EFA Funding Query

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This topic contains 10 replies, has 7 voices, and was last updated by  ChloeStokes 6 years, 7 months ago.

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  • lapsed_user
    Participant

    Afternoon,

    I’m hoping somebody with experience in EFA funding can help me with this as I’m still trying to get to grips with things. I’m working through some data and I either have an anomaly or I have misunderstood the EFA funding rules!

    I’ve ran the EFA Funding Claim Report from FIS that shows how many learners we have on each funding band, and also the more detailed Summary of Funding (Valid) Report that shows me exactly which learner is on what band. During reconciliation, I noticed that I have a group of learners that started in 13/14, stayed on programme passed the ‘start period’ but then withdrew from the programme prior to their planned end date without achieving any aims. However, these learners seem to have 100% funding values where I would expect it to be 50%, is this an error or am I missing something?

    Each learner listed on the report seems to be at 100% funding value, I expect that for learners who have completed their Core aim, and even those that are still live but I thought it would adjust to 50% for these withdrawn learners, any ideas?

    Thanks

    Steve

     
    #6068

    JanLowery123
    Participant

    Hello Steve

    As I understand it, you will received full funding for them in 13/14 and the adjustment will be made from your funding in 14/15

    Hope this helps

    Jan

     
    #6069

    Tony Braithwaite
    Participant

    Hi Steve,

    Jan is almost right, but the breakdown by bands and the retention rate from your 13/14 ILR data will be used for your 15/16 EFA Allocation and applied to your 14/15 starts (From R04 Dec 14) uplifted by the ratio of R04 to R14 from the 13/14 ILR.

    The reason for this is that the 13/14 ILR is not complete until you have started the following year so the breakdown cannot be used for the the immediate following year, but is the the year after that. So, lagged funding is actually 2 years lag.

    If you can, I suggest you try an get hold of your EFA allocation statement for 14/15 and you will see that the breakdwon and retention data has come from your 12/13 ILR.

    Hope that helps

    Tony

     
    #6071

    dsmithshape
    Participant

    Hi Steve,

    The amount you see on your FIS Funding Claim report per learner will be the £4000 national rate multiplied by a retention factor taken from your 11/12 returns (retention factor being the mid point between your own retention rate and 100, if memory serves) multiplied by the disadvantage funding factor for your organisation.

    So, the ‘full funding’ is already reduced by a retention factor (as Tony mentioned, actually from 2 years ago!), if you are completely new to EFA funding I believe they will have decided on a factor to apply.

    Those learners leaving early without achieving a core aim this year will reduce your retention factor for your 15/16 allocation thereby reducing the ‘full funding’ amount per learner in 15/16.

    Darren

     
    #6073

    lapsed_user
    Participant

    Thank you all for your responses, the funding is completely different to what I’m used to so I’m still trying to get my head around things. It’s confusing that the funding rules say that we’d earn 50% funding if a learner withdrew before their planned end date without completing.

    This is our first year with EFA, we had a little bit of unfunded EFA in 12/13 but this is the first full year. So these withdrawn learners will receive 100% funding for 13/14, but will lower our funding value in 15/16 due to them affecting our retention factor?

    Thanks again 🙂

    Steve

     
    #6086

    Simon
    Participant

    This has had us confused for sometime, as Steve says a learner who leaves before completing we earn 50% of the funding.

    How is this reflected in the retention factor? If our retention rate is 50% then the retention factor is 75%? What am I missing?

     
    #6087

    Tony Braithwaite
    Participant

    As darren has mentioned, the retention factor is halfway between your retention rate and 100%. The sum can be expressed as (1+ retention rate)/2.

    This effectively halves the funding for your non-retained learners – except that it’s applied to future cohorts as explained above.

     
    #6088

    Simon
    Participant

    The EFA Funding rules says a provider will EARN 50% funding for a learner in 13/14 that withdraws before completing, when in reality a provider is paid 100% of the funding in 13/14 and the 50% reduction affects NEW learners in 15/16, so to me the guidance is very misleading.

     
    #6089

    lapsed_user
    Participant

    If a sub-contractor were to utilise part of a provider’s EFA allocation how would you calculate the sub-contractor’s entitlement to funding and when should it be paid?

     
    #6090

    dsmithshape
    Participant

    The way I finally got my head around it was to use a fairly simple example (ignoring disadvantage);

    If you had 100 learners and 2 years ago your retention rate was 50% so EFA uses a retention factor of 75% (half way between your rate and 100%).

    The £4000 national rate multiplied by 75% would = £3000 per learner x 100 learners = £300000 funding

    This work out the same as if 50 of your learners were fully funded (£4000 x 50 learners = £200000) + 50 learners half funded (£2000 x 50 learners = £100000) the total funding would still be £300000.

    The part of this that doesn’t make sense to any provider (myself included) used to ‘paid on actual’ is the lagged approach that means if you dramatically improve your retention rate in year you don’t feel any benefit until over a year later, similarly if you have a bad year you get slammed with lower rates over a year later.

     
    #6099

    ChloeStokes
    Participant

    Hi All

    We have misunderstood the misleading 50% funding rule for withdrawals up until very recently so I am absolutely delighted to come across this thread.

    I am in the process of writing an explanation of the misunderstanding to our management team and hoping to include a paragraph from the EFA funding guidance which sets out the above in a straightforward (!!) way – as yet no luck. Does anyone know of a document/page/paragraph reference at all?

    Many thanks.

     
    #6127
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