UK Shared Prosperity Fund: reporting, monitoring and performance management (3)
This page provides information on reporting and performance management for the UK Shared Prosperity Fund.
Reporting
3.1 The UKSPF has been designed to empower every place across the UK to take the lead in shaping and delivering the Fund. As per the prospectus, DLUHC will require formal reporting on a sixth monthly basis. To support our understanding of progress we will also request summary updates on a quarterly basis from lead local authorities (LLAs).
The questions LLAs will be asked and the data we will collect
3.2 LLAs will provide short, largely qualitative summary updates to DLUHC on a quarterly basis. This will include the following questions:
Summary questions
- Spend to date against the three UKSPF investment priorities and forecast?
- Spend to date and forecast for Multiply (in Scotland, Wales and Northern Ireland)?
- Spend to date and forecast for the Rural England Prosperity Fund (from 2023-24 Financial Year, England Only)?
- Spend to date and forecast for Management and Administration?
- Summary of progress with an overall Red, Amber, Green (RAG) rating of the progress and trend (using drop-downs). Plus short narrative progress summary update (250 words maximum)
- Forecast underspend at the end of the financial year, (capital and revenues totals), and details of how much funding the LLA wishes to reprofile in the next financial year?
- Forward look to provide narrative highlighting any new projects, events, case studies and opportunities for Ministerial visits (maximum 200 words).
3.3 LLAs will also be asked to answer a one-off question, about how they have spent capacity funding. On an annual basis we will also ask LLAs if they have undertaken any evaluation activity to support DLUHC’s evaluation of the programme.
3.4 Summary reporting will be supplemented every 6 months at the middle and end of the financial year, by more detailed questions about projects, outputs, outcomes and expenditure. The additional questions we will ask, and the tier of the programme they will relate to is set out below:
Additional summary reporting questions – end of 2022-23 financial year
3.5 Having asked LLAs to estimate end of year expenditure and likely underspends in their first summary report, the end of 2022-23 financial year report, due on 2 May 2023, will ask LLAs who have said that wish to reprofile underspends into the next financial year to say how they plan to ensure that reprofiled funding can be used as well as the allocation for the next financial year (Max 500 words).
Credible plan
To assess whether LLAs have a credible plan to address underspends at the end of the Financial Year, plans should summarise:
- Amount of funds committed and the profile of that spend.
- Amount of funds allocated, but not committed to projects and the profile of that spend.
- Plan for the allocation of unallocated funds, key milestones re. timing of calls, commitment of funds and spend profiles.
- Risk management i.e., confirmation that plans are in place to manage risks relating to project pipeline and capacity.
Plans must be signed off by the LLA Chief Finance Officer. We will also take into account spending profile of underspends in the Expenditure report.
If places can demonstrate a credible plan as set out above, then they will receive their full Year 2 funding allocation. If, however, LLA plans to re-profile underspend are not credible, Year 2 payments will be staged.
3.6 We have tried to limit the additional questions that we will ask LLAs in their more detailed 6 monthly reports, in line with the principles of local autonomy, decision making and accountability. DLUHC’s approach to performance management is that it should be proportionate, asking only for the information we need to understand delivery progress and satisfy our own duties.
The questions we will ask, and the tier of the programme they will relate to is set out below:
Project level
- Name of Project (projects listed by Investment Priority)
- Project Description – a brief description of the project (max 10 words), for example: Local Business Development Grants.
- New or pre- UKSPF Project – is this a continuation of an existing project with UKSPF funding, or a new project?
- The main UKSPF intervention the project has been set up to support - primary intervention, based on spend
- Location – Project Postcode or Project Delivery Postcode (if applicable). Local Authority Areas that will benefit
- Delivery Lead – name of the organisation delivering project
- Type of Organisation delivering project – for example, VSO, Private Sector etc
- Status – that is, Planned, Live, Finished (completed), Closed (stopped early)
- Reason for closure – if project has closed early rather than being successfully completed
- Estimated total UKSPF budget – UKSPF / REPF budget (if applicable) & Total Budget (from all sources)
- Primary & Secondary non UKSPF funding sources
- Asking for Project Budget means that once listed, project details will only have to be updated when the project ends or if there is a significant change to project objectives (change of intervention) or budget rather than for every return.
