Paul Mullins Chair The Education and Training Foundation 157, Buckingham Palace Road London SW1W 9SZ Minister for Skills and Equalities 1 Victoria Street London SW1H 0ET T +44 (0) 20 7215.5000 E enquiries@bis.gov.uk www.gov.uk/bis www.education.gov.uk 24 March 2015 Dear Paul 2015-16 Grant Offer Agreement I would like to congratulate you and your staff for the further progress you have made in the last year to establish the Foundation as a strong and efficient organisation at the heart of improving standards in further education and training. The programmes and services that you have developed in consultation with businesses and the FE sector are clearly beginning to make a significant contribution to supporting quality improvements and achieving better outcomes for learners and employers. I am particularly grateful for the support you are giving to Government to help achieve our policy ambitions. Any Government which is serious about economic growth and social justice will continue to support the success of our further education and training system, as the Coalition Government has done. Priorities may change within that, but an essential ingredient of national prosperity will be the rigour, relevance and reach of our colleges and training providers, and the success of their collaboration with employers. The Education and Training Foundation is the sectorowned, Government backed body which exists to secure and advance those goals. This letter and its Annexes sets out the expectations, terms and conditions of the government s grant offer for the next financial year. In total, BIS and DfE will provide a grant of up to 27,300,000 for the 2015-16 financial year (1 st April to 31 st March). This includes funding to manage the organisation and delivery of Skills Competitions and associated shows. The grant is to support you in building the Foundation s reputation as a highly successful, efficient and responsive organisation, leading the drive for quality improvement and higher standards across the FE system; and so that you can support the Government in meeting shared priorities with the sector to: raise the capacity and professional standards of teachers, with a particular focus on improving the teaching of maths and English, taking account of the outcome of Ofqual s functional skills review and any future developments resulting from your review of alternative qualifications to GCSEs; Page 1 of 14
raise the quality of vocational education and community learning, with a particular focus on supporting higher quality apprenticeships, traineeships and evaluating the lessons from the setting up of national colleges; raise standards in leadership, governance and management, including promoting and embedding the effective use of learning technology, working with Jisc; champion and build the capacity for evidence based education and innovation in the sector; and ensure effective and efficient delivery of joined up services to colleges and providers and avoid unnecessary duplication of funding for research and development activity. Annex 1 sets out the outcomes and impacts expected. It will be for you to decide how these will be integrated in to your business plan; the precise nature of how you deliver these activities and achieve the outcomes; and the amounts to be allocated to each priority. This reflects our intention to continue giving you maximum flexibility, in order to enable the Foundation to use its professional judgement to develop programmes and services that make the best contribution to improving standards. In using this grant, I expect the Foundation to continue developing strong engagement and communications processes with the FE system and business, so that the Foundation can show demonstrable positive impact through its programmes and services, and receive increasingly excellent feedback from end users. Progress will continue to be monitored and reviewed at our regular review meetings, and in meetings with officials. More detailed reviews of policy related activities - and agreement to new activities will, as agreed, be managed through the joint BIS/DfE FE Workforce Board. Annexes 2-4 set out the terms of agreement for the grant. It is important to remind you that funding for future years will be dependent on successful delivery and Government budget settlements. Whilst we have already promised 8,700,000 for 2016-17 to support work on skills shows and competitions, at this point, there are no guarantees for other areas of work. You should therefore continue to develop your independent commercialisation and income diversification plan. Please acknowledge receipt of this letter; confirm acceptance of its terms and condition by signing and dating in the relevant part of Annex 2; and return it to Bobbie McClelland at BIS by 31 st March 2015. I wish you continued success in the coming year. NICK BOLES Page 2 of 14
