Post on 02-Aug-2018
transcript
The 2017 to 2019 PERFORMANCE MANAGEMENT RULES
Performance Point Processes for Non-Levy Delivery
April 2018 Funding & Performance Management Rules V6
Rebecca Rhodes, Senior Associate, UVAC
r.rhodes@bolton.ac.uk
Agenda
Performance Management – Purpose & Principles
Performance management cycle and timetable
Payments and earnings
Typical issues: Over and underperforming
Management processes good practice
Performance Management Points – Process & Parameters
Developing Business Cases & Growth Cases
Performance Management Documentation (with hyperlinks)
Provider Agreement
Institution XYZ&
ESFA
Annex B, C and D
Contract for Services
Institution XYZ& ESFA
PMP Rules Scope These performance-management rules supersede previous versions and cover :
Apprentice Start Date Type Funding Rules
Before 1 May 2017. Carry-in 2016 to 2017
1 May 2017 and 31 December 2017 Carry-in 2017 to 2019
1 January 2018 and 31 March 2018.3 monthrun -down allocations
2017 to 2019
from 1 January 2018 Starts 2017 to 2019
PURPOSE AND MINDSET
The Skills Funding Letter 2017 to 2018
1 – Apprenticeships‘This funding will support high quality apprenticeship training for individuals aged 16 and over.’
For 2017-18, we are investing: • £1.9bn to fund participation in apprenticeship training for all ages;
The ESFA Funding Letter – Budget Annex
NOTE the separate funding lines for
16-18; and 19+ age groups
The finance table shows the funding available for the 2017-18 financial year and indicative projections for 2018-19 and 2019-20 (actual budgets will be set out in due course).
NON LEVY Performance Management ESFA Activity:• ESFA are responsible for driving up apprenticeship volumes and buying
quality apprenticeships
• They actively manage their ‘demand led’ budget to achieve this :
– Tracking delivery volumes from your HESA/ILR Return
– Reviewing history and modelling volumes and spend every month
– Removing funding from under-performing providers at set points in the cycle
– Calculating typical profiles based on history
– Taking stock at a Performance Management Point and redistributing funds
– Ensuring that their funding goes to the providers who most need it
• ESFA will take action to clawback and redistribute funding when your delivery against a national spend profile does not look likely to be spent
Your Non-Levy Apprenticeship Contract
• From this you must fund:
– Delivery of apprenticeship standards and frameworks
– Additional employer incentive payments
– English and Maths
– Learning Support
– Subcontractors who deliver apprenticeship standards and frameworks
– End Point Assessment
Performance Management for You • Managing Financial Performance means :
– Ensuring sufficient volumes to draw down your full contract value in a steady profile
– Ensuring all apprentice and employers are eligible for the funding you draw down
– Not going over contract
– Submitting growth cases with strong evidence
– Managing subcontractor financial and performance management
• Managing the Risk of funding clawback means: – Your ILR/HESA and Earnings Adjustment Statement must be accurate, up to date
and submitted timely
– Your paperwork MUST match and support your ILR/HESA record
• Managing Quality Performance means:– Ensuring that starters stay, complete and achieve
– Quality processes ensure successful QAA outcome
– Remaining on the RoATP
ESFA making decisions based on your Track Record :
• ESFA assess your ability to deliver and will automatically remove funding if you are not on a trajectory indicating that it will be used
• They will simply look a your data returns and calculate what you appear to need
• Governance is key:– You must know what your actual and planned spend is -
– You must control the flow of activity, employer pipeline and not over or under spend.
