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Grant Aided Expenditure – An Overview

Grant Aided Expenditure – An Overview. What is GAE? GAE Calculation Process Mechanics of GAE Base Year Methodology Importance of Indicators Years 2 & 3 Methodology Special Islands Needs Allowance (SINA) GAE website. What is GAE?. Allocation methodology – not a budget!!

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Grant Aided Expenditure – An Overview

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  1. Grant Aided Expenditure – An Overview What is GAE? GAE Calculation Process Mechanics of GAE Base Year Methodology Importance of Indicators Years 2 & 3 Methodology Special Islands Needs Allowance (SINA) GAE website

  2. What is GAE? • Allocation methodology – not a budget!! • Client Group Approach – “a systematic means of allocating a predetermined level of grant aided expenditure for each service equitably among local authorities” • An objective means of determining what each LA would spend if it was providing a similar level of service at a similar level of efficiency

  3. GAE in Context (1) Estimated Service Expenditure (9) Aggregate External Finance Estimated Service Expenditure = GAE + Special Islands Needs Allowance

  4. GAE Process • Service Totals agreed in Spending Review • Notional Calculation in Base Year • Years 2 & 3 are based on Base Year shares and projected indicators (where possible) • Involves extensive consultation with COSLA • Avoids turbulence

  5. Mechanics of GAE • 9 Service Lines (Education, Social Work ..) • 99 Individual Services • 40 Data Sources • Numerous Indicators • Primary Indicators – 38 • Secondary Indicators – 13 • Composite Indicators – 3 • Budgeted/Actual Expenditure - 13

  6. Composite Indicators • Single indicator encompassing a number of variables • Advantage of being weighted to suit different assessments within one larger service provision • Example: Services for the Home Based Elderly • Weighted population (65-74 weighted 1, 80+ weighted 9.84) • Combined Standardised Mortality Ratio, Limiting Long Term Illness, Live Alone & IS&JSA Index (currently equal weighting)

  7. Base Year Calculation Methodology 1: Pro Rata Share - Applies to PIs, CIs & Exp shares 2,246 108,812 Angus Council £520k = x 25,185

  8. Base Year Calculation Methodology 2: Calculation incorporating Secondary Indicator 9,136 397,853 Angus Council £18,014k = x 860,793+ 9,136 x 0.0242 x (8.2% - 4.8%)

  9. Importance of Primary Indicators

  10. Importance of Secondary Indicators

  11. Years 2 & 3 Methodology • Sub-Service Totals agreed • Based on Base Year (Notional) Distribution • Pro-rata distribution on sub-service allocation • Re-Calculated using client group projections • Treatment of Additional Funds • Year 2 distributed on current GAE assessment • Year 3 distributed on subsequent GAE assessment

  12. Special Islands Needs Allowance (SINA) • Compensate island authorities for additional expenditure pressures not already fully recognised in GAE methodology • SINA is derived from GAE and comprises 2 elements: • cost of provision to islands outwith main council area • reflect additional pressures associated with not having mainland foothold

  13. Grant Aided Expenditure Statistics Web Site (linked to LGFS) • Comprehensive 2005-08 Green Book • http://www.scotland.gov.uk/Topics/Statistics/18209/12073

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