EFA Young People Funding Guidance 2014-2015 CCP Reconciliation Rules

EFA Funding guidance for young people 2014 to 2015 CCP Reconciliation 2014/15 EFA Young People s Funding Team

CCP Reconciliation 2014/15 2 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.

3 Reconciliation timeline Data Return R06 (February 6 months data) Adjustments to Payments 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 Growth interim payments in August for institutions above their allocation (tolerance and cap apply) R10 (June 10 months data) Clawback profiled from August to year-end for any institutions achieving less than 95% of allocation Growth no additional payments, await audited figures (tolerance and cap apply) R13 (September 12 months data) Clawback updated figures in November and December based on final rules Growth final payment in December based on final rules (tolerance and cap) R14 (October final return) 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 4 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

CCP Reconciliation 2014/15 5 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

CCP Reconciliation 2014/15 6 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

CCP Reconciliation 2014/15 7 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