LSC Funding Implementation Team Funding Guidance 200809 Presentation v1

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(No Transcript)
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LSC Funding Guidance 2008 Autumn 2008 v3 30
October 2008 By Funding Policy Implementation
Team
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Funding Guidance
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LSC Funding Guidance 2008/09

• LSC Funding Guidance 2008/09 is being published
  as
• the following separate documents, listed in order
  of
• expected publication
• Funding Rates
• Funding Formula
• Funding Principles, Rules and Regulations
• Learner Eligibility Guidance
• Funding Compliance Advice and Audit Guidance for
  Providers
• Funding Claims and Audit Returns
• Addendum to Funding Guidance
• this will only be published on LSC website
  during 2008/09 to update any of the above
  documents as necessary during the year and will
  not be printed by the LSC.

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Funding Returns 2008/09
Learner Responsive- Likely to involve 3 returns
but 2 adjustments (supported by ILR
data?) Similar to current returns
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Provider Factors
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Provider Factor

• The Provider Factor includes the following
  drivers of relative cost (Learner Responsive)
• Programme Weighting Factor (PWF)
• Disadvantage Uplift
• Area Costs Uplift
• Short Programme Modifier
• Success Factor

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Provider Factor (ERM)

• Programme Weighting
• Average for contracting
• Actual for payments
• Disadvantage
• Average for contracting
• Actual for payments
• Applies to Apprenticeships only
• Learners home postcode
• Uses IMD2004
• Area Costs
• Average for contracting
• Actual for payments
• based on postcode of delivery location
• Retention and Achievement Factor
• Only used for contracting
• Actual retention and achievement of individual
  learners for payments

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The Funding Formula (ERM)
Standard Learner Number (SLN) X National Funding
Rate X Provider Factor (prior year data for
contracting or actual activity for
payments) Additional Learning Support
(ALS) FUNDING CONTRACT OR PAYMENTS IN
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ERM - Actual Payment Formula Train to Gain
Learner SLN X The Learner/Learning Aims
Programme Weight x Area cost Uplift X National
Funding Rate FUNDING PAYMENTS IN
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ERM - Actual Payment Formula -Apprenticeships
Learner SLN X The Learner/Learning
Aims Programme weight x Area cost uplift x
Disadvantage uplift (postcode of
learner) X National Funding Rate Learner
ALS FUNDING PAYMENTS IN
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Audit Compliance Advice
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Funding Compliance Advice 2008/09

• Introduction
• This session will introduce the Funding
  Compliance Advice Audit Guidance for Providers
  2008/09 now published on LSC website, and covers
• Context and theme
• Relationships with providers
• Provider funding risks eligibility existence
• Current assurance arrangements
• LSC intervenes in inverse proportion to
  success

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Key Themes LSC Funding Guidance 2008/09

• Fundamental principles as set out in PRR
  paragraphs 21-22
• Funding should reflect incurred costs of
  efficiently delivered provision with
  appropriate contribution to overheads
• Fair distribution of funding between colleges and
  partner organisations (see Para 331 of PRR
  2008/09)
• Local LSC intervenes in inverse proportion to
  success (may include a risk assessment here)
  (FCAAG Paragraph 12)
• LSC to recognise learner success as a key factor
  in reducing funding audit risk assessment of
  providers

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Funding Compliance Advice - Overview

• Six sections in document
• 1 Format and Background
• 2 Evidence of Learner Existence Eligibility
• 3 Partner Provider Provision
• 4 Additional Learner Support
• 5 Withdrawals
• 6 Additional advice on Individual Qualifications
  and Delivery
• Guidance very similar since 2004, but includes
  new
• summary guidance in Annex B in respect of the
• Employer Responsive Funding Model.

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Section 2 Learner Existence Eligibility

• Compliance evidence of learner existence and
  eligibility for all providers
• Records of learner existence and eligibility
• Learning agreements
• Enrolment forms
• Registers
• Withdrawal/transfer forms
• Achievement
• Documentation originals held by colleges not
  partner providers
• This section is repeated in LSC Learner
  Eligibility Guidance

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LSC Funding Compliance Guidance

• Evidence of eligibility existence (1)
• Paragraph 41
• The enrolment form and learning agreement may be
  combined to form one document, which should
  contain all relevant information
• But for each learner a provider should have as a
  minimum a signed combined form Paragraph 38

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LSC Funding Compliance Guidance

• Evidence of eligibility existence (2)
• Paragraph 44
• Register systems need to be proportionate in
  delivering benefits to providers that offset the
  costs involved in running these systems. The LSC
  offers no advice or preference on types of
  systems, which may be either paper-based or
  electronic, or a mixture of such systems.

