Approaching subcontracting deadlines...

 Subcontractor Declaration

Monday 31 August 2020 is the deadline to submit your subcontractor declarations, that means all organisations delivering ESFA funded adult prgrammes including;

• all apprenticeships
• traineeships
• 16 to 19 provision.
  
  

"Please also note that if you do not subcontract but receive direct funding from ESFA, you are still required to make a nil return."

See the ESFA Update for further details.

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Subcontracting Audit

31st July is normally the annual deadline for lead providers to obtain their subcontracting audit and submit their certificate, however, the ESFA has extended the deadline to 30th September 2020 as shown in the 15th July update newsletter.

"We set out in our funding agreements and funding rules the requirement for providers we fund to obtain an annual report from an external auditor that provides assurance on their arrangements to manage and control their delivery subcontractors."
P2 Providing external assurance on subcontracting controls.

Requirements are found in the Providing external assurance on subcontracting controls documentation.

If you're looking for an external auditor we highly recommend Andy Jewitt at Specialist Financial Solutions.

"Andy has, over the last few years, partnered with many lead providers, both regionally and nationally, who required an assurance report in respect of their subcontracted provision and has also engaged with lead providers on a consultancy basis in respect of their systems and controls ahead of ESFA financial assurance reviews."

 

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RoATP Reapplication Process Started!

First Round of Providers Notified

The ESFA's new style RoATP reopened in December followed by the first wave of providers to be invited to reapply.

Those providers on the register who are not yet delivering apprenticships will be given top priority and be included in this first round.

It's looking like this process is going to be very tough and providers MUST reapply during their specified time frame (approximately one month) or will be removed from the RoATP by 31st March 2019.

However, they will be able to reapply in the future.

“If your application is unsuccessful, ESFA will remove you from the RoATP and you will be unable to take on any new apprentices.”

Read the latest update in FEWeek.

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RoATP Recap

On November 26th the ESFA announced new details of the Register of Apprenticeship Training Providers redesign and a date of December 12th for RoATP to re-open.

The RoATP will be a tougher prospect for those wanting to become a lead provider and will also be a huge change for the many subcontractors who deliver less than 100K of apprenticeship delivery.

The new rules are highlighted in FE Week's article - ESFA scraps £100k threshold, forcing all subcontractors onto the apprenticeships register.

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Points to Note:

1. Providers must prove they have actively traded for 12 months.

2. Provide a full set of accounts.

3. No 100K limit! - All subcontractors to be registered by August 2019.

4. Must reapply in timeframe or be removed by 31st March 2019.

5. RoATP is open all year round.

6. NO CLOSING DATE!

7. Only 2 applications permitted per year.

8. Possible provider earnings limits being considered.

9. All existing providers on the RoATP to go through the new process!!

10. The ESFA will invite providers to re-apply - phase 1 in progress.

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“Our new RoATP application process ensures that only those that can stand up to our tough quality assurance entry requirements can access government funds to deliver apprenticeship training. We are also being tougher on subcontractors entering the market, to ensure a focus on quality training and mitigate risk to government funds.”

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Watch this space for further updates!

 

 

 

 

 

CONGRATULATIONS to all who have been successful in the Non-Levy procurement!

The ESFA announced the results of the non-levy tender in December and FE Week posted a list of the successful applicants.

It's been a shocking wait for training providers who began this process more than a year ago as this tender was an addition to the first RoATP opening.

For many it's a bitter sweet success to make it on the register as some haven't been able to deliver training without this additional contract, or indeed be eligible to apply for non levy procurement this time around due to the revenue constraints etc.

There's some good news regarding the appeal process though as FE Week announces:

•    Non-levy tender appeals are lucky for some

•    Grade two provider wins non-levy tender appeal!

According to FE Week 32% of the successful applicants will be delivering their first main apprenticeship contract, which makes for a very exciting time ahead!

With this in mind and considering all the new elements involved in apprenticeship delivery, especially for providers who have previously only delivered training as a subcontractor, I thought it would be a good time to recap on some of the new rules, regulations and available resources.

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Subcontracting rules

With the introduction of the Register of Apprenticeship Training Providers (RoATP) and its associated application rules

a main provider must directly deliver some of the apprenticeship training and are not allowed to subcontract it all out.
 
