Form PM3 ( Interim Report2:

		FORMAT OF PROGRESS REPORT
(To be submitted by Grantee with each grant drawdown application, or at intervals no greater than 3 months)
Form PM3(Part 2-Capital)
Project Title:	Scottish Archive Network			Project Ref No:	DG-95-05231
Name of Grantee:	Scottish Archive Network
As stated in the Monitoring Documents referred to in your Grant Contract, you are required to submit to NHMF a Progress Report with each grant drawdown application, or at maximum intervals of 3 months in the absence of an application, reporting on how the project is progressing towards meeting the Approved Purposes. The headings and format of the Report, addressing the principal monitoring criteria, are shown below. These headings and format must be followed, but you may prepare your Report using computer software incorporating spreadsheets as appropriate. All sections (expanded in size as necessary) are to be completed fully on each monthly report. (Use supplementary sheets if necessary). PM forms should be returned in hardcopy and must be completed fully. Failure to do so will delay processing your Grant
Report No:	27		Report Date:			24 July 2001
			Covering Period:			June 2001

1. General Progress/ Programme and Project Objectives

Enter summary report on general progress towards achievement of the Approved Purposes identifying any problems or issues to which NHMF’s attention should be drawn. Note any actions proposed in response to problems or particular areas of risk.

The project remains within budget and is scheduled to be completed on time.

See annex 1 for detailed progress.

See annex 2 for update on special conditions.

The minutes of the Project Board held in June are attached at Annex 3.

The Project Performance Information is now held on the accompanying spreadsheet.

2. Partnership Funding

Enter progress towards securing partnership funds

Source of Funding	Amount expected (A)	Amount received to date (B)	Balance to come A-B)	Date balance expected
NAS	£425,967	£ 90,904	£335,063	Dec 2002
GSU	£703,785	£211,312	£492,473	Dec 2002
	£1,129,752	£302,216	£827,536	Dec 2002
Totals

Explain any changes to sources of Partnership Funding since the last Progress Report

3. Change Control

Enter requests for any material change to the Approved Purposes which have been approved by NHMF since the last Report and advise of any potential requests for such change in the future.

Description of Change Item

Date of request to NHMF

Date of NHMF response

Effect on achievement of Approved Purposes

Effect on Programme

Effect on Costs

Note: NHMF Approval is required for any material change to the Approved Purposes

Report on any effect to delivery of the Approved Purposes of any cost transfer between the principal cost elements stated in your “Notification of Grant”. (Note: no such transfer is to be made between capital and revenue elements, or between VAT and any other cost element, without NHMF prior consent ).

Amount of cost transfer (£’000)	Cost transfer from (cost element):	Cost transfer to (cost element):	Effect on delivery of Approved Purposes
N/A

4. Review of Design Drawings and Documentation

Enter any design reviews or comments received from NHMF or its Project Monitors since your last report

Work element for which Design/Document review has been carried out	Date reviewed	NHMF/Project Monitor’s comments (if any)
N/A

5. Timetable/Programme

Enter progress compared with the agreed Timetable/Programme for key activities

Grant Expiry Date:

Key Activity or milestone	Planned completion date	Actual (or currently forecast) completion date	Variance	Comment
See Annex 1
Overall Project Completion

6. Expenditure on Approved Costs

a) Cost Control

Enter expenditure to date against the key items of Approved Cost (i.e. the costs on which NHMF has agreed to pay the Payment Percentage) compared with that detailed in the pre-commencement documentation. (VAT and Contingencies to be separately identified).

Items of Approved Cost (Principal cost elements)	Approved Costs to completion as agreed at award	Out-turn Costs as currently forecast (A)	Planned costs to date - as submitted with Form PM1 (B)	Actual costs to Date (C)	Variance (C-B)	Balance of costs (A- C)
Staff	£2,170,889	£1,401,212	£1,401,212	£928,088	£-473,124	£473,124
Internet Server	£449,700	£ 412,225	£ 412,225	£139,848	£-272,377	£272,377
Communication	£51,222	£ 34,518	£ 34,518	£24,832	£ - 9,686	£ 9,686
Digitisation	£349,191	£198,750	£198,750	£159,848	£- 38,902	£38,902
Other	£543,500	£421,750	£421,750	£297,320	£ -124,430	£124,430
Contingency	£2,631,805	£112,209	£112,209		£-112,209	£112,209
VAT	N/A
Totals	£6,196,307	£2,580,664	£2,580,664	£1,549,936	£-1,030,728	£1,030,728

Note any significant changes to the apportionment of costs between the principal cost elements prior to their commitment. Note the effect of any such changes and confirm that they will not affect the Approved Purposes including expected quality.

