Monitoring of Sub Contractors and Supply Chain Fees and Charges Policy

Posted by SCL Education Group on 08.11.19

Introduction (The Business Case)

The Education and Skills Funding Agency include in their Funding and Performance Management Rules 2019/20 a requirement that all providers must publish their supply-chain fees and charges and the actual end-of year supply-chain fees and charges.

This fees and charges information should only include ‘provision subcontracting’. 

The Funding and Performance Management Rules require that:

  • All subcontractors must register on the UK Register of Learning Providers (UKRLP) and hold a valid UKPRN to be able to receive funding through a subcontracting arrangement
  • There must be a legally binding contact with each subcontractor
  • SCL may only award contracts for delivering funded provision to legal entities. If the legal entity is a registered company, it must be recorded as ‘Active’ on the Companies House database
  • Approval from the Chief Executive of the Skills Funding Agency must be sought if any second level subcontracting is proposed. This is only approved in exceptional circumstances

SCL will carry out appropriate pre-contract and due diligence checks, along with determining the capacity and capability of any proposed subcontractor prior to the award of any subcontract.

SCL retains full accountability for contract delivery.

 

SCL’s Intent

SCL is committed to extending and diversifying the range and accessibility of courses it delivers to widen participation, deliver to niche markets, engage in new and emerging markets and meet the regional and local economic development agenda. It also enables engagement with learners who may not ordinarily consider attending formal learning environments. In order to achieve this, SCL has taken the strategic decision to subcontract part of its provision to partner organisations who can demonstrate high quality delivery and excellent success rates.

 SCL will ensure that:

  • The proposed delivery is in the best interests of learners and employers (where applicable)
  • The proposed provision fits with SCL’s mission, objectives and values
  • There is sufficient expertise within SCL to quality assure the provision
  • There is sufficient staff resource in support areas to administer the process
  • The Subcontractor is approved via our due diligence process
  • The Subcontractor agrees to work within the terms of our contract, and that a signed contract is in place

 SCL will provide eligibility checks and support with enrolment of learners and take full responsibility for registration of learners with awarding bodies and the delivery of English and math as required.

 SCL will provide an English and maths specialist in all sub-contracted provisions on a weekly basis allowing us to monitor the programme and the quality of the delivery on a weekly basis in addition to termly QMV’s

 SCL provides support and training opportunities to improve the quality of teaching and learning for learner programmes delivered by our delivery partners.

 Regular quality monitoring of the sub-contractor provision and subsequent action plans ensure that a high quality of teaching and learning is maintained by all sub-contractor’s.

 Funding is apportioned according to the proportion of provision and other services provided by the partner and SCL respectively.

 

Due Diligence

The first stage in the process of setting up a new arrangement between a sub-contractor/partner and SCL is Due Diligence. After an initial meeting, where the potential sub-contractor/partner is provided with a copy/link to this policy, the sub-contractor/partner will be asked to provide the documents stated in the due diligence letter (Attached).

A report is produced on the results of the due diligence process (Attached) and sent to the sub-contractor/partner, either with actions to address or an invitation to attend a further meeting to discuss the contract proposal.

The due diligence process identifies the support required and associated costs and management fees for delivery sub-contractor. The report will clarify how the management costs are reasonable and proportionate to the delivery of high-quality teaching and learning and how each cost contributes to the delivery of high-quality learning. The report highlights the reason for sub-contracting/partnering.

 

Contract

A draft contract will be written following a successful due diligence process. The draft contract will be seen and agreed by both parties and agreed by SLT. If the contract value with any one party exceeds £100,000, the contract will need to be agreed by SLT and SCL Corporation will be notified at their next scheduled meeting.  No learners will be enrolled until the contract has been signed by both parties.

The contract details the management costs, quality monitoring activities and costs and other supporting activities agreed between the parties. Payment terms, timing of payments and the process for invoicing is clearly included in the contract.

 

Initial Advice and Guidance

The sub-contractor is responsible for ensuring that all learners have been given the correct initial advice and guidance relating to their programme of study.

All sub-contractors are provided the SCL ‘Bursary guide & FAQ document’ at the start of the year to ensure learners can access funding to removed any barriers to learning. All tutors are made members of a customise Microsoft Team channel for Bursary. This allows direct access to support from the Bursary Team.

They must be satisfied that the learner is eligible for the course and that they are capable of completing the programme successfully.

