Intro to FE funding and the ILR Agenda 13:30 The basics of EF A - - PDF document

Intro to FE funding and the ILR For more training visit www.lsect.co.uk 1

Intro to FE funding and the ILR

13:30 start 16:30 finish

Nick Linford

Director at Lsect

Agenda

13:30 The basics of EF A per learner and S F A (incl. apprenticeships) matrix funding and the relationship between funding and the ILR 15:15 Refreshment break 15:30 Highlighting the most funding sensitive parts of the ILR for EF A and S F A funding 16:00 Top tips on using funding and ILR related tools, including FIS , LARs, DS ATs and other uses for the ILR, including the QS R, NS RT , Minimum S tandards, S ARs and the S FR 16:30 End

Intro to FE funding and the ILR

Intro to FE funding and the ILR For more training visit www.lsect.co.uk 2

FE funding split by age

http://tinyurl.com/b2efr77 http://tinyurl.com/28gyxba Matthew Hancock, Minister for Skills and Enterprise http://tinyurl.com /mpxvrh2 CEO, Peter Lauener Interim CEO, Barbara Spicer

Pre-19 (young) 19+ (adult)

http://tinyurl.com /q7qrgou College/training provider

£ £

Two very different national funding formulas, both new for this year (2013/ 14)

£ £ £

• Paid based on lagged

learner number allocation S tudy program including full- time, part-time and Traineeships

• Funding per learner

Adult S kills Budget, including classroom, traineeships, apprenticeships and other- workplace

• Paid based on in-year

enrolments

• Funding per enrolment

£

Intro to FE funding and the ILR For more training visit www.lsect.co.uk 3

The funding is the ILR…

College/training provider student system

ILR xml file

Funding Information System (FIS) for indicative funding values, errors and warnings Data Self Assessment Toolkit (DSAT) for checking data credibility IM services online Hub Provider Funding Report (PFR)

?

Any funding error

£ £ EF A funding booklets

http://tinyurl.com/qyulmdb http://tinyurl.com/ktgzkab http://tinyurl.com/njht53s http:/ / webarchive.nationalarchives.gov.uk/ 20131216163513/ http:/ / www.education.gov.uk/ about dfe/ executiveagencies/ efa/ funding/ fundings/ b00222378/ funding-guidance-2013-t o-14

EF A funding booklets as presentations

http://www.education.gov.uk/aboutdfe/executiveagencies/efa/funding/b002 31080/16‐to‐19‐funding‐guidance/additional‐resources‐for‐institutions http://www.education.gov.uk/aboutdfe/executiveagencies/efa/efaebulletins

EF A funding bulletins

http://tinyurl.com/lohc5a3

Intro to FE funding and the ILR For more training visit www.lsect.co.uk 4

Intro to the EF A funding methodology

The EF A multiply the funded student numbers in each planned hour band by the corresponding national funding rate (see next slide), and then apply historical institutional weightings which are pre-determined as part of the lagged student number approach to setting allocation. S imples  In setting allocations the information within the formula comes from multiple ILR fields, as well as more than one ILR return For the 2014/ 15 allocation the 2012/ 13 ILR R14 is used for weightings, the learner banding percentages and an in-year ratio and the 2013/ 14 ILR R06 is used for a learner count

Rate based on hours recorded in the ILR

Funding from the EF A is now per learner, and as part of a ‘ study programme’ it is expected nearly all will be full-time, based on a minimum of 540 planned learner hours between 1 August and 31st July (academic year) Student status band Hours required per academic year Hours funded at National funding rate for 2013/14 Full time 540 + 600 £4,000 Band 4 450-539 495 £3,300 Band 3 360-449 405 £2,700 Band 2 280-359 320 £2,133 Band 1 up to 280 %

• f 600

£6.67 per hour Note: EF A have confirmed these rates for 2014/ 15, with exception of full time 18 year-olds, who will be funded at the part time Band 4 rate (17.5% less than the full time rate, capped at max 2% cut next year)

Intro to FE funding and the ILR For more training visit www.lsect.co.uk 5

Definition of a start (EFA and SFA)

The learner (ILR) data contains start and planned end data, as well as actual end data when a learner withdraws or finishes If an enrolment does not meet the qualifying criteria it will not be counted for learner or funding purposes

Planned number of days in learning Qualifying number of days Fewer than 14 days 1 (one attendance) Between 14 and 167 days 14 (two weeks) 168 days and greater 42 (6 weeks)

Note These definitions are also used to determine the qualifications counted in the success rate report ing, as used by Ofsted and in your own S elf-Assessment Reporting