Annex 1 Education and Training Foundation 2015-16 Grant Funding - Priorities and Impact Indicators 1. Professional standards with a priority of maths & English Activity Promote and embed professional teaching standards across the FE workforce, including continued evaluation of how they are working. Develop, maintain and promote teacher development programmes that bring high calibre entrants, especially graduates, into FE; with a priority for supporting GCSE and functional skills reforms and increasing capacity to support learners with special educational needs and/or disabilities (SEND). Manage development, delivery and promotion of new specialist programmes (including level 5 qualifications and pathways) to enhance FE Initial Teacher Training and teaching of maths and English. Lead development and support for existing FE teachers (both English and maths subject specialists and teachers of other subjects), to increase their capacity to support GCSE reforms and improve the quality of teaching in maths and English to all learners including promotion of maths and English enhancement programmes; development of maths and English pipelines; and improving skills in identifying and supporting students with SEND. Support development of teachers and teaching of core maths at level 3. Support development of workforce tools to improve screening, initial assessment and diagnostics in maths and English, including consideration of the potential benefits of sharing GCSE breakdown marks with 16-19 providers. Help address findings of Ofsted s Study Programmes survey, by developing Study Programmes support to cover work experience, progression, initial teacher training and curriculum organisation Identify and disseminate effective practice, so that the workforce improves what they are already doing; especially in embedding effective practice in the use of technology in teaching and learning, in partnership with JISC. Ensure teacher training programmes and other programmes/communications ensure the FE workforce understand the implications for them from the new Prevent duties. Collect and use workforce data to inform the evaluation of progress being made against the Departmental FE Workforce Strategy; and influence what further action is needed. Develop, maintain and promote the Excellence Gateway and all related digital estate and content, in order to promote and communicate support, programmes and resources available to teachers, employers and others. Outcomes More graduates recruited to teach in FE, including more maths and English specialists. Significant increase in the percentage of those young people who did not achieve A*-C by age 16 gaining L2 maths and English by age 19 (was 16.3% in 2012/13). Improved Ofsted grades and success measures for colleges and providers which have benefitted from ETF programmes, on a comparable basis, and taking into account changes to the Ofsted inspection framework, policy and practice. Improved teaching capacity. Page 3 of 14
Measured and evidenced by some or all of the following: o Increasing number of graduates recruited through schemes supported by ETF. o Increasing number of maths and English teachers in post with relevant qualifications to teach up to GCSE. o Improving Ofsted inspection results, particularly number of providers getting good or above for maths and English. o Improving success measures for maths and English. o Increasing number of 16-19 year olds with maths and English GCSE. o Better employment outcomes for all students, especially disadvantaged and disengaged learners and those with SEND. o Increased learner and employer satisfaction with the quality of teaching and learning. o Increasing satisfaction with programmes and services of ETF. Impact More teachers with better knowledge, skills and qualifications, leading to better outcomes for learners and employers, 2. Vocational Education and Training and Community Learning with a priority on traineeships and apprenticeships Activity Develop, maintain and promote professional development and support programmes to: Improve the quality and capacity of the FE sector to deliver all elements of the traineeships programme, building on research and best practice from traineeships and related initiatives; and supporting both existing and new traineeship providers. Build capacity of the FE workforce involved in delivering apprenticeships, so that they deliver to the new apprenticeships standards; drawing on experience from relevant apprenticeship trailblazer sectors, phase 1 programmes, research and effective practice from the new standards. Accelerate the development and delivery of high quality higher apprenticeships, including lessons learnt from evaluation of establishing national colleges. Support leaders and managers in developing employer/provider partnerships, building on the concept of the two-way street, to increase employer engagement with education and training providers. Support occupational updating for vocational teachers, trainers and assessors; using a variety of innovative approaches. Develop further and embed the national Teach Too framework, in order to attract those from business with vocational skills to spend time supporting high quality and relevant vocational learning. Embed the characteristics and features of excellent vocational teaching and learning across vocational education and training, delivering on the ambition in the report by the Commission into Adult Vocational Teaching and Learning (CAVTL) including embedding maths, English and employability skills in VET; and equipping vocational teachers to effectively support learners with SEND. Support development and evaluation of new national colleges as leaders of vocational higher level provision and high quality governance (including evaluation of the start-up of new colleges, to identify and share experience; and support for individual colleges, to increase capacity and quality of higher vocational education). Page 4 of 14
