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Scottish Qualifications Authority Introduction The Scottish Qualifications Authority (SQA) is an executive Non-Departmental Public Body (NDPB) established by statute to carry out administrative, commercial, executive and regulatory functions on behalf of Government. In this capacity SQA:

provides specialist advice to Scottish Ministers and others;

has a national remit;

has a Board whose members are appointed by Scottish Ministers which meets seven times a year;

employs its own staff, who are not civil servants;

is responsible for managing its own budget. The Chief Executive is employed and appointed by the Board, with the approval of the Scottish Ministers and is accountable to the Board for the performance, management and staffing of SQA, and for ensuring that its functions are delivered and targets met through effective and properly controlled executive action. SQA Role SQA is the national accreditation and awarding body in Scotland. The Education (Scotland) Act 1996 sets out SQA’s functions and the governance arrangements to oversee SQA’s distinct accreditation, regulatory and awarding functions. SQA is sponsored by the Scottish Government’s Learning Directorate. SQA is the statutory awarding body for qualifications in Scotland. Its duties are to develop, validate, quality assure and award a national framework of qualifications for Scotland. In addition, SQA has a statutory duty as the regulator for National Qualifications in Scotland as defined by the Equality Act (2010). As an awarding body, SQA works with schools, colleges, universities, industry, and government, to provide high quality, flexible and relevant qualifications. It strives to ensure that its qualifications are inclusive and accessible to all, that they recognise the achievements of learners, and that they provide clear pathways to further learning or employment. In its accreditation role, it accredits vocational qualifications that are offered across Scotland, including Scottish Vocational Qualifications, and approves bodies that wish to award them. SQA qualifications Qualifications serve a range of important purposes in validating learning for individuals and for employers:

They support the standards of achievement required by the economy, businesses, and society.

They show the achievements of the individual.

They provide a record of an individual’s progression as they develop through life, allowing them to build on their prior learning and to progress in education, training and work.

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In order to achieve this, SQA qualifications must:

Reflect the appropriate level of learning, and capture all aspects of the required skills.

Be flexible enough to suit different learning styles and different employers’ needs.

Provide units of learning that are relevant, valued and can be used to benefit the individual, society and business.

Allow for progression through lifelong learning as the needs of individuals, society and businesses change.

Be of a quality and standard that ensures that value is maintained over time and career moves.

There are SQA qualifications for everyone:

Students in schools and colleges.

Trainees and apprentices.

People who already have qualifications, and those who don’t.

People who are in employment, and those who aren’t.

SQA qualifications cover a broad range of skills and knowledge, from Languages,

Mathematics, History, and Science, to Accounting, Early Years Childcare, Conservation of

Masonry, and Customer Service. In addition, SQA develops Customised Awards that are

tailored to the requirements of particular employers, and provides English Language

qualifications for learners whose first language is not English.

Almost all young people in Scotland gain SQA qualifications in secondary school and/or in

further education colleges. Increasingly, SQA provides qualifications from junior to

professional levels in the workplace. SQA aims to ensure that all qualifications are

developed and maintained to the same rigorous high standards, and that they all make

valuable and unique contributions to Scotland’s Skills Strategy.

International Engagement

SQA’s international activities continue to support the Scottish Government’s international

strategy; its plans to engage with specific countries; and the promotion of Scottish education

and Scotland worldwide.

The reputation of Scotland’s education and training system has been enhanced through the

provision of a range of qualifications and the delivery of a number of consultancy projects. In

particular, there has been increased demand for HNDs and Customised Awards and for

assistance to develop in-country vocational qualifications and national qualifications

frameworks.

SQA has engaged with international universities to enhance and increase the mobility of

students seeking to complete part of their degree at an overseas university. The Diploma to

Degree programme is firmly established and generated interest from universities in a

number of countries including the USA, Canada and Australia.

Engagement with international partners, organisations and agencies ensures SQA continues to enhance its expertise and skills through mutual learning helping to meet the objectives of Scotland’s International Framework through sharing our knowledge, skills and technical expertise for global good.

