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Supporting People - Supporting Independent Living: Folder 2 - Part 3: Operational Guidance and Part 4: Financial Guidance

PART 4:FINANCIAL GUIDANCE

This section of the final guidance package contains guidance on financial issues surrounding Supporting People. Some of this guidance relates to interim tasks and activities that have to be undertaken in order to arrive at grant and contract values. Other elements of the guidance, such as that on VAT and Procurement, will continue to be relevant after the introduction of Supporting People.

1. From SP3 to Contracts

1.1 Pricing Contracts: Introduction

1.1.1 The purpose of this guidance is to set out the steps needed to record and convert the financial details of eligible funding streams into prices for interim contracts. It takes local authorities from completion of SP3 data gathering to the pricing schedules in the contract. It focuses on the financial content of the contract (contract value) as detailed in Folder 1, Part 2, Section 4, Schedule 2. This information is required in this format for a number of reasons:

• Local authorities require a means of working out the current value of eligible funding going into existing services to ensure continuity for providers of services over the transition to Supporting People.
• The Scottish Executive requires a process which can readily be audited to ensure that all and only eligible funding is transferred into the Supporting People pot. The Scottish Executive can pass over to local authorities the funding identified in this way, but not any other amount.
• Information on payments being made by individuals (charges) also need to be collected and offset against the total value of relevant contracts.

1.1.2 The process involves adjustments to the amounts in the eligible funding streams. Specifically:

• THB is adjusted for inflation relative to the rent year date of the individual provider. That is, if the provider has a rent review date of 1 January, the amount of inflation will be 3/12 of the full rate. Other funding streams are adjusted for inflation on a whole year basis (see paragraph 1.17.2).
• 100% of the amount of identified THB is included in the contract value.
• There will be an adjustment for voids to calculations for all accommodation based housing support services:
  • The amount of THB included in the contract for such services contains an element for voids. As the formula which will be applied to contract values relates to the total number of contracted spaces it will deduct a void rate based on the previous year's actual void rate as notified in SP3 to avoid double counting .
  • Where the void rate for the previous year is unavailable or atypical providers should enter their business plan assumptions in SP3.
  • The number of units used in the calculation of the grant for floating support services is based on the actual number of service users (see paragraphs 1.5.8 to 1.5.11) and therefore no deduction is made for voids. As a result a 0% void rate should be recorded for all floating support services.
  • Applications for pipeline status for accommodation based housing support services were invited in a letter dated 22 November 2002.
  • Information on charging is based on the amount currently being contributed by individuals. How charges are calculated is set out in the Charging Tasks and Activities Guidance. Details of the charging policy are set out in the guidance on Charging and Financial Assessment.
  • As grant and contract calculations are initially based on information available prior to 31 ^st March 2003 it is recognised that this will be incomplete and it is therefore intended that there should be a reconciliation of this information during 2003. This reconciliation will adjust grant and contract values to reflect changes or new data up to 31 March 2003. At the discretion of the Scottish Ministers there may be flexibility to carry forward grant to 2004-5 and in subsequent years.

1.2 Process Overview

1.2.1 Local authorities must be able to show the Scottish Executive that current funding for a service is reflected in the contract value and Supporting People grant value. This will be achieved through the SP3 financial reports produced by the Mapping Supply Database and audit and reconciliation processes (see Step 8).

1.2.2 The steps involved in pricing the interim contracts for Supporting People are set out below:

MAINTAINING, REPORTING AND AUDITING

1.2.3 As well as pricing contracts local authorities will have to collect data on charges that are currently being gathered for each service and convert them into a monthly figure for use on April 2003. This process is set out in the Charging Tasks and Activities Guidance.

1.3 Step 1 - Grouping Services for Contracts

1.3.1 The SP3 process has identified services for supply mapping purposes and gathered the data required for setting up contracts.

