Sub contracting update 20 02 13


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This is a brief presentation prepared by FE Associates to explain the new sub contracting requirements for academic year 2013/14.

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Sub contracting update 20 02 13

  1. 1. Sub-Contracting Update 1
  2. 2. Sub Contracting –NEW - SFA Funding Rules 2013/14•  If you have not previously subcontracted, provision, you must get approval in writing before awarding a contract to a subcontractor•  You must not use the Register of Training Organisations as a substitute for carrying out your own due diligence when appointing subcontractors•  You must not appoint subcontractors that are not listed on the Register of Training Organisations if your contract or an existing sub contract is over £100,000. In this instance they must be on the RTO before you contract with them. 2
  3. 3. You may not enter in new or extend existing subcontracting arrangements Ifany of the following circumstances apply;•  If Ofsted has rated your leadership and management as inadequate•  If you do not meet the SFA Minimum Standards•  If the outcome of the annual financial health assessment the SFA carry out is inadequate You remain responsible for all subcontracted provision You must have a legally binding contract with each subcontractorYou may not award a subcontract if:•  There is an above average risk warning from a credit agency•  A resolution or court order has been made to wind up or liquidate the company•  The statutory accounts are overdue 3
  4. 4. NEW - SFA Funding Rules 2013/14Distributing income between main contractor and subcontractors“You must publish your supply-chain fees and charges policy on your websitebefore entering into any subcontracting agreements for the 2013/14 academicyear.”As a minimum you must, include the following in your supply-chain fees andcharges policy:a Your reasoning for subcontractingb The policy’s contribution to improving your and your subcontractor’s quality of teaching and learningc The typical percentage range of fees retained to manage subcontractors, and how this range is calculatedd The support subcontractors will receive in return for the fee you charge 4
  5. 5. NEW - SFA Funding Rules 2013/14Distributing income between main contractor and subcontractorse If appropriate, the reason for any differences in fees charged for or support provided to different subcontractorsf Payment terms between you and your subcontractors – timing of payments in relation to delivering provision and timescale for paying invoices and claims for funding receivedg How and when the policy is communicated to and discussed with current and potential subcontractorsh Timing for policy reviewi Where the policy is published 5
  6. 6. Sub Contracting “You must also publish data on the actual level of funding paid and retained for each of your subcontractors in 2013/14. This data must be published within 30 days of the 2013/14 ILR closing” You must, as a minimum, include the following in your published supply-chain fees and charges: •  Name of the subcontractor •  UKPRN number of the subcontractor •  Contract start and end date •  Type of provision (for example, 16-18 Apprenticeships, 19+ Apprenticeships, classroom learning, workplace learning •  Funding the SFA have paid to you for provision delivered by the subcontractor in that academic year •  Funding you have paid to your subcontractor for provision delivered in that academic year •  Funding you have retained in relation to each subcontractor for that academic year •  If appropriate, funding your subcontractor has paid to you for services or support you have provided in connection with the subcontracted provision 6
  7. 7. Sub Contracting “You must publish this information on fees and charges alongside your supply- chain fees and charges policy to allow all your supply chain fees and charges information to be viewed in context.” “Your fees and charges information should only include ‘provision subcontracting’. Provision subcontracting is when you subcontract the delivery of full programmes or frameworks. It is not subcontracting the delivery of a service as part of the delivery of a programme (for example, buying the delivery of part of an Apprenticeship framework or outreach support).” “If you are not sure whether your subcontracting arrangements are defined as ‘provision subcontracting’, discuss this with your relationship manager.” 7
  8. 8. Sub Contracting Ensure all fund holders read paragraphs 314 to 346 in the 2013/14 Funding Rules regarding subcontracting. 8