Cost transfer from :	Cost transfer to:	Amount (£)	Effect of Transfer
N/A

b) Cash Flow

Enter the expected timing of expenditure of the total Balance (A-C) calculated above and the funding sources to cover the expenditure

	To date	Next Qtr	2^nd Qtr	3^rd Qtr	4^th Qtr	5^th Qtr	Later	Total to Completion
Expenditure of Approved Cost	Enter Total of C above							Enter Total of A above
Funded by:
NHMF	£1,549,936							£2,580,664
Other source (1)
Other source (2)
Other source (3)
Total Funding (to equal Expenditure of Approved Cost)	£1,549,936							£2,580,664

7. Procurement

Enter the current procurement status of any significant goods, works, or services currently being procured for the project, or awarded since the last Report.

Goods/Works/ Services : brief description

Approx Value

EU procurement Applies? Yes./No

No of tenderers

Date of tender return

Date of award

Selected Contractor/supplier/ consultant

Identify any goods/works/services not awarded to the lowest tenderer and provide reasons why the selected supplier/consultant/contractor offered best value for money.

8. Property Ownership and Possession

Note any evidence provided at the request of NHMF or the Project Monitor.

Property Description and evidence provided	Date evidence provided to NHMF
N/A

9. Insurance

Enter the insurances you have effected:

Cover	Effective From Date	Expiry Date
Employer Liability Insurance	21/10/00	20/10/01
Computer Insurance	21/10/00	21/10/01
Office Insurance: Including Goods In Transit & Officers Liability Insurance.	21/10/00	21/10/01

10. Appointment of Staff (Revenue Elements only, if any)

List the salaried staff appointed (applicable to “Revenue” elements of project only) since your last Report and the total number of volunteers currently employed (if any).

a) Salaried Staff (Note: applicable only to staff whose salaries are included as Eligible Costs in the Approved project.

Position	Date Appointed	Job Description sent to NHMF (Yes/No)	Media in which advert placed	Employment Contract to NHMF (Yes/No)
Curatorial (Casual)	04/06/01

b) Volunteer Staff

The total number of Volunteer staff employed at present is …………9…… (Details are provided with PM3 (Part1)

11. Statutory Consents

Enter the status of the principal statutory consents required to complete the project

Consent Required	Granting Authority	Actual or expected date of consent
Planning	N/A
Listed Building
Scheduled Monument
Others

12. Publicity and Grant Acknowledgement

Enter displayed acknowledgement, press releases, or other publicity issued since the last report:

Description	Date Issued	Approved by NHMF (Yes/No)
Displayed acknowledgement	N/A
Press Releases issued
Publicity issued

13. Photographic Records

Y

Confirm that you are making photographic records of the project Y

14. Special Conditions

Indicate progress towards satisfying the Special Conditions (if any) noted in the Contract:

No	Special Condition	Target Date for compliance	Current Status
	See Annex 2

Name of Grantee: Scottish Archive Network

Address: Thomas Thomson House, 99 Bankhead Crossway North, Edinburgh, EH11 4DX

Signed for Grantee: …Rob Mildren……………………………………………………..

Date: 25/07/01………………………….

Annex 1

Sub Project Reports

1. Online Catalogues project

Progress

Alan Borthwick concentrated on revision of Shetland Archives collection descriptions, focussing on administrative histories of kirk session records. As part of this some sample standard entries were drafted, and circulated internally for comment. Since there so many collections of such records held by the participating archives, but especially NAS, these standard entries should in the long run save some time.

