The 2017 to 2018 Funding Rules
Rebecca Rhodes, Senior Associate, UVAC
[email protected]
Agenda
Funding Rules – Purpose and Tests
Evidence & Documentation
Key Eligibility Rules
Change of Circumstance
Set Up Tips
PURPOSE AND MINDSET
The Apprenticeship Programme structure : funding
agreements
Employer
Provider Agreement
ESFA
Provider
4
Structuring a Services Contract
Contract
Standard
Terms & Conditions
Standard
Terms & Conditions
about any agreement of service
about any apprenticeship
Change of Terms
For ESFA
Compliance
For You
Standard
Terms & Conditions
about this apprenticeship
Individual
Specifications & Schedules
About this apprentice
Payment
Eligibility
Disputes
Quality
Subcontracting
Responsibilities
Binding Terms and Conditions with Sanctions
ESFA & Employer
ESFA & Provider
Funding
Agreement
Institution XYZ
&
ESFA
Provider & Employer
Contract for
Services
Institution XYZ
&
Employer ABC
• As a ‘Main Provider’ The Funding Rules are part of yours and the employer’s
Terms and Conditions for delivering apprenticeships using funds in an
employer’s digital account or through co-investment
• They sit alongside your funding agreement & the ILR Specification
Funding Rules Documents & Format
• Significant linked suite
– Funding and performance management rules for training
providers
– Apprenticeship funding: rules and guidance for employers
– Apprenticeship funding: rules for employer providers
– Addendum to the apprenticeship funding and performance
management rules - May 2017 to March 2018
– Apprenticeship technical funding guide for starts from May
2017
– Guidance for Returning Apprenticeships on the ILR from 1 May
2017
– ILR specification 2017to2018
The
Funding
Rules
Recovery of Funds or Action by ESFA
• will review and monitor your training for value for money. If
ESFA think this is not the case:
– ESFA may reduce the amount they pay you from government,
employer or digital account funds after consulting with you
• may take action to recover all or part of government funding if
they are satisfied you have breached the funding rules
– including payments made via the digital account, via co-investment
and including any additional payments
– for payments that you or the employer are not entitled recruitment
practices detrimental to brand or apprentice
• may withhold payments until all employer co-investment has
been collected
• Will monitor apprenticeship data and HMRC data to ensure
roles are genuine. Will take action if recruitment practices is
detrimental to apprenticeship or apprenticeship brand
Employers – also have responsibilities
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•
•
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The levy employer signs the ESFA
Agreement for Employers and through this
is bound by the Funding Rules and agrees
to :
‘Comply ..[..].. at all times with the
requirements detailed in the Funding
Rules’ [clause 5.1a]
Assist and cooperate with the Training
Provider to enable them to deliver the
training in compliance with the Funding
Rules …[clause 5.1c]
‘The employer may not, without the prior
written consent of the EFA, assign,
transfer, subcontract, or in any other way
make over to any third party the benefit
and/or the burden of this agreement.’
clause 19.1
Funding Rule Test
1. Was this apprenticeship eligible for the level of
government funding that I claimed?
2. Can I prove
this, for this
apprenticeship,
through the
evidence I have
collected?
3. Can I prove that my
employer has met their
responsibilities for this
apprenticeship through
the evidence I have
collected ?
4. Can I prove that I held
eligibility evidence for
this apprenticeship
before the
apprenticeship started?
5. Does my ILR/HESA record accurately reflect what happened
and when in this specific apprenticeship?
DOCUMENTATION
RATIONALE
General Evidence & Document Principles
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self declarations need to state the
apprentice or employers details and
what is being confirmed
evidence can be electronic but you
must have other systems and
processes to check apprentices exist
and are eligible for funds
document, collate and store evidence
when an exception occurs
document collate and store evidence
when a change of circumstances
occurs
provide confirmation that evidence is
correct when it is collected
collect evidence that explains the
price e.g. skills assessments
Collecting eligibility evidence is
paramount BEFORE THE START .
