EFA Funding guidance for young people 2013 to 2014
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Transcript of EFA Funding guidance for young people 2013 to 2014
EFA Funding guidance for young people 2013 to 2014
CCP Reconciliation 2013/14
EFA Young People’s Funding Team
Reconciliation rules and examplesThe principles of CCP funding adjustment and final reconciliation are.• In-year payments are made on profile as is planned for all EFA
16-19 funding;• in-year delivery of cash is reviewed during the year and where
delivery is outside an agreed tolerance, action is taken to adjust the profile of payments from April for the remainder of the year;
• all funding variances are calculated by comparing total whole year delivery with the final funding allocation as paid for the year;
• Only cash is subject to reconciliation (not student numbers).
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Reconciliation policy for CCPsContract funded institutions (charitable and commercial providers known as CCPs) (rules detailed in paragraphs 22 – 30)• the following detailed reconciliation rules apply:• includes disadvantage funding within overall study programme
funding;• tolerance for both under and over performance reduced to
2.5% of cash allocations;• growth tolerance capped at £25,000;• growth subject to affordability but some set aside budget in
addition to any additional clawback funding.
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Reconciliation rules and examplesOver performance - paragraphs 27
• A tolerance of 2.5%/£25,000 (whichever is lower) will be applied for growth payments
• Total programme outturn will be compared to the allocation (including TP and FPF)
• The cash delivered over 2.5%/£25,000 above the allocation (together with any TP or FPF) will be paid as responsive growth subject to a growth cap and affordability.
• Growth payments will be limited by a cap at £100,000 or for CCPs with larger allocations the lower of 30% of the funded allocation or £1m.
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Reconciliation rules and examplesUnderperformance - paragraphs 25 – 26
• A tolerance of 2.5% will be applied for clawback
• Total programme cash outturn will be compared to total allocation (excluding TP and FPF)
• The cash delivered below 97.5% of the programme funding allocation will be recovered as clawback.
• The following slides include a provisional timeline and some examples.
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Reconciliation timeline6
Data Return Adjustments to PaymentsR06 (February – 6 months data)
Growth – interim payments in April for institutions achieving at least 90% of allocation
Clawback – only for institutions without a 2014/15 allocation or other exceptional circumstances. Where these institutions have achieved significantly less than their allocation they would face clawback from April.
Other institutions – reconciliation statement summarising the current level of delivery based on the R06 return.
R10 (June – 10 months data)
Growth – interim payments in July for institutions achieving at least 100% of allocation
Clawback – profiled from July onwards for any institutions achieving less than 90% of allocation
R13 (September – 12 months data)
Growth – no additional payments, await audited figures
Clawback – in October and November based on final rules (2.5% tolerance)
R14 (October – final return)
Growth – final payment in December based on final rules (2.5%/£25,000 tolerance plus cap)
Clawback – final adjustments in December based on final rules (2.5% tolerance)
Note: growth payments subject to affordability
Worked Example (A1) - Allocation7
Programme Funding Formula - Allocation NATIONAL FUNDING RATE PER STUDENT
RETENTION FACTOR
PROGRAMME
COST WEIGHTING
DISADVANTAGE
FUNDING
AREA COST ALLOWANCE
See Table 1 0.900 1.100 from allocation 1.200X X -£188,165 X £169,349 + £200,000 X £412,567
550 £1,881,650 £1,693,485 £1,862,834 £2,062,834 £2,475,400
STUDENT NUMBERS
Worked Example (A2) – Allocation8
Table 1: Breakdown of funding for FT/PT bandsPlanned/timetabled Hours Student
Numbers - 2013/14
Allocation
National Funding
Rate
Base Student
Funding - Allocation
1.1 300 £4,000 £1,200,0001.2 100 £4,000 £400,0001.3 50 £2,700 £135,0001.4 50 £2,133 £106,6501.5 Students 50 1.6 FTEs * 10.00 £4,000 £40,0001.7 550 £1,881,650
