SRF Consultancy Ltd srfconsultancy.co.uk info@srfconsultancy.co.uk

1. Golden Rules of Safeguarding Skills Funding Agency ASB Funding (Abridged!)Derbyshire Network Conference SRF Consultancy Ltd www.srfconsultancy.co.uk info@srfconsultancy.co.uk June 2014

2. Who are SRF? • Experts in Education Compliance • “Making the Complicated Simple” • Over £80 million in SFA / EFA funds monitored • Record of First Class Performance at SFA Audit • Knowledge of Rules • Knowledge of what works in the field • Today’s Session: • Golden Rules of Safeguarding Adult Skills Budget Funding • Funding Basics • Common Errors • Safeguarding Funding (How to reduce risk)

3. The Basics (para 21 , Funding Rules v3 14/15) • Only eligible learners can be funded by SFA • Learner must exist • Must be eligible for programme, • Must be eligible for the rate of the programme • That the education and training is taking place or taken place • That achievement of aims is certified • Must prove eligibility and existence with the threshold for funding • Must provide achievement evidence within three months • So it’s simple right?

4. The Basics • Aims are funded individually • Funding affected by age, location of delivery, learner home address, prior learning, size of employer • Funding split between start and planned end • Learners who do not achieve will not receive full funding • If a learner leaves early, only entitled to funding up to withdrawal • The start dates of aims are equally important as if they leave early you may have claimed for too much

5. What can go wrong? • Eligibility • Suitability for programme • Funding Rate (Full or co-funding) • Adjustments for Prior Learning • Start Dates • Planned end dates • Aims • Minimum Durations • Actual end and Achievement dates • Activity • The Programme itself (framework compliance) • How will SFA know about it?

6. Agency Audit • Provider Financial Assurance (PFA) • Two main components: PDSAT & Main Learner Sample • Tests funding appearing in an academic year • Tests all aims for that learner in that year • Where there is no evidence there is an overclaim • DSAT errors separate to Main Sample • If value of error in main sample is over 5% then the whole contract value can be extrapolated • £1000 error in £10,000 sample = 10% • Contract Value = £10,000,000 • Extrapolated amount = £1,000,000 • Only as strong as your weakest file

7. So how can it go wrong? • Four stages of risk • How do you get learner data? • Application • The enrolment • The learning agreement • How does it get processed to the data? • Who updates • When updates • What controls do you have to check what’s processed?

8. Key Risks • Start • Learning Agreement • Setting the planned end date • Individual Aim Start • Meeting the start threshold • Learning Support • Activity • Evidencing ongoing learning • Timescales for contact • Identifying learners at risk • Learning Support • Pre-Start • Eligibility • Suitability • Prior Learning • APL • RPL • Employer data • FFI Status • ILR compliance • Maths and English assessment

9. Key Risks • Error Values (% of total funds) • Eligibility = 100% • Suitability = 50 to 100% • Withdrawal date = 0 to 100% • RPL or APL = 0 to 100% • Aim Accuracy = 0 to 100% • Achievement = 20%+ • End • Last attendance • Timescales for identifying • Aim Achievement • Framework achievement • Minimum Durations • Progression • Certification

10. Subcontracting • A Magnification of Risk • How do you control data? • How do you ensure authenticity? • Timescales for data • Direct data input or time delay in process? • How can you be assured of ongoing activity? • Internal Audit • How effective is your monitoring? • Do you use DSAT?

11. Avoiding Errors • Strengthen the four stages of risk • Timescales for receiving and processing data • Accuracy of data when inputted (Design of core documents) • Identification of at risk learners • Use of DSATs & internal MIS monitoring controls • Use of internal audit • File Checks – a whole lot more than does a document exist • Sufficient samples to pick out the anomaly

12. Questions?