EFA Funding guidance for young people 2013 to 2014 CCP Reconciliation 2013/14 EFA Young Peoples Funding Team.

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.

3

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 1.200

X X -£188,165 X £169,349 + £200,000 X £412,567550 £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 £40,000

1.7 550 £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


Numbers - 2013/14

Allocation

National Funding

Rate

Base Student


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 £40,000

1.7 550 £1,881,650 550 £1,881,650




Worked Example (A4) – Allocation10

Table 2: Overall Funding Calculation 2013/14 Allocation 2013/14 Factor Amount Running

Total2.1 £1,881,650

2.2 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 £1,881,650

2.2 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 Retention

Funding Rate per student (table 1)


+ Disadvantage (as percentage of funding allocation) - Outturn

x Area Costs


Worked Example (B1) – More students, lower bands

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Numbers - 2013/14

Allocation

National Funding

Rate

Base Student


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 £80,000

1.7 550 £1,881,650 630 £1,883,300




Worked Example (B2) – More students, lower bands

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Total2.1 £1,881,650 £1,883,300

2.2 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 Retention




x Area Costs


Worked Example (C1) – Less students, higher bands

14


Numbers - 2013/14

Allocation

National Funding

Rate

Base Student


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 £16,000

1.7 550 £1,881,650 503 £1,884,660




Worked Example (C2) – Less students, higher bands

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Total2.1 £1,881,650 £1,884,660

2.2 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 Retention




x Area Costs


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 adjustmentGrowth (subject to

affordability)

Over deliveryInterim 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

EFA Funding guidance for young people 2013 to 2014 CCP Reconciliation 2013/14 EFA Young Peoples Funding Team.

Documents

funding reconciliation

final funding allocation

programme funding allocation

allocation clawback

final reconciliation

funding allocation3

disadvantage funding

funding variances