Jenny Cutts drafted some basic entries for Shetland Archive collections, which will need to be supplemented when we return there some time later this year. At the end of the month she began to do some work on Glasgow City Archives in conjunction with Andrew Jackson.

Nicola Mills revised some Orkney Archives collection descriptions in the course of a week’s visit there; and also continued with her work on Aberdeen University Library Special Collections Dept.

Andrew Jackson continued work in Glasgow City Archives, and provided some entries for local authority records, as well as a re-draft of our standard entries for local authority records, which at the end of the month was almost complete.

Alison Diamond, who is able to work on an occasional basis for us, continued work on Stirling Council Archives collection descriptions.

Our casual students employed to convert our older data into our current WeeArkis access databases provided a good quantity of data during the month, most of which was checked over by Jenny Cutts as a quality check by the end of the month.

The NAS/SCAN recruitment board met towards the end of the month, and it is believed that some suitable candidates have been identified, although it may be late in July before we can establish who might join SCAN.

Training and Outreach

Niall Taylor and Alan Borthwick attended a meeting (5 June) with two people from the Centre for Digital Library Research, Strathclyde University, to see if there was any merit in co-operation between SCAN and Scottish library-based projects such as SCONE. It was agreed that we should keep in contact, although as neither party has funds to instigate anything more formal it may be that the link will remain quite loose in the near future. Niall and Alan also attended a National Council on Archives Ad Hoc Network meeting, London, 18 June, at which the general prospect of the main UK archive networks co-operating on implementation of standards etc was discussed. It seems likely that this will bear more fruit in the near future.

Alan Borthwick provided some information about Online Catalogues to 2 visiting archive students, from France and Turkey, 5 June. He also attended a meeting of the Archive Hub Steering Committee, Manchester, 12 June. He attended a Society of Archivists, Scotland meeting, Aberdeen, 29 June, at which he gave a short address on the use made of ISAD(G) within the UK archive networks.

2. Internet Resources project

Progress

11 Knowledge Base entries on property records and sasine abridgements were completed in June but required more quality control and digitisation work than expected. This delayed their completion by about 2 weeks and they will appear in the statistics for July. Milestones Achieved : The 500^th Knowledge Base entry was completed during May 2001

Joanna Baird met with Fiona Edgar from Edinburgh Chamber of Commerce on 1^st June regarding a possible student placement within SCAN during July and August. Fiona agreed that SCAN was suitable to supply such a placement and Joanna then met with a candidate for the placement – Victoria Miller – who was subsequently offered the temporary post. Victoria is a 3^rd year business studies student at Edinburgh University and she will working on a marketing project with specific relevance to Scottish Wills. She will begin her placement on July 2^nd and a workplan was drawn up for her in June.

Joanna Baird attended a meeting with Rob Mildren, Stuart Low and Cathy Black – the SCAN business manager on Friday 29^th June.

John Malden began working for the Internet Resources team on Monday 4^th June on a casual contract. John will be working on Knowledge Base entries and Research Tools for the website for 6 months.

7 days from June constituted annual leave for Joanna Baird.

Training and Outreach
The SCAN website was demonstrated to two archive students on Tuesday 5^th June.

The official launch of ‘North by Northwest’ took place in Inverness on 5 June. Robin Urquhart and Bill Paton from SCAN attended along with some colleagues from the National Archives of Scotland and participating archives. The launch marked the addition of 2 new exhibitions to the website – ‘By Firth and Flow’ and ‘Highland Railways’. Approximately 60 people, including local press, attended the event.

Digitisation
The new digital camera functioned well during June and initial predictions re quantity of images captured were exceeded.

No glass plate negatives were imaged during June due to the high levels of relative humidity prevailing in the camera room, although several test images were made using non archival negatives to test colour balance etc.

Some test images of seals were also carried out successfully.

3. Testaments Project

Digital capture

Digital capture of the Orkney inventories and confirmations (SC11/38/1-8 & 41/1) and Alloa inventories and wills (SC64/42/1-15) was completed. The post-1823 registers currently being captured are: Aberdeen wills (SC1/37/1-76) and Ayr Inventories (SC6/44/1-38). Digital capture of the Edinburgh Testaments, 1514-1829 (CC8/8/1-152) continues.