Learners must also be informed of their link to SCL and the services that they are able to access from us in addition to any ESF requirements for match funded provision. The sub-contractor is required to display both the ESFA & European Funding posters in each classroom this is review reviewed at QMV visits.

All paperwork completed by learners is clearly branded with SCL content. All learners have access to the SCL Team Channels where the SCL digital learner handbook is available at any time. All learner also must complete the Induction week.

 

Initial Assessment

Learners must undergo an initial assessment which identifies any additional learning needs, English and Maths requirements and skills tracker relating to the skills, knowledge and behaviours required for the qualification using the assessment tool stated but SCL.

Assessments must be completed for every learner in a timely manner.

 

Eligibility

Sub-contractor must ensure that the eligibility of all learners has been checked against the current year’s Eligibility and Contribution Rules before they are enrolled on a programme of study.

SCL requires all learners to complete an SCL enrolment form. A member of SCL MIS team will check this information is correct, if any discrepancies or omissions are found the learner will not be enrolled onto the system and the sub-contractor will be asked to resolve the issue.

Should a learner be found to be ineligible the learner will be removed from funding and this could result in a financial penalty being imposed.

 

Enrolling Learners

The following documents are required by SCL to enrol learners onto their programme: 

  • Fully completed SCL Enrolment Form signed by the learner
  • Evidence of benefits or supporting evidence to validate claims for full funding
  • Fully completed commitment statements signed by the learner
  • Individual Learning Plan with evidence of the learner’s Skill Scan and any requirements for additional learning support signed by the learner
  • Proof of the start of learning –register evidence and recorded on the ILP
  • Fully completed bursary forms with supporting evidence, if applicable
  • Work Experience plan and location with risk assessments completed

The documents must be checked by the sub-contractor before being sent to SCL and fields such as the qualification reference number and delivery location postcodes must agree with those stated in the contract.

SCL checks the quality of all of these documents before the learner is enrolled onto the system and sub-contractor will be issued with any actions from the quality audit.

Learner eligibility is a checked by SCL staff and SCL hold the right to reject any learner or request further evidence of eligibility.

 

Health and Safety | Safeguarding & Prevent

All work experience and places of learning (other than distance learning programmes) for learners must have been assessed for Health and Safety before learners commence their programme of learning. Evidence of this must be submitted to SCL with the enrolment paperwork.

Any safeguarding concern must be reported following the process as set out by each organisation and following the government legislation of “Keeping Children Safe in Education”. Where additional governing bodies exist within the delivery space, you are obligated by law to follow their existing guidance. For example the Football Association.

Safeguarding concerns should be shared with the Head of Safeguarding at SCL Education and Training for record keeping and quality assurance purposes

Staff must complete initial or annual renewal Safeguarding and Prevent Training

A pre-contract checklist of the relevant Health and Safety, Safeguarding and Prevent policies and requirements will be issued by SCL to ensure that each site and member of staff with responsibility to deliver can demonstrate the relevant compliance.

SCL reserve the right to delay, withhold payment or terminate contracts with immediate effect, should the safety and or safeguarding or learners or staff be in anyway compromised

Staff DBS and evidence of qualifications must be provided to SCL. Any changes to circumstances which could potentially impact a staff DBS while working with children, must be declared immediately for review. Failure to supply this information is in breach of clause 32

Policies and Health and Safety checks must be reviewed annually and shared with SCL. These are to include, but are not exhaustive of the following policies:

  1. Safeguarding (to include clauses which relate to Modern Slavery and FGM)
  2. Prevent
  3. Equality and Diversity
  4. Safer Recruitment
  5. Social Media and Internet Safety
  6. Health and Safety

Health and Safety checks must be regular as per legal requirement and must include, but are not exhaustive of the following: 

  1. Site risk assessments- to include site hazards, potential hazards and use of equipment and machinery
  2. CoVID-19 Risk Assessment
  3. Employer and Public Liability Insurance
  4. PAT testing of electrical equipment
  5. Legionella Survey
  6. Asbestos Register
  7. Fire Risk and Evacuation Procedure
  8. Lockdown Procedure

It is the responsibility of each site leader to clearly evidence a planned induction has been delivered to staff and learners informing them the relevant on-site general and emergency procedures

Drivers licence details and mini-bus licence numbers must be shared as part of the initial SCL compliance tracking if the intention is to transport learners. A section in the Safeguarding Policy should clearly outline the guidance implemented around transporting learners should this be the intention at any point during programme hours and/or any scheduled or ad-hoc arranged fixture

Government Guidance must be regularly reviewed and understood in relation to CoVID-19. Any changes to this guidance, must be swiftly reflected in adapted practice and clearly communicated to all key-stakeholders

 

Registering Learners with Awarding Bodies

SCL will be responsible for registering the learners with the relevant awarding body.

