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Supply-Chain Fees and Charges Policy. Vice-Principal - Business Development and Estates

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GUILDFORD COLLEGE GROUP POLICY ACADEMIC/NON ACADEMIC: Non Academic FRAMEWORK AREA: Sub contracting POLICY TITLE: Supply-Chain Fees and Charges Policy DATE OF ORIGIN: May 2013 ORIGINATOR: Vice-Principal
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GUILDFORD COLLEGE GROUP POLICY ACADEMIC/NON ACADEMIC: Non Academic FRAMEWORK AREA: Sub contracting POLICY TITLE: Supply-Chain Fees and Charges Policy DATE OF ORIGIN: May 2013 ORIGINATOR: Vice-Principal - Business Development and Estates Consulted with: Executive Team FOR APPROVAL BY: Finance and General Purposes Status: Approved Approved by: Finance & General Purposes Committee Supersedes: New document Approved on: 24 th June 2013 For Review on: May 2014 STATEMENT OF POLICY PURPOSE This policy defines the framework for the fees and charges for provision subcontracting as set out in the Skills Funding Agency Funding Rules 2013/2014. APPLICABILITY This policy applies to all fees and related charges associated with provision subcontracting of the delivery of full programmes or frameworks. The provision subcontracting agreements relate to those agreements between providers and Guildford College of Further and Higher Education. DISSEMINATION The policy will be distributed to relevant College Faculties and/or Departments. Dissemination within Faculties and Departments to staff is the responsibility of the respective management teams. The Policy will be published on the College public website in accordance with the requirements of the Skills Funding Agency rules. GENERAL POLICY CONTENT 1. Introduction 1.1 The College subcontracts provision to a number of training providers in line with the College s overall strategy. 1.2 As part of the subcontracting arrangement the College applies a management fee and/or charge to the funding allocated to subcontractors. 1.3 The Skills Funding Agency s Chief Executive, by law, must make the best use of resources when securing the provision of education and training. 1.4 To ensure enough funding is being allocated for providing high-quality education and training the Skills Funding Agency will monitor fees and charges associated with subcontracting. 1.5 The Skills Funding Agency requires lead providers to publish supplychain fees and charges policy and actual end-of-year supply chain fees and charges on the College s website. 2. Subcontracting 2.1 Guildford College of Further and Higher Education have had subcontracting agreements for circa 15 years. 2 P a g e 2.2 The College subcontracts provision to training providers to extend the range of provision, diversify location, access hard to reach learners and develop community links and support. 2.3 The provision provided by subcontractors is considered to be delivery where the provider is a leading expert in the sector; the College does not have capacity or skills to deliver; or the method of delivery is specialised. 2.4 Training providers deliver in locations and at delivery centres not accessible to the College, e.g. specialist arenas. 2.5 The College recognises the learning environment at campus is not always desirable to every learner. The College subcontracts with providers who have specialist skills and relationships with inaccessible learners, e.g. providing training to those in sheltered accommodation. 3. Fees and Charges 3.1 The College charges a management fee to all subcontractors accessing funding for provision and the management of the arrangement. 3.2 The Finance and General Purposes Committee (F&GP) has approved a management fee range of between 5% to 20% for the academic year The level of management fee is calculated for each individual provider. The parameters applied to the calculation are based on a risk-banding framework. 25 Management Fee (%) Management Fee (%) Risk Banding 3 P a g e 3.4 The risk-banding framework is calculated on the value of the contract, length of relationship with the College, performance and quality of delivery, the assessed level of administration and guidance provided from the College and audit results at year end. The scoring is calculated on the level/value (High = 3, Medium = 2, Low = 1), impact (High = 3, Medium = 2, Low = 1), and the Score is calculated by Probability x Impact. Risk-Banding Scoring The total contract value assessment is based on the Skills Funding Agency s contract funding levels used for the Register of Training Organisation Length of relationship is judged on the number of years a contract has been held between the College and the Subcontractor Performance and Quality of delivery is assessed against the College s Quality Assurance Framework and performance against target in previous contracts Employer responsive delivery requires a high level of administrative support. New Training Providers or established Training Providers starting new delivery type, e.g. apprenticeships require higher levels of guidance, advice and quality support than those with established delivery The error rate of the audit results at year end will be judged and the levels are based on the error rating tolerance applied by the Skills Funding Agency. Level/Value Framework Criteria i Contract value 100k 500k - 100k 500k ii Length of relationship 6 years 3 6 years 3 years iii Performance and Quality Good Satisfactory Poor iv Administration support Low Medium High v Audit results 5% error rate 5 15% error rate 15% error rate 3.5 The management fee is agreed with the provider by the Vice Principal Business Development and Estates, as approved by the College s Board of Governors. 3.6 The management fee will be applied to the following circumstances: 4 P a g e 3.6.1 Funding drawn down directly from the Education Funding Agency and/or Skills Funding Agency and allocated to the subcontractor as part of the contract Funds draw down through the 24+ Further Education Loan using Guildford College s online portal access to fund learning To fees collected for co-funded learners. The Skills Funding Agency states in their rules that it is an expectation that all cofunded fees are collected from either the employer or the learner, as per the applied circumstances. The College will apply the management fee for the co-funded fees to the funding. 