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Provider support manual:

Recording apprenticeship financial data

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Funding model 36: recording financial data

You must return financial details about the programme in the Apprenticeship Financial Record dataset. This information is used to calculate funding for the apprentice.

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

You must ensure that data in the Apprenticeship Financial Record dataset is accurate and complete. In particular, please ensure that the financial amounts and dates recorded are correct as these will impact on funding.

The Apprenticeship Financial Record dataset contains the following four fields.

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

  • TNP identifies negotiated price details

  • PMR identifies cash payment records

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

3. 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.

4. 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.

There are two financial types that can be recorded:

  • Total negotiated price (TNP): this is the total price agreed between the employer and provider as the cost to the provider for the delivery of the apprenticeship programme.

  • Payment record (PMR): this is used to record co-investment contributions from the employer to the training provider or (for standards only) for the end point assessment organisation. Co-investment contributions 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 end point assessment cost – apprenticeship standards only

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 – apprenticeship standards only

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

At the start of the apprenticeship programme, you must record the price agreed between you and the employer. For apprenticeship standards, this should be recorded using two TNP records: one for the negotiated price for training (TNP1 or 3) and one for the negotiated price for the end point assessment (TNP2 or TNP4) as agreed between you and the employer. For apprenticeship frameworks, you only need to record the negotiated price for training (TNP1 or 3).

The assessment price (TNP2 or 4) must not be recorded until the end point assessment organisation has been identified. If the assessment price and end point assessment organisation have not been agreed at the start of the programme, then this can be recorded on the ILR at a later point; an estimated assessment cost should not be recorded.

The assessment price and organisation must be recorded on the ILR before any assessment co-investment payments (PMR2) can be recorded.

After a residual price (TNP3 or 4) has been recorded for a programme, any subsequent price records for that programme must also be residual prices. You must not record a new total price (TNP1 or 2) after recording a residual price for the same programme.

The financial record date for the initial record(s) must be the start date of the apprenticeship programme aim.

The total of the financial amount(s) recorded on the apprenticeship programme aim for the negotiated price (TNP) records must equal the total cost to deliver the apprenticeship programme.

Financial amounts recorded on the ILR do not include the following:

  • Value added tax (VAT)

  • Additional payments which may be payable to you or to the employer

  • Costs of learning support, or

  • Costs of delivering English and/or maths up to level 2.

There are some scenarios, following a change in circumstances, in which you must record the total price for the remaining amount of training and/or assessment to be delivered.

If the employer is making co-funding contributions, you must record these on the ILR when you receive them using a payment (PMR) record. You must record a separate payment record for each payment that the employer makes to you. The record must include the date you received the payment from the employer and the amount of the payment.

Payment records must only be used to record co-investment payments actually received from the employer.

If you are a provider delivering an apprenticeship to your own employees, then you do not need to record co-investment payments on the ILR. In this circumstance, you must record code LDM356 ‘Apprenticeship being delivered to own employees’ in the Learning Delivery Funding and Monitoring fields on the apprenticeship programme aim.

All Financial amounts recorded on the ILR must be recorded in pounds, to the nearest whole pound, and must not include the VAT element where this exists.

Employers are required to make co-investment cash contributions in the following circumstances:

  • The employer is not on the apprenticeship service and is funded through a contract for services with the ESFA, a non-levy paying employer and the apprentice is funded through co-investment

  • The employer is a levy paying employer who has spent all of their digital account funds and so the apprenticeship is being fully or partially funded through co-investment

  • The negotiated price for the apprenticeship exceeds the funding band, the employer is responsible for the price that is over the funding band.

Example

An apprentice starts a Software Developer apprenticeship standard programme on 1 August 2020 with a planned end date of 1 November 2021.

A price for training of £13,000 is agreed prior to the start of the programme, this value is the total cost to the provider for the entire 15 months of the programme.

A price for the end point assessment of £3,250 is also agreed prior to the start of the programme.

The lead provider records two financial records on the ILR: one with code TNP1 and one with code TNP2. Both of these records have a Financial record date of the start date of the apprenticeship programme (1 August 2020).

Recorded as:

  • TNP 1 01/08/2020 13000

  • TNP 2 01/08/2020 3250

Refer to the Apprenticeship technical funding guidance for starts from May 2017 for details about how funding is calculated for the programme.

The way total negotiated price (TNP 1) is calculated is changing from 1 August 2022, and will be calculated as follows:

Funding band max - RPL savings - any other employer discount (e.g. large cohort)

Anything over and above the funding band is dealt with off-line between the provider and employer; the DFE does not need to know about this amount or have it recorded in the ILR or apprenticeship service. The provider also does not need to record that this money was collected from the employer

Further information regarding these changes as well as rules on apprenticeship funding and employer payments can be found in the Apprenticeship funding rules for 22/23.

Refer to the Apprenticeship technical funding guidance for starts from May 2017 for details about how funding is calculated for the programme.