1. LSC Provider Workshop

2. Domestics Fire Mobile telephones Toilets Tea, coffee, etc

3. Agenda Welcome and Introductions World Class Skills Apprenticeship Transitional Payments Systems Overview Provider Funding Reports Training Provider Statements – audit changes Common Issues Question & Answer open session Close

4. http://wcs.excellence.qia.org.uk/

5. Transitional Apprenticeship Funding

6. Transitional arrangements 08/09 Apprenticeships –Achievement only –Change of balance of rates –N+1 –Claimed on TPS Train to Gain –Balance paid Train to Gain Level 3 pilots –07/08 rates –Claimed on TPS Train to Gain Level 4 –Ex-WBL Guidance documents on LSC internet

11. The Funding Formula Standard Learner Number (SLN) X National Funding Rate X Provider Factor = FUNDING

12. NVQ SLN = 0.968 Programme Weight = 1.0 Employer contribution = 40.8% Technical Certificate SLN = 0.2 Programme Weight = 1.0 Employer contribution = 40.8% Key Skills SLN = 0.08 Programme Weight = 1.0 Employer contribution = 17.5%

13. The Funding Formula Standard Learner Number (SLN) X National Funding Rate X Provider Factor = FUNDING

14. Provider Factor Programme weighting Area Uplift Disadvantage uplift

15. Provider Factor Programme weighting1.0 Area Uplift1.0 Disadvantage uplift1.03 Provider Factor=1.03

16. The Funding Formula – 16-18 Fully funded NVQ Standard Learner Number (SLN)0.968 X National Funding Rate £2860 X Provider Factor 1.03 = FUNDING£2851.53

17. The Funding Formula – 19+ Co-funded NVQ Standard Learner Number (SLN)0.968 X National Funding Rate £2775 X Provider Factor 1.03 = Total£2766.77 X Employer contribution (100%-40.8%)x 59.2% Funding£1637.94

18. Apprenticeships ILR field A14 Code 01 should be used for all 16-18 year old learners (all apprenticeships for these learners are fully funded). Code 01 also applies to learners aged 19+ who are eligible for 16- 18 funding rates. The eligibility for enhanced funding field, L28, must be coded. 19+ Apprenticeships are classed as co-funded and should be coded as such. Code 99 should be used if the employer contribution is collected in full. Code 10 should be used if part or all of the employer contribution is waived. The employer contribution may not necessarily be a financial one.

19. N+1 Applies to all ERM qualifications Number of months in planned learning - ILR –A27 Learning start date –A28 Learning planned end date Census points – Last day in month 30 th August to 2 nd May (245 days) and 2 nd August to 30 th May (300 days) both are counted as 9 months

20. N+1 NVQ = £2851.53 less 25% achievement = £2138.65 9 months therefore N = 9 and N+1 = 10 £2138.65 / 10 = £213.87 First month 2 x £213.87 = £427.73 Months 2 to 9 = £213.87 each month

21. N+1 25% achievement applies to –NVQs –Skills for Life qualifications (TtG ) 25% achievement does not apply to –Key Skills –Technical Certificates 100% paid in monthly instalments

22. NVQ Technical Cert Key Skill NVQ Technical Cert Key Skill 07/08 08/09 Apprenticeships

23. The Funding Formula Standard Learner Number (SLN) X National Funding Rate X Provider Factor = FUNDING

24. System Overview ILR Submissions to Payment

25. LSC Systems and Interdependencies UKRLP Summarisation

26. 26 Submit TPS via POL Submit ILR via POL & Batch Request PFR via DCWS Load into AMPS DLF Validate Information Calculate Actuals Summarise Data Create PFRs Post PFRs to DCWS Provider

27. PFR Reports

28. What is a PFR ? The PFR gives the provider a breakdown of how much they are earning for their Employer Responsive delivery based on the LSC funding calculations. The figures match those displayed on the LSC AMPS system for actual earned - it is the providers responsibility to check the PFR to payment and report discrepancies.

29. PFR Overview Delivered as a zip file with one provider level summary file and an allocation level file for each of the local LSCs the provider has an allocation with. Provider level file contains: –Cash and Volume Summary –Financial Summary Allocation level file contains: –Comprehensive Occupancy List –Cash and Volume Summary –Financial Summary

30. Key Features PFR is always posted back to active collection Final PFR (Period 13) will be produced for every provider and posted back automatically to the period 13 collection Information displayed is directly linked to the ILR data submitted Always displays Year to Date information

31. Provider Funding Reports Comprehensive Occupancy List Report A comprehensive spreadsheet containing details of ALL ER learner aims for the selected ER Allocation. It does not contain any sub-grouping or totals. It is delivered as one of 3 worksheets in a single Excel workbook (along with the Cash & Volume and Financial Summaries). The report is available at Allocation level (i.e. Provider LLSC) only. The report is a year to date snapshot based on the latest available ILR information All data included is actual earned data only.

