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