Local Education Authority Co-ordinated Voluntary Aided Programme – LCVAP

Some notes about LCVAP for background or as a reminder.

  • LCVAP funds the larger capital works for VA schools
  • A pool of funding available from Education Funding Agency via the Local Authority to be allocated amongst VAT schools each year
  • Allocation is agreed between Church of England Diocese (via LDBE), Roman Catholic Diocese and Local Authority
  • The funding available (under £500,000 for 23 CofE schools in the Diocese at 100%) is approximately one quarter of the amount needed each year
  • Projects must run within a funding year – (1 April to 31 March)
  • It has been announced that the amount of funding made available for 2015-16 will be maintained through to 2018-19, except that it will reduce when VA schools convert to academies or join a multi-academy trust.

Practicalities and administration – reminders and changes

  • VAT may not be reclaimed on LCVAP projects. Contractors and advisers will usually quote a VAT-exclusive amount: if they say £10,000, the actual cost is £12,000
  • Very often when costing a project we concentrate on the headline cost of works – contractor’s tender price of, say, £100,000 (which means £120,000), but on top of that there will typically be professional fees of around 15% (+ VAT), so the actual project cost is £138,000
  • Have you included fixtures, fittings and furniture?
  • LCVAP will only actually pay up to 90% of project costs. So for the £138,000 project, the governors (typically the school itself) will have to find £13,800
  • LDBE is able to help by allowing this to be paid over 3 years, but it must be settled in full if the school converts to an academy or joins a multi-academy trust.

It can be very confusing trying to keep a handle on figures with and without VAT and grants stated at 100% (because this is how we usually talk about the LCVAP allocated amount) or 90% (because this is the actual cash grant).

In October 2014 the way the LCVAP is administered was changed.

  • We must still submit an Application for Approval in order to secure the funds, with detail of tenders and an outline profile of spending.
    • Formal tendering is a lengthy and costly process: Governors have discretion as to whether this is necessary for their project or whether less formal quotes can be requested.
    • There is no rule about how many tenders or quotes must be obtained, but Governors have a duty to ensure value for money as always.
    • It is necessary to be very careful that the tenders or quotes are comparable and to choose the best (maybe not the cheapest) option. Professional advisers will help with this.
  • LCVAP monies will then be received by LDBE in accordance with the profile of spending. Contractors and suppliers will be paid by LDBE only after the architect’s certificate or Governors’ confirmation is received
  • Each year LDBE is required to certify the amount of LCVAP spent
  • A sample of projects will be selected by the Education Funding Agency for detailed audit.

Why not share this?