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COSTING YOUR APPRENTICESHIP
Rebecca Rhodes, Senior Associate, UVAC
February 2017
Agenda Rules
• Staff Costs
• Non Staff Costs
• Evidence Requirements
Approach
Employer Providers
Pricing
Issues and Pitfalls
• Emerging Practical Queries
Q and A
Rules & Sanctions General Principles 1. You must only include eligible activities for funding
2. Funds from an employer’s digital account, government-employer co-investment must only be used for activity directly related to the apprenticeship.
3. These funds must only be used to pay for training and assessment, including end-point assessment, to attain an apprenticeship that is eligible for funding up to the limit of the funding band.
4. Any of the eligible costs can be bought in from a third party
5. Funds from an employer’s digital account or government co-investment must not be used to fund other services from a third party.
6. If the total price exceeds the maximum of the funding band, then the employer must pay in full the difference
7. ESFA will review and monitor whether the training you provide represents good value for money
8. There are no evidence requirements for your costing
Sanctions • Audit funding clawback
• Withdrawal of starts
• Funding band review
Eligible Costs 1. Off-the-job training or evidenced costs for employer-provider delivery.
2. Training of a licence to practise or non-mandatory qualification if there is a clear overlap between this training and the KSB behaviours needed for the apprenticeship
3. Registration, examination, certification costs for mandatory qualifications excluding any licence to practise
4. Planned on-programme assessment (progress reviews)
5. EPA costs including any costs associated with the completion certification.
6. Distance, online or blended learning
7. Materials (non-capital items) equipment or supplies necessary to enable a particular learning activity to happen that do not normally have a lifespan beyond the individual apprenticeship being funded.
8. Administration directly linked to the training and assessment including costs relating to the development of teaching materials, lesson planning, the processing of the ILR and quality assurance.
9. Funding to re-take mandatory qualifications or the end-point assessment, providing additional learning takes place.
Ineligible Costs 1. Enrolment, induction, prior assessment, initial diagnostic testing or similar
2. Travel costs for apprentices under any circumstances.
3. Apprentices’ wages.
4. Personal protective clothing and safety equipment required by the apprentice to carry out their day-to-day work.
5. Off-the-job training delivered only by distance learning ,
6. Any training, optional modules, educational trips or trips to professional events in excess of those required to achieve the apprenticeship framework or meet the knowledge, skills and behaviours of the apprenticeship standard. This includes training solely and specifically required for a licence to practise.
7. Registration and examination (including certification) costs associated with a licence to practice. This applies even where a licence is specified in the apprenticeship standard and assessment plan.
8. Registration and examination (including certification) costs for non-mandatory qualifications (qualifications that are not specifically listed in the standard).
Indelible Costs 8. End point assessment costs not included in the price agreed
9. English and maths up to level 2; this is funded separately
10. Repeating the same regulated qualification where the apprentice has previously achieved it unless it is a requirement of the apprenticeship or for any GCSE where the apprentice has not achieved grade C, or 4, or higher.
11. Re-sits for mandatory qualifications or the end-point assessment needed for the apprenticeship where no additional learning is required.
12. Capital purchases including lease agreements. Capital purchases are long-term assets which would have a lifespan beyond the apprenticeship being funded, such as land, buildings, machinery and ICT equipment.
13. Time spent by employees/managers supporting or mentoring apprentices, or the time of other employed staff arranging training support, except where this is directly linked to the training and assessment, including end-point assessment.
14. Specific services not related to the delivery and administration of the apprenticeship. This includes the recruitment and continuing professional development of staff involved in apprenticeships, company inductions, managing agents and those providing a brokerage service to an employer or provider.
15. You must not pay incentives or inducements or any other payment not authorised by us to the employer in relation to any part of the apprenticeship programme.