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SQA Accreditation

SQA also has a responsibility under the Education Act, through its accreditation function, to set and maintain standards for awarding bodies, and for accredited qualifications such as Scottish Vocational Qualifications and other licence to practice qualifications. The accreditation function is a discrete and autonomous part of SQA, and is accountable to the Accreditation Committee and then onto Scottish Government. The Accreditation Committee is a statutory committee having been established by the Education (Scotland) 1996 Act. Financial Overview As a Non-Departmental Public Body (NDPB) SQA agrees its key objectives annually with Scottish Government and these are then set out in the Corporate Plan which is approved by Ministers each year. In line with other NDPBs, SQA’s autonomy over of its financial and regulatory affairs is set out in the Management Statement and Financial Memorandum. SQA generates the majority of its income by charging for the services it provides to schools, colleges and training providers. The prices charged for these services in Scotland are agreed with Scottish Ministers and have been held constant since 2010. Because of the nature of its work, SQA has the potential to generate other income through the provision of awarding services, consultancy work, and commercial contracts in markets outside Scotland. SQA’s expenditure is largely its people costs in terms of staff salaries and the costs of Appointees - the 15,000 teaching professionals and industry specialists who support SQA operations annually. However, information management and the associated systems used to process data and successfully certificate candidates are critical in supporting SQA in delivering its role and responsibilities, and this is the other main area of expenditure. SQA is increasingly focussing on how it can take advantage of technology to continue to deliver improvements in its service delivery and efficiencies in its processes.

As a NDPB, SQA must provide qualifications across a wide portfolio with a range of

subjects, sectors and levels for the benefit of Scotland. Many of these qualifications have by

their nature low or very low uptake and, as a result the cost of development and delivery is

not offset by candidate entry charges.

As SQA is unable to generate sufficient income to cover the costs of delivering its services

the remaining funding requirement is met through Scottish Government grant in aid from the

Learning Directorate. Scottish Government also commissions SQA to deliver specific

programmes of work such as the partnership development and delivery for Curriculum for

Excellence (CfE). These pieces of work are subject to separate funding and reporting

regimes by Scottish Government. SQA develops its draft budget based on assumptions on

candidate entry income, its views on opportunities in markets outside Scotland, and the

costs to the organisation of providing its services. Once approved by its Board of

Management, SQA submits its Corporate Plan, including its draft budget to Scottish

Government annually for approval. Once the Plan and Budget is agreed, Scottish

Government issues a Budget Allocation and Monitoring letter which allows SQA to publish its

Corporate Plan and Budget and sets out the terms of the grant support that will be provided

to the organisation.

SQA’s Accreditation function is funded separately by Scottish Government Directorate for

Advanced Learning and Science reflecting the fact that it is a discrete and autonomous

function.

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Information for the Committee

The Committee has asked that SQA address a number of issues, as appropriate. SQA has

endeavoured to provide an overview of the approach being taken by the organisation in

these areas.

1. The role of your organisation in seeking to narrow the educational attainment gap

in schools.

SQA influences attainment through its engagement with stakeholders and by working in

partnership to implement Scottish Government policy. SQA is one of a number of

national and local partner organisations responsible for Curriculum for Excellence (CfE) -

the 3-18 Curriculum in Scotland.

Our role is to design and develop new National Qualifications and assessments that

support the principles and aims of CfE. We also work closely with Education Scotland

and the Scottish Government on wider CfE developments. We provide information to

learners, parents and carers, employers, teachers, lecturers and universities on the aims

of CfE and actively support the continuing professional development of teachers and

lecturers; developing their knowledge of the assessment process and standards that are

applied to ensure that we can routinely and consistently give assurance about a

student’s ability to meet the four capacities underpinning CfE.

Curriculum for Excellence aims to ensure that all children and young people in Scotland

develop the knowledge, skills and attributes they will need if they are to flourish in life,

learning and work, now and in the future. The four capacities are: successful learners,

confident individuals, responsible citizens and effective contributors.

The range of SQA qualifications on offer allows diverse routes to improved attainment for

learners, whatever their background. The qualifications not only allow learners to

demonstrate attainment against consistent and stringent standards, but also recognise

personal development, employability and entrepreneurial skills. There is a strong focus

on encouraging learners to reflect on their progress and skills set, enabling them to be

successful, productive members of society.

