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Supply Chain Fees and Charges Policy

Supply Chain Fees and Charges Policy

DUE FOR REVIEW: JULY 2018

Policy Aim

This document aims to provide consistency of approach and transparency to the College’s supply-chain fees and charges in relation to its subcontracting provision.

Definition of Terms

Standard Management Fee: This is the fee applied to subcontracted partnership contracts to account for standard costs incurred by the College through its management of these contracts.

Skills Funding Agency (SFA) – Government funded agency that supports provision for learners in further education who are aged 19 or over, and also including Apprentices who are aged 16-18 years old.

Education Funding Agency (EFA) – Government funded agency supporting provision for learners in further education who are between 16 – 19 years old.

1. Reasons for subcontracting

The College recognises the need to offer as diverse a range of provision as possible, in as flexible and cost effective a way as possible. By working in partnership with subcontractors the College is able to do the following:

  • Offer niche provision
  • Engage with the wider community, thus increasing wider participation by attracting learners who are unable, or unwilling, to attend provision offered on campus
  • Offer flexibility by delivering provision at times and venues convenient to learners and employers
  • Be responsive to learner and employer requirements
  • Ensure greater cost efficiency
  • Engage with new markets

2. Improving Quality

The College is committed to continual improvement in teaching and learning, both in its own direct provision and in its subcontracted provision. A range of approaches are employed in order to do this, such as observations, self-assessment reports and quality improvement plans. In terms of provision subcontracting specifically, the following processes are in place to help monitor quality of provision, and actively improve quality on an on-going basis:

  • A schedule of Quality Assurance Audits that are carried out throughout the year
  • Annual Reviews with target setting
  • Regular management meetings between the College and all its subcontractors (with a minimum of one management meeting per term)
  • Staff employed at the subcontractor are invited to in college CPD events.

3. Fees

Standard Management Fee – This fee is applied to all subcontracted contracts, and is the proportion of SFA/EFA funding retained by the College to cover standard costs incurred through its management of these contracts. These costs include:

  • Administration
  • Quality assurance
  • MIS functions relating to the submission of funding claims to the SFA and EFA
  • Provision of management meetings
  • Provision of a dedicated Account Manager
  • Provision of professional advice regarding SFA/EFA funding matters
  • Due Diligence support, guidance and checking.

STANDARD MANAGEMENT FEE APPLIED

The standard management fee is applied to all contracts as follows:
Classroom learning funded contracts – 10%
Workplace learning funded contracts – 15 – 20%

In 2016/17 The funding drawn down related to subcontracted provision was £405,427 of which £324,940 was paid to subcontractors.

For details relating to subcontracting for 2016/17 please click here

4. Payment Terms

Payment terms will be dependent upon the type and length of provision subcontracted:

  • Classroom Provision – for programmes of short duration (12 weeks or less) payment will be split between an on-programme payment (made after enrolment forms and attendance registers have been received for the entirety of the funded programme and the College is satisfied that learner eligibility and attendance satisfies EFA/SFA requirements) and an achievement payment (made upon receipt of proof of learner achievement that satisfies EFA/SFA requirements).

For programmes of longer duration payment will be made on a monthly basis, with a final reconciliation payment within 2 months of the programme planned end date providing the college has received proof of learner achievement.

  • Workplace Provision (excluding Apprenticeships) – payment will be made on a monthly basis commencing on submission of enrolment paperwork completed to SFA requirements and learner completion of the minimum qualifying period. A final reconciliation payment will be made with 2 months of the contract end date providing the college has received proof of learner achievement.
  • Apprenticeship Provision – payment will be made on a monthly basis commencing on submission of enrolment paperwork completed to SFA requirements and learner completion of the minimum qualifying period. A final reconciliation payment will be made with 2 months of the contract end date providing the college has received proof of learner achievement.

Upon receipt of satisfactory evidence, the College will pay associated invoices within 30 days of the invoice date. This payment will be made by BACS transfer. However, if any supporting evidence is queried by the College then payment will be withheld until these queries are resolved. Payment will then be made at the earliest possible opportunity.

5. Policy Review

The College will review this policy annually. This review will take place in June of each year, and any policy revisions will be completed and published prior to the commencement of the next academic year.

6. Communication

Any changes to the policy will be communicated to existing subcontractors at contract management meetings. Furthermore, the College will distribute a copy of this policy to all potential new subcontractors and discuss it with them as part of the College’s pre-contracting process.

7. Publication of Policy

An up-to-date copy of this policy will be posted on the College’s website. Paper copies of the policy will be made available on request.

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