Develop awareness of and strategies to address - mental health problems among learners. Working with Jisc, support the workforce in better use of learning technologies, which improve the quality and outcomes of teaching and learning, especially in maths and English. Working through Find a Future, expand the reach and exploit the potential of skills competitions and Shows; and extend the role of the expert practitioner in raising the quality of vocational education. Further develop the Foundation s strategic role in shaping debate and action in support of building a strong VET system, including through the annual VET Conference; and the development and influence of the high level employers, in order to promote the mutual benefits of employer involvement with the education and training sector. Outcomes An increase in the range and volume of vocational provision which demonstrates the characteristics advocated by CAVTL (clear line of sight to work; dual professionalism; access to industry standards; and clear escalators higher vocational learning). Overall improvement across the VET system in the number and range of learners progressing to higher level vocational learning and/or work. Improved volume, quality and impact of VET at levels 3-5. Growth of high quality traineeships throughout the sector. Measured and evidenced by some or all of the following: o Number of institutions reviewing their provision against CAVTL criteria for excellence; and able to demonstrate already or producing improvement plans. o Increased learner and employer satisfaction, involvement and investment in skills delivered by the FE sector, through their strong engagement in programmes supported by ETF, including traineeships. o An increase in achievements at VET levels 3-5. o Improved results against the new outcome based success measures. o Increase in providers getting good or better for VET provision following Ofsted inspection; and better feedback from Ofsted thematic surveys and reviews. o Increased learner and employer satisfaction with the quality of teaching and learning reported through FE Choices. o Increased employer provision of work experience to support the delivery of study programmes and traineeships. o Better employment and progression outcomes for traineeships and for disadvantaged and disengaged learners, including those with SEND. o A wider understanding of, and improved support for, wellbeing and mental health. Impact Better outcomes for practitioners learners and employers involved in study and other training programmes, traineeships, apprenticeships, prison and offender learning, and the voluntary, community and social enterprise sectors. Page 5 of 14
3. Leadership, management, and governance Activity Develop and deliver general and targeted governance, leadership and organisational development programmes to: Ensure senior leaders and governors have the capacity to establish an effective strategy to underpin their core curriculum and learner offer, and to maintain good quality, and financial planning and management, and greater awareness of the value of effective use of technology, including through a programme of national leaders for governance. Equip governors with the skills to hold senior leaders to account, and to identify warning signs where the institution has emerging quality or financial challenges. Support reviews and revision in order to realise the benefits of a flexible and targeted study programme offer to 16-19 year old students. Support effective embedding of new apprenticeship standards; and funding reforms. Support senior leaders and governors to increase capacity to manage GCSE reforms; and effectively deliver GCSE and other qualifications in English and maths to learners. Support peer review, which focuses on meeting the needs of learners and employers, and reflects the diverse nature of the sector (including the specialist needs of voluntary, community and social enterprise sector). Draw on research and effective practice to develop programmes and services to support improved teaching and learning in the justice sector. Ensure that board members of colleges and Independent Training Providers including the third sector are aware of their responsibility to set challenging targets for learner progress and progression. Support the development of leaders and of new governance and delivery models, to enable institutions to create a curriculum that is responsive to the needs of customers and takes advantages of best teaching practice (including use of technology and innovative tools, demonstrating accountability to their customers, and improving engagement with key local stakeholders including LEPs and local authorities). Take forward the recommendations from the FE Governance Policy Review (March 2015), including increased business engagement and involvement in the governance and leadership of colleges and providers, taking account of the BIS Guidance, the recent assessment by BIS of governance reform and the outcome of the consultation of the values based code for governors undertaken by the Governors Council. Support the sector and individual institutions as appropriate, to address issues identified by the FE Commissioner. Ensure governors and senior leaders understand their responsibilities in respect of new Prevent duties. Outcome Improved governance, leadership and management across the sector, as evidenced by some or all of the following: o Better Ofsted judgements and assessments of L&M following inspections and thematic reviews. o Number and % in each sector undertaking governance and leadership programmes. o Improvements in local accountability, including engagement with LEPs. o Increase in number of boards reviewing and being refreshed for appropriate skills. o Positive feedback to programmes and support delivered by ETF. Page 6 of 14