Recurring problems in the operation of the two Atmel cameras with the dCam software led to lower production of double page images than forecast. These problems are being addressed by the GSU technical team in Germany, and it is hoped that an updated version of the software, delivered on 30 June, will see a considerable improvement.

A number of retakes were made during the month, caused by inaccurate page numbering and poor colour balance.

Concerns were raised with the GSU over the hold-up in workflow caused by the slow rate of quality control of the greyscale images sent to Salt Lake City on tape. Copies of these images are retained on the SCAN server until the tapes are checked and approved. Delay in quality control leads to a disproportionate use of capacity by the greyscale images on the server and has the potential to inhibit production of the colour JPEG images for which the server is primarily intended. These concerns are being addressed and provision made for a more consistent programme of quality control in Salt Lake City.

An estimate from IKM for installing enhanced lighting on the Atmel copy stands was received at the end of the month, and it is hoped that this work will take place when the final two Atmel cameras are delivered in the week beginning 13 August.

The two new GSU volunteers, who are replacing Mr and Mrs Blakely, are due to start work on 27^th August.

Conservation

Work continued on the registers of Edinburgh testaments (CC8/8) and the Aberdeen warrants (CC1/6). The last ten volumes of the Edinburgh testaments (early 19^th century) were paginated by the GSU team.

Peter Dickson was on sick leave for the whole of June, so no further steps were taken to recruit a second preservation assistant.

Editorial

Currently, post-1823 Edinburgh Wills (SC70/4/1-159) and Glasgow Inventories (SC36/48/1-78) are being paginated and indexed. The fall in the numbers of volumes paginated and indexed was due partly to holiday leave taken by volunteers during the month, but mainly to the fact that this stage of the project is nearing completion. After discussion with the GSU Area Manager for Northern Europe it was agreed that the team would undertake index/image linking of the 19^th century registers, to start in July.

All the 19^th century index entries completed so far by the GSU team were amalgamated by Niall Taylor into one database (which has about 130,000 entries). Niall devised a search engine for the database, which will be made available to NAS search room staff at the beginning of July.

Jane Hill continued linking index entries and images for the post-1823 Aberdeen Inventories (SC1/36), and completed 3 more volumes. From her check of pre-1823 Aberdeen Inventories and Testaments (CC1/13/1-9 & CC1/14/1-4) against the warrants (CC1/6) for the same period she concluded that it was not necessary to capture them. Margaret continued work on the selection and numbering of warrants of Stirling testaments (CC21/6), and completed linking of images and index entries (and recording variants of surname and forename spellings) for the first two volumes of St Andrews testaments (CC20/4).

Both Jane and Margaret found that index/image linking was slower than anticipated. For the pre-1800 registers this will continue to be the case, while the index of surname variants is being built up. For the 19^th century registers it is hoped that the participation of the GSU team will considerably increase output.

Training and outreach

Jane attended a training session on the new Scottish Executive performance management system at GRH, and all members of the Testaments team (except Peter Dickson, who was on sick leave) attended one of the two NAS staff Away Days on 19^th and 21^st June.

Two archive students, one from France and one from Turkey, visited the Testaments project during the month, and Hazel answered an enquiry about digital capture from the Notarial Archives of Malta. Digital images of an Aberdeen warrant (CC1/6/7439-7443) were produced for a reader by special request.

Hazel gave two presentations during the month. The first, on SCAN and the testaments, was to the AGM of the Scottish Law Agents Society in Aberdeen. The second, on the management of a digitising project, was given at the annual conference of the Higher Education Digitising Service (HEDS) in London.