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LSC Funding Compliance Guidance

• Evidence of eligibility existence (3)
• Paragraph 60
• Requires providers to retain records. How and
  method for providers to determine but records
  that underpin funding claims should be treated as
  financial and legal records. These should be
  consistent with providers usual rules and
  methods for financial record retention.
• (paper or electronic ?)

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SLN and Learners - Starts Withdrawals
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Section 5 Withdrawals in DLF

• Employer Responsive Model similar to previous
  WbL guidance, and
• Providers expected to accurately record
  withdrawals
• Withdrawals must be very accurately recorded
  where learners withdrawing before or very near
  SLN qualifying start periods
• For monthly programme payments learners must be
  in learning on the last day of the month

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Start

• Annual SLN will be counted when a learner is
  deemed to have started.
• A learner is deemed to have started a learning
  aim once they have remained on that learning aim
  for the period of time defined in the table
  below
• For learning aims that span more than one
  academic year, starts are determined separately
  for each year, in line with the approach of
  calculating an Annual SLN value separately for
  each year.

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Start and WithdrawalLearner Responsive Model

• A learner is considered to have withdrawn from a
  programme of study
• if they
• are known to have withdrawn or
• have not attended class for 4 continuous weeks.
• The withdrawal date is the last date of actual
  attendance recorded in the
• ILR.
• If a learner has withdrawn from a programme
  before the start
• qualification period they do not generate any
  Annual SLN in that year.
• For more information, see Funding Formula 2008/09.

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Start and Withdrawal (1)Employer Responsive Model

• A learner is considered to have started a
  programme if they meet the minimum qualifying
  period 6 weeks for courses of 24 weeks or more.
• In order to claim funding, the learner must still
  be in learning on the last day of the calendar
  month. Funding is claimed monthly in arrears in
  the ILR.

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Start and Withdrawal (2)Employer Responsive Model

• A learner is considered to have withdrawn from a
  programme of study if they
• - are known to have withdrawn or
• - no evidence of participation for 12 weeks.
• If a learner has withdrawn from a programme
  before the start qualification period they do not
  generate any SLN instalments in that year. The
  withdrawal date is the last date in the ILR of
  actual attendance.

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Monthly Payments

• Profile Payments (based on ILR start and end
  dates)
• A learner starts on a 9 month programme.
• In terms of programme payment (75), the rule is
• So for this example (n1) (91) 10
  instalments over 9 months. The first payment
  includes 2 instalments and subsequent payments
  are equal so 2/10 followed by 1/10 for 9 months,
  (that is 100 of the 75).

(n1) where n is the planned months on programme.
25 of total funding is then paid on achievement
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Achievement Employer Responsive Model

• Evidence on achievement for employer-based
  delivery is summarised in Annex B paragraphs 25
  and 26
• These paragraphs recognise both paper and
  electronic records as equally valid audit
  evidence of funding claims for achievement for
  both NVQs and Apprenticeships
• (either electronic or paper)

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Partnership Delivery
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Section 3 Partner Provider Provision

• Background of concept of Partner Provider
  Provision
• Ref to PRR paragraphs 325 to 335 and to Annex
  I (updated now for 2008/09)
• Reminder that all providers face risk of clawback
  for ineligible activity

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LSC Funding Compliance Guidance

• Eligibility and existence
• Partnership arrangements (franchise,
  sub-contract, partnership)
• Priority is good provision that contributes to
  targets
• Requirement to provide annual self-declaration of
  partners including (see Annex I of ILR Funding
  Claims and Audit Returns
• Who
• Type of provision and priority fit
• Volume and level of funding for out-of-area
  provision
• Levels of funding retained (top slicing)

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Section 3 Partner Provider Provision (2)

• Emphasis on directly funded LSC providers having
  proper controls on all partner provision
• Bring together all previous delivery
  arrangements that might be known as any of
  following
• Franchised provision
• Direct delivery with a partner
• Sub-contracted
• Any other terminology used to describe provision
  arrangements where another organisation used to
  deliver LSC provision by the LSC funded provider

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Section 3 Partner Provider Provision (3)

• Classification of Partner Provider Delivery
  Arrangements since 2004/05
• Primary LSC concern is now proper controls over
  provision and funding arrangements should not be
  an incentive to avoid proper controls
• Franchise discount ceases from 1 August 2008
• Minor change to Table 1 to recognise Employer
  Responsive Funding Model and provision delivered
  on employer premises