19+ funding formula and rules (per enrolment funding)

x x x =

PW

Programme Weighting

DU

Disadvantage uplift

ACU

Area cost uplift

Discounts

Employer discounts Funding

x

BR

Base rate

http:/ / tinyurl.com/ dypsfwt http:/ / tinyurl.com/ qfvwzl5 http:/ / tinyurl.com/ p5zzagw http://tinyurl.com/odftjf9

Intro to FE funding and the ILR For more training visit www.lsect.co.uk 6

New ‘ matrix’ funding rates

Adult S kills Budget learners (including apprenticeships and traineeships) are funded on an in-year per enrolment basis with rates from the new QCF based matrix:

Funding band Base rate (1 PW) Low rate (1.12 PW) Medium rate (1.3 PW) High rate (1.6 PW) Specialist rate (1.72 or 1.92 PW) Awards (1 credit) £50 £56 £65 £80 £86 or £96 Awards (2 credits) £100 £112 £130 £160 £172 or £192 Awards (3-5 credits) £150 £168 £195 £240 £258 or £288 Awards (6-8 credits) £300 £336 £390 £480 £516 or £576 Awards (9-11 credits) £450 £504 £585 £720 £774 or £864 Awards (12 credits) £600 £672 £780 £960 £1,032 or £1,152 Certificate (13-24 credits) £724* £811 £941 £1,159 £1,246 or £1,390 Certificate (25-36 credits) £1,265 £1,417 £1,645 £2,025 £2,176 or £2,428 Diploma (37 to 48 credits) £1,987 £2,225 £2,583 £3,179 £3,417 or £3,815 Diploma (49 to 72 credits) £2,573 £2,882 £3,345 £4,117 £4,425 or £4,940 Diploma (73 to 132 credits) £4,170 £4,670 £5,421 £6,671 £7,172 or £8,006 Diploma 133 credits or more) £6,602 £7,395 £8,583 £10,564 £11,356 or £12,675

* Rate for Functional S kills Eng and Math and GCS Es is £724

The ‘ matrix’ bands as steps

More efficient at start of a step

Intro to FE funding and the ILR For more training visit www.lsect.co.uk 7

Co-funding

Co-funded non-apprenticeship qualification (unweighted)

x x x =

BR PW DU ACU _

x

BR

0.5

x x x =

BR PW DU ACU x 0.5

Co-funded apprenticeship qualification (weighted)

Also…

Apprenticeship ‘ large employer discount’ of 25% Apprenticeship have three different rates based on age (16-18, 19-23 and 24+)

S F A payments

Payments are based on ILR data returns, with monthly on- programme instalments (80% ) and an achievement payment (20% ) Monthly on-programme (OP) instalment funding includes a double payment in month one (sometimes referred to as n+1). For example, if OP was £10,000 over 9 months then month one would be £2,000 and following 8 months would be £1,000 each Assuming a learner passes the qualifying period but withdraws during the course, the last OP instalment would be the month before they dropped-out There is a potential ‘ j ob outcome payment’ of half the achievement payment for eligible non-achieved learners

Intro to FE funding and the ILR For more training visit www.lsect.co.uk 8

The funding is the ILR… (so let’s look at it in more detail)

College/training provider student system

ILR xml file

Funding Information System (FIS) for indicative funding values, errors and warnings Data Self Assessment Toolkit (DSAT) for checking data credibility IM services online Hub Provider Funding Report (PFR)

?

Any funding errors

£ £

The Individualised Learner Record

http://tinyurl.com/meneg2y

A 170+ page “ technical specification of the data collection requirements and file format of the ILR to enable the intended audience to be able to meet the requirements for ILR data returns”

http://tinyurl.com/pcsusje

The ILR counts nearly 100 different data fields

“ The data collected in the ILR is used to ensure that public money distributed through the S F A and the EF A is being spent in line with government targets for quality and value for money, for planning, and to make the case for the sector in seeking further funding.”

Via the links you will also find the returns timetable. The last return for 2013/ 14 is on the 24 October 2014 The last return for 2014/ 15 is on the 23 October 2015

Intro to FE funding and the ILR For more training visit www.lsect.co.uk 9

Funding model in the ILR is critical Learning aim field

All critical for determining SFA funding rate, and SFA and EFA performance monitoring at enrolment level Funding eligibility and rates on LARS Lite:

http:/ / data.gov.uk/ dataset/ learning-aim-reference-service

Intro to FE funding and the ILR For more training visit www.lsect.co.uk 10

Two new planned hour fields = EF A funding band

S tart/ end dates, completion and outcome

Learning start date Learning planned end date Learning actual end date

All critical for determining qualifying period, instalments and

• utcome payments

Intro to FE funding and the ILR For more training visit www.lsect.co.uk 11

Funding and monitoring types (incl. co-funding)