APPROACH
Broad Cost Structure Actual cost
Cost/price to deliver to your staff
Price to deliver to employers
COST SUBMITTED TO THE IFA
What it costs you
What is eligible
What you
charge
Costing Approach - per annum
• BLOCK 2
• BLOCK 3
• BLOCK 1
• BLOCK 4
Non-Staff Costs – Consumables/
(Programme) Academic Staff
Non- Academic Staff
Non-Staff Costs – Fixed
(Infrastructure)
General Principles – Reasonable & Relevant
Lesson Plan Development
Programme Administration
Teaching and Reviews
Administering Quality
Administering Data
Materials
IT systems, upgrades, corporate licences, equipment, staff CPD, marketing, employer engagement, events
COHORT DELIVERY
PROGRAMMESET UP
Induction, Initial Needs Assessment, professional body registration or membership
COHORT PREPARATION
Eligible Costs
Ineligible Costs
Registration examination certification for mandatory qualifications
Eligible Costs Apprentice Cohort Size
20Block 1 Costs - Academic staff
initial assessment
online form completed by apprentice, review and
establish prior learning and impact on delivery actual hours salary and on cost
teaching classroom delivery, lesson planning actual hours salary and on cost
teaching assignment marking and feedback
typical time taken 30 minutes marking, feedback 15 minutes, record
outcomes 15 mins salary and on costs
reviews tutor/ apprentice
prep time, 30 minutes feedback 30 minutes 1 hour duration record
outcomes 15 minutes
reviews tri-partite
prep 1 hour, duration 90 minutes, travel 2 hours , record outcomes 15
minutes, travel 100 miles
reviews data team / admin team 15 mins
Block 2 Costs - Non-Academic Staff any general factor used must relate to this apprenticeship, not to main undergraduate programme assumptions for full time students or placements
Business Development
eligibility checks, agreeing the commitment
statement, agreeing programme design
only costs where directly engaged in apprenticeship delivery or
administration are eligible
Apprenticeship
Administration
all underpinning administration and management
of the programme salary and on costs for time spent
Quality
internal processes, reviews, QAA or other activities
necessary for compliance salary and on costs for time spent
MI/ KPI monitoring /other
time in governance
Production of statistics and reporting for
programme salary and on costs for time spent
Data processing and MI HESA ILR return every month salary and on costs for time spent
Marketing run and analyse satisfaction surveys
only costs where directly engaged in apprenticeship delivery or
administration are eligible
Finance
income tracking, reconciliations, payment of
employer incentives, chasing contribution
only costs where directly engaged in apprenticeship delivery or
administration are eligible
Admissions enrolment costs of enrolment are not eligible
Admissions eligiblity salary and on costs for time spent
Student Services use of relevant range of services must be proportiomate to apprentices likely usage (less than FT student)
External Examiner part of quality
Block 3 Costs - Non Staff Costs - Programme any general factor used must relate to this apprenticeship, not to main undergraduate programme assumptions for full time students or placements
Materials Development unclear if this extends to online material development
Certification & Registration paid by employer or costs waived unless mandatory qualification
Materials only costs for materials used by and ending with each apprentice
IT Licences for online systems, software only where this is a per apprentice cost
Educational Trips + Extra
Curricular Activities
eligible only where this is necessary of the apprenticeship otherwise paid
by the employer and T and S costs for the apprentice are never eligible
EPA typical cost or known actual cost negotiated with EPAO
Hospitality apprenticeship T & S paid by employer or costs waived
Rooms, facilities only where related to the apprenticeship actual costs
