ALLOCATION RULES FOR THE SOUTH ICELAND DEVELOPMENT FUND

The South Iceland Development Fund is a competitive fund. The fund's role is to support cultural-societal, business development, and innovation projects, as well as other projects that align with the South Iceland Regional Strategy (Sóknaráætlun Suðurlands) and promote positive societal development, strengthen the pillars of culture, increase the region's competitiveness, and promote sustainability and positive environmental impacts. The fund is divided into two categories: Culture and Society and Business Development and Innovation.

The management and responsibility of the Development Fund lie with the Association of Municipalities in South Iceland (SASS). The SASS board acts as the allocation committee according to the contract regarding the South Iceland Regional Strategy. For the evaluation of applications, the board appoints two expert councils, one for culture and society and another for business development and innovation. The expert councils review applications and submit proposals to the board.

1.       When evaluating applications, the information provided in the application and accompanying documents is taken into account. Applications must be filled out and submitted electronically according to the instructions on the SASS website. An application must include:

• A clear project description
• A project and time schedule
• An itemized cost and financing plan

An application that does not meet the minimum requirements will not be taken for substantive review. When evaluating applications, consideration shall be given, among other things, to whether the project promotes equality, accessibility, and diversity in society. SASS reserves the right to define whether an application is considered a culture and society project or a business development and innovation project.

2.       Those who can apply for a grant are legally competent individuals and other legal entities domiciled in South Iceland. Institutions, public limited companies, and organizations majority-owned by the state or municipalities should generally not be the leading party in projects applying for a grant. However, such parties may apply for project grants provided the projects involve novelty or collaboration. Municipalities or operators of community centers and cultural institutions can also apply for grants for specific projects or events.

3.       Applicants are promised confidentiality regarding their applications, but a list of grantees, project titles, grant amounts, and total project costs is published publicly.

4.       The applicant must have submitted a progress and/or final report for previous grants before applying for a grant for a continuation project or a grant for new projects.

5.       The project period, or the part of the project that is funded, should generally not exceed one year. In the case of long-term projects, the phases of the project must be detailed, and a grant should only be requested for the part scheduled to be completed within 12 months.

6.       As a rule, applications are advertised once a year, followed by allocations. It is permissible to advertise for applications again if special circumstances require it. A project that receives a grant must be completed by December 1 of the following year, with a maximum postponement until June 1 of the year after that. Projects that remain uncompleted within 12 months are canceled unless a request for an extension has been received before that time.

7.       A contract is made for every grant allocation. If a contract has not been signed with the grantee 6 weeks after the announced allocation, the grant allocation is canceled.

8.       Grant payments shall generally be:

a) Grants ≤ 1,000,000 ISK: 50% paid in mid-January, 50% upon final report.

b) Grants > 1,000,000 ISK: 40% paid in mid-January, 60% upon final report.   The prerequisite for payments is that the submitted progress or final report has been approved (see further instructions and rules on the submission of progress and final reports on the SASS website).   9.       Once the allocation has been announced, it is a final decision. It is not possible to request a re-evaluation of individual applications.

10.    By applying to the Development Fund, the applicant confirms, with reference to EU Regulation No. 1407/2013 on de minimis aid, that public support for the project does not exceed €300,000 in total over a three-year period for a company, including the support applied for here.

11.       If a project is not fully funded, the project plan must be revised in consultation with SASS. A change to the project plan may involve completing only part of the project, a part of the project that SASS decides to fund, or making changes to project components or financing to align with the grant amount and the project's objectives. There is no formal requirement for matching funds. However, the application must include a clear and credible financing plan. SASS may request confirmation of financing before a contract is made.

12.    Review: These allocation rules shall be reviewed annually.

13.    The allocation committee is obliged to destroy application documents within 6 months after the allocation has taken place.

14.    Responsibility and competence: Those sitting on the allocation committee shall observe the rules on competence (conflict of interest) during decision-making and step down if existing circumstances are likely to diminish confidence in impartiality when selecting projects. When evaluating incompetence, the provisions of the Administrative Procedures Act No. 37/1993 and Article 20 of the Local Government Act No. 138/2011 shall be taken into account. If the relevant committee member is an employee of an institution or company and an application from employees of the same institution or company is under consideration, it must be evaluated how close the connections are with those employees and/or managers of the relevant institution. These connections do not necessarily lead to disqualification. Committee members are responsible for identifying circumstances that cause them to be disqualified from discussing applications.

Eligible Costs

A single grant from the fund can be a maximum of 2.5 million ISK. An application for an amount higher than 2.5 million ISK is not considered satisfactory according to the allocation rules and is therefore rejected without substantive review. Any business development and innovation project or a similar project by the same applicant can receive a grant a maximum of three times, or a maximum of 6 million ISK over a three-year period. During allocation, efforts shall be made to ensure a diversity of projects and an even distribution of grants across the region. When evaluating applications, consideration shall also be given to ensuring that individual projects do not take up a disproportionately large share of the fund's disposable income.