Impact Increased awareness and confidence of leaders to address strategic and curriculum challenges and manage their institutions effectively. 4. Research Activity Champion and build the capacity for evidence based education and innovation in the sector through: Practitioner research support programme - to add to the growing community of research engaged champions of the Foundation s research strategy and evidence based education and CPD; also to act as generators of positive news stories of the research strategy s impact. Collection and analysis of workforce data - implement plans to improve collection of data and its usefulness to the sector; identify new analytical and reporting approaches to support the sector s and The Foundation s priorities. Internal consultancy and advocacy - ensure new programmes support the research strategy and are based on evidence of effective models of CPD, improvement, transfer and scaling up. Thought leadership with partners at various levels including sponsorship, joint delivery, or participation in events with others to share research (for example LSRN, The Institute for Effective Education, NESTA; piloting the extension of NfER's Research Mark into our sector). Commissioned research - to inform a) the Foundation s own performance reporting and strategic and operational requirements and b) the sector s performance and improvement priorities and reputation enhancement. This may include: o Research and analysis to inform Commercial Development. o Consultation and feedback from stakeholders and customers (i.e. the Perceptions Survey, Contractors Survey, ETF Employee Survey). o Feasibility testing of a model to capture the local economic impact of HE delivered by FE. A Research Communications Programme giving practitioners and the sector, mediated access to useful research, opportunities to share research and a vehicle for promoting the research strategy and its impacts. This may include: o Research Bulletin identifying useful research and how to apply it in practice as well as providing a space for practitioners to publish their own research. o A suite of workforce analysis reports. o Annual Research Conference to promote research and introduce the sector to strategic issues around the research agenda. Initial Teacher Education data - collect, report on and make available to the sector data on the characteristics of those becoming qualified teachers in FE, and their destinations. Outcome Work and thinking is evidence based, avoids unnecessary duplication of funding for research and development activity, and research enhances the reputation of both the sector and the Foundation itself. Measured and evidenced by some or all of the following: o Engagement in research support programmes is representative of the whole sector by provider type and practitioner roles. o Recognition of Foundation s role in thought leadership in effective models of CPD. Page 7 of 14
o o o o o o o o Research and other evidence improves practice and learner outcomes. SIR data returns improve in quantity and quality and greater engagement of WBL/ACL from 2016. Use made of new SIR system by providers and stakeholder bodies; policy makers and sector itself have access to valuable and useful workforce data from the end of the 2015/16 academic year. Internal strategic and operational planning process explicitly evidence based (with clear audit trail). Perceptions and stakeholder surveys show awareness of ETF role in promoting and supporting research engagement and an evidence based culture. Positive feedback from profile raising and reputation enhancing events and well established partnerships with organisations. Constructive collaboration between HE, FE and other advocacy organisations around a shared agenda of evidence based education, improvement and CPD Publication of a comprehensive picture of who is training to teach in FE, and their destinations, as well as what courses are available across England. Impact Increased use of research and other evidence for improvement and for strategic and professional development in the education and training sector, for the benefit of learners. Evidence based practice and innovation is recognised as fundamental to the professional identity of those who work in the education and training sector. Learners themselves act as peer researchers, with their tutors/trainers, in improving both professional practices and learner outcomes. Workforce development policy and support programmes are informed by accurate workforce and initial teacher education data. The sector and its practitioners have validity as members of the educational research community alongside HE colleagues. Page 8 of 14
Annex 2 Acceptance of Terms and Conditions of BIS Grant Funding to the Education and Training Foundation for the Financial Year 2015-16 Signed by person authorised to sign on behalf of the Secretary of State Date XX March 2015 Signature Name (please print) Position in BIS Signed by a person authorised to sign on behalf of the grant recipient Date Signature Name (please print) Position in Education and Training Foundation Principal contacts Department Grant Recipients Contact name Position Mark Kaczmarek Standards and Qualifications Unit Telephone no. 0114 207 5144 Email Mark.Kaczmarek @bis.gsi.gov.uk Page 9 of 14