At 30 June 221 volumes of the total of 2033 volumes had been captured = 10.8 % of the total

Annex 2

HLF Special Conditions

1.1	Prior to commencing the Works the Grantee will sign and complete all contracts required to enable the Grantee to fulfill the Approved Purposes including all contracts with contractors and professional advisers before the work to which such contracts relate is due to commence. Each such contract shall provide for the provision of the work or services contracted for on terms which do not differ to a material extent (save as provided by this Contract) from the terms (including appropriate provisions for a retention on practical completion) that would be entered into by a reasonably experienced relevant employer engaging parties to provide similar work or services for projects of the size, value, complexity and prominence of the Approved Purposes. Any material divergence from such terms requires the Approval of NHMF.	Fulfilled. The Scottish Archive Network follows all Scottish Executive procurement rules. This has been verified by Mr J Grady, Chief Procurement Officer NAS.
1.2	Prior to commencing the Works the Grantee will sign and complete all contracts required to enable the Grantee to fulfill the Approved Purposes including all contracts with contractors and professional advisers before the work to which such contracts relate is due to commence. Each such contract shall provide for the provision of the work or services contracted for on terms which do not differ to a material extent (save as provided by this Contract) from the terms (including appropriate provisions for a retention on practical completion) that would be entered into by a reasonably experienced relevant employer engaging parties to provide similar work or services for projects of the size, value, complexity and prominence of the Approved Purposes. Any material divergence from such terms requires the Approval of NHMF.
1.3	NHMF may reduce the Grant by such amount as it thinks fit up to an amount which bears the same proportion to the difference between the lowest tender price and the price of the tender accepted by the Grantee as the Grant bore to the original cost of the Approved Purposes if NHMF, in its absolute discretion, disagrees with the reason given by the Grantee for not accepting the lowest tender.
1.4	The Grantee agrees that it shall only accept tenders that it believes in good faith will result in the Approved Purposes being carried out to the standard prescribed by Special Conditions 2 and 9 of this Contract.
2.	The Grantee shall carry out the Works or shall procure that the Works are carried out in a professional manner in accordance with currently accepted best practice in the Information Technology industry. The Grantee will ensure that best practice or proven and widely adopted standards are applied especially in the areas of project management, requirements analysis, system or application, design, testing, documentation, installation and maintenance and in the area of the preservation of digital materials.	SCAN believes that it is carrying out the Works and procuring the Works in a professional manner in accordance with currently accepted best practice in the Information Technology industry
3.	Prior to commencing the Works the Grantee shall secure to NHMF’s satisfaction all necessary planning permissions building consents and statutory approvals.	Fulfilled
4.	Prior to commencing the Works the Grantee shall prepare a detailed cost plan for carrying out the Approved Purposes in a format which has been agreed in advance by NHMF and shall submit the same to NHMF for Approval. Thereafter the Grantee shall spend the Grant and other funds provided for the Approved Purposes only in accordance with the Approved cost plan (“the Cost Plan”). The Grantee must obtain prior written Approval for any changes in expenditure which are not in accordance with the details of the Cost Plan and in particular for movement of funds between the various elements of the Cost Plan.	Detailed cost plan submitted and agreed with the HLF. No changes in expenditure have been made without prior written approval. The budget has been updated following the PID review and a report detailing the variations form the original budget estimates has also been submitted for discussion with the HLF at our next quarterly meeting
5.	Prior to commencing the Works the Grantee shall prepare a draft monthly project report form and a draft monthly cash flow report form and shall submit the same to NHME for Approval. Thereafter the Grantee shall submit signed monthly reports in the Approved forms to NHMF until the Approved Purposes have been fulfilled.	Signed monthly project reports and monthly cash flows are submitted to the HLF
6.	Prior to commencing the Works the Grantee shall submit to NHMF for Approval a revised and updated programme for the Project. For the avoidance of doubt the Programme shall contain details of the works to be carried out at the development stage. The Grantee shall only carry out the Works in accordance with the Approved programme (“the Programme”) or any modification thereof Approved by NHMF.	The Project Initiation Document (PID) was submitted to the HLF as requested. The revised PID has also been submitted and discussed with the HLF
