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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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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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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There are some huge changes planned and you are invited to have your say!

On Friday 12th August the proposal for a NEW Register of Apprenticeship Training Providers was published. (RoATP)

The SFA have launched a survey so you can have a chance to comment on the proposals yourself, but the survey closes on 5th September 2016.

Below are the points I find the most interesting and of course this is just my 'in a nut shell' review of the document. It's certainly interesting reading... Exciting times ahead!

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Changes to Subcontractor Role

In the most simplistic terms, due to employers soon being able to select providers directly from the RoATP and have a direct contractual relationship with them, the current model of 'lead provider' and 'subcontractor' is somewhat redundant.

As from May 2017 the term 'subcontractor' will be used for those training providers who supply significantly less than half of the apprenticeship training or are brought in to supplement training because they have the required expertise that the lead provider does not have.

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Why You Need to Apply

If you want to deliver apprenticeships to any employer from May 2017 YOU MUST apply to join the RoATP.

The RoATP is separate from the RoTO. The RoTO will continue to operate Adult Education Budget & Advanced Learner Loans.

Even if you are delivering apprenticeships and are on the RoTO you will have to apply to the RoATP, as there will be no transfer from RoTO to RoATP.

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Proposed Application Ineligibility

Management agents and any provider who has had an Ofsted inspection grade of 4 (for apprenticeship delivery) in the last 3 years should NOT be eligible to apply.

If a grade of 4 was given overall but a grade of 3 was given for apprenticeship delivery, they will be eligible.
 
"In the future system,we want all employers to have a direct relationship with their training provider(s),giving them maximum control to ensure value for money and quality of provision.

We therefore propose that managing agents, intermediary bodies, consortium leads, brokerage organisations or any other similar entity that does not itself deliver education and training to apprentices, should not be eligible to apply to the RoATP."

P5 of Proposals for a Register of Apprenticeship Training Providers

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Application Process

There are three proposed routes to apply to the RoATP.

Main Route:

• To be eligible for selection by levied employers.
• To participate in the SFA procurement for delivery to non-levied employers.
• Have the capacity and capability to deliver all or majority of the frameworks and standards they provide.
• To deliver parts of frameworks and standards with a subcontracting arrangement for another provider on the main register.

Supporting Route:

• The SFA are asking for views, via the survey, on the value of setting up separate route for those providers who only with to supply part of the training.

Employer - Provider Route:

• This would be for levied employers who want to deliver staff training. They would have to meet the same criteria and would only be able to train their own staff and not be eligible for SFA procurement.

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Application Tests

To be an approved provider you must be able to prove capability to deliver high quality apprenticeships, as well as fitness and ability to receive public funding.

The intended questions will be divided into three tests:

1. Due Diligence.
2. Financial Health.
3. Quality, Capacity & Capability.

All three tests must be passed to be accepted onto the RoATP.

The due diligence and financial health will be similar to those used currently by the RoTO but a higher standard of quality, capacity and capability tests will be devised.

It's proposed that applicants will be asked to provide information such as:

• Training delivery model including recruitment, off-the job training and on-programme assessment.
• Internal management and delivery arrangements,including staff CPD.
• knowledge, skills and experience of working with employers of differing sizes.
• Prior experience and expertise of leaders and staff.
• MI and data management arrangements, including data security.
• Arrangements for safeguarding apprentices and learner support.

P12 of Proposals for a Register of Apprenticeship Training Providers

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When to Apply?

It is proposed that the RoATP will be open for applications in October 2016.

There will also be the opportunity to apply to deliver to non-levied employers at this time as well.

There will be a time limit on this session, and then its proposed the RoATP will be open every three months, for a month at a time.

The SFA will publish an up to date list of approved providers along with which route they applied through.

Each provider must re-apply every year to stay on the register.

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