1.    Introduction

1.1         Purpose

The purpose of this document is to give details of the Funding Policy offered by Rochdale Training to sub-contracted providers. This policy should be read in conjunction with other Rochdale Training policies and procedures and the sub-contract. The Policy applies to all supply chain activity supported with funds supplied by the Education and Skills Funding Agency or any successor organisations.

1.2         Scope

The Funding Retained Policy will be communicated via the Finance Manager to all sub-contracted provision. The Rochdale Training website will publish the policy. This policy shall be operated with effect from 1st August 2013 and revised annually.

1.3         Responsibility

Responsibility lies with the Senior Management Team to ensure that the Policy is reviewed annually and is adhered to.

1.4         Entering into sub-contracting arrangements

Rochdale Training sub-contracts in order to extend the range of its provision and to address the needs and support the delivery of learning in the community. In addition to supporting progression, it also helps us to support Local, Regional and National Strategies and reach out to under-represented groups, making us a more inclusive organisation.

Rochdale Training will at all times undertake fair procurement activities, conducting robust Due Diligence procedures on potential sub-contractors to assure compliance with the Common Acord at all levels to ensure the highest quality of learning delivery is made available, demonstrating value for money and a positive impact on learner lives.

All applicants must demonstrate the quality of their provision by passing due diligence assurances implemented by Rochdale Training. Upon successful completion, Rochdale Training will enter into sub-contractor agreements annually, to commence 1st August each year. A contract must be signed and on file before delivery commences. 

Rochdale Training does not appoint sub-contractors. Rochdale Training will use its supply chain to optimise the impact and effectiveness of service delivery to the end user, unless they are listed on the Register of Training Organisations.

1.6         Contracting

Contract documents will require both parties to agree that the achievements of supply chains are attained through adherence to both the letter and spirit of contracts or partnerships. Signatories therefore commit that all discussions, communications, negotiations and actions undertaken to build, maintain and develop supply chains will be conducted in good faith.

We will only award contracts for delivering funded provision to legal entities. If the legal entity is a registered company, it must be recorded as ‘Active’ on the Companies House database.

1.7         We will not award a contract to a legal entity if:

§   It has an above average risk warning from a credit agency.

§  It has passed a resolution (or the court has made an order) to wind up or liquidate the company, or administrators have been appointed, or

§   Its statatory accounts are overdue.

Disclaimer:  Rochdale Training reserves the right to amend its sub-contracting arrangements at any time in accordance with the terms and conditions contained in its standard contract for sub-contracted provision.             

2.    Fees

The funding retained varies according to the sub-contractor’s performance, but in the majority of cases it is 20%.

Funding is retained to ensure the Contract is delivered to ESFA Standards. To ensure this we will work in partnership to deliver Equality & Diversity, Health & Safety, Safeguarding/Prevent update training, workshops/IAG on improving teaching, learning and assessment and quality improvement procedures, for example, staff observations, audits and help with policy development/implementation.  Rochdale Training will inform sub-contractors of the financial value to be invoiced each month (1 month in arrears) by issuing the data return and a Purchase Order.

Accurate invoices will be paid within 30 days upon receipt of the invoice.

2.1         A bonus of 5%, where negotiated, will be paid to sub-contractors where the following has been met:

§   Success Rate Target

§   Timely Success Rate Target

§   Job Outcome/Progression Target where applicable

Written authorisation will be made by the Chief Executive.

A further reduction may apply at the discretion of the Chief Executive for those sub-contractors who:

§  Have consistently achieved a Grade 1 for teaching, learning, assessment and other key learner experiences.

§   Achieved less than 5% error rate at internal audit of SFA documentation

§  Implemented their own quality improvement procedures e.g. internal staff observations and internal audit, SAR etc.

2.2         A penalty of 5% will be applied if the sub-contractor’s success/timeliness rates do not meet minimum levels of performance.  These will be set annually by Rochdale Training and will take into account national averages and the minimum levels of performance set by the ESFA.

This penalty may also apply if the sub-contractor:

§  Receives a Grade 4 (inadequate) for Teaching, Learning & Assessment and other key learner experiences.

§   Has an internal audit error rate of over 5%.

§  Has inadequate Safeguarding Procedures or inadequate Safeguarding Training for learners.

§   If any ACE Certificates are outstanding at the end of the Contract Year.

§  For achievements over 90 days of the expected end dates – 50% of the achievement payment will be with-held from Apprenticeship Frameworks.

§  For learners on Standards Apprenticeship programmes a penalty may be applied if the learner does not go through the gateway within 90 days of the expected date for entry.

3.    Quality of Provision

Sub-contracted activity is part of Rochdale Training’s provision and as such, the quality of provision will be monitored and managed through the existing Quality Assurance processes and procedures which encompass all sub-contracted activity fully.

Rochdale Training will support sub-contracted provision by:

§  Providing appropriate and well-experienced business support staff.

§  Issuing a sub-contractor process and procedure manual with all relevant documentation at commencement of the contract year to ensure quality of documentation and a full understanding of Rochdale Training procedures.

§  Communicating regularly with Partners; plan and carry out quarterly Performance Reviews to monitor achievement and progression rates.

§  Carrying out, quarterly, full programme reviews of quality and provision.

§  Carrying out internal audit provision.

§  Providing Education Skills Funding Agency update workshops.

§  Carrying out announced and unannounced visits to monitor IAG and Initial Assessment teaching, learning and assessment and appropriate use of ESFA funds.

§  Providing update training on Equality & Diversity and Safeguarding/Prevent and sharing best practice, including teaching, learning and assessment workshops.

§  Collating, in partnership with sub-contracted provision feedback from learners and employers

§  Administering the programme payment schedule as agreed.