Under and over delivery
As actual enrolments may vary from the total approved in an Investment Plan, there is a 3% tolerance band for over- and under-delivery. This band is based on the total SAC dollar value, not EFTS volumes.
We will discuss over- or under-delivery with the TEO concerned before taking any action. As with other significant variations from the Investment Plan, TEOs should raise with us at the earliest possible time any significant shifts in delivery from those agreed in their Investment Plans. PTEs should contact the Service Centre and TEIs should contact their Investment Manager.
Under-delivery
If actual delivery falls below 97% of the forecast level, we may recover the difference between the actual value of delivery and 97% of forecast delivery. Under-delivery may also relate to specific commitments such as the mix of provision.
Under-delivery may affect the amount of SAC funding approved in subsequent years. For example, if under-delivery occurs in 2010 (determined following submission of the December 2010 SDR), funding for 2011 may be reduced.
Over-delivery
Over-delivery does not attract additional SAC funding.
If the value of a TEO’s enrolments exceeds the upper tolerance level, we have a range of options under the performance consequences framework. These include:
- placing conditions on future funding (such as introducing stronger monitoring systems for newly funded projects)
- revising approved enrolment numbers in your Plan for future years
- taking no action if there is a good reason for exceeding the tolerance band.