Jargon buster

Accountable body

The organisation that will be responsible for making claims, handling money, keeping financial records of expenditure, providing reports and managing risk.  

Additionality 

Incentivising a particular behaviour or activity that is not currently taking place.

Aim

An intention or aspiration, for example to make an organisation profitable or give visitors a great experience (see also Goals and Objectives).

Alignment

The degree to which there are shared interests or objectives between two parties. In relation to funding for LVEPs, the contribution that the LVEP can make to the priorities/strategy/objectives of the funder or fund.

Baseline

A measure of performance in an area that you are looking to demonstrate improvement.

Beneficiaries

People who will benefit as a result of the activity carried out, for LVEPs usually tourism businesses, local communities, residents and other stakeholders such as AONBs. Visitors can also be counted as beneficiaries.

Business case

The justification for a project, programme or portfolio. It is a written or verbal value proposition intended to educate a decision maker and convince them to take action. 

Block exemption

An EU term describing certain industries that are exempt from competition law where the benefits outweigh the disadvantages. This is no longer relevant in the UK. See instead Streamlined Routes.

Capital funding

Pays for things that are physical such as equipment and buildings, including repair of physical items. 

Cash co-financing

Money that is provided by a third party to balance expenditure being incurred if it is not eligible to be paid for out of grant money. 

Challenge fund 

A financing mechanism to allocate (donor) funds for specific purposes using competition among organisations as the lead principle. A challenge fund invites companies, organisations and institutions working in a targeted field to submit project proposals.

Commercial case

The part of the business case that demonstrates a well-structured deal for the public sector and/or the funder and outlines a viable procurement route to purchase goods or services.

Corporate social responsibility 

Often abbreviated to CSR, it is a type of self-regulation whereby companies and organisations integrate social and environmental concerns into their business operations and interactions with their stakeholders. Social value and sustainability are often included in an organisation’s approach to CSR.

De minimus

See Minimal Financial Assistance.

Deliverables 

A project management term describing the quantifiable goods or services that must be provided upon completion of a project, e.g. a marketing campaign, businesses with online booking capability, etc.

Direct costs

Costs that can be connected to a specific object, e.g. a product or person. Includes materials, wages, venues, supplies or services. 

Drift

Sometimes called ‘mission drift’ or ‘project drift’, relates to projects, programmes and organisations. Over time the original purpose of an activity is forgotten and different activity is undertaken. 

Due diligence

Checks that are carried out before entering into an agreement. It usually involves financial, legal and compliance checks and assessing risk.

Economic case 

A description of how an organisation, project, programme or role provides benefits to society and/or to the funder. Two of the most common benefits are revenue and jobs but an economic case often includes wider social and environmental effects. 

Evaluation

Using information combined with experience and observation to present a clear picture of the work carried out. Usually involves taking a view on the degree to which aims and objectives have been achieved. 

Evidence base

The facts and figures used to back up statements, external validation of what is said from credible sources. 

Evidence of need

Evidence that is provided to funders to show that the proposal is needed and that the way you intend to meet the need is the best approach.  

Formula grants

Used to fund local authorities and devolved administrations. 

Financial case

Demonstrates that what is proposed is affordable and fundable. 

Goals

General statements of what is to be achieved, for example maximise profits, provide excellent customer service (see also Aims and Objectives).

Grant

The sum or sums of money paid by a funder to the recipient.

Grant-in-aid

Funding received as a direct payment from a government department to an arms-length body (ALB) for work that could be carried out directly by government. Money is provided to the ALB for use within broad parameters that are agreed between the government and the ALB with limited controls over day-to-day expenditure.

Impact 

A marked effect or influence that an initiative has on someone or something. It should be possible to measure the impact that funding is making.  

Indicators

The things that are measured to find out whether outcomes and outputs are being achieved. Used for internal tracking and sometimes as Key Performance Indicators (see below).

Indirect costs

Usually referred to as ‘overheads,’ for example office costs, utilities and general and administrative expenses.

Ineligible expenditure

Expenditure that is incurred by a grant recipient, but which cannot be paid for out of grant money.

Intangible costs

Costs that are difficult to quantify. They tend to be longer term and can include impacts on brand, morale, reputation, etc.

Intervention rate

The percentage of the costs associated with the project programme or role and the fund will contribute towards. 

Key Performance Indicator (KPI) 

Similar to Indicator. KPIs are the most important indicators and are often used for reporting externally as well as internally. They can be macro in nature and relate to high level targets, e.g. a growth target.

