EFA Funding guidance for young people 2014 to 2015 CCP Reconciliation 2014/15 EFA Young People’s Funding Team

CCP Reconciliation 2014/15 Main reconciliation rules Tolerance for both under and over performance is now the higher of 1% or £5,000; Growth above the cap is not usually paid; Growth cap is of 30% of the allocation, with the minimum cap value of £100,000 and the maximum cap value of £1 million; Clawback is based on main programme funding, excluding TP and FPF; Growth is based on programme funding plus TP and FPF End-year position should always be the same no matter what happened at the intermediate points. 2

Reconciliation timeline 3 Data ReturnAdjustments to Payments R06 (February – 6 months data) Growth – interim payments in April for institutions achieving above their allocation (tolerance and cap apply) Clawback – institutions delivering below 60% or with no 2015/16 allocations will have clawback from April to July (see next slide for more detail). Other institutions – reconciliation statement summarising the current level of delivery based on the R06 return R10 (June – 10 months data) Growth – interim payments in August for institutions above their allocation (tolerance and cap apply) Clawback – profiled from August to year-end for any institutions achieving less than 95% of allocation R13 (September – 12 months data) Growth – no additional payments, await audited figures (tolerance and cap apply) Clawback – updated figures in November and December based on final rules R14 (October – final return) Growth – final payment in December based on final rules (tolerance and cap) Clawback – final adjustments in December based on final rules. Notes: 1. Apart from R06 clawback, final rules apply in all circumstances. 2. Growth payments are always subject to affordability

CCP Reconciliation 2014/15 R06 Clawback Rules Under 40% delivery – stop payments from April to July 40-60% delivery – payments from April to July reduced by half 60-80% - potential recovery as follows: No recovery from April to June Provisional reduction of July payment by half, but subject to review based on R10 No data – treat as though below 40% No allocation for 2015/16 – treated individually 4

CCP Reconciliation 2014/15 Growth (1) - Overview Growth will be funded subject to affordability, and we will scale payments to manage affordability We commit to pay for a minimum of 50% of eligible growth (after the rules on tolerance, cap have been applied) The final year-end position for providers with growth will be the same, irrespective of at what point in the year the growth has occurred 5

CCP Reconciliation 2014/15 Growth (2) – In-year and End-year Where an institution has already exceeded its full contract in-year, we will pay for 50% of the growth based on R06 or R10 data returns as appropriate At the year-end we will do a final check of affordability and confirm the level of scaling of final growth claims We will then pay any additional growth for institutions that had in- year growth, and fund all growth up to the agreed level for institutions that did not have in-year growth For an institution that achieves over their contract value, the overall growth amount paid will therefore be the same irrespective of when in the year they reached that level 6

CCP Reconciliation 2014/15 Communications Detailed rules published in ILR Funding Returns (part of funding guidance) Regular updates in-year in e-bulletin and on website: providers Any clawback will be notified by the end of the preceding month, including a profile for future months 7