Block 4 Costs - Non Staff Costs - Infrastructure any general factor used must relate to this apprenticeship, not to main undergraduate programme assumptions for full time students or placements
IT any factor must be based on the typical % time actually using these
Facilities only where related to the apprenticeship actual useage
Activity COST ASSUMPTIONS hours Per
Programme
hours Per
apprentice
FUNDING
ELIGIBILITY
Simple Costing TOTALS Year 1 Year 2 Year 3
TOTAL net Income £ £ £ £
Total NET Student Numbers 0 0 0 0
Costs
Staff Costs – Academic
Staff Costs – Non-Academic
Non Staff Costs
Other External Costs *
Income
Earnings
Employer Contribution
Incentives
TOTAL GROSS Income
Ineligible Costs
Ineligible Cost as a %
*e.g. EPA; Subcontractor costs
STAFFING COSTS
Staffing – Academic
• Staffing – Salary
– On costs
– Pay Increase
• Subcontractors
• Actual time– Spent delivering/administering the
apprenticeship
– Travel
• Typical task – Typical ( factor / flat fee) applied to
every apprenticeship and or apprentice e.g. processing the ILR
• Teaching staff
• Teaching support staff e.g. role play or simulation ‘volunteers’
• Hours (typical task)– Teaching
– Supporting practice/ placements
– Tri-partite reviews
– Tutorials
– Preparation for lesson/reviews
– Marking
– Write up
– Travel
– Governance
– Programme reviews & evaluation
– Placement assurance
– Preparation for EPA
Costing I – Academic Staff
Year 1 -Per Apprentice
Block 1 Costs - Academic staff
1. classroom/face to face delivery 2. 1-1 Student
Reviews 3. Tripartite
Reviews 4. Project
Supervision5. Assessment
Preparation 6. Other Teaching
(specify) Total Cost per
Year
FunctionStaff Member
/ Role
cost per hour
Module 1 Module 2 Module
3 Module
4 Modul
e 5 Number Hours Number Hours Number Hours Number Hours Number Hours
hours hours hours hours hours
£0.00 0 0 0 0 0
0
0
0
0
0
0
0
0
0
0 £0.00
£0.00 0 0 0 0 0 0 0 0 0 £0.00
£0.00 0 0 0 0 0 0 0 0 0 £0.00
£0.00 0 0 0 0 0 0 0 0 0 £0.00
£0.00 0 0 0 0 0 0 0 0 0 £0.00
£0.00 0 0 0 0 0 0 0 0 0 £0.00
£0.00 0 0 0 0 0 0 0 0 0 £0.00
£0.00 0 0 0 0 0 0 0 0 0 £0.00
£0.00 0 0 0 0 0 0 0 0 0 £0.00
SUBCONTRACTOR COSTS TOTAL
SUBTOTAL Hours & Costs 0 0 0 0 0 0 0 0 0 0 £0.00
TOTAL COSTS £0.00
NON-ACADEMIC STAFFING COSTS
Staffing – Non Academic
Partnerships
Quality
Management Information
Marketing
Employer Relationships
Faculty Administration
Programme Administration
Governance
Non Academic Staffing – Chargeable TasksEligibility
•Checks
•Assessments but not the INA
Documentation
•Commitment Statement
•Contracting
•Record Management
•QA checks
Support
•Handling Queries
•Student Support
•Complaints
Quality
•QAA preparation
•Lesson Observation
•File and Evidence reviews
•Satisfaction Surveys
Data
•ILR Processing
•Student Records processing
•MI Production
Finance
•Incentive Payments
•Reconciliation
•Invoicing
Governance
•KPI Monitoring
•Module Reviews
•Programme Review
Subcontractor Management
•Administration
•Reviews
•Quality checks
Costing II Non – Academic Staff
Year 1Cost PER
APPRENTICE Eligible
FunctionRole
/person Tasks
Annual Salary & on-costs
Total Annual Hours
Working
TOTAL Annual Hours on
apprenticeship activity
Hours PER APPRENTICE
£
Programme
Administration £ Y/N
Apprenticeship Administration
Y/N
Quality Y/N
MI and reporting Y/N
Data processing Y/N
MarketingY/N
SUBCONTRACTORSY/N
Cohort Size Year 1 Year 2 Year 3 Year 4
30 29 26 26
‘Type’1. Same task same time = actual hours for the task = flat fee 2. Variable task for each cohort time = actual hours estimate X size of cohort
NON-STAFFING COSTS
Non-Staffing Costs
PROGRAMME ‘Consumables’ Per Apprentice
• Materials - copying
• First day - badges etc
• Certification & Registration
• IT Licences
• Educational Trips
• Extra Curricular Activities
INFRASTRUCTURE ‘Fixed’ Costs Per Apprentice
• Materials Development
• Rooms
• Overheads
Costing III - Non Staff Costs
NON STAFF COSTS - PROGRAMME TOTALS Year 1 Year 2 Year 3
Department Cost / Description Eligible £ £ £ £
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N- - -
Cohort Size Year 1 Year 2 Year 3 Year 4
30 29 26 26
Costing III - Non Staff Costs