Service

1.3.2 A " service" is a readily identifiable building or group of buildings in which a unified support programme, or set of related support programmes is delivered, under the management of one provider; or in the case of floating support such support programmes commissioned in respect of a type of need or related needs. Provider identity should not be the sole organising principle and, consequently, where a provider delivers different support programmes in different geographically unrelated locations it is very unlikely this would constitute a single service. Each service will have its own service specification showing the service delivered and the price. It is intended that, where appropriate, several services may be grouped together within one contract.

Providers

1.3.3 Some provider organisations operate within a group structure. Within the group there may be several independent companies/RSLs, which have separate boards and an independent organisation. Where this is the case, each company/RSL should have a separate contract(s). The requirements for registration of providers within group structures will be determined by the Scottish Commission for the Regulation of Care.

1.4 Step 2 - Apportioning the Eligible Funding Spreadsheets by Supporting People Service

1.4.1 The eligible funding spreadsheets will identify how services have been funded historically. In the majority of circumstances these records will be directly comparable with services identified in the Mapping Supply Database (through the Record ID). However, where there is not a direct comparison between these spreadsheets and the Mapping Supply Database records, Supporting People teams will have to apportion the funding against more than one Supporting People service, or indeed aggregate the funding records for a Supporting People service.

1.4.2 In the majority of cases this will be a straightforward exercise - a Communities Scotland SNAP funded service could, for example, match directly with a service captured and recorded by the Mapping Supply Database and represented by the Record ID. This paper sets out what to do when the matches are not quite so direct. There may be some attribution or apportionment of funds to Supporting People services.

1.4.3 Local authorities are not obliged to use any of the suggested Pricing Reconciliation Worksheets in this guidance. They may devise another method providing it arrives at the same result and provides a suitable audit trail.

1.5 Transitional Housing Benefit Scheme

1.5.1 The THB service level spreadsheet was created in each Housing Benefit authority by virtue of DWP Circular A47/2001. This lists every property (or group of properties) where THB is paid. For each service it sets out the number of units and documents the determined level of THB (for example the amount payable where full THB is allowed).

Determined Level of THB

1.5.2 For the purposes of this exercise, the important information is the level of allowable THB and the total number of units to which that determined amount relates. There is no need to take into account the actual number of people receiving THB in any service, nor the actual levels of their income and benefit. These issues are dealt with at another stage of the process (the Charging Tasks and Activities guidance to be issued shortly) To set the THB element of the price the authority must reconcile every line in the THB spreadsheet with the relevant Supporting People service and record the Record ID. Note that these lines relate to service level awards of THB, not to individuals. Individuals are dealt with in the transitional charging activities guidance referred to above.

1.5.3 The assumption here is that this level of THB has been properly determined by the Housing Benefit section, in line with DWP guidance and legislation. Housing Benefit sections are subject to audit, and Audit Scotland are aware of the principles of the THB Scheme.

1.5.4 Where there is more than one level of service at a property (or group of properties) there will be an additional entry in the THB service level spreadsheet for each level of service. The amount of THB funding for the service as a whole will be the total of the different levels of THB, as will be calculated on the Pricing Reconciliation Worksheet:

1.5.5 In some cases the grouping of properties may not be identical within SP3 and the THB spreadsheet, in which case an adjustment should be made to the THB spreadsheet to indicate this. For example, if a service covers two properties defined as different services, but the THB spreadsheet groups those properties together for the purposes of having determined an identical level of allowable THB, the Supporting People team should split it into two or more lines.

1.5.6 Once the Record ID has been entered, and the Pricing Reconciliation Worksheet prepared, it will be important to track changes to the THB amounts so that the contract schedules can be kept up to date. It is recommend that authorities add another column to the THB spreadsheet, or annotate the sheet in some way to record dates of changes of allowable THB, so that there is an easy reference point for updating the Worksheets and SP3 at appropriate points in the overall process. It is vital that there is a clear audit trail. The SP3 record can be immediately altered to reflect changes in THB levels. Note, however, that changes AFTER December 20 will need to be tracked separately (see section 1.19 on final reconciliation changes).

