YPLA: National Commissioning Framework

1. YPLA: National Commissioning Framework Local Authority Group 30th October 2009

2. Agenda NCF purpose and objectives Timescale and process Principles and key roles Outline planning and allocations process Funding and assurance Performance management Intervention Consultation

3. Purpose of and Objectives for the NCF The NCF will define the roles and responsibilities of stakeholders in the planning and allocations system for 16 � 19 provision (who does what), and will set out the key processes within the system (what happens and when) The NCF is intended to help the system provide the best outcomes possible for all young people to enable them to reach their potential and gain the skills needed for employment and rich fulfilling lives. Determine the education and training needs of young people in each area, and ensure that: provision is made available for all young people to progress in learning, including delivery of the learner entitlements the quality of provision at least meets minimum standards (e.g., of accreditation), and continues to improve provision is commissioned within the framework of the national funding system provision is affordable within national and regional budgets

4. NCF: Timescale for Development and Implementation Development, including testing in 2009 Consultation period: October November 2009 � January 2010 Consultation report � February 2010 Revised version for approval - February 2010 Published by YPLA � April 2010 Guidance applies to planning process for provision to be delivered in 2011 / 12 Academic Year Some aspects, including funding flows, apply from April 2010

5. National Commissioning Framework - Principles The system operates in the interests of the learner The system will take into account the needs of employers and employability. Involves providers as key partners. Funding - based upon the national funding formula and applied at the level of the provider - will follow the learner. A system designed to produce consistency in key features Provide and encourage flexibility in aspects of the process, including how learner and economic needs and demand are defined and in what provision is commissioned.

6. National Commissioning Framework - Principles Decisions on provision based upon analysis of future needs and the requirements of the reformed curriculum. The system must be transparent and equitable Commissioning should be impartial and provider neutral, securing high quality provision from the most appropriate quality assured providers. The system must deliver value for money. Accountability will be secured with minimum bureaucracy between partners. Budgetary control at each level, ensuring affordability

7. Roles of Key Players Local Authorities: as commissioners, LAs should be champions of young people in their area, focusing on achieving better outcomes 14-19 Partnerships: provide area-wide strategic assessment, owned and driven by key stakeholders and delivery partners Sub Regional Groups: provide essential coherence across travel to learn areas, where these cross LA borders Regional Planning Groups (RPGs): set out�the regional priorities and produce Regional Commissioning Statements to support local planning; scrutinise 16-19�commissioning�plans for the�region to ensure they are coherent, can be funded within the regional budget and will deliver 14-19 entitlement YPLA: will perform key national functions, supporting and enabling LAs to carry out their responsibilities Children�s Trusts: take a strategic overview of provision for children and young people 0-19, including commissioning of education and training provision for young people Government Offices: key role in supporting and challenging LA performance, and in offering a strategic perspective through the RPG Regional Development Agencies: involved in RPGs, likely as co-chairs; will support alignment with regional skills and economic regeneration and development Department for Children, Schools and Families: sets the overall national policy and priorities for 16-19 learning, agrees national funding allocation, sets national targets, reviews and agrees YPLA performance

8. End-to-end commissioning cycle �This slide can be removed if necessary. This slide summarises the overall commissioning process. On the left hand side we list the main stakeholders in the process. The slide shows both the top down and bottom up approach to commissioning. In the planning phase there is the release of the national statement of priorities, that leads to regional statements based upon detailed analysis of needs. Local authorities, in the meantime, maintain dialogue with providers and, informed by national and regional statements, produce local statements that detail in broad terms the provision required in each area. There is an iterative planning process between LAs and providers, with sub regional groups working to agree provision across boundaries. Indicative allocations to providers in December. Commissioning Plans produced in January / February. Tested and approved through SRGs, RPG and YPLA. Final allocations in March. Contracting and payment arrangements settled through April � August. �This slide can be removed if necessary. This slide summarises the overall commissioning process. On the left hand side we list the main stakeholders in the process. The slide shows both the top down and bottom up approach to commissioning. In the planning phase there is the release of the national statement of priorities, that leads to regional statements based upon detailed analysis of needs. Local authorities, in the meantime, maintain dialogue with providers and, informed by national and regional statements, produce local statements that detail in broad terms the provision required in each area. There is an iterative planning process between LAs and providers, with sub regional groups working to agree provision across boundaries. Indicative allocations to providers in December. Commissioning Plans produced in January / February. Tested and approved through SRGs, RPG and YPLA. Final allocations in March. Contracting and payment arrangements settled through April � August.