• Evidence Pack
– single (can be virtual) store of
evidence to support funding
claims
– P207 lists the 28 evidence items
needed
– must provide evidence that the
apprentice exists
– reissue revised documents and
keep all copies
Key Documents - at the start:
– Eligibility declarations
– Apprenticeship Agreement
– Commitment Statement
– Written Agreement with the
employer
– Written agreements with
subcontractors
Are evidence collection & management arrangements
FUNDING RULE –
sufficient?
establish who is
accountable for
compliance with
the rule
Implement compliance
checking/management
process
Confirm storage
location
Identify best
collection /
evidence source
IMPACT ON
RESOURCING,
SKILLS AND
KNOWLEDGE
one expert,
many ‘impact
aware’
Confirm when copies
& distribution are
required
Find a point of
process where the
evidence is already
collected/
discussed/reviewed
Confirm where
signatories are
required
Update/create
collection
documentation
Evidence Sources & Accountability
Provider - including :
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•
•
Employment and wages
satisfied apprenticeship is the most appropriate
route
new job role or ‘Significant learning’ gap
rationale
‘Materially different’ rationale
minimum duration
not being double funded
Prior learning assessment and evidence for all
programme content incl English and maths
Price rationale
Apprentice age
Employer size (<50 exemption from the 10%)
Collection of 10% employer contribution
reporting in June Sept December and March
Education Health Care Plan and /or approval to
share from the apprentice
Most included in :
• Commitment Statement
• Apprenticeship Agreement
• Written agreement with the
employer
• all part of the Evidence Pack
Employer evidence to you
•
•
•
•
written confirmation State Aid
declaration
Employee numbers over the 365 days
before apprentice is recruited
evidence that the apprentice had
time to complete their
apprenticeship in their working
hours.
finding alternative opportunities for
redundant / end of contract staff
Managing Compliance
Provider Responsibilities
• YOU MUST CHECK
– Eligible learner
– Eligible employer
• You must act if at any point you
uncover an error
– apprentice reviews
• Reasonable steps to check
– Genuine Job
– 20% off the Job Training
– Wages
• Duration and hours
– Standards requirement
– Minimum duration
• Use of Funds
• Naturally occurring evidence
– Evidence of employment
– Be satisfied ‘most appropriate
programme’
– New job e.g.
• Job Description
– Individual needs significant new
knowledge or skills e.g.
• New tasks / widening remit
• Specialist to generalist in a team
• Development need from a performance
review
• Restructuring
FUNDING RULES IN PRACTICE
Is the Apprenticeship Eligible?
• Provision is fundable from
the 90/10 or levy
• standard or framework
published as approved for
delivery
• Can still go ahead when
there aren’t any End Point
Assessment Organisations
appointed
• minimum 20% off the job is
designed into the
programme
• all activity is fundable and
eligible
• employer additional costs
are clear
• Provider listed on the RoATP
and RoAAO
• Holds a contract for services
with the ESFA for non-levy
employers
Eligible Costs
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Materials ‘should not normally’ have a lifespan beyond the individual
apprenticeship being funded
Costs of an apprenticeship taking part in a skills competition if employer and
provider agree participation ‘directly contributes to helping the individual achieve
the apprenticeship standard’
An apprenticeship at the ‘same or lower level than a qualification that they already
hold, if
– the individual ‘will acquire substantive new skills’ and you can evidence that
– the content is ‘materially different’ from any previous apprenticeship or
qualification
– You hold evidence of this e.g. (e.g. via a skills analysis , previous/ current
module mapping )
If the apprentice is redundant ‘through no fault of their own’:
– And you made reasonable efforts to find an alternative employer
– their training and assessment is fully funded within 6 months of planned end
– If EPA is more than 6 months away there will be funding for 12 weeks
Ineligible Costs (p82onwards)
• Enrolment, induction, prior assessment, initial diagnostic or similar
activity
• Training, assessment, exams or tests in any skills and knowledge
solely and specifically required to acquire licence to practice, or the
certification of L2P - applies even where the licence is required in
the apprenticeship standard.
• Repeating the same regulated qualification previously achieved
unless is is a requirement for the apprenticeship or for any GCSE
where a grade C or 4 or higher ……
• Registration, examination and certification costs for non mandatory
(not specifically listed in the standard) qualifications
Ineligible Costs
•
Time spent by line managers e.g. supporting or mentoring apprentices or time by other
staff arranging support except for the apprenticeship
•
Capital purchases ‘long-term assets’ e.g. ICT equipment
•
Specific services not related to the delivery and administration of the apprenticeship.
This includes the recruitment and CPD of staff, company inductions, managing agents
and those providing a brokerage service to an employer or provider
•
Apprentices must not be asked to contribute, including when they leave the
programme early. You / employer ‘must not’ claim funds back from an ex-apprentice
•
Cant use a student loan to pay for their apprenticeship (where an individual transfers
to an apprenticeship from a full-time further education or higher education course,
and this course has been funded by a student loan, this loan must be terminated)
•
You must not pay incentives or inducements or any other payment not authorised by
ESFA to the employer in relation to any payment of the apprenticeship programme
Is this Role Eligible ?