Outputs and outcomes
3.7 LLAs will be asked to report on the cumulative achievement of Outputs and Outcomes, using the same template that was used for investment plans (IPs). Cells that were blocked in the IP template are now open to allow LLAs to report the achievement of deliverables that were not planned in their investment plan.
Expenditure profile
3.8 LLAs will be asked to report on actual spend to date, compared with funding allocations. In May 2023 we will ask LLAs to report on expenditure for each intervention from the start of delivery to 31 March 2023, asking for total spend against forecast, (allocation), and capital and revenue spilt. We will also ask LLAs to report any match or third-party funding.
3.9 Management and administration (M&A) expenditure, should be reported on the basis of actual costs. There will be a separate line to account for the spend to date. As per the Prospectus, LLAs can utilise more than their agreed percentage of funding to support M&A in year one, but must record actual spend and by the end of the Programme this must not exceed the agreed percentage.
3.10 The Chief Finance Officer at each LLA must sign off returns to the department, to confirm they are content that what has been provided is accurate and deliverable. Summary reporting at the end of quarters 1 (June) and 3 (Dec, except in year 1) is intended to provide an overview of activity, expected spend and expected underspend and should be signed off on that basis.
Reporting timetable
3.11 The table below sets out the timeline for reporting. Summary reporting will only ask the questions detailed at 3.2. LLAs should continue to collect the outputs and outcomes of their UKSPF spend as benefits continue to be delivered after the reporting period. How we would expect LLAs to provide outputs and outcomes that continue to materialise after 2025 will be set out in due course.
| Reporting Periods | Report Commissioned | Report Due Date | Information Type |
|---|---|---|---|
| Start of programme 22 to 28 February 2023 | 27 February 2023 | 17 March 2023 | Summary report only |
| Start of programme to 31 March 2023 | 3 April 2003 | 2 May 2023 | End of Year full report, to include credible plans to address 2022-23 underspend if incurred |
| 1 April to 30 June 2023 | 3 July 2023 | 1 August 2023 | Quarterly (summary report only) |
| 1 April to 30 September 2023 | 2 October 2023 | 1 November 2023 | 6-monthly |
| 1 October to 31 December 2023 | 2 January 2024 | 1 February 2024 | Quarterly (summary report only) |
| 1 October to 31 March 2024 | 2 April 2024 | 1 May 2024 | 6-monthly |
| 1 April to 30 June 2024 | 1 July 2024 | 1 August 2024 | Quarterly (summary report only) |
| 1 April to 30 September 2024 | 1 October 2024 | 1 November 2024 | 6-monthly |
| 1 October to 31 December 2024 | 2 January 2025 | 1 February 2025 | Quarterly (summary report only) |
| 1 October to 31 March 2025 | 1 April 2025 | 1 May 2025 | 6-monthly and final reporting of the SR funding cycle |
What will we do with the data provided?
3.12 The questions and data requested from LLAs is intended to capture information for three purposes:
- A programme level oversight of the progress of the UKSPF to assure DLUHC, the Accountable Officer, Ministers and Parliament.
- Support evaluation of the Fund, the principles of which are set out in the monitoring and evaluation section and are expanded upon in the evaluation strategy.
- Monitor that UKSPF monies are being spent on the UKSPF priorities, and that the outputs and outcomes delivered are in line with expectations detailed in investment plans.
3.13 All data submission returns will need to be scrutinised and signed off by LLA Chief Finance Officer.
UKSPF Performance management and change process
3.14 The following section sets out the process for a LLA to make changes to their investment plan and their duties to inform DLUHC regarding changes. These sit along LLAs’ existing statutory duties and rules to use public money well.
Triggers for change
3.15 The UKSPF will take a proportionate approach to changing local priorities and plans in line with the responsibilities delegated to LLAs. This means that DLUHC approval will only need to be sought when “material changes” are made to UKSPF investment plans.
