2. Guidance Documents

The following principles have been agreed by the Growing Mid Wales Board.

The MWGD funding available for projects is only Capital funding, therefore all eligible costs must meet standard accounting definitions of capital expenditure in accordance with IAS16.  For example:

• Feasibility study costs would not be eligible.
• Costs relating to continuing to explore a range of potential options or solutions would not be eligible.
• Speculative and/or abortive costs relating to an option or a solution no longer being pursued would not be eligible.
• Costs that can be directly attributed to either bringing a capital asset into being or enhancing an existing capital asset would be eligible, if there is a clear and definitive objective underpinning this.  This could include Architects fees, Engineering fees, Other Professional fees including direct Project Management costs.
• Costs should be the incremental costs to the entity that would have been avoided had the capital asset not been constructed, enhanced or purchased.
• VAT relating to eligible costs would not normally be an eligible cost, unless it can be evidenced and certified by a qualified accountant that the VAT is irrecoverable from HMRC.

No Project shall be formally awarded MWGD funding until it has successfully reached the Full Business Case (FBC) stage and has subsequently received approval from the Growing Mid Wales Board.  The award of Growth Deal funding for each Project will also be formalised through appropriate documentation e.g. Grant Funding Award letter, Delivery Agreement etc.

Project Development Costs incurred during the OBC and FBC period may be retrospectively claimed towards overall project costs once an award of Growth Deal funding is formally made, provided they meet standard accounting definitions of capital expenditure.

However, no additional funding is available, and the overall funding envelope remains the same.   No Project shall be able to claim Project Development Costs of any sort for any period prior to the Outline Business Case (OBC) stage.