NON STAFF COSTS - INFRASTRUCTURE TOTALS Year 1 Year 2 Year 3
Department Cost / Description Eligible £ £ £ £
IT/IS Y/N
Building & Facilities Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Cohort Size Year 1 Year 2 Year 3 Year 4
30 29 26 26
COSTING & PRICING
Considerations – Costs
• Apprenticeship costs – No ‘standard factors’
applied from HE undergraduate provision
– Proportionate, Relevant, Evidenced to hours spent on campus
• Tripartite reviews– Realistic travel costs
– Are not placement visits
• Early leavers %– particularly for long
programmes
• Levy / non levy %
• Differences in behaviour = usage– Library
– Student services
• EPA
• Subcontracting
Considerations – Revenue
Factors affecting annual revenue calcs:
• % 16-18 & <24 EHCP
• EPA – timing of your payments
• Subcontractors – timing of your payments
• Charges over the Cap– Timing of your payment
Factors affecting total revenue calcs:
• Early leavers %– particularly for longer
programmes
• Ineligible costs
Revenue Standard
Duration Start Date End Date
TOTALS Year 1 Year 2 Year 3 TOTALS
Student Numbers (Net after retention)
0 0 0 0
Retention Rate % % % %
PER STUDENT Revenue
PER STUDENT NET Income £
Price £
Employer contribution £
HEFCE Top Up £
Incentive Payment £
Other Income £
Considerations – Price WILL I BE ASKED TO JUSTIFY MY PRICE ?
• TRAILBLAZER COSTINGS
• Cost
• Eligibility
• Break Even vs Cohort Size
• Market
• Competition
• Portfolio Balance
• Duration
• Reasonable Profit
Typical Issues & Pitfalls
• Using existing ‘factors’ that relate to undergrad assumptions
• Not reflecting the time (or not) on campus /using facilities
• Including set up costs or other ineligible costs per apprentice delivery costs
• Including other non-delivery elements
• Excessive theoretical costs (e.g.travel) applied to every apprentice
• Not reflecting the changing mix of activity each year
COSTING FOR DELIVERY AS AN EMPLOYER PROVIDER
In Summary Rules
• Employer-providers must evidence the actual costs of delivery of apprenticeship training and on-programme assessment
• are allowed to claim salaries plus ‘on-costs’ of employees directly involved in the administration of apprenticeship training (incl ‘travel and subsistence costs if these directly relate to apprenticeship delivery)
• are allowed to claim for accommodation and facilities where the employer can demonstrate that this has been used for training and/or end-point assessment for the apprentice during the time claimed
• Evidence
– Payroll
– Training / curriculum schedules
– Attendees
– Rationale based on proportions
In Summary Pitfalls
• Costing in the same staff time without checking :
– The total hours allocated are either = or < their actual hours worked & total salary
– A true reflection of the actual time spent on apprenticeships to staff
– Whilst they were in post
• ‘Factors’ not based on the proportional time spent
• Set up costs
EMERGING QUERIES
Eligibility Traffic Light Test
Is this cost for capital purchases?
Is this a one off cost for the whole
apprenticeship programme?
Is this a cost that we incur BEFORE delivery starts ?
Is this is cost that we don’t need for EVERY individual
apprentice?
Is this a cost that is not REQUIRED for content delivery
/teaching?
Is this cost something that we
can use for successive cohorts?
Current Queries …..
• CAN I USE THE ADDITIONAL FUNDS THAT HAVE CHARGED THE EMPLOYER OVER THE CAP TO PAY FOR NON-ELIGIBLE ACTIVITY ?
P79. Funds from an employer’s digital account, government-employer co-investment or the additional transitional funds paid for 16 to 18 year olds on frameworks must only be used for activity directly related to the apprenticeship. These funds must only be used to pay for training and assessment, including end-point assessment, to attain an apprenticeship that is eligible for funding up to the limit of the funding band.
• CAN I USE FUNDS TO BUY EVERY APPRENTICE AN IPAD ?
• DOES ‘ELIGIBLE DEVELOPMENT OF TEACHING MATERIALS INCLUDE THE COST OF DEVELOPING ONLINE LEARNING ?
Q AND A