3.16 If changes are made but fall beneath the thresholds defined in paragraph 3.20 to be considered “material changes” then LLAs do not need to seek DLUHC approval.
3.17 However, they should provide updates on these changes to DLUHC as part of their regular reporting cycle. This should be via their usual quarterly and sixth monthly reporting cycle.
3.18 If the thresholds at 3.20 were crossed, DLUHC would consider the change “material” and formal approval would be required from the department before a LLA could make the changes.
3.19 Requests for material changes can be made to the department as and when required. DLUHC will set out a template for LLAs to use following the process below.
Material changes
3.20 For the purposes of the UKSPF a ‘material change’ will constitute any of the following:
Material change 1:
A post investment plan approval request for administration costs over the 3 years to exceed the percentage agreed in a LLA’s investment plan.
Material change 2:
A single reprofiling of funding from one investment priority to another (not between interventions) if the change involves moving 30% of the total funding allocation over the 3 years or £5 million whichever is lower.
This change will be benchmarked against the investment plan agreed by DLUHC or against the position agreed as part of a previous material change.
Material change 3
Introduction of a new bespoke intervention.
3.21 The following do not constitute a Material Change and can be reported to DLHUC in the mid-year and end of year monitoring returns.
- Movement of funding between interventions within an investment priority
- Changes in outputs or outcomes as a result of moving funding between interventions within an investment priority
- Movement of funding between investment priorities that does not trigger Material Change 2 and
- Changes to outputs and outcome as a result of moving funding between investment priorities that does not trigger Material Change 2
- Changes to financial profiles to manage underspends as part of year end reporting, except (as mentioned above in paragraph 3.20) when they trigger one of the material changes mentioned above
- Changes to financial profiles and outputs and outcomes as a result of the removal of the restriction on funding people and skills activity in England in financial year 2023/2024
Questions for Lead Authorities to answer as part of change process
3.22 The follow questions will be asked of LLAs as part of DLUHC’s consideration of any ‘material changes.’
All changes
- Has the Chief Finance Officer certified that the change is necessary and deliverable?
- Can you confirm that the local partnership group’s view was sought prior to this change request and confirm they were content?
Request to use more than the agreed total of their UKSPF allocation for administration, post investment plan submission.
- How much additional funding for project management / administration is required to deliver your programme / project?
- What additional funding for management / administration is the lead authority able to provide itself?
- What impact will be increasing management / admin costs have on outputs and outcomes?
Request to move 30% or £5 million or more of total UKSPF allocation between investment priorities
- What alternative intervention and outputs/outcomes, if any, do you now want to deliver?
- Confirm that you have considered the risks and issues that arise from your change of plans, and the management and mitigation of those risks and issues including e.g. risks, public sector equality duty?
- Confirm that you have sufficient capability and capacity to manage the impact of the requested change?
- Confirm that any subsidy / State Aid implications from the requested change have been considered and activity can take place in compliance with these requirements and that funding the amended project will not breach subsidy/State Aid law.
3.23 Material change requests will be assessed and responded to as quickly as possible by the UKSPF team. Further details on the format of the collection of this data from lead authorities will be set out in due course, in advance of the first formal reporting deadline.
3.24 The Fund’s ethos and design is intended to give LLAs flexibility and responsibility in delivering. However, there are some changes that the department would not consider:
- In year requests to increase the amount of revenue funding (RDEL) and reduce the amount of capital funding (CDEL) to be used in that year. The annual grant determination letters LLAs will receive will set out an RDEL and a CDEL allocation. CDEL funding cannot be converted to RDEL, however the amount of CDEL can be increased by converting RDEL to CDEL.
- Changes, regardless of whether they constitute a material change to annual financial profiles that would result in increased RDEL spend beyond each LLA’s percentage cap, which is set out here in the UKSPF prospectus (RDEL % CAP).
- In Scotland and Wales, requests to move funding allocated for the delivery of Multiply to core UKSPF interventions.
