Provider support manual:

Additional guidance for apprenticeship standards recorded on Funding model 81

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Additional guidance for apprenticeship standards recorded on Funding model 81

All funded apprenticeship standard programmes started before 1 May 2017 are recorded on Funding model 81. Funded apprenticeship standard programmes originally started before 1 May 2017 should also be recorded on Funding model 81, for example where an apprentice restarts a standard programme, in line with the apprenticeship funding rules.

Source of funding of SOF105 must be recorded in the Learning Delivery FAM fields on all funded learning aims for these apprenticeships.

Data about each apprenticeship standard must be reported in the ILR by a single lead provider as set out in the Funding Rules.

Funding model 81 standards: Eligibility for enhanced apprenticeship funding

For standards funded through Funding model 81, the Learning Delivery FAM type ‘Eligibility for enhanced apprenticeship funding’ (EEF) may be used in the following circumstances:

EEF code 2

Entitlement to 16-18 apprenticeship funding where the learner is 19 or over.

Record EEF code 2 when:

• the apprentice is restarting a programme on or after their 19th birthday but is entitled to 16-18 funding.

• the apprentice is aged 19-24 and has an EHC plan.

EEF code 4

Entitlement to extended funding for apprentices.

Record EEF code 4 when the apprentice is eligible for extended funding.

> Refer to the Funding Rules for guidance about extended funding.

If an apprentice started their programme aged 18 and then is 19+ when they start one of their component aims within the programme, an EEF code is not required.

If an apprentice is recorded with the Learning Delivery FAM type EEF due to restarting their programme, then the Restart indicator (RES) must also be recorded in the Learning Delivery FAM fields.

Funding model 81 standards: recording financial data (TNP,PMR)

You must record financial details about the programme in the Apprenticeship Financial Records entity. This information is used to calculate government funding for the apprentice.

Each apprenticeship standard programme will have a number of separate financial records associated with the programme aim.

Fields contained in the Apprenticeship Financial Record dataset

Apprenticeship financial type indicates the type of financial information being recorded:

• TNP identifies negotiated price details

• PMR identifies cash payment records

Apprenticeship financial code: identifies different types of TNP or PMR records

Apprenticeship financial record date is the date associated with the financial record:

• The date on a TNP record is the date that the price applies from .

• The date on a PMR record is the date on which the payment is received from the employer. For a reimbursement payment, the PMR date is the date on which the payment is sent to the employer.

Apprenticeship financial amount is the amount of money recorded on the financial record. This is the actual amount in pounds, to the nearest whole pound. This value does not include VAT.

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There are two Financial types that can be recorded:

• Total negotiated price (TNP): this is the total price agreed for delivery of all the training and assessment for the apprenticeship programme. This value is the cost to you as the provider for the delivery of the apprenticeship programme and must include both the employer co-payment contribution and the government co-payment funding.

• Payment record (PMR): the individual payment records of the cash contributions from the employer to the training provider or assessment provider. Cash payments reimbursed to the employer are also recorded as payment records.

Codes available for each financial type:

TNP

• TNP code 1 Total negotiated training cost

• TNP code 2 Total negotiated assessment cost

PMR

• Code 1 Payment record of cash contribution made by employer to provider for training costs

• Code 2 Payment record of cash contribution made by employer to provider for assessment costs

• Code 3 Employer payment for training or assessment reimbursed by provider. This must not be used to record transfer of incentive payments to the employer.

At the start of the apprenticeship, you should record two TNP records: one for the total negotiated price for the training (TNP1) and one for the total negotiated price of the assessment (TNP2) as agreed between the employer and provider. Set the Apprenticeship financial record date on these records to the start date of the apprenticeship programme.

You must record an agreed training price (TNP1) at the start of the programme.

If the assessment price (TNP2) has not been agreed at the start of the programme, then this can be recorded at a later point: an estimated cost should not be recorded. This price must be agreed and recorded on the ILR before any assessment payments (PMR2) are recorded.
The Apprenticeship financial amount recorded against TNP1 and TNP2 must equal the total cost to the provider for delivery of the entire apprenticeship programme, this includes:

• The employer co-payment contribution, and

• The government co-payment funding.

The values recorded in the TNP records must be the total cost for the delivery of the whole apprenticeship programme and not just the value for the current year.

If at any point during the apprenticeship programme a new price for training, assessment, or both is negotiated, then this must be recorded in a new price record (AFinType = TNP). You must record the date that the new price applies from in the AFinDate field.

You must agree a payment schedule with the employer for the required cash contributions.

When you have received a cash payment, you must record this on the ILR using a separate payment (PMR) record for each payment that the employer makes to you. This must include the date you received payment from the employer and the amount of the payment (in pounds, to the nearest whole pound).

The payment records are used to calculate and trigger government funding. Each time a payment is recorded on the ILR, a Core Government Contribution (CGC) payment is triggered until either 2/3 of the agreed total price has been paid or the core government contribution cap has been reached.

The amount entered on the payment records must not include the VAT element where this exists.

The payment records must only be used to record payments actually received from the employer. They should not be used to record what the employer is expected to pay, nor should it record the ESFA’s contribution.