32. Provider Funding Reports Financial Summary Funding Report – Overview contains a financial summary of the actual delivery. has 2 summary levels: –Allocation level (i.e. UPIN and LLSC) –Provider level (i.e. a summary of all Allocations for a specified UPIN across all LLSCs) a year to date snapshot based upon the latest available ILR, TPS and AMPS ER information shows separately summary of ILR activity and TPS activity by category

33. Provider Funding Reports Volume & Cash Summary Funding Report Contains a cash and volume summary of the actual delivery has 2 summary levels: –Allocation level (i.e. UPIN and LLSC) –Provider level (i.e. a summary of all Allocations for a specified UPIN across all LLSCs) breaks down the information into the various programme : –16-18 Apprenticeships –19-24 Apprenticeships –25+ Apprenticeships –Train to Gain –Employability Skills Programme

34. Provider Funding Reports Common Issues: No funding for data relating to previous academic year Software Provider PFR – not LSC Incorrect version of PFR – check batch header Check error report Timing – PFR run before/after census end date

35. PFR Learner Names Unable to add learner names to PFR due to data security Workaround using reports from providers systems or POL Uses excel lookup table functionality ALP PFR Workshop\PFR_A_123456_2009_W06_999 (version 1).xlsALP PFR Workshop\PFR_A_123456_2009_W06_999 (version 1).xls

36. PFR – Calculation of SLN instalments

37. Terminology Standard Learner Number (SLN) - Measure of volume of activity. SLN value listed on the LAD. SLN Instalments - Distribution of SLN value across the period of the learning aim. There are three types of SLN Instalments: Achievement On Programme Balancing

38. Basic Funding Formula Total Learning Aim LengthStart Period >= 24 weeks6 weeks 2 to 24 weeks2 weeks < 2 weeks1 learning engagement Learner Start Definition A learner is deemed to have started a learning aim once they have remained on the aim for the period of time defined below: Funding is generated as soon as the learner crosses a month end however if the learner subsequently leaves the funding is recalculated to zero

39. Achievement SLN Instalments For Apprenticeships 25% of SLN value of main aim generated on achievement of Apprenticeship Framework. Key Skills and Technical Certificates within Apprenticeships do not have an Achievement SLN instalment. Otherwise, 25% of SLN value for each learning aim is generated on achievement of learning aim. E.g. 0.429 x.25 =.10725

40. On Programme SLN Instalments SLN value, less achievement element, apportioned across planned periods per learning aim. Planned periods equals the number of Month Ends between Start and Planned End date (n). On Programme SLN instalment of first period is double, therefore “n + 1” approach. E.g (.429 -.10725)/(12+1) = 0.02475 For start 0.02475 x 2 = 0.0495

41. Balancing SLN Instalments If learning aim is achieved before the final planned period then Balancing SLN instalment is produced. Number of instalments due between actual End Date and Planned End Date. If 5 balancing payments due: 0.02475 x 5 = 0.12375

42. ER Funding Calculation Funding = SLN Instalments x Rate per SLN x Provider Factor Weighting

43. ER Funding Example This is for a TtG Learner. Learning Aim Ref = 10052173 – SLN Value 0.429 Start Date = 16/08/2008 Planned End Date = 16/08/2009 – 12 month ends Provider Factor Weightings –Area = 1.05 –Disadvantage = 1 –TtG uplift = 1.03 National Base Rate = £2775 for a 19+ Learner

44. ER Funding Example On Programme Payments Achievement Payment PeriodSLNNational Base Rate Provider Factor Weightings AreaDisadvantageTtG UpliftTotal First Month0.0495 *£2775 *1.05 *1 *1.03 =£148.56 Remaining Months 0.02475 *£2775 *1.05 *1 *1.03 =£74.28 PeriodSLNNational Base Rate Provider Factor Weightings AreaDisadvantageTtG UpliftTotal Final Payment 0.10725 *£2775 *1.05 *1 *1.03 =£321.87

45. Co-funding 19+ Apprenticeships are expected to be co- funded. Unless there is a good reason for full funding. Co-funded flag on ILR is A14. Codes for ER: –01 16- 18 year old learner –09 Undertaking programmes where main aim is Skills for Life –22 Train to Gain first L2 only –24 Train to Gain first L3 19-24 –28Fully funded employer responsive provision It is important that fields 100 or 101 in A46 are not completed for 08/09 starts as the system will determine them as co-funded learners and pay them as such.

46. Co-funding If co-funded the national base rate is reduced by the fee element held in LAD for that learning aim – E.g. Fee Element might be 0.408. Therefore, the same funding calculation will be used but a % of the national rate will be used £2775 * 59.2%

47. 19+ Learners in Extended Guarantee Code as BOTH 14 and 15 in L28a and L28b

48. Train to Gain Carry Over Achievement is 25% of whole SLN Programme Payments are remaining 25% of funding split over the remaining months on programme Where planned end date reached before 31 August 2008 25% paid in balancing payments and 25% on achievement

49. Training Provider Statement

50. Dealing with audit adjustments Data should always be changed on the ILR where possible i.e. current year. This also applies to TPS updates This prevents the provider being “double hit” All funding will be recalculated YTD which will be reflected on PFR/AMPS. Once final deadline has passed for a year (P13) then no changes can be made via the ILR for that year, any further adjustments will need to done manually.

51. TPS Audit Adjustments Facility to make audit adjustments and distinguish where errors on TPS Should only be used where errors found on TPS in current year Errors identified relating to previous years should be invoiced Guidance on completing TPS available on IA website

52. TPS Audit Extrapolation Audit extrapolation fields available on TPS – no longer need to invoice. Should be used when extrapolation has been agreed with the provider for: –16-18 Apprenticeships –19-25 Apprenticeships –Apprenticeships for Adults –Train to Gain Can view TPS and or PFR to check adjustments made.

53. Systems Update

54. System Enhancements OLDC Release weekend 28 Feb & 1 March Recalculation on 2 March AMPS Release 10 March –Includes change to summarisation for 19+ learners –Data fixes –PFR change to add T2G 3% in occupancy list –Adult Responsive Reconciliation