New in for 2013/ 14 is the identification of the ‘ core aim’ for EF A learners

Core aim in the ILR is critical for EF A funding

New in for 2013/ 14 is the identification of the ‘ core aim’ for EF A learners Both only based on the core aim

Intro to FE funding and the ILR For more training visit www.lsect.co.uk 12

Traineeship ILR data

Learning aim Hours Z0007834 (not SFA) 0 to 49 Z0007835 (not SFA) 50 to 99 Z0007836 100 to 199 Z0007837 200 to 499 Z0007838 500+

S ee page 10 ILR Annex H updated 5 July http:/ / www.theia.org.uk/ ilr/ ilrdocuments/ 201314_ilrspec.htm

And every work placement will require a 9 digit Employer ID number from the Employer Data S ervice (EDS ) in the ILR employer identifier field There is specific guidance for recording Traineeships in the ILR for 2013/ 14 (http:/ / tinyurl.com/ pvfpwnl). Be sure to use the Learning Delivery Monitoring

code 323 for traineeships in the ILR Learning Delivery Funding and Monitoring

field.

24+ advanced learning loan ILR data

The S kills Funding Agency have published ‘ operational guidance’ now that apprenticeships have been removed from loans. S ee: http:/ / tinyurl.com/ nnqpcye

Exporting data from the Funding Information S ystem

This is needed to use the Data S elf-Assessment Toolkit (DS AT)

http://tinyurl.com/mfwq3wa http://tinyurl.com/lenyyvh

Y

• u can produce

a database with funding values Run and check DS ATs every month (a contract requirement for EF A funded learners) and read audit guidance

Intro to FE funding and the ILR For more training visit www.lsect.co.uk 13

LARS Lite

S F A ’s MS Access database “ developed to allow providers to interrogate the same LARS data set used in FIS ” £724 = matrix rate and programme weighting £3,088 = 19-23 apprenticeship rate and PW for frameworks published before August 2013

Expired rates all have effective from and to set at 31- Jul-14

http://tinyurl.com/phpezcd

Also an SFA ‘rates catalogue’: http://tinyurl.com/mumeeh5 No 16-18 rate as funded per learner based on planned hours

S uccess rates (QS

R and NS RT)

https:/ / www.gov.uk/ government/ collections/ success-rates-2012-to-2013

Retention rate = Achievement rate = S uccess rate = Retained / S tarted Achieved / Retained Achieved / S tarted Retention rate x achievement rate

Or same answer with

http:/ / dera.ioe.ac.uk/ 19262/ 1/ minimum_standards_2012_13.pdf

Classroom‐based Learning: long duration: 63% (including AS‐level) and 75% for A‐levels. Short duration: 65% (excluding AS‐level, which will be 63%) and 75% for A‐levels Workplace Learning: 68% Apprenticeships: 55%.

Minimum S tandards (used to be called MLPs)

Intro to FE funding and the ILR For more training visit www.lsect.co.uk 14

Ofsted and S elf-Assessment Reporting

http:/ / tinyurl.com/ kvmxe32

As a starting point for j udging learners’ outcomes, inspectors will use the appropriate ‘ all’ national success rate average. However, to arrive at a final j udgement they must take into account a range of other factors. These include: socio- economic factors, prior attainment, high grades (where appropriate), size and volume of provision, local factors such as employment rates and success rates achieved by similar groups of learners (for example, by comparable provision type, age and by level of course) and trend data over time. Inspectors will also take into account provider-specific risk factors with provision such as that for young learners who have recently not been in education and training (NEET) or long-term unemployed adults.

http:/ / tinyurl.com/ kz5j uez

S AR

“ Ofsted doesn’ t require a provider to produce a self- assessment report in any one format. It’s considered to be a continual process that involves managers, staff, learners, employers, subcontractors and other partners. In particular the report will:

• evaluate learners’ progress and achievement
• set targets for improvement and plan action
• help develop the provision for the benefits of learners.”

S tatistical First Releases

ILR data is also used to produce national statistics, which inform policy and may prove useful when doing market analysis

http://tinyurl.com/oynohel

https:/ / www.gov.uk/ government/ publications/ learner- participation-outcomes-and-level-of-highest-qualification-held

This includes statistics by gender, ethnicity, level, sector and at a local authority level The last S FR data release was on the 27 March

Intro to FE funding and the ILR For more training visit www.lsect.co.uk 15

Closing remarks

Both EF A and S F A funding is determined by ILR data

National funding formula National funding rates National ILR specification

=

Funding value

The ILR is the only part that is the responsibility of the colleges/ training provider Vital to invest enough resources in high quality data (accurate, credible, valid, complete and timely)

In the FE sector, data is funding

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