Funding Models & Guidance

1. Funding Models & Guidance Championing Young People’s Learning

2. Questions on Funding Q Is the current YPLA funding methodology fit for Independent Specialist Providers? Q How are General FE Colleges funded and paid under the methodology? Q How do Learners “earn funding” under the current methodology? Q Relationship between Programme funding and Additional Learning Support (ALS) Championing Young People’s Learning

3. Funding Formula The 2010/11 funding formula is applied to each learning aim taken by a learner: Championing Young People’s Learning

4. 16-18 Model Allocations are paid on a monthly profile – both programme funding and ALS Incentive is strong on participation and success Common 16-18 funding system for schools and colleges Current learner number drive future funding allocations Contract providers (charities/private training organisations) are subject to a final reconciliation with underperformance below agreed tolerance levels being recovered from the following year allocation payments Championing Young People’s Learning

5. GLH – as defined in Frequently Asked Question paper GLH are defined all times when a member of staff is present to give specific guidance towards the qualification or module (learning aim) being studied on a programme. GLH may include tutorials, learning workshops and supervised study. It also includes time spent by staff assessing a learner's achievements, for example in Foundation Learning. It does not include time spent by staff in the day-to-day marking of assignments or homework where the learner is not present. It does not include hours where supervision or assistance is of a general nature and is not specific to the study of the learners”. Championing Young People’s Learning

6. SLN SLN (Standard Learner Number) is a measure of the volume of activity associated with a qualification, learning aim, learner, contract, allocation, or any other set of training or education. Whilst SLN gives a robust measure of volume of learning, the relative cost of that learning must also be taken into account by the funding formula. The Provider Factor (and component Provider Factor Weightings) is the measure that reflects the relative cost of provision. The SLN Values of individual learning aims will either be: Listed i.e. a fixed rate; or Unlisted i.e. a variable rate dependant on the number of glh delivered. Championing Young People’s Learning

7. Annual SLN Annual SLN is the measure used directly in the funding calculations for the purposes of calculating actuals at learning aim level for 16-18 funding model (and also in Adult Learner Responsive Models). Annual SLN is derived from the SLN Value by application of the SLN section of the funding calculations, which then distributes the SLN Value across the funding years. An annual SLN Cap at 1.75 (2010/11) is applied when calculating the SLN value: Championing Young People’s Learning

8. Example of SLN values (1) A learner starts a 1 year AS level on the 10th January 2010 and finishes on the 15th December 2010. How much SLN is paid in each year? On the LAD, find the SLN Value - this can be found on the tab for each relevant funding model and year in the LAD (here 2009/10 and 2010/11). For this course the SLN Value = 150 GLH. 2. To calculate the SLN Value for a qualification: Championing Young People’s Learning

9. Example SLN values (2) For each qualification: 3. Does the programme cross a funding year? Yes – then split the programme by funding year so: For 2009/10: 10th Jan – 31st July For 2010/11: 1st Aug – 18th Dec 4. Then count the days in each funding year: Funding Year: 1st Aug – 31st July Championing Young People’s Learning

10. Example SLN values (3) Championing Young People’s Learning

11. Example SLN values (4) 6. How much SLN is paid in each year? In 2009/10 = 0.197 In 2010/11 = 0.136 If the learner had taken 3 AS levels in the 1 year instead of one, then: All AS Levels have the same SLN glh on the LAD – 150 Therefore the SLN paid each year is multiplied by 3: This example assumes the dates of each AS level are the same. Championing Young People’s Learning

12. Start criteria for learners Annual SLN will be counted when a learner is deemed to have started. A learner is deemed to have started a learning aim once they have remained on that learning aim for the period of time defined in the table below. For learning aims that span more than one academic year, starts are determined separately for each year, in line with the approach of calculating an Annual SLN value separately for each year. Championing Young People’s Learning

13. Provider Factor The Provider Factor includes the following drivers of relative cost: Programme Weighting Factor (PWF) Disadvantage Uplift Area Costs Uplift Success Factor Short Programme Modifier Care Standards (long term residential colleges have an additional uplift) Championing Young People’s Learning

14. ALS Guidance 2010-11 Championing Young People’s Learning

15. ALS Allocations 2010-11 The learner-responsive ALS allocation system for 2010/11 (similar to 2009-10) is as follows: Championing Young People’s Learning

16. Guidance on ALS Sets out the Funding Principles and Expected Uses of ALS Detailed guidance and costing information is available to providers on completing the ALS costs forms Recording activity Calculating cash values Thresholds Compliance evidence Advice on initial assessment Championing Young People’s Learning

17. YPLA Guidance ‘Spirit & Intention’ “ALS should only be recorded for the additional costs incurred in delivering provision to learners with identified wholly and exclusively additional individual support Needs”. ALS funding should not be recorded for any general running costs incurred by a college or provider Most of the guidance document written to explain this and this includes some examples of these principles. Championing Young People’s Learning

18. Detailed ALS Advice Types of ALS provided to learners includes: Additional teaching – either reduced class sizes or personal support in class Other specialist staffing Physiotherapy / speech therapist – after assessment by suitable person and how the support is identified to assisting learner in meeting their learning aims Assessment and review, pre-entry, on entry, on programme and on exit Personal counselling to support learner in achieving learning goals Transport between sites and off-site for mobility impairment Administration directly linked to individual learners that is in excess of usual requirements Championing Young People’s Learning

19. Specialist equipment - ALS Funding Q College wishes to purchase an expensive piece of equipment to support a learner with significant additional learning needs. The learner is likely to take 2 years to complete their initial programme and college hope the learner will then progress onto further programmes. A The college can claim a depreciation charge for equipment. It should be calculated as follows (see paragraphs 41-42): Divide the actual cost of the equipment by the estimated years of useful life. Only the appropriate element of the depreciation for equipment used by the learner for the time it is used is eligible for ALS funding. Lease costs may be eligible but will need advice of college finance department for calculations (paragraph 43). Championing Young People’s Learning

20. Question on ALS & Funding Advice Does the YPLA ALS Guidance fit for Independent Specialist Provider? Average ALS for General FE is around 8% of allocation Specialist LLDD College funded under general methodology in 2010/11 ALS is more than double programme funding What % should ALS be for a Independent Specialist Provider? What is likely impact of funding cap on LLDD learners? Championing Young People’s Learning