EFA Clawback

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This topic contains 7 replies, has 4 voices, and was last updated by  Martin West 4 years, 9 months ago.

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  • Garry Welborn
    Participant

    Hi,

    I have been asked if the EFA operate a process of claw-back in situation where the contract allocation is not met.

    Can anyone please advise?

    Kind Regards

    Garry

     
    #21184

    Alan Taws
    Participant

    Not the expert on this but I think ordinarily if you are underperforming at the key census points (which occur quartely) then your allocation will be reduced in year so as to avoid the potential of clawback. But if by year end you have still undelivered even though your allocation may have been reduced then you will be subject to clawback (you are allowed a few percent tolerance on under delivery which I think is 3%) and the clawback is normally then spread over several months and taken direct from your payments due in the next contract year. If you don’t have a contract in the next year then the EFA will use other means to recover any funding owed – no idea how exactly though.

     
    #21185

    Alan Taws
    Participant

    Not the expert on this but I think ordinarily if you are underperforming at the key census points (which occur quarterly) then your allocation will be reduced in year so as to avoid the potential of clawback. But if by year end you have still undelivered even though your allocation may have been reduced then you will be subject to clawback (you are allowed a few percent tolerance on under delivery which I think is 3%) and the clawback is normally then spread over several months and taken direct from your payments due in the next contract year. If you don’t have a contract in the next year then the EFA will use other means to recover any funding owed – no idea how exactly though.

     
    #21186

    Martin West
    Participant

    Hi Garry,
    No the EFA allocations are based on previous delivery so in effect any under delivery will be reflected in future contract allocations.
    For info on this and Changes to EFA funding for 16 to 19 year olds – 2016 to 2017 see:
    https://registration.livegroup.co.uk/efa/ContentTabs/Embed.aspx?dfid=19157
    HTH

     
    #21188

    Garry Welborn
    Participant

    Thank you both,

    Regards Garry

     
    #21189

    KarenS
    Participant

    Hi,

    For EFA the reconciliation process is as follows:

    Under-performance (clawback) calculation

    29. For calculating clawback at the final reconciliation calculation, the EFA will apply a
    tolerance of the higher of 1.0% of the programme allocation or £5,000 when comparing
    the total programme cash delivered against the total programme allocation (excluding
    FPF).

    30. The EFA does not apply in-year funding reductions that disadvantage contract
    institutions when it comes to calculating final reconciliation. Therefore an institution with
    significant under-performance will be subject to in-year clawback rather than a change to
    their agreed allocation.

    31. Contract institutions whose ILR R06 funding out-turn is below 60% of their
    programme funding allocation will be subject to clawback from April 2016. The detail is
    set out in Annex C and the Contract Institution Reconciliation 2014 to 2015 example
    workbook.

    Annex available at:

    https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/453857/ILR_funding_returns_2015_to_2016v1.pdf

    Hope this helps.

    Karen

     
    #21194

    Garry Welborn
    Participant

    Thank you Karen,

    That guidance is very clear and helpful

    Regards

    Garry

     
    #21195

    Martin West
    Participant

    Hi Garry,
    As you are a Local Authority with a standard grant allocation, clawback is not applicable as it only applies to contract institutions.
    HTH

     
    #21210
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