SUBMIT A STATEMENT OF INCOME AND EXPENDITURE FOR THE GRANT PERIOD OF 1st APRIL TO 30th   JUNE, CERTIFIED BY YOUR ACCOUNTANT, AND THAT THE FIGURES HERE MUST TALLY EXACTLY WITH THOSE YOU INPUT INTO STAGE ONE, ACTIVITY REPORT. 

You will be asked to explain how you have spent the funds and the difference this has made to your organisation. 

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In the next section, it is very important that you answer all of the points in the prompts, or your submission is likely to be rejected and sent back to you for clarification. We have included some example responses below

QUESTION

* Please also tell us what actions you have taken and plan to take to meet the following conditions:

  • the organisation will exercise pay restraint for at least 18 months from the date of the funding agreement, where legally possible for them to do so, including imposing a pay freeze for all senior staff and 10% pay reductions to pre-Covid-19 pay for those contracted to receive above £150,000 per year
  • the organisation will demonstrate a commitment to increase its organisational diversity and the diversity of its audiences, visitors and/or participants
  • the organisation will demonstrate a commitment to progress towards net zero greenhouse gas emissions by 2050 and reporting against it
  • the organisation will demonstrate a commitment to increase educational/outreach work
  • the organisation will comply with legislation relating to State aid
  • the organisation will ensure they take reasonable steps to protect the heritage assets they are responsible for, in particular their physical estates

An example of a response to this question, tailored to your organisation, could be: 

_________________________________________________________________________________________

PAY RESTRAINT: We will continue to closely monitor and minimise our operating costs & exercise pay restraint. The company directors paid by dividend have frozen their level of income from the company at a bare minimum to cover living expenses at a rate XX% less than pre COVID. All freelance staff will continue to be paid their market rate with no uplifts forecast for the next 18 months. We have no staff earning over £150k per year. 

_________________________________________________________________________________________

DIVERSITY: We continuously seek to expand the diversity of our staff and talent base to reach new audiences.

ADD DETAILS. We regularly update governance policies to provide opportunities for our workforce regardless of background, race, sex, sexuality, or physical or mental disabilities. We operate a best practice equality, diversity & inclusion policy covering recruitment, training, marketing, & communications & will continue to develop this.

ADD DETAILS OF PROGRESS AGAINST DIVERSITY ACTIONS FROM YOUR APPLICATION. 

___________________________________________________________________________

NET ZERO: Since the UK became the first major world economy to set legally binding commitments to achieve net-zero carbon emissions by 2050, we are in the process of establishing a carbon foot printing basis to support our own company’s transition and prioritise carbon reduction options associated with our activities, including:  

  • Reviewing our energy use and exploring how we could switch to a renewable energy supplier
  • Improving energy efficiency of appliances by switching appliances off when not in use, and installing better heating controls
  • Reducing transport use through online meetings instead of travelling to meetings wherever practicable, including a reduction in air travel for developing overseas partnerships and events
  • Reducing business resource consumption by sourcing products and materials from companies with recognised net zero policies and commitments 
  • Segregating and minimising waste for easier recycling and reuse.

THE ABOVE ARE JUST EXAMPLES. YOU CAN ADD ANY DETAILS OF CARBON NEUTRAL ACTIONS YOU ARE TAKING WITHIN YOUR BUSINESS. 

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ADD IN DETAILS OF ANY ACTIVITY YOU ARE TAKING REGARDING EDUCATIONAL OR OUTREACH WORK. EXAMPLES COULD INCLUDE YOUR VENUE BEING USED FOR COMMUNITY PURPOSES, OR WORKING WITH YOUNG PEOPLE. 

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STATE AID: IF YOU ARE A COMMERCIAL ORGANISATION, YOU SHOULD HAVE RESPONDED TO THE RECENT ONLINE FORM CONFIRMING THAT THE GRANT CONSTITUTES A SUBSIDY.
If you are not a commercial organisation you should state this here and say that therefore no subsidy is applicable. 

Example response for a commercial organisation: 

We have received total grant support of £XX from the Cultural recovery Fund across rounds 1 and 2, and a Bounce Back Loan of £XXk, LIST HERE ALL STATE BACKED SUPPORT YOU HAVE RECEIVED. INCLUDES, BOUNCE BACK LOANS, LOCAL AUTHORITY GRANTS, UNSECURED CBILS, BUT NOT JOB RETENTION SCHEME. : a total of £XX public funded or guaranteed finance. This total level of support is within the State Aid limits for both pre-4th March 2021 (EUR 200,000 over three years under the De Minimis Regulation, or EUR 800,000 under the COVID-19 Temporary Framework) and within the Small Amounts of Financial Assistance Allowance limit of 325,000 Special Drawing Right, equivalent to £332,160 at the time of writing, under the new domestic subsidy allowance scheme rules for COVID-19 business grants applicable from 4th March 2021. We undertake not to exceed this limit and have not qualified as an official Undertaking In Distress. 

IF YOUR TOTAL SUBSIDY EXCEEDS £332,160, YOU CAN ALSO REFER TO:

COVID-19 Business Grant Allowance – if limits are reached under the Small Amounts of Financial Assistance Allowance, grants may be paid under the COVID-19 Business Grant Allowance (subsidies granted on a temporary basis to respond to a national or global economic emergency). For the purposes of these scheme rules, this allowance is £1,600,000 per single economic actor. This allowance includes any grants and state aid previously received. 