Conditions of Offer Annex 3 1. The grant is payable under section 14 of the Education Act 2002. The offer is conditional on BIS receiving within two months of the date of this letter the grant offer acceptance duly signed by the Foundation s authorised signatory, and where legally required, state aid clearance from the European Commission. If this condition is not met, the grant offer will lapse automatically. The grant may be renewed, extended or increased at the discretion of BIS. 2. Acceptance of this offer constitutes agreement in full to the terms and conditions set out in this grant offer Letter. This letter constitutes the entire agreement and understanding between BIS and the Foundation, with respect to all matters which are referred to. It supersedes any previous arrangement(s) between the Foundation and BIS in relation to the matters referred to in this letter. Purpose and of Grant and Accountability 3. The Foundation shall ensure that the grant is used only in accordance with the terms of this funding agreement. The grant will only be paid in respect of approved expenditure incurred by the Foundation for the purposes of supporting professionalism and quality improvement in the further education and training system. The expected inputs and outcomes are as described in Annex 1. 4. The Foundation shall take such steps as the Secretary of State may require from time to time, to satisfy himself that the systems of financial and staffing control and the management and organisation of the Foundation are such as to enable it to fulfil its objectives under this funding agreement. 5. The Foundation is expected to comply with the recommendations of the Public Accounts Committee or other Parliamentary authorities as accepted by Her Majesty's Government, and with administrative and financial practices applicable to the expenditure of public funds, as notified to it by the Secretary of State. Payment of Grant 6. Payments will be made in instalments. The Foundation shall provide BIS with a schedule setting out preferred payment dates. Any variation to payment dates must be agreed in advance with BIS. On each occasion the Foundation will present details of expenditure to date and forecasts for the following period, presented in the format given at Annex 4. Claims for grant payment should be sent to Lindsey Evans, Department for Business, Innovation and Skills, Level 2, 2 St. Paul s Place, 125 Norfolk St. Sheffield, S1 2FJ no later than 10 days before the scheduled payment dates to avoid possible delay in payment. The maximum value of this grant is 27.3m. Forecasts of expenditure in the forthcoming financial year 7. It is the clear intent that the Foundation will become an independent selffinancing sector body which is not reliant on Government funding. 8. Except by prior agreement, and for a specific purpose, the level of BIS funds received and held at the end of the 2015-16 financial year shall not be carried over into the 2016-17 financial year. Page 10 of 14
9. Details of income other than the Secretary of State's grant shall be maintained separately and shall be taken fully into account in preparing end of year accounts. The level of balances from the respective sources of income held by the Foundation shall be specified at the end of the financial year. The Foundation shall provide the Secretary of State with revised forecasts of income and expenditure and with outturn figures in such form, and at such times, as he may require. Financial Management and Audit 10. The Foundation shall maintain a sound system of internal financial management controls, and shall require its external auditors, as part of their audit, to report on the adequacy or otherwise of that system. The Foundation will also need to take adequate measures to safeguard itself against fraud and theft. All cases of fraud or theft, whether proven or suspected must be notified to the Secretary of State. 11. The Chief Executive of the Foundation is responsible for ensuring that the systems governing the grant are subject to independent scrutiny, in order to obtain an assurance on the adequacy of the system of internal control and safeguards against fraud. These arrangements may be reviewed by the Department, who will take account of the objectives, standards and practices set out in HM Treasury's guidance. 12. As soon as possible after the end of each financial year, and not later than 30 September, the Foundation shall provide the Secretary of State with an audited income and expenditure account and a balance sheet and supporting notes in respect of its activities during that year. Income and expenditure not covered by funds provided by the Secretary of State shall be clearly identified. The Foundation shall comply with any directions given by the Secretary of State as to the information to be contained in the accounts, the manner in which the information is to be presented, and the methods and principles according to which the accounts are to be prepared. 13. The auditor's report, in addition to giving an opinion on the accounts as they stand, should say whether, in the auditor's opinion, grant income has been properly applied in accordance with this Funding Agreement. The books, other documents and records relating to the Foundation accounts shall be open to inspection by the Secretary of State and by the Comptroller and Auditor General. The Comptroller and Auditor General may, pursuant to Section 6 of the National Audit Act 1983, carry out examinations into the economy, efficiency and effectiveness with which the Foundation has used its resources in discharging its grant-aided activities. Information and reporting arrangements 14. The Foundation shall provide the Secretary of State with such information about the organisation, operation and financial control of its affairs as he may from time to time request. 15. Specifically, any management letter issued to the Foundation by its auditors and any reply to it by the Foundation shall be provided to the Secretary of State. Page 11 of 14