- For LLAs receiving Rural England Prosperity Fund (REPF) allocations, requests to move funding allocated for the delivery of REPF to core UKSPF interventions.
Spend and accounted for: definition and managing local allocations
3.25 As set out at section 8.1 of the prospectus, we will pay each LLA annually for core UKSPF funding (and Multiply funding in Scotland and Wales). In 2022 to 2023, funding will be paid once the local investment plan has been signed off. In 2023 to 2024 and 2024 to 2025, we will pay as soon as possible in the financial year, once reports have been reviewed.
3.26 We expect Fund investment and outputs (for core UKSPF in England, Scotland and Wales, and also Multiply funding in Scotland and Wales) to be achieved in line with each place’s Investment Plan. We reserve the right to withhold, delay and/or alter payment cycles from 2023 to 2024 onwards where there are performance or other issues with delivery.
3.27 This will be subject to LLAs demonstrating in their investment plans and subsequent performance reports that a full annual payment will be spent and accounted for in-year on UKSPF activities, or a credible plan for underspends is agreed.
What counts as ‘spend’?
3.28 LLAs can report spend of their annual UKSPF allocation if that spend is included in the LLA’s accounts for that year. ‘Spend’ includes expenditure invoiced and paid, as well as accrued, in line with financial accounting standards. i.e. all expenditure related to UKSPF activity allocated to the 2022/23 accounts can be allocated to the 2022/23 UKSPF allocation regardless of when payments were made. There is no requirement for funds relating to UKSPF activity to have been defrayed i.e. left the LLA’s bank account in order to be counted against that year’s UKSPF allocation.
To be classed as spend for UKSPF funding must relate to costs incurred by the organisation delivering UKSPF funded activity (project deliverers), including in-house delivery by the LLA.
For example, if an MCA LLA (or LLA acting as the lead for group of local authorities) paid a proportion of its UKSPF allocation to each of the LAs in its area to deliver projects and delegated selection of projects to the individual local authorities:
- The advance funding paid by the MCA to the LAs would not be considered to be spent.
- The funding paid to the LA would be considered to be spent when the LA has paid funds to project deliverers.
If an LLA transfers funds to another local authority to deliver a specific project (the local authority is the project deliverer) the funding paid to the latter would be considered to be spent when it is paid by the LLA to the local authority.
3.30 There is no requirement for LLAs to pay project deliverers in arrears based on actual expenditure. LLAs can chose to pay funding in advance, to a profile, based on actual expenditure or a combination of these approaches depending on the circumstances. Where funding is paid in arrears LLAs should look to reimburse project deliverers as quickly as possible.
3.31 This applies to all UKSPF expenditure – including any payments from a LLA to another local authority, or in-house expenditure.
LLA underspends
3.32 We will consider withholding the next annual instalment until we have received credible plans demonstrating revised delivery to achieve expected targets, setting out how the LLA will utilise underspends in the next year and/or appropriate milestones and spend have been achieved for the previous year (see 3.5 for credible plan requirements). LLAs will need to establish appropriate programme management methods to maximise effective delivery and achieve spend to profile.
3.33 If we have ongoing concerns around future spending plans based on experience of local delivery to date, then we may pay in instalments based on performance, or otherwise delay or withhold future annual allocations.
3.34 No funding will be provided for activity after 31 March 2025, and we will expect underspends in the final year of the programme (2024 to 2025) to be repaid to DLUHC. The future of the UKSPF will be a matter for the next Spending Review, and will benefit from areas being able to evidence delivery, value for money, outputs and outcomes after 31 March 2025.
3.35 As set out in the UKSPF Prospectus, where there are current or emerging operational or financial risks, we may reduce delegation, reduce payment periods or withhold funds. This may also result in more regular reporting requirements in order to release funding in year.
Last updated 11 May 2023 + show all updates
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Added another example that does not constitute material change to the list in paragraph 3.21.
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Changes and clarifications to questions in the reporting template. Updated reporting timetable. Refined and clarified thresholds for Material Changes. What counts as ‘spend’ clarified in greater detail.
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Welsh added
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Added translation