• ‘Genuine Job’ (see p27)
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contract of employment
contract length sufficient for minimum duration and apprenticeship scope
Wages
support
• When the apprenticeship is achieved the apprentice should remain with
the employer, where a job opportunity continues to exist and where the
apprentice wishes to remain. Where this is not possible, the apprentice
must be supported by their provider and employer to seek alternative
opportunities.
• The ESFA will monitor apprentice destination data and HMRC data to
ensure that job roles are genuine and are not created purely for the
purposes of the apprenticeship programme.
Is this Role Eligible?
• Zero hours (p48)
– must meet all other rules, and apprentices given ‘the same
opportunity to achieve their apprenticeship’
– Must complete their apprenticeship in their working hours incl off the
job – if this is not possible = break in learning
• Exceptions to the resident in England rule (p56)
– Apprentices must spend ‘at least 50% of their working hours in
England’ during their apprenticeship
– Funding for Employees living in Scotland, Wales or NI is with their
devolved government for those not fitting this category
– Those who travel outside the UK or work offshore must have a
registered work location in England
Off the Job Training (P31onwards)
• Must not be delivered as part of normal working duties
• Must be ‘directly relevant’ to the apprenticeship
• Could include
– The teaching of theory (for example, lectures, role playing, simulation
exercises, online learning, manufacturer training).
– Practical training; shadowing; mentoring; industry visits and attendance at
competitions.
– Learning support and time spent writing assessments/assignments.
• Does not include
– English and Maths, progress reviews and on programme assessment
– Any training outside apprenticeship normal working hours (also outside the 20%)
• Providers must keep evidence that the apprentice spends 20% + on
off the job training
• Employers must provide you with evidence that the apprentice had
time to complete their apprenticeship in their working hours. You
keep this in the evidence pack
Is the Employer Eligible ?
• The number of staff counted for the additional payment / waving of
employer contribution is based on the average no. employees in the 365
days prior to the day the apprentice is ‘recruited’.
– You then add the apprentices onto this figure to establish eligibility.
• ESFA monitoring for withdrawals and breaks in learning followed by
starting on a new standards to check for abuse
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Genuine Job
Paying wages
Commitment to support
20% minimum off the job, 80% on the job must happen in working hours
but away from normal duties
Is this Apprentice Eligible
• Resident & Right to work in England - Unusual eligibility – Annex A
• Age (for incentives and commitment statement signatory)
• Role allows time to undertake and complete an apprenticeship in the working
day
• if they have a student loan this must be terminated
• they cannot under take more than one apprenticeship simultaneously – must
not be enrolled on another apprenticeship or another DfE funded FE/HE
programme at the same time as any new apprenticeship they start
• Exceptions to the resident in England rule (p56)
– Apprentices must spend ‘at least 50% of their working hours during their
apprenticeship in England’
– Funding for Employees living in Scotland, Wales or NI is with their
devolved government for those not fitting this category
– Those who travel outside the UK or work offshore must have a registered
work location in England
Subcontracting – your accountabilities
If you fail to check,
SFA will place
restrictions on your
future use of
subcontractors
RoATP
Main
owning the employer
relationship
Must conduct all
or ‘some’ of the
training
Supporting
Not on RoATP
Employer-Provider
Must not exceed
£500,000 delivery
each year*
Can only train their
own staff (or
connected
company/charity)
Must not deliver
100% of the
apprenticeship
Must evidence actual
costs of delivery as
main or subcontractor
Must not exceed
£100,000 delivery
each year*
*The first ‘year’ is
1 May 2017 – 31 March 2018
Is the Subcontractor Eligible
•
Subcontracting Rules are different for non-levy and levy for 2017 to 2018
– Page 121 onwards for Levy
– Separate addendum for non Levy
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You must have a legally binding subcontract contract
with the subcontractor with specific terms (p142)
Your employer agreement must set out how the delivery
of the apprenticeship including the subcontracted
elements will work (para 133 for detail)
There are special conditions for subcontracting for all
subcontractor statuses (P143 onwards)
You must act in an open and transparent way
– any links between you and any subcontractors must be
set out in the employer agreement
•
You must carry out due diligence checks and not subcontract if you feel the
contractor is unsuitable (and a subcontractor cannot subcontract)
•
You are responsible for dispute resolution
–
Employer and Subcontractor Agreements need to be ultimately enforceable through the courts
Scenario Part 1
• A 23 year old Scottish employee
has been with the company for
four years
• They completed the first 18
months of a similar degree to
the one which underpins the
Standard four years ago then left
university
• The 27k standard has a
mandatory minimum duration of
24 months but a recommended
length of 48 months
• The employer has 48 employees
• Comment on
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Price
Eligibility
Evidence
Payment
Actions you would take
• What would you say to
the employer
Scenario Part 2
• The employer is part of a larger
Group of Companies who in total
have 3,000 staff
• The employee works 20 hours per
week
• The employee lives in Scotland
and is working in England on
secondment for the next 2 years
• The parent company have
informed your company that their
levy share is 6k annually
• The employee is an Olympic Bog
Snorkling gold medal prospect
and will be attending the winter
Olympics in 2018
• Comment on
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Price
Eligibility
Evidence
Payment
Action you would take
• What would you say to
the employer
Scenario Part 3
• The employee is a former care
leaver but they have not told
their employer and do not want
them to be told
• The employer wants you to
subcontract with one of two
providers, one of whom you
know to be poor quality, but the
other, though delivering
apprenticeships is not on the
RoATP.