Number of Units

1.5.7 In relation to accommodation based housing support services the number of units in the THB service level spreadsheet relates to the total number of units for the service. The total number of units cannot include staff units, units of service delivered to owner-occupiers or services that are funded from another source. That is, where units within the service are fully funded by another source, they should not be counted. However, where units are partly funded by THB they will appear as a line on the THB service level spreadsheet.

Calculation of number of units:

1.5.8 In relation to floating support the number of units must only include those where a tenant is actually in receipt of Housing Benefit or where tenants are receiving housing support services and could be eligible for, but are not currently receiving, Housing Benefit. For example, where a tenant is earning and receiving a service but is above the Housing Benefit threshold.

1.5.9 All floating support services must conform to the Transitional Housing Benefit Regulations (see annex 1) and all the services must be charged as a condition of occupation. This means that:

• tenancy agreements must reflect the payment of support charges as a condition of occupation of the tenancy. This must be supported by evidence.
• there must be an agreement to provide the support on behalf of the landlord to the tenant where the support provider is separate from the landlord, in the majority of circumstances the support provider will be paid through the landlord. Supporting documentation should be provided to Housing Benefit.
• any variation of tenancy should be actioned in accordance with all the relevant consultation requirements encompassed in the tenancy agreement and housing legislation. Including consultation with tenants ensuring they understand the implications, advocates should be used for tenants who have limited capacity to understand complex tenancy variations.
• where the support provision is a new service to an existing tenant Housing Benefit sections should be provided with copies of the relevant tenancy agreement and documentation relating to any variation.
• where there is doubt about a variation of an agreement further advice should be sought from the Housing Benefit Local Authorities services section.
• where there are concerns about a service it would be reasonable to request details of referrals methods.

Additional points:

• only charges that relate to the service actually received by the tenant can be included in the charge eligible for THBS, for example:
• tenants can only be charged for services they are actually receiving, and it is not possible to charge a tenant for a service they may receive in 3 months time.
• 3 tenants cannot be charged the cost of 5 tenants service because the additional 2 are living in accommodation not eligible for Housing Benefit.
• tenants receiving identical services must be charged the same rate. The rate cannot vary because some users are not eligible for Housing Benefit.

1.5.10 In practical terms this means, for example, that the number of units cannot include units of service delivered to owner-occupiers, services that are funded from another source, service users living with their parents or tenants in the private rented sector.

1.5.11 Information relating to the number of tenants should be based only on those tenants with a liability to pay for support on the relevant date for the initial grant calculation and those with such a liability on 31 March 2003 for the reconciliation calculation.

Calculation of number of units:

1.5.12 Floating support may provide an additional general reconciliation problem in that SP3 does not record property for floating support services, so there may not be a direct match. In order for this matching exercise to be undertaken local authorities may need property details from floating support providers. This depends partly on how the Housing Benefit section has organised the spreadsheet - that is, they could simply have recorded a general entry for each floating support service, or recorded each tenant in receipt of a floating service as a separate line. If the latter, this would leave entries on the THB spreadsheet for which a property match was problematic. It is suggested that the provider of floating services be checked against the unidentified entries in the THB spreadsheet at the end, which should tally, leaving a residue of entries which may be providers of support who have been missed on SP2.

1.5.13 Community alarm services can be another example of floating support services. Where a community alarm is supplied to people in rented accommodation, who receive it as part of their tenancy agreement and claim THB for the service, then local authorities may require to take the same approach as in 1.5.8 above. Where the alarm is an integral part of a support service, for example in a sheltered scheme, the cost will be included within the general contract for that service.

1.5.14 The Scottish Executive is preparing more detailed guidance on community alarms, but the principle is the same as for floating support generally, that is, the contract and transfer funding is for service users who are eligible for THB. Any general community alarm service to the wider community is not part of this transfer funding, unless it is delivered to people who have the receipt of and payment for the service as part of their tenancy agreement (and hence will in many cases receive THB). This will specify the total capacity of the service for Supporting People purposes. This is, of course, different from the longer term planning for community alarm services and their place in the Supporting People programme, which is likely to be a more general provision. But for the purpose of this exercise, the only eligible people in terms of specific and restricted community alarm service are those who have it as a condition of tenancy (Note that rent pooled arrangements are dealt with elsewhere).