9. Planning and Allocations � Key Steps Strategic Analysis � May LA Review of 14 � 19 Plan and development of local commissioning statement � summer NCF and National Statement of Priorities � September Regional Commissioning Statement � September Local Commissioning Statement � November DCSF provide Grant Letter � November National funding rate and updated funding positions � Nov / Dec LAs Initial provider dialogue � Nov / Dec Indicative funding allocation � Dec LAs establish learner numbers � Jan / Feb LA�s finalise proposed local learner numbers � Feb SRG and RPG moderation of plans � Feb / Mar YPLA assessment and sign off of RPG proposed commissioning plans - March

10. Special Commissioning Arrangements Apprenticeships Learners with Learning Disabilities and / or Difficulties (LLDD) Other specialist and / or national providers Academies Young offenders in youth custody There is a range of special commissioning arrangements, including those for specialist and / or national providers such as land based provision. Emphasise that local authorities are the commissioners of provision. Apprenticeships LAs work with NAS to identify mix and balance Provision aggregated at SRG level SFA manage contracting and funding SFA / LA dialogue (probably at regional level) to review performance LLDD Transitional arrangements for specialist providers LAs via SRGs identify provision to be procured via YPLA Provision for LLDD that can be delivered locally will be commissioned and procured by LAs using programme funds and ALS Other specialist and / or national providers Potential for other instances of national procurement and contracting, and for national contracting with regional schedules Includes specialist providers such as land based providers. Open for there to be an agreement between local authorities, providers, and YPLA that one of a range of arrangements are put in place, including: YPLA procures and contracts for the provision based upon LA / RPG input on volumes, mix and balance required Network of lead commissioner LAs liaise about overall national picture of provision Academies With existing Academies, LAs maintain dialogue and agree places, reflected in commissioning plans YPLA funds Academies direct Young offenders in youth custody LAs responsible for securing provision for young people in custodial establishments located in their area Agree plans with the provider to the establishment Ring fenced budget There is a range of special commissioning arrangements, including those for specialist and / or national providers such as land based provision. Emphasise that local authorities are the commissioners of provision. Apprenticeships LAs work with NAS to identify mix and balance Provision aggregated at SRG level SFA manage contracting and funding SFA / LA dialogue (probably at regional level) to review performance LLDD Transitional arrangements for specialist providers LAs via SRGs identify provision to be procured via YPLA Provision for LLDD that can be delivered locally will be commissioned and procured by LAs using programme funds and ALS Other specialist and / or national providers Potential for other instances of national procurement and contracting, and for national contracting with regional schedules Includes specialist providers such as land based providers. Open for there to be an agreement between local authorities, providers, and YPLA that one of a range of arrangements are put in place, including: YPLA procures and contracts for the provision based upon LA / RPG input on volumes, mix and balance required Network of lead commissioner LAs liaise about overall national picture of provision Academies With existing Academies, LAs maintain dialogue and agree places, reflected in commissioning plans YPLA funds Academies direct Young offenders in youth custody LAs responsible for securing provision for young people in custodial establishments located in their area Agree plans with the provider to the establishment Ring fenced budget

11. Funding Arrangements 1 LAs issue contracts for 16-19 funding (except Apprenticeships) SFA �contracts� for adult funding YPLA funds LAs Academies Arrangements for Independent specialist providers Providers delivering nationally Generally, negotiated allocations rather than open and competitive tender

12. Funding Arrangements 2 YPLA is the financial regulator for sixth form colleges with powers of intervention and scrutiny to secure college financial stability The SFA contracts with schools, academies and sixth form colleges for 16-18 apprenticeships The YPLA will manage the 16-18 capital budget until 2011 The YPLA continues to pay out all EMAs and other direct learner support The SFA administers all ESF

13. Payments and Reconciliation SFA, YPLA and LAs will pay providers direct Payment will depend on the learning programme e.g. monthly payment on account, (profile payment) payment in arrears on data or payment on invoice as appropriate Payment by results is usually driven by earnings evidenced by learner data Reconciliation and tolerance of underperformance also varies e.g. infrequent and tolerant for full time learning, frequent and intolerant for vocational learning LAs will pay back to YPLA any provider under performance. Provider over performance will be funded if affordable

14. Assurance Extensive assurance from statutory financial statements auditors and requirements for internal audit is already in place. Reliance will be placed where possible on existing sources of assurance The special funding rules of the funding formula require expert funding audit beyond existing audit remits Assurance on funding will be one provider, one audit across the YPLA, SFA and LAs Who exactly will do what when, and how much, is being finalised.

15. Performance Management Framework Providers have primary responsibility for managing and improving performance via self assessment Framework for Excellence applies to all post 16 provision from 2010/11 � comparable assessment. Annual report card. Minimum levels of performance. YPLA and SFA to review and evaluate current methodology. Arrangements for support and development � e.g., LSIS Provider Accreditation System (PAS) � joint work across sector. Set standards, eligibility to receive funding. Exploring use with LAs.

16. Intervention YPLA engagement, support and intervention statement Clause 65 of ASCL says YPLA may intervene if a local authority is failing or likely to fail in its duties to secure suitable provision Draft statement of policy direction is included in the NCF Staged approach to support and intervention, and exercise of powers as a last resort Process of support and dialogue: review of annual commissioning plans; identification of any underperformance; support and challenge Triggers for intervention, incl submission of plans that fail to meet known needs of learners, at risk of not meeting duties, etc.

17. Consultation Process NCF consultation draft published in w/c 2nd November (date tbc) Responses until end January (date tbc) Consulting upon all of the main issues: Clarity of the processes and roles and responsibilities Funding, payments and assurance arrangements, including in year adjustment of allocations Performance management, including MLPs Intervention Report on the responses and conclusions Revised draft for approval by Ministers and YPLA Publish on April 1st 2010