2. The extent to which your organisation, in seeking to deliver relevant Scottish

Government priorities, has autonomy over spending and policy decisions.

As a Non-Departmental Public Body (NDPB) SQA agrees its key objectives annually with

Scottish Government and these are then set out in the Corporate Plan which is approved

by Ministers each year. SQA’s autonomy over of its financial and regulatory affairs is set

out in the Management Statement and Financial Memorandum.

SQA generates the majority of its income from the charges for the services it provides to

schools, colleges and training providers. The prices charged for these services in

Scotland are agreed with Scottish Ministers. Additionally because of the nature of its

work SQA has the potential to generate other income through the provision of awarding

services, consultancy work, and commercial contracts in markets outside Scotland.

SQA develops its draft budget based on assumptions on candidate entry income, its

views on opportunities in markets outside Scotland, and the costs to the organisation of

providing its services.

http://www.educationscotland.gov.uk/

http://home.scotland.gov.uk/

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SQA then submits its Corporate Plan including its draft budget to Scottish Government

annually for approval. Once approved, Scottish Government issues a Budget Allocation

and Monitoring letter which allows SQA to publish its Corporate Plan and Budget and

sets out the terms of the grant support that will be provided to the organisation.

The SQA Board has the responsibility to oversee the successful delivery to that plan.

Regular updates are provided through Finance and policy meetings between the

executive and Scottish Government departments. Scottish Government has observer

status at SQA Board meetings.

3. The measures your organisation takes to evaluate the impact and effectiveness of

its work, and to report on this in as transparent and accessible a manner as

possible.

SQA seeks to ensure the effectiveness of its work by developing close partnerships with

interested stakeholders at key stages of the development, delivery and review of its

activities. Communication and sharing of information is also a mechanism by which SQA

is seeking to be more open and transparent.

SQA assesses its impact and effectiveness through its work with partners, stakeholders,

employers, colleges, local authorities, schools and training providers, by consulting and

seeking feedback via established forums both ‘real’ and ‘virtual’ and through formal and

informal means. In the development phase of CfE for example, SQA published draft

documents on its web site and encouraged educators to engage and provide comment

that could be considered as the development process continued.

Additionally, SQA meets on a regular basis with partners in the education system and

carries out opinion surveys of customers and stakeholders on a regular basis, the last

surveys being carried out 2014 and 2015 respectively.

The organisation utilises social media to inform and communicate, providing open

channels where thoughts and ideas can be discussed. Information is gathered on the

leading topics which are reviewed on a regular basis to help improve services, products

and communication.

The Scottish Qualifications Authority Act 2002 established the SQA Advisory Council.

The Council's primary role is to consider and advise SQA on the needs and views of our

stakeholders in relation to our activities and helps us to develop, maintain and deliver our

portfolio. This is a key forum where detailed discussion can take plan around SQA’s

current and planned activities.

SQA publishes statistics on qualification attainment and other relevant information on its

web site. The Annual Statistical Report and Digest together with reports on performance,

attainment, processes and procedures are available from the SQA website.

4. How your organisation, in seeking to work in partnership to deliver national

objectives, can still be held accountable for its particular contribution.

Within the CfE partnership there is a clear, plan which outlines our specific

responsibilities for which we are held accountable. SQA has a well-defined programme

plan which details each deliverable and the date by which it is to be delivered. SQA

closely tracks performance to this plan and provides monthly reports to the Curriculum

for Excellence Implementation group. Partnership is also critical to success in working

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with colleges and training providers and with industry bodies to ensure that our

qualifications support their needs. SQA provides a wide portfolio of qualifications that

form part of the Modern Apprenticeship frameworks that are a key component of the

Scottish Government’s industry strategy.

SQA is also closely involved with the implementation of Developing Scotland’s Young

Workforce through the provision and development of qualifications to support this

activity. There is a clear understanding of the role of each partner and SQA closely

monitors our required actions.

