Pathway: funding and audit for assessors

1. Funding & Audit

2. How are Apprenticeships funded?
• Start payment
• On programme payment
• Diploma
• Technical certificate
• Functional skills
• Completion & Achievement

3. What evidence do we need to keep?
5 Elements of Funding and the Learner Journey
1. Eligibility
2. Start Evidence
3. On Programme Evidence
4. Withdrawals and Breaks in Learning
5. Completion and Achievement

4. Skills Funding Agency Audit
Why do they audit?
What do they audit?
What happens during an audit?
What are the implications of an audit?
What happens after audit?

5. What is extrapolation? How does it work?
Contract value = £1,000,000
50 files in audit, each worth £1,000. So, value of sample
is £50,000.
De minimus limit (error tolerance level) = 5% of value of
sample
(in this case = £2,500, or 2.5 learners)
If % value of errors is less than 5%, value of errors
clawed back and unqualified audit opinion
If % value of errors is more than 5%, then extrapolation
and/or 100% audit required plus qualified audit opinion.

6. Extrapolation calculation continued
So, if one learner was found to be ineligible, then
£1,000 at risk. Below 5%, so £1,000 clawed back
and unqualified audit opinion.
If 5 learners are ineligible, then £5,000 at risk. Error
rate now is 10%, so extrapolation means that the
funds clawed back are 10% of contract value, which
in this case is £100,000.
Plus, qualified audit opinion meaning much closer
and frequent scrutiny and a 100% audit required,
taking up valuable time and staff resource.

7. Learner Reviews
Who looks at progress reviews?
Why do we have them?
What do we need to record on them?
o Learner information
o Review previous targets
o Progression against all funded learning aims
• Diploma
• Technical Certificate
• Functional Skills
o Set SMART targets for the learner
o E&D, Health and Safety and Safeguarding

8. Audit Issues
Functional Skills Evidence vs Initial Assessment
Recognised Prior Learning
Length of Employment
Working Hours
Start Payment Evidence
Minimum length of stay – Early Leavers
Admin – Audit Function
What do they do and why this is so important