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How does the size of the FLAG’s budget affect its organisational capacity to deliver its strategy?

The delivery of any local strategy needs an organisation to manage and implement its actions. In order to be effective this organisation needs to have strong administrative and financial capacity. The EFF regulation limits, as a general rule, the proportion of the budget that a FLAG can spend on administration to 10% of the total public budget allocated to the group (Article 44.5). It is difficult to reduce this proportion as there are a number of essential or fixed human resource and financial costs associated with the delivery of strategies which are common to all groups.
In the case of very small budgets, the administrative costs are therefore likely to be disproportionate to the available resource. FLAGs with a very small budget will not be able to afford the human resources required for efficient administration, let alone higher level strategic functions such as community development, business advice or training. In that case, it will be essential to team up with another existing local body (Leader group, regional development agency, etc.) in order to share the burden of the administrative cost and benefit from their experience (see below). If this is not possible, the 10% limit can, in any case, be exceeded as long as this is specified in the Operational Programme.