The missing 20 million. Or is it?

There's something which doesn't quite add up for me here:

Labour has accused the SNP of missing out on £20 million of European funding.

The charge came after Alex Salmond and Labour leader Iain Gray clashed at First Minister's Questions over skills and training.

The row later took a new twist when Labour claimed a Scottish Government bungle had resulted in Scotland missing out on a potential £20 million boost in European cash.

A spokesman for Mr Purnell said London and Cardiff had taken advantage of currency fluctuations to gain the extra cash but Holyrood had not.

"Both the Labour governments in Westminster and Wales have been able to increase their funding available to people losing their jobs but the Nationalists have mismanaged their skills budget so much they are unable to take the extra £20 million available in European cash," said the spokesman.

My understanding (admittedly second-hand) from the procedure regarding EU structural funds in another EU region is that the various governing administrations have to submit projects to be financed; once approved the EU then transfers over the relevant Euros; ie it's not the case of saying: "Here you go Scotland here's your allocation of X amount of Euros to spend as you wish."
If that is the case (and I'd appreciate of anyone can clarify that for me), then the earlier projects have been submitted, then the earlier the Euros will have been transferred and presumably the earlier any compensation re disadvantageous currency rate fluctuations is paid out

If I've got it right, then this from the SNP is misleading:

"Scotland's structural funds allocation was made in euros in 2006 for a seven-year period. It is not the case that we can apply for 'extra' money from the current programme - because exchange rates can fluctuate both ways over such a lengthy period.

The UK government spokesman is not saying that you can apply for extra, but surely that you take advantage of the unfavourable exchange rates to get compensation to ensure the funding of the projects you already have been "awarded"? And, of course, exchange rates can fluctuate, but surely as a self-proclaimed government (as opposed to currency speculators), the SNP should be attempting to get as much benefit from a real position now, rather than second-guessing a hypothetical situation in the future?

"But by allocating such a high proportion of the structural funds available so early in the seven-year period, we are ensuring that this funding takes full advantage of the current position of sterling, and therefore makes a full contribution to the economic recovery programme."

And now I'm really confused. That is surely a contradiction to the previous point?


PS: I wouldn't say that I'm completely economically illiterate, but if I've got it wrong, please just point out the mistakes rather than laughing at me;)