IF YOUR TOTAL SUBSIDY EXCEEDS THE TOTAL OF THE ABOVE TWO SUMS I.E. CIRCA £1.9million, YOU CAN REFER TO 

COVID-19 Business Grant Special Allowance – up to £9,000,000 per single economic actor if a series of further conditions are met (PLEASE SEE APPENDIX TO THIS DOCUMENT FOR THE CONDITIONS). 

The organisation will ensure they take reasonable steps to protect the heritage assets they are responsible for, in particular their physical estates – NOT APPLICABLE. IF YOU HAVE NO HERITAGE ASSETS, IT IS VERY IMPORTANT THAT YOU STATE THIS, OR YOUR SUBMISSION WILL BE REJECTED, DELAYING YOUR FINAL PAYMENT. 

You will then be asked to explain any differences between your original and actual budgets, and to update the activity plan you originally submitted if there have been any changes. 

You can then complete the declaration and submit the Activity Report. The final payment request is then straightforward but remember you will need the certified income and expenditure statement. 

We hope this helps! 

APPENDIX 1 SUBSIDY CONTROL RULES ADVISORY NOTE

SUMMARY

There are three different levels of subsidy any single economic entity can receive over a rolling 3-year period:

  • Up to £332,160*
  • Up to a further £1.6million
  • Up to £9 million if you meet 6 tests

The Cultural Recovery Grants will be treated as a subsidy if you are a commercial for-profit organisation. If this applies to you, on the recent email from Arts Council England, we believe you should click through to the online form and on the second page select Yes – The award meets all the criteria to be a subsidy. The Arts Council will then contact you again to make sure your total subsidy fits into the above framework, in which case there should be no need to claw back your grant funding. Further explanation of these criteria can be found below. If you have any specific questions, you should contact subsidycontrol@beis.gov.uk 

AM I RECEVING A SUBSIDY?

Our current understanding of the domestic subsidy regime that came into being from 4th March 2021 are that the Cultural Recovery Fund grants will qualify as a subsidy if they are being received by a commercial organisation, because the following four tests are met:

  1. A subsidy must constitute a financial (or in kind) contribution such as a grant, loan or guarantee.
  2. The financial contribution must be provided by a ‘public authority’, including, but not limited to, central, devolved, regional or local government.
  3. The award of the subsidy must also confer a benefit on the recipient in the sense of an economic advantage that is not available on market terms.
  4. Finally, the subsidy must cause a distortion in or harm to competition, trade or investment

WHAT DO I NEED TO INCLUDE TO WORK OUT MY TOTAL SUBSIDY?

Your total subsidy will include any grants you have received from the public sector be they from central, regional, devolved, or local government. You must also include any government backed lending so CBILS and Bounce Back Loans will quality as they benefit from a government guarantee. 

Rates relief does NOT need to be included in the total, and neither does any benefit from the Job Retention Scheme as this has been deemed by the government not to count as a subsidy. 

WHAT’S THE MAXIMUM SUBSIDY I CAN RECEIVE?

The rules changed from 4th March 2021 as the UK replaced the previous EU State Aid rules. 

Prior to 4th March: You could receive total subsidy equivalent to EUR 200,000 over three years (under the De Minimis Regulation), or EUR 800,000 under the COVID-19 Temporary Framework. 

Post 4th March: There are three different levels of subsidy you are permitted to receive are as follows;

  • Small Amounts of Financial Assistance Allowance – This allowance is the equivalent of 325,000 Special Drawing Rights, to a single economic actor over any period of three fiscal years and includes any subsidy previously received as ‘de minimis’ aid or as Small Amounts of Financial Assistance. As at 27th May 2021 this was the equivalent of £332,160*. You can check an up-to-date figure using the Special Drawing Right calculator
  • COVID-19 Business Grant Allowance – if limits are reached under the Small Amounts of Financial Assistance Allowance, grants may be paid under the COVID-19 Business Grant Allowance (subsidies granted on a temporary basis to respond to a national or global economic emergency). For the purposes of these scheme rules, this allowance is £1,600,000 per single economic actor. This allowance includes any grants and state aid previously received. 

At the time of writing the two above allowances mean that total assistance of £1,932,160 is permitted. If both of the above limits are reached then a third option comes into play. 

  • COVID-19 Business Grant Special Allowance – up to £9,000,000 per single economic actor if a series of further conditions are met:
    • The Special Allowance covers only the applicant’s uncovered fixed costs incurred during the period between 1 March 2020 and 31 March 2022, including such costs incurred in any part of that period (‘eligible period’);
    • Applicants must demonstrate a decline in turnover during the eligible period of at least 30% compared to the same period in 2019. The calculation of losses will be based on audited accounts or official statutory accounts filed at Companies House, or approved accounts submitted to HMRC which includes information on the applicant’s profit and loss;
    • ‘Uncovered fixed costs’ means fixed costs not otherwise covered by profit, insurance or other subsidies;
    • The grant payment must not exceed 70% of the applicant’s uncovered fixed costs, except for micro and small enterprises (for the purposes of this scheme defined as less than 50 employees and less than £9,000,000 of annual turnover and/or annual balance sheet), where the grant payment must not exceed 90% of the uncovered fixed costs;19
    • Grant payments under this allowance must not exceed £9,000,000 per single economic actor. This allowance includes any grants previously received in accordance with Section 3.12 of the European Commission’s Temporary Framework; all figures used must be gross, that is, before any deduction of tax or other charge;
    • Grants provided under this allowance shall not be cumulated with other subsidies for the same costs.

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