EFA Funding guidance for young people 2014 to 2015

CCP Reconciliation 2014/15

EFA Young People’s Funding Team

CCP Reconciliation 2014/15

Main reconciliation rules

• Tolerance for both under and over performance is now the

higher of 1% or £5,000;

• Growth above the cap is not usually paid;

• Growth cap is of 30% of the allocation, with the minimum cap

value of £100,000 and the maximum cap value of £1 million;

• Clawback is based on main programme funding, excluding TP

and FPF;

• Growth is based on programme funding plus TP and FPF

• End-year position should always be the same no matter what

happened at the intermediate points.

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Reconciliation timeline3

Data Return Adjustments to PaymentsR06 (February – 6 months data)

Growth – interim payments in April for institutions achieving above their allocation (tolerance and cap apply)

Clawback – institutions delivering below 60% or with no 2015/16 allocations will have clawback from April to July (see next slide for more detail).

Other institutions – reconciliation statement summarising the current level of delivery based on the R06 return

R10 (June – 10 months data)

Growth – interim payments in August for institutions above their allocation (tolerance and cap apply)

Clawback – profiled from August to year-end for any institutions achieving less than 95% of allocation

R13 (September – 12 months data)

Growth – no additional payments, await audited figures (tolerance and cap apply)

Clawback – updated figures in November and December based on final rules

R14 (October – final return)

Growth – final payment in December based on final rules (tolerance and cap)

Clawback – final adjustments in December based on final rules.

Notes: 1. Apart from R06 clawback, final rules apply in all circumstances. 2. Growth payments are always subject to affordability

CCP Reconciliation 2014/15

R06 Clawback Rules

• Under 40% delivery – stop payments from April to July

• 40-60% delivery – payments from April to July reduced by half

• 60-80% - potential recovery as follows:

• No recovery from April to June

• Provisional reduction of July payment by half, but subject to review based on R10

• No data – treat as though below 40%

• No allocation for 2015/16 – treated individually

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CCP Reconciliation 2014/15

Growth (1) - Overview

• Growth will be funded subject to affordability, and we will scale

payments to manage affordability

• We commit to pay for a minimum of 50% of eligible growth (after

the rules on tolerance, cap have been applied)

• The final year-end position for providers with growth will be the

same, irrespective of at what point in the year the growth has

occurred

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CCP Reconciliation 2014/15

Growth (2) – In-year and End-year

• Where an institution has already exceeded its full contract in-year,

we will pay for 50% of the growth based on R06 or R10 data

returns as appropriate

• At the year-end we will do a final check of affordability and confirm

the level of scaling of final growth claims

• We will then pay any additional growth for institutions that had in-

year growth, and fund all growth up to the agreed level for

institutions that did not have in-year growth

• For an institution that achieves over their contract value, the

overall growth amount paid will therefore be the same irrespective

of when in the year they reached that level

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CCP Reconciliation 2014/15

Communications

• Detailed rules published in ILR Funding Returns (part of

funding guidance)

• Regular updates in-year in e-bulletin and on website:

www.gov.uk/16-to-19-education-commercial-and-charitable-providers

• Any clawback will be notified by the end of the preceding

month, including a profile for future months

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