7.	The Grantee will effect and maintain (or will procure the effecting and maintenance of) during the Works construction and project insurance of the project on terms which note the interest of and are Approved by NHMF.	Insurance has been obtained and full details given to the HLF. Any renewal notices will automatically be dealt with by SCAN
8.	Prior to issuing invitations to tender the grantee shall prepare a report on the information and communication technology to be installed at the Property pursuant to the Approved Purposes and without prejudice to the generality of the foregoing the report shall include:-	An ICT report was prepared and the tendering process undertaken as agreed. The ICT infrastructure is now in place and has been paid in full. The next requirement will be to increase the data storage capacity as the digital imaging workflow increases
8.1	a feasibility report
8.2	the specification for the Digital Deliverables
8.3	the design of the system which shall in particular include details of all interactives
8.4	the proposals for the purchase of network infrastructure.
	On receipt of Approval for the report (“the ICT Report”) the Grantee shall prepare invitations to tender and tender evaluation criteria for such works and shall submit the same to NHMF for Approval. Thereafter the Grantee shall issue invitations to tender in accordance with the Approved tender invitations and evaluation criteria.
9.	The Grantee shall carry out the information and communication technology works in accordance with currently accepted best practice in the Information Technology industry. The Grantee will ensure that best practice or proven and widely adopted standards are applied especially in the areas of project management, requirements analysis, system or application specification, design testing, user and system documentation, installation and maintenance and in the areas of the preservation of digital materials.	SCAN believes it has fulfilled and is fulfilling this condition
10.	The Grantee shall submit to NHMF for Approval details of the standards that the Grantee intends to implement.	SCAN has submitted to the HLF its draft cataloguing standards
11.1	Prior to commencing the Works relating to the information communication and technology the Grantee shall submit to NHMF for Approval a report for the safeguarding and enhancement of, and public access to, the Property including without limitation its proposals for:
	a) such testing as may be necessary to demonstrate that the Digital Deliverables and capable of fulfilling the Approved Purposes	Schedule of Requirements for the Supply of Digital Cameras	October 1999
		Information and Communications Technology Requirements	March 1999
		Information and Communications Technology Tender Document	February 2000
		Test plan submitted for installation of ICT equipment	October 2000
		Data Capture Specification for Indexes	November 1999
		Website design specification	November 1999
	b) such evaluation as may be necessary to demonstrate that the Digital Deliverables are capable of fulfilling the Approved Purposes	Evaluation and selection criteria for ICT equipment submitted in evaluation report “SCAN ICT Requirements Tender Report”	April 2000
		Book Cradle Evaluation	July 2000
		Web Site Tender Evaluation	January 2000
		Camera Evaluation for HLF	May 2000
		Resolution Requirements for Testaments	May 2000
		Data Capture Tender Evaluation	December 2000
	c) the preservation and security of all data and other material collected or created in the course of carrying out the Approved Purposes by the keeping of back-up copies of the Digital Deliverables and otherwise;	Weekly backups and daily incremental backups take place for all SCAN information (excluding images)	April 2001
		Uncompressed TIFF images are written to DLT and stored locally	November 2000 (and ongoing)
		Compressed JPEG images are written to the Internet Server where a backup is taken weekly	November 2000 (and ongoing)
	d) the form of licence(s) to be used by the Grantee permitting third party exploitation of the Intellectual Property;	This was included as part of the contract negotiations with the Genealogical Society of Utah. The HLF have a copy of this document July 1999
	e) the form(s) of assignment(s) consent(s) waiver(s) licence(s) or permission(s) to be used by the Grantee for the securing of third party rights in the Intellectual Property;
	f) error correction, maintenance and updating of the Digital Deliverables	Data flow diagram of the digitisation process available May 2001 Proposed data flow for the maintenance of distributed data for the online catalogues available from May 2001
	g) user manuals or instructions and interfaces for the Digital Deliverables and its use.	All manuals received for ICT equipment and standard operation of digital cameras Additional operator manual developed with GSU for the use of the digital camera. ser manual produced in association with the GSU for the installation, maintenance and delivery of digital imaging in June 2000 Guidelines for capture of fonds level descriptions produced by SCAN in September 2000
	Thereafter the Grantee shall submit signed monthly written reports in the form agreed with NHMF and show the progress made in relation to the above matters. The Grantee must obtain prior written Approval for any changes in the proposals which are not in accordance with the Approved reports
11.2	On receipt of Approval of such proposals or monthly reports the Grantee shall implement such proposals in carrying out the Approved Purposes.