"At the outset of each apprenticeship, a main provider and employer will agree a plan for its delivery. You must directly deliver some of the apprenticeship training and/or on-programme assessment associated with each employer’s apprenticeship programme. By apprenticeship programme we mean the apprentices that are being trained for the employer that has chosen you. The volume of training and/or on-programme assessment that you directly deliver for each employer must have some substance and must not be a token amount to satisfy this rule. It must not be limited to a brief input at the start of each employer’s programme or involve delivery to just a few of a large number of apprentices."
P123 Page 20 Apprenticeship funding and performance-management rules for training providers v4

Take a look at my recent blog regarding the new subcontracting rules which will be in force as from January 2018.

There are some courses available to those who need support transitioning from delivering frameworks to standards, check out the Delivering Standards section below!

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Apprenticeship 20% off the job training and annual leave

The ESFA provided the following clarification announcement yesterday:

"To provide clarification, off-the-job training is an essential part of an apprenticeship and therefore, must take place during employed time. If, by exception, training takes place in an evening, or outside of contracted hours, this should be recognised (for example, through time off in lieu).

Should an apprentice not be able to attend a planned training session (due to leave, sickness, operational pressures) the apprentice should be given the opportunity to catch up on what they missed (e.g. by attending one to one sessions with their provider or using on-line learning materials). As above, this should take place during paid working hours.

The programme is sufficiently flexible to accommodate exceptional periods of leave or sickness."

ESFA Announcement 10-01-2018

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Monthly ILR submissions

As you know a main provider needs to satisfy all of the ESFA's contractual requirements such as monthly ILR submissions.

This can be very complex and frustrating and I've tried to provide as much information as I can in this area.

I recently wrote an updated blog post including the latest versions of documentation, ILR Entry tool and PDSAT application, so rather than repeat this here go check out that post!

As a provider of an ILR compliant MIS system I would also advise that you check out our system too, Athena MIS!

There's no need to mess about amalgamating XML files when you use Athena MIS, all learner types are automatically generated in one ILR.

We offer as much support as possible in creating your error free ILR's in Athena MIS, we will even validate and upload to the Hub for a small monthly fee!

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Ofsted

 In September 2016 Ofsted changed the rules regarding inspections of training providers to include subcontractors.

“Ofsted reserves the right to inspect and grade any subcontractor and its provision as a separate entity”.

Further education and skills inspection handbook Further education and skills inspection handbook Point 36, Page 10.

There has been several news articles in FE Week regarding this ruling as Ofsted haven't inspected any subcontractors as yet, but I would think this is about to change!

•    Halfon: ‘Ofsted must start inspecting subcontractors’ 

•    Milton appears to back subcontractor inspections

Regardless of being a main, employer or supporting provider all are subject to the scrutiny of Ofsted!

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Delivering standards

As many of the frameworks are being withdrawn training providers will have to deliver the new apprenticeship standards sooner rather than later.

I would imagine changing delivery methods from frameworks to standards could be quite daunting but The Education & Training Foundation

have a series of courses to help "progress your delivery of apprenticeship standards".

Delivering apprenticeship standards courses in:

•   adultcare, healthcare and dental

•   business administration and customer service

•   catering and hospitality

•   digital

•   Early Years

•   education and training

•   hair and beauty

•   leadership and management

•   motor vehicle and engineering

•   warehousing and logistics

Course fees are reduced for SET members.

"The Society for Education and Training (SET) is the new professional membership organisation of the Education and Training Foundation for practitioners working in the post-16 education and training sector. Since the close of the Institute for Learning (IfL) in November 2014, SET has taken on its legacy and continues to support practitioners through their professional membership."

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2017 -2018 Funding Rules

It seems such a long time since the new funding rules where announced for 2017 - 2018 funding year, but as yet haven't been in force due to the non levy procurement and Adult Education Budget delays.

As you know existing contracts where extended and the previous subcontracting rules are to continue until the new contracts for non levy delivery are awarded.

These are covered in Apprenticeship funding and performance management rules - addendum 1 which apply from 1st May to 31st December 2017.

The ESFA will announce the contracts to successful applicants in December for a 'hit the ground running' start in January 2018.

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Subcontracting Rules for Apprenticeships
 
As the 2017-2018 funding rules start as of January 2018, along with the non-levy contracts, I thought I would take another look at the main changes.

