Apprenticeship Contribution less than 5%

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This topic contains 5 replies, has 4 voices, and was last updated by  anneliese 11 months ago.

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  • anneliese
    Participant

    One of our Apprenticeship employers has been less than the expected 5% contribution after the apprentice has been moved to a different framework pathway (admin error!). It has been agreed not to charge the employer the difference.

    Do I now need to make a funding adjustment to the programme to make the contribution collected 5% of the funding value? Contribution collected is £900 Funding band is £12000 so funding remaining set to 75%.

    Many thanks

     
    #389044

    Martin West
    Participant

    Hi,
    The first point is that if the Employer is liable to co-invest then the Provider (for whatever reason) cannot waive this charge or part of it as they must collect the full contribution from the employer.

    Your figures do not make sense as the 5% contribution was only applicable to new starts from April and 5% of a Total price would only be £600.

    In addition, you do not use a funding adjustment to reduce funding for the Programme, but you could reduce the Training cost recorded as TNP1.
    HTH

     
    #389053

    anneliese
    Participant

    Thanks for your ever prompt response Martin.

    Yes, I did mean 10% – the student started Nov 2018 (1st day back after nearly 4 weeks AL!)

    I have fed the inability to change the contribution values back to the relevant Director here and await his response – I am glad you have come back saying the same thing, much appreciated :0)

    Thank you – I hadn’t thought about the TNP1 amount – we have currently set this to £9k and left the funding adjustment alone. Will this pass audit, or should the full funding band be set accurately to match the LARS values?

     
    #389061

    Mark
    Participant

    If I understand this correctly the learner was put on a £9k programme when it should have been £12k.

    As you have agreed to stand this loss then change TNP1 to 9000 as this is what you are charging for the course.

    I agree with Martin though as your figures don’t really make sense, perhaps you need to explain it better than you have

     
    #389063

    Ruth CJ
    Participant

    Was it that the original pathway band maximum was £9k, and the new pathway band maximum was £12k? If this was pre April 2019 (so 10%), and you’ve decided to charge no more than £900, then you’r price can be no more than ten times that, so £9,000. Your TNP would have to be £9,000. You can’t have the additional £2,700 from the ESFA if you’ve not asking the employer to pay their £300 part.

    You shouldn’t be doing “funding adjustments” on apprenticeship programme aims. You adjust apprenticeship funding changing the price/TNP, and not the Funding adjustment for prior learning field.

    Your TNP1 amount should always be the price you’ve charged, it definitely shouldn’t always be exactly the full funding band. In fact, the ESFA are starting to get suspicious of providers who have every apprentice price set at exactly band maximum. If you’ve got any apprentices with prior learning, you should be reducing your prices to values below the band maximum. If you’re not, the ESFA will want to see that you’ve correctly assessed every apprentice as having no prior learning at all.

     
    #389107

    anneliese
    Participant

    Fab – thank you for your responses and clearing my brain fog!

     
    #389113
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