Minimum Contract Level Partnership Planning Cycles November 2011 Barry Langfield, LSIS Partnership Adviser

Our Objectives To undertake a review of the key planning cycles: MCL timetable 2010/11 – planning arrangements Funding Allocations planning cycle Provider Return - planning arrangements Generic annual planning cycle – key responsibilities

MCL timetable 2010/11 – planning arrangements DATEACTION November 2010 Minimum Contract Level announced Providers enter into discussions on alternative arrangements Skills Funding Agency Account Teams write to those providers affected by the Minimum Contract Level December 2010 Providers begin to enter into new delivery arrangements if this is their preferred route Providers can notify the Agency at any point between December and the end of March of their final and formal course of action January 2011 Providers affected by the Minimum Contract Level give an initial indication to the Agency of their planned course of action: new delivery arrangement being formed (subcontract, consortia, merger/acquisition, new legal entity) run-down contract March 2011 Providers affected by the Minimum Contract Level to give a final and formal notification to the Agency of their arrangements. May 2011 Allocations to lead providers adjusted to take account of new delivery arrangements that have been formed June 2011 Contracts and funding agreements issued to direct contractors July 2011 Learners ILR data migrated to lead providers; contract novations completed. Discussion point – If you are subject to MCL are you ready to manage this process?

Funding Allocations Planning Cycle DATEACTION December Skills Funding Agency discuss Minimum Levels of Performance. Skills Funding Agency holds discussions with colleges and training organisations in scope for rebasing their provision based on the previous years and quarter performance. December to February Skills Funding Agency holds discussions with colleges and training organisations on planning and funding for the following year. Skills Funding Agency shares proposed levels of funding for following year, with discussion on mix of provision, learner numbers and other planning/funding assumptions. Skills Funding Agency moderates draft allocations/maximum contract values at regional and divisional level, including further discussions with colleges and training organisations where necessary. March Skills Funding Agency moderates draft allocations/maximum contract values at national level, including further discussions with colleges and training organisations where necessary. Issue final allocations/maximum contract values. April-May Agree schedules and issue funding agreements/contracts. Discussion point – You will need to manage the Funding Allocation and your MCL arrangements at the same time. How are you going to manage the issues?

Generic annual planning cycle Lead ProviderSub-contractor September  Review previous years retention, achievement and success with sub-contractors  Set out minimum standards for processes and procedures for monitoring sub-contractor performance by using either sampling during a quality audit and/or formal reports from the sub- contractor.  Ensure consistency across provision of target setting  Undertake Quality Audit of sub-contractors  Review previous years retention, achievement and success and report to lead provider  Start production of Self-Assessment Report and Quality Improvement Plan October  Complete SAR report and work with sub- contractors to complete improvement plan  Report on student induction  Manage student survey  Receive Self-Assessment Report from each subcontractor including Quality Improvement Plan  Report retention, achievement and success against targets  Agree with sub-contractors indicative target numbers/courses and key performance indicators for next year  Review of target setting lead provider  Begin to discuss quarterly in-year funding adjustment or redistribution with lead provider

Generic annual planning cycle November  Begin work on overarching SAR and Report and Quality Improvement Plan  Audit Assessments/IV plans and report  Report results of observations  Lead provider to meet with the Skills Funding Agency to discuss indicative allocation for following year (likely to be delayed in 2011)  Quarterly performance review to discuss quarterly in-year funding adjustment with Skills Funding Agency (& into December)  Begin to consider strategic planning intelligence / LMI and discussions with local authorities, schools and other stakeholders (& March)  Check Assessment/IV plans/standardisation process for each course and that all learners are on target and report to lead provider  Report retention, achievement and success to lead provider December  Upload SAR and QIP  Confirm with subcontractors that current year’s External Verification arrangements are in place  Review of MIS  Review Minimum Level of Performance (to end of Feb)  Manage surveys – learner, employer  Report retention, achievement and success against targets  Skills Funding Agency agrees Indicative funding with lead provider  Review attendance data with lead provider  Report review of target setting to lead provider  Lead provider agrees Indicative funding with sub- contractor Discussion point – How are you planning delivery, do you have all the key procedures and processes in place?

Enterprising Opportunities CIC Grant Langfield – Partnership and Quality Manager IntroductionEnterprising Opportunities CIC MCL Journey Contacted the sector Managed to agree partnership with 4 providers £324k to £1.7M What has worked well Survived MCL Currently over performing Diverse SSAs Partners engaged Challenges Geography Differing agendas MIS Consistency around quality Managing questions rather than Skills Funding Agency Partnership planning cycles

Provider Returns - planning arrangements Return Number Sub- contractor Return Date Lead Provider Return DateBudgetMain Data Use Adult Budget16-18 App.ESFASL16-18 LR R0102/09/201106/09/2011x x SFA monthly adult budget and ESF payments R0102/09/201106/09/2011 x SFA monthly apprenticeship payments R0204/10/201106/10/2011x x SFA monthly adult budget and ESF payments R0204/10/201106/10/2011 x SFA monthly apprenticeship payments R0302/11/201104/11/2011x x SFA monthly adult budget and ESF payments and reconciliation R0302/11/201104/11/2011 x SFA monthly apprenticeship payments R0402/12/201106/12/2011x x SFA monthly adult budget and ESF payments and operational MI R0402/12/201106/12/2011 x SFA monthly apprenticeship payments and operational MI R0402/12/201106/12/2011 xYPLA data for 2012/13 allocations R0402/12/201106/12/2011 x SFA ASL data R0504/01/201206/01/2012x x SFA monthly adult budget and ESF payments R0504/01/201206/01/2012 x SFA monthly apprenticeship payments Discussion point – Are provider returns causing any concerns, if so how are you managing this?

Any questions?

Support for Collaborative Contracting Case Studies Toolkits: o Managing Risk o Partnership Planning and Working o Shared Leadership and Governance o Shared Services o Sub-contracting o Quality Management o Sub-contracting (Nov 2011) o Annual planning and operations cycle (Nov 2011) Resources

Wrapping Up We’ll send you evaluation form and a link to the recording Slides from the seminar will be on the Excellence Gateway You may be be interested in further support from the LSIS MCL Team. A range of resources are available on the Excellence Gateway site Further web seminar events are planned, you can find details and registration on events.lsis.org.uk/Pages/Event/Stage1/Events.aspxevents.lsis.org.uk/Pages/Event/Stage1/Events.aspx If you would like to talk to an MCL Partnership Adviser please send an to