•    As the main provider you are responsible for the relationship with the employer.
 
"You must maintain the relationship with each employer at all times. You must not allow a delivery subcontractor to lead that relationship."
P132 Page 21 Apprenticeship funding and performance-management rules for training providers v4

•    As a main provider you must directly deliver some of the apprenticeship training and are not allowed to subcontract it all out.
 
"At the outset of each apprenticeship, a main provider and employer will agree a plan for its delivery. You must directly deliver some of the apprenticeship training and/or on-programme assessment associated with each employer’s apprenticeship programme. By apprenticeship programme we mean the apprentices that are being trained for the employer that has chosen you. The volume of training and/or on-programme assessment that you directly deliver for each employer must have some substance and must not be a token amount to satisfy this rule. It must not be limited to a brief input at the start of each employer’s programme or involve delivery to just a few of a large number of apprentices."
P123 Page 20 Apprenticeship funding and performance-management rules for training providers v4

•    Subcontractors must only be used to complement your own apprenticeship delivery.

"You can use delivery subcontractors to complement your own delivery if requested by an employer and agreed at the start of an apprenticeship. Delivery subcontractors can deliver full or part-apprenticeship frameworks and standards."
P125 Page 20 Apprenticeship funding and performance-management rules for training providers v4

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Point to Note:

As a Main Provider on RoATP you can deliver apprenticeships as a
Main or Supporting provider.

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Subcontracting Rules for Advanced Learner Loans
 
There are also new funding rules regarding subcontracting available on the slides from the Advanced learner loans webinar - July 2017 and the main documentation: Advanced learner loans funding rules 2017 to 2018.

Funding Rules key changes:

•    Reduction in the number of guided learning hours for designated qualifications at Levels 4, 5 and 6.
 
•    Providers must recruit loans learners directly and not engage a broker or third party to recruit loans learners on their
     behalf.
 
•    Delivery of loans-funded provision must be done directly – subcontracting is not permitted. To support this direct centre
     approval or direct qualification approval from an Awarding Organisation must be held.
 
•    Learner eligibility extended to members of the UK armed forces serving overseas, and family members living with them,
     who are aged 19+.

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Subcontracting Rules for Adult Education Budget
 
There are also new funding rules regarding subcontracting from an AEB contract as covered in the Adult education budget webinar - July 2017:

•    Reduction in level of subcontracting
 
•    Sector-wide transparency
 
•    Second level subcontracting not allowed from 1 August
 
•    Key requirements:
        - secure permissions to subcontract for the first time
        - publish subcontracting fees and charges
        - declare subcontracting arrangements to us twice a year.

All the new rules are covered in the Adult education budget: funding and performance management rules 2017 to 2018 documentation.

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Ofsted Obligations for Subcontractors
 
There are several points to note in the Further education and skills inspection handbook Further education and skills inspection handbook for use from 4th September 2017.

Even as a subcontractor you will be in scope for inspection when your main provider is inspected or individually on your subcontracted provision.
 
"As part of the inspection, inspectors may inspect any provision carried out on behalf of the provider through subcontract(s) or partnership arrangements, including by subcontractors that hold additional direct contracts of their own. Typically, inspection visits to, or communications with, subcontractors that are in scope are likely to include the inspection of the direct contract holder’s arrangements to quality assure and improve the provision."
Further education and skills inspection handbook Further education and skills inspection handbook Point 34, Page 10.

Basically you can't avoid Ofsted!

“Ofsted reserves the right to inspect and grade any subcontractor and its provision as a separate entity against this framework and handbook.”
Further education and skills inspection handbook Further education and skills inspection handbook."

Further education and skills inspection handbook Further education and skills inspection handbook Point 36, Page 10.

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New Providers

As a Main Provider on RoATP you can deliver apprenticeships as a Main or Supporting provider.

"Where a provider comes into the scope of Ofsted inspection, for example when a provider gains a new contract with, or grant or loans facility from, the Secretary of State for Education, the Education and Skills Funding Agency (ESFA)8 or predecessor funding agencies or because of funding through the apprenticeship levy, it will normally be inspected within three years of the start of the contract or grant or drawing down of funding."

Further education and skills inspection handbook Further education and skills inspection handbook Point 14, Page 7.

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Subcontracting Saved!

