1. Welcome SFA AOSEC - South East Principals Event Michael Kilduff Skills Funding Agency

2. The vision from the new Government Three million apprenticeship starts over the 5 year lifetime of Parliament Continue to expect the FE sector to be more responsive to the needs of employers and the economy

3. Six factors that all colleges should address Demographics Budget and Spending Review The curriculum offer Apprenticeships Financial health Devolution

4. Estimated & projected 16-18 year olds (England)

5. July 8 Budget The Chancellor’s additional Budget All departments have been asked for in- year savings – and high level announcement made on 4 June Search for savings will continue into the Spending Review

6. Financial Health Outlook – in summary  SFA analysis shows that 29 out of 242 General FE colleges are rated as ‘Inadequate’ for financial health. In 2009/10, the figure was 15.  11 of the 29 were new cases from the review of financial statements for 2013/14.  2 of the 29 merged with other colleges in April following intervention  New measures of financial health may see increased numbers assessed as ‘Inadequate’ in 2015/16.  37 colleges have consistently been graded as ‘Outstanding’ over the last 4 years.

7. FE Commissioner “The gap between the very best colleges and the poorest performers was bigger than I thought…I was shocked to find that some colleges were making basic mistakes such as staff costs being way out for example.” David Collins at the AoC Conference November 2014

8. Localism Clear manifesto commitment to work with partners such as local authorities and LEPs Greater Manchester Combined Authority leading the way Allowing local partners to build ‘priorities and outcomes’ agreements with providers on adult skills Maximum simplification of funding

9. Simplification Recognition that there is more work to do on the SFA funding system Working with the AoC, the AELP, and partners to further simplify the adult funding system Longer term, a programme of wider funding reform will make the system more responsive, clear and simple

10. The future Rise to the challenge of an employer-led system Apprenticeships will be an increasingly important programme – everyone should play a part Make sure you meet the needs of all your local communities –LEPs and local authorities as well as stakeholders. Look hard at the lessons of the FE Commissioner interventions – benchmark your financial management and governance

11. Questions for Governing Bodies 1.What is the trend in your funding allocations over the last three years and what factors have affected this? 2.For young people, are you happy with the outcomes and progression for your students and how do these compare with others? 3.For adults, are you providing support for the right priority groups in the local community – and are you providing the right outcomes for employers and the economy? 4.How do you rate your corporation’s financial health – and have you looked at the lessons from David Collins’ reviews?

12. The view from the SFA The number one risk that the SFA will have to manage in the coming years is the deteriorating financial health of the sector that will be delivering the provision we fund. By focusing our work on apprenticeships, managing providers and employer engagement we can make sure that the SFA is in the best position to support the sector and to deal with increased calls on our intervention capacity.