12.1	Prior to commencing the Works relating to the information communication and technology the Grantee shall submit to NHMF for Approval a report on the hardware technology to be used with the Digital Deliverables (“the Hardware”) including without limitation its proposals for: (a) such testing as may be necessary to demonstrate that the Hardware is capable of fulfilling the Approved Purposes; (b) such evaluation as may be necessary to demonstrate that the Hardware is capable of fulfilling the Approved Purposes; (c) error correction, maintenance and updating of the Hardware; and (d) user manuals and instructions for the Hardware and its use. Thereafter the Grantee shall submit signed monthly written reports in the form agreed with NHMF and show the progress made in relation to the above matters. On receipt of Approval of the said monthly reports the Grantee shall implement the reports in carrying out the Approved Purposes. The Grantee must obtain prior written Approval for any changes in the proposals which are not in accordance with the Approved reports.	A presentation and report covering the entire ICT requirements for the project was given	May 2000
		Information and Communications Technology Requirements	March 1999
		Information and Communications Technology Tender Document	February 2000
		Test plan submitted for installation of ICT equipment	October 2000
		Data Capture Specification for Indexes	November 1999
12.2	On receipt of Approval of such proposals or monthly reports the Grantee shall implement such proposals in carrying out the Approved Purposes.
13.	The Grantee shall enter into a deposit agreement with a third party Approved by NHMF for all Digital Deliverables and any associated or necessary software and applications and shall thereafter deposit escrow copies of the said Digital Deliverables on a basis to be agreed with NHMF.	Escrow discussed for deposit of digital images. SCAN has a contract clause with GSU to provide mutual restore and backup of digital images	Early discussions held with NCC Follow Up Required
14.	The Grantee shall ensure that all applications and software necessary to access use or present the digital deliverables are transferable to a third party.	Escrow discussed for deposit of any software packages	Early discussions held with NCC Follow Up Required
15	The Grantee agrees that it shall take all reasonable steps to mitigate to NHMF’s satisfaction the amount of VAT payable upon, or to recover the VAT payable upon, or to recover the VAT attributable to, the cost of fulfilling the Approved Purposes. The Grant shall be reduced by an amount which bears the same proportion to the VAT not payable or recovered as the Grant, prior to such decrease, bore to the original costs of the Approved Purposes.	SCAN has fulfilled this condition: VAT is fully recovered.
16	At the end of Year 1 the Grantee is to produce a policy statement to support the extensibility of membership of Scottish Archive Network Limited with no financial implications.	SCAN supports the extensibility of membership of the Scottish Archive Network with no financial implications. Currently there is an interest shown by the Roman Catholic Archdiocese of Glasgow Archives for inclusion
17	The Grantee will effect and maintain (or will procure the effecting and maintenance of) during the Works construction and project insurance for the Project on terms which note the interest of and are Approved by NHMF.	SCAN has fulfilled this condition
18	The documents required to be submitted or provided to NHMF under these special conditions, are required to be submitted or provided by the Grantee only for NHMF’s own purposes in connection with the Grant and NHMF’s approval or acceptance of such documents cannot be taken as approval or acceptance for any other purpose.	This is accepted by SCAN
	19. [Clause to go in here annexing contracts between a Scottish Archive Network Ltd and others]
20	The Grantee shall take account of any representations which NHMF may make with regard to the carrying out of the Approved Purposes in accordance with the Programme, Design, specification, Cost Plan, ICT Report and the contracts referred to in special conditions 1.1. In particular the Grantee shall take account of any representations which NHMF may make prior to the issue of a certificate of practical completion of the Works and shall pass such representations on to the person authorised to sign a certificate of practical completion.	This is accepted by SCAN
21	Without prejudice to the generality of Clause 13.2 of this Contract NHMF may at any time appoint by notice in writing to the Grantee a third party (“the Lead Monitor”) to monitor the progress of the Approved Purposes and additional monitors to advise on specialist matters arising from the implementations regarding the Approved Purposes the Grantee shall take such reasonable steps as may be necessary to comply with the recommendations.	This is accepted by SCAN
22	Prior to commencing the Works the Grantee shall secure to the satisfaction of NHMF all the additional funding required to complete the Approved Purposes.	The additional funding required by the HLF was secured. Budget projections supplied to HLF in March 2001 indicate that the project will complete within budget and with the agreed percentage of partnership funding