It's great news that subcontracting has been saved for the time being at least.

Now the wait is over we can see just what’s in store for subcontractors from May 2017.

"We appreciate that maintaining the ability to subcontract will, at least for a transitional period, be important for employers and providers."

FE Week published an article on the reversal of government plans to reduce subcontracting which highlights the power of the consultation period.

"At the employer’s request, and subject to their agreement, main providers will be able to bring in sub- contractors to deliver whole, or parts of, frameworks or standards."

Nick Linford mentioned this in his webinar yesterday that the SFA are still undecided about whether organisations who are not on the RoATP will be able to continue with their carry over apprenticeships from May 2017.

I will of course make sure I let you know the decision once it's known.

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Important Notes for Subcontractors

The Apprenticeship funding: draft rules for training providers document covers subcontracting rules which include:

"You must only use delivery subcontractors that satisfy one of the following three criteria.

• 135.1. They are on the published Register of Apprenticeship Training Providers and have applied via the main or supporting application routes.
  
  
• 135.2. They are the apprentice’s employer or a connected company as defined by HMRC and are on the published Register of Apprenticeship Training Providers, having applied through the employer-provider application route.
  
  
• 135.3. They are not on the published Register of Apprenticeship Training Providers but will deliver less than £100,000 of apprenticeship training and on-programme assessment under contract across all main providers and employer-providers between 1 May 2017 and 31 March 2018." (Page 27)

I must admit that I find point 141 a little concerning, especially as most subcontractors have spent years developing and maintaining relationships with employers.

"141. You must maintain the relationship with each employer at all times. You must not allow a delivery subcontractor to lead that relationship." (Page 28)

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Timetable

 

"* Please note that we use the dates for feedback and publication as a guide only. The exact dates will depend on the volume of applications that we receive."

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Before You Apply to the RoATP

Well, according to the documentation there are a few essential things that must be in place or you will fail the application process.
•    Registration with the Information Commissioner’s Office - (legal requirement).
•    Registration with the UK Register of Learning Providers
•    Policies / strategies in place to safeguard apprentices and careful attention to prevent duty.
•    Equality and diversity policies and be able to tackle bullying and discrimination.
•    Your organisation must have the expertise and experience to deliver effective and successful apprenticeships.
•    You must be financially sound. Check out the financial health self-assessment toolkit.

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Which Application Route?

Now all the documentation is published and the Register of Apprenticeship Training Providers is open, it's time to decide which application route to take.

The Joining the register of apprenticeship training providers – application instructions document gives details on the process and the Register of Apprenticeship Training Providers policy document provides final details of the rules.

1.    The Main route
2.    Employer provider route
3.    Supporting route

You can only apply via one route and only complete one pre-qualification questionnaire (PQQ)

•    PQQ 28910: Main route - register of apprenticeship training providers
•    PQQ 28911: Employer provider route - register of apprenticeship training providers
•    PQQ 28912: Supporting route - register of apprenticeship training providers

There is a guidance document available to help you through the process.

If you apply via the main route you must also tender to deliver apprenticeships to non levy employers, ITT 30190 on the e-tendering portal, the SFA will allocate an amount if successful.

A reminder: Only successful main route applicants to RoATP will be searchable by employers on the digital apprenticeship service.

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Application Route

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New Guidance Documents

There has been a whole host of documents released this week, I have attempted to list them here as some are a bit tricky to find.

The following are links to the updated SFA pages:

The Apprenticeship funding and performance management rules 2017 to 2018 

Apprenticeship funding: how it will work

Apprenticeship funding from May 2017

Apprenticeship funding: how it will work

Here are the documents if you want to do a direct download:

Apprenticeship funding: rules and guidance for levy-paying employers

Apprenticeship funding: draft rules for employer-providers

Apprenticeship funding: draft rules for training providers

Draft apprenticeship performance management rules 2017 to 2018

Apprenticeship frameworks: funding bands from May 2017

Apprenticeship standards: funding bands from May 2017

Apprenticeship employer-provider guide

Apprenticeship funding in England from May 2017

The apprenticeship levy: how will employers respond?

Draft apprenticeship performance management rules 2017 to 2018

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"Organisations applying through the main and employer provider routes must have a management information system in place at the point they begin delivery."
Page 10 Joining the register of apprenticeship training providers: application instructions

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The most significant changes in the reform will have a huge impact on subcontractors.