5. How your organisation’s key spending programmes – both individual and

collective (i.e. with other agencies or bodies) – help to achieve relevant outcomes

in the National Performance Framework.

SQA works in close partnership with the Scottish Government, aligning its strategic

objectives and activities with the Scottish Government National Outcomes.

As stated earlier SQA works in partnership with Education Scotland and Scottish

Government to deliver CfE, and our partnership working with other organisations, in

particular Skills Development Scotland and the regional Colleges, is aiding the delivery

of Developing the Young Workforce (DYW).

6. In light of budget pressures, how effectively it undertakes long-term financial

planning.

SQA prepares short term and medium term financial models based on assumptions on

the projected income associated with candidate entries in schools, colleges and training

providers, and on estimates of the potential growth of its other income sources. These

financial models are reviewed on a regular basis both at executive and Board level, and

discussed with Scottish Government.

SQA’s expenditure is largely its people costs in terms of staff salaries and the costs of

Appointees - the 15,000 teaching professionals and industry specialists who support

SQA operations annually. Information management and the associated systems used to

process data and successfully certificate candidates are critical in supporting SQA in

delivering its role and responsibilities. SQA is increasingly focused on how it can take

advantage of technology to continue to deliver improvements in its service and create

efficiencies in its processes.

7. The key future challenges for your organisation and the steps you are taking to

address them.

SQA’s main challenge is to continue to provide high quality services and products to all

its customers in an environment of ever increasing pressure on public finances.

SQA like many other public bodies is seeking to take advantage where appropriate of the

opportunities offered by the application of technology to its procedures and processes.

This will not only have the effect of creating efficiencies but will also allow for better

customer service and quality improvements. As an organisation, SQA has made

progress in applying a digital approach to service delivery, moving from entirely paper

based marking of the summer qualifications to 60% electronic marking during the current

year. The timing of the implementation of some of these changes will be determined by

the level of finance available.

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As has been stated before, SQA has the ability to generate income outwith Scotland by

utilising its expertise, products and services. SQA continues to increase its income from

other sources to support it activities in Scotland.

8. The role played by your organisation in advance of its budgetary allocations being

published in Scottish Government draft budgets.

The Scottish Government Sponsor Division and its Finance Business Partner work with

SQA to understand the financial position. Meetings are held on a regular basis, and SQA

provides quarterly returns indicating financial progress against agreed targets.

The discussions with Scottish Government enable a shared understanding of the

financial challenges faced by SQA in the short to medium term. For example, the

deadline for schools to process their candidate entries for National Qualifications is 31

March. This means that draft budgets are accepted by Scottish Government pending the

finalisation of the position regarding entry income. This budget arrangement was agreed

with Scottish Government recognising that the presentation pattern for the new CfE

qualifications will evolve over time.

SQA Accreditation is funded separately by the Scottish Government Directorate for Advanced Learning and Science. This is the subject of separate budget discussions between Accreditation and the Scottish Government Directorate and determines the extent of activities within that function.

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Specific themes for the Scottish Qualifications Authority:

1. The main ways in which the SQA contributes to the development of education

policy and the main outcomes it has helped to deliver.

As the national body in Scotland with responsibility for the accreditation, development

and awarding of qualifications the main way in which SQA contributes to education policy

is in relation to the development and assessment of qualifications. Over the past 10

years SQA has worked with national partners including Scottish Government and

Education Scotland and local partners including schools, colleges and local authorities,

in the development and implementation of Curriculum for Excellence. The organisation is

also a founding partner in the Scottish Credit and Qualifications Framework - the SCQF.

SQA works collaboratively and shares expertise in qualifications design, assessment and

quality assurance with a range of national stakeholders, including for example, Scottish

Government, Education Scotland and Skills Development Scotland in, for example, the

development of Foundation Apprenticeship pathfinders as part of Developing the Young

Workforce.

SQA’s and predecessor bodies’ experience over 100 years in developing qualifications

and qualification systems is also recognised in our international work over the past 20

years in partnerships with governments, colleges, universities, schools and industry in a

variety of countries.