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Section 3 Partner Provider Provision (4)

• Table 1 defines provision for the likely risks
  of provision for DLF Funding Audits
• 7 sections in table, BUT
• Deals with problem of providers trying to
  reclassify provision to avoid unwanted
  classification, the overriding principle is now
• Local LSC will be final arbiter of where
  provision is classified and use common sense in
  applying table as well as the formal table
  guidance

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Section 3 Partner Provider Provision-Controls
advice

• Essentially previous FEFC/LSC controls guidance
  on franchised provision (but no references to
  older circular/guidance)
• Must be applied to all partner provider provision
  classified below black line in Table 1
• Application of controls is not now related to
  question of applying franchise discount
• Clawback remains for ineligible provision
• costs basis for plan led funding providers
• activity basis for non plan-led funding providers

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Funding Letters

• Local, Regional or National
• Letters issued in 2007/08 (and earlier) have no
  validity to 2008/09 funding arrangements
• New letters will be needed where providers have
  consulted either local LSC partnership teams or
  regional offices

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Annex B and QA
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Annex B Summary of Evidence Requirements for
Employer Responsive Funding Model

• Annex based on following 2007/08 Annexes
• WbL Funding Requirements Annex I
• Train to Gain Funding Guidance Annex H
• Annex B written for 2008/09 for providers only
  delivering employer responsive funding model
  provision to give a simple summary of main
  evidential requirements in main body of document.

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Annex B Summary of Evidence Requirements for
Employer Responsive Funding Model

• Annex includes (with paragraphs references
  first)
• 1 - 8 PFA and overall summary
• 9 - 13 LSC funding audit risk assessment
• 14 28 Summary of evidence requirements for
• learner eligibility, existence, achievement and
  withdrawal
• 29 30 TPS refer to web guidance on TPS
• 31 EMA
• 32 Retention of Documents
• 33 34 QA on TtG Funding questions answered
• 35- 43 Train to Gain Brokers Employers

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LSC Funding Guidance 2008 Autumn 2008 v3 30
October 2008 By Funding Policy Implementation
Team
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Questions and Answers on the Employer responsive
Funding Model

• Taken from the ILR Funding Compliance Advice and
  Audit Guidance 2008/09

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• Q1 What is qualifying supported learning?
• A Activities that count towards the 15 hour
  threshold for the higher funding rate. These are
  defined in the companion document Principles,
  Rules and Regulations, Section 9 Train to Gain,
  paragraph 529 and in Table 7.
• Q2 There is no longer a requirement to evidence
  two hours of structured learning prior to a
  start, but what date should be recorded as the
  start date of the programme?
• A The date the learner is expected to commence
  their learning programme, usually the date of the
  first learning contact between the provider and
  the learner. Contact before the learning date
  start in respect of pre-course administration
  would not usually be regarded as the learning
  start date except where accompanied by qualifying
  supported learning.

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• Q3 What evidence is required prior to starting a
  learner?
• A A provider needs a signed enrolment
  form/learning agreement confirming the learner is
  eligible for LSC funding and in accordance with
  the guidance in Section 2, paragraphs 3541. The
  start date entered on the ILR should accord with
  the answer to the question above. All the
  paperwork required under the guidance must be
  completed at some stage during the learners
  programme.
• Q4 For a course longer than 24 weeks, do
  providers have to wait until 6 weeks have elapsed
  before they can claim for their learners?
• A No, the claim is made as soon as a learner has
  started the programme. If a learner leaves within
  the first 6 weeks (42 days), any funding paid
  will be recovered in the following month after
  the provider has updated the ILR record.

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• Q5 Will LSC auditors expect all withdrawals to be
  entered on the ILR on a timely basis?
• A Yes. However LSC auditors will apply reasonable
  judgements on timeliness to recognise the fact
  that it is not a simple process for some learners
  to confirm their withdrawal and date of
  withdrawal. The LSC general advice remains that
  providers must give the learners every reasonable
  opportunity to continue on their learning
  programme. Further advice on withdrawals is given
  in Section 5 Withdrawals, and paragraph 183
  (Questions and answers on withdrawals) may assist
  providers in answering questions on withdrawal
  dates.
• Q6 For a learner who started in 2007/08, does the
  provider still need to provide evidence of two
  hours of structured learning?
• A Yes. The LSC auditors for 2007/08 will need to
  see this evidence in order to support any start
  payments claimed from the LSC in 2007/08.