 

Certification of Learners with Awarding Bodies

SCL will only certificate following IQA by SCL Quality Team.

Following IQA claims forms are completed and submitted to the Exams Officer for claiming

 SCL will not complete any learner in the ILR without direct evidence of achievement and certification from the awarding body:

  • Achievement reports
  • Copies of certificates

 

Quality Monitoring

The level of quality monitoring of the sub-contractor will be dependent on the risk level posed by the contract. New providers will be subject to a learner telephone audit, announced or unannounced visit, lesson observation and 100% paperwork audit. Providers with a history of high-quality provision with SCL will have an announced or unannounced visit, lesson observation and paperwork audit per year.

As part of the contract, a schedule of quality audits (QMV’S) is agreed with the sub-contractor. These are set once a term and may be in the form of auditing learner files, paperwork audits or visiting learners for their feedback on the programme.

A representative from the sub-contracting organisation is required to attend these quality visits. At least one of these audits will be an announced visit to the sub-contractor premises.

  • A paperwork audit may check the following:
  • Marked learner work/portfolios
  • Registers
  • ILP’s / Pro Monitor
  • Schemes of Work and lesson plans
  • Assessment tracking documents

If supporting information is held on an e-portfolio system, the audit will be conducted from the evidence held in the e-portfolio.

The sub-contractor will be provided with the result of the audit and all actions will be monitored for a timely resolution.

In addition to the announced visits, there may be at least one unannounced visit in the contract year, in addition to telephone contact with employers and learners, to assess the quality of the programme.

During the visits joint observations of teaching and learning may be conducted to standardise the process. Lesson observations of teachers and trainers must be carried out by all contracted partners and submitted to SCL. Any teacher / trainer who is graded 3/Requires Improvement or below must be mentored and re-observed by the sub-contractor with the new observation form submitted to SCL within 12 months from the Graded observation.

A representative from the sub-contractor organisation is required to attend meetings at SCL during which learner progress is discussed and action plans set for learners who may be falling behind with their programme of study. In cases where there are a few learners finishing their programme this meeting may be by telephone with documents e-mailed to SCL.

SCL must be informed of all planned EQA visits relating to the contracted provision and copies of EQA reports must be sent to SCL as soon as they are received.

 

Unfunded Learners

Any learners who are at risk of not completing their programme of study must have an action plan agreed with SCL to ensure achievement is possible for all learners.

Sub-contractor are contracted to achieve an agreed retention and achievement rate for each cohort of learners and, if this is not achieved, a financial penalty will be imposed

 

Withdrawn Learners

SCL must be notified within 1 month of a learner withdrawing from their programme of study. All withdrawals must be processed using the ProSolution change request accurately detailing evidence of the last date in learning, reason for withdrawal, destination data and all of the learner’s original paperwork including reviews, ILP on ProMonitor must be up to date. Late notified withdrawals could result in a financial penalty being imposed.

 

 Fees

SCL retains a management fee from Agency funding earned from the provision delivered by all subcontracted partner organisations, and this typically ranges from 30% to 45% and will always include the cost of the procurement process and the management of the contracts and may include the cost of resources provided, including awarding body charges. The percentage may be higher where there is co-teaching (but will be specific to the relevant sub-contract and delivery arrangements).

The exact mix and level of support for each Subcontractor will vary depending on the needs and level of support required for the individual Subcontractor, the experience of the Subcontractor, their track record, success rates and level of risk as determined by the due diligence process.