3.7 The College will apply a deduction to the management fee calculated using the risk banding framework for contracts which include co-funded learners. The amount of deduction will be in relation to the value of the contract and the number of co-funded learners. The overall management fee will be within the 5-20% range. 3.8 The College acknowledges that there may be a requirement to deviate from the management fee structure in exceptional circumstances, e.g. fixed charges per learner may be applied in lieu of a management fee. Differences will be dealt with on an individual basis. 3.9 The College recognises good performance against contracts. To acknowledge subcontractors who meet their contracted performance a reduction in management fee will be applied. The reduction will be per capita on the following basis: Achievement of 100% of original cash value of contract (Maximum Contract Value at the commencement of academic year) an overall contract reduction in management fee of 2% will be applied. The reduction of management fee will be confirmed on achievement of 100% in all elements and will be applied at end of year contract reconciliation, subject to audit and retention maintained at 98% The College has a specific subcontractor s payment process. Payments are made monthly in arrears and based on actual performance and in accordance to the funding claims received in month Claims for funding from the subcontractor will be due five working days before the College s Individual Learning Record submission to the Data Service An individual subcontractor statement is produced from the Provider Funding Report (PFR) or Learning Information Suite Report (LIS). The statement is produced and sent to the partner within five working days of receipt of the PFR or LIS from the Data Service. 5 P a g e 3.13 On receipt of a signed confirmation of acknowledgement and acceptance of statement from the subcontractor the College will pay the amount due within ten working days The College will provide the following support and services for the fee charged: Performance management; Advice and guidance; Curriculum development; Assistance with funding and Ofsted requirements; Data reports; Audit, to ensure compliance with funding requirements; Continuous Professional Development; Support and advice with E-learning platforms; Safeguarding support; Documentation; Advertisement on website of partnership working; Sharing Best Practice; E-portfolio licences for contracted learners; Network opportunities The College is committed to improving quality of teaching and learning. To achieve this with subcontractors the College will provide a nominated member of the Quality and Curriculum Standards team The following are examples of support the College will provide subcontractors to improve teaching and quality: Quality cycle agreement; Post induction survey; Course Consultative Meetings; Review of course documents; Lesson observations; Self Assessment Report support and target setting; Review of Internal and Standard Verifier reports; Employer feedback, if appropriate; Course Review; Ofsted readiness. 4. Communication 4.1 The policy will be disseminated to all current and potential subcontractors. 4.2 The policy will be provided to all current and potential subcontractors at the commencement of contract negotiations. 6 P a g e 4.3 The policy will be reviewed on an annual basis prior to the start of the following academic year and contract negotiations. 4.4 The policy is published on the College s main website and available on the College s intranet site. 5. Data Return 5.1 The Skills Funding Agency requires the College to publish data on the actual level of funding paid and retained for each of the subcontractors in 2013/2014. The data must be published within 30 days of the 2013/2014 ILR closing. 5.2 The following information is required, as a minimum: Name of the subcontractor UKPRN number of the subcontractor Contract start and end date Type of provision, e.g Apprenticeships, 19+ Apprenticeships, classroom learning, workplace learning Funding for the provision delivered by the subcontractor in that academic year: - that the College received from the Skills Funding Agency; - that the College paid to the subcontractor; - that the College has retained in relation to each subcontractor. If appropriate, funding the subcontractor has paid to the College for services or support that the College has provided in connection with the subcontracted provision. 6. Related Policies/Documents 6.1 College Strategy 6.2 Skills Funding Agency Funding Rules 2013/ Quality Assurance Framework 7. Further Information 7.1 Please refer to the College website where additional guidance documents can be found 7 P a g e Appendix 1 13/14 Subcontractors with funding values based on the final funding R14 Name ACM Andrew Lyon CPQ Futsal Italia Conti R & D care Road Runner Soccar Coaching Sportiv8 Training For You West London Training Princes Trust Pro Train Solution Learning Curve UKPRN Contract Start 01/08/ /08/2013 Carry ins 01/08/ /08/ /08/ /08/ /08/ /08/2013 Carry ins Carry ins 01/08/ /08/ /08/2013 Contract End 01/08/ /08/ /08/ /08/ /08/ /08/ /08/ /08/ /08/ /08/ /08/2014 SFA - SFA - EFA - ASB - Classroom EFA and SFA EFA and SFA Classroom EFA and SFA EFA and SFA SFA Apps and Classroom EFA and SFA SFA - SFA - Type of Provision Classroom ASB Apps ASB - Workplace Classroom Classroom SFA - Apps SFA - Apps Classroom Classroom workplace SFA - Apps Classroom Classoom Classoom Total Funding for Provision 684, , , , , , , ,179, , , , , , Mangament Fee - Funding retained by College 61, , , , , , , , , , , , Payment made to subcontractor 559, ,780 19, , , , , , , , , , , ,018.40
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