Shedule 4: Performance Reward Grant
The provisions of this schedule are subject to any additional provisions on the performance reward grant elsewhere in this agreement.
Total potential grant
If the Council meets or exceeds all of its performance targets in Schedule 1 to the Local PSA, the total grant will be equivalent to 2.5 per cent of the sum of the Council's net budget requirement for 2001/02. The net budget requirement for Leicester City Council in that financial year was £301.9 million. The total potential grant is therefore £7.5 m.
The division between targets
The total potential grant is divided equally among the targets.
Where a target has sub-targets, unless otherwise specified the potential grant for the target is sub-divided equally among the sub-targets.
The reward for achievement on a target
The proportion of potential grant that is payable is the same as the proportion of the enhancement in performance that the Council achieves for each target or sub-target, subject to a maximum proportion of 100 per cent and a minimum of 60 per cent. If the proportion would be less than 60 per cent, nothing is included in the grant in relation to that target.
Payment of the grant
Main grant
The grant will be paid in two equal installments, one in each of the two financial years following the end of the Local PSA period, subject to the qualification below relating to interim payments on account.
Interim payment on account
Where the Council and the Government have agreed an interim level of performance in relation to a target (or sub-target), as specified in Schedule 1, and the Council achieves it, the Government intends to pay one-fifth of the relevant potential grant in the financial year before the first year in which the main grant would be due. This is treated as a 'payment on account'. The definitive calculation of the grant will be made as described above. The balance of the grant entitlement will be paid in equal installments in the two subsequent financial years. If the definitive calculation yields a grant entitlement less than the 'payment on account', the excess will be recovered.
Half of each installment of the grant will be eligible to support capital expenditure, and half will be eligible to support revenue expenditure.
Total potential grant
If the Council meets or exceeds all of its performance targets in Schedule 1 to the Local PSA, the total grant will be equivalent to 2.5 per cent of the sum of the Council's net budget requirement for 2001/02. The net budget requirement for Leicester City Council in that financial year was £301.9 million. The total potential grant is therefore £7.5 m.
The division between targets
The total potential grant is divided equally among the targets.
Where a target has sub-targets, unless otherwise specified the potential grant for the target is sub-divided equally among the sub-targets.
The reward for achievement on a target
The proportion of potential grant that is payable is the same as the proportion of the enhancement in performance that the Council achieves for each target or sub-target, subject to a maximum proportion of 100 per cent and a minimum of 60 per cent. If the proportion would be less than 60 per cent, nothing is included in the grant in relation to that target.
Payment of the grant
Main grant
The grant will be paid in two equal installments, one in each of the two financial years following the end of the Local PSA period, subject to the qualification below relating to interim payments on account.
Interim payment on account
Where the Council and the Government have agreed an interim level of performance in relation to a target (or sub-target), as specified in Schedule 1, and the Council achieves it, the Government intends to pay one-fifth of the relevant potential grant in the financial year before the first year in which the main grant would be due. This is treated as a 'payment on account'. The definitive calculation of the grant will be made as described above. The balance of the grant entitlement will be paid in equal installments in the two subsequent financial years. If the definitive calculation yields a grant entitlement less than the 'payment on account', the excess will be recovered.
Half of each installment of the grant will be eligible to support capital expenditure, and half will be eligible to support revenue expenditure.