* the total learners shown in table 1 do not include FTEs
Full Time Students (at least 540 hrs)Part Time students (450-539 hrs)Part Time students (360-449 hrs)Part Time students (280-359 hrs)Part Time (up to 279 hrs)Total
Worked Example (A3) – Allocation/Outturn9
Table 1: Breakdown of funding for FT/PT bandsPlanned/timetabled Hours Student
Numbers - 2013/14
Allocation
National Funding
Rate
Base Student
Funding - Allocation
Student Numbers -
2013/14 Outturn
National Funding
Rate
Base Student
Funding - Outturn
1.1 300 £4,000 £1,200,000 300 £4,000 £1,200,0001.2 100 £4,000 £400,000 100 £4,000 £400,0001.3 50 £2,700 £135,000 50 £2,700 £135,0001.4 50 £2,133 £106,650 50 £2,133 £106,6501.5 Students 50 50 1.6 FTEs * 10.00 £4,000 £40,000 10.00 £4,000 £40,0001.7 550 £1,881,650 550 £1,881,650
* the total learners shown in table 1 do not include FTEs
Full Time Students (at least 540 hrs)Part Time students (450-539 hrs)Part Time students (360-449 hrs)Part Time students (280-359 hrs)Part Time (up to 279 hrs)Total
Worked Example (A4) – Allocation10
Table 2: Overall Funding Calculation 2013/14 Allocation 2013/14 Factor Amount Running
Total2.1 £1,881,6502.2 0.900 -£188,165 £1,693,4852.3 1.100 £169,349 £1,862,834
2.4 £200,000 £2,062,834
2.4 10.74%
2.5 1.200 £412,567 £2,475,400
x RetentionFunding Rate per student (table 1)
x Programme Cost Weighting
Disadvantage (as percentage of funding allocation)
x Area Costs
+ Disadvantage (£/student) - Allocation
Worked Example (A5) – Allocation/Outturn11
Table 2: Overall Funding Calculation 2013/14 Allocation 2013/14 OutturnFactor Amount Running
TotalFactor Amount Running
Total2.1 £1,881,650 £1,881,6502.2 0.900 -£188,165 £1,693,485 0.900 -£188,165 £1,693,4852.3 1.100 £169,349 £1,862,834 1.100 £169,349 £1,862,834
2.4 £200,000 £2,062,834
2.4 10.74% 10.74% £200,000 £2,062,834
2.5 1.200 £412,567 £2,475,400 1.200 £412,567 £2,475,400
x RetentionFunding Rate per student (table 1)
x Programme Cost Weighting
+ Disadvantage (as percentage of funding allocation) - Outturn
x Area Costs
+ Disadvantage (£/student) - Allocation
Worked Example (B1) – More students, lower bands
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Table 1: Breakdown of funding for FT/PT bandsPlanned/timetabled Hours Student
Numbers - 2013/14
Allocation
National Funding
Rate
Base Student
Funding - Allocation
Student Numbers -
2013/14 Outturn
National Funding
Rate
Base Student
Funding - Outturn
1.1 300 £4,000 £1,200,000 230 £4,000 £920,0001.2 100 £4,000 £400,000 100 £4,000 £400,0001.3 50 £2,700 £135,000 100 £2,700 £270,0001.4 50 £2,133 £106,650 100 £2,133 £213,3001.5 Students 50 100 1.6 FTEs * 10.00 £4,000 £40,000 20.00 £4,000 £80,0001.7 550 £1,881,650 630 £1,883,300
* the total learners shown in table 1 do not include FTEs
Full Time Students (at least 540 hrs)Part Time students (450-539 hrs)Part Time students (360-449 hrs)Part Time students (280-359 hrs)Part Time (up to 279 hrs)Total
Worked Example (B2) – More students, lower bands
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Table 2: Overall Funding Calculation 2013/14 Allocation 2013/14 OutturnFactor Amount Running
TotalFactor Amount Running
Total2.1 £1,881,650 £1,883,3002.2 0.900 -£188,165 £1,693,485 0.900 -£188,330 £1,694,9702.3 1.100 £169,349 £1,862,834 1.100 £169,497 £1,864,467
2.4 £200,000 £2,062,834
2.4 10.74% 10.74% £200,175 £2,064,642
2.5 1.200 £412,567 £2,475,400 1.200 £412,928 £2,477,571
x RetentionFunding Rate per student (table 1)
x Programme Cost Weighting
+ Disadvantage (as percentage of funding allocation) - Outturn
x Area Costs
+ Disadvantage (£/student) - Allocation
Worked Example (C1) – Less students, higher bands
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Table 1: Breakdown of funding for FT/PT bandsPlanned/timetabled Hours Student
Numbers - 2013/14
Allocation
National Funding
Rate
Base Student
Funding - Allocation
Student Numbers -
2013/14 Outturn
National Funding
Rate
Base Student
Funding - Outturn
1.1 300 £4,000 £1,200,000 320 £4,000 £1,280,0001.2 100 £4,000 £400,000 123 £4,000 £492,0001.3 50 £2,700 £135,000 20 £2,700 £54,0001.4 50 £2,133 £106,650 20 £2,133 £42,6601.5 Students 50 20 1.6 FTEs * 10.00 £4,000 £40,000 4.00 £4,000 £16,0001.7 550 £1,881,650 503 £1,884,660
* the total learners shown in table 1 do not include FTEs