Example of THB Service Level Spreadsheet

The date at which the Total THB was last updated and the Record ID can be added by the Supporting People team as below.

This is for illustrative purposes and not all fields are shown, the exact content may vary from authority to authority.

Note: Total THB represents a weekly charge per unit. This covers all service charges that are eligible to be paid under THB general counselling and support charges, cleaning of tenant's own accommodation and alarm charges. The term is used as it is defined in the DWP circular A47/2001.

1.6 Special Needs Allowance Package (SNAP)

1.6.1 Communities Scotland will provide a list of SNAP funded services for each local authority, which includes the amount of SNAP currently paid. The local authority will need to identify, for each SNAP funded scheme, the services that funding will be transferred to and enter the Record ID on the SNAP funding spreadsheet.

1.6.2 There are a few factors that will complicate the funding transfer and these are set out below.

1.6.3 Each SNAP award has a unique identifier called the SNAP ID. It is possible for one SNAP award to relate to several properties. See the example of a SNAP funding spreadsheet below.

1.6.4 The grouping of properties in Communities Scotland's records will not necessarily be the same as the way they are grouped together in the Mapping Supply Database. This is because Communities Scotland allows two or more client groups to be combined in a SNAP funded service and this is unlikely to be the way that they have been grouped by providers in the SP1 or SP2. In addition specific address data for certain floating support services may not be available from Communities Scotland. Where this information is not available providers should be asked to provide it.

1.6.5 Local authorities may therefore need to check, for some SNAP awards, which Supporting People service each property relates to. Where one SNAP service, identified by one SNAP ID, covers more than one service in the Mapping Supply Database, the local authority will need to create a new row in the SNAP funding spreadsheet for the single SNAP funding stream, to enable the break down of costs between the two services as identified on the Mapping Supply Database. The local authority cannot assume that the split is 50:50, and the provider should be asked to decide the percentage allocated to each Supporting People service. This is set out in the table below.

1.6.6 On the other hand there may be several SNAP awards contributing in whole or in part to an individual Supporting People service. In this case allocate the same Record ID number to each SNAP award included.

1.6.7 As with the THB service level spreadsheet it is vital that there is a clear audit trail and the process set out in paragraph 1.5.6 should be followed.

Example of SNAP Funding Spreadsheet

1.7 Un-pooled HRA / RSL funding

1.7.1 The Scottish Executive have already received information from "pooling" local authorities about the total costs for these support services. Communities Scotland has, likewise, received information from RSLs. A few local authorities and RSLs may wish to revise their returns in the light of new guidance and further consideration, however in all other cases the breakdown of funding for each service should be based on the original work to build up this total figure. This simply means that the annual cost of each service (sheltered scheme or other service) needs to be identified for input to the Pricing Reconciliation Worksheet (see below).

1.7.2 Local authorities funding support services through pooled costs in the HRA, and RSLs in a similar position, will be required to separate out those costs so that they can be applied to the individual services. The specific amount of funding must be identified for each service and set out as part of the contract value schedule.

1.7.3 The first version of this guidance provided spreadsheets for completion by local authorities and by RSLs for services which have been pooled. If you have been completing these spreadsheets you should continue to use the information for purposes of arriving at contract and grant values. Pricing Reconciliation Worksheet version 2 can be used for this purpose.

1.7.4 However, in an effort to make the process of arriving and grant and contract values as smooth as possible an alternative, but equivalent, method of arriving at the contract and grant values has been developed.

1.7.5 Details of individual services at unit level are still required to enable the correct financial information to be fed into the contracting process for these services.

1.7.6 Each row of the spreadsheet at 1.7.7 should be reconciled with the services recorded in the Mapping Supply Database and the relevant Record ID noted. If a local authority has not already mapped its rent pooled services it should do so now as a matter of urgency.

