We are introducing a requirement for some independent training providers (ITPs) to provide updated in year financial information.

Documents

Independent training provider (ITP) financial forecasts template

MS Excel Spreadsheet, 240KB

This file may not be suitable for users of assistive technology. Request an accessible format.

If you use assistive technology (such as a screen reader) and need aversion of this document in a more accessible format, please email [email protected].Please tell us what format you need. It will help us if you say what assistive technology you use.

Details

We are introducing a requirement for some independent training providers (ITPs) to provide updated in year financial information.

Cabinet office guidance note PPN04 which led to the establishment and launch of the provider relief scheme (PRS) version 2 on 25 June 2020, requires the Agency to gain assurance that providers have robust plans to stabilise their businesses once the PRS support has concluded. To that end and, as a result of the turbulent business climate facing the sector, the Agency is reviewing its position on the submission of financial information by independent training providers. Independent training providers are currently only required to submit financial information within 9 months following the conclusion of their financial year. As the economic impact of coronavirus (COVID-19) unfolds, it is clear that such information provides a historic and therefore potentially inaccurate picture of a provider’s financial resilience. As a result, we will therefore be contacting a proportion of our largest contract holders and successful applicants to the provider relief scheme 2 to request current and forecast financial information. We do not anticipate that the information requested will be anything more than the management information that most providers will already be using internally.

Not all ITPs are initially within scope. Those that are will be notified individually, in writing, by colleagues in the Further Education Directorate (FED). ITPs within scope must complete and return to the Agency, the financial forecast template and narrative below.

The financial forecast template must be:

  • accurate, complete, and consistent
  • uploaded and submitted as an Excel file

The financial template must be supported by a separate detailed narrative which explains assumptions, trends and variances. The narrative must:

  • explain the rationale behind the financial return
  • give explanations of any significant year on year variances and the reasons behind these
  • give explanations where you believe there will be, or are, variances against your ESFA contracts
  • uploaded and submitted as a word or PDF file

Submission arrangements will be included in the individual notification.

The closing date for submission is Wednesday 30 September 2020.

ESFA’s framework for assessing financial health, and calculation of financial health grades, is set out in our guidance: Financial health guidance for organisations contracting with or applying to ESFA.

Published 2 September 2020