Compliance process

Our EB Risk Model generates an individual risk score for each EB based on their LCF activity. Scores are compiled from a number of key risk indicators which use the data provided to use by EBs via ENTRUST Online (EOL). The risk scores are updated in real time based on an EBs activity and performance. 

The key risk indicators which make up an EB's risk score include, for example;

• the amount of LCF funding received;
• the amount of LCF monies held as unspent funds;
• the number of projects approved for the EB; and
• the number of previous non-compliance issues raised with an EB.

The risk score partly determines how often we will be in contact with an EB to arrange an inspection visit or review. The annual compliance inspection schedule is based initially on risk score and other general factors within an EB. For example, we may carry out an 'exit' review of EBs requesting to voluntarily revoke from the scheme.

We have also introduced a Project Risk Model to identify higher risk projects which we will review as part of a compliance inspection of an EB or as a separate inspection of the project. The Project Risk Model follows the same format and principles as the EB Risk Model. Projects are awarded an individual risk score compiled from a number of key risk indicators which are based on the data held on ENTRUST Online (EOL). The risk scores are updated in real time based on an EB's project activity.

You can review our current risk model indicators in the document on the right hand side of this page.