The organisation delivers a range of diverse outcomes. This year saw the first learners in

Scotland achieving the new Higher qualifications developed under Curriculum for

Excellence. This builds on the successful introduction of National 4 and National 5

qualifications in 2014. In 2015 results certificates were sent to 142,862 candidates

across Scotland. The candidates have been rewarded for completing coursework, exams

and unit assessments throughout the academic year 2014-15 in a wide range of

qualifications and subjects to suit all learners. This included Access, Intermediates,

Nationals, new and existing Highers and Advanced Highers. In addition, a range of

Awards, Skills for Work, National Progression Awards and National Certificates were

also certificated.

SQA continues to develop and award a broad range of Higher National Certificates and

Diplomas and Scottish Vocational Qualifications which supports the needs of Scottish

learners to gain employment or develop in their current job throughout their lifelong

learning journey. Our Higher National Certificates and Diplomas are higher education

qualifications and are viewed as both excellent preparations for employment as well as

providing an alternate pathway into University study. In many cases HNDs allow learners

to progress into the second or third year of University degree programmes. SQA has

been working with partners to enhance articulation of HNC/Ds into degrees.

SQA’s vocational qualifications cover a wide range of sectors and different SCQF levels.

They are developed through extensive engagement with employers and professional

bodies to ensure they are fit for purpose. The breadth and depth of the vocational

portfolio, including mainstream and niche or specialist sectors, allows SQA to support

skills development across an extensive range of industries. SQA’s qualifications are key

components of most of the Modern Apprenticeship frameworks that are important for

Scotland.

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Almost all young people in Scotland gain SQA qualifications in secondary school and/or

in further education colleges. Increasingly, SQA provides qualifications from junior to

professional levels in the workplace.

2. How the SQA assesses whether it is providing value for money.

SQA can demonstrate that it has delivered all key activities within a reducing funding

environment and its aim is to work with the Scottish Government to protect the quality,

standards and range of the qualifications portfolio whilst aiming to reduce the

organisations need to rely on grant in aid. Scottish Government provides grant in aid

funding over and above candidate entry income and other income generated by SQA.

The graph below indicates the level of funding that has been provided by Scottish

Government, and generated through commercial activity, over the last 5 years to support

SQA’s extensive portfolio of qualifications. SQA also receives Scottish Government grant

funding for specific programmes as part of the partnership to support and deliver policy

such as CfE.

As a Public Body, SQA must provide qualifications across a wide portfolio with a range of

subjects, sectors and levels for the benefit of Scotland.

SQA is taking steps to secure a better understanding of its costs, however in order to

truly understand whether SQA provides value for money, it is important that the nature of

its role be taken into account. SQA is closely monitoring its activities so that informed

decisions can be made taking into account not just costs but value to regions and

sectors. Many of these qualifications have by their nature low or very low uptake and, as

a result the cost of development and delivery is not offset by candidate entry charges.

It is fair to say that there is a consensus that education and qualifications bring positive

gains to individuals in terms of personal development but also in terms of earning

potential. Possession of qualifications leads to increased labour market participation, and

contributes more indirectly through the success of businesses and the economy. Recent

research has focused mainly on the English or European systems for Further Education

(FE), Higher Education (HE) and Vocational Qualifications (VQ) and they reveal a

consistent message:

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“Education and training are not just about developing human capital – someone’s

knowledge, skills and competences. They develop social, cultural and identity, as

well as human capital. These four types of personal capital combine in different

ways to influence not only a person’s knowledge, skills and competences, but also

the extent to which that person will learn and subsequently use the skills acquired.

Ability is not just what you know, but also knowing how to use what you know.

Education and training’s influence on behaviour is just as important as its influence

on skills.” 1

3. How it evaluates the impact of its activities

Development


learners, employers, colleges, schools and training providers, by consulting and seeking

feedback via established forums both ‘real’ and ‘virtual’ and through formal and informal

means.

To ensure SQA’s portfolio of qualifications is inclusive, addresses learner progression

needs, and reflects Scotland’s economic, social, political and cultural requirements, SQA

scrutinises proposed developments to ensure there is a demonstrated need and reviews

existing qualifications periodically for currency and relevance and impact. Careful

analysis using published and commissioned research is undertaken to inform

qualification and assessment development within SQA.