 The management fee to be retained will be determined based on several factors and costs, that may include:

  • Quality management systems
  • Support to be provided to a new subcontractor, which is expected to be significantly higher in the first 1-2 years
  • Registration and Certification with awarding bodies (where required)
  • Management Information Services and data control advice and support
  • Support with funding rules compliance
  • Audit of management systems and delivery
  • Announced and unannounced spot visits
  • Quality checks of documentation, to ensure evidence is capable of withstanding audit scrutiny
  • Teaching, Learning and Assessment observations and coaching
  • English and maths specialist delivering weekly lessons as required
  • Safeguarding of Young People and Vulnerable Adults procedure
  • Health and Safety compliance
  • CPD Opportunities and planned training and development
  • Guidance, procedure and process development
  • Provision of resources (where required)
  • Regular updates regarding funding and policy guidance
  • Administration of the Employer Additional Payment process
  • Geographical location of the subcontractor and the delivery locations

 

Payment Terms

SCL shall pay the Sub-contractor in accordance with the invoicing procedure set out in the contract following receipt of payments from the Education and Skills Funding Agency (ESFA).

SCL shall pay the Sub-contractor within 30 calendar days of receiving the invoice. SCL may at its discretion require the Sub-contractor to provide any appropriate supporting information it considers necessary before making payment.

The obligation to make payments to the Sub-contractor rests with SCL; the Education and Skills Funding Agency (ESFA) is not liable to make payments directly to the Sub-contractor.

If the Sub-contractor fails to send information to be put onto the SCL System in the prescribed manner or fails to submit the appropriate supporting information when necessary, SCL shall not be in breach of the Contract (and nor shall any interest be due) if there is any delay in making a payment, provided that SCL has not unnecessarily delayed payment of the relevant claim.

Details of the Sub-contractor bank account and address must be notified to SCL. SCL shall send notifications of payments to that address.

At any time during the Contract Period (including, for the avoidance of doubt, at any time before and/or after payment by SCL to the Sub-contractor) SCL and/or the Funding Agency shall be entitled to validate any claim for payment made by the Sub-contractor. At all times the Sub-contractor shall provide all necessary assistance as requested by SCL.

Sub-contractor must comply with all funding requirements. 

 

Recovery of Sums Due

Wherever under the Contract any sum of money is recoverable from or payable by the Sub-contractor (including any sum which the Sub-contractor is liable to pay to SCL in respect of any breach of the Contract), SCL may unilaterally deduct that sum from any sum then due, or which at any later time may become due to the Sub-contractor under the Contract or under any other agreement or contract with SCL.

Any overpayment by either Party, whether of the Fees or of VAT or otherwise, shall be a sum of money recoverable by the Party who made the overpayment from the Party in receipt of the overpayment.

The Sub-contractor shall make any payments due to SCL without any deduction whether by way of set-off, counterclaim, discount, abatement or otherwise unless the Sub-contractor has a valid court order requiring an amount equal to such deduction to be paid by SCL to the Sub-contractor.

All payments due shall be made within a reasonable time unless otherwise specified in the Contract, in cleared funds, to such bank or building society account as the recipient Party may from time to time direct 

 

Publication of Data

The following data will be published to record the actual level of funding paid and retained for each of the sub-contractor in each funding year. This data will be published within 30 days of the close of the funding year’s ILR.

Rationale for working with Sub contractors in general:

SCL is committed to extending and diversifying the range and accessibility of courses it delivers to widen participation, deliver to niche markets, engage in new and emerging markets and meet the regional and local economic development agenda. It also enables engagement with learners who may not ordinarily consider attending formal learning environments. In order to achieve this, SCL has taken the strategic decision to subcontract part of its provision to partner organisations who can demonstrate high quality delivery and excellent success rates.

The partners that SCL choose to subcontract with to help providers benefits for all SCL students and informs curriculum development across all study programmes that SCL delivers. Working with our subcontract partners allows SCL direct insight into how a professional sports clubs and coaching companys operates. These critical insights directly into the sports industry ensures that SCL can continually adapt its curriculum delivery to meet the needs of industry. This directly benefits all SCL students as they can have access to update industry knowledge and trends that directly enhance their employability skills with their chosen area of study.  

 

Communication

This policy is available to view on the SCL website: https://www.wearescl.co.uk/subcontractor-policy 

Potential sub-contractors are invited to look at this policy and the monitoring of sub-contractor policy before submitting their due diligence evidence. Once the sub-contractor has passed the due diligence the management fee and payment terms are agreed for the accepted cohort of learners and written into the contract.

 

Subcontracting Declarations

The SCL Finance Team will the Subcontracting Declaration form as required by the ESFA a minimum of twice a year or a determined by the ESFA.

 


BREAKDOWN OF MANAGEMENT FEE BY PARTNER:

 

Leeds United 

READ

Tranmere Rovers 

READ

Sports Gatweay 

READ

 

 

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