Audit
We operate a robust audit programme to help ensure that grants are only paid to applicants eligible to receive them, non-compliances are identified, and the scheme is operating in line with the regulations and scheme guidance. Doing so helps to ensure scheme funds are being spent effectively, providing value for money for the public.
We undertake both statistical and targeted audits. Statistical audits are randomly selected to provide a representative view of the scheme population. This provides us with a reliable measure of the level and types of non-compliance within the population and allows us to monitor whether non-compliance remains within risk appetite. Targeted audits focus on installations we have identified as having an increased risk of non-compliance.
We conducted 405 statistical audits during Scheme Year 1. For audits closed to date, we assessed that 95.6% of those audited were complying with the scheme rules. Note that remedial action may bring more of these into compliance. The most common reasons for non-compliance identified were:
- ‘No evidence of plant on site or plant ineligible for the scheme’
- ‘Plant cannot meet eligible property space and water heating needs‘
- ‘Incorrect EPC provided’
These collectively accounted for over 80% of all non-compliance identified through the statistical programme.
Additionally, Scheme Year 1 saw 470 installations selected for targeted audit. As these audits target known risk areas, we expect compliance in this group to be lower. Overall we assessed that 93.3% of those audited were complying with the scheme rules.
It should be noted that the compliance rate can only be confirmed following the completion of a compliance investigation and some investigations relating to year 1 remain open at the time of writing.
Compliance
When we suspect an applicant has not complied with the scheme rules, for instance after completion of an audit, we may open a compliance investigation. If our investigation subsequently confirms a non-compliance affecting eligibility has occurred, in most cases we take compliance action by rejecting the ineligible application or revoking the voucher.
We closed 153 compliance investigations during the year of which 53 were found to be non-compliant. The most common non-compliance reason effecting eligibility was ‘Existing system was not fossil fuel or electric’, accounting for 50.9% of the total. Where this issue has been identified the installer has been unable to provide evidence that the BUS installation will be replacing an existing fossil fuel or electric heat source.
In total, the compliance actions we took in Year 1 resulted in almost £270,000 of public funds being protected or recoverable - all of which (where applicable) has now been recovered.