Market failure

An inefficient allocation of resources in the free market when individuals acting in rational self-interest generate less-than-optimal economic outcomes. In tourism reasons for market failure include information gaps, free rider problem, skills gaps and uneven spread.

Match funding

Any contribution made towards funded activities from a third party. Match funding is designed to avoid recipients becoming dependent on government funding. See also Cash co-financing and Monetised value in kind.

Milestones 

A major event in a project, it represents a set of activities that have been completed.

Minimal financial assistance (formerly de minimus)

Enables an enterprise (LVEP) to receive up to £315,000 in the form of subsidies over the current and previous two financial years. This allowance includes awards received since 2019/20 when the former EU State aid regime was still operative. LVEPs that are embedded into local authorities can usually seek advice from internal colleagues to see how minimal financial assistance affects them.

Monetised value in kind 

A contribution that is not financial but has a monetary value, e.g. staffing, premises, etc.

Monitoring

The methods used to find out how a project, programme or role is going. It involves counting things (outputs) and gathering information about the effect or impact actions are having (outcomes).

Objectives

Specific and actionable targets to be achieved, usually within a defined timeframe e.g. increase profits by 15 percent, deliver customer service training to 50% of reception staff (see also Aims and Goals).

Options appraisal

An options appraisal is useful to answer the ‘so what’ question. It is a way to demonstrate why your proposal is important and is usually included when you are making the economic case. If you are producing an options appraisal the three options that you should include as a minimum are: Business as usual; ‘Minimum necessary’ to meet essential requirements of the fund or funder; and Preferred option, what you want to deliver.

Outputs

See Performance measures.

Outcomes

The benefits that occur as the result of actions, the reason for the actions being carried out, e.g. a press visit (the action) produces a press article (the benefit).

Performance measures 

Also called Outputs, these are the things that are actually done - the actions taken - to achieve outcomes, e.g. number of press visits, number of events attended.

PESTLE analysis 

A study of six macro-environmental factors that affect businesses and industries worldwide:

• Politcal factors.
• Economic factors.
• Socio-cultural/social factors.
• Technological factors.
• Legal factors.
• Ecological/environmental factors.

Pre-market engagement

Sometimes called ‘market engagement,’ actions the funder takes to publicise the fund in advance of the funding opportunity being launched, designed to create an active pool of applicants and good quality applications.

Project funding

Funding for a specific set of activities that have a defined purpose and timescale for delivery.

Project plan

A document that is used to manage a project. It lists activities, tasks and resources. A full project plan is not usually needed at application stage, a shortened version is usually sufficient. 

Qualification criteria

Minimum requirements that have to be met for a grant or funding to be awarded. 

RAG rating

Indicating the status of actions using colour coding. Often used in risk registers and project plans.

Risk register

A tool that captures and maintains information that may affect the outcome of the funded project, programme or role. Usually owned by the board or steering committee and checked at regular intervals.

 

Return on investment (ROI)

A calculation of the value of an investment versus its cost. It is often expressed as a percentage or ratio. In the case of grants the benefit (return) of an investment is divided by the cost of the investment. Some benefits are not financial and are called ‘soft benefits.’ Where possible, a monetary value is applied to them. 

Revenue funding

Revenue funding pays for things that are not physical objects or buildings, e.g. salary costs, refreshments, volunteer expenses, venue hire and publicity.

Social value

The wider financial and non-financial value created by an organisation through its day to day activities in terms of economic, social and environmental well-being. It includes things like happiness, well-being, inclusion, equality, employment and environment.

Soft benefits

Benefits that are not financial. 

Strategic fit

How an organisation or an organisation’s objectives and activities fit in with and link to other policies and initiatives in the external environment.

Streamlined Routes

A mechanism through which UK strategic objectives are promoted. They are created by the UK Government and used by public authorities to award low-risk subsidies in specified areas. Routes are pre-assessed by the UK Government to ensure they are compliant with the subsidy control regime.

Subsidies 

Any advantage provided by public authorities through state resources on a selective basis to any enterprise that could potentially distort competition and trade in goods and services. Subsidies can be either a grant, a tax break, a loan on favourable terms or facilities below market price.

SWOT analysis

A study of four different factors related to any situation:



 

• Strengths.
• Weaknesses.
• Opportunities.
• Threats.

VAT

Value added tax chargeable in the UK.

Value in kind

See Monetised value in kind.