New Provider presentations
Provider Risk and Assurance
Testing eligibility of apprenticeship
funding
Overview of our approach
 Testing is overseen by the Provider Risk and Assurance (PRA) function which sits
within the Department’s funding agency
 We test on a sample basis at both provider level and apprentice level
 We advise providers if they are selected for testing a few weeks prior to a visit and issue
our apprentice level sample a few days prior to the actual visit
 Our visits typically last between 3-5 days on site and we will work with you following our
visits to correct any data errors and resolve any impact on funding
 Our testing is complementary to other assurance work undertaken including market
entry checks, data analytics and focused thematic reviews
The funding audit
Subject
matter
Criteria
Evidence
Subject matter:
Individualised Record
 The data you have submitted
within the Individualised
Record (ILR) must be correct
 The specification of the ILR is
available online
 You must have controls in
place to ensure the accuracy
of data entered
 See
https://www.gov.uk/governme
nt/publications/ ilrspecification-validation-rulesand-appendices-2017-to-2018
Criteria: Apprenticeship funding
rules for providers
 We will test eligibility against the funding rules
published by SFA
 We convert the funding rules into a series of audit
tests set out within our published working papers
 We will publish our working papers later in the
year so that you can see specifically what we will
be looking at
 See
https://www.gov.uk/government/publications/appr
enticeship-funding-and-performancemanagement-rules-2017-to-2018
Evidence: Expectations set out
within the funding rules
 You must collate and retain an evidence pack for
each apprentice
 Evidence requirements are set out in the funding
rules
 Government contributions (including additional
payments) and payments from the digital account
are driven by the underlying ILR data which must
agree with the information and evidence you hold
on record
 See https://www.gov.uk/government/publications/
sfa-financial-assurance-funding-assurancereview-programmes
Examples of evidence we would
look at
Eligibility of the apprentice

Each apprentice must meet the
rules on who can be funded. The
funding criteria include (but not
limited to):
• the age of the apprentice

Prior learning

absence of any other
apprenticeship enrolments

Your evidence pack should include
evidence of the apprentice’s
eligibility and a record of what
evidence the apprentice has
provided.
A genuine job:

Your evidence pack should contain
information about the apprentice’s
job role and details of the
contracted employment.
• There must be a genuine job, and
they should be employed by that
company and on a genuine PAYE.
• They must be paid a legal wage
and receive support from the
organisation to carry out their role.
Examples of evidence we would
look at (continued)
Commitment statement


For each apprenticeship there
should be a commitment statement
signed and dated. The commitment
statement must include the
relevant information as set out in
the funding rules.
Your evidence pack should include
a copy of the commitment
statement for each apprentice.
Price and eligible costs

You can claim the cost of activity directly
related to the apprenticeship. You must
only claim eligible costs.

You must evidence how the actual cost
are calculated.
Examples of evidence we would
look at (continued)
 Off-the-job training
Employer payments
 The apprentice must spend at
least 20% of their time on offthe-job training, as defined in
the funding rules.

You must retain financial evidence to
show that the co-investment has
been paid by the employer where
relevant.

Any part of the price over and above
the cap must also be evidenced as
paid by the employer.

If you are claiming funds from the
digital account, there must be
appropriate evidence that the
relevant employer is or is linked to
the levy account holder (if different).
• Your evidence pack should
include details of how the 20%
off-the-job training will be
quantified and delivered. An
absence of this evidence will
result in a significant funding
error.
Examples of evidence we would
look at (continued)
At least 50% working hours
spent in England
Qualifying days
 Apprentices must spend at
least 50% of their working
hours in England over the
duration of the
Apprenticeship
 Apprentices must be in learning
for a minimum of 42 days
between the learning start date
and learning planned end-date
before they qualify for funding.
 Your evidence pack must
include confirmation of this.
 Your evidence pack must include
confirmation that learning has
taken place and that relevant
records are available to confirm
that.
Examples of evidence we would
look at (continued)
Start of learning
 Subcontractor arrangements
 Funding can be claimed only
from the date on which
learning activity directly
related to the apprenticeship,
or learning aim (for
English/maths), begins and
can be evidenced.
 You may subcontract the delivery of
part of an apprenticeship to an
approved external training provider,
subject to specific criteria within the
funding rules.
 Your evidence pack should include
details of any subcontractor, clearly
identifying who they are. This must
match the information reported to us
in the ILR.
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Data quality
 Good understanding of the subject matter, criteria and evidence
needed
 Maintain quality data throughout the year
 Adequate understanding of the data requirements
 Day-to-day management of data and data quality
 Regular review of funding monitoring reports and timely action to
correct any issues
 Challenge by management and sound data governance
Quality evidence
 Maintain quality audit evidence throughout the year
 Adequate understanding of the evidence requirements
 Obtaining sufficient appropriate evidence in a timely manner
 Retaining evidence securely
Thank you for listening