1.7.7 The following spreadsheet should be completed:

1.7.8 Again, any amendments to this spreadsheets should be recorded (see paragraph 1.5.6).

1.8 Resettlement Grant (Section 30 Funding)

1.8.1 Communities Scotland has provided a list of Resettlement Grant (Grant) funded services, including the amount of Grant currently paid. The local authority will need to identify, for each Grant funded scheme, the services that funding will be transferred to and allocate a Record ID to the service.

1.8.2 There are a few factors that might complicate the funding transfer and these are set out below.

1.8.3 Each Grant value has a unique identifier called the Section 30 ID. It is possible for one Grant award to relate to several properties (as with SNAP funding).

1.8.4 The grouping of properties in Communities Scotland's records will not necessarily be the same as the way they are grouped together in the Mapping Supply Database. Where additional address information is required, providers should be asked to provide it.

1.8.5 Local authorities may therefore need to check, for some Grant awards, which Supporting People service each property relates to. Where one Grant value, identified by one Section 30 ID, covers more than one service in the Mapping Supply Database, the local authority will need to breakdown the Grant details into two or more parts, to enable the breakdown of costs between the services as identified on the Mapping Supply Database. The local authority cannot assume that the split is 50:50, and the provider should be asked to decide the percentage allocated to each Supporting People service. Local authorities should break down this information as with SNAP (see section 1.6 of the SP3 to Contract Interim Guidance), but for the purposes of the Pricing Reconciliation worksheet, the percentage breakdown of the figure should be made before inputting the figure into the worksheet.

1.8.6 As with the THB service level spreadsheet it is vital that there is a clear audit trail and the process set out in paragraph 1.5.6 of the interim guidance From SP3 to Contract should be followed.

1.9 Income Support and Income Related Jobseekers Allowance

1.9.1 There are services for owner occupied sheltered schemes in Scotland where the residents contribute to the cost of services including support. They are currently funded through Income Support/JSA(IR).

1.9.2 A more detailed guidance note will be issued shortly.

1.10 Step 3: Setting the price for the individual service

1.10.1 Having allocated all the eligible funding to Supporting People services by Record ID on the eligible funding spreadsheets, the next step is to pull together all this eligible funding at a Supporting People service level, ready for input to the Mapping Supply Database using the Pricing Reconciliation Worksheet. Below is an illustrative example of this Worksheet using information provided in examples for Anywhere Housing Association. Electronic copies of the Pricing Reconciliation Worksheet are available from the 'whats new' page on the supporting people website: www.scotland.gov.uk/housing/supportingpeople. This electronic version includes automatic calculation of elements of the Worksheet.

1.10..2 The following sections take you through the process of transferring the funding data from the individual funding stream spreadsheets, as annotated, to the Pricing Reconciliation Worksheet.

1.11 Step 3.1 - Identifying the service and recording details on the Pricing Reconciliation Worksheet

1.11.1 A separate Pricing Reconciliation Worksheet should be completed for each individual service. Again this is not mandatory, and local authorities may find a more direct or efficient way of maintaining an audit trail and making these calculations. This may particularly be the case for the more simple transfers of information (for example where there is only one funding source, and it is a SNAP or THBS claim which covers all and only the service in question). Nevertheless we recommend the worksheets as a simple and consistent record and calculation tool.

1.11.2 The approach for the Worksheets is:

1.12 Step 3.2 - Entering THB data onto the Pricing Reconciliation Worksheet

1.12.1 Step 3.2.1 Identify each line from the THB service spreadsheet with the same Record ID entered into box 1a

1.12.2 Step 3.2.2 Transfer the data from the THB spreadsheet to Section 2 of the Pricing Reconciliation Worksheet

Note: There may be occasions where the number of units identified in SP3 exceeds that included on the THB service level spreadsheet, as the service is part funded by SNAP (see section on floating support above). This also applies to floating support and community alarms, as set out above. There should be no cases where the number of units identified on the Pricing Reconciliation Worksheet exceeds the SP3 number.