Cash contribution payments made by the employer must continue to be recorded on the ILR for the duration of the apprenticeship.

You must ensure that the Apprenticeship Financial Record dataset is accurate because this is used in the calculation and payment of government co-payment funding. In particular, please ensure that the financial amounts and dates recorded are correct as these will impact on funding.

The Apprenticeship Financial Record dataset must contain all payment records for the full duration of the programme. Where a programme is continuing across academic years, all Financial Record data from the previous year must be migrated into the current ILR and continue to be returned until the programme ends.

Worked Example of a Funding model 81 Financial Record:

• An apprentice starts a Software Developer apprenticeship on 1 September 2016 with a planned end date of 30 September 2018. This apprenticeship standard has a funding cap of band 6.

• A price for training of £12,000 is agreed prior to the start of the programme, this value is the total cost to the provider and indicates an employer co-payment contribution of £4,000 and government co-payment funding of £8,000.

• A price for assessment of £6,000 is also agreed prior to the start of the programme, this indicates an employer co-payment contribution of £2,000 and government co-payment contribution of £4,000.

• The lead provider records two financial records in the ILR; one with Financial type TNP code 1 and one with Financial type TNP code 2. Both of these records have a Financial record date of the start date of the apprenticeship programme (1st September 2016). Refer to guidance below.

• The employer makes cash contribution payments to the lead provider according to an agreed schedule. The lead provider receives a payment of £2,000 from the employer on 2 September 2016, as agreed, and records this in the Financial Record entity using Financial type PMR code 1.

Funding model 81 standards: recording eligibility for employer incentives

The following guidance describes what you need to record on the ILR in order to trigger the apprenticeship standard incentive payments. Further details about these incentives can be found in the Funding Rules.

The 16-18 apprentice incentive, which is earned for 16 to 18 year old apprentices, is triggered based on the apprentice’s age at the start of their apprenticeship standard programme. You do not need to record additional data on the ILR to trigger this incentive, the apprentice’s age at the start of the programme is automatically calculated. This incentive is paid in two parts: 50% after 90 days on the programme and 50% after 12 months on the programme.

The small employer incentive, which is earned for employers with fewer than 50 employees, is triggered based on the apprentice’s employment status data. Refer to guidance for recording employment status for apprenticeships for details about how to identify an employer as a small employer on the ILR. This incentive is paid in full after 90 days on the programme.

The completion incentive, which is earned when an apprentice successfully completes their end point assessment and achieves the apprenticeship standard, is triggered based on data in the following Learning Delivery fields: Completion status, Outcome and Achievement date. This incentive is paid in full once the programme has been recorded on the ILR as completed (Completion status code 2) and achieved (Outcome code 1), the Achievement date is used as the trigger date for the incentive.

If you receive any incentive payments, these must not be recorded in the Apprenticeship Financial Record.

Funding model 81 standards: recording achievements

When the apprenticeship standard has been achieved, the following should be recorded on the ILR:

• All learning aims within the programme must be closed with Learning actual end dates set to the date for the last learning activity of the aim(s).

• The programme aim should be closed with the Learning actual end date recorded as the last learning activity for the entire programme (including the end point assessment).

  The Outcome on the programme aim should be recorded as code 1 ‘Achieved’ and the Achievement date recorded on the programme aim as the date on which the apprentice met the criteria for achievement funding as set out in the funding rules.

All open and closed learning aims that are part of the standard should be returned on the ILR until the programme is completed.

Where the standard is completed and achieved before 31 July 2020, this should be recorded in the 2019 to 2020 ILR data returns.

Funding model 81 standards: recording changes

Refer to the Funding Rules for the rules regarding changes in circumstances, such as agreed breaks in learning, withdrawals, transfers from one provider to another, or changes in employment.

Following a change in circumstances, you may need to reimburse the employer for learning that has already been paid for but that has not yet been delivered. In this circumstance you should record a payment record using code PMR3, the amount of this record should reflect the payment returned to the employer. This will enable the ESFA to recover any overpayment of the core government contribution (CGC) that has been made.

Apprentice changes employer during the apprenticeship

A new employment status record is added for the apprentice with the Employer identifier of the new employer.

No changes are made to the programme aim and component learning aim records for the apprentice.

New TNP records with code 1 and/or 2 should be recorded when the total training and/or assessment price for delivery of the whole apprenticeship programme has changed following re-negotiation with the new employer. The TNP records must continue to record the total training and assessment costs for the entire standard and must not be changed to reflect the proportion of the cost that remains to be paid by the new employer.

Changes in negotiated price during the programme: funding model 81 (TNP)

If a new price for training and/or assessment is negotiated at any point during the apprenticeship programme, then this must be recorded in a new price record (AFinType = TNP). You must record the date that the new price applies from in the AFinDate field.

Example:

An apprentice started an apprenticeship standard programme on 1 April 2017. A training price of £10,000 was agreed prior to the start of the programme. An end point assessment price of £2,000 is later agreed on 1 August 2017.