In the development and review phases, SQA engages on a regular basis with national partners and representatives from education, business and other stakeholders such as the professional bodies, teaching associations, sector skills councils, learners and parents. Forums are established to solicit input and feedback to allow SQA to develop the qualifications to incorporate as much as possible, the ideas and requirements of the different interested parties.

Delivery

For new qualifications SQA ensures that we have put in place appropriate quality

assurance to support the maintenance of standards. Throughout the delivery process of

new and existing qualifications, SQA engages with stakeholders such as Local

Authorities, Unions, Schools, Colleges and Parent groups to solicit feedback on our

qualifications, their assessment and quality assurance and other activities.

Regular meetings are held to allow a clear understanding of how SQA’s processes and

procedures are operating and to find ways to support the customers’ needs whilst still

maintaining the required quality and standards.

The CfE Management Board and Implementation Group have overseen the development

and implementation of the new qualifications and provide vital feedback on progress. In

addition SQA meets regularly with a range of key stakeholders to assess progress with

implementation.

1 “Benefits of vocational education and training in Europe for people, organisations and countries” CEDEFOP,

Publications office of the European Union, 2013

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Review

SQA utilises a range of feedback channels including web, social media, written

comments and sectoral/subject stakeholder groups to gather feedback on our

qualifications. We inform and communicate using a range of channels where thoughts

and ideas can be discussed. Information is gathered on the leading topics which are

reviewed on a regular basis to help improve services, products and communication.

The Scottish Qualifications Authority Act 2002 established the SQA Advisory Council.

The Council's primary role is to consider and advise SQA on the needs and views of our

stakeholders in relation to our activities and helps us to develop, maintain and deliver our

portfolio. This is a key forum where detailed discussion can take place around SQA’s

current and planned activities. SQA has also established a College Curriculum Advisory

Group to engage with senior college staff with a lead role for the curriculum to inform our

work on our portfolio of qualifications.

SQA has developed a detailed plan for the evidence driven evaluation of the new

qualifications introduced to support CfE. This plan was reviewed and approved by SQA’s

Qualifications Committee and will be undertaken to identify areas of success and areas

where improvements might be made. As with any qualification, changes must be

introduced in a managed way to ensure consistency of standards year on year. This

work includes gathering feedback from learners, teachers and senior staff in schools on

the new qualifications in the autumn of this year.

SQA develops a wide range of high quality, relevant statistical intelligence to inform its

activities and review the full portfolio of qualifications. The Annual Statistical Report and

Digest together with reports on performance, attainment, processes and procedures are

available from the SQA website. SQA carries out opinion surveys of its customers and

stakeholders on a regular basis, the last surveys being carried out 2014 and 2015

respectively.

4. How it has demonstrated leadership in ensuring that qualifications continue to be

relevant to the needs of learners, educators and employers.

SQA fulfils this part of its remit in several key ways. Firstly, SQA ensures that staff are

fully engaged and up to date with current research and good practice in assessment and

learning and well trained for their roles. Secondly sectoral/ subject teams have been

established to ensure that they are up date with current developments in their area of the

qualifications portfolio. This includes for example, looking at European benchmarking of

standards for modern language, reviewing changes to National Occupational Standards

to understand the impact that may have on SQA qualifications, engaging with industry

bodies around existing and new qualification requirements. Thirdly SQA field staff

engage locally on the relevance of SQA qualifications and any new needs that are

emerging.

SQA’s Research and Policy team is responsible for commissioning and collating

research to understand current and future qualification development requirements. It

does this in conjunction with key stakeholders, such as sector skills councils, CBI,

Chambers of Commerce, trade associations. This work informs the decision making

process for the development of SQA’s products and services.

For every SQA managed development/review, the process of establishing the need for a

qualification has to be completed whether the idea has come from Scottish Government,

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SQA, employers or others. To ensure SQA’s portfolio of qualifications is inclusive,

addresses progression needs, and reflects Scotland’s economic, social, political and

cultural needs, SQA scrutinises proposed developments to ensure there is a

demonstrated need and reviews existing qualifications periodically for currency and

relevance.