Not only from next April, but they could also be faced with a substantial financial outlay in the lead up to being accepted on the Register of Apprenticeship Training Providers (RoATP).

It's a waiting game at the moment, we don't know what the actual requirements will be for RoATP approval, until the rules published and the RoATP opens in October. At that point you will have to be ready to apply or wait until the next round. 

Hopefully you will have submitted your expression of interest to become an End Point Assessment organisation and completed the consultation surveys on the proposals for Apprenticeship Funding and the Register of Apprenticeship Training Providers, as these are now closed.

All I know is it doesn't leave much time for future planning so as a recap I've put together my top ten list of reform changes, many of which could be in place in just over a month!

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Top Ten Reform Changes

1. To deliver apprenticeships from April 2017 you MUST be approved and be on the Register of Apprenticeship Training Providers (RoATP).
   
   
2. The RoATP will be open for applications just 3 times a year.
   
   
3. There is no direct transfer from the RoTO to RoATP, all must apply.
   
   
4. Applicants must pass all three tests to be included on RoATP:
   
          Due Diligence.
          Financial Health.
          Quality, Capacity and Capability.
   
   
5. There are new opportunities to become an End Point Assessment Organisation.
   
   
6. If accepted on RoATP you will be responsible for monthly ILR data submissions.
   
   
7. You can still deliver subcontracted provision, if you are on the RoTO or not, this will be available for Adult Education Budget and Advanced Learner Loans
       only and NOT Apprenticeships.
   
   
8. Uplift payments will no longer be available.
   
   
9. Framework funding will change to be in line with the Standards upper limits.
   
   
10. Subcontractors will not appear in the DAS.
    
    

The apprenticeship reform is having an impact on our applications too! We're not waiting for the final publication of the rules, but going full steam ahead to make sure Athena MIS & RAIL will automatically generate ILR's ready for import into the Hub.

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What's Next?

We know from the RoATP proposal document that when you apply to the register you will have to answer questions about what data management arrangements you have in place.

What we don't know is if it's an actual requirement to have an MI system in place at the time of application.

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Questions to Think About...

1.    Do you take the plunge and get an MI system in place ready to apply to the RoATP?
2.    How long will it take to have an MI in place and ready to use?
3.    Can you use your chosen MI system for all your training provision?
4.    What happens if you don't get  RoATP approval?

Worse Case Scenario...

After quite a financial outlay you could be tied into a system, for however many years, for a service you are not allowed to deliver!

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It's such an exciting, but frustrating time!

There are so many opportunities especially with the ability to expand your business and become an End Point Assessment Organisation, but information is sadly lacking and very much delayed.

Changes for Subcontractors

So far I haven't managed to get access to the DAS or had any response from the SFA to confirm if subcontractors will be available in the DAS or not.

I've since discovered that there will be a NEW Register of Apprenticeship Training Providers, opening for applications in the autumn.

As soon as I find out the location for this I will pass on the link.

The criteria for gaining this approval is currently been developed and may have significant importance for subcontractors.

"The Skills Funding Agency is working with employers and providers to identify what precise standards and measures are important to them in selecting an apprenticeship training provider. All training providers will need to show that they meet or exceed these criteria to join the register of approved training providers and receive digital payments or government funding to deliver apprenticeship training."
SFA - Apprenticeship levy: how it will work

Under the new apprenticeship reforms subcontractors CAN contract directly with employers. Realistically we won't know for sure how this will work until the approval criteria is available, however this is being seen as somewhat of a threat by some lead providers.

Maybe this is a double edged sword? It will open up new business opportunities but will also have a major impact on your admin due to monthly ILR submissions. (see diagrams below.)

There could be some big changes ahead for subcontractors especially with managing data. My next email will be looking at ILR's and how much work is involved in submitting these monthly returns.

Apprenticeship Levy & Non Levy Contracting Models

There are two different processes involved in the selection and delivery of apprenticeships but either way employers will use the DAS to search and select an approved training provider and end point assessment organisation.

Non Levy Paying Employers

 

 

Levy Paying Employers

 

 

What's The Plan?

The following should take place according to plan, but there is always the possibility for change.

 

There have been significant delays in accessing information and they are not expected to be released until late August or early September

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