Applications for state funding related to the renewal of legacy information systems are connected to two specific points in the flow, rather than all stages of the process.

Path 1: Application for H2 – Funding for Technical Analysis
Once a project has been scoped at H1, an institution may apply for funding for the next step: analysis, advisory services, and other preparatory work required to determine the appropriate approach. Such preparation may include external specialist consulting services procured through the Financial Management Authority’s framework agreements.

The objective is for the preparation phase to produce clear and actionable information that supports decision-making regarding the next steps.

Path 2: Application for H3 – Funding for Implementation
Once H2 has been completed, an institution may apply for funding for the next step. This requires a sufficient technical analysis, a clear conclusion regarding the selected approach, and a realistic implementation plan covering execution, operational environment, and responsibilities.

It must also be demonstrated that the project concerns a systemically important core government system, that the project exceeds ISK 100 million in scope, and that the institution has both matching contributions and the capability to carry the project forward.

Funding granted at an earlier stage does not constitute a commitment to continued financing. If the analysis or technical approach does not meet the required criteria, the application may be rejected. In such cases, the institution may either revise its materials and reapply or decide to pursue a different path.

If implementation has already commenced, funding is generally not provided.

What Must Be in Place?

The requirements for funding-eligible stages should be clear, concise, and practical.

For H2, the following must be provided:

• what the problem is,

• why the project matters,

• what the next step is expected to deliver,

• and what external work or expertise is required to reach that point.

For H3, the following must be provided:

• the outcome of the technical analysis and the selected approach,

• a clear implementation plan for the next phase,

• the institution’s matching contribution and responsibilities,

• and a cost overview distinguishing between internal and external work.

What Is Generally Not Funded?

Funding is generally not provided for:

• maintaining or extending existing systems without a clear modernization path,

• projects that are unclear or insufficiently prepared,

• projects where the analysis or technical approach does not align with government criteria,

• projects where implementation has already begun,

• nor for H4 or H5 stages.

Financial Scope and Institutional Contribution

When evaluating applications, consideration is given to the scale of the project, its importance, and the level of preparation.

Institutions are expected to contribute their own resources in the form of work, expertise, and, where applicable, financial participation. A supervising ministry may also participate where relevant.

Funding from FJR is therefore intended as a contribution to project financing and does not replace the institution’s responsibility for the project or its continued operation.

Two Perspectives That Must Go Hand in Hand

For every project, both business and technical ownership must be clearly established.

On the one hand, there must be someone who can clearly describe the project’s purpose, impact, and benefits for operations and services.

On the other hand, there must be someone who can clearly describe the technical approach, implementation, data, integrations, and operational considerations.

Projects of this nature rarely succeed if one of these perspectives is missing. It is expected that business analysis and technical implementation are developed together.

Read more about documents required to accompany applications