• The subcontractor would deliver
two specific modules from a
different degree – one is relevant
to the apprenticeship the other
from a different discipline
• Comment on
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Price
Eligibility
Evidence
Payment
Action you would take
• What would you say to
the employer ?
PRINCIPLES & RULES UPDATE
Price and Payments
• The price included the ILR must not include English and Maths, VAT,
anything above the cap, framework uplifts
• 20% end point amount is based on the lower of price agreed /cap
• Once agreed price should not increase unless :
– End point costs not known at the start (It is ok to add the assessment
organisation and the price in at a later date)
– Other change of circumstance
• If there is a change of circumstances the ILR field for price, and employer
contribution will need to change
• You can charge VAT on £ amounts over the cap
Price and Payments
• You have 30 working days to pass the additional payments to the
employer
• Funding is deducted in the month it occurs, NOT ‘saved’ from an earlier
month …….
• Levy value in an employer’s account may change if reconciled by HMRC.
ESFA will absorb any discrepancy in levy and collect employer contribution
direct
• Framework uplifts are paid across the life of the apprenticeship
• Performance management points and tolerances apply for non levy
funding agreements. Additional incentive payments, English and maths
and learning support are paid out of your contract value
CHANGE OF CIRCUMSTANCE
Situations when you must refer to
a) the funding rules b) technical funding guide c) ILR
guidance for data returns
Change in Circumstances
•
• Change in Price
• Break in Learning
– beware the impact on duration
• Apprentice withdraws
•
• Change in apprenticeship
– restarting on 1st may
• Change in main provider
• Change in employer
•
• Redundancy
– more than 6 months before the
end of the programme
– less than 6 months before the end
of the programme
If any element of the agreement for
the apprenticeship between you and
the employer changes; revise and
reissue or create new agreements
Don’t guess what to do in an
unfamiliar situation – check what to
do:
[email protected]
Employer may also pause or end an
apprenticeship via the
Apprenticeship Service
Action that you must take as set out in
a) the funding rules b) technical funding guide c) Guidance
for returning apprenticeships on to the ILR
• Funding Rules (P33+) set out what must /
will happen to :
• costs/price, apprenticeship duration
and key dates, funding, additional
payments
• employer actions needed in the
apprenticeship service digital
account
• Technical Funding Guide sets how
changes affects funding calculations and
earnings
• ILR Guidance for Apprenticeship ILR
Returns sets out what should be changed
in the ILR/ HESA return
You Must Update ILR/HESA
• funding and price / revise price
• pay back over payment of
employer contribution (as
per your agreement)
• repay government over
payment
• Apprentice status changes
• Apprenticeship dates
• Price /Residual Price
• You must reissue key documentation
to all parties :
• commitment statement
Working with the Funding Rules
Collect and confirm evidence, complete commitment statement, apprenticeship agreement, services
contract and begin evidence pack before the apprenticeship starts
Cooperation and collaboration in across academic, finance, employer engagement, records,
admissions teams is key to share status of the apprentice on their programme
Create governance, briefings and processes to ensure that everyone who needs to know
does know
change of circumstances must be well known, automatic, trigger points for cross
organisation action - i.e. How would the team returning the monthly HESA know?
ACT QUICKLY when something occurs that affects eligibility for funding, or price
Don’t guess - [email protected] or speak to your Provider Manager
Update the HESA/ILR – and employer action is required on the apprentice record to release the
payment ‘double lock’
Close relationship with the employer is key – who carries out the employer/ apprentice reviews?
early warning of changes/ action to ensure payment
Questions
For help Contact :
• ESFA Provider Manager
• [email protected]
•
Any queries or anomalies - email me [email protected]
For new Apprenticeship providers
UVAC Deep Dive webinar programme to be run summer / autumn and includes :
• Apprenticeship Documentation
• The ILR and Data
• Performance Management
• Subcontracting
• On programme assessment and review