– Take action if you are under performing
– Do not commit over your contract value – ESFA are not under any obligation to honour any over spend
• Contracts and growth requests are always ‘subject to affordability’
• You cannot vire funding between the two funding lines lines - each must be managed as a distinct contract line cap
Performance Management
Financial Performance Management 2018• 2018/2019 Performance Management applies to all starts from 1 Jan 2018• Separate advice for starts that are continuing from 2017 (see Annex B)• Two financial years:
• Jan 2018 to March 2018• April 2018 to March 2019
• First review point - April 2018• reviews your starts activity from Jan to March 2018• Will increase your contract value if you are delivering over the national profile
• Currently two performance points – July and November • To increase your allocation where there is ‘evidence of demand’ from non levy
paying employers that you cant meet through your existing funding • To reduce your allocation where your performance is below the published
standard national profile tolerance (8%)• You may submit a growth request at either point
• ‘we will not make an automatic payment for delivery over your contract value ‘ • Don’t overspend your contract value - this is always at your own financial risk• We may adjust your contract value or growth request if there is a risk that the
demand will exceed budget l
ACTIVE Budget Performance Management
Annex C – Standard national profiles
Apprenticeships new starts from 1 January 2018 performance-management points, tolerances and minimum thresholds (table 3 p66)
Financial Performance Management
Reductions • Automatic reduction if your performance is outside the % tolerance• Reduction will mean removal of contract £ to cover all under delivery to date unless it
is:• <£25,000 • impacted by data issues outside your control or • you have an atypical historical delivery pattern – speak to your provider manager
early
Growth• ‘we will not make an automatic payment for delivery over your contract value’ • Don’t overspend your contract value - this is always at your own financial risk• If there is growth, there will be priorities – TBC Those employers with a contract
signed i.e. evidence of growth..? Standards..? 16-18 year olds..? • No growth funding? – look for a provider who is looking for a subcontractor
Growth Requests
Growth Table Two tables :Adult and 16-18.
Both split by funding band
Subcontractors
Growth Case Narrative
Growth (Case Narrative)• Rationale
– What has changed to cause you to need growth e.g. more marketing, more interest due to your expanded offer into new curriculum areas - why was your original forecast an under estimate ?
– What is the local and regional economy doing - is this a factor? - any stats ?
– List of employers waiting, ideally ready to contract – name them
• Capacity– Prove you have the capacity to respond and are ready
– Set out staffing levels to prove you ca n absorb the growth – academic and administration
– Explain how facilities and other equipment needed is in place to respond
– Overview of growth to date and ‘track record’ and how you’ve coped
– Demonstrate that management processes and risk management are in place and saw this coming
• If you think you need growth but are under the SNP:– Speak to your provider manager
– Provide evidence that you will a) reach and b) exceed the profile and your overall contract value over the coming months - employer and apprentice details essential
• Track Record and trajectory must speak for themselves • You can demonstrate that you can achieve the growth before the contract
expires • Understand what you will be paid and when and when funding will be paid out –
map and forecast : – Subcontractors – Employer additional payments – Learning support – English and Maths
• Create a pipeline for employer starts and monitor the profile and actuals (including subcontractor volumes) closely
• If you do have an atypical profile, discuss with the provider manager team at the start of your contract
• Not meeting your planned volumes is not the same as having an atypical profile • Evidence of demand means named employers • If you have had a delayed profile / later starting than planned explain why e.g.
employer contracted later than they had indicated - make clear that other starts profiles are not affected i.e. this is a blip not a wave
Managing Allocated Funding
Performance Management Good Practice
Performance Monitoring delivers Performance Management (‘Unless you know; you don’t know’)
Monitor and model based on actual take up and forecast frequently - £££, volumes, achievement/completion forecasts
Set trigger points on monitoring (£ , volumes and apprentice progression) and ACT QUICKLY
Ensure you have a plan to increase or manage starts. ACT if your forecast indicates a shortfall or is overheating
Ensue HESA/ ILR submissions are timely and supported by the paperwork – and check
Rigorously enforce governance arrangements (Internal and with subcontractors )
Questions
Please use the questions facility to add your feedback and comments about the webinar
Any queries or anomalies - please email me r.rhodes@bolton.ac.uk