We work collaboratively and share our expertise in qualifications design, assessment

and quality assurance with a range of national stakeholders, including Scottish

Government, Education Scotland and Skills Development Scotland with for example, the

development of Foundation Apprenticeships as part of Developing Young Workforce.

SQA seeks to ensure the effectiveness of its work by developing close partnerships with

interested stakeholders at key stages of the development, delivery and review of its

activities. Communication and sharing of information is also a mechanism by which SQA

is seeking to be more open and transparent.


employers, colleges, local authorities, schools and training providers, by consulting and

seeking feedback via established forums both ‘real’ and ‘virtual’ and through formal and

informal means. In the development phase of CfE for example, SQA published draft

documents on its web site and encouraged educators to engage and provide comment

that could be considered as the development process continued. Additionally, SQA

meets on a regular basis with partners in the education system and carries out opinion

surveys of customers and stakeholders on a regular basis, the last surveys being carried

out 2014 and 2015 respectively.

5. How the SQA plans to become self-financing and the likely impact of this on publicly-funded education providers.

SQA generates the majority of its income from the charges it makes for the services it provides to schools, colleges and training providers. Additionally because of the nature of its work, SQA has the potential to generate other income through the provision of awarding services, consultancy, and commercial contracts inside and outside Scotland. The third source of income comes from Scottish Government grant funding. A breakdown of SQA income for 2014/15 is shown in the graph below.

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SQA develops and maintains a very broad portfolio of many thousands of qualifications to

satisfy the needs and aspirations of the people of Scotland.

The cost of delivering qualifications in schools is largely funded by candidate entry charges

with the funding gap being met by both the generation by SQA of other income, and by

additional grant in aid from Scottish Government. As stated previously, the Scottish

Government provides funding for the development of specific qualifications for CfE. It is

important to note that SQA does not receive funding from Scottish Government for SQA

qualifications developed for and delivered by Colleges or Training Providers. Development

and operational costs are met through fees charged for entries.

As an NDPB SQA provides qualifications that are not commercially viable to meet the needs

of its stakeholders and to service niche sectors that are important to Scotland. As a result

the fees charged do not cover the cost of the portfolio and therefore SQA receives additional

grant funding from Scottish Government.

SQA’s prices to customers in Scotland have been static since 2010, and in 2013/14 Scottish

Government agreed with SQA and COSLA that the fees charged to Local Authority Schools

would be held at the levels charged for 2012/13 entries for 3 years during the early

implementation period of the new qualifications under CfE. Colleges, employers and training

providers have continued to be charged entry fees based on the prices set in 2010.

SQA operates within complex environments and moving forward it faces a number of

challenges. These include:

the forecasted changes to the demographics of the Scottish population and impact

on candidate entries and consequently SQA income;

candidate entry income does not cover the costs of the broad portfolio of

qualifications provided in Scotland;

continued pressure on public service finances and the implications for SQA’s grant-

in-aid funding; and

an increasingly competitive market within Scotland and within the global economic

environment.

It is predicted that the factors above may result in a decrease in fee income from candidate

entries in Scotland. However due to the fixed costs associated with providing qualifications,

SQA will not secure a corresponding reduction in expenditure.

As part of its broad remit, SQA supports the Scottish Government International agenda by

engaging internationally and provides services and qualifications in a variety of different

countries. This has a number of benefits such as supporting the development of

qualifications and qualifications frameworks in emerging nations, reinforcing the value of

Scottish Education in the global arena, encouraging shared learning and information

exchange so SQA can continue to progress, and also providing the opportunity to generate

additional income.

SQA has demonstrated its ability to use its core expertise to generate income and over time,

reduce its dependency on the public purse. This has meant income generation from SQA

qualifications delivered by institutions outside of Scotland, and undertaking consultancy and

contract work based on SQA’s reputation and expertise.

