ESFA Rules on Subcontracting – What You Need to Know
The Education and Skills Funding Agency (ESFA) governs and regulates further education and training providers in England. One of the rules that providers must abide by is the ESFA rules on subcontracting. Subcontracting is when a main provider contracts out part of their provision to another provider, who then delivers it on their behalf.
Here are some important things to note about the ESFA rules on subcontracting:
1. Subcontracting must not exceed 20% of a provider`s total funding allocation
The ESFA sets a cap on how much a provider can subcontract out. Providers must ensure that subcontracting does not exceed 20% of their total funding allocation for the year. This means that providers must carefully monitor their subcontracting arrangements to ensure that they do not go over the limit.
2. Subcontractors must be approved by the ESFA
Providers must get approval from the ESFA before subcontracting out any provision. This means that providers must submit an application to the ESFA, detailing the subcontracting arrangements and the subcontractor`s capabilities. The ESFA will then assess whether the subcontractor is suitable to deliver the provision.
3. Providers must retain overall responsibility for the provision
Even though providers subcontract out part of their provision, they still retain overall responsibility for the provision. This means that providers must ensure that the subcontractor delivers the provision to the required standards and that they comply with the ESFA rules.
4. Providers must have a clear subcontracting policy
Providers must have a clear subcontracting policy that outlines their approach to subcontracting. This policy must include details of how subcontractors are selected, how they are managed and monitored, and how the provider ensures that they comply with the ESFA rules.
5. Providers must report subcontracting arrangements to the ESFA
Providers must report their subcontracting arrangements to the ESFA by completing a subcontracting declaration form. This form must be completed by all providers, even if they do not subcontract out any provision. The form must be submitted by 31 October each year.
In summary, the ESFA rules on subcontracting are in place to ensure that providers deliver high-quality provision and that public funds are used effectively. Providers must ensure that they abide by these rules, and that they have clear policies and procedures in place for subcontracting. By doing so, providers can ensure that they provide the best possible education and training to their learners.