16. The Foundation shall provide quarterly written reports and management information to the Secretary of State, focusing specifically on the progress with, and impact of, programmes and services developed and delivered by this grant; and on communications, engagement and feedback from the sector. 17. The Chair and Chief Executive of the Foundation, together with the Chief Executives of the Association of Colleges and the Association of Employment and Learning Providers, shall attend two meetings a year with the Department, to discuss the Foundation s impact and engagement within the sector. Procurement 18. The Foundation shall have regard to HM Treasury guidelines in the procurement of goods and services for which it receives grant, so as to secure best value for money. In particular, contracts awarded by the Foundation shall be placed on a competitive basis, unless there are good reasons to the contrary. Tendering procedures shall be in accordance with the EU Procurement Directive and UK Procurement Regulations, where applicable, and any additional guidance issued by BIS. The Foundation shall not make any advance payment from the grant, or any interim payments, or enter into deferred payment arrangements, without the prior written consent of the Secretary of State. Borrowing 19. In respect of any grant-funded assets, the Foundation shall not, without the prior written consent of the Secretary of State, borrow or lend money from any source, charge any asset or security, nor give any guarantees, indemnities or letters of comfort, without the approval of the Secretary of State, other than in the normal course of business as defined in Managing Public Money Annex A 5.5 Liabilities, box A.5.5A. Losses, gifts and special payments 20. In relation to the grant, the Foundation shall not write-off any debts or liabilities owed to it, nor offer to make any special payments or give any gifts without the prior written consent of the Secretary of State. A record of gifts both given and received shall be kept. Disposal of assets and change of use 21. Where the market value exceeds 2,500, the Foundation shall consult the Secretary of State if it proposes to dispose of, or change the use of, a tangible asset (e.g. land, building and equipment) or intangible asset (e.g. copyright) which has been financed wholly or developed with grant from the Secretary of State, or which has been substantially improved by the use of such funds. Fees and charges 22. The Foundation shall consult the Secretary of State about any charge it proposes to make in respect of the provision for which it receives or may receive grant, and any such charge shall be in accordance with Treasury guidelines on fees and charges. Page 12 of 14
VAT 23. Unrecoverable input VAT costs are an eligible cost against this grant. Insurance 24. The Foundation shall take out whatever insurance it sees fit or is advised. In the event of the Foundation receiving more than 50% of its total income from public funds, the Secretary of State reserves the right to direct the Foundation to cease to hold such insurance as he may specify. Interpretation 25. Questions arising on the interpretation of the arrangements in this Funding Agreement shall be resolved by the Secretary of State after consultation with the Foundation. Recovery of grant 26. If the Foundation does not comply with any of the conditions and requirements referred to in this agreement, the Secretary of State may by notice in writing require the Foundation to repay all or any part of grant paid to it under this Funding Agreement. Revision 27. After consultation with the Foundation, the Secretary of State may from time to time revise, revoke or add to any of the terms of this Funding Agreement, subject to HM Treasury agreement. The Foundation may itself make representations to the Secretary of State for revision, revocation or addition. This Funding Agreement shall be reviewed on 31 March 2015. Termination 28. This Funding Agreement may be terminated: By either the Secretary of State or the Foundation giving not less than 3 months notice in writing to the other party; or With immediate effect, by the Secretary of State on an Event of Insolvency. Page 13 of 14
Annex 4 Grant Claim Form This claim form should be completed by an authorised officer of the Education and Training Foundation and returned to Lindsey Evans, Department for Business, Innovation and Skills, Level 2, 2 St. Paul s Place, 125 Norfolk St. Sheffield, S1 2FJ no later than the 5th day of the month in which grant is being claimed and supported by invoices where available. a) Forecast expenditure for current period (as on previous grant form). b) Actual expenditure in last period (see attached breakdown and attached invoices). c) Unspent BIS grant at end of last period. d) Forecast expenditure for this period (see attached breakdown) Amount of BIS grant claimed for current period Claim for [insert period] [a b] [d c] TOTAL CLAIMED to Date 2014-15 I certify that: the above claim is made in accordance with the terms and conditions of the Grant Funding Agreement for this scheme; the grant received and spent has been used wholly for the purposes for which it was given; the amount of grant claimed on this form represents expenditure incurred or to be incurred for the purposes for which grant is given. Signed by a person authorised to sign on behalf of the grant recipient Date Signature Name (please print) Position in organisation Page 14 of 14