The following guidelines apply to eligible costs:

Salary and salary-related expenses

Only the time worked on the project will be considered. When evaluating the work contribution, each hour of work shall be calculated at 6,200 ISK. Timesheets must be kept and are a prerequisite for payment.

Travel and meeting costs

An account must be given of all trips with an overview, both international and domestic, stating the purpose of the trips and a travel cost estimate.

Other eligible costs

Eligible costs can include, among other things, costs for the development, preparation, and initiation of new cultural and societal projects. However, grants are not awarded for general operations or permanent investments unless a specific need for them due to the project is heavily justified.

Purchased services

The application must describe purchased services and from whom the services will be purchased. It must be detailed what the purchased service or consulting entails, what the service will cost, and what the defined deliverable is.

INCOME

If the project generates income during the project period, it must be detailed in the plan. This income can be, for example, admission fees at events, merchandise sales, etc. The following is NOT considered eligible cost:

1.       Investment in company shares, costs for detailed zoning/planning work, purchase or renovation of production equipment, land, or housing. General operating costs, e.g., heating, electricity, and long-term rental costs. Licensing fees and certifications.

2.       Costs incurred for the project before the application was sent to SASS.

3.       Registration of cultural heritage, sign making, operations of sports clubs, town festivals, or general gatherings (e.g., concerts or exhibitions without a defined uniqueness), general congregational work, or traditional cultural work within schools. Publishing of any kind, e.g., written material, music, visual material, or spoken or performed language.   Objectives, Emphases, and Evaluation Criteria – Business Development and Innovation

Objectives of grants:

• To support a diverse and robust economy in South Iceland.
• To foster innovation, value creation, and productivity growth in the economy.
• To promote sustainable business development and increased competitiveness of the region.
• To strengthen knowledge, development, and cooperation that fortifies future industries in South Iceland.

Emphases of grants:

Projects that promote innovation, development of new products, services, or processes.

• Projects that support market entry and increased value creation in the economy.
• Projects in the fields of green energy, circular economy, sustainability, and environmental solutions.
• Projects that strengthen food production, creative industries, technological development, and the knowledge industry.
• Projects that support the innovation and initiative of young people and first steps in job creation.
• Projects that involve collaboration between companies, institutions, the academic community, or municipalities.
• Projects that promote increased knowledge, research, or participation in domestic and international collaborative and competitive funds.
• Projects that have positive societal impacts and promote inclusion and diverse opportunities for employment participation.

Evaluation Criteria

When evaluating applications, the following evaluation criteria and their weightings are used. Applications are evaluated based on a comprehensive professional assessment considering project quality, feasibility, societal impact, innovation, and connection to the objectives of the South Iceland Regional Strategy.

Each evaluation criterion is rated on a scale of 1–10. The score is multiplied by the weight of the respective criterion, and the combined result forms the total score of the project.       Evaluation Criteria                                                                              Weight

  1.       Description of the project                                                  15%

2.       Project and time schedule                                 10%

3.       Cost plan                                                                               10%

4.       Connection to the South Iceland Regional Strategy      25%

5.       Collaboration and competency                                        10%

6.       Novelty and/or innovation                                 15%

7.       Job creation                                                                          15%

Projects must meet the objectives and conditions of the relevant category of the South Iceland Development Fund.

Applications are evaluated according to the fund's evaluation criteria, and the total score is determined on that basis.

If an application receives a score of 0 in any of the following evaluation criteria, it is considered not to meet the fund's minimum requirements:

• Project description, objectives, and expected results
• Project and time schedule
• Cost plan and financing

Objectives, Emphases, and Evaluation Criteria - Society and Culture

Objectives of grants:

• To strengthen cultural activities, artistic creation, and creative industries in South Iceland.
• To promote increased resident participation in culture and the arts, improved access to cultural activities, and the strengthening of the community throughout South Iceland.
• To support projects that foster inclusion, cooperation, sustainability, quality of life, and the dissemination of the region's cultural heritage.

Evaluation Criteria
When evaluating applications, the following evaluation criteria and their weightings are used. Applications are evaluated based on a comprehensive professional assessment considering project quality, feasibility, societal impact, innovation, and connection to the objectives of the South Iceland Regional Strategy.

Each evaluation criterion is rated on a scale of 1–10. The score is multiplied by the weight of the respective criterion, and the combined result forms the total score of the project.

Evaluation Criteria                                                                             Weight

1.       Description of the project                                                                  15%

2.       Project and time schedule                                                 10%

3.       Cost plan                                                                                               10%

4.       Connection to the South Iceland Regional Strategy                      25%

5.       Collaboration and competency                                                        10%

6.       Novelty and/or innovation                                                 15%

7.       Cultural and societal value                                                                15%  

Projects must meet the objectives and conditions of the relevant category of the South Iceland Development Fund. Applications are evaluated according to the fund's evaluation criteria, and the total score is determined on that basis.

If an application receives a score of 0 in any of the following evaluation criteria, it is considered not to meet the fund's minimum requirements:

• Project description, objectives, and expected results
• Project and time schedule
• Cost plan and financing