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The main constraint that SQA faces in becoming less dependent on Government funding is

the difficulty in making the appropriate step changes to its business processes that would

remove the limitations on the scalability and flexibility of SQA’s resources. At the current

time, SQA continues to focus on the successful delivery of the national qualifications in

Scotland and is working with its partners to support this early stage of the new qualifications

and the associated assessment processes. A key aspect of this is to ensure that standards

are well understood and are applied consistently across schools. SQA is therefore working

closely with the Scottish Government to consider the timing for addressing opportunities over

the short to medium term.

SQA has a continuous improvement programme, to continue to develop as an efficient,

effective and contemporary organisation. The organisation will use partnerships to add value

to its products and services and to provide leverage and capacity to its work.

SQA will continue to manage its cost base and identify efficiencies and investments in new

processes that will reduce costs over time.

The effect of this strategy on publicly funded education providers would be to ensure that

SQA can continue to develop the breadth of qualifications and to maintain the high quality of

qualifications needed in Scotland at minimum cost to the public purse.

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Appendix 1

Figure 1

Figure 2

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Appendix 2

Other Useful Links

■Access Art

■Aimhigher

■Association of Colleges

■Association for Learning Technology

■BBC Scotland Education website

■British Institute of Architectural Technologists

■Edinburgh Women’s Training Course

■Education Course Advisory Service

■Equality and Human Rights Commission

■HSN.uk.net

■My World of Work

■National Centre for Vocational Education Research Ltd (Australia)

■Online Courses

■Our Skillsforce

■Project website for LEOPlus

■Scotland Europa

■Scottish Enterprise

■SFC

■Scottish Graduate

■Sector Skills Alliance Scotland (SSAScot)

■Sector Skills Development Agency

■Skills Development Scotland

■The Construction Industry Council Standards Committee

■The Scottish Government

■The Workforce Unit

■Young Enterprise Scotland

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Appendix 3

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Stakeholder Engagement List

Organisation

Association of Directors of Education Scotland (ADES)

Education Scotland

Colleges Scotland

Scottish Credit & Qualifications Partnership (SCQF)

Scottish Funding Council (SFC)

Skills Development Scotland (SDS)

National Parent Forum of Scotland (NPFS)

School Leaders Scotland (SLS)

Scottish Chambers of Commerce

Scottish Council of Independent Schools (SCIS)

Scottish Training Federation (STF)

Universities and Colleges Admission Service (UCAS)

Association of Colleges (AOC)

Ofqual

National Apprenticeship Service

Skills Funding Agency

Welsh Assembly Government (as regulator)

Association of Employment and Learning Providers (AELP)

Department for Employment & Learning, Northern Ireland (DELNI) as regulator

Higher Education Funding Council for England

Universities Scotland

Scottish Development International (SDI)

UK Trade & Investment (UKTI)

Confederation of British Industry (CBI)

Convention of Scottish Local Authorities (CoSLA)

Educational Institute of Scotland (EIS)

Federation of Small Businesses (FSB)

Institute of Directors (IOD)

Scottish Parent Teacher Council (SPTC)

Scottish Secondary Teachers Association (SSTA)

Scottish Trades Union Congress (STUC)

UK Commission for Employment and Skills (UKCES)

Voice

Highlands & Islands Enterprise (HIE)

Quality Assurance Agency (QAA)

Scottish Enterprise Industries & Policy

Scottish Council for Voluntary Organisations (SCVO)

British Council

Department of Business, Inovation & Skills (BIS)

Chamber of Commerce (Local)

Education UK Scotland

European Commission

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Organisation

IL&FS Education&Technology Services Ltd

International Energy Skills & Training Alliance (IESTA)

National Qualifications Authority of Ireland (NQAI)

National Skill Development Corporation (NSDC)

Quality Assurance Agency (QAA)

Scottish Advisory Board

Scottish Council for Development & Industry (SCDI)

Scotlands Colleges International

Scottish Police College

SCQF Partnership

UK International Skills Forum

UK Naric

UK Skills Forum and Scottish Advisory Board

UNESCO

CCEA (Northern Ireland)

Assessment and Qualifications Alliance (AQA)

NHS Education Scotland

Federation of Awarding Bodies

Joint Council for Qualification

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