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• Q7 For a learner who started in 2007/08, how many
  hours of activity does a provider need to
  evidence to justify the higher rate?
• A There are two parts to this answer
• If the learner completes on or before 31 July
  2008, then evidence of 20 hours of qualifying
  supported learning is needed to support claims
  for a higher rate funding.
• If the learner completes on or after 1 August
  2008, then evidence of 15 hours of qualifying
  supported learning is needed.
• Q8 If a learner who started in 2007/08 on the
  lower rate continues their programme in 2008/09
  but receives at least 15 hours of qualifying
  supported learning activity before completing it,
  are they eligible for the higher rate funding?
• A Yes. The LSC auditors will expect to be able to
  see the normal supporting documentary evidence to
  justify any such claims.

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• Q9 How does the provider decide whether a learner
  should be funded at the higher or lower rate?
• A The provider makes a judgement based on the
  initial assessment process. In 2008/09 these
  processes and judgements will be reviewed by LSC
  auditors. They will expect to see evidence of
  sound judgements as to funding rate determination
  that take into account all the LSC guidance in
  this respect. These audit reviews will also
  compare the mix of higher and lower funding rates
  in the ILR with the provider tender specification
  or any revised profile agreed with the LSC.

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• Q10 If a learner is funded at the higher rate
  but then leaves before they complete the
  programme, and therefore before the provider has
  evidence of the 15 hours, is the funding reduced
  to the lower rate?
• A No. The LSC does not normally expect the
  funding rate to be adjusted because of
  withdrawal. The LSC employer-responsive funding
  model will stop provider payments and, where
  appropriate, recover a proportion of programme
  funding for withdrawals entered on ILR returns
  for a later month. However, LSC auditors may
  review the funding rate claims for withdrawn
  learners made by providers who have much higher
  than average withdrawal rates and who cannot
  provide the normal evidence of the expected
  qualifying supported learning associated with
  higher rate funded learners.

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• Q11 If a learner is started at the lower
  funding rate but then requires support of over 15
  hours, does the provider receive the higher
  funding rate?
• A Yes, but, on a similar basis, the LSC expects
  providers to reclassify completed high-rate
  learners to low-rate funding if the required
  support falls below 15 hours. See also answers to
  Q8 and Q10.
• Q12 The LSC has specified the types of activity
  that can be included within the 15 hours. This
  includes completing distance learning materials,
  but what does completed predominantly during
  work hours mean?
• A Learners completing distance learning outside
  their normal shift hours can be included, as long
  as their learning is supported and managed by the
  provider. LSC auditors will primarily be looking
  for auditable evidence of supported learning
  contact rather than for the time of day such
  support is delivered, as providers are expected
  to respond as flexibly as possible to their
  learners training and educational needs.

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• Q13 Which additional Level 2s can be completed
  within the TtG programme?
• A The LSC has issued a list of NVQs by sector
  that are a priority and any of these can be
  delivered as an additional Level 2. The number
  and value of additional Level 2s that any
  provider can claim for LSC funding should be
  discussed and agreed in advance with the local
  partnership manager as part of the overall
  contract negotiations. Providers should also
  consider the next question (Q14) when deciding
  their enrolment policy.

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• Q14 What are the main changes in the audit
  software and the LSC audit approach for 2008/09?
• A Audit software The LSC is developing a DSAT
  for 2008/09 to profile provider ILR data to
  assist providers, LSC partnership teams and LSC
  auditors in reviewing providers funding claims.
  It is hoped that the DSAT will be extended later
  in the year to include learner success rates.
• ILR percentage mix of high- and low-rate funded
  learners
• ILR percentage mix of first Level 2 and
  additional Level 2 funded learners
• number of expected long learning aims with start
  and end dates within 24 weeks (168 days).
• A Audit approach In summary, providers should
  read paragraphs 913 at the start of this annex.
  The LSC will use the information in the DSATs
  above to inform both the provider audit risk
  assessment and the substantive work on the
  provider 2008/09 funding claims and ILR returns.
  The DSATs are also being amended to take account
  of the change to monthly payments in 2008/09 for
  Train to Gain learners, which require providers
  to evidence ongoing participation to support
  their monthly funding and payment claims on the
  LSC.