1.13 Step 3.3 - Transfer the SNAP data from the Communities Scotland spreadsheet to the Pricing Reconciliation Worksheet

1.13.1 Step 3.3.1 - Identify each SNAP service with the same Record ID as entered into box 1a.

1.13.2 In the example below, the Pricing Reconciliation Worksheet for Anywhere Housing Association only has entries for the properties with the Record ID 100 transferred from the SNAP Funding Spreadsheet, although the SNAP ID 100027 was allocated to both 1-15 Smith Street and 1-10 Green Place (Record ID 130). The provider confirmed that 63% of the SNAP was for 1-15 Smith Street and 37% of the SNAP for 1-10 Green Place. 1-10 Green Place will appear on the Pricing Reconciliation Worksheet for Record ID 130.

1.13.3 Step 3.3.2 - Transfer the SNAP data from the spreadsheet to the Pricing Reconciliation Worksheet section 3 by:

1.14 Step 3.4 Unpooled HRA/RSL funding

If using PRW version 2:

1.14.1 To transfer this information:

If using PRW version 3:

1.14.2 To transfer this information:

1.15 Step 3.5 Resettlement Grant (Section 30 Funding)

1.15.1 Step 3.5.1 - Identify each Resettlement Grant service with the same Record ID as entered into box 1a.

1.15.2 Allocate the amount of Resettlement Grant funding to be reconciled to this service. Where Resettlement Grant funding is split between two or more services the local authority in conjunction with the provider should allocate the relevant amount to each service.

1.15.3 Step 3.5.2 - Transfer the Resettlement Grant data from the spreadsheet to the Pricing Reconciliation Worksheet section 5 by:

Example Pricing Reconciliation Worksheet for Anywhere Housing Association Young Persons Service (For illustrative purposes)

1.16 Step 4 - Transferring the figures from the Pricing Reconciliation Worksheet to the Mapping Supply Database.

1.16.1 The total figures for each funding stream from the Pricing Reconciliation Worksheet will give the baseline figure for the Supporting People contract. The next step is to transfer these figures to the Mapping Supply Database. Guidance on this accompanies the revised Mapping Supply Database issued on 13 ^th December 2002. Once completed, the Mapping Supply Database will generate the contract value and the Supporting People grant value for the service. It will also produce a Service Contract Value Schedule (see Schedule 2 of the Model Interim Contract in Folder 1, Interim Guidance, Commissioning Housing Support Services, Annex 1) as part of the SP3 report.

1.16.2 Additional instructions on the use of the SP3 section of the Mapping Supply Database have been provided with the August upgrade and related guidance.

1.17 Step 5 - Converting 2002/3 eligible funding into 2003/4 Supporting People funding.

1.17.1 Once you have entered the 2002/3 eligible funding into the Mapping Supply Database the transfer funding formula will be applied automatically.

1.17.2 This transfer funding formula allows for inflation as follows:

• THB (2.9% for the year or part year where the rent review date is after 1 April 2002)
• SNAP (2.5% for the year)
• Resettlement Grant (2.5% for the year)
• HRA/RSL unpooling: (5.0625% to inflate 2001-02 values to 2003-04 values)

1.17.3 THB is calculated by multiplying the determined THB value for the service by the relevant number of units. This is then multiplied by the number of weeks for which THB is paid. Adjustment is then made for voids (see 1.1.2).

1.17.4 The formula will arrive at the contract value by adding the values for THB, SNAP, Resettlement Grant and HRA/RSL unpooling as augmented for inflation. Income support values will not be included automatically and these should be recorded separately for the relevant contract.

1.17.5 To arrive at the grant value for the service the formula will deduct the assumed level of charges (see "Charging Tasks and Activities") from the contract value.