Full Time Students (at least 540 hrs)Part Time students (450-539 hrs)Part Time students (360-449 hrs)Part Time students (280-359 hrs)Part Time (up to 279 hrs)Total
Worked Example (C2) – Less students, higher bands
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Table 2: Overall Funding Calculation 2013/14 Allocation 2013/14 OutturnFactor Amount Running
TotalFactor Amount Running
Total2.1 £1,881,650 £1,884,6602.2 0.900 -£188,165 £1,693,485 0.900 -£188,466 £1,696,1942.3 1.100 £169,349 £1,862,834 1.100 £169,619 £1,865,813
2.4 £200,000 £2,062,834
2.4 10.74% 10.74% £200,320 £2,066,133
2.5 1.200 £412,567 £2,475,400 1.200 £413,227 £2,479,360
x RetentionFunding Rate per student (table 1)
x Programme Cost Weighting
+ Disadvantage (as percentage of funding allocation) - Outturn
x Area Costs
+ Disadvantage (£/student) - Allocation
Reconciliation - Transitional Protection (TP) and/or Formula Protection Funding (FPF) – Underperformance only
Table 1: TP examples No TP TP + ve
1.1 Funding Allocation £3,000 £3,000
1.2Transitional Protection (TP) or any Formula Protection Funding (FPF) £0 £300
1.3 Net Allocation * £3,000 £3,300
1.4Funding Allocation (that is being used for under performance reconciliation only) £3,000 £3,000
1.5 Tolerance - standard 2.5% £75 £75
1.6 Funding Claim (figures from ILR FIS Funding Claim report). £2,400 £2,400
1.7 Clawback -£525 -£525
This slide shows how TP or FPF is used in calculating funding reconciliation for underperformance for CCPs only.
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Reconciliation - Transitional Protection (TP) and/or Formula Protection Funding (FPF) – Over performance only
Table 1: TP examples No TP TP + ve
1.1 Funding Allocation £3,000 £3,000
1.2Transitional Protection (TP) or any Formula Protection Funding (FPF) £0 £300
1.3 Net Allocation * £3,000 £3,300
1.4Funding Allocation (that is being used for over performance reconciliation only) £3,000 £3,300
1.5 Tolerance - standard 2.5% £75 £75
1.6 Funding Claim (figures from ILR FIS Funding Claim report). £3,400 £3,400
1.7 Responsive growth £325 £25
This slide shows how TP or FPF is used in calculating funding reconciliation for over performance for CCPs only.
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Outturn compared to allocation. Shows the alternatives at Final from In-year position
In-yearFINAL
(payment adjustment to take account of in-year clawback)
Interim clawback adjustments Under (below tolerance) Within tolerance Over delivery
Under Clawback ClawbackNo final adjustment
other than reversal of in-year clawback
Reversal of in-year clawback and
Growth (subject to affordability)
Within tolerance
No reconciliation adjustment Clawback No final adjustment Growth (subject to
affordability)
Over delivery Interim growth (subject to affordability)
ClawbackRecovery of all interim
growth
No final adjustment other than recovery of
interim growth
Growth (subject to affordability)
Adjustments from In-year to Final Claims (CCPs only)
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In-year reconciliation example A (all in £)
In-year out-turn (ILR figure) 870Allocation 1,000Variance - 130Add in-year tolerance (2.5%) + 25In-year adjustment (clawback) - 105
Funding out-turn (final Claim) 900Allocation 1,000Variance - 100Add final tolerance (2.5%) + 25Final reconciliation value (clawback) - 75
Final reconciliation cash adjustment - 75 (final) deduct (in-year clawback) - 105 Cash final adjustment (re-pay clawback) + 30
* Any clawback calculated from in-year funding figures that is not then calculated from the final claim figures is refunded to CCPs who have increased their delivery above the in-year figure.
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In-year reconciliation example B (all in £)
Allocation 1,000February R06 out-turn (ILR figure) 97090% of allocation (February) 900Variance + 70Potential interim in-year adjustment (growth) + 70
Funding out-turn (final Claim) 1,200Allocation 1,000Variance + 200Subtract final tolerance (2.5%) - 25Final reconciliation value (growth) + 175
Final reconciliation cash adjustment +175 (final) deduct (in-year growth) - 70 Cash final adjustment (growth) + 105
* All growth payments are subject to affordability.
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EFA Funding guidance for young people 2013 to 2014
CCP Reconciliation 2013/14
EFA Young People’s Funding Team