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Questions and Answers on Withdrawals

• Taken from the ILR Funding Compliance Advice and
  Audit Guidance 2008/09

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• Q1 If a learner is studying four AS-level
  learning aims over one year starting in September
  and withdraws from one of them after five weeks,
  may funding be claimed all year for the withdrawn
  learning aim?
• A No. The learner does not meet the qualifying
  period to count towards the learners SLN value
  for the year.
• Q2 When a full-time learner reduces their
  programme, at what point do they become a
  part-time learner?
• A If a learner is a full-time learner after the
  SLN qualifying six week start period they remain
  a full-time learner for statistical purposes for
  the whole year. For funding purposes, they would
  cease to be a full-time learner when their
  programme drops below 450 guided learning hours
  (glh) in the year.

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• Q3 If a learner stops attending class with no
  notification to the provider, when is the date of
  withdrawal?
• A The date of the last attendance on the learning
  aim is the date of withdrawal. This should be
  found in the class register.
• Q4 If a learner stops attending classes and a
  member of college staff telephones the learner to
  discuss his or her learning progress, can this be
  counted as guided learning and be deemed the date
  of withdrawal?
• A No. Guided learning must be specific to the
  course being studied. The telephone call
  described here is assistance of a general nature
  and is not guided learning.

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• Q5 If a learner stops attending classes and some
  time later the learner is persuaded to attend the
  provider to discuss his or her learning progress,
  can this be counted as guided learning and be
  deemed the date of withdrawal?
• A No. As in the previous answer, guided learning
  must be specific to the course being studied. The
  meeting described here is assistance of a general
  nature and is not guided learning.
• Q6 A learner on a one-year learning aim stops
  attending at Easter to revise at home yet turns
  up and sits the examination in early June. When
  is the date of withdrawal?
• A Early June. Sitting the examination is
  assessment of the learners achievement and may
  count as guided learning. In practice, given the
  relatively short period of non-attendance, it is
  unlikely providers would treat such learners who
  passed their examination and qualification as
  withdrawals, instead recording them as successful
  completers.

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• Q7 Is the date of withdrawal for open-learning or
  distance-learning provision worked out in the
  same way as for traditional provision?
• A Yes. It is the date of the last participation.
• Q8 In the learner-responsive funding model, if a
  learner completes the first year of a two-year
  programme and then fails to return for the second
  year, can the provider claim an SLN value for the
  second year?
• A No. In the learner-responsive funding model the
  learner must meet the start criteria for each
  separate funding year.

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Questions and Answers on Distance Learning

• Taken from the ILR Funding Compliance Advice and
  Audit Guidance 2008/09

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• Q1 Should the costs incurred in delivering
  programmes of distance learning be broadly
  similar to the funding the LSC provides and the
  tuition fees charged to learners studying these
  programmes?
• A Yes. The LSC may investigate cases where the
  costs incurred appear to be substantially less
  than the funding recorded or claimed and may
  recover funds if appropriate.

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• Q2 Should the log of tutorlearner contact
  correlate with the record or claim for tutor
  costs?
• A Yes. Where the total costs claimed for tutor
  contact time exceed the total log of
  tutorlearner contact logged, providers may have
  difficulty evidencing their distance-learning
  funding record or claim. Providers may decide to
  evidence this by relating the total of the
  resources made available by the provider (for
  example, tutor timetabled availability) to the
  resources claimed, and not by any attempted
  bureaucratic reconciliation of individual logs
  for learners and tutors.

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• Q3 Does the provider need to keep records of
  contact with the learner, whether by telephone,
  email, face-to-face or other means?
• A Yes, but only as needed for good educational
  practice. Evidence, as with all listed provision,
  will be needed of some actual tutor support for
  every learner for whom funding is being recorded
  or claimed.

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• Q4 Does the general guidance on out-of-area
  provision apply to distance learning?
• A Yes. The LSC provides a budget to local LSCs
  primarily for the education of learners in their
  own area. The LSC is not concerned about very
  small numbers of out-of-area learners, but all
  significant or material provision delivered out
  of area should be discussed and agreed with the
  LSC partnership team as part of the planning
  dialogue. The LSC regards provision as higher
  risk where it is delivered outside either your
  own or a neighbouring LSC partnership team area.

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• Q5 Why have some qualifications still not been
  given a listed rate?
• A The LSC is committed to listing as many
  qualifications as possible, but some
  qualifications have such a wide variety of
  delivered glh that an agreed listed value cannot
  be calculated.
• Q6 When assessing the reasonableness of funding
  claims, will funding auditors take details of the
  costing pro-forma individually to compare with
  actual costs, or will they look at the overall
  figures?
• A The LSC is interested in the overall funding
  position first and the detail second. If the
  overall distance-learning costs are reasonable,
  there should be no need to go down to any detail
  in audit or to look to change the funding being
  recorded or claimed.