1.18 Interim Known Funding Commitments

1.18.1 The Mapping Supply Database will print the following Grant Allocation Report:

PART 1: Exempt Services (when exempt box is ticked yes)

PART 2: Non Exempt Services (where exempt box is ticked no)

1.18.2 This Grant Allocation Report should be submitted to the Supporting People Team, Scottish Executive Development Department, Housing 3-2, Area 1-G Victoria Quay, EDINBURGH, EH6 6QQ, or by email to supportingpeople@scotland.gov.uk.

1.19 Dealing with funding changes up to 31 ^st March 2003

1.19.1 The Scottish Executive will require local authorities to create an electronic back up of the Mapping Supply Database as at 28 ^th February 2003. This will form a baseline from which to track the changes made up to the final reconciliation in 2003. To create a back-up of the Database, authorities should follow the procedure outlined below:

1. On the desktop of the computer used to store the mapping supply database, double click on the My Computer icon.
2. In the My Computer window, double click on the C Drive (or other appropriate drive if the database has been set up elsewhere).
3. In the open C Drive window, double click to open the Detr folder.
4. In the open Detr window, use the right mouse button to click on the file named ServicesScot_Data.
5. From the drop down list that appears, click on the copy option.
6. Using the right mouse button, click on any blank white space in the Detr window.
7. From the drop down list that appears, click on the paste option. This has created a copy of the data held in the local database, called Copy of ServicesScot_Data.
8. Local authorities should arrange to store the Copy of ServicesScot_Data file in a safe and secure manner. Options may include storing it on a CD Rom or on a secure network drive. Whatever option is taken by the local authority, it is essential that arrangements meet the requirements of the Data Protection Legislation.

1.19.2 There will inevitably be some changes to service funding after contract details have been sent to the Scottish Executive. The Scottish Executive will make adjustments to Supporting People grant totals to take account of eligible changes as part of the final reconciliation, and therefore all adjustments must be recorded. For example, adjustments may be required because:

• The provider has an annual rent review in January and implements a new determined THB figure;
• An error is discovered.

1.19.3 In many cases providers apply for and are directly notified of these THB changes. In these cases they should inform the local authority directly of the change, and the contract adjusted accordingly. In other cases (such as error) this should again happen. Where change to financial information does occur, local authorities should create additional back-up copies of the Database, following the procedures set out in 1 to 8 above.

1.19.4 The final cut of THB is the set of reports following 31 March 2003. The final eligible funding spreadsheets will therefore be available for reconciliation purposes. Local authorities and providers should, however, implement these changes and record them as outlined in this guidance.

1.19.5 Changes to the Mapping Supply Database as a result of updates to the eligible funding spreadsheets for each service will be reflected in the updated grant claim form which local authorities will be asked to submit in 2003 for reconciliation purposes.

Annex 1 Relevant Housing Benefit Legislation

The following Housing Benefit regulations specify the charges are eligible to paid under housing benefit. Paragraph (e) explicitly relates to service charges.

Regulation 10 Housing Benefit (General) Regulations 1987

10. Rent

(1) Subject to the following provisions of this regulation, the payments in respect of which housing benefit is payable in the form of a rent rebate or allowance are the following periodical payments which a person is liable to make in respect of the dwelling which he occupies as his home

(a) payments of, or by way of, rent;

(b) payments in respect of a licence or permission to occupy the dwelling;

(c) payments by way of mesne profits or, in Scotland, violent profits;

(d) payments in respect of, or in consequence of, use and occupation of the dwelling;

(e) payments of, or by way of, service charges payment of which is a condition on which the right to occupy the dwelling depends;

(7)In this regulation and Schedule 1 and 1B-

"service charges" means periodical payments for services, whether or not under the same agreement as that under which the dwelling is occupied, or whether or not such a charge is specified as separate from or separately identified within other payments made by the occupier in respect of the dwelling; and

"services" means services performed or facilities (including the use of furniture) provided for, or rights made available to, the occupier of a dwelling

Footnotes

1 Mapping Supply Database Record ID: the Record ID is the unique reference number assigned to each service when the information is entered into the Mapping Supply Database. This reference number is given on all detailed reports produced by the Mapping Supply Database.

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