Annex 3

Notes of Project Board Meeting

27 June 2001 16.00

Attendees: Rob Mildren (Chair/Secretary), George Mackenzie, Peter Anderson

Apologies: Stuart Low (Minute Secretary)

1	Minutes of Last Meeting and Matters Arising	Action
1.1	The minutes of the last meeting were approved. Progress on the following action points was reported 2.2 RM Has written to Riksarkivet on future use of Arkis and awaiting response 2.3 RM Issue of Project Manager post raised with HLF at the recent monitoring meeting. It was agreed to advertise the post externally and the project could fund the advertising costs 3.1.1 SL Workplan spreadsheet not yet complete. It will be done for the next project board 3.1.2 RM had circulated details of stock jobs currently under consideration 3.1.4 Release of the index to the search room staff was now imminent 4.1.1 SL had placed request for advance drawdown form HLF for the next cameras
2	HLF Correspondence
2.1	The monitoring meeting had been held on 4 June and the feeling of the project board was that it had been very positive and productive.
2.2	During the meeting it was agreed that SCAN would respond immediately on the outstanding issues regarding digitisation policy and budget changes	RM
2.3	It was noted that HLF should have a representative on the selection panel for the Project Manager post
3	Review of Workplans
3.1	Internet Resources sub-Project
3.1.1	Work on the Marketing report for the Scottish Enterprise course had been completed
3.1.2	It was reported that Joanna Baird was now on the steering group for the Scottish Tourist Board on their “Genealogy Tourism Strategy”
3.1.3	New leaflets for the project had been produced and samples were shown to the project board
3.1.4	The sub-project work plans for both June and July were agreed and approved.
3.2	Testaments
3.2.1	Work on index/image linking was now well underway. It was reported that the standard of indexes for those done to date was high. It was proposed that the GSU could be used to cover the bulk of the Sheriff Court images given the high quality of the index entries. This would allow curatorial staff on the team to concentrate on older, more difficult paleographically, material. PDA offered to assist with the Orkney and Shetland material given his special local knowledge.
3.2.2	The conservation staffing position was discussed. There were a number of issues to be resolved. RM will report on the remaining staff budget for conservation originally planned for the project HA will discuss with Linda Ramsay regarding the management of throughput to cover the shortages for sick leave GM will discuss with PSB the remaining issues for taking back into NAS the seconded SCAN staff in conservation	RM HA GM
3.2.3	The sub-project work plans for both June and July were agreed and approved.
3.3	Online Cataloguing sub-Project
3.3.1	RM reported that the casual students had begun work. NT had trained them and they would be working from home with AB checking the work
3.3.2	AB and NT had devised methods to manage the update of the central SCAN database of catalogue entries to maintain consistency and integrity of data entered.
3.3.2	The sub-project work plans for both June and July were agreed and approved.
4	Procurement
4.1	Digital Cameras
4.1.1	As the Atmel cameras had now been successfully installed and integrated into the workflow, the final 2 cameras would now be ordered.
4.2	Cataloguing Software
4.2.1	RM had met with Goran Kristiansson of the Riksarkivet and discussed the SCAN requirements for ARKIS. It was agreed that these could be met with a copy of the database structure based on the data model produced by RA along with the internet asp pages to allow public access and retrieval. RM has written to RA to confirm these details meet the SCAN requirements.	RM
5.	Staffing
	GM reported that the NAS Curatorial board had met and selected sufficient suitable candidates for all the vacancies currently in NAS and SCAN. AB will select the staff for SCAN requirements.	AB
6.	Finance
	SL produced a written report in his absence
7.	User Group
8.	Participating Archives Working Group
8.1	The next meeting will be held on 28 June. The agenda will be decided by PAWG themselves.
9.	Marketing Events & Publicity Dissemination
	Not discussed
10	AOCB
	There were no additional items
11	Date of Next Meeting
	The next Project Board meeting will be held on Tuesday 24^th July at 14.30 in Thomas Thomson House, Bankhead Crossway North, Edinburgh.

RM

23/06/01