Recorded as:

• TNP 1 01/04/2017 10000

• TNP 2 01/08/2017 2000

The assessment price is later re-negotiated (for example to include additional costs or further assessment). A new end point assessment price of £3,000 is agreed to apply from 1 May 2018.

The financial details for the programme are updated to reflect this.

• TNP 1 01/04/2017 13000

• TNP 2 01/08/2017 2000

• TNP 2 01/05/2018 3000

Where a price needs to change due to a data entry error, this must be amended on the original record before the R14 hard close deadline.

Withdrawal from the apprenticeship programme

The programme aim and component learning aims should be closed.

Any payment adjustments needed should be recorded using PMR records.

Transfers to a different apprenticeship with the same provider

If an apprentice changes to a different framework or standard after 1 May 2017, and the new apprenticeship is funded, then the new apprenticeship will be recorded on Funding model 36.

You must:

• Close the programme aim and all component learning aims. Refer to the closing aims guidance recording a learner transfer to a new learning aim within the same provider .

• Make any payment adjustments required (e.g. reimbursements) and update the Financial details to include the relevant PMR records.

Create a new programme and learning aims as required in accordance with the guidance for recording apprenticeships on Funding model 36.

Transfers to the same apprenticeship with a different provider

If the apprentice transfers to a new provider but continues with the same apprenticeship standard programme, then the original provider must close the programme aim and all component learning aims. Refer to scenario 2 when a learner transfers to a different provider. The original provider must also make any payment adjustments required and update the Financial details to include the relevant records (e.g. PMR3 reimbursements to the employer).

The new provider must record a new programme aim and aim component aims that the apprentice is continuing with.

The aims must be recorded with the following:

• Learning start date: record the date on which the apprentice restarts the aim.

• Original learning start date: record the date on which the apprentice originally started the programme with the previous provider, if known.

• Learning planned end date: the new planned end date for the aim.

• Funding model must be 81.

• Funding adjustment for prior learning: the proportion of the learning aim still to be delivered (component aims only).

• Restart indicator (Learning Delivery FAM) must use code RES1.

• Eligibility for enhanced apprenticeship funding (Learning Delivery FAM) must use an applicable EEF code if required.

The price recorded by the new provider must take into account the prior learning delivered by the previous provider for this apprenticeship programme.

Transfers to a different apprenticeship with a different provider

The original provider closes the ILR records for the apprentice and records any payment adjustments needed using PMR records.

The new provider creates new ILR records for the apprentice in accordance with the guidance for recording apprentices on Funding model 36.

The negotiated price for the apprenticeship at the new provider must take into account any relevant prior learning.

Apprentice takes an agreed break in learning

If the apprentice is taking an agreed break in learning and intends to return, for example for economic reasons, long term sickness, maternity leave or religious trips, then the programme and component aims must be closed. Refer to guidance for recording an agreed break in learning .

When the apprentice returns, a new programme aim and new component learning aim(s) are recorded. The original learning aims on the ILR must not be reopened.

Record the price details as required using AFinType = TNP and the applicable codes. The price recorded on the new programme aim should be the same as the price prior to the break in learning unless you and the employer have negotiated a new price for the programme.

Any new employer payments that are received following the break in learning must be recorded against the new programme aim.

You must continue to return all aims and financial records for the apprenticeship, including the records prior to the break in learning, until the apprenticeship is completed, or the apprentice withdraws from the programme. The sum of all PMR records across both programme aims are used to calculate CGC payments.

Example

An apprentice starts on an apprenticeship standard on 15 September 2016 then takes an agreed break in learning from 20 May 2017. On 8 August 2018 they return to their programme.

Programme aim 1

• Learning start date 15 Sep 2016

• Learning planned end date 30 Nov 2018

• Learning actual end date 20 May 2017

• Completion status 6

• Outcome 3

• Withdrawal reason Data not returned

Financial records

• TNP 1 15 Sep 2016 15,000

• TNP 2 15 Sep 2016 3,000

• PMR 1 1 Dec 2016 3,000

Programme aim 2

• Learning start date 8 Aug 2019

• Learning planned end date 15 Feb 2019

• Learning actual end date

• Completion status 1

• Restart indicator RES1

• Original learning start date 15 Sep 2016

Financial records

• TNP 1 8 Aug 2018 15,000

• TNP 2 8 Aug 2018 3,000

• PMR 1 1 Dec 2018 2,000

• PMR 2 1 Dec 2018 1,000

If an apprentice does not return from an agreed break in learning, then the learning aims must be updated to indicate that the apprentice has withdrawn. Refer to guidance for recording learner absence or withdrawal.

An apprentice on Funding model 81 who takes a break in learning may return to their apprenticeship on Funding model 81, or can transfer to a different apprenticeship framework or standard on Funding model 36 if it is in the apprentice’s best interests. (Refer to the apprenticeship funding rules).

If the apprentice transfers to a new programme on Funding model 36, then refer to the Funding model 36 data requirements below. The Funding model 81 apprenticeship aims will need to be updated to reflect that the apprentice has now withdrawn and transferred to a new programme. To do this, update the Completion status to code 3 and record Withdrawal reason code 40.