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Page Content

• Model in Kit Form
• Model Concept
• Standard Set of Models
• Model Templates
• Main Summary - Template
• Base-line Model - Template
• Subsidy Sections Adjustments - Templates
• LA Error Calculation - Template
• Modified Schemes Calculation - Template
• Validating the Adjustments
• Model Building Service

Related Pages

• Benefits Subsidy Services
• Subsidy Certification Commentary
• Electronic Working Papers

A Working Model of the DWP Housing and Council Tax Benefits Subsidy Claim

A Model in Kit Form

The kit form approach is designed to generate the maximum flexibility for model users. Users can build as many (or as few) models as required for their particular needs. The kit comes in two parts

• the templates for the model (rather like the pre-moulded parts for a model aeroplane kit) and the instructions for constructing the model. This can be downloaded (ACBA claim modelling package) free of charge.
• the tool kit for constructing the model. The ACBA Electronic Working Papers package (ACBA-EWP) can be downloaded free for a month's trial, but registration and purchase of a full version costs (£75.00 + VAT)

ACBA-EWP contains a fully integrated help system. In addition, the help system is continually up-dated on-line and further technical help is available via our user group.

A pre-prepared styalised model showing how the model works is available to download in a zipped format.

The Model Concept

The overall concept of the package is that it should provide a completely self-contained record of all the adjustments to your subsidy claim and the authorities for making those adjustments, together with a comparative analysis of the impact that the adjustments have had at each stage.

The main parts (or working papers) of the model are

• the base-line or starting point (the cell values you posted in your original claim to the DWP)
• details of changes (and comparisons) for the Rent Rebates cells (both HRA and non-HRA)
• details of changes (and comparisons) for the Rent Allowance cells
• details of changes (and comparisons) for the Council Tax Benefit cells
• details of changes (and comparisons) to the uncashed cheques cell
• re-working and comparison of the Local Authority Error calculation
• details of changes (and comparisons) of the voluntary element of the Modified Schemes cell, together with the re-working of the subsidy calculation
• re-working and comparison of the subsidy totals summary, together with the details of changes to the administration subsidy or payments received to date (the front page of the claim Cells 003 - 010)

You will need only one base-line or starting point, otherwise each model you create will contain one each of the remaining seven working papers.

The design of the model is such that

• any individual working paper in one model can act as the base-line or starting point to its equivalent in a new model. Thus you can model the impact of changes to your claim consecutively (rather than all together as a group).
• any initial base-line (or subsequent starting point) can form the basis for as many models as you need.

A Standardised Set of Models

The pre-defined structure of the indexed workbook anticipates that most users will want four models

• a test model to measure the impact of possible changes to the claim, based on the values in your original claim
• a model of the impact of changes to your original claim agreed with your external auditor before submission of the certified version to the DWP
• a model of the impact of changes to the certified version of your claim assuming that the DWP accepts all your external auditor's qualifications
• a model of the impact of changes to the certified version of your claim based on the DWP's final decisions on the subsidy payable

The Model Templates

In this section we describe the templates individually. In particular we show how the model is designed, at each stage, to test that the necessary links with other parts of the models have been created and that valid values entered into the model. Under the model validation protocol, where it detects an error, or a potential error, subsequent parts of the model calculation are halted.

The Overall Summary

The Overall Summary template is designed to compute only when all the building blocks which go to make up the front page of the subsidy claim have themselves been complete. Once all the necessary information has been posted it recalculates the revised claim and identifies what the differences are.

The Base-line Model

The purpose of this working paper is to enter all the values on your original subsidy claim into the model. The individual entries are validated to a limited extent, but the main verification is to check that the figures in the summary page (Cells 003 to 010) match those calculated in your DWP electronic claim exactly.

The model is shown below. The user enters values into those cells with the light green backgrounds. The final summary values will not compute until all the relevant cells have valid entries. The validation cell (F10 on the worksheet) will also show Complete.

The Adjustments Working Papers

Each of the adjustments working papers for Rent Rebates, Rent Allowances and Council Tax Benefit employ a very similar structure. Here we use the Council Tax Benefit - Adjustments to show how the model works.

The purpose of these adjustments working papers is three fold

• to note the individual adjustments and provide authoritative validation for the figures used
• to demonstrate that the total expenditure cell for the subsidy section remains in balance (i.e. you have compensated adjustments in one cell with appropriate opposing adjustments in one or more other cells)
• to summarise and compare the impact of those adjustments on the subsidy for that part of the claim

The diagram below shows two compensating adjustments between cells 144 (CTB excess benefit caused by LA error) and 145 (Eligible CTB excess benefit). Since the adjustments balance each other the total expenditure cell is flagged accordingly (cell J11 on the worksheet).

The impact of these adjustment on the total subsidy for Council Tax Benefit is summarised as shown below. In this case the summary shows that the loss of subsidy at a rate of 40% in the eligible excess benefit cell (£4,000) is more than covered by the increase in subsidy generated by the Local Authority error recalculation (£10,000), which, when below the threshold, is awarded at 100%. This results in a net gain in subsidy of £6,000.

The Local Authority Error Subsidy - recalculation

The model collects all the revised values from each of the main adjustments working papers and presents them in a comparative format. It is easy to spot exactly how each adjustment has affected the subsidy calculation.

It is also very clear how close your total LA Error values are to the threshold. In some circumstances (as described above) an increased declaration of LA Subsidy Error can improve your subsidy return.

Modified Schemes - Adjustments and Recalculation

Cell 214 of the DWP claim requires you to report the level of voluntary disregard of war pensions from income determination. Like any other cell in the claim, this can be subject to amendment or qualification by your external auditor. This working paper allows you to enter adjustment to the cell and recalculates the subsidy value to be transferred to Cell 114s (the Rent Allowance section).

Validating Adjustment Values

A critical part of subsidy model approach is that each adjustment value should be proved as being authoritative. The tables that describe the error and its value also provide for a cross reference to the authority which supports the value.

in the diagram above the reference B104/1 links to an index of supporting evidence. Copies of all electronic evidence are held within the project and is available for immediate inspection.

Model Building Service

ACBA (UK) LTD will provide an on site model building service. The components of the service are